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 April 30, 2018 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

 

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 x  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

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 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 18,820,528 shares of the registrant’s common stock, $.01 par value, outstanding as of June 11, 2018.

 

 

 



Table of Contents

 

MVC Capital, Inc.

(A Delaware Corporation)

Index

 

 

 

Page

Part I.

Consolidated Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

Consolidated Balance Sheets

 

 

 

-

April 30, 2018 (Unaudited) and October 31, 2017

3

 

 

Consolidated Statements of Operations

 

 

 

-

For the Six Month Period November 1, 2017 to April 30, 2018 (Unaudited) and

 

 

 

-

For the Six Month Period November 1, 2016 to April 30, 2017 (Unaudited)

4

 

 

Consolidated Statements of Operations

 

 

 

-

For the Quarter February 1, 2018 to April 30, 2018 (Unaudited) and

 

 

 

-

For the Quarter February 1, 2017 to April 30, 2017 (Unaudited)

5

 

 

Consolidated Statements of Cash Flows

 

 

 

-

For the Six Month Period November 1, 2017 to April 30, 2018 (Unaudited) and

 

 

 

-

For the Six Month Period November 1, 2016 to April 30, 2017 (Unaudited)

6

 

 

Consolidated Statements of Changes in Net Assets

 

 

 

-

For the Six Month Period November 1, 2017 to April 30, 2018 (Unaudited)

 

 

 

-

For the Six Month Period November 1, 2016 to April 30, 2017 (Unaudited) and

 

 

 

-

For the Year ended October 31, 2017

7

 

 

Consolidated Selected Per Share Data and Ratios

 

 

 

-

For the Six Month Period November 1, 2017 to April 30, 2018 (Unaudited)

 

 

 

-

For the Six Month Period November 1, 2016 to April 30, 2017 (Unaudited) and

 

 

 

-

For the Year ended October 31, 2017

8

 

 

Consolidated Schedules of Investments

 

 

 

-

April 30, 2018 (Unaudited)

 

 

 

-

October 31, 2017

9

 

 

Notes to Consolidated Financial Statements

13

 

Item 2.

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

45

 

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

74

 

Item 4.

Controls and Procedures

90

 

 

 

 

Part II.

Other Information

91

 

 

 

 

Item 1. Legal Proceedings

91

 

Item 1A. Risk Factors

91

 

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

91

 

Item 3. Defaults Upon Senior Securities

91

 

Item 4. Mine Safety Disclosures

91

 

Item 5. Other Information

91

 

Item 6. Exhibits

91

 

 

 

SIGNATURE

93

 

 

Exhibits

93

 

2



Table of Contents

 

CONSOLIDATED FINANCIAL STATEMENTS

 

MVC Capital, Inc.

Consolidated Balance Sheets

 

 

 

April 30,

 

October 31,

 

 

 

2018

 

2017

 

 

 

(Unaudited)

 

 

 

ASSETS

Assets

 

 

 

 

 

Cash

 

$

30,089,684

 

$

100,354,340

 

Restricted cash (cost $5,300,478 and $5,300,329)

 

5,300,478

 

5,300,329

 

Cash equivalents (cost $790,497 and $1,019,899)

 

790,497

 

1,019,899

 

Investments at fair value

 

 

 

 

 

U.S. Treasury obligations (cost $24,996,209 and $0)

 

24,996,209

 

 

Non-control/Non-affiliated investments (cost $193,865,701 and $164,581,094)

 

180,988,607

 

149,246,812

 

Affiliate investments (cost $114,621,326 and $114,158,346)

 

79,085,692

 

81,908,631

 

Control investments (cost $87,523,308 and $84,478,275)

 

64,527,600

 

61,370,030

 

Total investments at fair value (cost $421,006,544 and $363,217,715)

 

349,598,108

 

292,525,473

 

Dividends and interest receivables, net of reserves

 

2,144,616

 

1,806,335

 

Deferred financing fees

 

323,269

 

600,379

 

Fee and other receivables

 

1,836,558

 

1,483,793

 

Prepaid expenses

 

425,449

 

318,847

 

 

 

 

 

 

 

Total assets

 

$

390,508,659

 

$

403,409,395

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

Liabilities

 

 

 

 

 

Senior notes II

 

$

111,673,815

 

$

 

Senior notes

 

 

112,626,045

 

Revolving credit facility II

 

25,000,000

 

 

Provision for incentive compensation (Note 11)

 

1,316,475

 

2,060,992

 

Incentive compensation payable

 

2,502,961

 

4,387,266

 

Professional fees payable

 

142,852

 

118,403

 

Management fee payable

 

934,918

 

1,001,770

 

Accrued expenses and liabilities

 

516,910

 

562,473

 

Interest payable

 

491,514

 

345,612

 

Management fee payable - Asset Management

 

88,360

 

89,192

 

Consulting fees payable

 

206,404

 

347,863

 

Portfolio fees payable - Asset Management

 

580,720

 

458,566

 

Guarantees/Letters of Credit

 

703,993

 

551,349

 

Transaction fees payable

 

49,836

 

1,368,742

 

Taxes payable

 

1,094

 

2,054

 

 

 

 

 

 

 

Total liabilities

 

144,209,852

 

123,920,327

 

 

 

 

 

 

 

Commitments and Contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Common stock, $0.01 par value; 150,000,000 shares authorized; 28,304,448 shares issued and 18,820,528 and 21,114,105 shares outstanding as of April 30, 2018 and October 31, 2017, respectively

 

283,044

 

283,044

 

Additional paid-in-capital

 

418,107,945

 

418,208,458

 

Accumulated earnings

 

121,528,079

 

122,455,573

 

Distributions paid to stockholders

 

(163,060,763

)

(157,414,605

)

Accumulated net realized (loss) gain

 

35,533,884

 

38,434,807

 

Net unrealized depreciation

 

(69,580,448

)

(70,965,264

)

Treasury stock, at cost, 9,483,920 and 7,190,343 shares held, respectively

 

(96,512,934

)

(71,512,945

)

 

 

 

 

 

 

Total shareholders’ equity

 

246,298,807

 

279,489,068

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

390,508,659

 

$

403,409,395

 

 

 

 

 

 

 

Net asset value per share

 

$

13.09

 

$

13.24

 

 

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 Six Month Period

 

For the Six Month Period

 

 

 

November 1, 2017 to

 

November 1, 2016 to

 

 

 

April 30, 2018

 

April 30, 2017

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

1,073,249

 

$

 

 

 

 

 

 

 

Total dividend income

 

1,073,249

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

7,169,584

 

3,753,071

 

Affiliate investments

 

23,700

 

1,075,970

 

Control investments

 

161,767

 

332,771

 

 

 

 

 

 

 

Total interest income

 

7,355,051

 

5,161,812

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

1,408,522

 

557,217

 

Affiliate investments

 

110,079

 

374,104

 

Control investments

 

56,239

 

96,559

 

 

 

 

 

 

 

Total payment-in-kind/Deferred interest income

 

1,574,840

 

1,027,880

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

133,458

 

144,642

 

Affiliate investments

 

 

353,333

 

Control investments

 

 

52,420

 

 

 

 

 

 

 

Total fee income

 

133,458

 

550,395

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

393,664

 

420,461

 

Management fees

 

176,968

 

148,010

 

 

 

 

 

 

 

Total fee income - Asset Management

 

570,632

 

568,471

 

 

 

 

 

 

 

Total operating income

 

10,707,230

 

7,308,558

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs 2

 

6,098,458

 

5,143,949

 

Loss on extinguishment of debt

 

1,782,705

 

 

Management fee

 

2,906,877

 

3,510,042

 

Net Incentive compensation (Note 11)

 

(744,517

)

1,745,117

 

Audit & tax preparation fees

 

510,000

 

527,000

 

Legal fees

 

362,020

 

509,410

 

Consulting fees

 

451,000

 

548,555

 

Other expenses

 

351,074

 

480,654

 

Portfolio fees - Asset Management 1

 

295,248

 

315,345

 

Directors’ fees

 

163,000

 

212,514

 

Insurance

 

134,336

 

141,016

 

Management fee - Asset Management 1

 

132,726

 

111,008

 

Administration

 

86,810

 

99,247

 

Public relations fees

 

62,245

 

91,000

 

Printing and postage

 

30,485

 

36,265

 

 

 

 

 

 

 

Total operating expenses

 

12,622,467

 

13,471,122

 

 

 

 

 

 

 

Less: Voluntary Expense Waiver by Adviser 3

 

(75,000

)

(75,000

)

Less: Voluntary Management Fee Waiver by Adviser 4

 

(913,703

)

(877,511

)

 

 

 

 

 

 

Total waivers

 

(988,703

)

(952,511

)

 

 

 

 

 

 

Net operating loss before taxes

 

(926,534

)

(5,210,053

)

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

960

 

960

 

 

 

 

 

 

 

Total tax expense

 

960

 

960

 

 

 

 

 

 

 

Net operating loss

 

(927,494

)

(5,211,013

)

 

 

 

 

 

 

Net Realized and Unrealized (Loss) Gain on Investments:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

 

 

 

Short term investments

 

 

183,087

 

Non-control/Non-affiliated investments

 

(2,901,290

)

1,208

 

Affiliate investments

 

 

850,000

 

Control investments

 

 

9,863,648

 

Foreign currency

 

367

 

4,549

 

 

 

 

 

 

 

Total net realized gain (loss) on investments

 

(2,900,923

)

10,902,492

 

 

 

 

 

 

 

Net unrealized appreciation on investments

 

1,384,816

 

1,754,675

 

 

 

 

 

 

 

Net realized and unrealized (loss) gain on investments

 

(1,516,107

)

12,657,167

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(2,443,601

)

$

7,446,154

 

 

 

 

 

 

 

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

 

$

(0.13

)

$

0.33

 

 

 

 

 

 

 

Dividends declared per share 5

 

$

0.300

 

$

0.270

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

19,517,471

 

22,556,412

 

 


1 These items are related to the management of the MVC Private Equity Fund, L.P. (“PE Fund”).  Please see Note 4 “Management” for more information.

 

2 Interest and other borrowing costs includes $699,979 of interest associated with installment sale treatment on the USG&E note. Please see Note 12 “Tax Matters” for more information.

 

3 Reflects the six month period of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2018 and 2017 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.

 

4 Reflects the six month period of the TTG Advisers’ voluntary waiver of the management fee for the 2018 and 2017 fiscal years. Please see Note 10 “Management” for more information.

 

5 Please see Note 6 “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

 

 

 

February 1, 2018 to

 

February 1, 2017 to

 

 

 

April 30, 2018

 

April 30, 2017

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

534,597

 

$

 

 

 

 

 

 

 

Total dividend income

 

534,597

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

3,644,902

 

2,245,969

 

Affiliate investments

 

12,822

 

490,651

 

Control investments

 

87,533

 

199,298

 

 

 

 

 

 

 

Total interest income

 

3,745,257

 

2,935,918

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

782,691

 

254,256

 

Affiliate investments

 

55,225

 

194,400

 

Control investments

 

31,027

 

34,601

 

 

 

 

 

 

 

Total payment-in-kind/Deferred interest income

 

868,943

 

483,257

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

66,039

 

71,745

 

Affiliate investments

 

 

173,333

 

Control investments

 

 

14,920

 

 

 

 

 

 

 

Total fee income

 

66,039

 

259,998

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

197,562

 

184,597

 

Management fees

 

88,295

 

64,788

 

 

 

 

 

 

 

Total fee income - Asset Management

 

285,857

 

249,385

 

 

 

 

 

 

 

Total operating income

 

5,500,693

 

3,928,558

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs 2

 

2,981,434

 

2,605,853

 

Loss on extinguishment of debt

 

 

 

Management fee

 

1,495,869

 

1,696,127

 

Net Incentive compensation (Note 11)

 

(1,011,106

)

985,343

 

Audit & tax preparation fees

 

75,000

 

72,000

 

Legal fees

 

134,000

 

430,885

 

Consulting fees

 

242,000

 

273,000

 

Other expenses

 

169,814

 

113,208

 

Portfolio fees - Asset Management 1

 

148,171

 

138,447

 

Directors’ fees

 

84,000

 

106,000

 

Insurance

 

67,250

 

68,797

 

Management fee - Asset Management 1

 

66,221

 

48,591

 

Administration

 

43,994

 

48,601

 

Public relations fees

 

24,145

 

44,000

 

Printing and postage

 

15,100

 

15,258

 

 

 

 

 

 

 

Total operating expenses

 

4,535,892

 

6,646,110

 

 

 

 

 

 

 

Less: Voluntary Expense Waiver by Adviser 3

 

(37,500

)

(37,500

)

Less: Voluntary Management Fee Waiver by Adviser 4

 

(560,951

)

(424,032

)

 

 

 

 

 

 

Total waivers

 

(598,451

)

(461,532

)

 

 

 

 

 

 

Net operating gain (loss) before taxes

 

1,563,252

 

(2,256,020

)

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

480

 

480

 

 

 

 

 

 

 

Total tax expense

 

480

 

480

 

 

 

 

 

 

 

Net operating gain (loss)

 

1,562,772

 

(2,256,500

)

 

 

 

 

 

 

Net Realized and Unrealized (Loss) Gain on Investments:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

 

 

 

Short term investments

 

 

85,903

 

Non-control/Non-affiliated investments

 

(2,901,290

)

1,208

 

Affiliate investments

 

 

850,000

 

Control investments

 

 

(1,059,375

)

Foreign currency

 

(2,206

)

 

 

 

 

 

 

 

Total net realized loss on investments

 

(2,903,496

)

(122,264

)

 

 

 

 

 

 

Net unrealized (depreciation) appreciation on investments

 

(2,052,973

)

5,447,496

 

 

 

 

 

 

 

Net realized and unrealized (loss) gain on investments

 

(4,956,469

)

5,325,232

 

 

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(3,393,697

)

$

3,068,732

 

 

 

 

 

 

 

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

 

$

(0.18

)

$

0.14

 

 

 

 

 

 

 

Dividends declared per share 5

 

$

0.150

 

$

0.135

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

18,820,528

 

22,556,412

 

 


1 These items are related to the management of the MVC Private Equity Fund, L.P. (“PE Fund”).  Please see Note 4 “Management” for more information.

 

2 Interest and other borrowing costs includes $699,979 of interest associated with installment sale treatment on the USG&E note. Please see Note 12 “Tax Matters” for more information.

 

3 Reflects the quarterly portion of the TTG Advisers’ voluntary waiver of $150,000 of expenses for the 2018 and 2017 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.

 

4 Reflects the quarterly portion of the TTG Advisers’ voluntary waiver of the management fee for the 2018 and 2017 fiscal years. Please see Note 10 “Management” for more information.

 

5Please see Note 6 “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 Six Month Period

 

For the Six Month Period

 

 

 

November 1, 2017 to

 

November 1, 2016 to

 

 

 

April 30, 2018

 

April 30, 2017

 

Cash flows from Operating Activities:

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(2,443,601

)

$

7,446,154

 

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

 

 

 

 

 

Net realized loss (gain)

 

2,900,923

 

(10,902,492

)

Net change in unrealized (appreciation) depreciation

 

(1,384,816

)

(1,754,675

)

Amortization of premiums (discounts) and fees

 

(100,778

)

(127,216

)

Increase in accrued payment-in-kind dividends and interest

 

(1,350,916

)

(918,545

)

Amortization of deferred financing fees

 

610,895

 

557,634

 

Loss on extinguishment of debt

 

1,782,705

 

 

Changes in operating assets and liabilities:

 

 

 

 

 

Restricted cash

 

(149

)

500,351

 

Dividends, interest and fees receivable

 

(338,281

)

2,472,242

 

Fee and other receivables

 

(352,765

)

(106,313

)

Escrow receivables, net of reserves

 

 

3,919,390

 

Prepaid expenses

 

(106,602

)

(241,570

)

Net incentive compensation (Note 11)

 

(2,628,822

)

649,037

 

Other liabilities

 

(1,282,067

)

(214,273

)

Purchases of equity investments

 

(468,562

)

(59,375

)

Purchases of debt instruments

 

(41,428,204

)

(5,151,147

)

Purchases of short-term investments

 

(24,996,209

)

(49,954,511

)

Proceeds from equity investments (1)

 

 

15,554,570

 

Proceeds from debt instruments

 

9,873,156

 

4,480,843

 

Sales/maturities of short-term investments

 

 

60,177,638

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

(61,714,093

)

26,327,742

 

 

 

 

 

 

 

Cash flows from Financing Activities:

 

 

 

 

 

Borrowings from senior notes II

 

115,000,000

 

 

Repayments on senior notes

 

(114,408,750

)

 

Borrowings from revolving credit facility

 

25,000,000

 

50,000,000

 

Repayments from revolving credit facility

 

 

(60,000,000

)

Repurchase of common stock

 

(25,100,502

)

 

 

Financing fees paid

 

(3,624,555

)

(187,500

)

Distributions paid to shareholders

 

(5,478,662

)

(5,957,039

)

Repurchases of common stock under dividend reinvestment plan

 

(167,496

)

(133,193

)

 

 

 

 

 

 

Net cash used in financing activities

 

(8,779,965

)

(16,277,732

)

 

 

 

 

 

 

Net change in cash and cash equivalents for the period

 

(70,494,058

)

10,050,010

 

 

 

 

 

 

 

Cash and cash equivalents, beginning of period

 

$

101,374,239

 

$

20,214,160

 

 

 

 

 

 

 

Cash and cash equivalents, end of period

 

$

30,880,181

 

$

30,264,170

 

 


(1) For the six month period ended April 30, 2017, proceeds from equity investments includes $800,859, in escrow receivables, net of reserves.

 

During the six month periods ended April 30, 2018 and 2017 MVC Capital, Inc. paid $5,045,474 and $4,214,601 in interest expense, respectively.

 

During the six month periods ended April 30, 2018 and 2017 MVC Capital, Inc. paid $1,920 and $1,278 in income taxes, respectively.

 

Non-cash activity:

During the six month periods ended April 30, 2018 and 2017, MVC Capital, Inc. recorded payment in-kind dividend and interest of $1,350,916 and $918,545, respectively. This amount was added to the principal balance of the investments and recorded as dividend/interest income.

 

During the six month periods ended April 30, 2018 and 2017, the Company issued 16,019 and 15,127 shares of common stock to satisfy the dividend reinvestment plan.

 

On November 28, 2017, the Company restructured the Custom Alloy second lien loan and unsecured subordinated loan.  The second lien loan was restructured into a $3.5 million second lien loan with an interest rate of 10% and a maturity date of December 31, 2020, 6,500 shares of Series B Preferred Stock with a 10% PIK coupon and a maturity date of December 31, 2020 and 17,935 shares of Series C Preferred Stock.  The unsecured subordinated loan was restructured into 3,617 shares of Series A Preferred Stock with a 12% PIK coupon and a maturity date of April 30, 2020.

 

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 Six Month Period

 

For the Six Month Period

 

 

 

 

 

November 1, 2017 to

 

November 1, 2016 to

 

For the Year Ended

 

 

 

April 30, 2018

 

April 30, 2017

 

October 31, 2017

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

Operations:

 

 

 

 

 

 

 

Net operating loss

 

$

(927,494

)

$

(5,211,013

)

$

(5,598,822

)

Net realized (loss) gain on investments

 

(2,900,923

)

10,902,492

 

89,895,631

 

Net change in appreciation (depreciation) unrealized appreciation on investments

 

1,384,816

 

1,754,675

 

(56,972,810

)

 

 

 

 

 

 

 

 

Net (decrease) increase in net assets from operations

 

(2,443,601

)

7,446,154

 

27,323,999

 

 

 

 

 

 

 

 

 

Shareholder Distributions from:

 

 

 

 

 

 

 

Income

 

 

(6,090,232

)

(9,738,519

)

Return of capital

 

(5,646,158

)

 

(2,563,946

)

 

 

 

 

 

 

 

 

Net decrease in net assets from shareholder distributions

 

(5,646,158

)

(6,090,232

)

(12,302,465

)

 

 

 

 

 

 

 

 

Capital Share Transactions:

 

 

 

 

 

 

 

Issuance of common stock under dividend reinvestment plan

 

167,496

 

133,193

 

283,120

 

Repurchase of common stock under dividend reinvestment plan

 

(167,496

)

(133,193

)

(283,120

)

Repurchase expenses

 

(100,513

)

 

(90,251

)

Repurchase of common stock

 

(24,999,989

)

 

(14,999,993

)

 

 

 

 

 

 

 

 

Net decrease in net assets from capital share transactions

 

(25,100,502

)

 

(15,090,244

)

 

 

 

 

 

 

 

 

Total (decrease) increase in net assets

 

(33,190,261

)

1,355,922

 

(68,710

)

 

 

 

 

 

 

 

 

Net assets, beginning of period/year

 

279,489,068

 

279,557,778

 

279,557,778

 

 

 

 

 

 

 

 

 

Net assets, end of period/year

 

$

246,298,807

 

$

280,913,700

 

$

279,489,068

 

 

 

 

 

 

 

 

 

Common shares outstanding, end of period/year

 

18,820,528

 

22,556,412

 

21,114,105

 

 

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 Six Month Period

 

For the Six Month Period

 

For the

 

 

 

November 1, 2017 to

 

November 1, 2016 to

 

Year Ended

 

 

 

April 30, 2018

 

April 30, 2017

 

October 31, 2017

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period/year

 

$

13.24

 

$

12.39

 

$

12.39

 

 

 

 

 

 

 

 

 

(Loss) Gain from operations:

 

 

 

 

 

 

 

Net operating loss

 

(0.05

)

(0.23

)

(0.25

)

Net realized and unrealized (loss) gain on investments

 

(0.08

)

0.56

 

1.47

 

 

 

 

 

 

 

 

 

Total (loss) gain from investment operations

 

(0.13

)

0.33

 

1.22

 

 

 

 

 

 

 

 

 

Less distributions from:

 

 

 

 

 

 

 

Income

 

 

(0.27

)

(0.44

)

Return of capital

 

(0.30

)

 

(0.12

)

 

 

 

 

 

 

 

 

Total distributions

 

(0.30

)

(0.27

)

(0.56

)

 

 

 

 

 

 

 

 

Capital share transactions

 

 

 

 

 

 

 

Anti-dilutive effect of share repurchase program

 

0.28

 

 

0.19

 

 

 

 

 

 

 

 

 

Total capital share transactions

 

0.28

 

 

0.19

 

 

 

 

 

 

 

 

 

Net asset value, end of period/year

 

$

13.09

 

$

12.45

 

$

13.24

 

 

 

 

 

 

 

 

 

Market value, end of period/year

 

$

9.92

 

$

9.04

 

$

10.70

 

 

 

 

 

 

 

 

 

Market discount

 

(24.22

)%

(27.39

)%

(19.18

)%

 

 

 

 

 

 

 

 

Total Return - At NAV (a)

 

1.12

%

2.68

%

11.54

%

 

 

 

 

 

 

 

 

Total Return - At Market (a)

 

(4.54

)%

7.25

%

30.39

%

 

 

 

 

 

 

 

 

Ratios and Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio turnover ratio

 

3.20

%

0.55

%

4.26

%

 

 

 

 

 

 

 

 

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

 

$

246,299

 

$

280,914

 

$

279,489

 

 

 

 

 

 

 

 

 

Ratios to average net assets:

 

 

 

 

 

 

 

Expenses including tax expense

 

9.04

%(c)

9.00

%(c)

9.03

%

Expenses excluding tax expense

 

9.04

%(c)

9.00

%(c)

9.03

%

 

 

 

 

 

 

 

 

Net operating loss before tax expense

 

(0.72

)%(c)

(3.75

)%(c)

(1.97

)%

Net operating loss after tax expense

 

(0.72

)%(c)

(3.75

)%(c)

(1.97

)%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers:

 

 

 

 

 

 

 

Expenses including tax expense

 

9.81

%(c)

9.69

%(c)

9.63

%

Expenses excluding tax expense

 

9.81

%(c)

9.69

%(c)

9.63

%

 

 

 

 

 

 

 

 

Net operating loss before tax expense

 

(1.49

)%(c)

(4.43

)%(c)

(2.57

)%

Net operating loss after tax expense

 

(1.49

)%(c)

(4.43

)%(c)

(2.57

)%

 

 

 

 

 

 

 

 


(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

 

9.62

%(c)

7.75

%(c)

7.07

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

4.88

%(c)

4.05

%(c)

3.45

%

 

 

 

 

 

 

 

 

Net operating loss before incentive compensation

 

(1.30

)%(c)

(2.49

)%(c)

%

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

 

3.44

%(c)

1.21

%(c)

3.62

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers: (b)

 

 

 

 

 

 

 

Expenses excluding incentive compensation

 

10.39

%(c)

8.43

%(c)

7.67

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

5.65

%(c)

4.73

%(c)

4.05

%

 

 

 

 

 

 

 

 

Net operating loss before incentive compensation

 

(2.07

)%(c)

(3.18

)%(c)

(0.60

)%

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

 

2.67

%(c)

0.52

%(c)

3.02

%

 

(c) Annualized.

 

 

 

 

 

 

 

 

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

 

8



Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments

April 30, 2018

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 73.48% (a, c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Apex Industrial Technologies, LLC

 

Supply Chain Equipment Manufacturer

 

First Lien Loan 12.0000% Cash, 03/09/2023 (k, n)

 

$

15,000,000

 

$

14,854,274

 

$

15,000,000

 

Array Information Technology, Inc.

 

Information Technology Products and Services

 

Second Lien Loan 12.0000% Cash, 4.0000% PIK, 10/03/2023 (b, k, n, p)

 

6,000,000

 

5,881,818

 

6,000,000

 

 

 

 

 

Warrants (d, n)

 

1

 

 

 

 

 

 

 

 

 

 

 

5,881,818

 

6,000,000

 

Black Diamond Equipment Rentals, LLC

 

Equipment Rental

 

Second Lien Loan 12.5000% Cash, 06/27/2022 (k, n)

 

7,500,000

 

6,990,752

 

7,129,424

 

 

 

 

 

Warrants (d, n)

 

1

 

400,847

 

400,847

 

 

 

 

 

 

 

 

 

7,391,599

 

7,530,271

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings and Forgings

 

Second Lien Loan 10.0000% Cash, 12/31/2020 (k, n)

 

3,569,053

 

3,129,267

 

3,262,374

 

 

 

 

 

First Lien Loan 10.0000% Cash, 08/31/2018 (k, n)

 

3,420,688

 

3,420,688

 

3,420,688

 

 

 

 

 

Series A Preferred Stock (3,617 shares) 12.0000% PIK, 04/30/2020 (b, d, n)

 

 

 

3,000,000

 

3,278,591

 

 

 

 

 

Series B Preferred Stock (6,500 shares) 10.0000% PIK, 12/31/2020 (b, d, n)

 

 

 

5,683,254

 

5,821,436

 

 

 

 

 

Covertible Series C Preferred Stock (17,935 shares) (d, n)

 

 

 

17,935,482

 

12,873,574

 

 

 

 

 

 

 

 

 

33,168,691

 

28,656,663

 

Dukane IAS,LLC

 

Welding Equipment Manufacturer

 

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

 

4,322,074

 

4,247,034

 

4,365,293

 

Essner Manufacturing, LP

 

Defense/Aerospace Parts Manufacturing

 

First Lien Loan 11.5000% Cash, 12/20/2022 (k, n, o)

 

3,666,700

 

3,598,727

 

3,666,700

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

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

 

 

 

15,000,000

 

4,798,000

 

Highpoint Global LLC

 

Government Services

 

Second Lien Note 12.0000% Cash, 2.0000% PIK, 09/30/2022 (b, k, n)

 

5,045,659

 

4,956,456

 

5,045,659

 

HTI Technologies and Industries, Inc.

 

Electronic Component Manufacturing

 

Second Lien Note 12.0000% Cash, 2.0000% PIK, 06/21/2019 (b, k, n)

 

9,978,172

 

9,974,165

 

9,687,962

 

Initials, Inc.

 

Consumer Products

 

Senior Subordinated Debt 8.0000% Cash, 7.0000% PIK, 06/23/2020 (b, k, n)

 

5,402,355

 

5,402,355

 

4,857,666

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 09/12/2018 (b, k, n)

 

11,630,939

 

11,631,681

 

11,747,363

 

Morey’s Seafood International, LLC

 

Food Services

 

Second Lien Loan 10.0000% Cash, 4.0000% PIK, 08/12/2022 (b, k, n, q)

 

15,916,640

 

15,916,640

 

16,162,449

 

SGDA Europe B.V.

 

Environmental Services

 

First Lien Note 5.0000% PIK, 10/26/2024 (b, e, m, n)

 

1,217,745

 

1,217,745

 

1,217,745

 

 

 

 

 

Warrants (d, o)

 

1

 

67,715

 

67,715

 

 

 

 

 

 

 

 

 

1,285,460

 

1,285,460

 

Turf Products, LLC

 

Distributor - Landscaping and Irrigation Equipment

 

Senior Subordinated Debt 10.0000% Cash, 08/07/2020 (k, n)

 

7,717,056

 

7,717,056

 

7,207,017

 

 

 

 

 

Third Lien Loan 10.0000% Cash, 08/07/2020 (k, n)

 

1,330,000

 

1,330,000

 

1,261,284

 

 

 

 

 

 

 

 

 

9,047,056

 

8,468,301

 

U.S. Gas & Electric, Inc.

 

Energy Services

 

Second Lien Loan, 9.5000% Cash, 07/05/2025 (l, n)

 

37,527,881

 

37,527,881

 

39,761,820

 

U.S. Spray Drying Holding Company

 

Specialty Chemicals

 

Class B Common Stock (784 shares) (d, n)

 

 

 

5,488,000

 

5,400,000

 

 

 

 

 

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

 

1,500,000

 

1,500,000

 

1,500,000

 

 

 

 

 

Senior Secured Loan 12.0000% Cash, 11/07/2020 (k, n)

 

1,500,000

 

1,500,000

 

1,500,000

 

 

 

 

 

 

 

 

 

8,488,000

 

8,400,000

 

United States Technologies, Inc.

 

Electronics Manufacturing and Repair

 

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

 

5,500,000

 

5,493,864

 

5,555,000

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Non-control/Non-affiliated investments

 

 

 

 

 

 

 

$

193,865,701

 

$

180,988,607

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments - 32.11% (c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Advantage Insurance, Inc.

 

Insurance

 

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

 

 

 

7,500,000

 

8,835,361

 

Centile Holdings B.V.

 

Software

 

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

 

 

 

3,524,376

 

7,281,000

 

Crius Energy Trust

 

Energy Services

 

Equity Unit (3,282,982 shares) (e)

 

 

 

25,865,227

 

19,377,240

 

JSC Tekers Holdings

 

Real Estate Management

 

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

 

 

 

4,500

 

 

 

 

 

 

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

 

 

 

11,810,188

 

4,390,000

 

 

 

 

 

 

 

 

 

11,814,688

 

4,390,000

 

MVC Environmental, Inc.

 

Environmental Services

 

Senior Secured Loan 9.0000% PIK, 12/22/2020 (a, b, h, k, n)

 

6,869,353

 

6,869,353

 

4,136,054

 

 

 

 

 

Common Stock (980 shares) (a, d, n)

 

 

 

3,140,375

 

 

 

 

 

 

 

 

 

 

10,009,728

 

4,136,054

 

Security Holdings B.V.

 

Electrical Engineering

 

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

 

 

 

51,204,270

 

30,363,000

 

 

 

 

 

Bridge Loan 5.0000% PIK, 12/31/2019 (a, b, e, k, n)

 

4,703,037

 

4,703,037

 

4,703,037

 

 

 

 

 

 

 

 

 

55,907,307

 

35,066,037

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Affiliate investments

 

 

 

 

 

 

 

$

114,621,326

 

$

79,085,692

 

 

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

 

9



Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments - (Continued)

April 30, 2018

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

Control investments - 26.20% (c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Equus Total Return, Inc.

 

Registered Investment Company

 

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

 

 

 

$

10,030,272

 

$

10,578,253

 

MVC Automotive Group GmbH

 

Automotive Dealerships

 

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

 

 

 

51,185,015

 

20,162,000

 

 

 

 

 

Bridge Loan 6.0000% Cash, 06/30/2019 (a, e, k, n)

 

$

7,149,166

 

7,149,166

 

7,149,166

 

 

 

 

 

 

 

 

 

58,334,181

 

27,311,166

 

MVC Private Equity Fund LP

 

Private Equity

 

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

 

 

 

11,452,452

 

18,352,925

 

 

 

 

 

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

 

 

 

292,154

 

461,257

 

 

 

 

 

 

 

 

 

11,744,606

 

18,814,182

 

RuMe Inc.

 

Consumer Products

 

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

 

 

 

924,475

 

92,741

 

 

 

 

 

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

 

 

 

3,410,694

 

3,819,831

 

 

 

 

 

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

 

 

 

999,815

 

1,845,303

 

 

 

 

 

Subordinated Debt 10.0000% PIK, 3/30/2022 (a, b, k, n)

 

1,742,872

 

1,742,872

 

1,742,872

 

 

 

 

 

Warrants (a, d, n)

 

2

 

336,393

 

323,252

 

 

 

 

 

 

 

 

 

7,414,249

 

7,823,999

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Control investments

 

 

 

 

 

 

 

$

87,523,308

 

$

64,527,600

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PORTFOLIO INVESTMENTS - 131.79% (f)

 

 

 

 

 

 

 

$

396,010,335

 

$

324,601,899

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Obligations - 10.15% (f, g)

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bill

 

U.S. Government Securities

 

2.750% Cash, 04/30/2023 (r)

 

$

25,050,000

 

24,996,209

 

$

24,996,209

 

Sub Total Short-Term Investments

 

 

 

 

 

 

 

24,996,209

 

24,996,209

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents — 0.32% (f, g)

 

 

 

 

 

 

 

 

 

 

 

Fidelity Institutional Government Money Market Fund

 

Money Market Fund

 

Beneficial Shares (694,342 shares)

 

 

 

$

694,342

 

$

694,342

 

Morgan Stanley Institutional Liquidity Government Portfolio

 

Money Market Fund

 

Beneficial Shares (96,155 shares)

 

 

 

96,155

 

96,155

 

Total Cash equivalents

 

 

 

 

 

 

 

790,497

 

790,497

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENT ASSETS - 142.26%

 

 

 

 

 

 

 

$

421,797,041

 

$

350,388,605

 

 


(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., JSC Tekers Holdings, Centile Holdings B.V., Equus Total Return Inc., and MVC Private Equity Fund L.P.

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, Canada, and Puerto Rico which represents approximately 27% of the total assets.  The remaining portfolio companies are located in United States which represents approximately 57% of the total assets.

 

(f) Percentages are based on net assets of $246,298,807 as of April 30, 2018.

 

(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 four investments, three 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 Plymouth Rock Energy membership interest and loan, the Gibdock Limited equity interest, Advanced Oil Field Services, LLC common stock, preferred stock, and loan and Focus Pointe preferred stock is $7,257,919, $4,208,377, $3,139,401 and $3,286,550, respectively.  The Company’s partnership interests in the MVC Private Equity Fund, LP are not redemmable.

 

(k) All or a portion of these securities may serve as collateral for the Santander Credit Facility.

 

(l) U.S. Gas & Electric, Inc. is an indirect subsidiary of Crius Energy Trust.

 

(m) PIK toggle at borrower’s option

 

(n) These securities are valued using unobservable inputs.

 

(o) Variable rate between 10.5000% and 11.5000% cash.

 

(p) 12% Cash and 0-4% PIK based on FD/EBITDA.  4% PIK to start.

 

(q) 10% Cash and 4% PIK beginning August 1, 2017.

 

(r) Serves as collateral for the BB&T custody account.

 

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, 2017

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 53.40% (a, c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings and Forgings

 

Second Lien Loan 10.1000% Cash, 04/30/2020 (h, k, o)

 

$

24,425,298

 

24,425,298

 

$

18,471,704

 

 

 

 

 

Unsecured Subordinated Loan 12.0000% Cash, 03/31/2018 (h, k, o)

 

3,000,000

 

3,000,000

 

3,012,165

 

 

 

 

 

 

 

 

 

27,425,298

 

21,483,869

 

Dukane IAS,LLC

 

Welding Equipment Manufacturer

 

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

 

7,255,747

 

7,165,971

 

7,328,296

 

FDS, Inc.

 

Software

 

Senior Subordinated Debt 12.0000% Cash, 11/30/2017 (k, o)

 

2,353,156

 

2,353,156

 

2,353,156

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

Preferred Stock (5,802,259 shares) (d, I, o)

 

 

 

15,000,000

 

5,407,000

 

Highpoint Global LLC

 

Government Services

 

Second Lien Note 12.0000% Cash, 2.0000% PIK, 09/30/2022 (b, k)

 

5,000,000

 

4,900,699

 

4,900,699

 

HTI Technologies and Industries, Inc.

 

Electronic Component Manufacturing

 

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

 

9,878,042

 

9,849,998

 

9,766,317

 

Initials, Inc.

 

Consumer Products

 

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

 

4,818,874

 

4,818,874

 

4,310,277

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 09/12/2018 (b, k, o)

 

11,456,144

 

11,459,396

 

11,570,745

 

Morey’s Seafood International, LLC

 

Food Services

 

Second Lien Loan 10.0000% Cash, 4.0000% PIK, 08/12/2018 (b, k, o)

 

17,236,157

 

17,236,157

 

17,800,661

 

SGDA Europe B.V.

 

Environmental Services

 

First Lien Note 5.0000% Cash, PIK, 10/26/2024 (a, b, e, m)

 

1,197,244

 

1,197,244

 

1,197,244

 

Turf Products, LLC

 

Distributor - Landscaping and Irrigation Equipment

 

Senior Subordinated Debt 10.0000% Cash, 08/07/2020 (k, o)

 

7,717,056

 

7,717,056

 

7,562,620

 

U.S. Gas & Electric, Inc.

 

Energy Services

 

Second Lien Loan, 9.5000% Cash, 07/05/2025 (l, k, o)