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 January 31, 2019

 

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

 

(I.R.S. Employer

incorporation or organization)

 

Identification No.)

 

 

 

287 Bowman Avenue

 

 

2nd Floor

 

 

Purchase, New York

 

10577

(Address of principal

 

(Zip Code)

executive offices)

 

 

 

 

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 £

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes  x  No £

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer £

Accelerated filer x

Non-accelerated filer o

Smaller reporting company o

Emerging growth 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 £ No x

 

There were 17,725,118 shares of the registrant’s common stock, $.01 par value, outstanding as of March 8, 2019.

 

 

 


Table of Contents

 

MVC Capital, Inc.

(A Delaware Corporation)

Index

 

 

 

Page

Part I. Consolidated Financial Information

 

 

 

 

Item 1. Consolidated Financial Statements

 

 

Consolidated Balance Sheets

3

 

-

January 31, 2019 (Unaudited) and October 31, 2018

 

 

Consolidated Statements of Operations

4

 

-

For the Quarter Ended January 31, 2019 (Unaudited) and

 

 

-

For the Quarter Ended January 31, 2018 (Unaudited)

 

 

Consolidated Statements of Cash Flows

5

 

-

For the Quarter Ended January 31, 2019 (Unaudited) and

 

 

-

For the Quarter Ended January 31, 2018 (Unaudited)

 

 

Consolidated Statements of Changes in Net Assets

6

 

-

For the Quarter Ended January 31, 2019 (Unaudited)

 

 

-

For the Quarter Ended January 31, 2018 (Unaudited) and

 

 

-

For the Year ended October 31, 2018

 

 

Consolidated Selected Per Share Data and Ratios

7

 

-

For the Quarter Ended January 31, 2019 (Unaudited)

 

 

-

For the Quarter Ended January 31, 2018 (Unaudited) and

 

 

-

For the Year ended October 31, 2018

 

 

Consolidated Schedules of Investments

8

 

-

January 31, 2019 (Unaudited)

 

 

-

October 31, 2018

10

 

Notes to Consolidated Financial Statements

12

 

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

42

 

Item 3. Quantitative and Qualitative Disclosures about Market Risk

68

 

Item 4. Controls and Procedures

83

 

 

Part II. Other Information

83

 

 

 

Item 1. Legal Proceedings

83

 

Item 1A. Risk Factors

83

 

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

83

 

Item 3. Defaults Upon Senior Securities

84

 

Item 4. Mine Safety Disclosures

84

 

Item 5. Other Information

84

 

Item 6. Exhibits

84

 

 

 

SIGNATURE

85

 

 

Exhibits

84

 

2


Table of Contents

 

Part I. Consolidated Financial Information

 

Item 1. Consolidated Financial Statements

 

CONSOLIDATED FINANCIAL STATEMENTS

 

MVC Capital, Inc.

Consolidated Balance Sheets

 

 

 

January 31,

 

October 31,

 

 

 

2019

 

2018

 

 

 

(Unaudited)

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

Assets

 

 

 

 

 

Cash

 

$

3,839,542

 

$

9,803,800

 

Restricted cash (cost $11,965,282 and $5,300,629)

 

11,965,282

 

5,300,629

 

Cash equivalents (cost $427,528 and $783,271)

 

427,528

 

783,271

 

Investments at fair value

 

 

 

 

 

U.S. Treasury obligations (cost $24,996,322 and $0)

 

25,043,154

 

 

Non-control/Non-affiliated investments (cost $205,977,844 and $203,068,014)

 

193,090,912

 

188,919,833

 

Affiliate investments (cost $119,452,500 and $116,062,640)

 

67,251,874

 

70,489,501

 

Control investments (cost $88,147,435 and $90,501,322)

 

55,809,241

 

65,097,978

 

Total investments at fair value (cost $438,574,101 and $409,631,976)

 

341,195,181

 

324,507,312

 

Escrow receivables, net of reserves

 

1,018,000

 

969,000

 

Dividends and interest receivables, net of reserves

 

2,316,296

 

2,913,910

 

Deferred financing fees

 

702,905

 

87,850

 

Fees and other receivables

 

2,699,963

 

2,382,463

 

Prepaid expenses

 

182,038

 

330,071

 

 

 

 

 

 

 

Total assets

 

$

364,346,735

 

$

347,078,306

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Senior notes II

 

$

112,144,860

 

$

111,958,650

 

Revolving credit facility II

 

25,000,000

 

 

Revolving credit facility IV

 

4,000,000

 

 

Incentive compensation payable

 

2,502,961

 

2,502,961

 

Professional fees payable

 

358,094

 

166,522

 

Management fee payable

 

945,325

 

934,813

 

Accrued expenses and liabilities

 

221,758

 

220,447

 

Interest payable

 

752,645

 

656,847

 

Management fee payable - Asset Management

 

178,501

 

107,079

 

Consulting fees payable

 

239,317

 

154,443

 

Portfolio fees payable - Asset Management

 

685,329

 

664,462

 

Guarantees/Letters of Credit

 

337,711

 

2,866,516

 

Payable for shares repurchased

 

 

62,898

 

Transaction fees payable

 

57,166

 

57,166

 

Taxes payable

 

2,536

 

2,056

 

 

 

 

 

 

 

Total liabilities

 

147,426,203

 

120,354,860

 

 

 

 

 

 

 

Commitments and Contingencies (Note 9)

 

 

 

 

 

 

 

 

 

 

 

Shareholders’ equity

 

 

 

 

 

Common stock, $0.01 par value; 150,000,000 shares authorized; 28,304,448 shares issued and 17,725,118 and 18,192,804 shares outstanding as of January 31, 2019 and October 31, 2018, respectively

 

283,044

 

283,044

 

Additional paid-in-capital

 

408,583,787

 

408,583,787

 

Accumulated earnings

 

137,043,230

 

135,596,655

 

Dividends paid to stockholders

 

(171,296,782

)

(168,616,544

)

Accumulated net realized gain

 

44,004,773

 

38,778,647

 

Net unrealized depreciation

 

(95,184,651

)

(85,459,198

)

Treasury stock, at cost, 10,579,330 and 10,111,644 shares held, respectively

 

(106,512,869

)

(102,442,945

)

 

 

 

 

 

 

Total shareholders’ equity

 

216,920,532

 

226,723,446

 

 

 

 

 

 

 

Total liabilities and shareholders’ equity

 

$

364,346,735

 

$

347,078,306

 

 

 

 

 

 

 

Net asset value per share

 

$

12.24

 

$

12.46

 

 

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 Quarter Ended

 

For the Quarter Ended

 

 

 

January 31, 2019

 

January 31, 2018

 

Operating Income:

 

 

 

 

 

Dividend income

 

 

 

 

 

Non-control/Non-affiliated investments

 

$

 

$

 

Affiliate investments (net of foreign taxes withheld of $77,403 and $59,574, respectively)*

 

262,529

 

479,078

 

Control investments

 

542,693

 

 

 

 

 

 

 

 

Total dividend income

 

805,222

 

479,078

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

4,272,026

 

3,524,682

 

Affiliate investments

 

 

10,878

 

Control investments

 

109,621

 

74,234

 

 

 

 

 

 

 

Total interest income

 

4,381,647

 

3,609,794

 

 

 

 

 

 

 

Payment-in-kind/Deferred interest income

 

 

 

 

 

Non-control/Non-affiliated investments

 

651,901

 

625,831

 

Affiliate investments

 

220,813

 

54,854

 

Control investments

 

120,113

 

25,212

 

 

 

 

 

 

 

Total payment-in-kind/Deferred interest income

 

992,827

 

705,897

 

 

 

 

 

 

 

Fee income

 

 

 

 

 

Non-control/Non-affiliated investments

 

38,099

 

67,419

 

 

 

 

 

 

 

Total fee income

 

38,099

 

67,419

 

 

 

 

 

 

 

Fee income - Asset Management 1

 

 

 

 

 

Portfolio fees

 

127,823

 

196,102

 

Management fees

 

95,229

 

88,673

 

 

 

 

 

 

 

Total fee income - Asset Management

 

223,052

 

284,775

 

 

 

 

 

 

 

Total operating income

 

6,440,847

 

5,146,963

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

Interest and other borrowing costs 2

 

2,484,086

 

3,117,024

 

Management fee

 

1,512,518

 

1,411,008

 

Audit & tax preparation fees

 

667,780

 

435,000

 

Consulting fees

 

249,935

 

209,000

 

Other expenses*

 

129,380

 

121,686

 

Legal fees

 

134,400

 

228,020

 

Portfolio fees - Asset Management 1

 

95,867

 

147,077

 

Directors’ fees

 

85,248

 

79,000

 

Management fee - Asset Management 1

 

71,422

 

66,505

 

Insurance

 

67,305

 

67,086

 

Administration

 

41,589

 

42,816

 

Public relations fees

 

38,857

 

38,100

 

Printing and postage

 

20,100

 

15,385

 

Loss on extinguishment of debt

 

 

1,782,705

 

Net Incentive compensation (Note 11)

 

 

266,589

 

 

 

 

 

 

 

Total operating expenses

 

5,598,487

 

8,027,001

 

 

 

 

 

 

 

Less: Voluntary expense waiver by Adviser 3

 

(37,500

)

(37,500

)

Less: Voluntary management fee waiver by Adviser 4

 

(567,195

)

(352,752

)

 

 

 

 

 

 

Total waivers

 

(604,695

)

(390,252

)

 

 

 

 

 

 

Net operating income (loss) before taxes

 

1,447,055

 

(2,489,786

)

 

 

 

 

 

 

Tax Expenses:

 

 

 

 

 

Current tax expense

 

480

 

480

 

 

 

 

 

 

 

Total tax expense

 

480

 

480

 

 

 

 

 

 

 

Net operating income (loss)

 

1,446,575

 

(2,490,266

)

 

 

 

 

 

 

Net Realized and Unrealized Gain (Loss) on Investments:

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

 

 

 

Affiliate investments

 

39,420

 

 

Control investments

 

5,184,544

 

 

Foreign currency

 

2,162

 

2,573

 

 

 

 

 

 

 

Total net realized gain on investments

 

5,226,126

 

2,573

 

 

 

 

 

 

 

Net unrealized appreciation (depreciation) on investments

 

(9,725,453

)

3,437,789

 

 

 

 

 

 

 

Net realized and unrealized gain (loss) on investments

 

(4,499,327

)

3,440,362

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(3,052,752

)

$

950,096

 

 

 

 

 

 

 

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

 

$

(0.17

)

$

0.05

 

 

 

 

 

 

 

Dividends declared per share 5

 

$

0.150

 

$

0.150

 

 

 

 

 

 

 

Weighted average number of shares outstanding

 

17,977,361

 

20,191,688

 

 

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 Interest and other borrowing costs includes $91,476 and $0 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 2019 and 2018 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 2019 and 2018

Please see Note 10 “Management” for more information.

 

5 Please see Note 13 “Dividends and Distributions to Shareholders” for more information.

 

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

 

* Amounts from prior year have been reclassified to conform to current year presentation.

 

4


Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

 

For the Quarter Ended

 

For the Quarter Ended

 

 

 

January 31, 2019

 

January 31, 2018

 

Cash flows from Operating Activities:

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(3,052,752

)

$

950,096

 

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

 

 

 

 

 

Net realized (gain) loss

 

(5,226,126

)

(2,573

)

Net change in unrealized depreciation (appreciation)

 

9,725,453

 

(3,437,789

)

Amortization of discounts and fees

 

(67,065

)

(38,555

)

Increase in accrued payment-in-kind dividends and interest

 

(964,412

)

(715,324

)

Amortization of deferred financing fees

 

(446,647

)

272,777

 

Loss on extinguishment of debt

 

 

1,782,705

 

Changes in operating assets and liabilities:

 

 

 

 

 

Dividends, interest and fees receivable

 

597,614

 

(38,450

)

Fees and other receivables

 

(317,500

)

(191,580

)

Escrow receivables, net of reserves

 

(49,000

)

 

Prepaid expenses

 

148,033

 

71,873

 

Incentive compensation (Note 5)

 

 

(1,617,716

)

Other liabilities

 

413,938

 

(100,267

)

Purchases of equity investments

 

(3,353,189

)

(400,847

)

Purchases of debt instruments

 

(3,591,598

)

(14,015,335

)

Purchases of short-term investments

 

(24,996,336

)

 

Proceeds from equity investments (1)

 

8,206,480

 

 

Proceeds from debt instruments

 

1,943,413

 

3,200,000

 

 

 

 

 

 

 

Net cash used in operating activities

 

(21,029,694

)

(14,280,985

)

 

 

 

 

 

 

Cash flows from Financing Activities:

 

 

 

 

 

Borrowings from senior notes

 

 

115,000,000

 

Repayments from senior notes

 

 

(114,408,750

)

Borrowings from revolving credit facility II

 

25,000,000

 

 

Borrowings from revolving credit facility IV

 

4,000,000

 

 

Repurchase of common stock

 

(4,069,924

)

(25,035,094

)

Financing fees paid

 

(875,492

)

(3,624,555

)

Distributions paid to shareholders

 

(2,591,544

)

(2,739,906

)

Repurchases of common stock under dividend reinvestment plan

 

(88,694

)

(83,173

)

 

 

 

 

 

 

Net cash provided by (used in) financing activities

 

21,374,346

 

(30,891,478

)

 

 

 

 

 

 

Net change in cash, cash equivalents, and restricted cash for the period

 

344,652

 

(45,172,463

)

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash, beginning of period

 

$

15,887,700

 

$

106,674,568

 

 

 

 

 

 

 

Cash, cash equivalents, and restricted cash, end of period

 

$

16,232,352

 

$

61,502,105

 

 


(1) For the quarters ended January 31, 2019 and 2018, proceeds from equity investments includes $1,018,000 and $0 from escrow receivables, net of reserves, respectively.

 

During the quarters ended January 31, 2019 and 2018, MVC Capital, Inc. paid $1,796,875 and $2,718,599 in interest expense, respectively.

 

During the quarters ended January 31, 2019 and 2018, MVC Capital, Inc. paid $480 and $0 in income taxes, respectively.

 

Non-cash activity:

During the quarters ended January 31, 2019 and 2018, MVC Capital, Inc. recorded payment in-kind dividend and interest of $964,412 and $715,324, respectively. This amount was added to the principal balance of the investments and recorded as dividend/interest income.

 

During the quarters ended January 31, 2019 and 2018, the Plan Agent purchased 9,949 and 7,670 shares of common stock in the open market in order to satisfy the reinvestment portion of our dividends.

 

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.

 

Effective January 1, 2018, the cost basis of the U.S. Gas second lien loan was decreased by approximately $3.0 million due to a working capital adjustment, resulting in a realized loss of approximately $3.0 million.  The second lien loan is still subject to indemnification adjustments.

 

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

 

5


Table of Contents

 

MVC Capital, Inc.

Consolidated Statements of Changes in Net Assets

 

 

 

Common

 

Additional

 

Accumulated

 

Dividends Paid

 

Accumulated Net

 

Net Unrealized

 

Treasury

 

Total Net

 

For the Quarter Ended January 31, 2018 (Unaudited)

 

Stock

 

Paid-In-Capital

 

Earnings

 

to Stockholders

 

Realized Gain

 

Depreciation

 

Stock

 

Asset Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at October 31, 2017

 

$

283,044

 

$

418,208,458

 

$

122,455,573

 

$

(157,414,605

)

$

38,434,807

 

$

(70,965,264

)

$

(71,512,945

)

$

279,489,068

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) resulting from operations

 

 

 

(2,490,266

)

 

2,573

 

3,437,789

 

 

950,096

 

Distributions from Income

 

 

 

 

 

 

 

 

 

Distributions from return of capital

 

 

 

 

(2,823,079

)

 

 

 

(2,823,079

)

Issuance of common stock under dividend reinvestment plan

 

83,173

 

 

 

 

 

 

 

83,173

 

Repurchase of common stock under dividend reinvestment plan

 

(83,173

)

 

 

 

 

 

 

(83,173

)

Repurchase expenses

 

 

(35,105

)

 

 

 

 

 

(35,105

)

Repurchase of common stock

 

 

 

 

 

 

 

(24,999,989

)

(24,999,989

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at January 31, 2018

 

$

283,044

 

$

418,173,353

 

$

119,965,307

 

$

(160,237,684

)

$

38,437,380

 

$

(67,527,475

)

$

(96,512,934

)

$

252,580,991

 

 

For the Quarter Ended January 31, 2019 (Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at October 31, 2018

 

$

283,044

 

$

408,583,787

 

$

135,596,655

 

$

(168,616,544

)

$

38,778,647

 

$

(85,459,198

)

$

(102,442,945

)

$

226,723,446

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net increase (decrease) resulting from operations

 

 

 

1,446,575

 

 

5,226,126

 

(9,725,453

)

 

(3,052,752

)

Distributions from Income

 

 

 

 

(1,446,575

)

 

 

 

(1,446,575

)

Distributions from realized gains

 

 

 

 

(1,233,663

)

 

 

 

(1,233,663

)

Issuance of common stock under dividend reinvestment plan

 

88,694

 

 

 

 

 

 

 

88,694

 

Repurchase of common stock under dividend reinvestment plan

 

(88,694

)

 

 

 

 

 

 

(88,694

)

Repurchase of common stock

 

 

 

 

 

 

 

(4,069,924

)

(4,069,924

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balances at January 31, 2019

 

$

283,044

 

$

408,583,787

 

$

137,043,230

 

$

(171,296,782

)

$

44,004,773

 

$

(95,184,651

)

$

(106,512,869

)

$

216,920,532

 

 

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

 

6


Table of Contents

 

MVC Capital, Inc.

Consolidated Selected Per Share Data and Ratios

 

 

 

For the

 

For the

 

For the

 

 

 

Quarter Ended

 

Quarter Ended

 

Year Ended

 

 

 

January 31, 2019

 

January 31, 2018

 

October 31, 2018

 

 

 

(Unaudited)

 

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

Net asset value, beginning of period/year

 

$

12.46

 

$

13.24

 

$

13.24

 

 

 

 

 

 

 

 

 

Income from operations:

 

 

 

 

 

 

 

Net operating income (loss)

 

0.08

 

(0.12

)

0.20

 

Net realized and unrealized gain (loss) on investments

 

(0.25

)

0.17

 

(0.75

)

 

 

 

 

 

 

 

 

Total gain (loss) from investment operations

 

(0.17

)

0.05

 

(0.55

)

 

 

 

 

 

 

 

 

Less distributions from:

 

 

 

 

 

 

 

Income

 

(0.08

)

 

(0.02

)

Realized gain

 

(0.07

)

 

(0.13

)

Return of capital

 

 

(0.15

)

(0.45

)

 

 

 

 

 

 

 

 

Total distributions

 

(0.15

)

(0.15

)

(0.60

)

 

 

 

 

 

 

 

 

Capital share transactions

 

 

 

 

 

 

 

Anti-dilutive effect of share repurchase program

 

0.10

 

0.28

 

0.37

 

 

 

 

 

 

 

 

 

Total capital share transactions

 

0.10

 

0.28

 

0.37

 

 

 

 

 

 

 

 

 

Net asset value, end of period/year

 

$

12.24

 

$

13.42

 

$

12.46

 

 

 

 

 

 

 

 

 

Market value, end of period/year

 

$

9.18

 

$

10.50

 

$

9.05

 

 

 

 

 

 

 

 

 

Market discount

 

(25.00

)%

(21.76

)%

(27.37

)%

 

 

 

 

 

 

 

 

Total Return - At NAV (a)

 

(0.63

)%

2.49

%

(1.46

)%

 

 

 

 

 

 

 

 

Total Return - At Market (a)

 

3.09

%

(0.47

)%

(10.06

)%

 

 

 

 

 

 

 

 

Ratios and Supplemental Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Portfolio turnover ratio

 

2.37

%

1.07

%

7.21

%

 

 

 

 

 

 

 

 

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

 

$

216,921

 

$

252,581

 

$

226,723

 

 

 

 

 

 

 

 

 

Ratios to average net assets:

 

 

 

 

 

 

 

Expenses including tax expense

 

8.93

%(c)

11.39

%(c)

7.70

%

Expenses excluding tax expense

 

8.93

%(c)

11.39

%(c)

7.70

%

 

 

 

 

 

 

 

 

Net operating income (loss) before tax expense

 

2.59

%(c)

(3.71

)%(c)

1.51

%

Net operating income (loss) after tax expense 

 

2.59

%(c)

(3.71

)%(c)

1.51

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers:

 

 

 

 

 

 

 

Expenses including tax expense 

 

10.01

%(c)

11.97

%(c)

8.58

%

Expenses excluding tax expense 

 

10.01

%(c)

11.97

%(c)

8.57

%

 

 

 

 

 

 

 

 

Net operating income (loss) before tax expense

 

1.51

%(c)

(4.30

)%(c)

0.63

%

Net operating income (loss) after tax expense 

 

1.51

%(c)

(4.30

)%(c)

0.63

%

 


(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

 

8.93

%(c)

10.99

%(c)

8.53

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

4.49

%(c)

6.35

%(c)

4.20

%

 

 

 

 

 

 

 

 

Net operating income (loss) before incentive compensation

 

2.59

%(c)

(3.31

)%(c)

0.68

%

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

 

7.03

%(c)

1.33

%(c)

5.00

%

 

 

 

 

 

 

 

 

Ratios to average net assets excluding waivers: (b)

 

 

 

 

 

 

 

Expenses excluding incentive compensation

 

10.01

%(c)

11.57

%(c)

9.40

%

Expenses excluding incentive compensation, interest and other borrowing costs

 

5.57

%(c)

6.92

%(c)

5.08

%

 

 

 

 

 

 

 

 

Net operating income (loss) before incentive compensation

 

1.51

%(c)

(3.90

)%(c)

(0.20

)%

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

 

5.95

%(c)

0.75

%(c)

4.13

%

 

 

 

 

 

 

 

 

(c) Annualized.

 

 

 

 

 

 

 

 

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

 

7


Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments

January 31, 2019

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

Non-control/Non-affiliated investments- 89.01% (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

 

$

14,876,774

 

$

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)

 

6,184,473

 

6,082,653

 

6,184,473

 

 

 

 

 

Warrants (d, n)

 

1

 

 

 

 

 

 

 

 

 

 

 

6,082,653

 

6,184,473

 

Black Diamond Equipment Rentals, LLC

 

Equipment Rental

 

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

 

7,500,000

 

7,083,341

 

7,575,000

 

 

 

 

 

Warrants (d, n)

 

1

 

400,847

 

790,000

 

 

 

 

 

 

 

 

 

7,484,188

 

8,365,000

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings and Forgings

 

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

 

3,533,055

 

3,241,866

 

3,462,565

 

 

 

 

 

Second Lien Loan 11.0000% Cash, 12/23/2019 (k, n)

 

2,000,000

 

2,000,000

 

1,996,599

 

 

 

 

 

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

 

 

 

3,249,759

 

3,860,886

 

 

 

 

 

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

 

 

 

5,879,504

 

6,813,576

 

 

 

 

 

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

 

 

 

17,935,482

 

15,667,930

 

 

 

 

 

 

 

 

 

32,306,611

 

31,801,556

 

Dukane IAS,LLC

 

Welding Equipment Manufacturer

 

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

 

4,405,139

 

4,352,205

 

4,449,193

 

Essner Manufacturing, LP

 

Defense/Aerospace Parts Manufacturing

 

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

 

3,666,700

 

3,609,725

 

3,646,044

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

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

 

 

 

15,000,000

 

5,025,000

 

GTM Intermediate Holdings, Inc.

 

Medical Equipment/Manufacturer

 

Second Lien Loan 11.0000% Cash, 1.0000% PIK, 6/7/2024 (b ,k, n)

 

1,541,070

 

1,511,128

 

1,541,070

 

 

 

 

 

Common Stock (1 share) (d, n, t)

 

 

 

346,000

 

346,000

 

 

 

 

 

 

 

 

 

1,857,128

 

1,887,070

 

Highpoint Global LLC

 

Government Services

 

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

 

5,123,138

 

5,049,082

 

5,174,361

 

HTI Technologies and Industries, Inc.

 

Electronic Component Manufacturing

 

Second Lien Note 12.0000% Cash, 3.5000% PIK, 11/30/2019 (b, k, n)

 

10,134,753

 

10,134,753

 

10,022,766

 

Initials, Inc.

 

Consumer Products

 

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

 

5,642,913

 

5,642,913

 

2,263,837

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 03/18/2020 (b, k, n)

 

11,900,121

 

11,900,121

 

11,900,121

 

Morey’s Seafood International, LLC

 

Food Services

 

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

 

16,618,259

 

16,618,259

 

16,618,259

 

Tin Roof Software, LLC

 

Software

 

Second Lien Loan 11.0000% Cash, 3.5000% PIK, 04/01/2024 (b, k, n)

 

3,783,275

 

3,712,819

 

3,783,275

 

Trientis GmbH

 

Environmental Services

 

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

 

1,248,633

 

1,248,633

 

307,498

 

 

 

 

 

Warrants (d, e, r, n)

 

1

 

67,715

 

 

 

 

 

 

 

 

 

 

1,316,348

 

307,498

 

Tuf-Tug Inc.

 

Safety Equipment Manufacturer

 

Second Lien Loan 11.0000% Cash, 2.0000% PIK, 02/24/2024 (b, k, n)

 

4,910,307

 

4,865,419

 

4,910,307

 

 

 

 

 

Common Stock (24.6 shares) (d, n, s)

 

 

 

750,000

 

750,000

 

 

 

 

 

 

 

 

 

5,615,419

 

5,660,307

 

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

 

7,311,267

 

 

 

 

 

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

 

1,190,000

 

1,190,000

 

1,137,410

 

 

 

 

 

 

 

 

 

8,907,056

 

8,448,677

 

U.S. Gas & Electric, Inc.

 

Energy Services

 

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

 

37,527,881

 

37,527,881

 

38,676,906

 

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, 04/30/2021 (k, n)

 

1,500,000

 

1,500,000

 

1,500,000

 

 

 

 

 

Senior Secured Loan 12.0000% Cash, 04/30/2021 (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

 

5,495,909

 

5,476,569

 

Sub Total Non-control/Non-affiliated investments

 

 

 

 

 

 

 

$

205,977,844

 

$

193,090,912

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate investments - 31.00% (c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Advantage Insurance, Inc.

 

Insurance

 

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

 

 

 

7,500,000

 

8,590,882

 

Crius Energy Trust

 

Energy Services

 

Equity Unit (3,282,882 shares) (e)

 

 

 

25,864,439

 

13,176,280

 

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

 

4,161,000

 

 

 

 

 

 

 

 

 

11,814,688

 

4,161,000

 

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

 

 

 

 

 

 

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

 

 

 

6,138,038

 

 

 

 

 

 

 

 

 

 

13,007,391

 

 

Security Holdings B.V.

 

Electrical Engineering

 

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

 

 

 

51,204,270

 

31,262,000

 

 

 

 

 

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

 

4,937,218

 

4,937,218

 

4,937,218

 

 

 

 

 

Senior Subordinated Loan 12.4500% PIK, 05/31/2020 (a, b, e, k, n)

 

5,124,494

 

5,124,494

 

5,124,494

 

 

 

 

 

 

 

 

 

61,265,982

 

41,323,712

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Affiliate investments

 

 

 

 

 

 

 

$

119,452,500

 

$

67,251,874

 

 

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

 

8


Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments - (Continued)

January 31, 2019

(Unaudited)

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

Control investments - 25.73% (c, f, g)

 

 

 

 

 

 

 

 

 

 

 

Equus Total Return, Inc.

 

Registered Investment Company

 

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

 

 

 

$

10,030,272

 

$

8,711,502

 

MVC Automotive Group GmbH

 

Automotive Dealerships

 

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

 

 

 

51,185,015

 

18,784,000

 

 

 

 

 

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

 

$

7,149,166

 

7,149,166

 

7,149,166

 

 

 

 

 

 

 

 

 

58,334,181

 

25,933,166

 

MVC Private Equity Fund LP

 

Private Equity

 

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

 

 

 

9,034,881

 

11,277,503

 

 

 

 

 

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

 

 

 

230,481

 

287,691

 

 

 

 

 

 

 

 

 

9,265,362

 

11,565,194

 

RuMe Inc.

 

Consumer Products

 

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

 

 

 

924,475

 

 

 

 

 

 

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

 

 

 

3,410,694

 

3,401,486

 

 

 

 

 

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

 

 

 

999,815

 

1,351,650

 

 

 

 

 

Subordinated Debt 10.0000% PIK, 3/31/2020 (a, b, k, n)

 

3,353,330

 

3,353,330

 

3,353,330

 

 

 

 

 

Revolver 10.0000% PIK, 3/31/2020 (a, b, k, n)

 

1,492,913

 

1,492,913

 

1,492,913

 

 

 

 

 

Warrants (a, d, n)

 

2

 

336,393

 

 

 

 

 

 

 

 

 

 

10,517,620

 

9,599,379

 

 

 

 

 

 

 

 

 

 

 

 

 

Sub Total Control investments

 

 

 

 

 

 

 

$

88,147,435

 

$

55,809,241

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL PORTFOLIO INVESTMENTS - 145.74% (f)

 

 

 

 

 

 

 

$

413,577,779

 

$

316,152,027

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Obligations - 11.55% (f, g)

 

 

 

 

 

 

 

 

 

 

 

U.S. Treasury Bill

 

U.S. Government Securities

 

2.500% Cash, 01/31/2024 (u)

 

$

24,970,000

 

$

24,996,322

 

$

25,043,154

 

Sub Total Short-Term Investments

 

 

 

 

 

 

 

24,996,322

 

25,043,154

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash equivalents - 0.20% (f, g)

 

 

 

 

 

 

 

 

 

 

 

Fidelity Institutional Government Money Market Fund

 

Money Market Fund

 

Beneficial Shares (330,012 shares)

 

 

 

$

330,012

 

$

330,012

 

Morgan Stanley Institutional Liquidity Government Portfolio

 

Money Market Fund

 

Beneficial Shares (97,516 shares)

 

 

 

97,516

 

97,516

 

Total Cash equivalents

 

 

 

 

 

 

 

427,528

 

427,528

 

 

 

 

 

 

 

 

 

 

 

 

 

TOTAL INVESTMENT ASSETS - 157.49%

 

 

 

 

 

 

 

$

439,001,629

 

$

341,622,709

 

 


(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., Trientis GmbH, JSC Tekers Holdings, 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 26% of the total assets.  The remaining portfolio companies are located in United States which represents approximately 61% of the total assets.

 

(f) Percentages are based on net assets of $216,920,532 as of January 31, 2019.

 

(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 three investments, two located in the United States and one in Gibraltar, the investments are in the services, contract manufacturing, and industrial sectors.  The Company’s proportional share of Gibdock Limited equity interest and loan, Advanced Oil Field Services, LLC common stock, preferred stock, and loan and Focus Pointe preferred stock is $4,577,362, $3,594,681 and $2,448,891, 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 People’s United credit facility.

 

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

 

(m) Cash/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 Funded Debt to EBITDA.  4% PIK initially.

 

(q) 10% Cash and 4% PIK beginning January 1, 2019.

 

(r) During the fiscal year ended October 31, 2018, all assets and liabilities of SGDA Europe were transferred to a new Austrian holding company, Trientis GmbH, to achieve operating efficiencies.

 

(s) Shares of Tuf-Tug, Inc. are held via Alitus T-T, LP.

 

(t) Shares of GTM Intermediate Holdings, Inc. are held via GTM Ultimate Holdings, LLC.

 

(u) Serves as collateral for the BB&T credit facility.

 

PIK - Payment-in-kind

 

- Denotes zero cost or fair value.

 

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

 

9


Table of Contents

 

MVC Capital, Inc.

Consolidated Schedule of Investments

October 31, 2018

 

Company

 

Industry

 

Investment

 

Principal

 

Cost

 

Fair Value/Market
Value

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-control/Non-affiliated investments- 83.33% (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

 

$

14,869,274

 

$

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)

 

6,121,682

 

6,014,408

 

6,121,682

 

 

 

 

 

Warrants (d, n)

 

1

 

 

 

 

 

 

 

 

 

 

 

6,014,408

 

6,121,682

 

Black Diamond Equipment Rentals, LLC

 

Equipment Rental

 

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

 

7,500,000

 

7,052,478

 

7,174,342

 

 

 

 

 

Warrants (d, n)

 

1

 

400,847

 

400,847

 

 

 

 

 

 

 

 

 

7,453,325

 

7,575,189

 

Custom Alloy Corporation

 

Manufacturer of Pipe Fittings and Forgings

 

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

 

3,533,055

 

3,203,755

 

3,479,582

 

 

 

 

 

First Lien Loan 10.0000% Cash, 10/31/2018 (k, n)

 

538,913

 

538,913

 

538,913

 

 

 

 

 

Second Lien Loan 15.0000% Cash, 10/31/2021 (k, n)

 

1,404,500

 

1,404,500

 

1,404,500

 

 

 

 

 

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

 

 

 

3,000,000

 

3,683,908

 

 

 

 

 

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

 

 

 

5,683,254

 

6,410,727

 

 

 

 

 

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

 

 

 

17,935,482

 

13,914,992

 

 

 

 

 

 

 

 

 

31,765,904

 

29,432,622

 

Dukane IAS,LLC

 

Welding Equipment Manufacturer

 

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

 

4,377,174

 

4,316,872

 

4,420,942

 

Essner Manufacturing, LP

 

Defense/Aerospace Parts Manufacturing

 

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

 

3,666,700

 

3,606,059

 

3,666,700

 

FOLIOfn, Inc.

 

Technology Investment - Financial Services

 

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

 

 

 

15,000,000

 

4,993,000

 

Highpoint Global LLC

 

Government Services

 

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

 

5,097,086

 

5,017,981

 

5,148,057

 

HTI Technologies and Industries, Inc.

 

Electronic Component Manufacturing

 

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

 

10,079,874

 

10,079,874

 

9,887,754

 

Initials, Inc.

 

Consumer Products

 

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

 

5,642,913

 

5,642,913

 

2,675,452

 

Legal Solutions Holdings, Inc.

 

Business Services

 

Senior Subordinated Debt 12.0000% Cash, 3.0000% PIK, 03/18/2020 (b, k, n)

 

11,809,381

 

11,809,381

 

11,927,474

 

Morey’s Seafood International, LLC

 

Food Services

 

Second Lien Loan 10.0000% Cash, 3.0000% PIK, 08/12/2022 (b, k, n, q)

 

16,493,186

 

16,493,186

 

16,493,186

 

Tin Roof Software, LLC

 

Software

 

Second Lien Loan 11.0000% Cash, 3.5000% PIK, 04/01/2024 (b, k, n)

 

3,750,000

 

3,676,136

 

3,750,000

 

Trientis GmbH

 

Environmental Services

 

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

 

1,248,632

 

1,248,632

 

384,520

 

 

 

 

 

Warrants (d, o, r, n)

 

1

 

67,715

 

 

 

 

 

 

 

 

 

 

1,316,347

 

384,520

 

Tuf-Tug Inc.

 

Safety Equipment Manufacturer

 

Second Lien Loan 11.0000% Cash, 2.0000% PIK, 02/24/2024 (b, k, n)

 

4,885,295

 

4,838,190

 

4,885,295

 

 

 

 

 

Common Stock (24.6 shares) (d, n, s)

 

 

 

750,000

 

750,000

 

 

 

 

 

 

 

 

 

5,588,190

 

5,635,295

 

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

 

7,296,363

 

 

 

 

 

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

 

1,190,000

 

1,190,000

 

1,137,399

 

 

 

 

 

 

 

 

 

8,907,056

 

8,433,762

 

U.S. Gas & Electric, Inc.

 

Energy Services

 

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

 

37,527,881

 

37,527,881

 

39,474,198

 

U.S. Spray Drying Holding Company

 

Specialty Chemicals

 

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

 

 

 

5,488,000

 

5,400,000