We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
OHA Investment Corporation | NASDAQ:OHAI | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 1.315 | 1.27 | 1.32 | 0 | 01:00:00 |
|
|
|
|
OHA Investment Corporation
|
|
|
(Exact name of registrant as specified in its charter)
|
|
|
|
|
Maryland
|
|
20-1371499
|
(State or other jurisdiction of
|
|
(I.R.S. Employer
|
incorporation or organization)
|
|
Identification No.)
|
|
|
|
1114 Avenue of the Americas,
27th Floor
|
|
10036
|
New York, New York
|
|
(Zip Code)
|
(Address of principal executive
offices)
|
|
|
Large accelerated filer
o
|
Accelerated filer
o
|
Non-accelerated filer
x
|
Smaller reporting company
o
|
Emerging growth company
o
|
|
|
(Do not check if smaller reporting company)
|
|
|
Title of each class
|
|
Trading symbol
|
|
Name of each exchange on which registered
|
Common stock, $0.001 par value
|
|
OHAI
|
|
Nasdaq Global Select Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||
|
|
(unaudited)
|
|
|
||||
Assets
|
|
|
|
|
|
|
||
Investments in portfolio securities at fair value
|
|
|
|
|
|
|
||
Affiliate investments (cost: $26,028 and $26,028, respectively)
|
|
$
|
2,422
|
|
|
$
|
2,271
|
|
Non-affiliate investments (cost: $80,722 and $85,306, respectively)
|
|
59,982
|
|
|
63,335
|
|
||
Total portfolio investments (cost: $106,750 and $111,334, respectively)
|
|
62,404
|
|
|
65,606
|
|
||
Investments in U.S. Treasury Bills at fair value (cost: $9,999 and $14,989, respectively)
|
|
9,999
|
|
|
14,989
|
|
||
Total investments
|
|
72,403
|
|
|
80,595
|
|
||
Cash and cash equivalents
|
|
4,497
|
|
|
3,124
|
|
||
Accounts receivable and other current assets
|
|
492
|
|
|
499
|
|
||
Interest receivable
|
|
425
|
|
|
224
|
|
||
Other prepaid assets
|
|
34
|
|
|
19
|
|
||
Deferred tax asset
|
|
158
|
|
|
316
|
|
||
Total current assets
|
|
5,606
|
|
|
4,182
|
|
||
Total assets
|
|
$
|
78,009
|
|
|
$
|
84,777
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
|
|
||
Current liabilities
|
|
|
|
|
|
|
||
Due to broker
|
|
$
|
199
|
|
|
$
|
3,251
|
|
Distributions payable
|
|
403
|
|
|
403
|
|
||
Accounts payable and accrued expenses
|
|
1,697
|
|
|
683
|
|
||
Due to affiliate (Note 4)
|
|
122
|
|
|
571
|
|
||
Management and incentive fees payable (Note 4)
|
|
351
|
|
|
366
|
|
||
Income taxes payable
|
|
39
|
|
|
39
|
|
||
Repurchase agreement
|
|
9,800
|
|
|
14,689
|
|
||
Short-term debt, net of debt issuance costs
|
|
29,894
|
|
|
—
|
|
||
Total current liabilities
|
|
42,505
|
|
|
20,002
|
|
||
Long-term debt, net of debt issuance costs
|
|
—
|
|
|
28,866
|
|
||
Total liabilities
|
|
42,505
|
|
|
48,868
|
|
||
Commitments and contingencies (Note 6)
|
|
|
|
|
|
|
||
Net assets
|
|
|
|
|
|
|
||
Common stock, $.001 par value, 250,000,000 shares authorized; 20,172,392 and 20,172,392 shares issued and outstanding, respectively
|
|
20
|
|
|
20
|
|
||
Paid-in capital in excess of par
|
|
211,907
|
|
|
211,907
|
|
||
Total distributable earnings (loss)
|
|
(176,423
|
)
|
|
(176,018
|
)
|
||
Total net assets
|
|
35,504
|
|
|
35,909
|
|
||
Total liabilities and net assets
|
|
$
|
78,009
|
|
|
$
|
84,777
|
|
Net asset value per share
|
|
$
|
1.76
|
|
|
$
|
1.78
|
|
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
Investment income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Affiliate investments
|
|
$
|
—
|
|
|
$
|
(209
|
)
|
|
$
|
—
|
|
|
$
|
43
|
|
Payment-in-kind from affiliate investments
|
|
—
|
|
|
668
|
|
|
—
|
|
|
2,722
|
|
||||
Non-affiliate investments
|
|
1,496
|
|
|
1,360
|
|
|
4,499
|
|
|
3,807
|
|
||||
Money market interest
|
|
18
|
|
|
50
|
|
|
50
|
|
|
190
|
|
||||
Other income
|
|
4
|
|
|
17
|
|
|
18
|
|
|
34
|
|
||||
Total investment income
|
|
1,518
|
|
|
1,886
|
|
|
4,567
|
|
|
6,796
|
|
||||
Operating expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense and bank fees
|
|
620
|
|
|
767
|
|
|
1,860
|
|
|
2,391
|
|
||||
Management fees (Note 4)
|
|
305
|
|
|
397
|
|
|
925
|
|
|
1,181
|
|
||||
Incentive fees (Note 4)
|
|
(32
|
)
|
|
6
|
|
|
46
|
|
|
6
|
|
||||
Costs related to strategic alternatives review
|
|
754
|
|
|
—
|
|
|
1,063
|
|
|
75
|
|
||||
Professional fees
|
|
(31
|
)
|
|
260
|
|
|
406
|
|
|
1,120
|
|
||||
Allocation of administrative expenses from advisor (Note 4)
|
|
371
|
|
|
298
|
|
|
1,113
|
|
|
962
|
|
||||
Other general and administrative expenses
|
|
29
|
|
|
40
|
|
|
161
|
|
|
210
|
|
||||
Directors' fees
|
|
62
|
|
|
61
|
|
|
184
|
|
|
184
|
|
||||
Total operating expenses
|
|
2,078
|
|
|
1,829
|
|
|
5,758
|
|
|
6,129
|
|
||||
Waived incentive fees (Note 4)
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Income tax provision, net
|
|
—
|
|
|
7
|
|
|
15
|
|
|
45
|
|
||||
Net investment income (loss)
|
|
(560
|
)
|
|
56
|
|
|
(1,206
|
)
|
|
628
|
|
||||
Realized and unrealized gain (loss) on investments:
|
|
|
|
|
|
|
|
|
||||||||
Net realized capital gain (loss) on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Control investments
|
|
—
|
|
|
—
|
|
|
178
|
|
|
—
|
|
||||
Non-affiliate investments
|
|
—
|
|
|
—
|
|
|
451
|
|
|
(55,952
|
)
|
||||
Provision for taxes
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(39
|
)
|
||||
Total net realized capital gain (loss) on investments
|
|
—
|
|
|
3
|
|
|
629
|
|
|
(55,991
|
)
|
||||
Net unrealized appreciation on investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Affiliate investments
|
|
(110
|
)
|
|
(7,812
|
)
|
|
151
|
|
|
(10,064
|
)
|
||||
Non-affiliate investments
|
|
(429
|
)
|
|
1,804
|
|
|
1,231
|
|
|
62,218
|
|
||||
Total net unrealized appreciation (depreciation) on investments
|
|
(539
|
)
|
|
(6,008
|
)
|
|
1,382
|
|
|
52,154
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations
|
|
$
|
(1,099
|
)
|
|
$
|
(5,949
|
)
|
|
$
|
805
|
|
|
$
|
(3,209
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations per common share
|
|
$
|
(0.05
|
)
|
|
$
|
(0.29
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.16
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Distributions declared per common share
|
|
$
|
0.02
|
|
|
$
|
0.02
|
|
|
$
|
0.06
|
|
|
$
|
0.06
|
|
Weighted average shares outstanding - basic and diluted
|
|
20,172
|
|
|
20,172
|
|
|
20,172
|
|
|
20,172
|
|
|
|
Common Stock
|
|
Paid in Capital in Excess of Par
|
|
Distributable Earnings (Loss)
|
|
Total Net Assets
|
|||||||||||
|
|
Shares
|
|
Par Amount
|
|
|
|
||||||||||||
Balance at December 31, 2018
|
|
20,172,392
|
|
|
$
|
20
|
|
|
$
|
211,907
|
|
|
$
|
(176,018
|
)
|
|
$
|
35,909
|
|
Net investment loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(145
|
)
|
|
(145
|
)
|
||||
Net realized and unrealized gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,692
|
|
|
1,692
|
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(404
|
)
|
|
(404
|
)
|
||||
Balance at March 31, 2019
|
|
20,172,392
|
|
|
20
|
|
|
211,907
|
|
|
(174,875
|
)
|
|
37,052
|
|
||||
Net investment loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(501
|
)
|
|
(501
|
)
|
||||
Net realized and unrealized gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
858
|
|
|
858
|
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
(403
|
)
|
||||
Balance at June 30, 2019
|
|
20,172,392
|
|
|
20
|
|
|
211,907
|
|
|
(174,921
|
)
|
|
37,006
|
|
||||
Net investment loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(560
|
)
|
|
(560
|
)
|
||||
Net realized and unrealized loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(539
|
)
|
|
(539
|
)
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
(403
|
)
|
||||
Balance at September 30, 2019
|
|
20,172,392
|
|
|
$
|
20
|
|
|
$
|
211,907
|
|
|
$
|
(176,423
|
)
|
|
$
|
35,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
|
|
Common Stock
|
|
Paid in Capital in Excess of Par
|
|
Distributable Earnings (Loss)
|
|
Total Net Assets
|
|||||||||||
|
|
Shares
|
|
Par Amount
|
|
|
|
||||||||||||
Balance at December 31, 2017
|
|
20,172,392
|
|
|
$
|
20
|
|
|
$
|
234,553
|
|
|
$
|
(186,802
|
)
|
|
$
|
47,771
|
|
Net investment loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(95
|
)
|
|
(95
|
)
|
||||
Net realized and unrealized gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,827
|
|
|
1,827
|
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(404
|
)
|
|
(404
|
)
|
||||
Balance at March 31, 2018
|
|
20,172,392
|
|
|
20
|
|
|
234,553
|
|
|
(185,474
|
)
|
|
49,099
|
|
||||
Net investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
667
|
|
|
667
|
|
||||
Net realized and unrealized gain
|
|
—
|
|
|
—
|
|
|
—
|
|
|
340
|
|
|
340
|
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
(403
|
)
|
||||
Balance at June 30, 2018
|
|
20,172,392
|
|
|
20
|
|
|
234,553
|
|
|
(184,870
|
)
|
|
49,703
|
|
||||
Net investment income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
56
|
|
|
56
|
|
||||
Net realized and unrealized loss
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,004
|
)
|
|
(6,004
|
)
|
||||
Distributions to common stockholders
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(403
|
)
|
|
(403
|
)
|
||||
Balance at September 30, 2018
|
|
20,172,392
|
|
|
$
|
20
|
|
|
$
|
234,553
|
|
|
$
|
(191,221
|
)
|
|
$
|
43,352
|
|
|
|
For the nine months ended September 30,
|
||||||
|
|
2019
|
|
2018
|
||||
Cash flows from operating activities:
|
|
|
|
|
|
|
||
Net increase (decrease) in net assets resulting from operations
|
|
$
|
805
|
|
|
$
|
(3,209
|
)
|
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by operating activities:
|
|
|
|
|
||||
Payment-in-kind interest
|
|
—
|
|
|
(3,550
|
)
|
||
Net amortization of premiums, discounts and fees
|
|
(203
|
)
|
|
(371
|
)
|
||
Net realized capital (gain) loss on investments
|
|
(629
|
)
|
|
55,952
|
|
||
Net unrealized depreciation (appreciation) on investments
|
|
(1,382
|
)
|
|
(52,153
|
)
|
||
Purchase of investments in portfolio securities
|
|
(12,014
|
)
|
|
(25,599
|
)
|
||
Proceeds from redemption or sale of investments in portfolio securities
|
|
15,173
|
|
|
20,686
|
|
||
Proceeds from revolving loans, net of draws
|
|
369
|
|
|
16
|
|
||
Purchase of investments in U.S. Treasury Bills
|
|
(30,000
|
)
|
|
(52,000
|
)
|
||
Proceeds from redemption of investments in U.S. Treasury Bills
|
|
34,990
|
|
|
50,001
|
|
||
Proceeds from ATP production payments applied to cost basis
|
|
1,889
|
|
|
860
|
|
||
Amortization of debt issuance costs on Credit Facility
|
|
103
|
|
|
226
|
|
||
Effects of changes in operating assets and liabilities:
|
|
|
|
|
||||
Accounts receivable and other current assets
|
|
9
|
|
|
(7
|
)
|
||
Interest receivable
|
|
(201
|
)
|
|
227
|
|
||
Prepaid assets
|
|
(15
|
)
|
|
(4
|
)
|
||
Payables and accrued expenses
|
|
999
|
|
|
(477
|
)
|
||
Deferred tax asset
|
|
158
|
|
|
39
|
|
||
Due from broker
|
|
(3
|
)
|
|
—
|
|
||
Due to broker
|
|
(3,052
|
)
|
|
—
|
|
||
Due to affiliate
|
|
(449
|
)
|
|
(434
|
)
|
||
Net cash provided by (used in) operating activities
|
|
6,547
|
|
|
(9,797
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
|
||
Borrowings under credit facilities
|
|
3,000
|
|
|
—
|
|
||
Borrowings under repurchase agreement
|
|
29,394
|
|
|
50,942
|
|
||
Debt issuance cost paid
|
|
(75
|
)
|
|
(174
|
)
|
||
Repayments on Credit Facility
|
|
(2,000
|
)
|
|
(7,000
|
)
|
||
Repayments on repurchase agreement
|
|
(34,283
|
)
|
|
(48,982
|
)
|
||
Distributions to common stockholders
|
|
(1,210
|
)
|
|
(1,210
|
)
|
||
Net cash used in financing activities
|
|
(5,174
|
)
|
|
(6,424
|
)
|
||
Net change in cash and cash equivalents
|
|
1,373
|
|
|
(16,221
|
)
|
||
Cash and cash equivalents, beginning of period
|
|
3,124
|
|
|
19,939
|
|
||
Cash and cash equivalents, end of period
|
|
$
|
4,497
|
|
|
$
|
3,718
|
|
Portfolio Company
|
|
Industry Segment
|
|
Investment(1)
|
|
Acquisition Date(15)
|
|
Principal
|
|
Cost
|
|
Fair Value
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-affiliate Investments - (Less than 5% owned) - Continued
|
||||||||||||||||||
CentralSquare Technologies
|
|
Software
|
|
Second Lien Term Loan
(1M LIBOR+7.50%), 9.54%, due 8/31/2026(3) |
|
8/15/2018
|
|
$
|
2,000
|
|
|
$
|
1,953
|
|
|
$
|
1,903
|
|
Ensono
|
|
Telecommunications
|
|
Second Lien Term Loan
(1M LIBOR+9.25%), 11.29%, due 6/27/2026(3) |
|
5/3/2018
|
|
1,700
|
|
|
1,639
|
|
|
1,677
|
|
|||
Blackboard Transact
|
|
Software
|
|
Second Lien Term Loan
(3M LIBOR+8.50%), 10.76%, due 4/30/2027(2) |
|
3/7/2019
|
|
1,455
|
|
|
1,405
|
|
|
1,425
|
|
|||
Aptean
|
|
Software
|
|
Second Lien Term Loan
(3M LIBOR+8.50%), 10.60%, due 4/23/2027(2) |
|
2/25/2019
|
|
1,400
|
|
|
1,359
|
|
|
1,372
|
|
|||
MW Industries (Helix Acquisition)
|
|
Industrials
|
|
Second Lien Term Loan
(3M LIBOR+8.00%), 10.10%, due 9/29/2025(3) |
|
9/28/2017
|
|
1,400
|
|
|
1,389
|
|
|
1,340
|
|
|||
JS Held
|
|
Business Equipment and Services
|
|
First Lien Term Loan
(LIBOR+6.00%), 8.31%, due 7/1/2025(2) |
|
5/16/2019
|
|
1,248
|
|
|
1,218
|
|
|
1,235
|
|
|||
JS Held
|
|
Business Equipment and Services
|
|
Revolver
(Funded: Prime+5.00%, Unfunded: 0.5%), 10.00%, due 7/1/2025(2)(12) |
|
5/16/2019
|
|
10
|
|
|
7
|
|
|
9
|
|
|||
JS Held
|
|
Business Equipment and Services
|
|
Delayed Draw Term Loan
(Funded: LIBOR+6.00%, Unfunded: 1.0%), 8.31%, due 7/1/2025(2)(13) |
|
5/16/2019
|
|
—
|
|
|
(6
|
)
|
|
(3
|
)
|
|||
PharMerica
|
|
Healthcare
|
|
Second Lien Term Loan
(1M LIBOR+8.50% with a 1.0% floor), 10.54%, due 3/5/2027(3) |
|
2/19/2019
|
|
1,200
|
|
|
1,171
|
|
|
1,212
|
|
|||
Caliber Collision
|
|
Automotive
|
|
Second Lien Term Loan
(1M LIBOR+7.25%), 9.29%, due 2/5/2027(3) |
|
12/19/2018
|
|
1,100
|
|
|
1,082
|
|
|
1,100
|
|
|||
Vertafore, Inc.
|
|
Business Services
|
|
Second Lien Term Loan
(1M LIBOR+7.25%), 9.29%, due 7/2/2026(3) |
|
6/4/2018
|
|
900
|
|
|
892
|
|
|
888
|
|
|||
Imperial Dade
|
|
Food Services
|
|
Second Lien Term Loan
(1M LIBOR+8.00%), 10.04%, due 6/11/2027(2) |
|
5/20/2019
|
|
833
|
|
|
813
|
|
|
825
|
|
|||
Imperial Dade
|
|
Food Services
|
|
Delayed Draw Term Loan
(Funded: LIBOR+8.00%), 10.04%, due 6/11/2027(2)(14) |
|
5/20/2019
|
|
—
|
|
|
(2
|
)
|
|
(2
|
)
|
|||
Safe Fleet Holdings, LLC
|
|
Industrials
|
|
Second Lien Term Loan
(1M LIBOR+6.75% with a 1.0% floor), 8.79%, due 2/1/2026(3) |
|
1/23/2018
|
|
700
|
|
|
697
|
|
|
679
|
|
Portfolio Company
|
|
Industry Segment
|
|
Investment(1)
|
|
Acquisition Date
|
|
Principal
|
|
Cost
|
|
Fair Value
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-affiliate Investments - (Less than 5% owned) - Continued
|
||||||||||||||||||
Ardonagh(5)
|
|
Insurance
|
|
Senior Secured Notes
8.63%, due 7/15/2023(3) |
|
11/2/2018
|
|
$
|
600
|
|
|
$
|
549
|
|
|
$
|
573
|
|
ClearChoice (CC Dental Implants Intermediate)
|
|
Healthcare
|
|
First Lien Term Loan (Last Out) (1M LIBOR+6.50% with a 1.0% floor), 8.90%,
due 1/2/2023(2)(10) |
|
3/21/2018
|
|
500
|
|
|
496
|
|
|
500
|
|
|||
ClearChoice (CC Dental Implants Intermediate)
|
|
Healthcare
|
|
First Lien Revolver
(Last Out) (Funded: 1M LIBOR+6.50% with a 1.0% floor, Unfunded: 0.75%), 8.55%, due 1/2/2023(2)(9)(10) |
|
3/21/2018
|
|
—
|
|
|
(11
|
)
|
|
—
|
|
|||
MedRisk, LLC
|
|
Healthcare
|
|
Second Lien Term Loan
(1M LIBOR+6.75%), 8.79%, due 12/28/2025(3) |
|
1/25/2018
|
|
500
|
|
|
498
|
|
|
494
|
|
|||
FirstLight Fiber
|
|
Telecommunications
|
|
Second Lien Term Loan
(1M LIBOR+7.50%), 9.54%, due 7/23/2026(3) |
|
6/19/2018
|
|
400
|
|
|
396
|
|
|
397
|
|
|||
EaglePicher Technologies, LLC
|
|
Aerospace and Defense
|
|
Second Lien Term Loan
(1M LIBOR+7.25%), 9.29% due 3/9/2026(3) |
|
2/23/2018
|
|
400
|
|
|
392
|
|
|
388
|
|
|||
Edelman Financial Services, LLC
|
|
Financial Services
|
|
Second Lien Term Loan
(1M LIBOR+6.75%), 8.81%, due 7/20/2026(3) |
|
6/26/2018
|
|
300
|
|
|
299
|
|
|
300
|
|
|||
Subtotal Non-affiliate Investments - (Less than 5% owned)
|
|
|
|
|
|
|
$
|
80,722
|
|
|
$
|
59,982
|
|
|||||
Subtotal Portfolio Investments (86.2% of total investments)
|
|
|
|
|
|
|
$
|
106,750
|
|
|
$
|
62,404
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GOVERNMENT SECURITIES
|
||||||||||||||||||
U.S. Treasury Bills (CUSIP 912796SL4)(4)
|
|
1.66%
|
|
9/30/2019
|
|
$
|
10,000
|
|
|
$
|
9,999
|
|
|
$
|
9,999
|
|
||
Subtotal Government Securities (13.8% of total investments)
|
|
|
|
|
|
|
$
|
9,999
|
|
|
$
|
9,999
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
TOTAL INVESTMENTS
|
|
$
|
116,749
|
|
|
$
|
72,403
|
|
(1)
|
The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act. We pledged all of our portfolio investments, except our investments in U.S. Treasury Bills, as collateral for obligations under our Credit Facility. See Note 3 to Consolidated Financial Statements. The majority of the investments bear interest at a rate that maybe determined by reference to London Interbank Offered Rate ("LIBOR") or Prime and which reset daily, monthly, quarterly, semiannually or annually. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect as of September 30, 2019. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate investments, a spread above a reference rate is not applicable. As of September 30, 2019, the index rates for 1M LIBOR, 2M LIBOR , and 3M LIBOR are 2.02%, 2.07%, and 2.09%, respectively. The actual index rate for each investment listed may not be the applicable index rate outstanding as of September 30, 2019, as the loan may have priced or repriced based on an index rate prior to September 30, 2019. Due dates represent the contractual maturity dates. Common stock and units are non-income producing securities, unless otherwise stated.
|
(2)
|
The Audit Committee recommends fair values of each asset to our Board of Directors, which in good faith determines the final fair value for each investment. Fair value is determined using unobservable inputs (Level 3 hierarchy), unless otherwise stated. See Note 7 to the Consolidated Financial Statements.
|
(3)
|
Fair value is determined using prices with observable market inputs (Level 2 hierarchy). See Note 7 to the Consolidated Financial Statements.
|
(4)
|
Fair value is determined using prices for identical securities in active markets (Level 1 hierarchy). See Note 7 to the Consolidated Financial Statements.
|
(5)
|
We have determined that this investment is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, or the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. We monitor the status of these assets on an ongoing basis. As of September 30, 2019, 1.73% of our investment portfolio was deemed not to be "qualifying assets" under Section 55(a) of the 1940 Act.
|
(6)
|
During the fourth quarter of 2016, we executed a series of amendments to our note purchase and security agreement with OCI Holdings, LLC, or OCI, to allow the company to PIK its LIBOR+12% cash interest for November and December 2016. Also, default interest of $0.1 million and current unpaid interest of $0.4 million was added to the principal balance in the fourth quarter 2016. OCI remains in financial covenant default. During 2017, we executed a number of amendments to our note purchase and security agreement with OCI that allows the company to continue to PIK its LIBOR+12% cash interest during 2017. Through June 30, 2018, we have allowed the company to continue to PIK its 12% cash interest while paying the 2% default interest in cash. In June 2018, we executed an amendment to our note purchase and security agreement with OCI to extend its maturity date to August 31, 2019. In September 2018, we executed an amendment to our note purchase and security agreement whereby we exchanged $217,625 of cash default interest previously paid to us by the company in 2018 for PIK interest, which was added to the principal outstanding balance of the note, on and as of the date the default interest payment was originally made. This amendment also allows the company to PIK its default interest through December 31, 2018. In 2019, OCI continues to be in default and continues to PIK all of its interest, including default interest. Beginning in the 4th quarter of 2018, OCI subordinated note was placed on non-accrual status. In October 2019, we executed an amendment to our note purchase and security agreement with OCI to extend its maturity date to February 29, 2020.
|
(7)
|
Effective April 1, 2018, we discontinued income recognition on this investment and it remains on non-accrual status. All production payments received after April 1, 2018 are being applied to our cost basis and considered return of capital. Previously, ATP was on non-accrual status where income was recognized to the extent production payments were received. For more information on ATP, refer to the discussion of the ATP litigation in Note 6 to the Consolidated Financial Statements.
|
(8)
|
Non-income producing equity security.
|
(9)
|
Represents a revolving line of credit of which $1.7 million of the $1.7 million total commitment is unfunded at September 30, 2019. The revolving line of credit includes a 0.75% unused fee applied to the unfunded amount. In February 2019, ClearChoice executed an amendment to the financing agreement which increased the amount committed by OHAI under the revolving line of credit from $1.6 million to $1.7 million and modified certain other loan covenants.
|
(10)
|
Investment is entitled to skim interest which results in a higher interest rate spread of approximately 30 basis points.
|
(11)
|
Investment on non-accrual status and therefore non-income producing.
|
(12)
|
Represents a revolving line of credit of which $133 thousand of the $143 thousand total commitment is unfunded at September 30, 2019. The revolving line of credit includes a 0.5% unused fee.
|
(13)
|
Represents a delayed draw term loan with a total commitment of $306 thousand all of which is unfunded at September 30, 2019. The delayed draw term loan includes a 1.0% unused fee.
|
(14)
|
Represents a delayed draw term loan with a total commitment of $167 thousand all of which is unfunded at September 30, 2019.
|
(15)
|
Acquisition date represents the date of initial investment in the portfolio investment.
|
Portfolio Company
|
|
Industry
Segment |
|
Investment(1)
|
|
Acquisition Date(12)
|
|
Principal
|
|
Cost
|
|
Fair Value
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Non-affiliate Investments - (Less than 5% owned) - Continued
|
||||||||||||||||||
TIBCO Software, Inc.
|
|
Software
|
|
Senior Unsecured Notes,
11.38%, due 12/1/2021(3) |
|
7/7/2015
|
|
$
|
2,100
|
|
|
$
|
1,995
|
|
|
$
|
2,200
|
|
Hayward Industries, Inc.
|
|
Consumer Goods
|
|
Second Lien Term Loan
(1M LIBOR+8.25%), 10.77%, due 8/04/2025(3) |
|
7/18/2017
|
|
2,159
|
|
|
2,163
|
|
|
2,127
|
|
|||
CentralSquare Technologies
|
|
Software
|
|
Second Lien Term Loan
(1M LIBOR+7.50%), 10.02%, due 8/31/2026(3) |
|
8/15/2018
|
|
2,000
|
|
|
1,950
|
|
|
2,000
|
|
|||
Ensono
|
|
Telecommunications
|
|
Second Lien Term Loan
(1M LIBOR+9.25%), 11.77%, due 6/27/2026(3) |
|
5/3/2018
|
|
1,700
|
|
|
1,635
|
|
|
1,653
|
|
|||
MW Industries (Helix Acquisition)
|
|
Industrials
|
|
Second Lien Term Loan
(3M LIBOR+8.0%), 10.80%, due 9/29/2025(3) |
|
9/28/2017
|
|
1,400
|
|
|
1,388
|
|
|
1,379
|
|
|||
Allied Universal Holdco, LLC
|
|
Business Services
|
|
Second Lien Term Loan
(1M LIBOR+8.50% with a 1.0% floor), 11.02%, due 7/28/2023(3) |
|
3/15/2018
|
|
1,250
|
|
|
1,250
|
|
|
1,191
|
|
|||
Vertafore, Inc.
|
|
Business Services
|
|
Second Lien Term Loan
(3M LIBOR+7.25%), 10.05%, due 7/2/2026(3) |
|
6/4/2018
|
|
900
|
|
|
891
|
|
|
865
|
|
|||
Safe Fleet Holdings, LLC
|
|
Industrials
|
|
Second Lien Term Loan
(1M LIBOR+6.75% with a 1.0% floor), 9.13%, due 2/1/2026(3) |
|
1/23/2018
|
|
700
|
|
|
697
|
|
|
665
|
|
|||
Coinamatic Canada,
Inc.(5) |
|
Industrials - Laundry Equipment
|
|
Second Lien Term Loan
(1M LIBOR+7.0% with a 1.0% floor), 9.52%, due 5/14/2023(3) |
|
5/14/2015
|
|
596
|
|
|
593
|
|
|
577
|
|
|||
Ardonagh(5)
|
|
Insurance
|
|
Senior Secured Notes,
8.625%, due 7/15/2023(3) |
|
11/2/2018
|
|
600
|
|
|
541
|
|
|
513
|
|
|||
MedRisk, LLC
|
|
Healthcare
|
|
Second Lien Term Loan
(1M LIBOR+6.75%), 9.27%, due 12/28/2025(3) |
|
1/25/2018
|
|
500
|
|
|
498
|
|
|
491
|
|
|||
ClearChoice (CC Dental Implants Intermediate)
|
|
Healthcare
|
|
First Lien Term Loan (Last Out) (1M LIBOR+6.50% with a 1.0% floor), 9.13%, due 1/2/2023(2)(10)
|
|
3/21/2018
|
|
500
|
|
|
496
|
|
|
487
|
|
|||
ClearChoice (CC Dental Implants Intermediate)
|
|
Healthcare
|
|
First Lien Revolver (Last Out) (Funded: 1M LIBOR+6.50% with a 1.0% floor, Unfunded: 0.75%), 9.29%,
due 1/2/2023(2)(9)(10) |
|
3/21/2018
|
|
375
|
|
|
361
|
|
|
336
|
|
|||
FirstLight Fiber
|
|
Telecommunications
|
|
Second Lien Term Loan
(1M LIBOR+7.50%), 10.02%, due 7/23/2026(3) |
|
6/19/2018
|
|
400
|
|
|
396
|
|
|
393
|
|
Portfolio Company
|
|
Industry
Segment |
|
Investment(1)
|
|
Acquisition Date(12)
|
|
Principal
|
|
Cost
|
|
Fair Value
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Non-affiliate Investments - (Less than 5% owned) - Continued
|
||||||||||||||||||
NAVEX
|
|
Software
|
|
Second Lien Term Loan
(1M LIBOR+7.00%), 9.53%, due 9/5/2026(3) |
|
8/9/2018
|
|
$
|
400
|
|
|
$
|
396
|
|
|
$
|
386
|
|
EaglePicher Technologies, LLC
|
|
Aerospace and Defense
|
|
Second Lien Term Loan
(1M LIBOR+7.25%), 9.77%, due 3/9/2026(3) |
|
2/23/2018
|
|
300
|
|
|
298
|
|
|
294
|
|
|||
Edelman Financial Services, LLC
|
|
Financial Services
|
|
Second Lien Term Loan
(3M LIBOR+6.75%), 9.19%, due 7/20/2026(3) |
|
6/26/2018
|
|
300
|
|
|
299
|
|
|
286
|
|
|||
Subtotal Non-affiliate Investments - (Less than 5% owned)
|
|
$
|
85,306
|
|
|
$
|
63,335
|
|
||||||||||
Subtotal Portfolio Investments (81.4% of total investments)
|
|
$
|
111,334
|
|
|
$
|
65,606
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
GOVERNMENT SECURITIES
|
|
|
|
|
|
|
|
|
||||||||||
U.S. Treasury Bills (CUSIP 912796LC1)(4)
|
|
2.28%
|
|
12/21/2018
|
|
$
|
15,000
|
|
|
$
|
14,989
|
|
|
$
|
14,989
|
|
||
Subtotal Government Securities (18.6% of total investments)
|
|
|
|
|
|
$
|
14,989
|
|
|
$
|
14,989
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
TOTAL INVESTMENTS
|
|
|
|
|
|
|
|
|
|
$
|
126,323
|
|
|
$
|
80,595
|
|
(1)
|
The Company generally acquires its investments in private transactions exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). These investments are generally subject to certain limitations on resale, and may be deemed to be "restricted securities" under the Securities Act. We pledged all of our portfolio investments, except our investments in U.S. Treasury Bills, as collateral for obligations under our Credit Facility. See Note 3 to Consolidated Financial Statements. For each, the Company has provided the spread over LIBOR or Prime and the weighted average current interest rate in effect as of December 31, 2018. Certain investments are subject to a LIBOR or Prime interest rate floor. For fixed rate investments, a spread above a reference rate is not applicable. As of December 31, 2018, the index rates for 1M LIBOR, 2M LIBOR , and 3M LIBOR are 2.50%, 2.61%, and 2.81%, respectively . The actual index rate for each investment listed may not be the applicable index rate outstanding as of December 31, 2018, as the loan may have priced or repriced based on an index rate prior to December 31, 2018. Due dates represent the contractual maturity dates. Common stock and units are non-income producing securities, unless otherwise stated.
|
(2)
|
The Audit Committee recommends fair values of each asset to our Board of Directors, which in good faith determines the final fair value for each investment. Fair value is determined using unobservable inputs (Level 3 hierarchy), unless otherwise stated. See Note 10 to the Consolidated Financial Statements.
|
(3)
|
Fair value is determined using prices with observable market inputs (Level 2 hierarchy). See Note 10 to the Consolidated Financial Statements.
|
(4)
|
Fair value is determined using prices for identical securities in active markets (Level 1 hierarchy). See Note 10 to the Consolidated Financial Statements.
|
(5)
|
We have determined that this investment is not a “qualifying asset” under Section 55(a) of the Investment Company Act of 1940, or the 1940 Act. Under the 1940 Act, we may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of our total assets. The status of these assets under the 1940 Act is subject to change. We monitor the status of these assets on an ongoing basis. As of December 31, 2018, 1.4% of our investment portfolio was deemed not to be "qualifying assets" under Section 55(a) of the 1940 Act.
|
(6)
|
During the fourth quarter of 2016, we executed a series of amendments to our note purchase and security agreement with OCI Holdings, LLC, or OCI, to allow the company to PIK its LIBOR+12% cash interest for November and December 2016. Also, default interest of $0.1 million and current unpaid interest of $0.4 million was added to the principal balance in the fourth quarter 2016. OCI remains in financial covenant default. During 2017, we executed a number of amendments to our note purchase and security agreement with OCI that allows the company to continue to PIK its LIBOR+12% cash interest during 2017. Through June 30, 2018, we have allowed the company to continue to PIK its 12% cash interest while paying the 2% default interest in cash. In June 2018, we executed an amendment to our note purchase and security agreement with OCI to extend its maturity date to August 31, 2019. In September 2018, we executed an amendment to our note purchase and security agreement whereby we exchanged $217,625 of cash default interest previously paid to us by the company in 2018 for PIK interest, which was added to the principal outstanding balance of the note, on and as of the date the default interest payment was originally made. This amendment also allows the company to PIK its default interest through December 31, 2018. Beginning in the 4th quarter of 2018, OCI subordinated note was placed on non-accrual status.
|
(7)
|
Effective April 1, 2018, we discontinued income recognition on this investment and it remains on non-accrual status. All production payments received after April 1, 2018 are being applied to our cost basis and considered return of capital. Previously, ATP was on non-accrual status where income was recognized to the extent production payments were received. For more information on ATP, refer to the discussion of the ATP litigation in Note 7 to the Consolidated Financial Statements.
|
(8)
|
Non-income producing equity security.
|
(9)
|
Represents a revolving line of credit of which $1.2 million of the $1.6 million total commitment is unfunded at December 31, 2018. The revolving line of credit includes a 0.75% unused fee applied to the unfunded amount.
|
(10)
|
Investment is entitled to skim interest which results in a higher interest rate spread of approximately 28 basis points.
|
(11)
|
Investment on non-accrual status and therefore non-income producing.
|
(12)
|
Acquisition date represents the date of the initial investment in the portfolio investment.
|
|
For the nine months ended September 30,
|
||||||
Per Share Data(1)
|
2019
|
|
2018
|
||||
Net asset value, beginning of period
|
$
|
1.78
|
|
|
$
|
2.37
|
|
Net investment income (loss), net of tax
|
(0.06
|
)
|
|
0.03
|
|
||
Net realized and unrealized gain (loss) on investments
|
0.10
|
|
|
(0.19
|
)
|
||
Net increase (decrease) in net assets resulting from operations(5)
|
0.04
|
|
|
(0.16
|
)
|
||
Distributions to common stockholders
|
|
|
|
|
|||
Distributions from distributable earnings
|
—
|
|
|
(0.06
|
)
|
||
Return of capital
|
(0.06
|
)
|
|
—
|
|
||
Net decrease in net assets from distributions(5)
|
(0.06
|
)
|
|
(0.06
|
)
|
||
Net asset value, end of period(5)
|
$
|
1.76
|
|
|
$
|
2.15
|
|
|
|
|
|
||||
Market value, beginning of period
|
$
|
1.01
|
|
|
$
|
1.15
|
|
Market value, end of period
|
$
|
1.30
|
|
|
$
|
1.53
|
|
Market value return(2)(3)
|
36.6
|
%
|
|
38.0
|
%
|
||
Net asset value return(3)
|
4.9
|
%
|
|
(5.7
|
)%
|
||
|
|
|
|
||||
Ratios and Supplemental Data
|
|
|
|
|
|
||
($ and shares in thousands)
|
|
|
|
|
|
||
Net assets, end of period
|
$
|
35,504
|
|
|
$
|
43,352
|
|
Average net assets
|
$
|
36,670
|
|
|
$
|
48,462
|
|
Common shares outstanding, end of period
|
20,172
|
|
|
20,172
|
|
||
Total operating expenses and taxes/average net assets(4)
|
21.0
|
%
|
|
17.0
|
%
|
||
Net investment income (loss)/average net assets(4)
|
(4.4
|
)%
|
|
1.7
|
%
|
||
Portfolio turnover rate
|
18.9
|
%
|
|
32.9
|
%
|
||
|
|
|
|
||||
Expense Ratios (as a percentage of average net assets)(4)
|
|
|
|
|
|
||
Interest expense and bank fees
|
6.7
|
%
|
|
6.6
|
%
|
||
Management fees
|
3.4
|
%
|
|
3.2
|
%
|
||
Incentive fees
|
0.2
|
%
|
|
—
|
%
|
||
Costs related to strategic alternatives review
|
3.9
|
%
|
|
0.2
|
%
|
||
Other operating expenses, including provision for income taxes
|
6.8
|
%
|
|
7.0
|
%
|
||
Total operating expenses, including provision for income taxes
|
21.0
|
%
|
|
17.0
|
%
|
(1)
|
Per share data is based on weighted average number of common shares outstanding for the period. Per share data may not total due to rounding.
|
(2)
|
Total return based on market value is calculated as the change in market value per share during the respective periods, assuming dividends and distributions, if any, are reinvested in accordance with our dividend reinvestment plan.
|
(3)
|
Not annualized.
|
(4)
|
Annualized.
|
(5)
|
Totals may not sum due to rounding.
|
Declaration Date
|
|
Per Share
Amount
|
|
Record Date
|
|
Payment Date
|
||
May 8, 2018
|
|
$
|
0.02
|
|
|
June 30, 2018
|
|
July 9, 2018
|
September 13, 2018
|
|
0.02
|
|
|
September 30, 2018
|
|
October 9, 2018
|
|
December 12, 2018
|
|
0.02
|
|
|
December 31, 2018
|
|
January 9, 2019
|
|
March 13, 2019
|
|
0.02
|
|
|
March 28, 2019
|
|
April 9, 2019
|
|
May 7, 2019
|
|
0.02
|
|
|
June 28, 2019
|
|
July 9, 2019
|
|
September 11, 2019
|
|
0.02
|
|
|
September 30, 2019
|
|
October 9, 2019
|
•
|
maintain a Debt to Tangible Net Worth Ratio of not more than 1.00:1.00 as determined on the last day of each calendar month,
|
•
|
maintain at all times a minimum liquidity in the form of Cash or Cash Equivalents of at least $1.0 million,
|
•
|
maintain a Debt to Fair Market Value Ratio of not more than 0.50:1.00 at any time, and
|
•
|
maintain the Fair Market Value of Liquid Portfolio Investments as a percentage of outstanding aggregate principal balance to not be less than 100%.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||||||||||||
(Dollar amounts in thousands)
|
|
Cost
|
|
% of total
|
|
Fair Value
|
|
% of total
|
|
Cost
|
|
% of total
|
|
Fair Value
|
|
% of total
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Portfolio investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
First lien secured debt
|
|
$
|
1,714
|
|
|
1.5
|
%
|
|
$
|
1,735
|
|
|
2.4
|
%
|
|
$
|
496
|
|
|
0.4
|
%
|
|
$
|
487
|
|
|
0.6
|
%
|
Revolving loan facilities
|
|
(4
|
)
|
|
—
|
%
|
|
9
|
|
|
—
|
%
|
|
361
|
|
|
0.3
|
%
|
|
336
|
|
|
0.4
|
%
|
||||
Unsecured term loan
|
|
3,254
|
|
|
2.8
|
%
|
|
3,300
|
|
|
4.6
|
%
|
|
3,251
|
|
|
2.5
|
%
|
|
3,251
|
|
|
4.0
|
%
|
||||
Second lien debt
|
|
50,656
|
|
|
43.4
|
%
|
|
50,698
|
|
|
70.0
|
%
|
|
47,212
|
|
|
37.4
|
%
|
|
46,770
|
|
|
58.0
|
%
|
||||
Subordinated debt
|
|
23,528
|
|
|
20.2
|
%
|
|
2,422
|
|
|
3.4
|
%
|
|
30,523
|
|
|
24.2
|
%
|
|
9,471
|
|
|
11.8
|
%
|
||||
Limited term royalties
|
|
24,561
|
|
|
21.0
|
%
|
|
3,672
|
|
|
5.0
|
%
|
|
26,450
|
|
|
20.9
|
%
|
|
4,778
|
|
|
6.0
|
%
|
||||
Senior secured note
|
|
549
|
|
|
0.4
|
%
|
|
573
|
|
|
0.8
|
%
|
|
541
|
|
|
0.4
|
%
|
|
513
|
|
|
0.6
|
%
|
||||
Delayed draw term loan
|
|
(8
|
)
|
|
—
|
%
|
|
(5
|
)
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
|
—
|
|
|
—
|
%
|
||||
Equity securities
|
|
2,500
|
|
|
2.1
|
%
|
|
—
|
|
|
—
|
%
|
|
2,500
|
|
|
2.0
|
%
|
|
—
|
|
|
—
|
%
|
||||
Total portfolio investments
|
|
106,750
|
|
|
91.4
|
%
|
|
62,404
|
|
|
86.2
|
%
|
|
111,334
|
|
|
88.1
|
%
|
|
65,606
|
|
|
81.4
|
%
|
||||
Government securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury Bills
|
|
9,999
|
|
|
8.6
|
%
|
|
9,999
|
|
|
13.8
|
%
|
|
14,989
|
|
|
11.9
|
%
|
|
14,989
|
|
|
18.6
|
%
|
||||
Total investments
|
|
$
|
116,749
|
|
|
100.0
|
%
|
|
$
|
72,403
|
|
|
100.0
|
%
|
|
$
|
126,323
|
|
|
100.0
|
%
|
|
$
|
80,595
|
|
|
100.0
|
%
|
•
|
Investment Team Valuation. The investment professionals of our investment advisor prepare fair value recommendations for each investment.
|
•
|
Investment Team Valuation Documentation. The investment team documents and discusses its preliminary fair value recommendations with the investment committee and senior management of our investment advisor.
|
•
|
Third Party Valuation Activity. We may, at our discretion, retain an independent valuation firm to review any or all of the valuation analyses and fair value recommendations provided by the investment team of our investment advisor. Our general practice is that we have an independent valuation firm review all Level 3 investments (those whose value is determined using significant unobservable inputs) with recommended fair values in excess of $10 million on a quarterly basis, and review all Level 3 investments with recommended fair values greater than zero at least annually to provide positive assurance on our valuations.
|
•
|
Presentation to Audit Committee. Our investment advisor and senior management present the valuation analyses and fair value recommendations to the Audit Committee of our Board of Directors.
|
•
|
Board of Directors and Audit Committee. The Board of Directors and the Audit Committee review and discuss the valuation analyses and fair value recommendations provided by the investment team of our investment advisor and the independent valuation firm, if applicable.
|
•
|
Final Valuation Determination. Our Board of Directors discusses the fair values recommended by the Audit Committee and determines the fair value of each investment in our portfolio for which market quotations are not readily available, in good
|
•
|
Level 1 — Quoted unadjusted prices for identical instruments in active markets to which we have access at the date of measurement.
|
•
|
Level 2 — Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. Level 2 inputs are those in markets for which there are few transactions, the prices are not current, little public information exists or instances where prices vary substantially over time or among brokered market makers.
|
•
|
Level 3 — Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable. Unobservable inputs are those inputs that reflect our own assumptions regarding what market participants would use to price the asset or liability based on the best available information.
|
September 30, 2019
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Portfolio investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Affiliate investments
|
|
|
|
|
|
|
|
|
||||||||
Subordinated debt
|
|
$
|
2,422
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,422
|
|
Total affiliate investments
|
|
2,422
|
|
|
—
|
|
|
—
|
|
|
2,422
|
|
||||
Non-affiliate investments
|
|
|
|
|
|
|
|
|
||||||||
First lien secured debt
|
|
1,735
|
|
|
—
|
|
|
—
|
|
|
1,735
|
|
||||
Second lien debt
|
|
50,698
|
|
|
—
|
|
|
41,076
|
|
|
9,622
|
|
||||
Limited term royalties
|
|
3,672
|
|
|
—
|
|
|
—
|
|
|
3,672
|
|
||||
Senior secured notes
|
|
573
|
|
|
—
|
|
|
573
|
|
|
—
|
|
||||
Delayed draw term loan
|
|
(5
|
)
|
|
—
|
|
|
—
|
|
|
(5
|
)
|
||||
Revolving loan facilities
|
|
9
|
|
|
—
|
|
|
—
|
|
|
9
|
|
||||
Unsecured term loan
|
|
3,300
|
|
|
—
|
|
|
3,300
|
|
|
—
|
|
||||
Total non-affiliate investments
|
|
59,982
|
|
|
—
|
|
|
44,949
|
|
|
15,033
|
|
||||
Total portfolio investments
|
|
62,404
|
|
|
—
|
|
|
44,949
|
|
|
17,455
|
|
||||
Government securities
|
|
|
|
|
|
|
|
|
||||||||
U.S. Treasury Bills
|
|
9,999
|
|
|
9,999
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
|
$
|
72,403
|
|
|
$
|
9,999
|
|
|
$
|
44,949
|
|
|
$
|
17,455
|
|
December 31, 2018
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||
Portfolio investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Affiliate investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Subordinated debt
|
|
$
|
2,271
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,271
|
|
Total affiliate investments
|
|
2,271
|
|
|
—
|
|
|
—
|
|
|
2,271
|
|
||||
Non-affiliate investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
First lien secured debt
|
|
487
|
|
|
—
|
|
|
—
|
|
|
487
|
|
||||
Second lien debt
|
|
46,770
|
|
|
—
|
|
|
40,890
|
|
|
5,880
|
|
||||
Subordinated debt
|
|
7,713
|
|
|
—
|
|
|
7,713
|
|
|
—
|
|
||||
Limited term royalties
|
|
4,778
|
|
|
—
|
|
|
—
|
|
|
4,778
|
|
||||
Revolving loan facility
|
|
336
|
|
|
—
|
|
|
—
|
|
|
336
|
|
||||
Unsecured term loan
|
|
3,251
|
|
|
—
|
|
|
3,251
|
|
|
—
|
|
||||
Total non-affiliate investments
|
|
63,335
|
|
|
—
|
|
|
51,854
|
|
|
11,481
|
|
||||
Total portfolio investments
|
|
65,606
|
|
|
—
|
|
|
51,854
|
|
|
13,752
|
|
||||
Government securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
U.S. Treasury Bills
|
|
14,989
|
|
|
14,989
|
|
|
—
|
|
|
—
|
|
||||
Total investments
|
|
$
|
80,595
|
|
|
$
|
14,989
|
|
|
$
|
51,854
|
|
|
$
|
13,752
|
|
Type of Investment
|
|
Fair Value
|
|
Valuation Technique
|
|
Significant Unobservable Inputs
|
|
Range of Inputs
|
|
Weighted Average
|
||
|
|
|
|
|
|
|
|
|
|
|
||
Non-Energy Investments:
|
|
|
|
|
|
|
|
|
|
|
||
First lien debt
|
|
$
|
1,735
|
|
|
Private transaction comparables
|
|
Market yield
|
|
8.0% - 10.0%
|
|
8.4%
|
|
|
|
|
|
|
|
|
|
|
|
||
Second lien debt
|
|
9,622
|
|
|
Private transaction comparables
|
|
Market Yield
|
|
9.2% - 12.0%
|
|
10.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Subordinated debt
|
|
2,422
|
|
|
Market comparables
|
|
EBITDA multiples
|
|
4.0x - 6.0x
|
|
5.0x
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Revolving loan facilities
|
|
9
|
|
|
Market comparables
|
|
Market yield
|
|
8.0% - 11.0%
|
|
8.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Delayed draw term loans
|
|
(5
|
)
|
|
Market comparables
|
|
Precedent transaction
|
|
N/A
|
|
N/A
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
13,783
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Energy Investments:
|
|
|
|
|
|
|
|
|
|
|
||
Limited term royalties
|
|
3,672
|
|
|
Discounted cash flow(1)
|
|
Discount rate
|
|
10.0% - 20.0%
|
|
15.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
3,672
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Total Level 3 investments
|
|
$
|
17,455
|
|
|
|
|
|
|
|
|
|
•
|
the future operating results of our portfolio companies and their ability to achieve their objectives;
|
•
|
changes in regional, national or international economic conditions and their impact on the industries in which we invest;
|
•
|
disruptions in the credit and capital markets;
|
•
|
changes in the conditions of the industries in which we have invested;
|
•
|
the adequacy of our cash resources and working capital;
|
•
|
the timing of cash flows, if any, from our portfolio companies;
|
•
|
our expectations regarding the timetable for completing a transaction with Portman Ridge Finance Corporation ("PTMN"), future financial and operating results, benefits of the transaction and future opportunities of the combined company;
|
•
|
disruption to our business as a result of the transaction with PTMN;
|
•
|
other factors enumerated in our filings with the SEC; and
|
•
|
effects of current and pending legislation.
|
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||||
|
|
Weighted
Average
Yields(1)
|
|
|
|
|
|
Weighted
Average
Yields(1)
|
|
|
|
|
||||||
|
|
|
Percentage of Portfolio
|
|
|
Percentage of Portfolio
|
||||||||||||
|
|
|
Cost
|
|
Fair Value
|
|
|
Cost
|
|
Fair Value
|
||||||||
First lien secured debt
|
|
8.9
|
%
|
|
1.6
|
%
|
|
2.8
|
%
|
|
9.4
|
%
|
|
0.5
|
%
|
|
0.7
|
%
|
Second lien debt
|
|
10.2
|
%
|
|
47.5
|
%
|
|
81.2
|
%
|
|
10.5
|
%
|
|
42.4
|
%
|
|
71.3
|
%
|
Subordinated debt
|
|
—
|
%
|
|
22.0
|
%
|
|
3.9
|
%
|
|
10.3
|
%
|
|
27.4
|
%
|
|
14.4
|
%
|
Revolving loan facility
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
10.5
|
%
|
|
0.3
|
%
|
|
0.5
|
%
|
Unsecured term loan
|
|
9.3
|
%
|
|
3.1
|
%
|
|
5.3
|
%
|
|
9.1
|
%
|
|
2.9
|
%
|
|
5.0
|
%
|
Limited term royalties
|
|
—
|
%
|
|
23.0
|
%
|
|
5.9
|
%
|
|
—
|
%
|
|
23.8
|
%
|
|
7.3
|
%
|
Senior secured note
|
|
11.4
|
%
|
|
0.5
|
%
|
|
0.9
|
%
|
|
9.6
|
%
|
|
0.5
|
%
|
|
0.8
|
%
|
Delayed draw term loan
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
|
—
|
%
|
Equity securities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Membership and partnership units
|
|
—
|
%
|
|
2.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.2
|
%
|
|
—
|
%
|
Total equity securities
|
|
—
|
%
|
|
2.3
|
%
|
|
—
|
%
|
|
—
|
%
|
|
2.2
|
%
|
|
—
|
%
|
Total portfolio investments
|
|
10.1
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
10.4
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Investment Income
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Interest income
|
|
$
|
1,496
|
|
|
$
|
1,819
|
|
|
$
|
4,499
|
|
|
$
|
6,572
|
|
Other income
|
|
22
|
|
|
67
|
|
|
68
|
|
|
224
|
|
||||
Total investment income
|
|
$
|
1,518
|
|
|
$
|
1,886
|
|
|
$
|
4,567
|
|
|
$
|
6,796
|
|
Operating Expenses
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Interest expense and bank fees
|
|
$
|
620
|
|
|
$
|
767
|
|
|
$
|
1,860
|
|
|
$
|
2,391
|
|
Management fees
|
|
305
|
|
|
397
|
|
|
925
|
|
|
1,181
|
|
||||
Incentive fees
|
|
(32
|
)
|
|
6
|
|
|
46
|
|
|
6
|
|
||||
Costs related to strategic alternatives review
|
|
754
|
|
|
—
|
|
|
1,063
|
|
|
75
|
|
||||
Professional fees
|
|
(31
|
)
|
|
260
|
|
|
406
|
|
|
1,120
|
|
||||
Allocation of administrative expenses from advisor
|
|
371
|
|
|
298
|
|
|
1,113
|
|
|
962
|
|
||||
Other general and administrative expenses
|
|
29
|
|
|
40
|
|
|
161
|
|
|
210
|
|
||||
Directors fees
|
|
62
|
|
|
61
|
|
|
184
|
|
|
184
|
|
||||
Operating expenses before incentive fee waiver
|
|
$
|
2,078
|
|
|
$
|
1,829
|
|
|
$
|
5,758
|
|
|
$
|
6,129
|
|
Incentive fee waiver
|
|
—
|
|
|
(6
|
)
|
|
—
|
|
|
(6
|
)
|
||||
Total operating expenses, net of incentive fee waiver
|
|
$
|
2,078
|
|
|
$
|
1,823
|
|
|
$
|
5,758
|
|
|
$
|
6,123
|
|
Net Investment Income (Loss)
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net investment income (loss)
|
|
$
|
(560
|
)
|
|
$
|
56
|
|
|
$
|
(1,206
|
)
|
|
$
|
628
|
|
Net investment income (loss) per common share
|
|
$
|
(0.03
|
)
|
|
$
|
—
|
|
|
$
|
(0.06
|
)
|
|
$
|
0.03
|
|
Net Realized Gains and Losses
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net realized capital gain (loss) on investments
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
629
|
|
|
$
|
(55,952
|
)
|
Provision for taxes on realized loss
|
|
—
|
|
|
3
|
|
|
—
|
|
|
(39
|
)
|
||||
Net realized capital gains (losses)
|
|
$
|
—
|
|
|
$
|
3
|
|
|
$
|
629
|
|
|
$
|
(55,991
|
)
|
Net realized capital gains (losses) per common share
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.03
|
|
|
$
|
(2.78
|
)
|
Net Unrealized Appreciation (Depreciation) on Investments
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Affiliate investments
|
|
$
|
(110
|
)
|
|
$
|
(7,812
|
)
|
|
$
|
151
|
|
|
$
|
(10,064
|
)
|
Non-affiliate investments
|
|
(429
|
)
|
|
1,804
|
|
|
1,231
|
|
|
62,218
|
|
||||
Net unrealized appreciation (depreciation) on investments
|
|
$
|
(539
|
)
|
|
$
|
(6,008
|
)
|
|
$
|
1,382
|
|
|
$
|
52,154
|
|
Net unrealized appreciation (depreciation) on investments per common share
|
|
$
|
(0.03
|
)
|
|
$
|
(0.30
|
)
|
|
$
|
0.07
|
|
|
$
|
2.59
|
|
Net Increase (Decrease) in Net Assets Resulting from Operations
|
|
For the three months ended September 30,
|
|
For the nine months ended September 30,
|
||||||||||||
(in thousands, except per share data)
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net increase (decrease) in net assets resulting from operations
|
|
$
|
(1,099
|
)
|
|
$
|
(5,949
|
)
|
|
$
|
805
|
|
|
$
|
(3,209
|
)
|
Net increase (decrease) in net assets resulting from operations per common share
|
|
$
|
(0.05
|
)
|
|
$
|
(0.29
|
)
|
|
$
|
0.04
|
|
|
$
|
(0.16
|
)
|
•
|
maintain a Debt to Tangible Net Worth Ratio of not more than 1.00:1.00 as determined on the last day of each calendar month,
|
•
|
maintain at all times a minimum liquidity in the form of Cash or Cash Equivalents of at least $1.0 million,
|
•
|
maintain a Debt to Fair Market Value Ratio of not more than 0.50:1.00 at any time, and
|
•
|
maintain the Fair Market Value of Liquid Portfolio Investments as a percentage of outstanding aggregate principal balance to not be less than 100%.
|
Non-accruing and non-income producing investments
|
|
September 30, 2019
|
|
December 31, 2018
|
||||||||||||
(in thousands)
|
|
Cost
|
|
Fair Value
|
|
Cost
|
|
Fair Value
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Non-accruing investments
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
ATP Oil & Gas Corporation/Bennu Oil & Gas, LLC (non-accrual cash basis July 2015; full non-accrual April 2018)
|
|
$
|
24,561
|
|
|
$
|
3,672
|
|
|
$
|
26,450
|
|
|
$
|
4,778
|
|
OCI Holdings, LLC (non-accrual October 2018)
|
|
23,528
|
|
|
2,422
|
|
|
23,528
|
|
|
2,271
|
|
||||
Total non-accruing investments
|
|
$
|
48,089
|
|
|
$
|
6,094
|
|
|
$
|
49,978
|
|
|
$
|
7,049
|
|
|
|
|
|
|
|
|
|
|
||||||||
Non-income producing investments
|
|
|
|
|
|
|
|
|
||||||||
OHA/OCI Investments, LLC Class A Units
|
|
$
|
2,500
|
|
|
$
|
—
|
|
|
$
|
2,500
|
|
|
$
|
—
|
|
Total non-income producing investments
|
|
$
|
2,500
|
|
|
$
|
—
|
|
|
$
|
2,500
|
|
|
$
|
—
|
|
Total non-accruing and non-income producing investments
|
|
$
|
50,589
|
|
|
$
|
6,094
|
|
|
$
|
52,478
|
|
|
$
|
7,049
|
|
Credit facilities(1)
|
|
Total
|
|
Less than
1 Year
|
|
1-3 Years
|
|
3-5 Years
|
|
More than
5 Years
|
||||||||||
Credit Facility(2)
|
|
$
|
30,000
|
|
|
$
|
30,000
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Repurchase Agreement(3)
|
|
9,800
|
|
|
9,800
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total
|
|
$
|
39,800
|
|
|
$
|
39,800
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
OHA INVESTMENT CORPORATION
|
|
|
|
|
|
Date:
|
November 12, 2019
|
By:
|
/s/ STEVEN T. WAYNE
|
|
|
|
Steven T. Wayne
|
|
|
|
President and Chief Executive Officer
|
|
|
|
|
Date:
|
November 12, 2019
|
By:
|
/s/ CORY E. GILBERT
|
|
|
|
Cory E. Gilbert
|
|
|
|
Chief Financial Officer and Treasurer
|
Exhibit No.
|
|
Exhibit
|
|
|
|
31.1
|
|
|
31.2
|
|
|
32.1
|
|
|
32.2
|
|
1 Year OHA Investment Chart |
1 Month OHA Investment Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions