UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

FOR THE QUARTER ENDED MARCH 31, 2008

 

o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

COMMISSION FILE NUMBER: 814-00237

 

GLADSTONE CAPITAL CORPORATION

(Exact name of registrant as specified in its charter)

 

MARYLAND

 

54-2040781

(State or other jurisdiction of incorporation or organization)

 

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

 

 

 

1521 WESTBRANCH DRIVE, SUITE 200

MCLEAN, VIRGINIA 22102

(Address of principal executive office)

 

 

 

(703) 287-5800

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.

 

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

 

Large accelerated filer o  Accelerated filer x  Non-accelerated filer o Smaller reporting company o.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o  No x .

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.  The number of shares of the issuer’s Common Stock, $0.001 par value, outstanding as of May 5, 2008 was 21,087,574.

 

 



 

GLADSTONE CAPITAL CORPORATION

 

TABLE OF CONTENTS

 

PART I.

FINANCIAL INFORMATION

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2008 and September 30, 2007

 

Consolidated Schedules of Investments as of March 31, 2008 and September 30, 2007

 

Consolidated Statements of Operations for the three and six months ended March 31, 2008 and 2007

 

Consolidated Statements of Changes in Net Assets for the six months ended March 31, 2008 and 2007

 

Consolidated Statements of Cash Flows for the six months ended March 31, 2008 and 2007

 

Financial Highlights for the three and six months ended March 31, 2008 and 2007

 

Notes to Consolidated Financial Statements

 

 

Item 2.

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

 

Overview

 

Results of Operations

 

Liquidity and Capital Resources

 

 

Item 3.

Quantitative and Qualitative Disclosure About Market Risk

 

 

Item 4.

Controls and Procedures

 

 

PART II.

OTHER INFORMATION

 

 

Item 1.

Legal Proceedings

 

 

Item 1A.

Risk Factors

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

 

Item 3.

Defaults Upon Senior Securities

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

 

 

Item 5.

Other Information

 

 

Item 6.

Exhibits

 

 

SIGNATURES

 

 

 



 

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(Unaudited)

 

 

 

March 31,

 

September 30,

 

 

 

2008

 

2007

 

ASSETS

 

 

 

 

 

Non-Control/Non-Affiliate investments (Cost 3/31/08: $438,864,462; 9/30/07: $354,835,652)

 

$

412,286,047

 

$

348,920,982

 

Control investments (Cost 3/31/08: $3,531,250; 9/30/07: $923,548)

 

451,389

 

923,548

 

Total investments at fair value (Cost 3/31/08: $442,395,712; 9/30/07 $355,759,200)

 

412,737,436

 

349,844,530

 

Cash and cash equivalents

 

6,916,356

 

8,838,658

 

U.S. Treasury bill

 

 

2,484,464

 

Interest receivable – investments in debt securities

 

3,314,982

 

2,425,555

 

Interest receivable – employees

 

7,604

 

21,417

 

Due from custodian

 

3,070,386

 

3,230,385

 

Deferred financing fees

 

255,262

 

186,270

 

Prepaid assets

 

279,730

 

337,106

 

Other assets

 

265,602

 

360,753

 

TOTAL ASSETS

 

$

426,847,358

 

$

367,729,138

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Accounts payable

 

$

17,447

 

$

6,013

 

Interest payable

 

367,165

 

587,514

 

Fee due to Administrator (Refer to Note 4)

 

240,579

 

237,510

 

Fees due to Adviser (Refer to Note 4)

 

692,985

 

708,517

 

Borrowings under lines of credit

 

123,459,000

 

144,440,000

 

Accrued expenses and deferred liabilities

 

998,040

 

790,849

 

Funds held in escrow

 

223,543

 

 

TOTAL LIABILITIES

 

125,998,759

 

146,770,403

 

NET ASSETS

 

$

300,848,599

 

$

220,958,735

 

 

 

 

 

 

 

ANALYSIS OF NET ASSETS

 

 

 

 

 

Common stock, $0.001 par value, 50,000,000 shares authorized and 21,087,574 and 14,762,574 shares issued and outstanding, respectively

 

$

21,088

 

$

14,763

 

Capital in excess of par value

 

341,411,120

 

235,906,665

 

Notes receivable – employees

 

(9,181,676

)

(9,230,502

)

Net unrealized depreciation on investments

 

(29,658,276

)

(5,914,670

)

Unrealized depreciation on derivative

 

(303,995

)

(291,686

)

(Distributions in excess of) accumulated undistributed net investment income

 

(1,439,662

)

474,165

 

TOTAL NET ASSETS

 

$

300,848,599

 

$

220,958,735

 

NET ASSETS PER SHARE

 

$

14.27

 

$

14.97

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONSOLIDATED FINANCIAL STATEMENTS.

 

2



 

GLADSTONE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

AS OF MARCH 31, 2008

(UNAUDITED)

 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

NON-CONTROL/NON-AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Access Television

 

Service-cable airtime

 

Senior Term Debt (6)

 

$

 2,432,568

 

$

 2,316,492

 

Network, Inc. (2)

 

(infomercials)

 

(9.3% Due 3/2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ACE Expediters, Inc

 

Service - over-the-ground

 

Line of Credit (5)(9)

 

 

 

 

 

logistics

 

(7.1% Due 1/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (5)

 

13,121,941

 

13,121,941

 

 

 

 

 

(11.4% Due 1/2012)

 

 

 

 

 

 

 

 

 

Warrants (5) (8)

 

200,000

 

200,000

 

 

 

 

 

 

 

 

 

 

 

ActivStyle Acquisition Co. (2)

 

Service-medical products

 

Line of Credit (6) (10)

 

1,100,000

 

1,068,375

 

 

 

distribution

 

(7.4%, Due 7/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

4,982,750

 

4,839,496

 

 

 

 

 

(8.5%, Due 9/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,435,000

 

4,257,600

 

 

 

 

 

(10.5%, Due 9/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allison Publications, LLC (2)

 

Service-publisher of consumer

 

Line of Credit (11)

 

 

 

 

 

oriented magazines

 

(9.0%, Due 12/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

11,075,078

 

10,780,000

 

 

 

 

 

(9.0%, Due 12/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anitox Acquisition Company (2)

 

Manufacturing-preservatives for animal feed

 

Senior Real Estate Term Debt (6)

 

3,104,272

 

2,983,500

 

 

 

 

 

(8.8%, Due 1/2012)

 

 

 

 

 

 

 

 

 

Line of Credit (12)

 

2,000,000

 

1,950,000

 

 

 

 

 

(7.4%, Due 1/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

2,650,000

 

2,583,750

 

 

 

 

 

(8.5%, Due 1/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

2,750,000

 

2,646,875

 

 

 

 

 

(10.5%, Due 1/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Badanco Acquisition Corp.

 

Service-luggage design and distribution

 

Senior Subordinated Term Debt (6)

 

9,555,000

 

9,340,013

 

 

 

 

 

(11.5%, Due 7/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bresnan Communications, LLC

 

Service-telecommunications

 

Senior Term Debt (7)

 

3,001,646

 

2,677,500

 

 

 

 

 

(5.0%, Due 9/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

1,509,232

 

1,305,000

 

 

 

 

 

(7.5%, Due 3/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CCS, LLC

 

Service-cable tv franchise owner

 

Senior Term Debt (6)

 

3,426,892

 

3,298,383

 

 

 

 

 

(9.3%, Due 3/2008)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CHG Companies, Inc. (2)

 

Service-healthcare staffing

 

Letter of Credit (6) (7)

 

400,000

 

354,000

 

 

 

 

 

(4.9%, Due 12/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6) (7)

 

1,584,000

 

1,401,840

 

 

 

 

 

(5.5%, Due 12/2012)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (6) (7)

 

500,000

 

415,000

 

 

 

 

 

(11.2%, Due 12/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chinese Yellow Pages Company

 

Service-publisher of Chinese

 

Line of Credit (6) (13)

 

855,071

 

827,281

 

 

 

language directories

 

(9.3%, Due 9/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

793,974

 

757,977

 

 

 

 

 

(9.3%, Due 9/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clinton Holdings, LLC (2)

 

Distribution-aluminum sheets and stainless steel

 

Senior Subordinated Term Debt (5)

 

15,500,000

 

15,500,000

 

 

 

 

 

(12.0%, Due 1/2013)

 

 

 

 

 

 

 

 

 

Common Stock Warrants (8)

 

109,124

 

 

 

3



 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

CMI Acquisition, LLC (2)

 

Service-recycling

 

Senior Subordinated Term Debt (6)

 

$

 6,500,000

 

$

 6,142,500

 

 

 

 

 

(11.9%, Due 11/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Community Media Corporation

 

Service-publisher of free weekly

 

Senior Term Debt (6)

 

2,919,122

 

2,816,061

 

 

 

newspapers

 

(7.3%, Due 8/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Country Road
Communications LLC (2)

 

Service-telecommunications

 

Senior Subordinated Term Debt (6) (7)

 

5,970,072

 

5,820,000

 

 

 

 

 

(12.6%, Due 7/2013)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Defiance Acquisition

 

Manufacturing-trucking parts

 

Senior Term Debt (3) (6) (14)

 

6,325,000

 

6,011,280

 

Corporation

 

 

 

(11.1%, Due 4/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Doe & Ingalls Management

 

Distributor-specialty chemicals

 

Senior Term Debt (6)

 

3,500,000

 

3,447,500

 

LLC (2)

 

 

 

(7.5%, Due 11/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,432,500

 

4,332,769

 

 

 

 

 

(7.6%, Due 11/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Emdeon Business Services,

 

Service-healthcare technology

 

Senior Term Debt (7)

 

2,371,625

 

2,144,318

 

Inc.

 

solutions

 

(4.7%, Due 11/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

2,011,984

 

1,720,000

 

 

 

 

 

(7.7%, Due 5/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Express Courier International,

 

Service-ground delivery and

 

Line of Credit (6) (15)

 

900,000

 

886,500

 

Inc.

 

logistics

 

(7.4%, Due 6/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

3,642,500

 

3,587,863

 

 

 

 

 

(8.5%, Due 6/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,194,150

 

4,110,267

 

 

 

 

 

(10.5%, Due 6/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Finn Corporation

 

Manufacturing-landscape

 

Common Stock Warrants (8)

 

37,000

 

3,192,483

 

 

 

equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GFRC Holdings LLC

 

Manufacturing-glass-fiber

 

Line of Credit (6) (16)

 

 

 

 

 

reinforced concrete

 

(7.4%, Due 12/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

7,750,000

 

7,653,125

 

 

 

 

 

(10.0%, Due 12/2012)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (3) (6)

 

6,750,000

 

6,615,000

 

 

 

 

 

(12.5%, Due 12/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Materials

 

Manufacturing-steel wool

 

Senior Term Debt (3) (6)

 

4,970,000

 

4,646,950

 

Technologies, Inc.

 

products and metal fibers

 

(13.0%, Due 11/2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GTM Holdings, Inc. (2)

 

Manufacturing-socks

 

Senior Term Debt (7)

 

493,750

 

392,531

 

 

 

 

 

(6.0%, Due 10/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

500,000

 

350,000

 

 

 

 

 

(9.3%, Due 4/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Greatwide Logistics

 

Service - logistics and

 

Senior Term Debt (7)

 

3,950,000

 

3,081,000

 

Services, Inc.

 

transportation

 

(6.2%, Due 12/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

4,000,000

 

2,720,000

 

 

 

 

 

(9.2%, Due 6/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GS Maritime Intermediate
Holdings LLC

 

Service-cargo transport

 

Senior Subordinated Term Debt (7)

 

1,000,000

 

980,000

 

 

 

 

 

(10.2%, Due 12/2013)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Harrington Holdings, Inc. (2)

 

Service - healthcare products

 

Senior Term Debt (7)

 

2,475,000

 

2,215,125

 

 

 

distribution

 

(5.0%, Due 1/2014)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

5,000,000

 

4,000,000

 

 

 

 

 

(8.7%, Due 1/2014)

 

 

 

 

 

 

4



 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Heartland Communications

 

Service-radio station operator

 

Line of Credit (6) (17)

 

$

105,000

 

$

 89,775

 

Group, LLC (2)

 

 

 

(10.0%, Due 12/2008)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

4,686,089

 

3,968,367

 

 

 

 

 

(10.0%, Due 5/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interfilm Holdings, Inc.

 

Service-slitter and distributor of

 

Senior Term Debt (6)

 

5,000,000

 

4,887,500

 

 

 

plastic films

 

(10.5%, Due 10/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

IJGT Acquisition Company

 

Service-golf training

 

Line of Credit (6) (18)

 

1,050,000

 

1,021,125

 

 

 

 

 

(8.9%, Due 5/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

2,650,000

 

2,583,750

 

 

 

 

 

(7.4%, Due 5/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

2,500,000

 

2,412,500

 

 

 

 

 

(10.5%, Due 5/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

It’s Just Lunch International,

 

Service-dating service

 

Line of Credit (6) (19)

 

550,000

 

357,500

 

LLC

 

 

 

(7.1%, Due 6/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

3,300,000

 

2,145,000

 

 

 

 

 

(7.4%, Due 6/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6) (19)

 

500,000

 

325,000

 

 

 

 

 

(10.5%, Due 6/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

John Henry Holdings, Inc. (2)

 

Manufacturing-packaging products

 

Senior Subordinated Term Debt (7)

 

8,000,000

 

7,200,000

 

 

 

 

 

(11.6%, Due 6/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Kinetek Acquisition Corp.

 

Manufacturing-custom

 

Senior Term Debt (7)

 

1,486,284

 

1,355,344

 

 

 

engineered motors & controls

 

(5.2%, Due 11/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

1,508,192

 

1,350,000

 

 

 

 

 

(8.2%, Due 5/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

KMBQ Corporation

 

Service-AM/FM radio

 

Line of Credit (6) (20)

 

152,000

 

143,640

 

 

 

broadcaster

 

(10.3%, Due 3/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

1,795,942

 

1,683,042

 

 

 

 

 

(10.3%, Due 3/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lindmark Outdoor Advertising LLC

 

Service-advertising

 

Senior Subordinated Term Debt (6)

 

10,000,000

 

9,787,500

 

 

 

 

 

(11.0%, Due 10/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LocalTel, Inc.

 

Service-yellow pages

 

Line of Credit (6) (21) (30)

 

1,170,000

 

234,000

 

 

 

publishing

 

(non-accrual, Due 6/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6) (30)

 

2,687,500

 

537,500

 

 

 

 

 

(non-accrual, Due 6/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6) (30)

 

2,750,000

 

550,000

 

 

 

 

 

(non-accrual, Due 6/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Macfadden Performing Arts

 

Service-magazine publisher

 

Line of Credit (6) (22)

 

1,015,979

 

985,500

 

Media, LLC

 

 

 

(7.8%, Due 6/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

6,416,668

 

6,174,050

 

 

 

 

 

(7.8%, Due 6/2009)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Meteor Holding Corporation (2)

 

Manufacturing-bar code

 

Senior Term Debt (7)

 

2,336,400

 

2,126,124

 

 

 

scanning and data capture

 

(5.7%, Due 12/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

1,500,000

 

1,350,000

 

 

 

 

 

(9.0%, Due 12/2013)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Multi-Ag Media LLC (2)

 

Service-dairy magazine

 

Senior Term Debt (6)

 

2,328,358

 

2,256,882

 

 

 

publisher/information database

 

(9.3%, Due 12/2009)

 

 

 

 

 

 

5



 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Newhall Holdings, Inc. (2)

 

Service-distributor of personal

 

Line of Credit (6) (23)

 

$

 —

 

$

 —

 

 

 

care products and supplements

 

(6.6%, Due 5/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,410,000

 

4,310,775

 

 

 

 

 

(8.3%, Due 5/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,500,000

 

4,365,000

 

 

 

 

 

(11.3%, Due 5/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northern Contours, Inc. (2)

 

Manufacturing-veneer and laminate components

 

Senior Subordinated Term Debt (6)

 

7,000,000

 

6,615,000

 

 

 

 

 

(10.1%, Due 5/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pinnacle Treatment Centers, Inc.

 

Service-Addiction treatment

 

Line of Credit (6) (24)

 

 

 

 

 

centers

 

(7.4%, Due 12/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

2,375,000

 

2,309,688

 

 

 

 

 

(8.5%, Due 12/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,500,000

 

4,342,500

 

 

 

 

 

(10.5%, Due 12/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Precision Acquisition Group

 

Manufacturing-consumable

 

Equipment Note (6) (25)

 

806,220

 

804,204

 

Holdings, Inc. (2)

 

components for the aluminum

 

(8.5%, Due 10/2011)

 

 

 

 

 

 

 

industry

 

Senior Term Debt (6)

 

5,000,000

 

4,987,500

 

 

 

 

 

(8.5%, Due 10/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,200,000

 

4,189,500

 

 

 

 

 

(11.5%, Due 10/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

PROFITSystems

 

Service-design and develop

 

Line of Credit (6) (26)

 

 

 

Acquisition Co. (2)

 

ERP software

 

(7.4%, Due 7/2009)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

2,500,000

 

2,412,500

 

 

 

 

 

(8.5%, Due 7/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

2,900,000

 

2,773,125

 

 

 

 

 

(10.5%, Due 7/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Puerto Rico Cable
Acquisition Company, Inc.

 

Service-telecommunications

 

Senior Subordinated Term Debt (6) (7)

 

7,791,170

 

6,421,295

 

 

 

 

 

(10.3%, Due 1/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RCS Management Holding Co.

 

Service-healthcare supplies

 

Senior Term Debt (3) (6)

 

3,000,000

 

2,850,000

 

 

 

 

 

(8.5%, Due 1/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (4) (6)

 

3,060,000

 

2,853,450

 

 

 

 

 

(10.5%, Due 1/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reading Broadcasting, Inc.

 

Service-television station

 

Senior Term Debt (6)

 

7,586,397

 

7,520,016

 

 

 

operator

 

(9.8%, Due 3/2008)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

RedPrairie Holding, Inc. (2)

 

Service-design and develop

 

Senior Term Debt (7)

 

4,423,750

 

3,760,187

 

 

 

supply chain software

 

(6.1%, Due 7/2012)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

3,000,000

 

2,640,000

 

 

 

 

 

(9.6%, Due 1/2013)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Reliable Biopharmaceutical

 

Manufacturing-pharmaceutical

 

Line of Credit (5) (27)

 

700,000

 

700,000

 

Holdings, Inc.

 

and biochemical intermediates

 

(6.6%, Due 10/2010)

 

 

 

 

 

 

 

 

 

Mortgage Note (5)

 

7,437,245

 

7,437,245

 

 

 

 

 

(9.5%, Due 10/2014)

 

 

 

 

 

 

 

 

 

Senior Term Debt (5)

 

1,800,000

 

1,800,000

 

 

 

 

 

(9.0%, Due 10/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (5)

 

11,993,441

 

11,993,441

 

 

 

 

 

(11.0%, Due 10/2012)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (5)

 

6,000,000

 

6,000,000

 

 

 

 

 

(12%, Due 10/2013)

 

 

 

 

 

 

 

 

 

Common Stock Warrants (8)

 

208,675

 

385,756

 

 

6



 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

RiskMetrics Group Holdings,

 

Service - develop risk and

 

Senior Term Debt (7)

 

$

 1,980,000

 

$

 1,885,950

 

LLC

 

wealth management solutions

 

(4.9%, Due 1/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCI Cable, Inc.

 

Service-cable, internet, voice

 

Senior Term Debt (6)

 

2,721,960

 

2,398,350

 

 

 

provider

 

(11.3%, Due 10/2008)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCS Acquisition Corp. (2)

 

Service-chemically treated

 

Senior Term Debt (6)

 

3,954,811

 

3,885,602

 

 

 

equipment distribution

 

(7.1%, Due 12/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

6,475,000

 

6,232,188

 

 

 

 

 

(9.1%, Due 12/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sunburst Media - Louisiana, LLC

 

Service-radio station operator

 

Senior Term Debt (6)

 

7,867,626

 

7,215,000

 

 

 

 

 

(10.1%, Due 6/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sunshine Media Holdings

 

Service-publisher regional B2B

 

Credit Facility (6) (28)

 

700,000

 

670,250

 

 

 

trade magazines

 

(9.0%, Due 5/2010)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

17,000,000

 

16,341,250

 

 

 

 

 

(9.0%, Due 5/2012)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

10,000,000

 

9,550,000

 

 

 

 

 

(11.5%, Due 5/2012)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thibaut Acquisition Co.

 

Service-design and disbribute

 

Credit Facility (6) (29)

 

2,000,000

 

1,955,000

 

 

 

wall covering

 

(7.6%, Due 1/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (6)

 

2,362,500

 

2,309,344

 

 

 

 

 

(7.6%, Due 1/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

3,000,000

 

2,910,000

 

 

 

 

 

(10.5%, Due 1/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Viapack, Inc. (2)

 

Manufacturing-polyethylene

 

Senior Real Estate Term Debt

 

925,000

 

892,625

 

 

 

film

 

(7.6%, Due 3/2011)

 

 

 

 

 

 

 

 

 

Senior Term Debt (3) (6)

 

4,170,313

 

4,008,713

 

 

 

 

 

(11.3%, Due 3/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Visual Edge Technology, Inc. (2)

 

Service-office equipment distribution

 

Senior Subordinated Term Debt (6)

 

5,000,000

 

3,175,000

 

 

 

 

 

(11.5%, Due 8/2011)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Wesco Holdings, Inc. (2)

 

Service-aerospace parts and

 

Senior Term Debt (7)

 

2,452,475

 

2,291,453

 

 

 

distribution

 

(5.0%, Due 9/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (7)

 

2,269,083

 

2,103,750

 

 

 

 

 

(8.4%, Due 3/2014)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

West Coast Yellow Pages, Inc.

 

Service-directory publisher

 

Senior Term Debt (6) (30)

 

1,556,133

 

770,222

 

 

 

 

 

(non-accrual, Due 8/2010)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Westlake Hardware, Inc. (2)

 

Retail-hardware and variety

 

Senior Subordinated Term Debt (6)

 

15,000,000

 

14,587,500

 

 

 

 

 

(10.3%, Due 1/2011)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (6)

 

10,000,000

 

9,650,000

 

 

 

 

 

(11.5%, Due 1/2011)

 

 

 

 

 

 

7



 

Company

 

Industry

 

Investment (1)

 

Cost

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

Winchester Electronics

 

Manufacturing-high bandwidth

 

Senior Term Debt (6)

 

$

 1,990,000

 

$

 1,935,274

 

 

 

connectors and cables

 

(6.9%, Due 5/2013)

 

 

 

 

 

 

 

 

 

Senior Subordinated Term Debt (6)

 

10,000,000

 

9,650,000

 

 

 

 

 

(12.0%, Due 4/2013)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

WP Evenflo Group

 

Manufacturing-infant and

 

Senior Term Debt (7)

 

1,980,000

 

1,683,000

 

Holdings Inc. (2)

 

juvenile products

 

(5.6%, Due 2/2013)