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Share Name | Share Symbol | Market | Type |
---|---|---|---|
OFS Capital Corporation | NASDAQ:OFS | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.01 | 0.11% | 8.85 | 8.70 | 9.52 | 8.87 | 8.80 | 8.80 | 22,305 | 01:00:00 |
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ý
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Delaware
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46-1339639
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State or Other Jurisdiction of
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I.R.S. Employer Identification No.
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Incorporation or Organization
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10 S. Wacker Drive, Suite 2500, Chicago, Illinois
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60606
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Address of Principal Executive Offices
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Zip Code
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(847) 734-2000
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Registrant’s Telephone Number, Including Area Code
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Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
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Large accelerated filer
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¨
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Accelerated filer
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ý
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Non-accelerated filer
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¨
(do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
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¨
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Item 1.
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Item 2.
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Item 3.
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Item 4.
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Item 1.
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Item 1A.
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Item 2
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Item 3.
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Item 4.
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Item 5.
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Item 6.
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Term
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Explanation or Definition
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1940 Act
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Investment Company Act of 1940, as amended
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Administration Agreement
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Administration Agreement between the Company and OFS Services dated November 7, 2012
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Annual Distribution Requirement
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Distributions to our stockholders, for each taxable year, of at least 90% of our ICTI
|
ASC
|
Accounting Standards Codification, as issued by the FASB
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ASU
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Accounting Standards Updates, as issued by the FASB
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BDC
|
Business Development Company under the 1940 Act
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BLA
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Business Loan Agreement, as amended, with Pacific Western Bank, as lender, which provides the Company with a senior secured revolving credit facility
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Board
|
The Company's board of directors
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CLO
|
Collateralized loan obligation funds
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Code
|
Internal Revenue Code of 1986, as amended
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DRIP
|
Distribution reinvestment plan
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EBITDA
|
Earnings before interest, taxes, depreciation, and amortization
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Exchange Act
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Securities Exchange Act of 1934, as amended
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FASB
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Financial Accounting Standards Board
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GAAP
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Accounting principles generally accepted in the United States
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HPCI
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Hancock Park Corporate Income, Inc., a Maryland corporation and non-traded BDC for whom OFS Advisor serves as investment adviser
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ICTI
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Investment company taxable income, which is generally net ordinary income plus net short-term capital gains in excess of net long-term capital losses
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Investment Advisory Agreement
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Investment Advisory and Management Agreement between the Company and OFS Advisor dated November 7, 2012
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IPO
|
Initial Public Offering
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LIBOR
|
London Interbank Offered Rate
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Net Loan Fees
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The cumulative amount of fees, such as discounts, premiums and amendment fees that are deferred and recognized as income over the life of the loan.
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Offering
|
The April 2017 follow-on public offering 3,625,000 shares of our common stock at an offering price of $14.57 per share.
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OFS Advisor
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OFS Capital Management, LLC, a wholly owned subsidiary of OFSAM and registered investment advisor under the 1940 Act
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OFS Capital WM
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OFS Capital WM, LLC, a wholly owned investment company subsidiary
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OFS Services
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OFS Capital Services, LLC, a wholly owned subsidiary of OFSAM and affiliate of OFS Advisor
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OFSAM
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Orchard First Source Asset Management, LLC, a full-service provider of capital and leveraged finance solutions to U.S. corporations
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PIK
|
Payment-in-kind, non-cash interest or dividends payable as an addition to the loan or equity security producing the income.
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Prime Rate
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United States Prime interest rate
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PWB Credit Facility
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Senior secured revolving credit facility between the Company and Pacific Western Bank, as lender
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RIC
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Regulated investment company under the Code
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SBA
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U.S. Small Business Administration
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SBCAA
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Small Business Credit Availability Act
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SBIC
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A fund licensed under the SBA small business investment company program
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Term
|
Explanation or Definition
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SBIC Acquisition
|
The Company's acquisition of the remaining ownership interests in SBIC I LP and OFS SBIC I GP, LLC on December 4, 2013
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SBIC Act
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Small Business Investment Act of 1958
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SBIC I LP
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OFS SBIC I, LP, a wholly owned SBIC subsidiary of the Company
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SEC
|
U.S. Securities and Exchange Commission
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Securities Act
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Securities Act of 1933, as amended
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Stock Repurchase Program
|
The open market stock repurchase program for shares of the Company’s common stock under Rule 10b-18 of the Exchange Act
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Unsecured Notes
|
The Company’s $50.0 million aggregate principal amount of 6.375% notes due April 30, 2025
|
•
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our ability and experience operating a BDC or an SBIC, or maintaining our tax treatment as a RIC under Subchapter M of the Code;
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•
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our dependence on key personnel;
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•
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our ability to maintain or develop referral relationships;
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•
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our ability to replicate historical results;
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•
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the ability of OFS Advisor to identify, invest in and monitor companies that meet our investment criteria;
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•
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actual and potential conflicts of interest with OFS Advisor and other affiliates of OFSAM;
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•
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constraint on investment due to access to material nonpublic information;
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•
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restrictions on our ability to enter into transactions with our affiliates;
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•
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limitations on the amount of SBA-guaranteed debentures that may be issued by an SBIC;
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•
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our ability to comply with SBA regulations and requirements;
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•
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the use of borrowed money to finance a portion of our investments;
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•
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competition for investment opportunities;
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•
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the ability of SBIC I LP and any other portfolio companies to make distributions enabling us to meet RIC requirements;
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•
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our ability to raise debt or equity capital as a BDC;
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•
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the timing, form and amount of any distributions from our portfolio companies;
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•
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the impact of a protracted decline in the liquidity of credit markets on our business;
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•
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the general economy and its impact on the industries in which we invest;
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•
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uncertain valuations of our portfolio investments; and
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•
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the effect of new or modified laws or regulations governing our operations, including the ability to incur additional leverage under the Small Business Credit Availability Act.
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June 30,
2018 |
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December 31,
2017 |
||||
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(unaudited)
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||||
Assets
|
|
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Investments, at fair value:
|
|
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Non-control/non-affiliate investments (amortized cost of $249,111 and $209,360, respectively)
|
$
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241,071
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$
|
197,374
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Affiliate investments (amortized cost of $106,689 and $70,402, respectively)
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111,017
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69,557
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||
Control investments (amortized cost of $10,275 and $10,213, respectively)
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10,744
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10,568
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Total investments at fair value (amortized cost of $366,075 and $289,975, respectively)
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362,832
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277,499
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Cash and cash equivalents
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22,665
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72,952
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Interest receivable
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2,919
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2,734
|
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Prepaid expenses and other assets
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4,257
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|
|
4,593
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Total assets
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$
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392,673
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$
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357,778
|
|
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|
|
|
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Liabilities
|
|
|
|
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Revolving line of credit
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$
|
8,000
|
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$
|
17,600
|
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SBA debentures (net of deferred debt issuance costs of $2,470 and $2,657, respectively)
|
147,410
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147,223
|
|
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Unsecured notes (net of deferred debt issuance costs of $1,701 and $0, respectively)
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48,299
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|
|
—
|
|
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Interest payable
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2,260
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|
1,596
|
|
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Management and incentive fees payable
|
2,683
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|
|
1,987
|
|
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Administration fee payable
|
478
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|
476
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Accrued professional fees
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444
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|
433
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Other liabilities
|
170
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|
|
127
|
|
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Total liabilities
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209,744
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|
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169,442
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||
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|
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Commitments and contingencies (Note 6)
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|
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Net assets
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|
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|
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Preferred stock, par value of $0.01 per share, 2,000,000 shares authorized, -0- shares issued and outstanding as of June 30, 2018, and December 31, 2017, respectively
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$
|
—
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$
|
—
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Common stock, par value of $0.01 per share, 100,000,000 shares authorized, 13,350,458 and 13,340,217 shares issued and outstanding as of June 30, 2018, and December 31, 2017, respectively
|
134
|
|
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133
|
|
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Paid-in capital in excess of par
|
187,549
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|
187,398
|
|
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Accumulated undistributed net investment income
|
7,088
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|
|
9,404
|
|
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Accumulated undistributed net realized gain (loss)
|
(8,497
|
)
|
|
3,881
|
|
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Net unrealized depreciation on investments
|
(3,345
|
)
|
|
(12,480
|
)
|
||
Total net assets
|
182,929
|
|
|
188,336
|
|
||
|
|
|
|
|
|
||
Total liabilities and net assets
|
$
|
392,673
|
|
|
$
|
357,778
|
|
|
|
|
|
|
|
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Number of shares outstanding
|
13,350,458
|
|
|
13,340,217
|
|
||
Net asset value per share
|
$
|
13.70
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$
|
14.12
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|
|
Three Months Ended June 30,
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Six Months Ended June 30,
|
||||||||||||
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2018
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2017
|
|
2018
|
|
2017
|
||||||||
Investment income
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-control/non-affiliate investments
|
$
|
6,326
|
|
|
$
|
4,446
|
|
|
$
|
12,084
|
|
|
$
|
9,058
|
|
Affiliate investments
|
2,768
|
|
|
1,646
|
|
|
4,853
|
|
|
3,477
|
|
||||
Control investment
|
250
|
|
|
542
|
|
|
489
|
|
|
1,066
|
|
||||
Total interest income
|
9,344
|
|
|
6,634
|
|
|
17,426
|
|
|
13,601
|
|
||||
Payment-in-kind interest and dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-control/non-affiliate investments
|
122
|
|
|
319
|
|
|
346
|
|
|
626
|
|
||||
Affiliate investments
|
285
|
|
|
374
|
|
|
746
|
|
|
726
|
|
||||
Control investment
|
27
|
|
|
39
|
|
|
54
|
|
|
77
|
|
||||
Total payment-in-kind interest and dividend income
|
434
|
|
|
732
|
|
|
1,146
|
|
|
1,429
|
|
||||
Dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-control/non-affiliate investments
|
—
|
|
|
45
|
|
|
—
|
|
|
50
|
|
||||
Affiliate investments
|
—
|
|
|
—
|
|
|
130
|
|
|
85
|
|
||||
Control investments
|
94
|
|
|
137
|
|
|
127
|
|
|
170
|
|
||||
Total dividend income
|
94
|
|
|
182
|
|
|
257
|
|
|
305
|
|
||||
Fee income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-control/non-affiliate investments
|
387
|
|
|
169
|
|
|
413
|
|
|
325
|
|
||||
Affiliate investments
|
3
|
|
|
176
|
|
|
5
|
|
|
234
|
|
||||
Control investments
|
16
|
|
|
85
|
|
|
34
|
|
|
118
|
|
||||
Total fee income
|
406
|
|
|
430
|
|
|
452
|
|
|
677
|
|
||||
Total investment income
|
10,278
|
|
|
7,978
|
|
|
19,281
|
|
|
16,012
|
|
||||
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense
|
2,169
|
|
|
1,339
|
|
|
3,803
|
|
|
2,726
|
|
||||
Management fee
|
1,548
|
|
|
1,224
|
|
|
2,908
|
|
|
2,416
|
|
||||
Incentive fee
|
1,135
|
|
|
(22
|
)
|
|
1,872
|
|
|
1,159
|
|
||||
Professional fees
|
200
|
|
|
293
|
|
|
401
|
|
|
556
|
|
||||
Administration fee
|
358
|
|
|
307
|
|
|
941
|
|
|
708
|
|
||||
Other expenses
|
310
|
|
|
521
|
|
|
1,005
|
|
|
791
|
|
||||
Total expenses before incentive fee waiver
|
5,720
|
|
|
3,662
|
|
|
10,929
|
|
|
8,356
|
|
||||
Incentive fee waiver (see Note 3)
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
||||
Total expenses, net of incentive fee waiver
|
5,720
|
|
|
3,662
|
|
|
10,907
|
|
|
8,356
|
|
||||
Net investment income
|
4,558
|
|
|
4,316
|
|
|
8,374
|
|
|
7,656
|
|
||||
Net realized and unrealized gain (loss) on investments
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) on non-control/non-affiliate investments
|
(5,464
|
)
|
|
163
|
|
|
(5,003
|
)
|
|
163
|
|
||||
Net realized gain (loss) on affiliate investments
|
(3,477
|
)
|
|
874
|
|
|
(4,018
|
)
|
|
874
|
|
||||
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments
|
5,411
|
|
|
(5,505
|
)
|
|
3,848
|
|
|
(8,546
|
)
|
||||
Net unrealized appreciation (depreciation) on affiliate investments
|
3,928
|
|
|
(3,366
|
)
|
|
5,173
|
|
|
658
|
|
||||
Net unrealized appreciation on control investment
|
39
|
|
|
1,237
|
|
|
114
|
|
|
1,780
|
|
||||
Net gain (loss) on investments
|
437
|
|
|
(6,597
|
)
|
|
114
|
|
|
(5,071
|
)
|
||||
Net increase (decrease) in net assets resulting from operations
|
$
|
4,995
|
|
|
$
|
(2,281
|
)
|
|
$
|
8,488
|
|
|
$
|
2,585
|
|
Net investment income per common share – basic and diluted
|
$
|
0.34
|
|
|
$
|
0.33
|
|
|
$
|
0.63
|
|
|
$
|
0.67
|
|
Net increase (decrease) in net assets resulting from operations per common share – basic and diluted
|
$
|
0.37
|
|
|
$
|
(0.17
|
)
|
|
$
|
0.64
|
|
|
$
|
0.23
|
|
Distributions declared per common share
|
$
|
0.34
|
|
|
$
|
0.34
|
|
|
$
|
1.05
|
|
|
$
|
0.68
|
|
Basic and diluted weighted average shares outstanding
|
13,348,793
|
|
|
13,197,759
|
|
|
13,344,670
|
|
|
11,458,706
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Increase in net assets resulting from operations:
|
|
|
|
||||
Net investment income
|
$
|
8,374
|
|
|
$
|
7,656
|
|
Net realized gain (loss) on investments
|
(9,021
|
)
|
|
1,037
|
|
||
Net unrealized appreciation (depreciation) on investments
|
9,135
|
|
|
(6,108
|
)
|
||
Net increase in net assets resulting from operations
|
8,488
|
|
|
2,585
|
|
||
|
|
|
|
||||
Distributions to stockholders from:
|
|
|
|
|
|
||
Accumulated net investment income
|
(9,075
|
)
|
|
(7,830
|
)
|
||
Accumulated net realized gain (loss)
|
(4,936
|
)
|
|
—
|
|
||
Total distributions to stockholders
|
(14,011
|
)
|
|
(7,830
|
)
|
||
|
|
|
|
||||
Common stock transactions:
|
|
|
|
|
|
||
Public offering of common stock, net of expenses
|
—
|
|
|
53,373
|
|
||
Reinvestment of stockholder distributions
|
116
|
|
|
90
|
|
||
Net increase in net assets resulting from capital transactions
|
116
|
|
|
53,463
|
|
||
|
|
|
|
||||
Net increase (decrease) in net assets
|
(5,407
|
)
|
|
48,218
|
|
||
|
|
|
|
||||
Net assets:
|
|
|
|
|
|
||
Beginning of period
|
188,336
|
|
|
143,778
|
|
||
End of period
|
$
|
182,929
|
|
|
$
|
191,996
|
|
|
|
|
|
||||
Accumulated undistributed net investment income
|
$
|
7,088
|
|
|
$
|
6,888
|
|
|
|
|
|
||||
Common stock activity:
|
|
|
|
|
|
||
Common stock issued from reinvestment of stockholder distributions
|
10,241
|
|
|
6,358
|
|
||
Common stock issued and outstanding at beginning of period
|
13,340,217
|
|
|
9,700,297
|
|
||
Common stock issued and outstanding at end of period
|
13,350,458
|
|
|
13,331,655
|
|
|
Six Months Ended June 30,
|
||||||
|
2018
|
|
2017
|
||||
Cash flows from operating activities
|
|
|
|
||||
Net increase in net assets resulting from operations
|
$
|
8,488
|
|
|
$
|
2,585
|
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash used in operating activities:
|
|
|
|
|
|
||
Net realized loss (gain) on investments
|
9,021
|
|
|
(1,037
|
)
|
||
Net unrealized depreciation (appreciation) on investments
|
(9,135
|
)
|
|
6,108
|
|
||
Amortization of Net Loan Fees
|
(583
|
)
|
|
(669
|
)
|
||
Payment-in-kind interest and dividend income
|
(1,146
|
)
|
|
(1,428
|
)
|
||
Amortization of deferred debt issuance costs
|
332
|
|
|
260
|
|
||
Amortization of intangible asset
|
98
|
|
|
98
|
|
||
Purchase and origination of portfolio investments
|
(145,213
|
)
|
|
(72,219
|
)
|
||
Proceeds from principal payments on portfolio investments
|
19,161
|
|
|
51,409
|
|
||
Proceeds from sale or redemption of portfolio investments
|
42,657
|
|
|
2,400
|
|
||
Changes in other operating assets and liabilities:
|
|
|
|
|
|||
Interest receivable
|
(185
|
)
|
|
520
|
|
||
Interest payable
|
664
|
|
|
(3
|
)
|
||
Management and incentive fees payable
|
696
|
|
|
(635
|
)
|
||
Administration fee payable
|
2
|
|
|
(66
|
)
|
||
Other assets and liabilities
|
277
|
|
|
(297
|
)
|
||
Net cash provided used in operating activities
|
(74,866
|
)
|
|
(12,947
|
)
|
||
|
|
|
|
||||
Cash flows from financing activities
|
|
|
|
||||
Proceeds from common stock offering, net of expenses
|
—
|
|
|
53,448
|
|
||
Distributions paid to stockholders
|
(13,895
|
)
|
|
(7,740
|
)
|
||
Borrowings under revolving line of credit
|
54,250
|
|
|
11,000
|
|
||
Repayments under revolving line of credit
|
(63,850
|
)
|
|
(14,500
|
)
|
||
Issuance of unsecured notes
|
48,247
|
|
|
—
|
|
||
Other financing activities
|
(173
|
)
|
|
—
|
|
||
Net cash provided by financing activities
|
24,579
|
|
|
42,208
|
|
||
Net increase (decrease) in cash and cash equivalents
|
(50,287
|
)
|
|
29,261
|
|
||
Cash and cash equivalents — beginning of period
|
72,952
|
|
|
17,659
|
|
||
Cash and cash equivalents — end of period
|
$
|
22,665
|
|
|
$
|
46,920
|
|
|
|
|
|
||||
Supplemental Disclosure of Cash Flow Information:
|
|
|
|
||||
Cash paid for interest
|
$
|
2,807
|
|
|
$
|
2,469
|
|
Distributions paid by issuance of common stock
|
116
|
|
|
90
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
Non-control/Non-affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Armor Holdings II LLC
|
|
Other Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
11.10%
|
|
(L +9.00%)
|
|
7/20/2016
|
|
12/26/2020
|
|
$
|
3,500
|
|
|
$
|
3,480
|
|
|
$
|
3,500
|
|
|
1.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Baymark Health Services, Inc.
|
|
Outpatient Mental Health & Sub. Abuse Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.57%
|
|
(L +8.25%)
|
|
3/22/2018
|
|
3/1/2025
|
|
4,000
|
|
|
3,962
|
|
|
3,979
|
|
|
2.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Carolina Lubes, Inc. (4)
|
|
Automotive Oil Change and Lubrication Shops
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan (8)
|
|
|
|
10.21%
|
|
(L +7.90%)
|
|
8/23/2017
|
|
8/23/2022
|
|
21,125
|
|
|
20,970
|
|
|
21,423
|
|
|
11.7
|
|
|||
Senior Secured Loan (Revolver)
|
|
|
|
9.56%
|
|
(L +7.25%)
|
|
8/23/2017
|
|
8/23/2022
|
|
1,363
|
|
|
1,350
|
|
|
1,363
|
|
|
0.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
22,488
|
|
|
22,320
|
|
|
22,786
|
|
|
12.4
|
|
|||
Cirrus Medical Staffing, Inc. (4)
|
|
Temporary Help Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.58%
|
|
(L +8.25%)
|
|
3/5/2018
|
|
10/19/2022
|
|
7,729
|
|
|
7,657
|
|
|
7,668
|
|
|
4.2
|
|
|||
Senior Secured Loan (Revolver)
|
|
|
|
10.58%
|
|
(L +8.25%)
|
|
3/5/2018
|
|
10/19/2022
|
|
128
|
|
|
128
|
|
|
117
|
|
|
0.1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
7,857
|
|
|
7,785
|
|
|
7,785
|
|
|
4.3
|
|
|||
Community Intervention Services, Inc. (4)
|
|
Outpatient Mental Health and Substance Abuse Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (6) (10) (11)
|
|
|
|
7.0% cash / 6.0% PIK
|
|
N/A
|
|
7/16/2015
|
|
1/16/2021
|
|
8,789
|
|
|
7,639
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Confie Seguros Holdings II Co.
|
|
Insurance Agencies and Brokerages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
11.81%
|
|
(L +9.50%)
|
|
7/7/2015
|
|
5/8/2019
|
|
9,678
|
|
|
9,615
|
|
|
9,473
|
|
|
5.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Constellis Holdings, LLC
|
|
Other Justice, Public Order, and Safety Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
11.33%
|
|
(L +9.00%)
|
|
4/28/2017
|
|
4/21/2025
|
|
9,950
|
|
|
9,823
|
|
|
10,050
|
|
|
5.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
DuPage Medical Group
|
|
Offices of Physicians, Mental Health Specialists
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
9.09%
|
|
(L +7.00%)
|
|
8/22/2017
|
|
8/15/2025
|
|
7,098
|
|
|
7,176
|
|
|
7,134
|
|
|
3.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
Eblens Holdings, Inc.
|
|
Shoe Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (11)
|
|
|
|
12.0% cash / 1.0% PIK
|
|
N/A
|
|
7/13/2017
|
|
1/13/2023
|
|
$
|
8,874
|
|
|
$
|
8,802
|
|
|
$
|
8,728
|
|
|
4.8
|
%
|
Common Equity (71,250 Class A units) (10)
|
|
|
|
|
|
|
|
7/13/2017
|
|
|
|
|
|
|
713
|
|
|
1,029
|
|
|
0.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
8,874
|
|
|
9,515
|
|
|
9,757
|
|
|
5.4
|
|
|||
Elgin Fasteners Group
|
|
Bolt, Nut, Screw, Rivet, and Washer Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
9.08%
|
|
(L +6.75%)
|
|
10/31/2011
|
|
8/27/2018
|
|
3,753
|
|
|
3,744
|
|
|
3,489
|
|
|
1.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
GGC Aerospace Topco L.P.
|
|
Other Aircraft Parts and Auxiliary Equipment Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
11.05%
|
|
(L +8.75%)
|
|
12/29/2017
|
|
9/8/2024
|
|
5,000
|
|
|
4,884
|
|
|
4,936
|
|
|
2.7
|
|
|||
Common Equity (368,852 Class A units) (10)
|
|
|
|
|
|
|
|
12/29/2017
|
|
|
|
|
|
|
450
|
|
|
368
|
|
|
0.2
|
|
|||
Common Equity (40,984 Class B units) (10)
|
|
|
|
|
|
|
|
12/29/2017
|
|
|
|
|
|
|
50
|
|
|
15
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
5,384
|
|
|
5,319
|
|
|
2.9
|
|
|||
LRI Holding, LLC (4)
|
|
Electrical Contractors and Other Wiring Installation Contractors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
11.59%
|
|
(L +9.25%)
|
|
6/30/2017
|
|
6/30/2022
|
|
17,806
|
|
|
17,682
|
|
|
17,675
|
|
|
9.7
|
|
|||
Preferred Equity (238,095 Series B units) (10)
|
|
|
|
|
|
|
|
6/30/2017
|
|
|
|
|
|
300
|
|
|
300
|
|
|
0.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
17,806
|
|
|
17,982
|
|
|
17,975
|
|
|
9.9
|
|
|||
MAI Holdings, Inc. (4)
|
|
Printing Machinery and Equipment Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
9.50%
|
|
N/A
|
|
6/21/2018
|
|
6/1/2023
|
|
5,000
|
|
|
5,000
|
|
|
5,000
|
|
|
2.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Maverick Healthcare Equity, LLC (4)
|
|
Home Health Equipment Rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Preferred Equity (1,250,000 units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
|
900
|
|
|
64
|
|
|
—
|
|
|||
Common Equity (1,250,000 Class A units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
900
|
|
|
64
|
|
|
—
|
|
|||
My Alarm Center, LLC (4)
|
|
Security Systems Services (except Locksmiths)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Preferred Equity (1,485 Class A units), 8% PIK (7) (10) (13)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
|
1,571
|
|
|
1,602
|
|
|
0.9
|
|
|||
Preferred Equity (1,198 Class B units) (10) (13)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
|
1,198
|
|
|
245
|
|
|
0.1
|
|
|||
Common Equity (64,149 units) (10) (13)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,769
|
|
|
1,847
|
|
|
1.0
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
O2 Holdings, LLC (4)
|
|
Fitness and Recreational Sports Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
15.09%
|
|
(L +13.00%)
|
|
9/2/2016
|
|
9/2/2021
|
|
$
|
13,850
|
|
|
$
|
13,519
|
|
|
$
|
13,850
|
|
|
7.6
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Online Tech Stores, LLC (4)
|
|
Stationary & Office Supply Merchant Wholesaler
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan
|
|
|
|
10.50% cash / 1.0% PIK
|
|
N/A
|
|
2/1/2018
|
|
8/1/2023
|
|
16,066
|
|
|
15,770
|
|
|
15,703
|
|
|
8.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Parfums Holding Company, Inc.
|
|
Cosmetics, Beauty Supplies, and Perfume Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.85%
|
|
(L +8.75%)
|
|
11/16/2017
|
|
6/30/2025
|
|
6,320
|
|
|
6,335
|
|
|
6,393
|
|
|
3.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Performance Team LLC (4)
|
|
General Warehousing and Storage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
12.09%
|
|
(L +10.00%)
|
|
5/24/2018
|
|
11/24/2023
|
|
20,300
|
|
|
20,101
|
|
|
20,101
|
|
|
11.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Planet Fitness Midwest LLC (4)
|
|
Fitness and Recreational Sports Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan
|
|
|
|
13.00%
|
|
N/A
|
|
6/16/2016
|
|
12/16/2021
|
|
5,000
|
|
|
4,969
|
|
|
4,987
|
|
|
2.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
PM Acquisition LLC
|
|
All Other General Merchandise Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
11.50% cash / 1.0% PIK
|
|
N/A
|
|
9/30/2017
|
|
10/29/2021
|
|
5,520
|
|
|
5,456
|
|
|
5,358
|
|
|
2.9
|
|
|||
Common Equity (499 units) (10) (13)
|
|
|
|
|
|
|
|
9/30/2017
|
|
|
|
|
|
|
499
|
|
|
263
|
|
|
0.1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
5,520
|
|
|
5,955
|
|
|
5,621
|
|
|
3.0
|
|
|||
Resource Label Group, LLC
|
|
Commercial Printing (except Screen and Books)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.80%
|
|
(L +8.50%)
|
|
6/7/2017
|
|
11/26/2023
|
|
4,821
|
|
|
4,761
|
|
|
4,728
|
|
|
2.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
RPLF Holdings, LLC
|
|
Software Publishers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Common Equity (254,110 Class A units) (10) (13)
|
|
|
|
|
|
|
|
1/17/2018
|
|
|
|
|
|
|
254
|
|
|
315
|
|
|
0.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Security Alarm Financing Enterprises, L.P. (4)
|
|
Security Systems Services (except Locksmiths)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (14)
|
|
|
|
14.00% cash / 3.33% PIK
|
|
(L +14.00%)
|
|
10/14/2016
|
|
6/19/2020
|
|
12,588
|
|
|
12,521
|
|
|
12,701
|
|
|
6.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
Sentry Centers Holdings, LLC
|
|
Other Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan (15)
|
|
|
|
13.50%
|
|
(L +11.50%)
|
|
1/25/2016
|
|
7/24/2020
|
|
$
|
8,870
|
|
|
$
|
8,799
|
|
|
$
|
8,819
|
|
|
4.8
|
%
|
Preferred Equity (5,000 Series C units), 8% PIK (10) (13)
|
|
|
|
|
|
|
|
3/31/2014
|
|
|
|
|
|
|
548
|
|
|
962
|
|
|
0.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
8,870
|
|
|
9,347
|
|
|
9,781
|
|
|
5.3
|
|
|||
Southern Technical Institute, LLC (4)
|
|
Colleges, Universities, and Professional Schools
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (6)(10)
|
|
|
|
6.00% PIK
|
|
N/A
|
|
6/27/2018
|
|
12/31/2021
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Common Equity (1,764,720 Class A-1 units) (10)
|
|
|
|
|
|
|
|
6/27/2018
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
1,471
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
Stancor, L.P. (4)
|
|
Pump and Pumping Equipment Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.09%
|
|
(L +8.00%)
|
|
8/19/2014
|
|
8/19/2019
|
|
11,093
|
|
|
11,078
|
|
|
11,093
|
|
|
6.1
|
|
|||
Preferred Equity (1,250,000 Class A units), 8% PIK (7) (10)
|
|
|
|
|
|
|
|
8/19/2014
|
|
|
|
|
|
|
1,501
|
|
|
1,585
|
|
|
0.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
11,093
|
|
|
12,579
|
|
|
12,678
|
|
|
7.0
|
|
|||
STS Operating, Inc.
|
|
Industrial Machinery and Equipment Merchant Wholesalers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
5.84%
|
|
(L +3.75%)
|
|
5/16/2018
|
|
12/11/2024
|
|
642
|
|
|
640
|
|
|
640
|
|
|
0.3
|
|
|||
Senior Secured Loan
|
|
|
|
10.09%
|
|
(L +8.00%)
|
|
5/15/2018
|
|
4/30/2026
|
|
9,073
|
|
|
9,069
|
|
|
9,153
|
|
|
5.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
9,715
|
|
|
9,709
|
|
|
9,793
|
|
|
5.3
|
|
|||
The Escape Game, LLC (4)
|
|
Other amusement and recreation industries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.84%
|
|
(L +8.75%)
|
|
12/22/2017
|
|
12/22/2022
|
|
7,000
|
|
|
6,953
|
|
|
6,934
|
|
|
3.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Truck Hero, Inc.
|
|
Truck Trailer Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.34%
|
|
(L +8.25%)
|
|
5/30/2017
|
|
4/21/2025
|
|
7,014
|
|
|
6,974
|
|
|
7,060
|
|
|
3.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
United Biologics Holdings, LLC (4)
|
|
Medical Laboratories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Preferred Equity (151,787 units) (10)
|
|
|
|
|
|
|
|
4/16/2013
|
|
|
|
|
|
|
9
|
|
|
20
|
|
|
—
|
|
|||
Warrants (29,374 units) (10)
|
|
|
|
|
|
|
|
7/26/12
|
|
3/05/2022 (12)
|
|
|
|
|
82
|
|
|
72
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
—
|
|
|
91
|
|
|
92
|
|
|
—
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
Wand Intermediate I LP
|
|
Automotive Body, Paint, and Interior Repair and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
9.14%
|
|
(L +7.25%)
|
|
5/14/2018
|
|
9/19/2022
|
|
$
|
2,158
|
|
|
$
|
2,179
|
|
|
$
|
2,176
|
|
|
1.2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Non-control/Non-affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
245,579
|
|
|
249,111
|
|
|
241,071
|
|
|
125.3
|
|
|||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
3rd Rock Gaming Holdings, LLC
|
|
Software Publishers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
9.59%
|
|
(L +7.50%)
|
|
3/13/2018
|
|
3/12/2023
|
|
21,875
|
|
|
21,567
|
|
|
21,589
|
|
|
11.8
|
|
|||
Common Equity (2,547,250 units) (10) (13)
|
|
|
|
|
|
|
|
3/13/2018
|
|
|
|
|
|
|
2,547
|
|
|
2,218
|
|
|
1.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
21,875
|
|
|
24,114
|
|
|
23,807
|
|
|
13
|
|
|||
All Metals Holding, LLC (4)
|
|
Metal Service Centers and Other Metal Merchant Wholesalers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
12.0% cash / 1.0% PIK
|
|
N/A
|
|
12/31/2014
|
|
12/28/2021
|
|
19,401
|
|
|
18,892
|
|
|
19,122
|
|
|
10.5
|
|
|||
Common Equity (797,443 units) (10)
|
|
|
|
|
|
|
|
12/31/2014
|
|
|
|
|
|
|
523
|
|
|
2,252
|
|
|
1.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
19,401
|
|
|
19,415
|
|
|
21,374
|
|
|
11.7
|
|
|||
Contract Datascan Holdings, Inc. (4)
|
|
Office Machinery and Equipment Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan
|
|
|
|
12.00%
|
|
N/A
|
|
8/5/2015
|
|
2/5/2021
|
|
8,000
|
|
|
7,987
|
|
|
8,000
|
|
|
4.4
|
|
|||
Preferred Equity (3,061 Series A shares), 10% PIK (10)
|
|
|
|
|
|
|
|
8/5/2015
|
|
|
|
|
|
|
4,638
|
|
|
6,255
|
|
|
3.4
|
|
|||
Common Equity (11,273 shares) (10)
|
|
|
|
|
|
|
|
6/28/2016
|
|
|
|
|
|
|
104
|
|
|
2,437
|
|
|
1.3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
8,000
|
|
|
12,729
|
|
|
16,692
|
|
|
9.1
|
|
|||
DRS Imaging Services, LLC (4)
|
|
Data Processing, Hosting, and Related Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan (9)
|
|
|
|
12.8%
|
|
(L +10.50%)
|
|
3/8/2018
|
|
3/8/2023
|
|
5,446
|
|
|
5,348
|
|
|
5,297
|
|
|
2.9
|
|
|||
Common Equity (453 units) (10) (13)
|
|
|
|
|
|
|
|
3/8/2018
|
|
|
|
|
|
|
454
|
|
|
340
|
|
|
0.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
5,446
|
|
|
5,802
|
|
|
5,637
|
|
|
3.1
|
|
|||
Master Cutlery, LLC (4) (6)
|
|
Sporting and Recreational Goods and Supplies Merchant Wholesalers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (11)
|
|
|
|
13.00%
|
|
N/A
|
|
4/17/2015
|
|
4/17/2020
|
|
4,941
|
|
|
4,764
|
|
|
2,286
|
|
|
1.2
|
|
|||
Preferred Equity (3,723 Series A units), 8% PIK (7) (10)
|
|
|
|
|
|
|
|
4/17/2015
|
|
|
|
|
|
|
3,483
|
|
|
—
|
|
|
—
|
|
|||
Common Equity (15,564 units) (10)
|
|
|
|
|
|
|
|
4/17/2015
|
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
4,941
|
|
|
8,247
|
|
|
2,286
|
|
|
1.2
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal Amount
|
|
Amortized Cost
|
|
Fair Value (3)
|
|
Percent of Net Assets
|
|||||||
NeoSystems Corp. (4)
|
|
Other Accounting Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan
|
|
|
|
10.50% cash / 2.75% PIK
|
|
N/A
|
|
8/29/2014
|
|
8/13/2019
|
|
$
|
2,162
|
|
|
$
|
2,157
|
|
|
$
|
2,162
|
|
|
1.2
|
%
|
Preferred Equity (521,962 convertible shares), 10% PIK (10)
|
|
|
|
|
|
|
|
8/14/2014
|
|
|
|
|
|
|
1,462
|
|
|
2,250
|
|
|
1.2
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
2,162
|
|
|
3,619
|
|
|
4,412
|
|
|
2.4
|
|
|||
Pfanstiehl Holdings, Inc. (4)
|
|
Pharmaceutical Preparation Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan
|
|
|
|
10.50%
|
|
N/A
|
|
1/1/2014
|
|
9/29/2022
|
|
3,788
|
|
|
3,818
|
|
|
3,844
|
|
|
2.1
|
|
|||
Common Equity (400 Class A shares)
|
|
|
|
|
|
|
|
1/1/2014
|
|
|
|
|
|
|
217
|
|
|
6,735
|
|
|
3.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
3,788
|
|
|
4,035
|
|
|
10,579
|
|
|
5.8
|
|
|||
Professional Pipe Holdings, LLC
|
|
Plumbing, Heating, and Air-Conditioning Contractors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
12.23%
|
|
(L +10.25%)
|
|
3/23/2018
|
|
3/23/2023
|
|
8,486
|
|
|
8,325
|
|
|
8,341
|
|
|
4.6
|
|
|||
Common Equity (1,414 Class A units) (10)
|
|
|
|
|
|
|
|
3/23/2018
|
|
|
|
|
|
|
1,414
|
|
|
2,064
|
|
|
1.1
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
8,486
|
|
|
9,739
|
|
|
10,405
|
|
|
5.7
|
|
|||
TRS Services, LLC (4)
|
|
Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Senior Secured Loan
|
|
|
|
10.84% cash / 1.00% PIK
|
|
(L +8.75%)
|
|
12/10/2014
|
|
12/10/2019
|
|
14,709
|
|
|
14,611
|
|
|
14,390
|
|
|
7.9
|
|
|||
Preferred Equity (329,266 Class AA units), 15% PIK (10)
|
|
|
|
|
|
|
|
6/30/2016
|
|
|
|
|
|
|
432
|
|
|
440
|
|
|
0.2
|
|
|||
Preferred Equity (3,000,000 Class A units), 11% PIK (7) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
|
3,374
|
|
|
995
|
|
|
0.5
|
|
|||
Common Equity (3,000,000 units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
|
572
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
14,709
|
|
|
18,989
|
|
|
15,825
|
|
|
8.6
|
|
|||
Total Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
88,808
|
|
|
106,689
|
|
|
111,017
|
|
|
60.6
|
|
|||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
MTE Holding Corp. (4)
|
|
Travel Trailer and Camper Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Subordinated Loan (to Mirage Trailers, LLC, a controlled, consolidated subsidiary of MTE Holding Corp.)
|
|
|
|
13.59% cash / 1.5% PIK
|
|
(L +11.50%)
|
|
11/25/2015
|
|
11/25/2020
|
|
7,240
|
|
|
7,206
|
|
|
7,250
|
|
|
4.0
|
|
|||
Common Equity (554 shares)
|
|
|
|
|
|
|
|
11/25/2015
|
|
|
|
|
|
|
3,069
|
|
|
3,494
|
|
|
1.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
7,240
|
|
|
10,275
|
|
|
10,744
|
|
|
5.9
|
|
|||
Total Control Investment
|
|
|
|
|
|
|
|
|
|
|
|
7,240
|
|
|
10,275
|
|
|
10,744
|
|
|
5.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Total Investments
|
|
|
|
|
|
|
|
|
|
|
|
$
|
341,627
|
|
|
$
|
366,075
|
|
|
$
|
362,832
|
|
|
191.8
|
%
|
(1)
|
Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company's investments are generally classified as "restricted securities" as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
|
(2)
|
Substantially all of the investments that bear interest at a variable rate are indexed to LIBOR (L), and reset monthly, quarterly, or semi-annually. Variable-rate loans with an aggregate cost of $
250,457
include LIBOR reference rate floor provisions of generally 1% to 2%; at June 30, 2018, the reference rate on all such instruments was above the stated floors. For each investment, the Company has provided the spread over the reference rate and current interest rate in effect at
June 30, 2018
. Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
|
(3)
|
Fair value was determined using significant unobservable inputs for all of the Company's investments. See
Note 5
for further details.
|
(4)
|
Investments (or portion thereof) held by OFS SBIC I, LP. All other investments pledged as collateral under the PWB Credit Facility.
|
(5)
|
Reserved.
|
(6)
|
Investment was on non-accrual status as of
June 30, 2018
, meaning the Company has ceased recognizing all or a portion of income on the investment. See
Note 4
for further details.
|
(7)
|
The fair value of the accrued PIK dividend at
June 30, 2018
was $-0-.
|
(8)
|
The Company has entered into a contractual arrangement with co‑lenders whereby, subject to certain conditions, it has agreed to receive its payment after the repayment of certain co‑lenders pursuant to a payment waterfall. The reported interest rate of
10.21%
at
June 30, 2018
, includes additional interest of
0.65%
per annum as specified under the contractual arrangement among the Company and the co‑lenders.
|
(9)
|
The Company has entered into a contractual arrangement with co‑lenders whereby, subject to certain conditions, it has agreed to receive its payment after the repayment of certain co‑lenders pursuant to a payment waterfall. The reported interest rate of
12.55%
at
June 30, 2018
, includes additional interest of
2.5%
per annum as specified under the contractual arrangement among the Company and the co‑lenders.
|
(10)
|
Non-income producing.
|
Portfolio Company
|
|
Investment Type
|
|
Range of PIK
Option
|
|
Range of Cash
Option
|
|
Maximum PIK
Rate Allowed
|
|
Community Intervention Services, Inc.
|
|
Subordinated Loan
|
|
0% or 6.00%
|
|
13.00% or 7.00%
|
|
6.00
|
%
|
Eblens Holdings, Inc.
|
|
Subordinated Loan
|
|
0% or 1.00%
|
|
13.00% or 12.00%
|
|
1.00
|
%
|
Master Cultery, LLC
|
|
Senior Secured Loan
|
|
0% to 13.00%
|
|
13.00% to 0%
|
|
13.00
|
%
|
TRS Services, LLC
|
|
Senior Secured Loan
|
|
0% or 1.00%
|
|
11.84% or 1.00%
|
|
1.00
|
%
|
(12)
|
Represents expiration date of the warrants.
|
(13)
|
All or portion of investment held by a wholly-owned subsidiary subject to income tax.
|
(14)
|
The PIK provision is reset at the beginning of each interest period equal to the excess of reference rate over the reference rate floor of 1.00%. The PIK interest rate in the schedule represents the current PIK interest rate in effect.
|
(15)
|
Maximum interest rate allowable under the terms of this investment is 13.50%.
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
Non-control/Non-affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||
Aegis Acquisition, Inc.
|
|
Testing Laboratories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.17%
|
|
(L +8.50%)
|
|
10/31/2017
|
|
8/24/2021
|
|
$
|
3,520
|
|
|
$
|
3,470
|
|
|
$
|
3,439
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Armor Holdings II LLC
|
|
Other Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.70%
|
|
(L +9.00%)
|
|
7/20/2016
|
|
12/26/2020
|
|
3,500
|
|
|
3,476
|
|
|
3,570
|
|
|
1.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Avison Young Canada, Inc.
|
|
Offices of Real Estate Agents and Brokers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan (5) (6)
|
|
|
|
9.50%
|
|
N/A
|
|
12/23/2016
|
|
12/15/2021
|
|
4,000
|
|
|
3,939
|
|
|
4,070
|
|
|
2.3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
BJ's Wholesale Club, Inc.
|
|
Warehouse Clubs and Supercenters
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
8.95%
|
|
(L +7.50%)
|
|
5/9/2017
|
|
2/3/2025
|
|
9,268
|
|
|
9,158
|
|
|
9,063
|
|
|
4.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Carolina Lubes, Inc. (5) (9)
|
|
Automotive Oil Change and Lubrication Shops
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
9.28%
|
|
(L +7.25%)
|
|
8/23/2017
|
|
8/23/2022
|
|
21,411
|
|
|
21,236
|
|
|
21,430
|
|
|
11.4
|
|
|||
Senior Secured Loan (Revolver)
|
|
|
|
8.59%
|
|
(L +7.25%)
|
|
8/23/2017
|
|
8/23/2022
|
|
487
|
|
|
473
|
|
|
489
|
|
|
0.3
|
|
|||
Preferred Equity (973 units) 14% PIK
|
|
|
|
|
|
|
|
8/23/2017
|
|
|
|
|
|
3,039
|
|
|
3,065
|
|
|
1.6
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
21,898
|
|
|
24,748
|
|
|
24,984
|
|
|
13.3
|
|
|||
Community Intervention Services, Inc. (5)
|
|
Outpatient Mental Health and Substance Abuse Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Subordinated Loan (7) (11)
|
|
|
|
7.0% cash / 6.0% PIK
|
|
N/A
|
|
7/16/2015
|
|
1/16/2021
|
|
8,530
|
|
|
7,639
|
|
|
—
|
|
|
—
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Confie Seguros Holdings II Co.
|
|
Insurance Agencies and Brokerages
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.98%
|
|
(L +9.50%)
|
|
7/7/2015
|
|
5/8/2019
|
|
9,678
|
|
|
9,579
|
|
|
9,417
|
|
|
5.0
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Constellis Holdings, LLC
|
|
Other Justice, Public Order, and Safety Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.69%
|
|
(L +9.00%)
|
|
4/28/2017
|
|
4/21/2025
|
|
9,950
|
|
|
9,813
|
|
|
9,919
|
|
|
5.3
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
DuPage Medical Group
|
|
Offices of Physicians, Mental Health Specialists
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
8.42%
|
|
(L +7.00%)
|
|
8/22/2017
|
|
8/15/2025
|
|
5,600
|
|
|
5,547
|
|
|
5,503
|
|
|
2.9
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
Eblens Holdings, Inc.
|
|
Shoe Store
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
12.0% cash / 1.00% PIK
|
|
N/A
|
|
7/13/2017
|
|
1/13/2023
|
|
$
|
8,830
|
|
|
$
|
8,749
|
|
|
$
|
8,726
|
|
|
4.6
|
%
|
Common Equity (71,250 Class A units)
|
|
|
|
|
|
|
|
7/13/2017
|
|
|
|
|
|
713
|
|
|
771
|
|
|
0.4
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
8,830
|
|
|
9,462
|
|
|
9,497
|
|
|
5.0
|
|
|||
Elgin Fasteners Group
|
|
Bolt, Nut, Screw, Rivet, and Washer Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
8.44%
|
|
(L +6.75%)
|
|
10/31/2011
|
|
8/27/2018
|
|
3,888
|
|
|
3,873
|
|
|
3,544
|
|
|
1.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
GGC Aerospace Topco L.P.
|
|
Other Aircraft Parts and Auxiliary Equipment Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.23%
|
|
(L +8.75%)
|
|
12/29/2017
|
|
9/8/2024
|
|
5,000
|
|
|
4,875
|
|
|
4,875
|
|
|
2.6
|
|
|||
Common Equity (368,852 Class A units)
|
|
|
|
|
|
|
|
12/29/2017
|
|
|
|
|
|
450
|
|
|
450
|
|
|
0.2
|
|
||||
Common Equity (40,984 Class B units)
|
|
|
|
|
|
|
|
12/29/2017
|
|
|
|
|
|
50
|
|
|
50
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
5,000
|
|
|
5,375
|
|
|
5,375
|
|
|
2.8
|
|
|||
LRI Holding, LLC (5)
|
|
Electrical Contractors and Other Wiring Installation Contractors
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.94%
|
|
(L +9.25%)
|
|
6/30/2017
|
|
6/30/2022
|
|
18,269
|
|
|
18,125
|
|
|
18,205
|
|
|
9.7
|
|
|||
Preferred Equity (238,095 Series B units)
|
|
|
|
|
|
|
|
6/30/2017
|
|
|
|
|
|
300
|
|
|
300
|
|
|
0.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
18,269
|
|
|
18,425
|
|
|
18,505
|
|
|
9.9
|
|
|||
Maverick Healthcare Equity, LLC (5)
|
|
Home Health Equipment Rental
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Preferred Equity (1,250,000 units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
900
|
|
|
141
|
|
|
0.1
|
|
||||
Common Equity (1,250,000 Class A units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
900
|
|
|
141
|
|
|
0.1
|
|
||||
My Alarm Center, LLC (5)
|
|
Security Systems Services (except Locksmiths)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Preferred Equity (1,485 Class A units), 8% PIK (10) (13)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
1,540
|
|
|
1,540
|
|
|
0.8
|
|
||||
Preferred Equity (1,198 Class B units)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
1,198
|
|
|
1,198
|
|
|
0.6
|
|
||||
Common Equity (64,149 units) (13)
|
|
|
|
|
|
|
|
7/14/2017
|
|
|
|
|
|
—
|
|
|
43
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2,738
|
|
|
2,781
|
|
|
1.4
|
|
||||
NVA Holdings, Inc.
|
|
Veterinary Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
8.69%
|
|
(L +7.00%)
|
|
5/18/2016
|
|
8/14/2022
|
|
743
|
|
|
743
|
|
|
748
|
|
|
0.4
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
O2 Holdings, LLC (5)
|
|
Fitness and Recreational Sports Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
14.56%
|
|
(L +13.00%)
|
|
9/2/2016
|
|
9/2/2021
|
|
13,350
|
|
|
12,977
|
|
|
13,617
|
|
|
7.2
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
Parfums Holding Company, Inc.
|
|
Cosmetics, Beauty Supplies, and Perfume Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.45%
|
|
(L +8.75%)
|
|
11/16/2017
|
|
6/30/2025
|
|
$
|
3,520
|
|
|
$
|
3,492
|
|
|
$
|
3,472
|
|
|
1.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Planet Fitness Midwest LLC (5)
|
|
Fitness and Recreational Sports Centers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
13.00%
|
|
N/A
|
|
6/16/2016
|
|
12/16/2021
|
|
5,000
|
|
|
4,964
|
|
|
5,011
|
|
|
2.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
PM Acquisition LLC
|
|
All Other General Merchandise Stores
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
11.50% cash / 1.00% PIK
|
|
N/A
|
|
9/30/2017
|
|
10/29/2021
|
|
6,187
|
|
|
6,108
|
|
|
6,059
|
|
|
3.2
|
|
|||
Common equity (499 units) (10)
|
|
|
|
|
|
|
|
9/30/2017
|
|
|
|
|
|
499
|
|
|
278
|
|
|
0.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
6,187
|
|
|
6,607
|
|
|
6,337
|
|
|
3.3
|
|
|||
Resource Label Group, LLC
|
|
Commercial Printing (except Screen and Books)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.19%
|
|
(L +8.50%)
|
|
6/7/2017
|
|
11/26/2023
|
|
4,821
|
|
|
4,755
|
|
|
4,767
|
|
|
2.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Security Alarm Financing Enterprises, L.P. (5)
|
|
Security Systems Services (except Locksmiths)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan (14)
|
|
|
|
14.00% cash / 0.69% PIK
|
|
(L +13.00%)
|
|
10/14/2016
|
|
6/19/2020
|
|
12,525
|
|
|
12,441
|
|
|
12,364
|
|
|
6.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Sentry Centers Holdings, LLC
|
|
Other Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
13.07%
|
|
(L +11.50%)
|
|
1/25/2016
|
|
7/24/2019
|
|
4,195
|
|
|
4,156
|
|
|
4,259
|
|
|
2.3
|
|
|||
Preferred Equity (5,000 Series C units), 8% PIK (10) (13)
|
|
|
|
|
|
|
|
3/31/2014
|
|
|
|
|
|
527
|
|
|
527
|
|
|
0.3
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
4,195
|
|
|
4,683
|
|
|
4,786
|
|
|
2.6
|
|
|||
Southern Technical Institute, LLC (5)
|
|
Colleges, Universities, and Professional Schools
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan (10)
|
|
|
|
15.00% PIK
|
|
N/A
|
|
12/2/2014
|
|
12/2/2020
|
|
3,520
|
|
|
3,451
|
|
|
1,201
|
|
|
0.6
|
|
|||
Preferred Equity (1,764,720 Class SP-1 units), 15.75% PIK (8) (10)
|
|
|
|
|
|
|
|
3/30/2016
|
|
|
|
|
|
2,094
|
|
|
—
|
|
|
—
|
|
||||
Warrants (2,174,905 Class A units) (10)
|
|
|
|
|
|
|
|
3/30/2016
|
|
3/30/2026
|
|
|
|
46
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
3,520
|
|
|
5,591
|
|
|
1,201
|
|
|
0.6
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
Stancor, L.P. (5)
|
|
Pump and Pumping Equipment Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
9.56%
|
|
(L +8.00%)
|
|
8/19/2014
|
|
8/19/2019
|
|
$
|
7,919
|
|
|
$
|
7,896
|
|
|
$
|
7,919
|
|
|
4.2
|
%
|
Preferred Equity (1,250,000 Class A units), 8% PIK (8) (10)
|
|
|
|
|
|
|
|
8/19/2014
|
|
|
|
|
|
1,501
|
|
|
1,486
|
|
|
0.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
7,919
|
|
|
9,397
|
|
|
9,405
|
|
|
5.0
|
|
|||
The Escape Game, LLC (5)
|
|
Other amusement and recreation industries
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.32%
|
|
(L +8.75%)
|
|
12/22/2017
|
|
12/20/2022
|
|
7,000
|
|
|
6,948
|
|
|
6,948
|
|
|
3.7
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
TravelCLICK, Inc.
|
|
Computer Systems Design and Related Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
9.32%
|
|
(L +7.75%)
|
|
10/16/2015
|
|
11/6/2021
|
|
7,334
|
|
|
7,303
|
|
|
7,334
|
|
|
3.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Truck Hero, Inc.
|
|
Truck Trailer Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
9.89%
|
|
(L +8.25%)
|
|
5/30/2017
|
|
4/21/2025
|
|
7,014
|
|
|
6,971
|
|
|
7,064
|
|
|
3.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
United Biologics Holdings, LLC (5)
|
|
Medical Laboratories
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan (11)
|
|
|
|
12.00% cash / 2.00% PIK
|
|
N/A
|
|
7/26/2012
|
|
4/30/2018
|
|
4,266
|
|
|
4,248
|
|
|
4,266
|
|
|
2.3
|
|
|||
Subordinated Loan (10)
|
|
|
|
8.00 % PIK
|
|
N/A
|
|
7/6/2016
|
|
4/30/2019
|
|
7
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|||
Preferred Equity (151,787 units) (10)
|
|
|
|
|
|
|
|
4/16/2013
|
|
|
|
|
|
9
|
|
|
92
|
|
|
—
|
|
||||
Warrants (29,374 units) (10)
|
|
|
|
|
|
|
|
7/26/2012
|
|
3/5/2022
|
|
|
|
82
|
|
|
147
|
|
|
0.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
4,273
|
|
|
4,346
|
|
|
4,512
|
|
|
2.4
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Non-control/Non-affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
199,332
|
|
|
209,360
|
|
|
197,374
|
|
|
104.9
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
All Metals Holding, LLC (5)
|
|
Metal Service Centers and Other Metal Merchant Wholesalers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
12.00% cash / 1.00% PIK
|
|
N/A
|
|
12/31/2014
|
|
12/28/2021
|
|
12,869
|
|
|
12,288
|
|
|
12,759
|
|
|
6.8
|
|
|||
Common Equity (637,954 units) (10)
|
|
|
|
|
|
|
|
12/31/2014
|
|
|
|
|
|
565
|
|
|
1,785
|
|
|
0.9
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
12,869
|
|
|
12,853
|
|
|
14,544
|
|
|
7.7
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
Contract Datascan Holdings, Inc. (5)
|
|
Office Machinery and Equipment Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
12.00%
|
|
N/A
|
|
8/5/2015
|
|
2/5/2021
|
|
$
|
8,000
|
|
|
$
|
7,985
|
|
|
$
|
8,000
|
|
|
4.2
|
%
|
Preferred Equity (3,061 Series A shares), 10% PIK (10)
|
|
|
|
|
|
|
|
8/5/2015
|
|
|
|
|
|
4,347
|
|
|
5,964
|
|
|
3.2
|
|
||||
Common Equity (11,273 shares) (10)
|
|
|
|
|
|
|
|
6/28/2016
|
|
|
|
|
|
104
|
|
|
260
|
|
|
0.1
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
8,000
|
|
|
12,436
|
|
|
14,224
|
|
|
7.5
|
|
|||
Jobson Healthcare Information, LLC (5) (9)
|
|
Other Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan (11)
|
|
|
|
10.13% cash / 5.30% PIK
|
|
(L +13.43%)
|
|
7/23/2014
|
|
7/21/2019
|
|
15,447
|
|
|
15,241
|
|
|
12,910
|
|
|
6.9
|
|
|||
Common Equity (13 member units)
|
|
|
|
|
|
|
|
12/15/2017
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Warrants (1 member unit) (10)
|
|
|
|
|
|
|
|
7/23/2014
|
|
7/21/2019
|
|
|
|
454
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
15,447
|
|
|
15,695
|
|
|
12,910
|
|
|
6.9
|
|
|||
Master Cutlery, LLC (5)
|
|
Sporting and Recreational Goods and Supplies Merchant Wholesalers
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
13.00%
|
|
N/A
|
|
4/17/2015
|
|
4/17/2020
|
|
4,705
|
|
|
4,692
|
|
|
2,873
|
|
|
1.5
|
|
|||
Preferred Equity (3,723 Series A units), 8% PIK (8) (10)
|
|
|
|
|
|
|
|
4/17/2015
|
|
|
|
|
|
3,483
|
|
|
—
|
|
|
—
|
|
||||
Common Equity (15,564 units) (10)
|
|
|
|
|
|
|
|
4/17/2015
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
4,705
|
|
|
8,175
|
|
|
2,873
|
|
|
1.5
|
|
|||
NeoSystems Corp.(5)
|
|
Other Accounting Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
10.50% cash / 1.25% PIK
|
|
N/A
|
|
8/29/2014
|
|
8/13/2019
|
|
2,143
|
|
|
2,136
|
|
|
2,143
|
|
|
1.1
|
|
|||
Preferred Equity (521,962 convertible shares), 10% PIK (10)
|
|
|
|
|
|
|
|
8/14/2014
|
|
|
|
|
|
1,390
|
|
|
2,248
|
|
|
1.2
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
2,143
|
|
|
3,526
|
|
|
4,391
|
|
|
2.3
|
|
|||
Pfanstiehl Holdings, Inc. (5)
|
|
Pharmaceutical Preparation Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan
|
|
|
|
10.50%
|
|
N/A
|
|
1/1/2014
|
|
9/29/2021
|
|
3,788
|
|
|
3,823
|
|
|
3,755
|
|
|
2.0
|
|
|||
Common Equity (400 Class A shares)
|
|
|
|
|
|
|
|
1/1/2014
|
|
|
|
|
|
217
|
|
|
4,755
|
|
|
2.5
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
3,788
|
|
|
4,040
|
|
|
8,510
|
|
|
4.5
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Portfolio Company (1)
Investment Type |
|
Industry
|
|
Interest Rate (2)
|
|
Spread Above
Index (2)
|
|
Initial Acquisition Date
|
|
Maturity
|
|
Principal
Amount
|
|
Amortized Cost
|
|
Fair Value
|
|
Percent of
Net Assets
|
|||||||
TRS Services, LLC (5)
|
|
Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured Loan
|
|
|
|
10.07%
|
|
(L +8.50%)
|
|
12/10/2014
|
|
12/10/2019
|
|
$
|
9,466
|
|
|
$
|
9,330
|
|
|
$
|
9,466
|
|
|
5.0
|
%
|
Preferred Equity (329,266 Class AA units), 15% PIK (10)
|
|
|
|
|
|
|
|
6/30/2016
|
|
|
|
|
|
401
|
|
|
409
|
|
|
0.2
|
|
||||
Preferred Equity (3,000,000 Class A units), 11% PIK (8) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
3,374
|
|
|
2,230
|
|
|
1.2
|
|
||||
Common Equity (3,000,000 units) (10)
|
|
|
|
|
|
|
|
12/10/2014
|
|
|
|
|
|
572
|
|
|
—
|
|
|
—
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
9,466
|
|
|
13,677
|
|
|
12,105
|
|
|
6.4
|
|
|||
Total Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
56,418
|
|
|
70,402
|
|
|
69,557
|
|
|
36.8
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
MTE Holding Corp. (2) (5)
|
|
Travel Trailer and Camper Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Subordinated Loan (to Mirage Trailers, LLC, a controlled, consolidated subsidiary of MTE Holding Corp.)
|
|
|
|
13.07% cash / 1.50% PIK
|
|
(L +13.50%)
|
|
11/25/2015
|
|
11/25/2020
|
|
7,186
|
|
|
7,144
|
|
|
7,118
|
|
|
3.8
|
|
|||
Common Equity (554 shares)
|
|
|
|
|
|
|
|
11/25/2015
|
|
|
|
|
|
3,069
|
|
|
3,450
|
|
|
1.8
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
7,186
|
|
|
10,213
|
|
|
10,568
|
|
|
5.6
|
|
|||
Total Control Investment
|
|
|
|
|
|
|
|
|
|
|
|
7,186
|
|
|
10,213
|
|
|
10,568
|
|
|
5.6
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Total Investments
|
|
|
|
|
|
|
|
|
|
|
|
$
|
262,936
|
|
|
$
|
289,975
|
|
|
$
|
277,499
|
|
|
147.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Equity ownership may be held in shares or units of companies affiliated with the portfolio company. The Company's investments are generally classified as "restricted securities" as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
|
(2)
|
Substantially all of the investments that bear interest at a variable rate are indexed to LIBOR (L), and reset monthly, quarterly, or semi-annually. Variable-rate loans with an aggregate cost of $189,022 include LIBOR reference rate floor provisions of generally 1% to 2%; at December 31, 2017, approximately 7% of the Company's LIBOR referenced amounts are subject to a reference rate floor of 2.00%. For each investment, the Company has provided the spread over the reference rate and current interest rate in effect at December 31, 2017. Unless otherwise noted, all investments with a stated PIK rate require interest payments with the issuance of additional securities as payment of the entire PIK provision.
|
(3)
|
Fair value was determined using significant unobservable inputs for all of the Company's investments. See Note 6 for further details.
|
(4)
|
The negative amount represents the excess of the par value of an unfunded commitment in excess of its fair value.
|
(5)
|
Investments (or portion thereof) held by OFS SBIC I, LP. All other investments pledged as collateral under the PWB Credit Facility.
|
(6)
|
Non-qualifying assets under Section 55(a) of the 1940 Act. Qualifying assets must represent at least 70% of the Company's assets, as defined under Section 55 of the 1940 Act, at the time of acquisition of any additional non-qualifying assets. As of December 31, 2017, 97.53% of the Company's assets were qualifying assets.
|
(7)
|
Investment was on non-accrual status as of December 31, 2017, meaning the Company has ceased recognizing all or a portion of income on the investment. See
Note 4
for further details.
|
(8)
|
The fair value of the most-recently recognized PIK dividend as of December 31, 2017, was $0.
|
(9)
|
The Company has entered into a contractual arrangement with co‑lenders whereby, subject to certain conditions, it has agreed to receive its payment after the repayment of certain co‑lenders pursuant to a payment waterfall. The reported interest rate of 9.28% at December 31, 2017, includes additional interest of 0.69% per annum as specified under the contractual arrangement among the Company and the co‑lenders.
|
(10)
|
Non-income producing.
|
Portfolio Company
|
|
Investment Type
|
|
Range of PIK
Option
|
|
Range of Cash
Option
|
|
Maximum PIK
Rate Allowed
|
|
Community Intervention Services, Inc.
|
|
Subordinated Loan
|
|
0% or 6.00%
|
|
13.00% or 7.00%
|
|
6.00
|
%
|
Eblens Holdings, Inc.
|
|
Subordinated Loan
|
|
0% or 1.00%
|
|
13.00% or 12.00%
|
|
1.00
|
%
|
Jobson Healthcare Information, LLC
|
|
Senior Secured Loan
|
|
1.50% to 5.30%
|
|
13.93% to 10.13%
|
|
5.30
|
%
|
United Biologics Holdings, LLC
|
|
Senior Secured Loan
|
|
0% or 2.00%
|
|
14.00% or 12.00%
|
|
2.00
|
%
|
(12)
|
Represents expiration date of the warrants.
|
(13)
|
All or portion of investment held by a wholly-owned subsidiary subject to income tax.
|
(14)
|
The PIK provision is reset at the beginning of each interest period equal to the excess of reference rate over the reference rate floor of 1.00%. The PIK interest rate in the schedule represents the current PIK interest rate in effect.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Base management fees
|
$
|
1,548
|
|
|
$
|
1,224
|
|
|
$
|
2,908
|
|
|
$
|
2,416
|
|
Incentive fees:
|
|
|
|
|
|
|
|
||||||||
Income Incentive Fee
|
1,135
|
|
|
261
|
|
|
1,872
|
|
|
1,159
|
|
||||
Capital Gain Fee
|
—
|
|
|
(283
|
)
|
|
—
|
|
|
—
|
|
||||
Incentive fee waiver
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
||||
Administration fee expense
|
358
|
|
|
307
|
|
|
941
|
|
|
708
|
|
|
Amortized Cost
|
|
Percentage of Net Assets
|
|
Fair Value
|
|
Percentage of Net Assets
|
||||||
Senior secured debt investments
(1)
|
$
|
260,078
|
|
|
142.2
|
%
|
|
$
|
260,851
|
|
|
142.5
|
%
|
Subordinated debt investments
|
75,633
|
|
|
41.3
|
|
|
65,661
|
|
|
35.9
|
|
||
Preferred equity
|
19,416
|
|
|
10.6
|
|
|
14,718
|
|
|
8.0
|
|
||
Common equity and warrants
|
10,948
|
|
|
6.0
|
|
|
21,602
|
|
|
11.8
|
|
||
Total investments
|
$
|
366,075
|
|
|
200.1
|
%
|
|
$
|
362,832
|
|
|
198.2
|
%
|
(1)
|
Includes debt investments in which we have entered into contractual arrangements with co‑lenders whereby, subject to certain conditions, we have agreed to receive our principal payments after the repayment of certain co‑lenders pursuant to a payment waterfall. Amortized cost and fair value of these investments was
$20,970
and
$21,423
, respectively.
|
|
|
|
|
Percentage of Total
|
|
|
|
Percentage of Total
|
||||||||||||
|
|
Amortized Cost
|
|
Amortized Cost
|
|
Net Assets
|
|
Fair Value
|
|
Fair Value
|
|
Net Assets
|
||||||||
Administrative and Support and Waste Management and Remediation Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Security Systems Services (except Locksmiths)
|
|
$
|
15,290
|
|
|
4.1
|
%
|
|
8.5
|
%
|
|
$
|
14,548
|
|
|
4.0
|
%
|
|
8.0
|
%
|
|
|
|
|
|
|
|
Percentage of Total
|
|
|
|
Percentage of Total
|
||||||||||||
|
|
Amortized Cost
|
|
Amortized Cost
|
|
Net Assets
|
|
Fair Value
|
|
Fair Value
|
|
Net Assets
|
||||||||
Temporary Help Services
|
|
7,785
|
|
|
2.0
|
|
|
4.3
|
|
|
7,785
|
|
|
2.0
|
|
|
4.3
|
|
||
Arts, Entertainment, and Recreation
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fitness and Recreational Sports Centers
|
|
18,488
|
|
|
5.1
|
|
|
10.1
|
|
|
18,837
|
|
|
5.2
|
|
|
10.3
|
|
||
Other amusement and recreation industries
|
|
6,953
|
|
|
1.9
|
|
|
3.8
|
|
|
6,934
|
|
|
1.9
|
|
|
3.8
|
|
||
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Electrical Contractors and Other Wiring Installation Contractors
|
|
17,982
|
|
|
4.9
|
|
|
9.8
|
|
|
17,975
|
|
|
5.0
|
|
|
9.8
|
|
||
Plumbing, Heating, and Air-Conditioning Contractors
|
|
9,739
|
|
|
2.7
|
|
|
5.3
|
|
|
10,405
|
|
|
2.9
|
|
|
5.7
|
|
||
Education Services
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Colleges, Universities, and Professional Schools
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Finance and Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Insurance Agencies and Brokerages
|
|
9,615
|
|
|
2.6
|
|
|
5.3
|
|
|
9,473
|
|
|
2.6
|
|
|
5.2
|
|
||
Health Care and Social Assistance
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Medical Laboratories
|
|
91
|
|
|
—
|
|
|
—
|
|
|
92
|
|
|
—
|
|
|
0.1
|
|
||
Offices of Physicians, Mental Health Specialists
|
|
7,176
|
|
|
2.0
|
|
|
3.9
|
|
|
7,134
|
|
|
2.0
|
|
|
3.9
|
|
||
Outpatient Mental Health and Substance Abuse Centers
|
|
11,601
|
|
|
3.2
|
|
|
6.3
|
|
|
3,979
|
|
|
1.1
|
|
|
2.2
|
|
||
Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Data Processing, Hosting, and Related Services
|
|
5,802
|
|
|
1.6
|
|
|
3.2
|
|
|
5,637
|
|
|
1.6
|
|
|
3.1
|
|
||
Software Publishers
|
|
24,368
|
|
|
6.7
|
|
|
13.3
|
|
|
24,122
|
|
|
6.6
|
|
|
13.2
|
|
||
Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Bolt, Nut, Screw, Rivet, and Washer Manufacturing
|
|
3,744
|
|
|
1.0
|
|
|
2.0
|
|
|
3,489
|
|
|
1.0
|
|
|
1.9
|
|
||
Commercial Printing (except Screen and Books)
|
|
4,761
|
|
|
1.3
|
|
|
2.6
|
|
|
4,728
|
|
|
1.3
|
|
|
2.6
|
|
||
Other Aircraft Parts and Auxiliary Equipment Manufacturing
|
|
5,384
|
|
|
1.5
|
|
|
2.9
|
|
|
5,319
|
|
|
1.5
|
|
|
2.9
|
|
||
Pharmaceutical Preparation Manufacturing
|
|
4,035
|
|
|
1.1
|
|
|
2.2
|
|
|
10,579
|
|
|
2.9
|
|
|
5.8
|
|
||
Printing Machinery and Equipment Manufacturing
|
|
5,000
|
|
|
1.4
|
|
|
2.7
|
|
|
5,000
|
|
|
1.4
|
|
|
2.7
|
|
||
Pump and Pumping Equipment Manufacturing
|
|
12,579
|
|
|
3.4
|
|
|
6.9
|
|
|
12,678
|
|
|
3.5
|
|
|
6.9
|
|
||
Travel Trailer and Camper Manufacturing
|
|
10,275
|
|
|
2.8
|
|
|
5.6
|
|
|
10,744
|
|
|
3.0
|
|
|
5.9
|
|
||
Truck Trailer Manufacturing
|
|
6,974
|
|
|
1.9
|
|
|
3.8
|
|
|
7,060
|
|
|
1.9
|
|
|
3.9
|
|
||
Other Services (except Public Administration)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Automotive Body, Paint, and Interior Repair and Maintenance
|
|
2,179
|
|
|
0.6
|
|
|
1.2
|
|
|
2,176
|
|
|
0.6
|
|
|
1.2
|
|
||
Automotive Oil Change and Lubrication Shops
|
|
22,320
|
|
|
6.1
|
|
|
12.2
|
|
|
22,786
|
|
|
6.3
|
|
|
12.5
|
|
||
Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
|
|
18,989
|
|
|
5.2
|
|
|
10.4
|
|
|
15,825
|
|
|
4.4
|
|
|
8.7
|
|
||
Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Other Accounting Services
|
|
3,619
|
|
|
1.0
|
|
|
2.0
|
|
|
4,412
|
|
|
1.2
|
|
|
2.4
|
|
||
Other Professional, Scientific, and Technical Services
|
|
12,827
|
|
|
3.5
|
|
|
7.0
|
|
|
13,281
|
|
|
3.7
|
|
|
7.3
|
|
||
Public Administration
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Other Justice, Public Order, and Safety Activities
|
|
9,823
|
|
|
2.7
|
|
|
5.4
|
|
|
10,050
|
|
|
2.8
|
|
|
5.5
|
|
|
|
|
|
|
|
|
Percentage of Total
|
|
|
|
Percentage of Total
|
||||||||||||
|
|
Amortized Cost
|
|
Amortized Cost
|
|
Net Assets
|
|
Fair Value
|
|
Fair Value
|
|
Net Assets
|
||||||||
Real Estate and Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Home Health Equipment Rental
|
|
900
|
|
|
0.2
|
|
|
0.5
|
|
|
64
|
|
|
—
|
|
|
—
|
|
||
Office Machinery and Equipment Rental and Leasing
|
|
12,729
|
|
|
3.5
|
|
|
7.0
|
|
|
16,692
|
|
|
4.6
|
|
|
9.1
|
|
||
Retail Trade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Cosmetics, Beauty Supplies, and Perfume Stores
|
|
6,335
|
|
|
1.7
|
|
|
3.5
|
|
|
6,393
|
|
|
1.8
|
|
|
3.5
|
|
||
Shoe store
|
|
9,515
|
|
|
2.6
|
|
|
5.2
|
|
|
9,757
|
|
|
2.7
|
|
|
5.3
|
|
||
All Other General Merchandise Stores
|
|
5,955
|
|
|
1.6
|
|
|
3.3
|
|
|
5,621
|
|
|
1.5
|
|
|
3.1
|
|
||
Transportation and Warehousing
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
General Warehousing and Storage
|
|
20,101
|
|
|
5.5
|
|
|
11.0
|
|
|
20,101
|
|
|
5.5
|
|
|
11.0
|
|
||
Wholesale Trade
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Industrial Machinery and Equipment Merchant Wholesalers
|
|
9,709
|
|
|
2.7
|
|
|
5.3
|
|
|
9,793
|
|
|
2.7
|
|
|
5.4
|
|
||
Metal Service Centers and Other Metal Merchant Wholesalers
|
|
19,415
|
|
|
5.3
|
|
|
10.6
|
|
|
21,374
|
|
|
5.9
|
|
|
11.7
|
|
||
Sporting and Recreational Goods and Supplies Merchant Wholesalers
|
|
8,247
|
|
|
2.3
|
|
|
4.5
|
|
|
2,286
|
|
|
0.6
|
|
|
1.2
|
|
||
Stationary & Office Supply Merchant Wholesaler
|
|
15,770
|
|
|
4.3
|
|
|
8.6
|
|
|
15,703
|
|
|
4.3
|
|
|
8.6
|
|
||
|
|
$
|
366,075
|
|
|
100.0
|
%
|
|
200.1
|
%
|
|
$
|
362,832
|
|
|
100.0
|
%
|
|
198.3
|
%
|
|
Amortized Cost
|
|
Percentage of Net Assets
|
|
Fair Value
|
|
Percentage of Net Assets
|
||||||
Senior secured debt investments
(1)
|
$
|
196,020
|
|
|
104.1
|
%
|
|
$
|
195,112
|
|
|
103.5
|
%
|
Subordinated debt investments
|
63,031
|
|
|
33.5
|
|
|
51,198
|
|
|
27.2
|
|
||
Preferred equity
|
24,103
|
|
|
12.8
|
|
|
19,200
|
|
|
10.2
|
|
||
Common equity and warrants
|
6,821
|
|
|
3.6
|
|
|
11,989
|
|
|
6.4
|
|
||
Total investments
|
$
|
289,975
|
|
|
154.0
|
%
|
|
$
|
277,499
|
|
|
147.3
|
%
|
(1)
|
Includes debt investments in which we have entered into contractual arrangements with co‑lenders whereby, subject to certain conditions, we have agreed to receive our principal payments after the repayment of certain co‑lenders pursuant to a payment waterfall. Amortized cost and fair value of these investments was $21,709 and $21,919, respectively.
|
|
|
|
|
Percentage of Total:
|
|
|
|
Percentage of Total:
|
||||||||||||
|
|
Amortized Cost
|
|
Amortized Cost
|
|
Net Assets
|
|
Fair Value
|
|
Fair Value
|
|
Net Assets
|
||||||||
Administrative and Support and Waste Management and Remediation Services
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Security Systems Services (except Locksmiths)
|
|
$
|
15,179
|
|
|
5.2
|
%
|
|
8.1
|
%
|
|
$
|
15,145
|
|
|
5.5
|
%
|
|
8.0
|
%
|
|
|
|
Arts, Entertainment, and Recreation
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Fitness and Recreational Sports Centers
|
|
17,941
|
|
|
6.2
|
|
|
9.5
|
|
|
18,628
|
|
|
6.7
|
|
|
9.9
|
|
||
Other Amusement and Recreation Industries
|
|
6,948
|
|
|
2.4
|
|
|
3.7
|
|
|
6,948
|
|
|
2.5
|
|
|
3.7
|
|
||
Construction
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Electrical Contractors and Other Wiring Installation Contractors
|
|
18,425
|
|
|
6.4
|
|
|
9.8
|
|
|
18,505
|
|
|
6.7
|
|
|
9.8
|
|
||
Education Services
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Colleges, Universities, and Professional Schools
|
|
5,591
|
|
|
1.9
|
|
|
3.0
|
|
|
1,201
|
|
|
0.4
|
|
|
0.6
|
|
||
Finance and Insurance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Insurance Agencies and Brokerages
|
|
9,579
|
|
|
3.3
|
|
|
5.1
|
|
|
9,417
|
|
|
3.4
|
|
|
5.0
|
|
||
Offices of Real Estate Agents and Brokers
|
|
3,939
|
|
|
1.4
|
|
|
2.1
|
|
|
4,070
|
|
|
1.5
|
|
|
2.2
|
|
||
Health Care and Social Assistance
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Medical Laboratories
|
|
4,346
|
|
|
1.5
|
|
|
2.3
|
|
|
4,512
|
|
|
1.6
|
|
|
2.4
|
|
||
Offices of Physicians, Mental Health Specialists
|
|
5,547
|
|
|
1.9
|
|
|
2.9
|
|
|
5,503
|
|
|
2.0
|
|
|
2.9
|
|
||
Outpatient Mental Health and Substance Abuse Centers
|
|
7,639
|
|
|
2.6
|
|
|
4.1
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Manufacturing
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Bolt, Nut, Screw, Rivet, and Washer Manufacturing
|
|
3,873
|
|
|
1.3
|
|
|
2.1
|
|
|
3,544
|
|
|
1.3
|
|
|
1.9
|
|
||
Commercial Printing (except Screen and Books)
|
|
4,755
|
|
|
1.6
|
|
|
2.5
|
|
|
4,767
|
|
|
1.7
|
|
|
2.5
|
|
||
Other Aircraft Parts and Auxiliary Equipment Manufacturing
|
|
5,375
|
|
|
1.9
|
|
|
2.9
|
|
|
5,375
|
|
|
1.9
|
|
|
2.9
|
|
||
Pharmaceutical Preparation Manufacturing
|
|
4,040
|
|
|
1.4
|
|
|
2.1
|
|
|
8,510
|
|
|
3.1
|
|
|
4.5
|
|
||
Pump and Pumping Equipment Manufacturing
|
|
9,397
|
|
|
3.2
|
|
|
5.0
|
|
|
9,405
|
|
|
3.4
|
|
|
5.0
|
|
||
Travel Trailer and Camper Manufacturing
|
|
10,213
|
|
|
3.5
|
|
|
5.5
|
|
|
10,568
|
|
|
3.7
|
|
|
5.5
|
|
||
Truck Trailer Manufacturing
|
|
6,971
|
|
|
2.4
|
|
|
3.8
|
|
|
7,064
|
|
|
2.5
|
|
|
3.7
|
|
||
Other Services (except Public Administration)
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Automotive Oil Change and Lubrication Shops
|
|
24,748
|
|
|
8.5
|
|
|
13.1
|
|
|
24,984
|
|
|
9.0
|
|
|
13.3
|
|
||
Commercial and Industrial Machinery and Equipment (except Automotive and Electronic) Repair and Maintenance
|
|
13,677
|
|
|
4.8
|
|
|
7.3
|
|
|
12,105
|
|
|
4.4
|
|
|
6.4
|
|
||
Professional, Scientific, and Technical Services
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Computer Systems Design and Related Services
|
|
7,303
|
|
|
2.5
|
|
|
3.9
|
|
|
7,334
|
|
|
2.6
|
|
|
3.9
|
|
||
Other Accounting Services
|
|
3,526
|
|
|
1.2
|
|
|
1.9
|
|
|
4,391
|
|
|
1.6
|
|
|
2.3
|
|
||
Other Professional, Scientific, and Technical Services
|
|
23,854
|
|
|
8.2
|
|
|
12.7
|
|
|
21,266
|
|
|
7.7
|
|
|
11.3
|
|
||
Testing Laboratories
|
|
3,470
|
|
|
1.2
|
|
|
1.8
|
|
|
3,439
|
|
|
1.2
|
|
|
1.8
|
|
||
Veterinary Services
|
|
743
|
|
|
0.3
|
|
|
0.4
|
|
|
748
|
|
|
0.3
|
|
|
0.4
|
|
||
Public Administration
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Other Justice, Public Order, and Safety Activities
|
|
9,813
|
|
|
3.4
|
|
|
5.2
|
|
|
9,919
|
|
|
3.6
|
|
|
5.3
|
|
||
Real Estate and Rental and Leasing
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Home Health Equipment Rental
|
|
900
|
|
|
0.3
|
|
|
0.5
|
|
|
141
|
|
|
0.1
|
|
|
0.1
|
|
||
Office Machinery and Equipment Rental and Leasing
|
|
12,436
|
|
|
4.3
|
|
|
6.6
|
|
|
14,224
|
|
|
5.1
|
|
|
7.6
|
|
|
|
|
Retail Trade
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cosmetics, Beauty Supplies, and Perfume Stores
|
|
3,492
|
|
|
1.2
|
|
|
1.9
|
|
|
3,472
|
|
|
1.3
|
|
|
1.8
|
|
||
Shoe store
|
|
9,462
|
|
|
3.3
|
|
|
5.0
|
|
|
9,497
|
|
|
3.4
|
|
|
5.0
|
|
||
Warehouse Clubs and Supercenters
|
|
9,158
|
|
|
3.2
|
|
|
4.9
|
|
|
9,063
|
|
|
3.3
|
|
|
4.8
|
|
||
All Other General Merchandise Stores
|
|
6,607
|
|
|
2.3
|
|
|
3.5
|
|
|
6,337
|
|
|
2.3
|
|
|
3.4
|
|
||
Wholesale Trade
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Metal Service Centers and Other Metal Merchant Wholesalers
|
|
12,853
|
|
|
4.4
|
|
|
6.8
|
|
|
14,544
|
|
|
5.2
|
|
|
7.7
|
|
||
Sporting and Recreational Goods and Supplies Merchant Wholesalers
|
|
8,175
|
|
|
2.8
|
|
|
4.3
|
|
|
2,873
|
|
|
1.0
|
|
|
1.5
|
|
||
|
|
$
|
289,975
|
|
|
100.0
|
%
|
|
154.0
|
%
|
|
$
|
277,499
|
|
|
100.0
|
%
|
|
147.3
|
%
|
•
|
For each debt investment, a basic credit risk rating review process is completed. The risk rating on every credit facility is reviewed and either reaffirmed or revised by OFS Advisor’s investment committee.
|
•
|
Each portfolio company or investment is valued by OFS Advisor.
|
•
|
The preliminary valuations are documented and are then submitted to OFS Advisor’s investment committee for ratification.
|
•
|
Third-party valuation firm(s) provide valuation services as requested, by reviewing the investment committee’s preliminary valuations. OFS Advisor’s investment committee’s preliminary fair value conclusions on each of the Company’s assets for which sufficient market quotations are not readily available is reviewed and assessed by a third-party valuation firm at least once in every 12-month period, and more often as determined by the audit committee of the Company’s Board or required by the Company’s valuation policy. Such valuation assessment may be in the form of positive assurance, range of values or other valuation method based on the discretion of the Company’s Board.
|
•
|
The audit committee of the Board reviews the preliminary valuations of OFS Advisor’s investment committee and independent valuation firms and, if appropriate, recommends the approval of the valuations by the Board.
|
•
|
The Company’s Board discusses valuations and determines the fair value of each investment in the portfolio in good faith based on the input of OFS Advisor, the audit committee and, where appropriate, the respective independent valuation firm.
|
|
|
|
|
|
|
|
|
|
|
Fair Value at June 30, 2018
(1)
|
|
Valuation technique
|
|
Unobservable inputs
|
|
Range
(Weighted average) |
||
Debt investments:
|
|
|
|
|
|
|
|
|
|
Senior secured
|
$
|
205,917
|
|
|
Discounted cash flow
|
|
Discount rates
|
|
6.94% - 16.66% (13.15%)
|
|
|
|
|
|
|
|
|
|
|
Subordinated
|
63,374
|
|
|
Discounted cash flow
|
|
Discount rates
|
|
10.45% - 18.60% (14.59%)
|
|
|
2,286
|
|
|
Enterprise value
|
|
EBITDA multiple
|
|
5.25x - 8.25x (6.75x)
|
|
|
|
|
|
|
|
|
|
|
|
Equity investments:
|
|
|
|
|
|
|
|
|
|
Preferred equity
|
14,717
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
5.00x - 26.42x (7.49x)
|
|
Common equity and warrants
|
21,601
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
4.36x - 11.22x (6.41x)
|
(1)
|
Excludes
$54,937
,
$0
, and
$0
, of senior secured debt investments, subordinated debt investments, and equity investments, respectively, valued at Transaction Prices.
|
|
Fair Value at December 31, 2017
(1)
|
|
Valuation technique
|
|
Unobservable inputs
|
|
Range
(Weighted average) |
||
Debt investments:
|
|
|
|
|
|
|
|
||
Senior secured
|
$
|
152,231
|
|
|
Discounted cash flow
|
|
Discount rates
|
|
10.01% - 16.50% (12.24%)
|
|
12,910
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
7.50x - 7.50x (7.50x)
|
|
|
9,063
|
|
|
Indicative Prices
|
|
Broker-dealers' quotes
|
|
N/A
|
|
|
|
|
|
|
|
|
|
||
Subordinated
|
47,117
|
|
|
Discounted cash flow
|
|
Discount rates
|
|
11.24% - 16.90% (14.69%)
|
|
|
4,074
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
4.25x - 7.25x (6.37x)
|
|
|
|
|
|
|
|
|
|
||
Equity investments:
|
|
|
|
|
|
|
|
||
Preferred equity
|
19,200
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
4.25x - 13.48x (7.80x)
|
|
Common equity and warrants
|
11,489
|
|
|
Enterprise value
|
|
EBITDA multiples
|
|
4.25x - 8.28x (6.27x)
|
(1)
|
Excludes $20,908, $7, and $500 of senior secured debt investments, subordinated debt investments, and equity investments, respectively, valued at a Transaction Price.
|
|
|
|
|
Six Months Ended June 30, 2018
|
||||||||||||||||||
|
Senior
Secured Debt Investments |
|
Subordinated
Debt Investments |
|
Preferred Equity
|
|
Common Equity and Warrants
|
|
Total
|
||||||||||
Level 3 assets, January 1, 2018
|
$
|
195,112
|
|
|
$
|
51,198
|
|
|
$
|
19,200
|
|
|
$
|
11,989
|
|
|
$
|
277,499
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Net realized gain (loss) on investments
|
(3,076
|
)
|
|
(3,469
|
)
|
|
(1,890
|
)
|
|
(586
|
)
|
|
(9,021
|
)
|
|||||
Net unrealized appreciation (depreciation) on investments
|
1,680
|
|
|
1,861
|
|
|
205
|
|
|
5,485
|
|
|
9,231
|
|
|||||
Amortization of Net Loan Fees
|
518
|
|
|
64
|
|
|
—
|
|
|
—
|
|
|
582
|
|
|||||
Capitalized PIK interest and dividends
|
365
|
|
|
241
|
|
|
540
|
|
|
—
|
|
|
1,146
|
|
|||||
Purchase and origination of portfolio investments
|
119,355
|
|
|
20,930
|
|
|
—
|
|
|
4,928
|
|
|
145,213
|
|
|||||
Proceeds from principal payments on portfolio investments
|
(13,997
|
)
|
|
(5,164
|
)
|
|
—
|
|
|
—
|
|
|
(19,161
|
)
|
|||||
Sale and redemption of portfolio investments
|
(39,106
|
)
|
|
—
|
|
|
(3,337
|
)
|
|
(214
|
)
|
|
(42,657
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Level 3 assets, June 30, 2018
|
$
|
260,851
|
|
|
$
|
65,661
|
|
|
$
|
14,718
|
|
|
$
|
21,602
|
|
|
$
|
362,832
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||||||
|
Senior
Secured Debt Investments |
|
Subordinated
Debt Investments |
|
Preferred Equity
|
|
Common Equity and Warrants
|
|
Total
|
||||||||||
Level 3 assets, January 1, 2017
|
$
|
180,955
|
|
|
$
|
63,410
|
|
|
$
|
23,721
|
|
|
$
|
13,541
|
|
|
281,627
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Net realized gain (loss) on investments
|
—
|
|
|
—
|
|
|
—
|
|
|
558
|
|
|
558
|
|
|||||
Net unrealized appreciation (depreciation) on investments
|
(4,237
|
)
|
|
(2,354
|
)
|
|
2,679
|
|
|
(2,196
|
)
|
|
(6,108
|
)
|
|||||
Amortization of Net Loan Fees
|
628
|
|
|
41
|
|
|
—
|
|
|
—
|
|
|
669
|
|
|||||
Capitalized PIK interest, dividends, and fees
|
431
|
|
|
218
|
|
|
779
|
|
|
—
|
|
|
1,428
|
|
|||||
Purchase and origination of portfolio investments
|
71,419
|
|
|
—
|
|
|
800
|
|
|
—
|
|
|
72,219
|
|
|||||
Proceeds from principal payments on portfolio investments
|
(36,801
|
)
|
|
(14,608
|
)
|
|
—
|
|
|
—
|
|
|
(51,409
|
)
|
|||||
Sale and redemption of portfolio investments
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,058
|
)
|
|
(2,058
|
)
|
|||||
Conversion from subordinated to senior secured debt investment
|
(9,631
|
)
|
|
9,631
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Other
|
—
|
|
|
(18
|
)
|
|
—
|
|
|
—
|
|
|
(18
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Level 3 assets, June 30, 2017
|
$
|
202,764
|
|
|
$
|
56,320
|
|
|
$
|
27,979
|
|
|
$
|
9,845
|
|
|
$
|
296,908
|
|
|
|
|
Name of Portfolio Company
|
|
Investment Type
|
|
Commitment
|
||
Carolina Lubes, Inc.
|
|
Senior Secured Loan (Revolver)
|
|
$
|
1,557
|
|
Cirrus Medical Staffing, Inc.
|
|
Senior Secured Loan (Revolver)
|
|
1,280
|
|
|
The Escape Game, LLC
|
|
Senior Secured Loan
|
|
7,000
|
|
|
TRS Services, LLC
|
|
Senior Secured Loan
|
|
1,000
|
|
|
|
|
|
|
$
|
10,837
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
SBA Debentures
|
$
|
1,280
|
|
|
$
|
1,282
|
|
|
$
|
2,548
|
|
|
$
|
2,572
|
|
PWC Credit Facility
|
177
|
|
|
57
|
|
|
543
|
|
|
174
|
|
||||
Unsecured Notes
|
712
|
|
|
—
|
|
|
712
|
|
|
—
|
|
||||
Total interest expense
|
$
|
2,169
|
|
|
$
|
1,339
|
|
|
$
|
3,803
|
|
|
$
|
2,726
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Paid-in capital in excess of par
|
$
|
18
|
|
|
$
|
46
|
|
|
$
|
36
|
|
|
$
|
64
|
|
Accumulated undistributed net investment income
|
(1,629
|
)
|
|
318
|
|
|
(1,615
|
)
|
|
332
|
|
||||
Accumulated undistributed net realized gain (loss)
|
1,611
|
|
|
(364
|
)
|
|
1,579
|
|
|
(396
|
)
|
|
June 30, 2018
|
|
December 31, 2017
|
||||
Tax-basis amortized cost of investments
|
$
|
367,201
|
|
|
$
|
282,401
|
|
Tax-basis gross unrealized appreciation on investments
|
17,462
|
|
|
16,207
|
|
||
Tax-basis gross unrealized depreciation on investments
|
(21,831
|
)
|
|
(21,109
|
)
|
||
Tax-basis net unrealized depreciation on investments
|
(4,369
|
)
|
|
(4,902
|
)
|
||
Fair value of investments
|
$
|
362,832
|
|
|
$
|
277,499
|
|
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended
June 30, |
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Per share data:
|
|
|
|
|
|
|
|
||||||||
Net asset value per share at beginning of period
|
$
|
13.67
|
|
|
$
|
14.98
|
|
|
$
|
14.12
|
|
|
$
|
14.82
|
|
Distributions
(4)
|
(0.34
|
)
|
|
(0.34
|
)
|
|
(1.05
|
)
|
|
(0.68
|
)
|
||||
Net investment income
|
0.34
|
|
|
0.33
|
|
|
0.63
|
|
|
0.67
|
|
||||
Net realized gain (loss) on non-control/non-affiliate investments
|
(0.41
|
)
|
|
0.01
|
|
|
(0.37
|
)
|
|
0.01
|
|
||||
Net realized gain (loss) on affiliate investments
|
(0.26
|
)
|
|
0.07
|
|
|
(0.30
|
)
|
|
0.08
|
|
||||
Net unrealized appreciation (depreciation) on non-control/non-affiliate investments
|
0.41
|
|
|
(0.42
|
)
|
|
0.29
|
|
|
(0.75
|
)
|
||||
Net unrealized appreciation (depreciation) on affiliate investments
|
0.29
|
|
|
(0.26
|
)
|
|
0.38
|
|
|
0.06
|
|
||||
Net unrealized appreciation on control investment
|
—
|
|
|
0.09
|
|
|
—
|
|
|
0.16
|
|
||||
Issuance of common stock
|
—
|
|
|
(0.06
|
)
|
|
|
|
|
(0.03
|
)
|
||||
Other
|
|
|
|
—
|
|
|
|
|
|
0.06
|
|
||||
Net asset value per share at end of period
|
$
|
13.70
|
|
|
$
|
14.40
|
|
|
$
|
13.70
|
|
|
$
|
14.40
|
|
|
|
|
|
|
|
|
|
||||||||
Per share market value, end of period
|
$
|
11.46
|
|
|
$
|
14.31
|
|
|
$
|
11.46
|
|
|
$
|
14.31
|
|
Total return based on market value
(1)
|
5.2
|
%
|
|
3.3
|
%
|
|
5.3
|
%
|
|
9.0
|
%
|
||||
Total return based on net asset value
(2)
|
2.7
|
%
|
|
(1.6
|
)%
|
|
4.4
|
%
|
|
1.6
|
%
|
||||
Shares outstanding at end of period
|
13,350,458
|
|
|
13,331,655
|
|
|
13,350,458
|
|
|
13,331,655
|
|
||||
Weighted average shares outstanding
|
13,348,793
|
|
|
13,197,759
|
|
|
13,344,670
|
|
|
11,458,706
|
|
||||
Ratio/Supplemental Data (in thousands except ratios)
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average net asset value
(3)
|
$
|
182,691
|
|
|
$
|
168,692
|
|
|
$
|
184,573
|
|
|
$
|
160,387
|
|
Net asset value at end of period
|
$
|
182,929
|
|
|
$
|
191,996
|
|
|
$
|
182,929
|
|
|
$
|
191,996
|
|
Net investment income
|
$
|
4,558
|
|
|
$
|
4,316
|
|
|
$
|
8,374
|
|
|
$
|
7,656
|
|
Ratio of total expenses to average net assets
(5) (7)
|
12.5
|
%
|
|
8.7
|
%
|
|
11.8
|
%
|
|
10.6
|
%
|
||||
Ratio of net investment income to average net assets
(5) (8)
|
10.0
|
%
|
|
9.0
|
%
|
|
9.2
|
%
|
|
8.0
|
%
|
||||
Portfolio turnover
(6)
|
5.9
|
%
|
|
19.5
|
%
|
|
19.0
|
%
|
|
19.4
|
%
|
(1)
|
Calculation is ending market value less beginning market value, adjusting for distributions reinvested at prices obtained in the Company’s dividend reinvestment plan for the respective distributions.
|
(2)
|
Calculation is ending net asset value less beginning net asset value, adjusting for distributions reinvested at the Company’s quarter-end net asset value for the respective distributions.
|
(3)
|
Based on the average of the net asset value at the beginning of the indicated period and the preceding calendar quarter.
|
(4)
|
The components of the distributions are presented on an income tax basis. The determination of the tax attributes of the Company’s distributions is made annually as of the end of its fiscal year based upon its ICTI for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of the Company’s distributions for a full year.
|
(5)
|
Annualized.
|
(6)
|
Portfolio turnover rate is calculated using the lesser of period-to-date sales and principal payments or period-to-date purchases over the average of the invested assets at fair value.
|
(7)
|
Ratio of total expenses before incentive fee waiver to average net assets was 11.8% for the six months ended
June 30, 2018
.
|
|
|
|
(8)
|
Ratio of net investment income before incentive fee waiver to average net assets was 9.2% for the six months ended
June 30, 2018
.
|
|
|
|
Name of Portfolio Company
|
|
Investment Type(1)
|
|
Net Realized Gain (Loss)
|
|
Net change in unrealized appreciation/depreciation
|
|
Interest, Fees and
Dividends Credited to Income(2) |
|
December 31, 2017, Fair Value
|
|
Gross
Additions(3) |
|
Gross
Reductions(4) |
|
June 30, 2018, Fair Value (5)
|
||||||||||||||
Control Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
MTE Holding Corp.
|
|
Subordinated Loan
|
|
$
|
—
|
|
|
$
|
70
|
|
|
$
|
578
|
|
|
$
|
7,118
|
|
|
$
|
132
|
|
|
$
|
—
|
|
|
$
|
7,250
|
|
|
|
Common Equity
|
|
—
|
|
|
44
|
|
|
127
|
|
|
3,450
|
|
|
44
|
|
|
—
|
|
|
3,494
|
|
|||||||
|
|
|
|
—
|
|
|
114
|
|
|
705
|
|
|
10,568
|
|
|
176
|
|
|
—
|
|
|
10,744
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Control Investments
|
|
|
|
—
|
|
|
114
|
|
|
705
|
|
|
10,568
|
|
|
176
|
|
|
—
|
|
|
10,744
|
|
|||||||
Affiliate Investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
3rd Rock Gaming Holdings, LLC
|
|
Senior Secured Loan
|
|
—
|
|
|
22
|
|
|
668
|
|
|
—
|
|
|
21,714
|
|
|
(125
|
)
|
|
21,589
|
|
|||||||
|
|
Common Equity (6)(7)
|
|
—
|
|
|
(329
|
)
|
|
—
|
|
|
—
|
|
|
2,560
|
|
|
(342
|
)
|
|
2,218
|
|
|||||||
|
|
|
|
—
|
|
|
(307
|
)
|
|
668
|
|
|
—
|
|
|
24,274
|
|
|
(467
|
)
|
|
23,807
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
All Metals Holding, LLC
|
|
Senior Secured Loan
|
|
—
|
|
|
(241
|
)
|
|
1,248
|
|
|
12,759
|
|
|
6,604
|
|
|
(241
|
)
|
|
19,122
|
|
|||||||
|
|
Common Equity(6)
|
|
(87
|
)
|
|
509
|
|
|
—
|
|
|
1,785
|
|
|
768
|
|
|
(301
|
)
|
|
2,252
|
|
|||||||
|
|
|
|
(87
|
)
|
|
268
|
|
|
1,248
|
|
|
14,544
|
|
|
7,372
|
|
|
(542
|
)
|
|
21,374
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Contract Datascan Holdings, Inc.
|
|
Subordinated Loan
|
|
—
|
|
|
(2
|
)
|
|
485
|
|
|
8,000
|
|
|
2
|
|
|
(2
|
)
|
|
8,000
|
|
|||||||
|
|
Preferred Equity (7)
|
|
—
|
|
|
—
|
|
|
291
|
|
|
5,964
|
|
|
291
|
|
|
—
|
|
|
6,255
|
|
|||||||
|
|
Common Equity(6)
|
|
—
|
|
|
2,177
|
|
|
—
|
|
|
260
|
|
|
2,177
|
|
|
—
|
|
|
2,437
|
|
|||||||
|
|
|
|
—
|
|
|
2,175
|
|
|
776
|
|
|
14,224
|
|
|
2,470
|
|
|
(2
|
)
|
|
16,692
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
DRS Imaging Services, LLC
|
|
Senior Secured Loan
|
|
—
|
|
|
(51
|
)
|
|
225
|
|
|
—
|
|
|
5,348
|
|
|
(51
|
)
|
|
5,297
|
|
|||||||
|
|
Common Equity (6)
|
|
—
|
|
|
(114
|
)
|
|
—
|
|
|
—
|
|
|
454
|
|
|
(114
|
)
|
|
340
|
|
|||||||
|
|
|
|
—
|
|
|
(165
|
)
|
|
225
|
|
|
—
|
|
|
5,802
|
|
|
(165
|
)
|
|
5,637
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Jobson Healthcare Information (8)
|
|
Senior Secured Loan
|
|
(3,477
|
)
|
|
2,331
|
|
|
905
|
|
|
12,910
|
|
|
2,751
|
|
|
(15,661
|
)
|
|
—
|
|
|||||||
|
|
Common Equity (6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
Warrants (6)
|
|
(454
|
)
|
|
454
|
|
|
—
|
|
|
—
|
|
|
454
|
|
|
(454
|
)
|
|
—
|
|
|||||||
|
|
|
|
(3,931
|
)
|
|
2,785
|
|
|
905
|
|
|
12,910
|
|
|
3,205
|
|
|
(16,115
|
)
|
|
—
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Master Cutlery, LLC
|
|
Subordinated Loan
|
|
—
|
|
|
(659
|
)
|
|
111
|
|
|
2,873
|
|
|
117
|
|
|
(704
|
)
|
|
2,286
|
|
|||||||
|
|
Preferred Equity (6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
Common Equity (6)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
—
|
|
|
(659
|
)
|
|
111
|
|
|
2,873
|
|
|
117
|
|
|
(704
|
)
|
|
2,286
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Name of Portfolio Company
|
|
Investment Type(1)
|
|
Net Realized Gain (Loss)
|
|
Net change in unrealized appreciation/depreciation
|
|
Interest, Fees and
Dividends Credited to Income(2) |
|
December 31, 2017, Fair Value
|
|
Gross
Additions(3) |
|
Gross
Reductions(4) |
|
June 30, 2018, Fair Value (5)
|
||||||||||||||
NeoSystems Corp.
|
|
Subordinated Loan
|
|
—
|
|
|
(1
|
)
|
|
152
|
|
|
2,143
|
|
|
21
|
|
|
(2
|
)
|
|
2,162
|
|
|||||||
|
|
Preferred Equity (7)
|
|
—
|
|
|
(70
|
)
|
|
71
|
|
|
2,248
|
|
|
72
|
|
|
(70
|
)
|
|
2,250
|
|
|||||||
|
|
|
|
—
|
|
|
(71
|
)
|
|
223
|
|
|
4,391
|
|
|
93
|
|
|
(72
|
)
|
|
4,412
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Pfanstiehl Holdings, Inc.
|
|
Subordinated Loan
|
|
—
|
|
|
93
|
|
|
190
|
|
|
3,755
|
|
|
3,881
|
|
|
(3,792
|
)
|
|
3,844
|
|
|||||||
|
|
Common Equity
|
|
—
|
|
|
1,980
|
|
|
133
|
|
|
4,755
|
|
|
1,980
|
|
|
—
|
|
|
6,735
|
|
|||||||
|
|
|
|
—
|
|
|
2,073
|
|
|
323
|
|
|
8,510
|
|
|
5,861
|
|
|
(3,792
|
)
|
|
10,579
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Professional Pipe Holdings, LLC
|
|
Senior Secured Loan
|
|
—
|
|
|
16
|
|
|
299
|
|
|
—
|
|
|
8,341
|
|
|
—
|
|
|
8,341
|
|
|||||||
|
|
Common Equity (6)
|
|
—
|
|
|
650
|
|
|
—
|
|
|
—
|
|
|
2,064
|
|
|
—
|
|
|
2,064
|
|
|||||||
|
|
|
|
—
|
|
|
666
|
|
|
299
|
|
|
—
|
|
|
10,405
|
|
|
—
|
|
|
10,405
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
TRS Services, Inc.
|
|
Senior Secured Loan
|
|
—
|
|
|
(357
|
)
|
|
923
|
|
|
9,466
|
|
|
7,890
|
|
|
(2,966
|
)
|
|
14,390
|
|
|||||||
|
|
Preferred Equity (Class AA units)(7)
|
|
—
|
|
|
—
|
|
|
30
|
|
|
409
|
|
|
31
|
|
|
—
|
|
|
440
|
|
|||||||
|
|
Preferred Equity (Class A units)(6)(7)
|
|
—
|
|
|
(1,235
|
)
|
|
—
|
|
|
2,230
|
|
|
—
|
|
|
(1,235
|
)
|
|
995
|
|
|||||||
|
|
Common Equity (6)
|
|
—
|
|
|
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
|
|
|
|
—
|
|
|
(1,592
|
)
|
|
953
|
|
|
12,105
|
|
|
7,921
|
|
|
(4,201
|
)
|
|
15,825
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total Affiliate Investments
|
|
|
|
(4,018
|
)
|
|
5,173
|
|
|
5,731
|
|
|
69,557
|
|
|
67,520
|
|
|
(26,060
|
)
|
|
111,017
|
|
|||||||
Total Control and Affiliate Investments
|
|
|
|
$
|
(4,018
|
)
|
|
$
|
5,287
|
|
|
$
|
6,436
|
|
|
$
|
80,125
|
|
|
$
|
67,696
|
|
|
$
|
(26,060
|
)
|
|
$
|
121,761
|
|
(1)
|
Principal balance of debt investments and ownership detail for equity investments are shown in the consolidated schedule of investments. The Company's investments are generally classified as "restricted securities" as such term is defined under Regulation S-X Rule 6-03(f) or Securities Act Rule 144.
|
(2)
|
Represents the total amount of interest, fees or dividends included in income for the
six
months ended
June 30, 2018
, that an investment was included in Control or Affiliate Investment categories, respectively.
|
(3)
|
Gross additions include increases in cost basis resulting from a new portfolio investment, PIK interest, fees and dividends, accretion of OID, and net increases in unrealized net appreciation or decreases in net unrealized depreciation.
|
(4)
|
Gross reductions include decreases in the cost basis of investments resulting from principal repayments and sales, if any, and net decreases in net unrealized appreciation or net increases in unrealized depreciation.
|
(5)
|
Fair value was determined using significant unobservable inputs. See
Note 5
for further details.
|
(6)
|
Non-income producing.
|
(7)
|
Dividends credited to income include dividends contractually earned but not declared.
|
(8)
|
Jobson became an affiliate investment effective December 31, 2017, due to an increase in voting ownership interest.
|
|
|
|
|
|
Fair Value at June 30, 2018
|
|
Weighted average discount rate/EBITDA multiple at June 30, 2018
|
|
Discount rate sensitivity
|
|
EBITDA multiple sensitivity
|
||||||||||||||
Valuation Method / Investment Type
|
|
|
-10%
Weighted average |
|
+10%
Weighted average |
|
+0.5x
|
|
-0.5x
|
|||||||||||||
Discounted cash flow
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||
Senior Secured
|
|
$
|
205,917
|
|
|
13.15%
|
|
$
|
210,374
|
|
|
$
|
199,684
|
|
|
N/A
|
|
|
N/A
|
|
||
Subordinated
|
|
$
|
63,374
|
|
|
14.59%
|
|
$
|
64,667
|
|
|
$
|
61,294
|
|
|
N/A
|
|
|
N/A
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Enterprise value
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Debt investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Subordinated
|
|
$
|
2,286
|
|
|
6.75x
|
|
N/A
|
|
|
N/A
|
|
|
$
|
2,478
|
|
|
$
|
2,095
|
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Equity investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Preferred equity
|
|
$
|
14,717
|
|
|
7.49x
|
|
N/A
|
|
|
N/A
|
|
|
$
|
16,098
|
|
|
$
|
13,713
|
|
||
Common equity and warrants
|
|
$
|
21,601
|
|
|
6.41x
|
|
N/A
|
|
|
N/A
|
|
|
$
|
24,681
|
|
|
$
|
17,639
|
|
•
|
The Investment Advisory Agreement with OFS Advisor to manage our operating and investment activities. Under the Investment Advisory Agreement we have agreed to pay OFS Advisor an annual base management fee based on the average value of our total assets (other than cash and cash equivalents but including assets purchased with borrowed amounts and including assets owned by any consolidated entity) as well as an incentive fee based on our investment performance. See “Item 1–Financial Statements–
Note 3
”.
|
•
|
The Administration Agreement with OFS Services, an affiliate of OFS Advisor, to provide us with the office facilities and administrative services necessary to conduct our operations. See “Item 1–Financial Statements–
Note 3
.
|
•
|
A license agreement with OFSAM, the parent company of OFS Advisor, under which OFSAM has agreed to grant us a non-exclusive, royalty-free license to use the name “OFS.” Under this agreement, we have a right to use the “OFS” name for so long as OFS Advisor or one of its affiliates remains our investment adviser. Other than with respect to this limited license, we have no legal right to the “OFS” name. This license agreement will remain in effect for so long as the Investment Advisory Agreement with OFS Advisor is in effect.
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||
|
Amortized Cost
|
|
Fair Value
|
|
Amortized Cost
|
|
Fair Value
|
||||||||
Senior secured debt investments
(1)
|
$
|
260,078
|
|
|
$
|
260,851
|
|
|
$
|
196,020
|
|
|
$
|
195,112
|
|
Subordinated debt investments
|
75,633
|
|
|
65,661
|
|
|
63,031
|
|
|
51,198
|
|
||||
Preferred equity
|
19,416
|
|
|
14,718
|
|
|
24,103
|
|
|
19,200
|
|
||||
Common equity and warrants
|
10,948
|
|
|
21,602
|
|
|
6,821
|
|
|
11,989
|
|
||||
|
$
|
366,075
|
|
|
$
|
362,832
|
|
|
$
|
289,975
|
|
|
$
|
277,499
|
|
Total number of portfolio companies
|
42
|
|
|
42
|
|
|
37
|
|
|
37
|
|
(1)
|
Includes debt investments in which we have entered into contractual arrangements with co‑lenders whereby, subject to certain conditions, we have agreed to receive our principal payments after the repayment of certain co‑lenders pursuant to a payment waterfall. The aggregate amortized cost and fair value of these investments was
$20,970
and
$21,423
at
June 30, 2018
, respectively, and $21,709 and $21,919, at
December 31, 2017
, respectively
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||||||||||||||
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
South - US
|
$
|
144,040
|
|
|
39.4
|
%
|
|
$
|
126,123
|
|
|
43.5
|
%
|
|
$
|
148,097
|
|
|
40.8
|
%
|
|
$
|
124,699
|
|
|
44.9
|
%
|
Northeast - US
|
90,822
|
|
|
24.8
|
|
|
106,506
|
|
|
36.7
|
|
|
76,975
|
|
|
21.2
|
|
|
91,012
|
|
|
32.8
|
|
||||
West - US
|
92,396
|
|
|
25.2
|
|
|
32,976
|
|
|
11.4
|
|
|
92,529
|
|
|
25.5
|
|
|
33,097
|
|
|
11.9
|
|
||||
Midwest - US
|
38,817
|
|
|
10.6
|
|
|
20,431
|
|
|
7.0
|
|
|
45,231
|
|
|
12.5
|
|
|
24,621
|
|
|
8.9
|
|
||||
Canada
|
—
|
|
|
—
|
|
|
3,939
|
|
|
1.4
|
|
|
—
|
|
|
—
|
|
|
4,070
|
|
|
1.5
|
|
||||
Total
|
$
|
366,075
|
|
|
100.0
|
%
|
|
$
|
289,975
|
|
|
100.0
|
%
|
|
$
|
362,832
|
|
|
100.0
|
%
|
|
$
|
277,499
|
|
|
100.0
|
%
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||||||||||||||
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
Up to $4,000
|
$
|
19,980
|
|
|
6.0
|
%
|
|
$
|
28,403
|
|
|
10.9
|
%
|
|
$
|
22,076
|
|
|
6.7
|
%
|
|
$
|
24,745
|
|
|
10.1
|
%
|
$4,001 to $7,000
|
55,444
|
|
|
16.5
|
|
|
53,271
|
|
|
20.5
|
|
|
43,633
|
|
|
13.4
|
|
|
45,765
|
|
|
18.6
|
|
||||
$7,001 to $10,000
|
92,226
|
|
|
27.5
|
|
|
84,596
|
|
|
32.7
|
|
|
81,743
|
|
|
25.0
|
|
|
84,026
|
|
|
34.1
|
|
||||
$10,001 to $13,000
|
23,599
|
|
|
7.0
|
|
|
37,706
|
|
|
14.6
|
|
|
33,844
|
|
|
10.4
|
|
|
38,033
|
|
|
15.4
|
|
||||
Greater than $13,000
|
144,462
|
|
|
43.0
|
|
|
55,075
|
|
|
21.3
|
|
|
145,216
|
|
|
44.5
|
|
|
53,741
|
|
|
21.8
|
|
||||
Total
|
$
|
335,711
|
|
|
100.0
|
%
|
|
$
|
259,051
|
|
|
100.0
|
%
|
|
$
|
326,512
|
|
|
100.0
|
%
|
|
$
|
246,310
|
|
|
100.0
|
%
|
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||
|
|
Senior
Secured
|
|
Subordinated
|
|
Total
|
|
Senior
Secured
|
|
Subordinated
|
|
Total
|
||||||
Weighted Average Yield
(1)
|
|
Debt
|
|
Debt
|
|
Debt
|
|
Debt
|
|
Debt
|
|
Debt
|
||||||
Less than 8%
|
|
1.8
|
%
|
|
—
|
%
|
|
1.3
|
%
|
|
2.0
|
%
|
|
—
|
%
|
|
1.6
|
%
|
8% - 10%
|
|
6.0
|
|
|
—
|
|
|
4.9
|
|
|
26.7
|
|
|
—
|
|
|
21.1
|
|
10% - 12%
|
|
45.2
|
|
|
6.0
|
|
|
37.6
|
|
|
38.4
|
|
|
11.5
|
|
|
32.7
|
|
12% - 14%
|
|
31.2
|
|
|
62.8
|
|
|
37.4
|
|
|
10.1
|
|
|
50.8
|
|
|
18.6
|
|
Greater than 14%
|
|
15.8
|
|
|
31.2
|
|
|
18.8
|
|
|
22.8
|
|
|
37.7
|
|
|
26.0
|
|
Total
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Weighted average yield - performing debt investments
(1)
|
|
11.85
|
%
|
|
13.94
|
%
|
|
12.26
|
%
|
|
11.76
|
%
|
|
13.40
|
%
|
|
12.11
|
%
|
Weighted average yield - total debt investments
(2)
|
|
11.85
|
%
|
|
11.66
|
%
|
|
11.80
|
%
|
|
11.76
|
%
|
|
11.05
|
%
|
|
11.59
|
%
|
|
|
Three Months Ended
June 30, 2018 |
|
Six Months Ended June 30, 2018
|
||||||||||||
|
|
Debt
Investments
|
|
Equity
Investments
|
|
Debt
Investments
|
|
Equity
Investments
|
||||||||
Investments in new portfolio companies
|
|
$
|
44.2
|
|
|
$
|
—
|
|
|
$
|
112.6
|
|
|
$
|
4.6
|
|
Investments in existing portfolio companies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Follow-on investments
|
|
2.8
|
|
|
—
|
|
|
26.4
|
|
|
0.3
|
|
||||
Delayed draw and revolver funding
|
|
—
|
|
|
—
|
|
|
1.4
|
|
|
—
|
|
||||
Total investments in existing portfolio companies
|
|
2.8
|
|
|
—
|
|
|
27.8
|
|
|
0.3
|
|
||||
Total investments in new and existing portfolio
companies
|
|
$
|
47.0
|
|
|
$
|
—
|
|
|
$
|
140.4
|
|
|
$
|
4.9
|
|
Number of new portfolio company investments
|
|
5
|
|
|
—
|
|
|
13
|
|
|
4
|
|
||||
Number of existing portfolio company
investments
|
|
1
|
|
|
—
|
|
|
7
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Proceeds/distributions from principal payments/
equity investments
|
|
$
|
6.2
|
|
|
|
|
$
|
19.2
|
|
|
|
||||
Proceeds from investments sold or redeemed
|
|
11.8
|
|
|
2.4
|
|
|
38.9
|
|
|
3.5
|
|
||||
Total proceeds from principal payments, equity
distributions and investments sold
|
|
$
|
18.0
|
|
|
$
|
2.4
|
|
|
$
|
58.1
|
|
|
$
|
3.5
|
|
|
|
Three Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2017 |
||||||||||||
|
|
Debt
Investments
|
|
Equity
Investments
|
|
Debt
Investments
|
|
Equity
Investments
|
||||||||
Investments in new portfolio companies
|
|
$
|
58.8
|
|
|
$
|
0.3
|
|
|
$
|
58.8
|
|
|
$
|
0.3
|
|
Investments in existing portfolio companies
|
|
|
|
|
|
|
|
|
||||||||
Follow-on investments
|
|
6.5
|
|
|
0.5
|
|
|
12.1
|
|
|
0.5
|
|
||||
Delayed draw and revolver funding
|
|
—
|
|
|
—
|
|
|
0.5
|
|
|
—
|
|
||||
Total investments in existing portfolio companies
|
|
6.5
|
|
|
0.5
|
|
|
12.6
|
|
|
0.5
|
|
||||
Total investments in new and existing portfolio
companies
|
|
$
|
65.3
|
|
|
$
|
0.8
|
|
|
$
|
71.4
|
|
|
$
|
0.8
|
|
Number of new portfolio company investments
|
|
9
|
|
|
—
|
|
|
9
|
|
|
1
|
|
||||
Number of existing portfolio company
investments
|
|
4
|
|
|
—
|
|
|
9
|
|
|
1
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Proceeds/distributions from principal payments/
equity investments
|
|
$
|
19.4
|
|
|
$
|
—
|
|
|
$
|
51.4
|
|
|
$
|
—
|
|
Proceeds from investments sold or redeemed
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2.4
|
|
||||
Total proceeds from principal payments, equity
distributions and investments sold
|
|
$
|
19.4
|
|
|
$
|
—
|
|
|
$
|
51.4
|
|
|
$
|
2.4
|
|
|
Amortized Cost
|
|
Fair Value
|
||||||||||||||||||||||||
Risk Category
|
June 30, 2018
|
|
December 31, 2017
|
|
June 30, 2018
|
|
December 31, 2017
|
||||||||||||||||||||
1 (Low Risk)
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
|
$
|
—
|
|
|
—
|
%
|
2 (Below Average Risk)
|
3,818
|
|
|
1.1
|
|
|
3,823
|
|
|
1.5
|
|
|
3,844
|
|
|
1.2
|
|
|
3,755
|
|
|
1.5
|
|
||||
3 (Average)
|
301,135
|
|
|
89.8
|
|
|
220,332
|
|
|
85.0
|
|
|
302,503
|
|
|
92.6
|
|
|
222,027
|
|
|
90.1
|
|
||||
4 (Special Mention)
|
18,355
|
|
|
5.5
|
|
|
19,114
|
|
|
7.4
|
|
|
17,879
|
|
|
5.5
|
|
|
16,454
|
|
|
6.7
|
|
||||
5 (Substandard)
|
—
|
|
|
—
|
|
|
4,692
|
|
|
1.8
|
|
|
—
|
|
|
—
|
|
|
2,873
|
|
|
1.2
|
|
||||
6 (Doubtful)
|
12,403
|
|
|
3.7
|
|
|
11,090
|
|
|
4.3
|
|
|
2,286
|
|
|
0.7
|
|
|
1,201
|
|
|
0.5
|
|
||||
7 (Loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
|
$
|
335,711
|
|
|
100.1
|
%
|
|
$
|
259,051
|
|
|
100.0
|
%
|
|
$
|
326,512
|
|
|
100.0
|
%
|
|
$
|
246,310
|
|
|
100.0
|
%
|
•
|
the cost of calculating our net asset value, including the cost of any third-party valuation services;
|
•
|
the cost of effecting sales and repurchases of shares of our common stock and other securities;
|
•
|
fees payable to third parties relating to making investments, including out-of-pocket fees and expenses associated with performing due diligence and reviews of prospective investments;
|
•
|
transfer agent and custodial fees;
|
•
|
out-of-pocket fees and expenses associated with marketing efforts;
|
•
|
federal and state registration fees and any stock exchange listing fees;
|
•
|
U.S. federal, state and local taxes;
|
•
|
independent directors’ fees and expenses;
|
•
|
brokerage commissions;
|
•
|
fidelity bond, directors’ and officers’ liability insurance and other insurance premiums;
|
•
|
direct costs, such as printing, mailing and long-distance telephone;
|
•
|
fees and expenses associated with independent audits and outside legal costs;
|
•
|
costs associated with our reporting and compliance obligations under the 1940 Act and other applicable U.S. federal and state securities laws; and
|
•
|
other expenses incurred by either OFS Services or us in connection with administering our business.
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Investment income
|
|
|
|
|
|
|
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
||||||||
Cash interest income
|
$
|
8,971
|
|
|
$
|
6,235
|
|
|
$
|
16,684
|
|
|
$
|
12,850
|
|
Net Loan Fee amortization
|
308
|
|
|
327
|
|
|
583
|
|
|
668
|
|
||||
Other interest income
|
65
|
|
|
72
|
|
|
159
|
|
|
83
|
|
||||
Total interest income
|
9,344
|
|
|
6,634
|
|
|
17,426
|
|
|
13,601
|
|
||||
PIK income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
PIK interest income
|
233
|
|
|
335
|
|
|
606
|
|
|
649
|
|
||||
Preferred equity PIK dividends
|
201
|
|
|
397
|
|
|
540
|
|
|
780
|
|
||||
Total PIK income
|
434
|
|
|
732
|
|
|
1,146
|
|
|
1,429
|
|
||||
Dividend income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Preferred equity cash dividends
|
94
|
|
|
32
|
|
|
257
|
|
|
65
|
|
||||
Common equity dividends
|
—
|
|
|
150
|
|
|
—
|
|
|
240
|
|
||||
Total dividend income
|
94
|
|
|
182
|
|
|
257
|
|
|
305
|
|
||||
Fee income:
|
|
|
|
|
|
|
|
|
|
|
|
||||
Management, valuation and syndication
|
388
|
|
|
42
|
|
|
421
|
|
|
84
|
|
||||
Prepayment and other
|
18
|
|
|
388
|
|
|
31
|
|
|
593
|
|
||||
Total fee income
|
406
|
|
|
430
|
|
|
452
|
|
|
677
|
|
||||
Total investment income
|
10,278
|
|
|
7,978
|
|
|
19,281
|
|
|
16,012
|
|
||||
Total expenses, net of incentive fee waiver
|
5,720
|
|
|
3,662
|
|
|
10,907
|
|
|
8,356
|
|
||||
Net investment income
|
4,558
|
|
|
4,316
|
|
|
8,374
|
|
|
7,656
|
|
||||
Net gain (loss) on investments
|
437
|
|
|
(6,597
|
)
|
|
114
|
|
|
(5,071
|
)
|
||||
Net increase in net assets resulting from operations
|
$
|
4,995
|
|
|
$
|
(2,281
|
)
|
|
$
|
8,488
|
|
|
$
|
2,585
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest income and PIK interest income:
|
|
|
|
|
|
|
|
||||||||
Senior secured debt investments
|
$
|
7,421
|
|
|
$
|
5,069
|
|
|
$
|
13,771
|
|
|
$
|
10,448
|
|
Subordinated debt investments
|
2,156
|
|
|
1,900
|
|
|
4,261
|
|
|
3,802
|
|
||||
Total interest income and PIK interest income
|
9,577
|
|
|
6,969
|
|
|
18,032
|
|
|
14,250
|
|
||||
Less: acceleration of Net Loan Fees
|
(110
|
)
|
|
(128
|
)
|
|
(123
|
)
|
|
(272
|
)
|
||||
Recurring interest income and PIK interest income
|
$
|
9,467
|
|
|
$
|
6,841
|
|
|
$
|
17,909
|
|
|
$
|
13,978
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Interest expense
|
$
|
2,169
|
|
|
$
|
1,339
|
|
|
$
|
3,803
|
|
|
$
|
2,726
|
|
Management fees
|
1,548
|
|
|
1,224
|
|
|
2,908
|
|
|
2,416
|
|
||||
Incentive fee
|
1,135
|
|
|
(22
|
)
|
|
1,871
|
|
|
1,159
|
|
||||
Professional fees
|
200
|
|
|
293
|
|
|
401
|
|
|
556
|
|
||||
Administration fee
|
358
|
|
|
307
|
|
|
941
|
|
|
708
|
|
||||
Other expenses
|
310
|
|
|
521
|
|
|
1,005
|
|
|
791
|
|
||||
Total expenses before incentive fee waiver
|
5,720
|
|
|
3,662
|
|
|
10,929
|
|
|
8,356
|
|
||||
Incentive fee waiver
|
—
|
|
|
—
|
|
|
(22
|
)
|
|
—
|
|
||||
Total expenses, net of incentive fee waiver
|
$
|
5,720
|
|
|
$
|
3,662
|
|
|
$
|
10,907
|
|
|
$
|
8,356
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
PWC Credit Facility
|
$
|
7.1
|
|
|
$
|
0.7
|
|
|
$
|
14.7
|
|
|
$
|
3.2
|
|
Unsecured Notes
|
41.5
|
|
|
—
|
|
|
20.9
|
|
|
—
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||
|
2018
|
|
2017
|
|
2018
|
|
2017
|
||||||||
Senior secured debt
|
$
|
(1,675
|
)
|
|
$
|
(2,647
|
)
|
|
$
|
(1,396
|
)
|
|
$
|
(4,237
|
)
|
Subordinated debt
|
(208
|
)
|
|
(2,131
|
)
|
|
(1,608
|
)
|
|
(2,354
|
)
|
||||
Preferred equity
|
(573
|
)
|
|
(310
|
)
|
|
(1,685
|
)
|
|
2,679
|
|
||||
Common equity and warrants
|
2,893
|
|
|
(1,509
|
)
|
|
4,803
|
|
|
(1,159
|
)
|
||||
Net gain (loss) on investments
|
$
|
437
|
|
|
$
|
(6,597
|
)
|
|
$
|
114
|
|
|
$
|
(5,071
|
)
|
|
|
Six Months Ended June 30,
|
||||||
|
|
2018
|
|
2017
|
||||
Cash from net investment income
|
|
$
|
8,529
|
|
|
$
|
5,463
|
|
Cash received from realized gains
|
|
518
|
|
|
899
|
|
||
Net purchases and originations portfolio investments
|
|
(83,913
|
)
|
|
(19,309
|
)
|
||
Net cash provided by (used in) operating activities
|
|
(74,866
|
)
|
|
(12,947
|
)
|
||
|
|
|
|
|
||||
Proceeds from common stock offering, net of expenses
|
|
—
|
|
|
53,448
|
|
||
Cash distributions paid
(1)
:
|
|
|
|
|
||||
From net investment income
|
|
(9,008
|
)
|
|
(6,486
|
)
|
||
From realized gains
|
|
(4,887
|
)
|
|
(1,254
|
)
|
||
Net repayments on PWB Credit Facility
|
|
(9,600
|
)
|
|
(3,500
|
)
|
||
Net proceeds from issuance of Unsecured Notes
|
|
48,247
|
|
|
—
|
|
||
Other financing
|
|
(173
|
)
|
|
—
|
|
||
Increase (decrease) in cash and cash equivalents
|
|
$
|
(50,287
|
)
|
|
$
|
29,261
|
|
(1)
|
The determination of the tax attributes of our distributions is made annually as of the end of its fiscal year based upon its ICTI for the full year and distributions paid for the full year. Therefore, a determination made on a quarterly basis may not be representative of the actual tax attributes of our distributions for a full year. The 2018 distribution from realized gains represents a special dividend of undistributed net long-term capital gains that we realized in 2017. See "Item 1–Financial Statements–
Note 10
."
|
Class and Year
|
|
Total Amount Outstanding
(1)
|
|
Asset Coverage Ratio
(2)
|
||||
PWB Credit Facility
|
|
|
|
|
|
|||
June 30, 2018
|
|
$
|
8,000
|
|
|
406
|
%
|
|
December 31, 2017
|
|
$
|
17,600
|
|
|
1,154
|
%
|
|
Unsecured Notes
|
|
|
|
|
||||
June 30, 2018
|
|
$
|
50,000
|
|
|
406
|
%
|
|
Small Business Administration Debentures (SBIC I LP)
(3)
|
|
|
|
|
|
|||
June 30, 2018
|
|
$
|
149,880
|
|
|
$
|
—
|
|
December 31, 2017
|
|
$
|
149,880
|
|
|
$
|
—
|
|
(1)
|
Total amount of each class of senior securities outstanding at the end of the period presented.
|
(2)
|
The asset coverage ratio for a class of senior securities representing indebtedness is calculated as our consolidated total assets, less all liabilities and indebtedness not represented by senior securities, divided by total senior securities representing indebtedness.
|
(3)
|
The Small Business Administration Debentures are not subject to the asset coverage requirements of the 1940 Act as a result of exemptive relief granted to us by the SEC.
|
|
|
Payments due by period
|
||||||||||||||||||
Contractual Obligation
(1)
|
|
Total
|
|
Less than
year |
|
1-3 years (2)
|
|
3-5 years
|
|
After 5
years (2) |
||||||||||
PWB Credit Facility
|
|
$
|
8,000
|
|
|
$
|
—
|
|
|
$
|
8,000
|
|
|
|
|
|
$
|
—
|
|
|
Unsecured Notes
|
|
50,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
50,000
|
|
|||||
SBA Debentures
|
|
149,880
|
|
|
—
|
|
|
—
|
|
|
14,000
|
|
|
135,880
|
|
|||||
Total
|
|
$
|
207,880
|
|
|
$
|
—
|
|
|
$
|
8,000
|
|
|
$
|
14,000
|
|
|
$
|
185,880
|
|
(1)
|
Excludes commitments to extend credit to our portfolio companies.
|
(2)
|
The PWB Credit Facility is scheduled to mature on January 31, 2020. The SBA debentures are scheduled to mature between September 2022 and 2025. The Unsecured Notes are scheduled to mature in 2025.
|
Basis point increase
|
|
Interest income
|
|
Interest expense
|
|
Net increase
|
||||||
50
|
|
$
|
1,679
|
|
|
$
|
41
|
|
|
$
|
1,638
|
|
100
|
|
2,959
|
|
|
81
|
|
|
2,878
|
|
|||
150
|
|
4,239
|
|
|
122
|
|
|
4,117
|
|
|||
200
|
|
5,519
|
|
|
162
|
|
|
5,357
|
|
|||
250
|
|
6,799
|
|
|
203
|
|
|
6,596
|
|
Basis point decrease
|
|
Interest income
|
|
Interest expense
|
|
Net decrease
|
||||||
50
|
|
$
|
(881
|
)
|
|
$
|
41
|
|
|
$
|
(922
|
)
|
100
|
|
(2,156
|
)
|
|
—
|
|
|
(2,156
|
)
|
|||
150
|
|
(2,807
|
)
|
|
—
|
|
|
(2,807
|
)
|
|||
200
|
|
(2,893
|
)
|
|
—
|
|
|
(2,893
|
)
|
|||
250
|
|
(2,906
|
)
|
|
—
|
|
|
(2,906
|
)
|
Period
|
|
Total Number of Shares Purchased
(1)
|
|
Average Price Paid Per Share
|
|
Maximum Number (or Appropriate Dollar Value) of Shares that May Yet Be Purchased Under the Stock Repurchase Program
|
|||||
May 22, 2018 through June 30, 2018
|
|
—
|
|
|
$
|
—
|
|
|
$
|
10.0
|
|
(1)
|
Excludes shares purchased on the open market and reissued in order to satisfy the DRIP obligation.
|
|
|
|
Incorporated by Reference
|
|
|
Exhibit
Number
|
|
Description
|
Form and SEC File No.
|
Filing Date with SEC
|
Filed with this 10-Q
|
4.1
|
|
POS-EX 333-217302
|
April 16, 2018
|
|
|
|
|
|
|
|
|
4.2
|
|
POS-EX 333-217302
|
April 16, 2018
|
|
|
|
|
|
|
|
|
11.1
|
|
Computation of Per Share Earnings
|
|
|
+
|
|
|
|
|
|
|
31.1
|
|
|
|
*
|
|
|
|
|
|
|
|
31.2
|
|
|
|
*
|
|
|
|
|
|
|
|
32.1
|
|
|
|
†
|
|
|
|
|
|
|
|
32.2
|
|
|
|
†
|
+
|
Included in the consolidated statements of operations contained in this report
|
*
|
Filed herewith
|
†
|
Furnished herewith
|
Dated: August 3, 2018
|
OFS CAPITAL CORPORATION
|
|
|
|
|
|
By:
|
/s/ Bilal Rashid
|
|
Name:
|
Bilal Rashid
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
By:
|
/s/ Jeffrey A. Cerny
|
|
Name:
|
Jeffrey A. Cerny
|
|
Title:
|
Chief Financial Officer
|
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