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, 2016 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

 

94-3346760

(State or other jurisdiction of
incorporation or organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

287 Bowman Avenue
2nd Floor
Purchase, New York

 

10577

(Address of principal
executive offices)

 

(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 oAccelerated filer x Non-accelerated filero Smaller reporting companyo

 

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 September 9, 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, 2016 (Unaudited) and October 31, 2015

 

3

Consolidated Statements of Operations

 

 

-                    For the Nine Month Period November 1, 2015 to July 31, 2016 (Unaudited) and

 

 

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

 

4

Consolidated Statements of Operations

 

 

-                    For the Quarter May 1, 2016 to July 31, 2016 (Unaudited) and

 

 

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

 

5

Consolidated Statements of Cash Flows

 

 

-                    For the Nine Month Period November 1, 2015 to July 31, 2016 (Unaudited) and

 

 

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

 

6

Consolidated Statements of Changes in Net Assets

 

 

-                    For the Nine Month Period November 1, 2015 to July 31, 2016 (Unaudited),

 

 

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

 

 

-                    For the Year ended October 31, 2015

 

7

Consolidated Selected Per Share Data and Ratios

 

 

-                    For the Nine Month Period November 1, 2015 to July 31, 2016 (Unaudited),

 

 

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

 

 

-                    For the Year ended October 31, 2015

 

8

Consolidated Schedules of Investments

 

 

-                    July 31, 2016 (Unaudited)

 

9

-                    October 31, 2015

 

11

Notes to Consolidated Financial Statements

 

13

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

 

41

Item 3. Quantitative and Qualitative Disclosures about Market Risk

 

72

Item 4. Controls and Procedures

 

86

 

 

 

Part II. Other Information

 

87

 

 

 

Item 1. Legal Proceedings

 

87

Item 1A. Risk Factors

 

87

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

 

87

Item 3. Defaults Upon Senior Securities

 

87

Item 4. Mine Safety Disclosures

 

87

Item 5. Other Information

 

87

Item 6. Exhibits

 

87

 

 

 

SIGNATURE

 

88

 

 

 

Exhibits

 

89

 



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,

 

 

 

2016

 

2015

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash

 

$

16,104,508

 

$

7,753,901

 

Restricted cash (cost $500,364 and $1,000,034)

 

500,364

 

1,000,034

 

Restricted cash equivalents (cost $0 and $5,503,000)

 

 

5,503,000

 

Cash equivalents (cost $1,115,731 and $2,557,666)

 

1,115,731

 

2,557,666

 

Investments at fair value

 

 

 

 

 

U.S. Treasury obligations (cost $0 and $89,820,800)

 

 

89,681,535

 

Non-control/Non-affiliated investments (cost $168,984,297 and $165,626,784)

 

132,573,875

 

131,351,403

 

Affiliate investments (cost $131,570,880 and $121,962,460)

 

169,575,555

 

170,189,927

 

Control investments (cost $91,039,948 and $156,127,715)

 

64,715,750

 

99,334,391

 

Total investments at fair value (cost $391,595,125 and $533,537,759)

 

366,865,180

 

490,557,256

 

Receivable on sale of U.S. Treasury obligations

 

35,057,482

 

 

Escrow receivables, net of reserves

 

8,787,820

 

292,744

 

Deferred financing fees

 

3,503,734

 

2,467,305

 

Dividends and interest receivables, net of reserves

 

2,009,683

 

4,404,600

 

Fee and other receivables

 

1,168,328

 

1,696,280

 

Prepaid expenses

 

448,505

 

609,517

 

 

 

 

 

 

 

Total assets

 

$

435,561,335

 

$

516,842,303

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Senior notes

 

$

114,408,750

 

$

114,408,750

 

Revolving credit facility II

 

35,000,000

 

90,000,000

 

Revolving credit facility III

 

2,000,000

 

 

Management fee payable

 

1,449,146

 

1,527,930

 

Provision for incentive compensation (Note 11)

 

1,369,652

 

4,976,767

 

Professional fees payable

 

939,824

 

1,820,416

 

Accrued expenses and liabilities

 

938,893

 

622,446

 

Interest payable

 

353,433

 

359,866

 

Portfolio fees payable - Asset Management

 

311,897

 

250,846

 

Consulting fees payable

 

168,756

 

272,880

 

Management fee payable - Asset Management

 

79,280

 

296,812

 

Taxes payable

 

813

 

1,152

 

Bridge Loan

 

 

8,000,000

 

Liability for share exchange

 

 

228,851

 

 

 

 

 

 

 

Total liabilities

 

157,020,444

 

222,766,716

 

 

 

 

 

 

 

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 shares outstanding as of July 31, 2016 and October 31, 2015, respectively

 

283,044

 

283,044

 

Additional paid-in-capital

 

418,298,784

 

418,298,784

 

Accumulated earnings (loss)

 

121,818,118

 

102,420,976

 

Dividends paid to shareholders

 

(142,067,024

)

(129,012,902

)

Accumulated net realized (loss) gain

 

(40,098,874

)

2,189

 

Net unrealized depreciation

 

(24,396,951

)

(42,620,298

)

Treasury stock, at cost, 5,601,627 and 5,601,627 shares heldas of July 31, 2016 and October 31, 2015, respectively

 

(55,296,206

)

(55,296,206

)

 

 

 

 

 

 

Total shareholders’ equity

 

278,540,891

 

294,075,587

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

435,561,335

 

$

516,842,303

 

 

 

 

 

 

 

Net asset value per share

 

$

12.27

 

$

12.95

 

 

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, 2015 to

 

November 1, 2014 to

 

 

 

July 31, 2016

 

July 31, 2015

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

284

 

$

2,876

 

Affiliate investments

 

12,500,000

 

1,002,872

 

Control investments

 

97,101

 

 

Total dividend income

 

12,597,385

 

1,005,748

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

9,038,608

 

9,256,257

 

Affiliate investments

 

1,715,641

 

973,962

 

Control investments

 

240,965

 

253,556

 

Total interest income

 

10,995,214

 

10,483,775

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

3,772,909

 

3,237,977

 

Affiliate investments

 

430,496

 

93,837

 

Control investments

 

116,962

 

116,537

 

Total payment-in-kind/Deferred interest income

 

4,320,367

 

3,448,351

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

100,757

 

357,500

 

Affiliate investments

 

444,000

 

542,666

 

Control investments

 

2,418,750

 

929,492

 

Total fee income

 

2,963,507

 

1,829,658

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

743,595

 

772,925

 

Management fees

 

329,881

 

112,301

 

Total fee income - Asset Management

 

1,073,476

 

885,226

 

 

 

 

 

 

 

Total operating income

 

31,949,949

 

17,652,758

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs

 

7,613,976

 

7,697,985

 

Management fee

 

5,869,533

 

5,944,693

 

Consulting fees

 

1,108,790

 

423,153

 

Legal fees

 

929,155

 

1,021,000

 

Portfolio fees - Asset Management 1

 

557,696

 

579,694

 

Other expenses

 

348,332

 

606,251

 

Directors’ fees

 

320,000

 

315,000

 

Management fee - Asset Management 1

 

247,411

 

75,311

 

Insurance

 

224,492

 

257,760

 

Audit & tax preparation fees

 

205,381

 

612,000

 

Administration

 

161,308

 

181,219

 

Public relations fees

 

132,000

 

138,000

 

Printing and postage

 

20,415

 

66,380

 

Net Incentive compensation (Note 11)

 

(2,607,115

)

(8,986,219

)

 

 

 

 

 

 

Total operating expenses

 

15,131,374

 

8,932,227

 

 

 

 

 

 

 

Less: Voluntary expense waiver by Adviser 2

 

(112,500

)

(112,500

)

Less: Voluntary management fee waiver by Adviser 3

 

(1,467,383

)

 

Less: Voluntary incentive fee waiver by Adviser 4

 

(1,000,000

)

 

 

 

 

 

 

 

Total waivers

 

(2,579,883

)

(112,500

)

 

 

 

 

 

 

Net operating income before taxes

 

19,398,458

 

8,833,031

 

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

1,316

 

1,317

 

 

 

 

 

 

 

Total tax expense

 

1,316

 

1,317

 

 

 

 

 

 

 

Net operating income

 

19,397,142

 

8,831,714

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments and foreign currency

 

 

 

 

 

U.S. Treasury obligations

 

125,116

 

302,246

 

Non-control/Non-affiliated investments

 

(8,822,166

)

(2,073,792

)

Affiliate investments

 

(30,996

)

 

Control investments

 

(31,373,017

)

15,024,346

 

Foreign currency

 

 

(122,168

)

 

 

 

 

 

 

Total net realized (loss) gain on investments and foreign currency

 

(40,101,063

)

13,130,632

 

 

 

 

 

 

 

Net unrealized appreciation (depreciation) on investments

 

18,223,347

 

(57,477,623

)

 

 

 

 

 

 

Net realized and unrealized loss on investments and foreign currency

 

(21,877,716

)

(44,346,991

)

 

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(2,480,574

)

$

(35,515,277

)

 

 

 

 

 

 

Net decrease in net assets per share resulting from operations

 

$

(0.11

)

$

(1.56

)

 

 

 

 

 

 

Dividends declared per share

 

$

0.575

 

$

0.405

 

 

 

 

 

 

 

Weighted average number of shares outstanding5

 

22,702,821

 

22,702,821

 

 

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

 


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.

 

Reflects the nine month portion of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2016 and 2015 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.

 

Reflects TTG Advisers’ voluntary waiver of 0.50% of the management fee for the nine months ended July 31, 2016.  Please see Note 10 “Management” for more information.

 

4Reflects TTG Advisers’ voluntary waiver of the incentive fee associated with pre-incentive fee net operating income for the nine months ended July 31, 2016.  Please see Note 10 “Management” for more information.

 

5Please 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, 2016 to

 

May 1, 2015 to

 

 

 

July 31, 2016

 

July 31, 2015

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

 

$

2,431

 

Affiliate investments

 

2,500,000

 

1,002,872

 

Total dividend income

 

2,500,000

 

1,005,303

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

3,077,827

 

3,116,473

 

Affiliate investments

 

580,257

 

329,014

 

Control investments

 

78,175

 

82,142

 

Total interest income

 

3,736,259

 

3,527,629

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

1,078,829

 

1,258,360

 

Affiliate investments

 

172,235

 

31,941

 

Control investments

 

39,272

 

39,272

 

Total payment-in-kind/Deferred interest income

 

1,290,336

 

1,329,573

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

33,952

 

357,500

 

Affiliate investments

 

80,000

 

180,000

 

Control investments

 

37,500

 

767,991

 

Total fee income

 

151,452

 

1,305,491

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

245,772

 

251,825

 

Management fees

 

80,946

 

103,617

 

Total fee income - Asset Management

 

326,718

 

355,442

 

 

 

 

 

 

 

Total operating income

 

8,004,765

 

7,523,438

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs

 

2,487,762

 

2,627,155

 

Management fee

 

1,932,195

 

1,898,946

 

Consulting fees

 

529,588

 

196,251

 

Legal fees

 

346,099

 

204,000

 

Portfolio fees - Asset Management 1

 

184,329

 

188,869

 

Other expenses

 

105,225

 

142,352

 

Directors’ fees

 

105,000

 

105,000

 

Insurance

 

72,275

 

85,920

 

Audit & tax preparation fees

 

69,781

 

274,000

 

Management fee - Asset Management 1

 

60,710

 

77,713

 

Administration

 

50,267

 

60,346

 

Public relations fees

 

40,000

 

46,000

 

Printing and postage

 

194

 

21,469

 

Net Incentive compensation (Note 11)

 

(1,512,166

)

(3,404,419

)

 

 

 

 

 

 

Total operating expenses

 

4,471,259

 

2,523,602

 

 

 

 

 

 

 

Less: Voluntary expense waiver by Adviser 2

 

(37,500

)

(37,500

)

Less: Voluntary management fee waiver by Adviser 3

 

(483,048

)

 

 

 

 

 

 

 

Total waivers

 

(520,548

)

(37,500

)

 

 

 

 

 

 

Net operating income before taxes

 

4,054,054

 

5,037,336

 

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

438

 

439

 

 

 

 

 

 

 

Total tax expense

 

438

 

439

 

 

 

 

 

 

 

Net operating income

 

4,053,616

 

5,036,897

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments and foreign currency

 

 

 

 

 

U.S. Treasury obligations

 

215,543

 

257,813

 

Non-control/Non-affiliated investments

 

(1,185,631

)

91,586

 

Affiliate investments

 

15,418

 

 

Control investments

 

210,065

 

15,024,346

 

Foreign currency

 

 

(122,168

)

 

 

 

 

 

 

Total net realized (loss) gain on investments and foreign currency

 

(744,605

)

15,251,577

 

 

 

 

 

 

 

Net unrealized depreciation on investments

 

(6,844,625

)

(34,247,632

)

 

 

 

 

 

 

Net realized and unrealized loss on investments and foreign currency

 

(7,589,230

)

(18,996,055

)

 

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(3,535,614

)

$

(13,959,158

)

 

 

 

 

 

 

Net decrease in net assets per share resulting from operations

 

$

(0.16

)

$

(0.61

)

 

 

 

 

 

 

Dividends declared per share

 

$

0.135

 

$

0.135

 

 

 

 

 

 

 

Weighted average number of shares outstanding5

 

22,702,821

 

22,702,821

 

 

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

 


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.

 

Reflects the quarterly portion of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2016 and 2015 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.

 

Reflects TTG Advisers’ voluntary waiver of 0.50% of the management fee for the fiscal quarter ended July 31, 2016.  Please see

Note 10 “Management” for more information.

 

4Reflects TTG Advisers’ voluntary waiver of the incentive fee associated with pre-incentive fee net operating income for the fiscal quarter ended July 31, 2016.  Please see Note 10 “Management” for more information.

 

5Please 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, 2015

 

November 1, 2014

 

 

 

July 31, 2016

 

July 31, 2015

 

Cash flows from Operating Activities:

 

 

 

 

 

Net decrease in net assets resulting from operations

 

$

(2,480,574

)

$

(35,515,277

)

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

 

 

 

 

 

Net realized loss (gain)

 

40,101,063

 

(13,130,632

)

Net change in unrealized (appreciaton) depreciation

 

(18,223,347

)

57,477,623

 

Amortization of discounts and fees

 

(53,301

)

(316,277

)

Increase in accrued payment-in-kind dividends and interest

 

(6,698,463

)

(1,464,781

)

Amortization of deferred financing fees

 

767,348

 

821,598

 

Changes in operating assets and liabilities:

 

 

 

 

 

Restricted cash

 

499,670

 

772,500

 

Restricted cash equivalents

 

5,503,000

 

 

Dividends, interest and fees receivable

 

2,394,917

 

(2,370,167

)

Fee and other receivables

 

527,952

 

591,257

 

U.S. Treasury obligations receivables

 

(35,057,482

)

(100,314,028

)

Escrow receivables, net of reserves

 

(8,495,076

)

(292,744

)

Prepaid expenses

 

161,012

 

16,880

 

Incentive compensation (Note 11)

 

(3,607,115

)

(8,986,219

)

Other liabilities

 

(1,139,157

)

(56,134

)

Purchases of equity investments

 

(1,992,242

)

(1,841,700

)

Purchases of debt instruments

 

(39,155,640

)

(59,047,099

)

Purchases of U.S. Treasury Obligations

 

(119,857,875

)

(294,241,984

)

Proceeds from equity investments

 

36,848,989

 

25,943,104

 

Proceeds from debt instruments

 

22,917,871

 

39,253,936

 

Sales/maturities of U.S. Treasury Obligations

 

209,805,021

 

394,544,993

 

 

 

 

 

 

 

Net cash provided by operating activities

 

82,766,571

 

1,844,849

 

 

 

 

 

 

 

Cash flows from Financing Activities:

 

 

 

 

 

Borrowings from revolving credit facility II

 

134,300,000

 

295,000,000

 

Repayments from revolving credit facility II

 

(189,300,000

)

(295,000,000

)

Borrowings from revolving credit facility III

 

2,000,000

 

 

Borrowings from bridge loan

 

 

28,672,481

 

Repayments from bridge loan

 

(8,000,000

)

(15,882,481

)

Share exchange

 

 

(5,571

)

Financing fees paid

 

(1,803,777

)

(514,114

)

Distributions paid to shareholders

 

(13,054,122

)

(9,194,643

)

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

(75,857,899

)

3,075,672

 

 

 

 

 

 

 

Net change in cash and cash equivalents for the period

 

6,908,672

 

4,920,521

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

10,311,567

 

$

17,172,464

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

17,220,239

 

$

22,092,985

 

 

During the nine month period ended July 31, 2016 and 2015 MVC Capital, Inc. paid $6,404,189 and $6,792,546 in interest expense, respectively.

 

During the nine month period ended July 31, 2016 and 2015 MVC Capital, Inc. paid $930 and $1,823 in income taxes, respectively.

 

Non-cash activity:

 

During the nine month period ended July 31, 2016 and 2015, MVC Capital, Inc. recorded payment in-kind dividend and interest of $6,698,463 and $1,464,781, respectively. This amount was added to the principal balance of the investments and recorded as dividend/interest income.

 

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.

 

On December 24, 2015, as part of Inland’s restructuring, the Company received a $6.0 million senior secured loan from MVC Environmental, Inc. and received 950 of its common shares.

 

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, 2015 to

 

November 1, 2014 to

 

For the Year Ended

 

 

 

July 31, 2016

 

July 31, 2015

 

October 31, 2015

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

Operations:

 

 

 

 

 

 

 

Net operating gain

 

$

19,397,142

 

$

8,831,714

 

$

9,296,816

 

Net realized (loss) gain on investments

 

(40,101,063

)

13,130,632

 

3,700,260

 

Net change in unrealized appreciation (depreciation) on investments

 

18,223,347

 

(57,477,623

)

(50,557,496

)

 

 

 

 

 

 

 

 

Net decrease in net assets from operations

 

(2,480,574

)

(35,515,277

)

(37,560,420

)

 

 

 

 

 

 

 

 

Shareholder Distributions from:

 

 

 

 

 

 

 

Income

 

(13,054,122

)

(8,831,714

)

(9,296,816

)

Realized gain

 

 

(362,929

)

(2,962,708

)

 

 

 

 

 

 

 

 

Net decrease in net assets from shareholder distributions

 

(13,054,122

)

(9,194,643

)

(12,259,524

)

 

 

 

 

 

 

 

 

Capital Share Transactions:

 

 

 

 

 

 

 

Provision for share exchange

 

 

(5,571

)

(7,427

)

 

 

 

 

 

 

 

 

Net decrease in net assets from capital share transactions

 

 

(5,571

)

(7,427

)

 

 

 

 

 

 

 

 

Total decrease in net assets

 

(15,534,696

)

(44,715,491

)

(49,827,371

)

 

 

 

 

 

 

 

 

Net assets, beginning of period/year

 

294,075,587

 

343,902,958

 

343,902,958

 

 

 

 

 

 

 

 

 

Net assets, end of period/year

 

$

278,540,891

 

$

299,187,467

 

$

294,075,587

 

 

 

 

 

 

 

 

 

Common shares outstanding, end of period/year

 

22,702,821

 

22,702,821

 

22,702,821

 

 

 

 

 

 

 

 

 

Undistributed net operating income

 

$

6,343,020

 

$

 

$

 

 

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, 2015 to

 

November 1, 2014 to

 

Year Ended

 

 

 

July 31, 2016

 

July 31, 2015

 

October 31, 2015

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period/year

 

$

12.95

 

$

15.15

 

$

15.15

 

 

 

 

 

 

 

 

 

Income (Loss) from operations:

 

 

 

 

 

 

 

Net operating income

 

0.85

 

0.39

 

0.41

 

Net realized and unrealized loss on investments

 

(0.96

)

(1.95

)

(2.07

)

 

 

 

 

 

 

 

 

Total loss from investment operations

 

(0.11

)

(1.56

)

(1.66

)

 

 

 

 

 

 

 

 

Less distributions from:

 

 

 

 

 

 

 

Income

 

(0.57

)

(0.39

)

(0.41

)

Realized gain

 

 

(0.02

)

(0.13

)

 

 

 

 

 

 

 

 

Total distributions

 

(0.57

)

(0.41

)

(0.54

)

 

 

 

 

 

 

 

 

Net asset value, end of period/year

 

$

12.27

 

$

13.18

 

$

12.95

 

 

 

 

 

 

 

 

 

Market value, end of period/year

 

$

8.08

 

$

9.79

 

$

8.32

 

 

 

 

 

 

 

 

 

Market discount

 

(34.15

)%

(25.72

)%

(35.75

)%

 

 

 

 

 

 

 

 

Total Return - At NAV (a)

 

(0.80

)%(d)

(10.44

)%(d)

(11.08

)%

 

 

 

 

 

 

 

 

Total Return - At Market (a)

 

4.67

%(d)

(9.51

)%(d)

(21.85

)%

 

 

 

 

 

 

 

 

Ratios and Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio turnover ratio

 

12.77

%

14.37

%

15.19

%

 

 

 

 

 

 

 

 

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

 

$

278,541

 

$

299,173

 

$

294,076

 

 

 

 

 

 

 

 

 

Ratios to average net assets:

 

 

 

 

 

 

 

Expenses including tax expense

 

5.88

%(c)

3.66

%(c)

4.54

%

Expenses excluding tax expense

 

5.88

%(c)

3.66

%(c)

4.54

%

 

 

 

 

 

 

 

 

Net operating income before tax expense

 

9.09

%(c)

3.66

%(c)

2.93

%

Net operating income after tax expense

 

9.09

%(c)

3.66

%(c)

2.93

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers:

 

 

 

 

 

 

 

Expenses including tax expense

 

7.09

%(c)

3.70

%(c)

4.59

%

Expenses excluding tax expense

 

7.09

%(c)

3.70

%(c)

4.59

%

 

 

 

 

 

 

 

 

Net operating income before tax expense

 

7.88

%(c)

3.61

%(c)

2.89

%

Net operating income after tax expense

 

7.88

%(c)

3.61

%(c)

2.89

%

 


(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

 

7.10

%(c)

7.38

%(c)

7.62

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

3.53

%(c)

4.19

%(c)

4.39

%

 

 

 

 

 

 

 

 

Net operating income (loss) before incentive compensation

 

7.87

%(c)

(0.06

)%(c)

(0.15

)%

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

 

11.44

%(c)

3.13

%(c)

3.08

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers: (b)

 

 

 

 

 

 

 

Expenses excluding incentive compensation

 

8.31

%(c)

7.42

%(c)

7.67

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

4.74

%(c)

4.23

%(c)

4.44

%

 

 

 

 

 

 

 

 

Net operating income (loss) before incentive compensation

 

6.66

%(c)

(0.11

)%(c)

(0.19

)%

 

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

 

10.23

%(c)

3.08

%(c)

3.04

%

 

(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, 2016

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 47.60% (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)

 

$

11,774,486

 

13,212,013

 

$

13,300,127

 

Biogenic Reagents

 

Renewable Energy

 

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

 

5,574,648

 

5,574,648

 

3,513,350

 

 

 

 

 

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

 

5,017,183

 

5,017,183

 

3,162,014

 

 

 

 

 

Senior Note 12.0000% Cash, 4.0000% PIK, 06/30/2016 (b, h, l)

 

4,250,291

 

4,250,291

 

4,250,291

 

 

 

 

 

Senior Subordinated Debt 12.0000% Cash, 4.0000% PIK, 06/30/2016 (b, h, l)

 

1,030,188

 

1,030,188

 

1,030,188

 

 

 

 

 

Warrants (d)

 

2

 

620,077

 

 

 

 

 

 

 

 

 

 

16,492,387

 

11,955,843

 

Biovation Acquisition Co.

 

Manufacturer of Laminate Material and Composites

 

Common Stock (90 shares) (d)

 

 

 

784,622

 

353,357

 

 

 

 

 

Senior Lien Loan 5.0000% PIK, 05/05/2021 (b, l)

 

30,000

 

30,000

 

30,000

 

 

 

 

 

 

 

 

 

814,622

 

383,357

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings and Forgings

 

Second Lien Loan 4.5000% Cash, 5.5000% PIK, 04/30/2020 (b, l)

 

24,425,293

 

24,425,293

 

18,359,962

 

 

 

 

 

Unsecured Subordinated Loan 12.0000% Cash, 03/31/2018 (l)

 

3,000,000

 

3,000,000

 

2,167,353

 

 

 

 

 

 

 

 

 

27,425,293

 

20,527,315

 

Dukane IAS, LLC

 

Welding Equipment Manufacturer

 

Second Lien Note 10.5000% Cash, 2.5000% PIK, 11/17/2020 (b, l)

 

7,065,760

 

6,939,142

 

7,065,760

 

FDS, Inc.

 

Software

 

Senior Subordinated Debt 12.0000% Cash, 4.0000% PIK, 11/30/2016 (b, l)

 

2,300,000

 

2,300,000

 

2,300,000

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

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

 

 

 

15,000,000

 

5,700,000

 

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

 

 

HTI Technologies and Industries, Inc.

 

Electronic Component Manufacturing

 

Second Lien Note 12.0000% Cash, 2.0000% PIK, 06/21/2018 (b, l)

 

9,631,025

 

9,542,888

 

9,631,025

 

Initials, Inc.

 

Consumer Products

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 06/23/2020 (b, l)

 

4,818,874

 

4,818,874

 

4,788,935

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 4.0000% PIK, 09/12/2018 (b, l)

 

10,933,612

 

10,943,209

 

10,803,284

 

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 10.0000% Cash, 4.0000% PIK, 08/12/2018 (b, l)

 

17,167,669

 

17,167,669

 

14,754,225

 

Pride Engineering, LLC

 

Manufacturer of Equipment Components

 

Second Lien Note 12.0000% Cash, 06/18/2021 (l)

 

5,135,000

 

5,043,895

 

5,135,000

 

Quantum Plastics, LLC

 

Manufacturer of Plastic Parts

 

Senior Subordinated Debt 12.0000% Cash, 03/10/2021 (l)

 

10,000,000

 

9,545,536

 

9,631,212

 

 

 

 

 

Warrants (d)

 

1

 

392,792

 

392,792

 

 

 

 

 

 

 

 

 

9,938,328

 

10,024,004

 

Thunderdome Restaurants, LLC

 

Restaurants

 

Second Lien Loan, 12.0000% Cash, 06/10/2020 (l)

 

3,000,000

 

2,982,974

 

3,030,000

 

U.S. Spray Drying Holding Company

 

Specialty Chemicals

 

Class B Common Stock (784 shares) (d)

 

 

 

5,488,000

 

6,625,000

 

 

 

 

 

Secured Loan 12.0000% Cash, 04/30/2019 (l)

 

1,500,000

 

1,500,000

 

1,500,000

 

 

 

 

 

 

 

 

 

6,988,000

 

8,125,000

 

United States Technologies, Inc.

 

Electronics Manufacturing and Repair

 

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

 

5,000,000

 

5,000,000

 

5,050,000

 

Sub Total Non-control/Non-affiliated investments

 

 

 

 

 

 

 

168,984,297

 

132,573,875

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments - 60.88% (a, c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Advantage Insurance Holdings LTD

 

Insurance

 

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

 

 

 

7,500,000

 

8,109,150

 

Centile Holdings B.V.

 

Software

 

Common Equity Interest (d, e)

 

 

 

3,524,376

 

5,429,000

 

JSC Tekers Holdings

 

Real Estate Management

 

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

 

 

 

4,500

 

 

 

 

 

 

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

 

 

 

11,810,188

 

3,869,000

 

 

 

 

 

 

 

 

 

11,814,688

 

3,869,000

 

MVC Environmental, Inc.

 

Environmental Services

 

Senior Secured Loan 9.0000% PIK, 12/22/2020 (b, l)

 

6,284,382

 

6,284,382

 

6,284,382

 

 

 

 

 

Common Stock (950 shares) (d)

 

 

 

3,081,000

 

3,110,000

 

 

 

 

 

 

 

 

 

9,365,382

 

9,394,382

 

Security Holdings B.V.

 

Electrical Engineering

 

Common Equity Interest (d, e)

 

 

 

52,846,140

 

41,863,000

 

SGDA Europe B.V.

 

Environmental Services

 

Common Equity Interest (d, e)

 

 

 

28,544,800

 

2,618,000

 

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)

 

3,264,959

 

3,264,959

 

3,264,959

 

 

 

 

 

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

 

 

 

500,000

 

79,767,607

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

11,264,959

 

90,532,566

 

Vestal Manufacturing Enterprises, Inc.

 

Iron Foundries

 

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

 

6,460,535

 

6,460,535

 

6,589,796

 

 

 

 

 

Common Stock (5,610 shares) (d)

 

 

 

250,000

 

711,826

 

 

 

 

 

Warrants (d)

 

5,303

 

 

458,835

 

 

 

 

 

 

 

 

 

6,710,535

 

7,760,457

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Affiliate investments

 

 

 

 

 

 

 

131,570,880

 

169,575,555

 

 

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, 2016

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

Control investments - 23.23% (c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Equus Total Return, Inc.

 

Registered Investment Company

 

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

 

 

 

$

10,030,272

 

$

7,555,895

 

MVC Automotive Group GmbH

 

Automotive Dealerships

 

Common Equity Interest (a, d, e)

 

 

 

50,057,288

 

14,070,000

 

 

 

 

 

Bridge Loan 6.0000% Cash, 12/31/2016 (a, e, l)

 

$

1,667,100

 

1,667,100

 

1,667,100

 

 

 

 

 

 

 

 

 

51,724,388

 

15,737,100

 

MVC Private Equity Fund LP

 

Private Equity

 

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

 

 

 

13,838,539

 

23,261,418

 

 

 

 

 

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

 

 

 

353,024

 

584,412

 

 

 

 

 

 

 

 

 

14,191,563

 

23,845,830

 

RuMe, Inc.

 

Consumer Products

 

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

 

 

 

924,475

 

780,000

 

 

 

 

 

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

 

 

 

3,410,694

 

6,895,000

 

 

 

 

 

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

 

 

 

999,815

 

2,175,000

 

 

 

 

 

 

 

 

 

5,334,984

 

9,850,000

 

SIA Tekers Invest

 

Port Facilities

 

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

 

 

 

2,300,000

 

 

 

 

 

 

Bridge Loan 6.0000% Cash, 06/27/2017 (a, e, h, l)

 

27,785

 

27,785

 

 

 

 

 

 

 

 

 

 

2,327,785

 

 

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

 

3,757,167

 

 

 

Irrigation Equipment

 

Limited Liability Company Interest (a, d)

 

 

 

3,535,694

 

3,991,794

 

 

 

 

 

Guarantee (a, d)

 

1

 

 

(22,036

)

 

 

 

 

Warrants (a, d)

 

150

 

 

 

 

 

 

 

 

 

 

 

7,430,956

 

7,726,925

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Control investments

 

 

 

 

 

 

 

91,039,948

 

64,715,750

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PORTFOLIO INVESTMENTS - 131.71% (f)

 

 

 

 

 

 

 

$

391,595,125

 

$

366,865,180

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - 0.40% (f, g)

 

 

 

 

 

 

 

 

 

 

 

Fidelity Institutional Government Money Market Fund

 

Money Market Fund

 

Beneficial Shares (1,115,731 shares)

 

 

 

1,115,731

 

1,115,731

 

Total Cash equivalents

 

 

 

 

 

 

 

1,115,731

 

1,115,731

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENTS - 132.11%

 

 

 

 

 

 

 

$

392,710,856

 

$

367,980,911

 

 


(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., Equus Total Return, Inc., MVC Private Equity Fund L.P., and Advantage Insurance Holdings 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 28% 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 $278,541,029 as of July 31, 2016.

 

(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 $7,646,739, $7,605,533 and $4,627,855, 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 Santander Credit Facility.

 

(m) All or a portion of these securities may serve as collateral for the BB&T Credit Facility.

 

(n) All or a portion of these securities may serve as collateral for the Macquarie Energy trade supply credit facility.

 

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, 2015

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 44.67% (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

 

11,787,114

 

$

11,774,486

 

Biogenic Reagents

 

Renewable energy

 

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

 

5,463,002

 

5,463,002

 

5,463,002

 

 

 

 

 

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

 

4,916,702

 

4,916,702

 

4,983,082

 

 

 

 

 

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

 

4,165,169

 

4,165,169

 

4,165,169

 

 

 

 

 

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

 

1,009,556

 

1,009,556

 

1,009,556

 

 

 

 

 

Warrants (d)

 

2

 

620,077

 

1,660,689

 

 

 

 

 

 

 

 

 

16,174,506

 

17,281,498

 

Biovation Acquisition Co.

 

Manufacturer of Laminate Material and Composites

 

Common Stock (90 shares) (d)

 

 

 

784,622

 

555,869

 

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 and Forgings

 

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

 

23,791,903

 

23,791,903

 

23,638,469

 

 

 

 

 

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

 

3,000,000

 

3,000,000

 

3,000,000

 

 

 

 

 

 

 

 

 

26,791,903

 

26,638,469

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

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

 

 

 

15,000,000

 

5,596,000

 

G3K Display, Inc.

 

Retail Store Fixtures

 

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