Table of Contents

 

 

 

FORM 10-Q

SECURITIES AND EXCHANGE COMMISSION

Washington D.C.  20549

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended July 31, 2015 or

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

Commission File Number 814-00201

 

MVC CAPITAL, INC.

(Exact name of the registrant as specified in its charter)

 

DELAWARE
(State or other jurisdiction of
incorporation or organization)

 

94-3346760
(I.R.S. Employer
Identification No.)

 

 

 

287 Bowman Avenue
2nd Floor
Purchase, New York

(Address of principal
executive offices)

 

10577
(Zip Code)

 

 

Registrant’s telephone number, including area code:  (914) 701-0310

 

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 definition of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer o

 

Accelerated filer x

 

 

 

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

 

There were 22,702,821 shares of the registrant’s common stock, $.01 par value, outstanding as of January 29, 2016.

 

 

 



Table of Contents

 

MVC Capital, Inc.

(A Delaware Corporation)

Index

 

 

 

 

Page

Part I. Consolidated Financial Information

 

 

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

Consolidated Balance Sheets

 

 

 

-     July 31, 2015 (Unaudited) and October 31, 2014

3

 

 

Consolidated Statements of Operations

 

 

 

-     For the Nine Month Period November 1, 2014 to July 31, 2015 (Unaudited) and

 

 

 

-     For the Nine Month Period November 1, 2013 to July 31, 2014 (Unaudited)

4

 

 

Consolidated Statements of Operations

 

 

 

-     For the Quarter May 1, 2015 to July 31, 2015 (Unaudited) and

 

 

 

-     For the Quarter May 1, 2014 to July 31, 2014 (Unaudited)

5

 

 

Consolidated Statements of Cash Flows

 

 

 

-     For the Nine Month Period November 1, 2014 to July 31, 2015 (Unaudited) and

 

 

 

-     For the Nine Month Period November 1, 2013 to July 31, 2014 (Unaudited)

6

 

 

Consolidated Statements of Changes in Net Assets

 

 

 

-     For the Nine Month Period November 1, 2014 to July 31, 2015 (Unaudited),

 

 

 

-     For the Nine Month Period November 1, 2013 to July 31, 2014 (Unaudited) and

 

 

 

-     For the Year ended October 31, 2014

7

 

 

Consolidated Selected Per Share Data and Ratios

 

 

 

-     For the Nine Month Period November 1, 2014 to July 31, 2015 (Unaudited),

 

 

 

-     For the Nine Month Period November 1, 2013 to July 31, 2014 (Unaudited) and

 

 

 

-     For the Year ended October 31, 2014

8

 

 

Consolidated Schedules of Investments

 

 

 

-     July 31, 2015 (Unaudited)

 

 

 

-     October 31, 2014

11

 

 

Notes to Consolidated Financial Statements

13

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

44

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

77

 

Item 4.

Controls and Procedures

91

 

 

 

 

Part II. Other Information

92

 

 

 

 

 

Item 1.

Legal Proceedings

92

 

Item 1A.

Risk Factors

92

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

92

 

Item 3.

Defaults Upon Senior Securities

92

 

Item 4.

Mine Safety Disclosures

92

 

Item 5.

Other Information

92

 

Item 6.

Exhibits

93

 

 

 

 

SIGNATURE

94

 

 

Exhibits

 

 



Table of Contents

 

Part I. Consolidated Financial Information

 

Item 1. Consolidated Financial Statements

 

CONSOLIDATED FINANCIAL STATEMENTS

 

MVC Capital, Inc.

Consolidated Balance Sheets

 

 

 

July 31,

 

October 31,

 

 

 

2015

 

2014

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash

 

$

9,448,940

 

$

8,781,375

 

Restricted cash equivalents (cost $5,493,000 and $6,265,500)

 

5,493,000

 

6,265,500

 

Cash equivalents (cost $12,644,045 and $8,391,089)

 

12,644,045

 

8,391,089

 

Investments at fair value

 

 

 

 

 

U.S. Treasury obligations (cost $0 and $99,999,629)

 

 

99,897,404

 

Non-control/Non-affiliated investments (cost $164,519,990 and $150,682,873)

 

126,518,260

 

126,303,048

 

Affiliate investments (cost $121,882,255 and $115,021,554)

 

172,524,022

 

173,682,927

 

Control investments (cost $163,854,388 and $174,266,037)

 

101,313,674

 

147,644,189

 

Total investments at fair value (cost $450,256,633 and $539,970,093)

 

400,355,956

 

547,527,568

 

Receivable on sale of U.S. Treasury obligations

 

100,314,028

 

 

Dividends and interest receivables, net of reserves

 

3,558,565

 

1,188,398

 

Deferred financing fees

 

2,665,380

 

2,972,864

 

Fee and other receivables

 

1,348,570

 

1,939,827

 

Prepaid expenses

 

629,921

 

646,801

 

Escrow receivables, net of reserves

 

292,744

 

 

 

 

 

 

 

 

Total assets

 

$

536,751,149

 

$

577,713,422

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Senior notes

 

$

114,408,750

 

$

114,408,750

 

Revolving credit facility

 

100,000,000

 

100,000,000

 

Bridge Loan

 

12,790,000

 

 

Provision for incentive compensation (Note 11)

 

5,747,668

 

14,733,887

 

Management fee payable

 

1,431,849

 

1,474,223

 

Professional fees payable

 

1,332,623

 

1,309,085

 

Accrued expenses and liabilities

 

489,065

 

456,148

 

Interest payable

 

385,386

 

374,875

 

Management fee payable - Asset Management

 

296,812

 

296,812

 

Portfolio fees payable - Asset Management

 

252,001

 

436,791

 

Liability for share exchange

 

226,994

 

221,424

 

Consulting fees payable

 

201,821

 

97,250

 

Taxes payable

 

713

 

1,219

 

 

 

 

 

 

 

Total liabilities

 

237,563,682

 

233,810,464

 

 

 

 

 

 

 

Commitments and Contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Common stock, $0.01 par value; 150,000,000 shares authorized; 28,304,448 shares issued and 22,702,821 and 22,702,821 shares outstanding, respectively

 

283,044

 

283,044

 

Additional paid-in-capital

 

421,032,155

 

421,037,726

 

Accumulated earnings

 

92,828,448

 

83,996,734

 

Dividends paid to stockholders

 

(125,948,021

)

(116,753,378

)

Accumulated net realized gain

 

15,828,472

 

2,697,840

 

Net unrealized appreciation / (depreciation)

 

(49,540,425

)

7,937,198

 

Treasury stock, at cost, 5,601,627 and 5,601,627 shares held, respectively

 

(55,296,206

)

(55,296,206

)

 

 

 

 

 

 

Total shareholders’ equity

 

299,187,467

 

343,902,958

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

536,751,149

 

$

577,713,422

 

 

 

 

 

 

 

Net asset value per share

 

$

13.18

 

$

15.15

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

3



Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the Nine Month Period

 

For the Nine Month Period

 

 

 

November 1, 2014 to

 

November 1, 2013 to

 

 

 

July 31, 2015

 

July 31, 2014

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

2,876

 

$

69,767

 

Affiliate investments

 

1,002,872

 

808,463

 

Total dividend income

 

1,005,748

 

878,230

 

 

 

 

 

 

 

Payment-in-kind dividend income

 

 

 

 

 

Affiliate investments

 

 

216,928

 

Total payment-in-kind dividend income

 

 

216,928

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

9,256,257

 

4,755,577

 

Affiliate investments

 

973,962

 

2,493,429

 

Control investments

 

253,556

 

236,111

 

Total interest income

 

10,483,775

 

7,485,117

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

3,237,977

 

2,461,572

 

Affiliate investments

 

93,837

 

582,191

 

Control investments

 

116,537

 

168,559

 

Total payment-in-kind interest income

 

3,448,351

 

3,212,322

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

357,500

 

301,495

 

Affiliate investments

 

542,666

 

700,835

 

Control investments

 

929,492

 

242,250

 

Total fee income

 

1,829,658

 

1,244,580

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

772,925

 

799,563

 

Management fees

 

112,301

 

693,033

 

Total fee income - Asset Management

 

885,226

 

1,492,596

 

 

 

 

 

 

 

Other income

 

 

962,252

 

 

 

 

 

 

 

Total operating income

 

17,652,758

 

15,492,025

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs

 

7,697,985

 

7,087,004

 

Management fee

 

5,944,693

 

6,560,564

 

Legal fees

 

1,021,000

 

616,000

 

Audit & tax preparation fees

 

612,000

 

478,200

 

Other expenses

 

606,251

 

264,535

 

Portfolio fees - Asset Management 1

 

579,694

 

599,672

 

Consulting fees

 

423,153

 

398,653

 

Directors’ fees

 

315,000

 

302,625

 

Insurance

 

257,760

 

260,100

 

Administration

 

181,219

 

198,121

 

Public relations fees

 

138,000

 

153,000

 

Management fee - Asset Management 1

 

75,311

 

479,522

 

Printing and postage

 

66,380

 

60,216

 

Net Incentive compensation (Note 11)

 

(8,986,219

)

(2,411,187

)

 

 

 

 

 

 

Total operating expenses

 

8,932,227

 

15,047,025

 

 

 

 

 

 

 

Less: Voluntary Expense Waiver by Adviser 2

 

(112,500

)

(112,500

)

 

 

 

 

 

 

Total waivers

 

(112,500

)

(112,500

)

 

 

 

 

 

 

Net operating gain before taxes

 

8,833,031

 

557,500

 

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

1,317

 

1,316

 

 

 

 

 

 

 

Total tax expense

 

1,317

 

1,316

 

 

 

 

 

 

 

Net operating gain

 

8,831,714

 

556,184

 

 

 

 

 

 

 

Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments and foreign currency

 

 

 

 

 

Short-term investments

 

302,246

 

(131,418

)

Non-control/Non-affiliated investments

 

(2,073,792

)

308,196

 

Affiliate investments

 

 

2,979,685

 

Control investments

 

15,024,346

 

 

Foreign currency

 

(122,168

)

 

 

 

 

 

 

 

Total net realized gain on investments and foreign currency

 

13,130,632

 

3,156,463

 

 

 

 

 

 

 

Net unrealized depreciation on investments

 

(57,477,623

)

(12,940,269

)

 

 

 

 

 

 

Net realized and unrealized loss on investments and foreign currency

 

(44,346,991

)

(9,783,806

)

 

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(35,515,277

)

$

(9,227,622

)

 

 

 

 

 

 

Net decrease in net assets per share resulting from operations

 

$

(1.56

)

$

(0.42

)

 

 

 

 

 

 

Dividends declared per share

 

$

0.405

 

$

0.405

 

 

 

 

 

 

 

Weighted average number of shares outstanding3

 

22,702,821

 

22,611,513

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 


1 These items are related to the management of the MVC Private Equity Fund, L.P. (“PE Fund”).  Please see Note 10 “Management” for more information.

 

2 Reflects the six month portion of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2015 and 2014 fiscal years, that the Company would otherwise be obligated to reimburse TTG Advisers under the Advisory Agreement (the “Voluntary Waiver”).  Please see Note 10 “Management” for more information.

 

3Please see Note 13 “Dividends and Distributions to Shareholders and Share Repurchase Program” for more information.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

4



Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the Quarter

 

For the Quarter

 

 

 

May 1, 2015 to

 

May 1, 2014 to

 

 

 

July 31, 2015

 

July 31, 2014

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

2,431

 

$

187

 

Affiliate investments

 

1,002,872

 

736,873

 

Total dividend income

 

1,005,303

 

737,060

 

 

 

 

 

 

 

Payment-in-kind dividend income

 

 

 

 

 

Affiliate investments

 

 

73,746

 

Total payment-in-kind dividend income

 

 

73,746

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

3,116,473

 

2,062,925

 

Affiliate investments

 

329,014

 

86,587

 

Control investments

 

82,142

 

44,313

 

Total interest income

 

3,527,629

 

2,193,825

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

1,258,360

 

827,099

 

Affiliate investments

 

31,941

 

83,534

 

Control investments

 

39,272

 

91,295

 

Total payment-in-kind interest income

 

1,329,573

 

1,001,928

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

357,500

 

504

 

Affiliate investments

 

180,000

 

240,834

 

Control investments

 

767,991

 

80,751

 

Total fee income

 

1,305,491

 

322,089

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

251,825

 

203,736

 

Management fees

 

103,617

 

75,548

 

Total fee income - Asset Management

 

355,442

 

279,284

 

 

 

 

 

 

 

Other income

 

 

408,483

 

 

 

 

 

 

 

Total operating income

 

7,523,438

 

5,016,415

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs

 

2,627,155

 

2,426,105

 

Management fee

 

1,898,946

 

2,144,031

 

Audit & tax preparation fees

 

274,000

 

154,100

 

Legal fees

 

204,000

 

326,000

 

Consulting fees

 

196,251

 

139,251

 

Portfolio fees - Asset Management 1

 

188,869

 

152,802

 

Other expenses

 

142,352

 

160,738

 

Directors’ fees

 

105,000

 

96,375

 

Insurance

 

85,920

 

86,700

 

Management fee - Asset Management 1

 

77,713

 

16,408

 

Administration

 

60,346

 

71,998

 

Public relations fees

 

46,000

 

51,000

 

Printing and postage

 

21,469

 

10,327

 

Net Incentive compensation (Note 11)

 

(3,404,419

)

567,768

 

 

 

 

 

 

 

Total operating expenses

 

2,523,602

 

6,403,603

 

 

 

 

 

 

 

Less: Voluntary Expense Waiver by Adviser 2

 

(37,500

)

(37,500

)

 

 

 

 

 

 

Total waivers

 

(37,500

)

(37,500

)

 

 

 

 

 

 

Net operating gain (loss) before taxes

 

5,037,336

 

(1,349,688

)

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

439

 

439

 

 

 

 

 

 

 

Total tax expense

 

439

 

439

 

 

 

 

 

 

 

Net operating gain (loss)

 

5,036,897

 

(1,350,127

)

 

 

 

 

 

 

Net Realized and Unrealized Gain (Loss) on Investments and Foreign Currency:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments and foreign currency

 

 

 

 

 

Short-term investments

 

257,813

 

(307,933

)

Non-control/Non-affiliated investments

 

91,586

 

 

Affiliate investments

 

 

2,979,685

 

Control investments

 

15,024,346

 

 

Foreign currency

 

(122,168

)

 

 

 

 

 

 

 

Total net realized gain on investments and foreign currency

 

15,251,577

 

2,671,752

 

 

 

 

 

 

 

Net unrealized (depreciation) appreciation on investments

 

(34,247,632

)

416,567

 

 

 

 

 

 

 

Net realized and unrealized (loss) gain on investments and foreign currency

 

(18,996,055

)

3,088,319

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(13,959,158

)

$

1,738,192

 

 

 

 

 

 

 

Net (decrease) increase in net assets per share resulting from operations

 

$

(0.61

)

$

0.07

 

 

 

 

 

 

 

Dividends declared per share

 

$

0.135

 

$

0.135

 

 

 

 

 

 

 

Weighted average number of shares outstanding3

 

22,702,821

 

22,699,020

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 


1 These items are related to the management of the MVC Private Equity Fund, L.P. (“PE Fund”).  Please see Note 10 “Management” for more information.

 

2 Reflects the six month portion of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2015 and 2014 fiscal years, that the Company would otherwise be obligated to reimburse TTG Advisers under the Advisory Agreement (the “Voluntary Waiver”).  Please see Note 10 “Management” for more information.

 

3Please see Note 13 “Dividends and Distributions to Shareholders and Share Repurchase Program” for more information.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

5



Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

For the Nine Month Period

 

For the Nine Month Period

 

 

 

November 1, 2014

 

November 1, 2013

 

 

 

July 31, 2015

 

July 31, 2014

 

Cash flows from Operating Activities:

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(35,515,277

)

$

(9,227,622

)

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

 

 

Net realized gain

 

(13,130,632

)

(3,156,463

)

Net change in unrealized depreciation

 

57,477,623

 

12,940,269

 

Amortization of discounts and fees

 

(316,277

)

(957,541

)

Increase in accrued payment-in-kind dividends and interest

 

(1,464,781

)

(3,221,596

)

Amortization of deferred financing fees

 

821,598

 

428,755

 

Allocation of flow through income

 

 

(485,973

)

Changes in operating assets and liabilities:

 

 

 

 

 

Restricted cash

 

772,500

 

97,500

 

Dividends, interest and fees receivable

 

(2,370,167

)

2,242,470

 

Fee and other receivables

 

591,257

 

279,490

 

Short-term investments receivables

 

(100,314,028

)

(99,698,193

)

Escrow receivables, net of reserves

 

(292,744

)

300,000

 

Prepaid expenses

 

16,880

 

135,816

 

Prepaid taxes

 

 

336

 

Incentive compensation (Note 11)

 

(8,986,219

)

(2,411,187

)

Other liabilities

 

(56,134

)

(304,402

)

Purchases of equity investments

 

(1,841,700

)

(20,681,192

)

Purchases of debt instruments

 

(59,047,099

)

(40,927,324

)

Purchases of short-term investments

 

(294,241,984

)

(299,323,968

)

Proceeds from equity investments (1)

 

25,943,104

 

10,519,092

 

Proceeds from debt instruments

 

39,253,936

 

23,063,595

 

Sales/maturities of short-term investments

 

394,544,993

 

349,133,991

 

 

 

 

 

 

 

Net cash provided by operating activities

 

1,844,849

 

(81,254,147

)

 

 

 

 

 

 

Cash flows from Financing Activities:

 

 

 

 

 

Borrowings from revolving credit facility

 

295,000,000

 

250,000,000

 

Repayments from revolving credit facility

 

(295,000,000

)

(200,000,000

)

Borrowings from bridge loan

 

28,672,481

 

 

Repayments from bridge loan

 

(15,882,481

)

 

Offering expenses

 

 

(139,000

)

Repurchase of common stock

 

 

(4,114,967

)

Share exchange

 

(5,571

)

(219,567

)

Financing fees paid

 

(514,114

)

(250,278

)

Distributions paid to shareholders

 

(9,194,643

)

(9,151,018

)

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

3,075,672

 

36,125,170

 

 

 

 

 

 

 

Net change in cash and cash equivalents for the period

 

4,920,521

 

(45,128,977

)

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

17,172,464

 

$

74,234,560

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

22,092,985

 

$

29,105,583

 

 


(1) For the nine month period ended July 31, 2014, proceeds from equity investments includes $491,075, in escrow receivables, net of reserves.

 

During the nine month period ended July 31, 2015 and 2014 MVC Capital, Inc. paid $6,792,546 and $6,588,212 in interest expense, respectively.

 

During the nine month period ended July 31, 2015 and 2014 MVC Capital, Inc. paid $1,823 and $300 in income taxes, respectively.

 

Non-cash activity:

 

During the nine month period ended July 31, 2015 and 2014, MVC Capital, Inc. recorded payment in-kind dividend and interest of $1,464,781 and $3,221,596, respectively. This amount was added to the principal balance of the investments and recorded as dividend/interest income.

 

During the nine month period ended July 31, 2014, MVC Capital, Inc. was allocated $962,053, in flow-through income from its equity investment in Octagon Credit Investors, LLC.  Of these amounts, $476,080, was received in cash and the balance of $485,973, was undistributed and therefore increased the cost of the investment.  The fair value was then increased by $101,099, by the Company’s Valuation Committee.

 

On November 19, 2013, MVC Capital, Inc. converted the MVC Automotive Group B.V. bridge loan of approximately $1.6 million to addional common equity interest.

 

On May 1, 2014, the Company converted the JSC Tekers $12.0 million secured loan to preferred equity.  The cost and fair value assigned to the preferred equity was approximately $11.8 million, which was based on the fair value of the real estate using the CZK/USD exchange rate on May 1, 2014.  As a result of the loan conversion, the Company realized a loss of approximately $190,000.

 

On May 14, 2014, the Company signed a share exchange agreement with Equus, another publicly traded business development company, as part of a plan of reorganization adopted by the Equus Board of Directors. Pursuant to the share exchange agreement, the Company has received 2,112,000 common shares, with a fair value of approximately $4 million, of Equus in exchange for 395,839 common shares of the Company.

 

On June 30, 2014, the Company converted the SGDA $6.5 million term loan and accrued interest of approximately $1.9 million to additional common equity interest in SGDA Europe.

 

On April 20, 2015, Biovation Acquisition Corp., a newly formed entity by the Company, credit purchased the assets of Biovation Holdings, Inc. in exchange for the majority of the economic ownership.  The Company received 90 shares of Class B non-voting common stock of Biovation Acquisition Corp.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

6



Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Changes in Net Assets

 

 

 

For the Nine Month Period

 

For the Nine Month Period

 

 

 

 

 

November 1, 2014 to

 

November 1, 2013 to

 

For the Year Ended

 

 

 

July 31, 2015

 

July 31, 2014

 

October 31, 2014

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

Operations:

 

 

 

 

 

 

 

Net operating gain

 

$

8,831,714

 

$

556,184

 

$

1,579,417

 

Net realized gain on investments

 

13,130,632

 

3,156,463

 

16,519,778

 

Net change in unrealized depreciation on investments

 

(57,477,623

)

(12,940,269

)

(37,941,262

)

 

 

 

 

 

 

 

 

Net decrease in net assets from operations

 

(35,515,277

)

(9,227,622

)

(19,842,067

)

 

 

 

 

 

 

 

 

Shareholder Distributions from:

 

 

 

 

 

 

 

Income

 

(8,831,714

)

(556,184

)

(1,579,417

)

Realized gain

 

(362,929

)

 

(10,636,482

)

Return of capital

 

 

(8,594,834

)

 

 

 

 

 

 

 

 

 

Net decrease in net assets from shareholder distributions

 

(9,194,643

)

(9,151,018

)

(12,215,899

)

 

 

 

 

 

 

 

 

Capital Share Transactions:

 

 

 

 

 

 

 

Reissuance of treasury stock for share exchange

 

 

4,350,721

 

4,350,722

 

Provision for share exchange

 

(5,571

)

(219,567

)

(221,424

)

Offering expenses

 

 

(139,000

)

(139,000

)

Repurchase of common stock

 

 

(4,114,967

)

(4,114,967

)

 

 

 

 

 

 

 

 

Net decrease in net assets from capital share transactions

 

(5,571

)

(122,813

)

(124,669

)

 

 

 

 

 

 

 

 

Total decrease in net assets

 

(44,715,491

)

(18,501,453

)

(32,182,635

)

 

 

 

 

 

 

 

 

Net assets, beginning of period/year

 

343,902,958

 

376,085,593

 

376,085,593

 

 

 

 

 

 

 

 

 

Net assets, end of period/year

 

$

299,187,467

 

$

357,584,140

 

$

343,902,958

 

 

 

 

 

 

 

 

 

Common shares outstanding, end of period/year

 

22,702,821

 

22,702,821

 

22,702,821

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

7



Table of Contents

 

MVC Capital, Inc.

Consolidated Selected Per Share Data and Ratios

 

 

 

For the Nine Month Period

 

For the Nine Month Period

 

For the

 

 

 

November 1, 2014 to

 

November 1, 2013 to

 

Year Ended

 

 

 

July 31, 2015

 

July 31, 2014

 

October 31, 2014

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period/year

 

$

15.15

 

$

16.63

 

$

16.63

 

 

 

 

 

 

 

 

 

Gain (Loss) from operations:

 

 

 

 

 

 

 

Net operating gain

 

0.39

 

0.02

 

0.07

 

Net realized and unrealized loss on investments

 

(1.95

)

(0.44

)

(0.95

)

 

 

 

 

 

 

 

 

Total loss from investment operations

 

(1.56

)

(0.42

)

(0.88

)

 

 

 

 

 

 

 

 

Less distributions from:

 

 

 

 

 

 

 

Income

 

(0.39

)

(0.02

)

(0.07

)

Realized gain

 

(0.02

)

 

(0.47

)

Return of capital

 

 

(0.39

)

 

 

 

 

 

 

 

 

 

Total distributions

 

(0.41

)

(0.41

)

(0.54

)

 

 

 

 

 

 

 

 

Capital share transactions

 

 

 

 

 

 

 

Dilutive effect of share issuance

 

 

(0.10

)

(0.10

)

Anti-dilutive effect of share repurchase program

 

 

0.05

 

0.04

 

 

 

 

 

 

 

 

 

Total capital share transactions

 

 

(0.05

)

(0.06

)

 

 

 

 

 

 

 

 

Net asset value, end of period/year

 

$

13.18

 

$

15.75

 

$

15.15

 

 

 

 

 

 

 

 

 

Market value, end of period/year

 

$

9.79

 

$

12.39

 

$

11.27

 

 

 

 

 

 

 

 

 

Market discount

 

(25.72

)%

(21.33

)%

(25.61

)%

 

 

 

 

 

 

 

 

Total Return - At NAV (a)

 

(10.44

)%(d)

(2.88

)%(d)

(5.75

)%

 

 

 

 

 

 

 

 

Total Return - At Market (a)

 

(9.51

)%(d)

(7.63

)%(d)

(14.97

)%

 

 

 

 

 

 

 

 

Ratios and Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio turnover ratio

 

14.37

%

7.68

%

14.16

%

 

 

 

 

 

 

 

 

Net assets, end of period/year (in thousands)

 

$

299,173

 

$

357,584

 

$

343,903

 

 

 

 

 

 

 

 

 

Ratios to average net assets:

 

 

 

 

 

 

 

Expenses including tax expense

 

3.66

%(c)

5.45

%(c)

5.04

%

Expenses excluding tax expense

 

3.66

%(c)

5.45

%(c)

5.04

%

 

 

 

 

 

 

 

 

Net operating income before tax expense

 

3.66

%(c)

0.20

%(c)

0.44

%

Net operating income after tax expense

 

3.66

%(c)

0.20

%(c)

0.44

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers:

 

 

 

 

 

 

 

Expenses including tax expense

 

3.70

%(c)

5.49

%(c)

5.08

%

Expenses excluding tax expense

 

3.70

%(c)

5.49

%(c)

5.08

%

 

 

 

 

 

 

 

 

Net operating income before tax expense

 

3.61

%(c)

0.16

%(c)

0.40

%

Net operating income after tax expense

 

3.61

%(c)

0.16

%(c)

0.40

%

 


(a) Total annual return is historical and assumes changes in share price, reinvestments of all dividends and distributions, and no sales charge for the period/year.

 

(b) Supplemental Ratio information

 

Ratios to average net assets: (b)

 

 

 

 

 

 

 

Expenses excluding incentive compensation

 

7.38

%(c)

6.33

%(c)

6.35

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

4.19

%(c)

3.74

%(c)

 3.75

%

 

 

 

 

 

 

 

 

Net operating loss before incentive compensation

 

(0.06

)%(c)

(0.68

)%(c)

 (0.87

)%

Net operating income before incentive compensation, interest and other borrowing costs

 

3.13

%(c)

1.91

%(c)

 1.73

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers: (b)

 

 

 

 

 

 

 

Expenses excluding incentive compensation

 

7.42

%(c)

6.37

%(c)

 6.40

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

4.23

%(c)

3.78

%(c)

 3.79

%

 

 

 

 

 

 

 

 

Net operating loss before incentive compensation

 

(0.11

)%(c)

(0.72

)%(c)

 (0.92

)%

Net operating income before incentive compensation, interest and other borrowing costs

 

3.08

%(c)

1.87

%(c)

 1.69

%

 

(c) Annualized.

(d) Non- Annualized.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

8



Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments

July 31, 2015

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 42.29% (a), (c), (f), (g)

 

 

 

 

 

 

 

 

 

 

 

Actelis Networks, Inc.

 

Technology Investment

 

Preferred Stock (150,602 shares) (d), (i)

 

 

 

$

5,000,003

 

 

Agri-Carriers Group, Inc.

 

Transportation

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% Deferred, 07/20/2017 (l), (m)

 

$

11,774,486

 

11,788,966

 

$

11,774,486

 

Biogenic Reagents

 

Renewable energy

 

Senior Note 12.0000% Cash, 4.0000% PIK, 07/21/2018 (b), (l)

 

5,407,723

 

5,407,723

 

5,407,723

 

 

 

 

 

Senior Convertible Note 12.0000% Cash, 4.0000% PIK, 07/21/2018 (b), (l)

 

4,866,951

 

4,866,951

 

4,945,354

 

 

 

 

 

Senior Note 12.0000% Cash, 4.0000% PIK, 02/29/2016 (b), (l)

 

4,123,022

 

4,123,022

 

4,123,022

 

 

 

 

 

Senior Subordinated Debt 12.0000% Cash, 4.0000% PIK, 02/29/2016 (b), (l)

 

1,000,000

 

601,379

 

601,379

 

 

 

 

 

Warrants (d)

 

2

 

620,077

 

1,724,818

 

 

 

 

 

 

 

 

 

15,619,152

 

16,802,296

 

Biovation Acquisition Co.

 

Manufacturer of Laminate Material and Composites

 

Common Stock (90 shares) (d)

 

 

 

784,622

 

617,330

 

Biovation Holdings, Inc.

 

Manufacturer of Laminate Material and Composites

 

Bridge Loan 6.0000% Cash, 6.0000% PIK, 10/31/2014 (b), (h)

 

1,079,325

 

1,079,325

 

 

 

 

 

 

Warrants (d)

 

3

 

397,677

 

 

 

 

 

 

 

 

 

 

1,477,002

 

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings

 

Second Lien Loan, 7.3000% Cash, 3.7000% PIK, 04/30/2020 (b), (l)

 

23,574,425

 

23,574,425

 

23,670,564

 

 

 

 

 

Unsecured Subordinated Loan 12.0000% Cash, 09/04/2016 (l)

 

3,000,000

 

3,000,000

 

3,000,000

 

 

 

 

 

 

 

 

 

26,574,425

 

26,670,564

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

Preferred Stock (5,802,259 shares) (d), (i)

 

 

 

15,000,000

 

5,537,000

 

G3K Display, Inc.

 

Retail Store Fixtures

 

Senior Lien Loan 13.0000% Cash, 04/11/2019 (h)

 

5,625,000

 

5,625,000

 

 

 

 

 

 

Warrants (d)

 

1

 

 

 

 

 

 

 

 

 

 

 

5,625,000

 

 

Initials, Inc.

 

Consumer Products

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 06/22/2020 (b), (l)

 

4,750,000

 

4,750,000

 

4,750,000

 

Inland Environmental & Remediation LP

 

Environmental Services

 

Senior Secured Loan 12.0000% Cash, 04/17/2019 (h), (l)

 

15,000,000

 

14,470,912

 

3,000,000

 

 

 

 

 

Warrants (d)

 

1

 

713,000

 

 

 

 

 

 

 

 

 

 

15,183,912

 

3,000,000

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 2.0000% Deferred, 09/12/2018 (l), (m)

 

8,705,000

 

8,719,680

 

8,705,000

 

MainStream Data, Inc.

 

Technology Investment

 

Common Stock (5,786 shares) (d), (i)

 

 

 

3,750,000

 

 

Morey’s Seafood International, LLC

 

Food Services

 

Second Lien Loan 6.0000% Cash, 9.0000% PIK, 08/12/2018 (b), (l)

 

15,690,377

 

15,690,377

 

14,936,883

 

NPWT Corporation

 

Medical Device Manufacturer

 

Series B Common Stock (281 shares) (d)

 

 

 

1,231,638

 

2,000

 

 

 

 

 

Series A Convertible Preferred Stock (5,000 shares) (d)

 

 

 

 

32,000

 

 

 

 

 

 

 

 

 

1,231,638

 

34,000

 

The Results Companies, LLC

 

Business Services

 

Senior Subordinated Debt 13.0000% Cash, 2.5000% Deferred, 07/01/2016 (l), (m)

 

9,000,000

 

9,011,483

 

9,000,000

 

RX Innovation, Inc.

 

Software

 

Senior Subordinated Debt 12.0000% Cash, 4.0000% Deferred, 03/01/2017 (l), (m)

 

10,300,000

 

10,310,029

 

10,300,000

 

Thunderdome Restaurants, LLC

 

Restaurants

 

Second Lien Loan, 12.0000% Cash, 06/10/2020

 

2,015,701

 

2,015,701

 

2,015,701

 

U.S. Spray Drying Holding Company

 

Specialty Chemicals

 

Class B Common Stock (784 shares) (d)

 

 

 

5,488,000

 

5,875,000

 

 

 

 

 

Secured Loan 12.0000% Cash, 05/02/2019

 

1,500,000

 

1,500,000

 

1,500,000

 

 

 

 

 

 

 

 

 

6,988,000

 

7,375,000

 

United States Technologies, Inc.

 

Electronics Manufacturing and Repair

 

Senior Lien Loan 10.5000% Cash, 07/17/2020 (l)

 

5,000,000

 

5,000,000

 

5,000,000

 

Sub Total Non-control/Non-affiliated investments

 

 

 

 

 

 

 

164,519,990

 

126,518,260

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments - 57.67% (a), (c), (f), (g)

 

 

 

 

 

 

 

 

 

 

 

Advantage Insurance Holdings LTD

 

Insurance

 

Preferred Stock (750,000 shares) (d), (e)

 

 

 

7,500,000

 

8,015,164

 

Centile Holdings B.V.

 

Software

 

Common Equity Interest (d), (e)

 

 

 

3,524,376

 

4,656,000

 

JSC Tekers Holdings

 

Real Estate Management

 

Common Stock (3,201 shares) (d), (e)

 

 

 

4,500

 

4,200

 

 

 

 

 

Preferred Stock (9,159,085 shares) (d), (e)

 

 

 

11,810,188

 

5,528,800

 

 

 

 

 

 

 

 

 

11,814,688

 

5,533,000

 

Security Holdings B.V.

 

Electrical Engineering

 

Common Equity Interest (d), (e)

 

 

 

52,846,140

 

46,650,000

 

SGDA Europe B.V.

 

Environmental Services

 

Common Equity Interest (d), (e)

 

 

 

28,544,800

 

6,850,000

 

U.S. Gas & Electric, Inc.

 

Energy Services

 

Second Lien Loan, 13.0000% Cash, 07/01/2019 (l)

 

7,500,000

 

7,500,000

 

7,500,000

 

 

 

 

 

Unsecured Loan 10.0000% Cash, 4.0000% PIK , 07/01/2018 (b), (l)

 

3,135,063

 

3,135,063

 

3,135,063

 

 

 

 

 

Convertible Series I Preferred Stock (32,200 shares) (d), (k)

 

 

 

500,000

 

83,667,607

 

 

 

 

 

Convertible Series J Preferred Stock (8,216 shares) (d)

 

 

 

 

 

 

 

 

 

 

 

 

 

11,135,063

 

94,302,670

 

Vestal Manufacturing Enterprises, Inc.

 

Iron Foundries

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK , 11/28/2021 (b), (l)

 

6,267,188

 

6,267,188

 

6,267,188

 

 

 

 

 

Common Stock (5,610 shares) (d)

 

 

 

250,000

 

250,000

 

 

 

 

 

Warrants (d)

 

5,303

 

 

 

 

 

 

 

 

 

 

 

6,517,188

 

6,517,188

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Affiliate investments

 

 

 

 

 

 

 

121,882,255

 

172,524,022

 

 

The accompanying notes are an integral part of these consolidated financial statements.

 

9



Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments - (Continued)

July 31, 2015

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

Control Investments - 33.86% (c), (f), (g)

 

 

 

 

 

 

 

 

 

 

 

Equus Total Return, Inc.

 

Regulated Investment Company

 

Common Stock (4,444,644 shares) (d)

 

 

 

$

10,030,272

 

$

8,355,931

 

Harmony Health & Beauty, Inc.

 

Health & Beauty - Distributor

 

Common Stock (147,621 shares) (a), (d)

 

 

 

6,700,000

 

 

MVC Automotive Group GmbH

 

Automotive Dealerships

 

Common Equity Interest (a), (d), (e)

 

 

 

46,754,138

 

16,376,000

 

MVC Private Equity Fund LP

 

Private Equity

 

Limited Partnership Interest (a), (d), (j)

 

 

 

13,838,539

 

20,557,668

 

 

 

 

 

General Partnership Interest (a), (d), (j)

 

 

 

353,024

 

518,035

 

 

 

 

 

 

 

 

 

14,191,563

 

21,075,703

 

Ohio Medical Corporation

 

Medical Device Manufacturer

 

Common Stock (5,620 shares) (a), (d)

 

 

 

15,763,636

 

 

 

 

 

 

Series A Convertible Preferred Stock 16.0000% PIK (32,600 shares) (a), (b)

 

 

 

30,000,000

 

7,300,000

 

 

 

 

 

Series C Convertible Preferred Stock 16.0000% PIK (10,324shares) (a), (b)

 

 

 

22,618,466

 

31,230,087

 

 

 

 

 

 

 

 

 

68,382,102

 

38,530,087

 

RuMe Inc.

 

Consumer Products

 

Common Stock (5,297,548 shares) (a), (d)

 

 

 

924,475

 

924,475

 

 

 

 

 

Series C Preferred Stock (23,896,634 shares) (a), (d)

 

 

 

3,410,694

 

5,841,390

 

 

 

 

 

Series B-1 Preferred Stock (4,999,076 shares) (a), (d)

 

 

 

999,815

 

1,484,135

 

 

 

 

 

 

 

 

 

5,334,984

 

8,250,000

 

SIA Tekers Invest

 

Port Facilities

 

Common Stock (68,800 shares) (a), (d), (e)

 

 

 

2,300,000

 

917,000

 

Turf Products, LLC

 

Distributor - Landscaping and

 

Senior Subordinated Debt 7.0000% Cash, 4.0000% PIK, 11/01/2018 (a), (b), (l)

 

$

3,895,262

 

3,895,262

 

3,864,923

 

 

 

Irrigation Equipment

 

Limited Liability Company Interest (a), (d)

 

 

 

3,535,694

 

3,991,794

 

 

 

 

 

Guarantee (a), (d)

 

1

 

 

(47,764

)

 

 

 

 

Warrants (a), (d)

 

150

 

 

 

 

 

 

 

 

 

 

 

7,430,956

 

7,808,953

 

Velocitius B.V.

 

Renewable Energy

 

Common Equity Interest (a), (d), (e)

 

 

 

2,730,373

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Control Investments

 

 

 

 

 

 

 

163,854,388

 

101,313,674

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PORTFOLIO INVESTMENTS - 133.82% (f)

 

 

 

 

 

 

 

$

450,256,633

 

$

400,355,956

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash Equivalents and Restricted Cash Equivalents - 6.06% (f), (g)

 

 

 

 

 

 

 

 

 

 

 

Fidelity Institutional Government Money Market Fund

 

Money Market Fund

 

Beneficial Shares (11,736,666 shares)

 

 

 

11,736,666

 

11,736,666

 

JP Morgan Prime Money Market Fund

 

Money Market Fund

 

Beneficial Shares (6,400,379 shares)

 

 

 

6,400,379

 

6,400,379

 

Total Cash Equivalents and Restricted Cash Equivalents

 

 

 

 

 

 

 

18,137,045

 

18,137,045

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS - 139.88%

 

 

 

 

 

 

 

$

468,393,678

 

$

418,493,001

 

 


(a) These securities are restricted from public sale without prior registration under the Securities Act of 1933.  The Company negotiates certain aspects of the method and timing of the disposition of these investments, including registration, rights and related costs.

 

(b) These securities accrue a portion of their interest/dividends in “payment in kind” interest/dividends which is capitalized to the investment.

 

(c) All of the Company’s equity and debt investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940, except MVC Automotive Group GmbH, Security Holdings B.V., SGDA Europe B.V., SIA Tekers Invest, JSC Tekers Holdings, Centile Holdings B.V., Velocitius B.V., Equus Total Return, Inc., MVC Private Equity Fund L.P., and Advantage Insurance LTD. The Company makes available significant managerial assistance to all of the portfolio companies in which it has invested.

 

(d) Non-income producing assets.

 

(e) The principal operations of these portfolio companies are located in Europe and Cayman Islands which represents approximately 30% of the net assets.  The remaining portfolio companies are located in North America which represents approximately 104% of the net assets.

 

(f) Percentages are based on net assets of $299,187,467 as of July 31, 2015.

 

(g) See Note 3 for further information regarding “Investment Classification.”

 

(h) All or a portion of the accrued interest on these securities have been reserved for.

 

(i) Legacy Investments.

 

(j) MVC Private Equity Fund, LP is a private equity fund focused on control equity investments in the lower middle market.  The fund currently holds five investments, four located in the United States and one in Gibraltar, the investments are in the energy, services, contract manufacturing, and industrial sectors.  The Company’s proportional share of the AccuMed Corp. preferred stock, Plymouth Rock Energy membership interest and loan and the Gibdock Limited equity interest is $3,398,500, $6,376,035 and $6,428,020, respectively.

 

(k) Upon a liquidity event, the Company may receive additional ownership in U.S. Gas & Electric, Inc.

 

(l) All or a portion of these securities may serve as collateral for the Firstrust Bank Bridge Loan.

 

(m) Deferred interest of $594,065, $226,269, $700,400 and $528,914 for Agri-Carriers Group, Legal Solutions Holdings, RXInnovation and The Results Companies, respectively, is shown as a receivable on the Consolidated Balance Sheet as of July 31, 2015.

 

PIK - Payment-in-kind

 

- Denotes zero cost or fair value.

 

The accompanying notes are an integral part of these consolidated financial statements.

 

10



Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments

October 31, 2014

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 36.73% (a), (c), (f), (g)

 

 

 

 

 

 

 

 

 

 

 

Actelis Networks, Inc.

 

Technology Investment

 

Preferred Stock (150,602 shares) (d), (i)

 

 

 

$

5,000,003

 

 

Biogenic Reagents

 

Renewable energy

 

Senior Note 12.0000% Cash, 4.0000% PIK, 07/21/2018 (b)

 

$

5,246,951

 

5,246,951

 

$

5,246,951

 

 

 

 

 

Senior Convertible Note 12.0000% Cash, 4.0000% PIK, 07/21/2018 (b)

 

4,722,256