UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
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QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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FOR THE QUARTER ENDED DECEMBER 31, 2009 |
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
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COMMISSION FILE NUMBER: 814-00237 |
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GLADSTONE CAPITAL CORPORATION
(Exact name of registrant as specified in its charter)
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MARYLAND |
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54-2040781 |
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(State or other jurisdiction of incorporation or organization) |
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(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 (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes o No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12 b-2 of the Exchange Act.
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Large accelerated filer o |
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Accelerated filer x |
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Non-accelerated filer o |
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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 February 1, 2010 was 21,087,574.
GLADSTONE CAPITAL CORPORATION
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PART I. |
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FINANCIAL INFORMATION |
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Item 1. |
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Financial Statements (Unaudited) |
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2 |
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Condensed Consolidated Schedules of Investments as of December 31, 2009 and September 30, 2009 |
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3 |
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11 |
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12 |
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13 |
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Financial Highlights for the three months ended December 31, 2009 and 2008 |
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14 |
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15 |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
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29 |
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29 |
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32 |
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36 |
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46 |
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46 |
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47 |
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47 |
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47 |
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47 |
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47 |
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47 |
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47 |
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47 |
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GLADSTONE CAPITAL CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
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December 31, |
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September 30, |
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2009 |
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2009 |
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ASSETS |
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Non-Control/Non-Affiliate investments (Cost 12/31/09: $293,830; 9/30/09: $312,043) |
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$ |
272,380 |
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$ |
286,997 |
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Control investments (Cost 12/31/09: $53,634; 9/30/09: $52,350) |
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34,258 |
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33,972 |
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Total investments at fair value (Cost 12/31/09: $347,464; 9/30/09: $364,393) |
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306,638 |
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320,969 |
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Cash |
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6,374 |
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5,276 |
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Interest receivable – investments in debt securities |
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3,159 |
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3,048 |
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Interest receivable – employees (Refer to Note 4) |
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113 |
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85 |
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Due from custodian |
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9,770 |
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3,059 |
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Due from Adviser (Refer to Note 4) |
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— |
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69 |
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Deferred financing fees |
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640 |
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1,230 |
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Prepaid assets |
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381 |
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341 |
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Receivable from portfolio companies, less allowance for uncollectible receivables of $32 and $0 at December 31, 2009 and September 30, 2009, respectively |
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611 |
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1,528 |
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Other assets |
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828 |
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305 |
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TOTAL ASSETS |
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$ |
328,514 |
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$ |
335,910 |
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LIABILITIES |
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Accounts payable |
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$ |
— |
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$ |
67 |
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Interest payable |
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339 |
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378 |
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Fee due to Administrator (Refer to Note 4) |
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178 |
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216 |
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Due to Adviser (Refer to Note 4) |
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1,285 |
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834 |
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Borrowings under line of credit at fair value (Cost 12/31/09: $73,400; 9/30/09: $83,000) |
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73,531 |
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83,350 |
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Accrued expenses and deferred liabilities |
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1,688 |
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1,800 |
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Funds held in escrow |
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44 |
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189 |
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TOTAL LIABILITIES |
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77,065 |
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86,834 |
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NET ASSETS |
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$ |
251,449 |
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$ |
249,076 |
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ANALYSIS OF NET ASSETS |
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Common stock, $0.001 par value, 50,000,000 shares authorized and 21,087,574 shares issued and outstanding at December 31, 2009 and September 30, 2009 |
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$ |
21 |
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$ |
21 |
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Capital in excess of par value |
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328,164 |
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328,203 |
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Notes receivable – employees (Refer to Note 4) |
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(8,504 |
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(9,019 |
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Net unrealized depreciation on investments |
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(40,826 |
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(43,425 |
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Net unrealized appreciation on borrowings under line of credit |
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(131 |
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(350 |
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Accumulated Net Realized Losses |
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(27,275 |
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(26,354 |
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TOTAL NET ASSETS |
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$ |
251,449 |
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$ |
249,076 |
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NET ASSETS PER SHARE |
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$ |
11.92 |
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$ |
11.81 |
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THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE CAPITAL CORPORATION
CONDENSED CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF DECEMBER 31, 2009
(DOLLAR AMOUNTS IN THOUSANDS)
(UNAUDITED)
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Company (1) |
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Industry |
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Investment (2) |
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Cost |
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Fair Value |
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NON-CONTROL/NON-AFFILIATE INVESTMENTS |
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Non-syndicated Loans: |
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Access Television Network, Inc. |
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Service-cable airtime (infomercials) |
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Senior Term Debt (14.5%, Due 12/2009) (5) (11) |
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$ |
963 |
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$ |
770 |
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ACE Expediters, Inc |
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Service-over-the-ground logistics |
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Senior Term Debt (13.5%, Due 9/2014) (5) (12) |
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5,157 |
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5,015 |
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Common Stock Warrants (8) |
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200 |
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447 |
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ActivStyle Acquisition Co. |
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Service-medical products distribution |
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Senior Term Debt (13.0%, Due 4/2014) (3) (9) |
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4,000 |
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4,021 |
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Allison Publications, LLC |
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Service-publisher of consumer oriented magazines |
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Senior Term Debt (10.0%, Due 9/2012) (5) |
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9,554 |
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8,848 |
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Senior Term Debt (13.0%, Due 12/2010) (5) |
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260 |
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254 |
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Anitox Acquisition Company |
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Manufacturing-preservatives for animal feed |
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Line of Credit, $3,000 available (4.5%, Due 1/2011) (5) |
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1,500 |
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1,498 |
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Senior Term Debt (8.5%, Due 1/2012) (5) |
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2,877 |
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2,855 |
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Senior Term Debt (10.5%, Due 1/2012) (3) (5) |
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3,688 |
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3,623 |
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BAS Broadcasting |
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Service-radio station operator |
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Senior Term Debt (11.5%, Due 7/2013) (5) |
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7,435 |
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6,691 |
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CCS, LLC |
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Service-cable TV franchise owner |
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Senior Term Debt (non-accrual, Due 8/2008) (5) (10) (11) |
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631 |
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319 |
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Chinese Yellow Pages Company |
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Service-publisher of Chinese language directories |
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Line of Credit, $700 available (7.3%, Due 9/2010) (5) |
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450 |
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429 |
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Senior Term Debt (7.3%, Due 9/2010) (5) |
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486 |
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462 |
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CMI Acquisition, LLC |
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Service-recycling |
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Senior Subordinated Term Debt (10.3%, Due 11/2012) (5) |
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6,236 |
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5,987 |
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Doe & Ingalls Management LLC |
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Distributor-specialty chemicals |
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Senior Term Debt (6.8%, Due 11/2010) (5) |
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2,100 |
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2,074 |
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Senior Term Debt (7.8%, Due 11/2010) (3) (5) |
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4,354 |
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4,299 |
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Finn Corporation |
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Manufacturing-landscape equipment |
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Common Stock Warrants (8) |
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37 |
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1,005 |
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GFRC Holdings LLC |
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Manufacturing-glass-fiber reinforced concrete |
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Line of Credit, $2,000 available (4.5%, Due 12/2010) |
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— |
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— |
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Senior Term Debt (9.0%, Due 12/2012) (5) |
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6,599 |
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6,508 |
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Senior Subordinated Term Debt (11.5%, Due 12/2012) (3) (5) |
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6,666 |
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6,507 |
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Global Materials Technologies, Inc. |
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Manufacturing-steel wool products and metal fibers |
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Senior Term Debt (13.0%, Due 6/2010) (3) (5) |
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4,360 |
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3,270 |
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Heartland Communications Group |
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Service-radio station operator |
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Senior Term Debt (10.0%, Due 5/2011) (5) |
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4,563 |
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2,499 |
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Interfilm Holdings, Inc. |
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Service-slitter and distributor of plastic films |
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Senior Term Debt (12.3%, Due 10/2012) (5) |
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4,937 |
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4,752 |
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International Junior Golf Training Acquisition Company |
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Service-golf training |
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Line of Credit, $1,500 available (9.0%, Due 5/2010) (5) |
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700 |
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693 |
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Senior Term Debt (8.5%, Due 5/2012) (5) |
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1,987 |
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1,938 |
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Senior Term Debt (10.5%, Due 5/2012) (3) (5) |
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2,500 |
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2,406 |
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KMBQ Corporation |
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Service-AM/FM radio broadcaster |
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Line of Credit, $200 available (11.0%, Due 3/2010) (5) |
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153 |
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38 |
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Senior Term Debt (11.0%, Due 3/2010) (5) |
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1,783 |
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445 |
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Legend Communications of Wyoming LLC |
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Service-operator of radio stations |
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Line of Credit, $500 available (12.0%, Due 6/2011) (5) |
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497 |
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423 |
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Senior Term Debt (12.0%, Due 6/2013) (5) |
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9,373 |
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7,967 |
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Newhall Holdings, Inc. |
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Service-distributor of personal care products and supplements |
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Line of Credit, $3,000 available (11.3%, Due 5/2010) (5) |
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1,000 |
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930 |
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Senior Term Debt (5) (11.3%, Due 5/2012) (5) |
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3,870 |
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3,599 |
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Senior Term Debt (14.3%, Due 5/2012) (3) (5) |
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4,410 |
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4,057 |
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Northern Contours, Inc. |
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Manufacturing-veneer and laminate components |
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Senior Subordinated Term Debt (10.0%, Due 5/2010) (5) |
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6,475 |
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5,439 |
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Company (1) |
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Industry |
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Investment (2) |
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Cost |
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Fair Value |
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Northstar Broadband, LLC |
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Service-cable TV franchise owner |
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Senior Term Debt (0.7%, Due 12/2012) (5) |
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$ |
156 |
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$ |
128 |
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Pinnacle Treatment Centers, Inc. |
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Service-Addiction treatment centers |
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Senior Term Debt (10.5%, Due 12/2011) (5) |
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2,550 |
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2,509 |
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Senior Term Debt (10.5%, Due 12/2011) (3) (5) |
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7,500 |
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7,237 |
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Precision Acquisition Group Holdings, Inc. |
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Manufacturing-consumable components for the aluminum industry |
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Equipment Note (8.5%, Due 10/2011) (5) |
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1,000 |
|
973 |
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Senior Term Debt (8.5%, Due 10/2010) (5) |
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4,125 |
|
4,012 |
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|||||
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Senior Term Debt (11.5%, Due 10/2010) (3) (5) |
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4,053 |
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3,941 |
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PROFITSystems Acquisition Co. |
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Service-design and develop ERP software |
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Line of Credit, $350 available (4.5%, Due 7/2010) |
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— |
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— |
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Senior Term Debt (8.5%, Due 7/2011) (5) |
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1,450 |
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1,339 |
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|||||
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Senior Term Debt (10.5%, Due 7/2011) (3) (5) |
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2,900 |
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2,650 |
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RCS Management Holding Co. |
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Service-healthcare supplies |
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Senior Term Debt (8.5%, Due 1/2011) (3) (5) |
|
2,312 |
|
2,289 |
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Senior Term Debt (10.5%, Due 1/2011) (4) (5) |
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3,060 |
|
3,014 |
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Reliable Biopharmaceutical Holdings, Inc. |
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Manufacturing-pharmaceutical and biochemical intermediates |
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Line of Credit, $5,000 available (9.0%, Due 10/2010) (5) |
|
700 |
|
695 |
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Mortgage Note (9.5%, Due 10/2014) (5) |
|
7,315 |
|
7,279 |
|
|||||
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Senior Term Debt (9.0%, Due 10/2012) (5) |
|
1,418 |
|
1,407 |
|
|||||
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Senior Term Debt (11.0%, Due 10/2012) (3) (5) |
|
11,783 |
|
11,577 |
|
|||||
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Senior Subordinated Term Debt (12.0%, Due 10/2013) (5) |
|
6,000 |
|
5,790 |
|
||
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Common Stock Warrants (8) |
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209 |
|
— |
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Saunders & Associates |
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Manufacturing-equipment provider for frequency control devices |
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Senior Term Debt (9.8%, Due 5/2013) (5) |
|
10,780 |
|
10,686 |
|
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SCI Cable, Inc. |
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Service-cable, internet, voice provider |
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Senior Term Debt (non-accrual, Due 10/2008) (5) (10) (11) |
|
2,945 |
|
442 |
|
||
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Sunburst Media - Louisiana, LLC |
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Service-radio station operator |
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Senior Term Debt (10.5%, Due 6/2011) (5) |
|
6,406 |
|
5,913 |
|
||
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Sunshine Media Holdings |
|
Service-publisher regional B2B trade magazines |
|
Senior Term Debt (11.0%, Due 5/2012) (5) |
|
16,948 |
|
16,143 |
|
||
|
|
Senior Term Debt (13.5%, Due 5/2012) (3) (5) |
|
10,700 |
|
10,085 |
|
|||||
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Thibaut Acquisition Co. |
|
Service-design and disbribute wall covering |
|
Line of Credit, $1,000 available (9.0%, Due 1/2011) (5) |
|
1,000 |
|
944 |
|
||
|
|
|
|
|
Senior Term Debt (8.5%, Due 1/2011) (5) |
|
1,488 |
|
1,404 |
|
||
|
|
|
|
|
Senior Term Debt (12.0%, Due 1/2011) (3) (5) |
|
3,000 |
|
2,786 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
VantaCore |
|
Service-acquisition of aggregate quarries |
|
Senior Subordinated Term Debt (12.0%, Due 8/2013) (5) |
|
13,658 |
|
13,590 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Viapack, Inc. |
|
Manufacturing-polyethylene film |
|
Senior Real Estate Term Debt (10.0%, Due 3/2011) (5) |
|
725 |
|
711 |
|
||
|
|
|
|
|
Senior Term Debt (13.0%, Due 3/2011) (3) (5) |
|
4,058 |
|
3,977 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Visual Edge Technology, Inc. |
|
Service-office equipment distribution |
|
Line of credit, $3,000 available (10.8%, Due 9/2011) (5) |
|
2,915 |
|
2,302 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (15.5%, Due 8/2011) (5) |
|
5,000 |
|
3,950 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Westlake Hardware, Inc. |
|
Retail-hardware and variety |
|
Senior Subordinated Term Debt (9.0%, Due 1/2011) (5) |
|
15,000 |
|
14,588 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (10.3%, Due 1/2011) (5) |
|
10,000 |
|
9,625 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Winchester Electronics |
|
Manufacturing-high bandwidth connectors and cables |
|
Senior Term Debt (5.3%, Due 5/2013) (5) |
|
1,250 |
|
1,241 |
|
||
|
|
Senior Term Debt (5.7%, Due 5/2013) (5) |
|
1,690 |
|
1,648 |
|
|||||
|
|
Senior Subordinated Term Debt (14.0%, Due 6/2013) (5) |
|
9,925 |
|
9,528 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Subtotal - Non-syndicated loans |
|
|
|
283,820 |
|
264,471 |
|
||||
|
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Syndicated Loans: |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
GTM Holdings, Inc. |
|
Manufacturing-socks |
|
Senior Subordinated Term Debt (11.8%, Due 4/2014) (13) |
|
$ |
500 |
|
$ |
337 |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Puerto Rico Cable Acquisition Company, Inc. |
|
Service-telecommunications |
|
Senior Subordinated Term Debt (7.8%, Due 1/2012) (6) |
|
7,170 |
|
5,998 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
WP Evenflo Group Holdings Inc. |
|
Manufacturing-infant and |
|
Senior Term Debt (8.0%, Due 2/2013) (6) |
|
1,896 |
|
1,574 |
|
||
|
|
juvenile products |
|
Senior Preferred Equity (8) |
|
333 |
|
— |
|
|||
|
|
|
|
|
Junior Preferred Equity (8) |
|
111 |
|
— |
|
||
|
|
|
|
|
Common Stock (8) |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Subtotal - Syndicated loans |
|
|
|
10,010 |
|
7,909 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total Non-Control/Non-Affiliate Investments |
|
|
|
$ |
293,830 |
|
$ |
272,380 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
CONTROL INVESTMENTS |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
BERTL, Inc. |
|
Service-web-based evaluator of digital imaging products |
|
Line of Credit, $842 available (non-accrual, Due 10/2010) (7)(10)(13) |
|
$ |
930 |
|
$ |
— |
|
|
|
|
|
|
Common Stock (7) (8) |
|
423 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Clinton Holdings, LLC |
|
Distribution-aluminum sheets and stainless steel |
|
Senior Subordinated Term Debt (12.0%, Due 1/2013) (5) |
|
17,140 |
|
13,712 |
|
||
|
|
|
|
|
Common Stock Warrants (7) (8) |
|
109 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Defiance Integrated Technologies, Inc. |
|
Manufacturing-trucking parts |
|
Senior Term Debt (11.0%, Due 4/2013) (3) (5) |
|
7,354 |
|
7,355 |
|
||
|
|
|
|
|
Common Stock (7) (8) |
|
1 |
|
— |
|
||
|
|
|
|
|
Guaranty ($250) |
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Lindmark Acquisition, LLC |
|
Service-advertising |
|
Senior Subordinated Term Debt (11.3%, Due 10/2012) (7) |
|
12,000 |
|
10,500 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (13.0%, Due Upon Demand) (7) |
|
1,553 |
|
1,058 |
|
||
|
|
|
|
|
Common Stock (7) (8) |
|
1 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
LYP Holdings Corp. |
|
Service-yellow pages publishing |
|
Line of credit, $1,850 available (10.0%, Due 12/2010) (7) |
|
1,248 |
|
1,248 |
|
||
|
|
|
|
|
Senior Term Debt (12.5%, Due 2/2012) (7) |
|
325 |
|
222 |
|
||
|
|
|
|
|
Line of Credit, $3,000 available (non-accrual, Due 6/2010) (7) (10) |
|
1,170 |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (non-accrual, Due 6/2011) (7) (10) |
|
2,688 |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (non-accrual, Due 6/2011) (3) (7) (10) |
|
2,750 |
|
— |
|
||
|
|
|
|
|
Common Stock Warrants (7) (8) |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
U.S. Healthcare Communications, Inc. |
|
Service-magazine publisher/operator |
|
Line of credit, $400 available (non-accrual, Due 12/2010) (7) (10) |
|
169 |
|
163 |
|
||
|
|
|
|
|
Line of credit, $450 available (non-accrual, Due 12/2010) (7) (10) |
|
450 |
|
— |
|
||
|
|
|
|
|
Common Stock (7) (8) |
|
2,470 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Western Directories, Inc. |
|
Service-directory publisher |
|
Line of credit, $1,280 available (non-accrual, Due 12/2009) (7) (10) |
|
1,268 |
|
— |
|
||
|
|
|
|
|
Preferred Stock (7) (8) |
|
1,584 |
|
— |
|
||
|
|
|
|
|
Common Stock (7) (8) |
|
1 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total Control Investments |
|
|
|
$ |
53,634 |
|
$ |
34,258 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total Investments |
|
|
|
|
|
$ |
347,464 |
|
$ |
306,638 |
|
|
(1) |
Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company. |
|
(2) |
Percentage represents interest rates in effect at December 31, 2009 and due date represents the contractual maturity date. |
|
(3) |
Last Out Tranche of senior debt, meaning if the portfolio company is liquidated, the holder of the Last Out Tranche is paid after the senior debt. |
|
(4) |
Last Out Tranche of senior debt, meaning if the portfolio company is liquidated, the holder of the Last Out Tranche is paid after the senior debt, however, the debt is also junior to another Last Out Tranche. |
|
(5) |
Fair value was based on opinions of value submitted by Standard & Poor’s Securities Evaluations, Inc. |
|
(6) |
Security valued based on the indicative bid price on or near December 31, 2009, offered by the respective syndication agent’s trading desk or secondary desk. |
|
(7) |
Fair value was based on the total enterprise value of the portfolio company using a liquidity waterfall approach. The Company also considered discounted cash flow methodologies. |
|
(8) |
Security is non-income producing. |
|
(9) |
ActivStyle’s fair value was based on the full repayment subsequent to December 31, 2009 and includes a success fee with a fair value of $21 (see Note 10). |
|
(10) |
BERTL, CCS, SCI Cable, U.S. Healthcare, Western Directories and a portion of LYP Holdings are currently past due on interest payments and are on non-accrual. |
|
(11) |
Access TV’s loan matured in December 2009, CCS’ loan matured in August 2008 and SCI Cable’s loan matured in October 2008. The Company is actively working to recover amounts due under these loans, however, there is no assurance that there will be any recovery of amounts past due. |
|
(12) |
ACE Expediters’ interest and BERTL’s interest include paid in kind (“PIK”) interest. Please refer to Note 2 “Summary of Significant Accounting Policies.” |
|
(13) |
Security valued based on the transaction sale price subsequent to December 31, 2009 (see Note 10). |
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.
GLADSTONE CAPITAL CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
AS OF SEPTEMBER 30, 2009
(DOLLAR AMOUNTS IN THOUSANDS)
|
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
NON-CONTROL/NON-AFFILIATE INVESTMENTS |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Non-syndicated Loans: |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Access Television Network, Inc. |
|
Service-cable airtime (infomercials) |
|
Senior Term Debt (14.5%, Due 12/2009) (5) (9) |
|
$ |
963 |
|
$ |
868 |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
ACE Expediters, Inc |
|
Service-over-the-ground logistics |
|
Senior Term Debt (13.5%, Due 9/2014) (5) (13) |
|
5,106 |
|
4,864 |
|
||
|
|
|
|
|
Common Stock Warrants (8) |
|
200 |
|
564 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
ActivStyle Acquisition Co. |
|
Service-medical products distribution |
|
Senior Term Debt (13.0%, Due 4/2014) (3) (5) |
|
4,000 |
|
3,940 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Allison Publications, LLC |
|
Service-publisher of consumer oriented magazines |
|
Senior Term Debt (10.0%, Due 9/2012) (5) |
|
9,709 |
|
8,746 |
|
||
|
|
Senior Term Debt (13.0%, Due 12/2010) (5) |
|
260 |
|
246 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Anitox Acquisition Company |
|
Manufacturing-preservatives for animal feed |
|
Line of Credit, $3,000 available (4.5%, Due 1/2010) (5) |
|
1,700 |
|
1,681 |
|
||
|
|
|
|
|
Senior Term Debt (8.5%, Due 1/2012) (5) |
|
2,877 |
|
2,823 |
|
||
|
|
|
|
|
Senior Term Debt (10.5%, Due 1/2012) (3) (5) |
|
3,688 |
|
3,582 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
BAS Broadcasting |
|
Service-radio station operator |
|
Senior Term Debt (11.5%, Due 7/2013) (5) |
|
7,300 |
|
5,840 |
|
||
|
|
Senior Term Debt (12.0%, Due 7/2009) (3) (5) (12) |
|
950 |
|
475 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
CCS, LLC |
|
Service-cable TV franchise owner |
|
Senior Term Debt (non-accrual, Due 8/2008) (5) (10) (12) |
|
631 |
|
126 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Chinese Yellow Pages Company |
|
Service-publisher of Chinese language directories |
|
Line of Credit, $700 available (7.3%, Due 9/2010) (5) |
|
450 |
|
427 |
|
||
|
|
|
|
|
Senior Term Debt (7.3%, Due 9/2010) (5) |
|
518 |
|
488 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
CMI Acquisition, LLC |
|
Service-recycling |
|
Senior Subordinated Term Debt (10.3%, Due 11/2012) (5) |
|
6,233 |
|
5,890 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Doe & Ingalls Management LLC |
|
Distributor-specialty chemicals |
|
Senior Term Debt (6.8%, Due 11/2010) (5) |
|
2,300 |
|
2,266 |
|
||
|
|
Senior Term Debt (7.8%, Due 11/2010) (3) (5) |
|
4,365 |
|
4,267 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Finn Corporation |
|
Manufacturing-landscape equipment |
|
Common Stock Warrants (8) |
|
37 |
|
1,223 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
GFRC Holdings LLC |
|
Manufacturing-glass-fiber reinforced concrete |
|
Line of Credit, $2,000 available (4.5%, Due 12/2010) |
|
— |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (9.0%, Due 12/2012) (5) |
|
6,599 |
|
6,450 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (11.5%, Due 12/2012) (3) (5) |
|
6,665 |
|
6,432 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Global Materials Technologies, Inc. |
|
Manufacturing-steel wool products and metal fibers |
|
Senior Term Debt (13.0%, Due 6/2010) (3) (5) |
|
4,410 |
|
3,528 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Heartland Communications Group |
|
Service-radio station operator |
|
Senior Term Debt (10.0%, Due 5/2011) (5) |
|
4,567 |
|
2,726 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Interfilm Holdings, Inc. |
|
Service-slitter and distributor of plastic films |
|
Senior Term Debt (12.3%, Due 10/2012) (5) |
|
4,950 |
|
4,715 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
International Junior Golf Training Acquisition Company |
|
Service-golf training |
|
Line of Credit, $1,500 available (9.0%, Due 5/2010) (5) |
|
700 |
|
690 |
|
||
|
|
Senior Term Debt (8.5%, Due 5/2012) (5) |
|
2,120 |
|
2,036 |
|
|||||
|
|
Senior Term Debt (10.5%, Due 5/2012) (3) (5) |
|
2,500 |
|
2,366 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
KMBQ Corporation |
|
Service-AM/FM radio broadcaster |
|
Line of Credit, $200 available (11.0%, Due 3/2010) (5) |
|
153 |
|
69 |
|
||
|
|
|
|
|
Senior Term Debt (11.0%, Due 3/2010) (5) |
|
1,785 |
|
801 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Legend Communications of Wyoming LLC |
|
Service-operator of radio stations |
|
Line of Credit, $500 available (12.0%, Due 6/2011) (5) |
|
497 |
|
450 |
|
||
|
|
|
|
|
Senior Term Debt (12.0%, Due 6/2013) (5) |
|
9,373 |
|
8,482 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Newhall Holdings, Inc. |
|
Service-distributor of personal care products and supplements |
|
Line of Credit, $3,000 available (11.3%, Due 5/2010) (5) |
|
1,000 |
|
945 |
|
||
|
|
Senior Term Debt (5) (11.3%, Due 5/2012) (5) |
|
3,870 |
|
3,657 |
|
|||||
|
|
|
|
|
Senior Term Debt (14.3%, Due 5/2012) (3) (5) |
|
4,410 |
|
4,112 |
|
||
|
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Northern Contours, Inc. |
|
Manufacturing-veneer and laminate components |
|
Senior Subordinated Term Debt (10.0%, Due 5/2010) (5) |
|
$ |
6,562 |
|
$ |
5,414 |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Pinnacle Treatment Centers, Inc. |
|
Service-Addiction treatment centers |
|
Line of Credit, $500 available (4.5%, Due 12/2009) |
|
— |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (10.5%, Due 12/2011) (5) |
|
2,750 |
|
2,633 |
|
||
|
|
|
|
|
Senior Term Debt (10.5%, Due 12/2011) (3) (5) |
|
7,500 |
|
7,059 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Precision Acquisition Group Holdings, Inc. |
|
Manufacturing-consumable components for the aluminum industry |
|
Equipment Note (8.5%, Due 10/2011) (5) |
|
1,000 |
|
988 |
|
||
|
|
Senior Term Debt (8.5%, Due 10/2010) (5) |
|
4,250 |
|
4,192 |
|
|||||
|
|
Senior Term Debt (11.5%, Due 10/2010) (3) (5) |
|
4,074 |
|
4,023 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
PROFITSystems Acquisition Co. |
|
Service-design and develop ERP software |
|
Line of Credit, $350 available (4.5%, Due 7/2010) |
|
— |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (8.5%, Due 7/2011) (5) |
|
1,600 |
|
1,468 |
|
||
|
|
|
|
|
Senior Term Debt (10.5%, Due 7/2011) (3) (5) |
|
2,900 |
|
2,632 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
RCS Management Holding Co. |
|
Service-healthcare supplies |
|
Senior Term Debt (8.5%, Due 1/2011) (3) (5) |
|
2,437 |
|
2,383 |
|
||
|
|
Senior Term Debt (10.5%, Due 1/2011) (4) (5) |
|
3,060 |
|
2,949 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Reliable Biopharmaceutical Holdings, Inc. |
|
Manufacturing-pharmaceutical and biochemical intermediates |
|
Line of Credit, $5,000 available (9.0%, Due 10/2010) (5) |
|
800 |
|
788 |
|
||
|
|
Mortgage Note (9.5%, Due 10/2014) (5) |
|
7,335 |
|
7,261 |
|
|||||
|
|
Senior Term Debt (9.0%, Due 10/2012) (5) |
|
1,530 |
|
1,507 |
|
|||||
|
|
|
|
|
Senior Term Debt (11.0%, Due 10/2012) (3) (5) |
|
11,813 |
|
11,518 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (12.0%, Due 10/2013) (5) |
|
6,000 |
|
5,640 |
|
||
|
|
|
|
|
Common Stock Warrants (8) |
|
209 |
|
282 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Saunders & Associates |
|
Manufacturing-equipment provider for frequency control devices |
|
Senior Term Debt (9.8%, Due 5/2013) (5) |
|
10,780 |
|
10,618 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
SCI Cable, Inc. |
|
Service-cable, internet, voice provider |
|
Senior Term Debt (9.3%, Due 10/2008) (5) (12) |
|
2,881 |
|
576 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Sunburst Media - Louisiana, LLC |
|
Service-radio station operator |
|
Senior Term Debt (10.5%, Due 6/2011) (5) |
|
6,411 |
|
5,817 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Sunshine Media Holdings |
|
Service-publisher regional B2B trade magazines |
|
Senior Term Debt (11.0%, Due 5/2012) (5) |
|
16,948 |
|
15,973 |
|
||
|
|
|
|
|
Senior Term Debt (13.5%, Due 5/2012) (3) (5) |
|
10,700 |
|
9,978 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Thibaut Acquisition Co. |
|
Service-design and disbribute wall covering |
|
Line of Credit, $1,000 available (9.0%, Due 1/2011) (5) |
|
1,000 |
|
933 |
|
||
|
|
|
|
|
Senior Term Debt (8.5%, Due 1/2011) (5) |
|
1,487 |
|
1,387 |
|
||
|
|
|
|
|
Senior Term Debt (12.0%, Due 1/2011) (3) (5) |
|
3,000 |
|
2,745 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Tulsa Welding School |
|
Service-private welding school |
|
Line of credit, $750 available (9.5%, Due 9/2011) |
|
— |
|
— |
|
||
|
|
|
|
|
Senior Term Debt (9.5%, Due 9/2013) (5) |
|
4,144 |
|
4,144 |
|
||
|
|
|
|
|
Senior Term Debt (12.8%, Due 9/2013) (5) |
|
7,960 |
|
7,950 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
VantaCore |
|
Service-acquisition of aggregate quarries |
|
Senior Subordinated Term Debt (12.0%, Due 8/2013) (5) |
|
13,726 |
|
13,589 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Viapack, Inc. |
|
Manufacturing-polyethylene film |
|
Senior Real Estate Term Debt (10.0%, Due 3/2011) (5) |
|
775 |
|
743 |
|
||
|
|
|
|
|
Senior Term Debt (13.0%, Due 3/2011) (3) (5) |
|
4,061 |
|
3,893 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Visual Edge Technology, Inc. |
|
Service-office equipment distribution |
|
Line of credit, $3,000 available (10.8%, Due 9/2011) (5) |
|
2,981 |
|
2,340 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (15.5%, Due 8/2011) (5) |
|
5,000 |
|
3,925 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Westlake Hardware, Inc. |
|
Retail-hardware and variety |
|
Senior Subordinated Term Debt (9.0%, Due 1/2011) (5) |
|
15,000 |
|
14,269 |
|
||
|
|
|
|
|
Senior Subordinated Term Debt (10.3%, Due 1/2011) (5) |
|
10,000 |
|
9,400 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Winchester Electronics |
|
Manufacturing-high bandwidth connectors and cables |
|
Senior Term Debt (5.3%, Due 5/2013) (5) |
|
1,147 |
|
1,136 |
|
||
|
|
Senior Term Debt (5.7%, Due 5/2013) (5) |
|
1,690 |
|
1,642 |
|
|||||
|
|
Senior Subordinated Term Debt (14.0%, Due 6/2013) (5) |
|
9,925 |
|
9,478 |
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Subtotal - Non-syndicated loans |
|
|
|
298,322 |
|
277,048 |
|
||||
|
Company (1) |
|
Industry |
|
Investment (2) |
|
Cost |
|
Fair Value |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Syndicated Loans: |
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
GTM Holdings, Inc. |
|
Manufacturing-socks |
|
Senior Subordinated Term Debt (11.8%, Due 4/2014) (6) |
|
$ |
500 |
|
$ |
220 |
|
|
|
|
|
|
|
|
|
|
|
|
||
|
Kinetek Acquisition Corp. |
|
Manufacturing-custom engineered motors & controls |
|
Senior Term Debt (3.6%, Due 11/2013) (7) |
|
1,438 |
|
925 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Puerto Rico Cable Acquisition Company, Inc. |
|
Service-telecommunications |
|
Senior Subordinated Term Debt (7.8%, Due 1/2012) (6) |
|
7,174 |
|
5,713 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Wesco Holdings, Inc. |
|
Service-aerospace parts and distribution |
|
Senior Subordinated Term Debt (6.0%, Due 3/2014) (7) |
|
2,264 |
|
1,856 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
WP Evenflo Group Holdings Inc. |
|
Manufacturing-infant and juvenile products |
|
Senior Term Debt (8.0%, Due 2/2013) (6) |
|
1,901 |
|
1,235 |
|
||
|
|
Senior Preferred Equity (8) |
|
333 |
|
— |
|
|||||
|
|
Junior Preferred Equity (8) |
|
111 |
|
— |
|
|||||
|
|
|
|
|
Common Stock (8) |
|
— |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Subtotal - Syndicated loans |
|
|
|
13,721 |
|
9,949 |
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
Total Non-Control/Non-Affiliate Investments |
|
|
|
$ |
312,043 |
|
$ |
286,997 |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
CONTROL INVESTMENTS |
|
|
|
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
||
|
BERTL, Inc. |
|
Service-web-based evaluator of digital imaging products |
|
Line of Credit, $842 available (non-accrual, Due 10/2009) (10)(13)(15) |
|
$ |
930 |
|
$ |
— |
|
|
|
|
|
|
Common Stock (8) (15) |
|
424 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Clinton Holdings, LLC |
|
Distribution-aluminum sheets and stainless steel |
|
Senior Subordinated Term Debt (12.0%, Due 1/2013) (5) (14) |
|
15,500 |
|
12,013 |
|
||
|
|
|
|
|
Escrow Funding Note (12.0%, Due 1/2013) (5) (14) |
|
640 |
|
496 |
|
||
|
|
|
|
|
Common Stock Warrants (8) (15) |
|
109 |
|
— |
|
||
|
|
|
|
|
|
|
|
|
|
|
||
|
Defiance Integrated Technologies, Inc. |
|
Manufacturing-trucking parts |
|
Senior Term Debt (11.0%, Due 4/2010) (3) (11) |
|
6,005 |
|
6,005 |
|
||
|
|
|
|
|
Senior Term Debt (11.0%, Due 4/2010) (3) (11) |
|
1,178 |
|
1,178 |
|
||
|
|
|||||||||||