UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| |
☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31,June 30, 2023
OR
| |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission file number: 814-01301
MONROE CAPITAL INCOME PLUS CORPORATION
(Exact Name of Registrant as Specified in its Charter)
Maryland |
| 83-0711022 |
(State or Other Jurisdiction of |
| (I.R.S. Employer |
|
|
|
311 South Wacker Drive, Suite 6400 |
| 60606 |
(Address of Principal Executive Office) |
| (Zip Code) |
(312) 258-8300
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class |
| Trading Symbol(s) |
| Name of Each Exchange on Which Registered |
None |
| N/A |
| N/A |
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 ☒ No ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer | ☐ | Accelerated filer | ☐ |
|
|
|
|
Non-accelerated filer | ☒ | Smaller reporting company | ☐ |
|
|
|
|
Emerging growth company | ☒ |
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ¨ No ☒
As of May 11,August 10, 2023, the registrant had 83,765,46292,338,550 shares of common stock, $0.001 par value, outstanding.
TABLE OF CONTENTS
| | Page |
| ||
| | |
3 | ||
| | |
| 3 | |
| | |
| 4 | |
| | |
| 5 | |
| | |
| 6 | |
| | |
| Consolidated Schedules of Investments as of | 7 |
| | |
| 32 | |
| | |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
| |
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
| | |
| ||
2
Part I. Financial Information
Item 1. Consolidated Financial Statements
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data)
| | | | | | |
|
| March 31, 2023 |
| December 31, 2022 | ||
| | (unaudited) | | | | |
ASSETS |
| |
|
| |
|
Investments, at fair value: |
| |
|
| |
|
Non-controlled/non-affiliate company investments | | $ | 1,502,021 | | $ | 1,429,808 |
Non-controlled affiliate company investments | |
| 41,889 | |
| 39,188 |
Total investments, at fair value (amortized cost of: $1,535,660 and $1,465,352, respectively) | |
| 1,543,910 | |
| 1,468,996 |
Cash | |
| 4,319 | |
| 5,716 |
Restricted cash | |
| 32,243 | |
| 46,488 |
Unrealized gain on foreign currency forward contracts | |
| 1,409 | |
| 1,296 |
Interest and dividend receivable | |
| 18,471 | |
| 12,656 |
Other assets | |
| 249 | |
| 9,490 |
Total assets | |
| 1,600,601 | |
| 1,544,642 |
| | | | | | |
LIABILITIES | |
|
| |
|
|
Debt | |
| 711,386 | |
| 763,400 |
Less: Unamortized deferred financing costs | |
| (11,703) | |
| (11,914) |
Debt, less unamortized deferred financing costs | |
| 699,683 | |
| 751,486 |
Interest payable | |
| 9,172 | |
| 7,289 |
Payable for unsettled trades | | | 13,556 | | | 13,690 |
Management fees payable | |
| 4,847 | |
| 4,252 |
Incentive fees payable | |
| 4,768 | |
| 3,304 |
Accounts payable and accrued expenses | |
| 9,693 | |
| 9,705 |
Directors’ fees payable | | | 23 | | | — |
Total liabilities | |
| 741,742 | |
| 789,726 |
Net assets | | $ | 858,859 | | $ | 754,916 |
| | | | | | |
Commitments and contingencies (See Note 11) | |
|
| |
|
|
| | | | | | |
ANALYSIS OF NET ASSETS | |
|
| |
|
|
Common stock, $0.001 par value, 100,000 shares authorized, 83,765 and 74,533 shares issued and outstanding, respectively | | $ | 84 | | $ | 75 |
Capital in excess of par value | |
| 837,918 | |
| 744,404 |
Accumulated undistributed (overdistributed) earnings | |
| 20,857 | |
| 10,437 |
Total net assets | | $ | 858,859 | | $ | 754,916 |
| | | | | | |
Net asset value per share | | $ | 10.25 | | $ | 10.13 |
| | | | | | |
|
| June 30, 2023 |
| December 31, 2022 | ||
| | (unaudited) | | | | |
ASSETS |
| |
|
| |
|
Investments, at fair value: |
| |
|
| |
|
Non-controlled/non-affiliate company investments | | $ | 1,721,423 | | $ | 1,429,808 |
Non-controlled affiliate company investments | |
| 43,351 | |
| 39,188 |
Total investments, at fair value (amortized cost of: $1,759,333 and $1,465,352, respectively) | |
| 1,764,774 | |
| 1,468,996 |
Cash | |
| 10,154 | |
| 5,716 |
Restricted cash | |
| 58,333 | |
| 46,488 |
Unrealized gain on foreign currency forward contracts | |
| — | |
| 1,296 |
Interest and dividend receivable | |
| 19,721 | |
| 12,656 |
Other assets | |
| 231 | |
| 9,490 |
Total assets | |
| 1,853,213 | |
| 1,544,642 |
| | | | | | |
LIABILITIES | |
|
| |
|
|
Debt | |
| 885,548 | |
| 763,400 |
Less: Unamortized deferred financing costs | |
| (10,197) | |
| (11,914) |
Debt, less unamortized deferred financing costs | |
| 875,351 | |
| 751,486 |
Interest payable | |
| 8,876 | |
| 7,289 |
Unrealized loss on foreign currency forward contracts | | | 1,863 | | | — |
Payable for unsettled trades | | | 743 | | | 13,690 |
Management fees payable | |
| 5,382 | |
| 4,252 |
Incentive fees payable | |
| 4,409 | |
| 3,304 |
Accounts payable and accrued expenses | |
| 12,496 | |
| 9,705 |
Total liabilities | |
| 909,120 | |
| 789,726 |
Net assets | | $ | 944,093 | | $ | 754,916 |
| | | | | | |
Commitments and contingencies (See Note 11) | |
|
| |
|
|
| | | | | | |
ANALYSIS OF NET ASSETS | |
|
| |
|
|
Common stock, $0.001 par value, 300,000 and 100,000 shares authorized, respectively, 92,339 and 74,533 shares issued and outstanding, respectively | | $ | 92 | | $ | 75 |
Capital in excess of par value | |
| 925,785 | |
| 744,404 |
Accumulated undistributed (overdistributed) earnings | |
| 18,216 | |
| 10,437 |
Total net assets | | $ | 944,093 | | $ | 754,916 |
| | | | | | |
Net asset value per share | | $ | 10.22 | | $ | 10.13 |
See Notes to Consolidated Financial Statements.
3
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
| | | | | | |
| | Three months ended March 31, | ||||
| | 2023 | | 2022 | ||
Investment income: |
| |
|
| |
|
Non-controlled/non-affiliate company investments: |
| |
|
| |
|
Interest, fee and dividend income | | $ | 43,157 | | $ | 15,545 |
Payment-in-kind interest income | |
| 2,112 | |
| 678 |
Total investment income from non-controlled/non-affiliate company investments | |
| 45,269 | |
| 16,223 |
Non-controlled affiliate company investments: | |
| | |
|
|
Interest income | |
| 583 | |
| 164 |
Total investment income from non-controlled affiliate company investments | |
| 583 | |
| 164 |
Total investment income | |
| 45,852 | |
| 16,387 |
| | | | | | |
Operating expenses: | |
|
| |
|
|
Interest and other debt financing expenses | |
| 12,089 | |
| 3,280 |
Base management fees | |
| 4,847 | |
| 2,796 |
Incentive fees | |
| 4,151 | |
| 1,823 |
Professional fees | |
| 310 | |
| 145 |
Administrative service fees | |
| 370 | |
| 203 |
General and administrative expenses | |
| 505 | |
| 210 |
Directors’ fees | |
| 23 | |
| 15 |
Total operating expenses | |
| 22,295 | |
| 8,472 |
Net investment income before income taxes | |
| 23,557 | |
| 7,915 |
Income taxes, including excise taxes | |
| 195 | |
| — |
Net investment income | |
| 23,362 | |
| 7,915 |
| | | | | | |
Net gain (loss): | |
|
| |
|
|
Net realized gain (loss): | |
|
| |
|
|
Non-controlled/non-affiliate company investments | |
| 944 | |
| 25 |
Foreign currency forward contracts | |
| 33 | |
| 18 |
Foreign currency and other transactions | |
| (4) | |
| — |
Net realized gain (loss) | |
| 973 | |
| 43 |
| | | | | | |
Net change in unrealized gain (loss): | |
|
| |
| |
Non-controlled/non-affiliate company investments | |
| 4,004 | |
| 2,903 |
Non-controlled/affiliate company investments | |
| 602 | |
| — |
Foreign currency forward contracts | |
| 113 | |
| (533) |
Foreign currency and other transactions | |
| (1) | |
| — |
Net change in unrealized gain (loss) | |
| 4,718 | |
| 2,370 |
| | | | | | |
Net gain (loss) | |
| 5,691 | |
| 2,413 |
| | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 29,053 | | $ | 10,328 |
| | | | | | |
Per common share data: | |
|
| |
| |
Net investment income per share - basic and diluted | | $ | 0.31 | | $ | 0.20 |
Net increase (decrease) in net assets resulting from operations per share - basic and diluted | | $ | 0.38 | | $ | 0.27 |
Weighted average common shares outstanding - basic and diluted | |
| 76,102 | |
| 38,729 |
| | | | | | | | | | | | |
| | Three months ended June 30, | | Six months ended June 30, | ||||||||
| | 2023 | | 2022 | | 2023 | | 2022 | ||||
Investment income: |
| |
|
| |
|
| |
|
| |
|
Non-controlled/non-affiliate company investments: |
| |
|
| |
|
| |
|
| |
|
Interest, fee and dividend income | | $ | 48,325 | | $ | 16,060 | | $ | 91,482 | | $ | 31,605 |
Payment-in-kind interest income | |
| 1,621 | |
| 956 | |
| 3,733 | |
| 1,634 |
Total investment income from non-controlled/non-affiliate company investments | |
| 49,946 | |
| 17,016 | |
| 95,215 | |
| 33,239 |
Non-controlled affiliate company investments: | |
| | |
|
| |
| | |
|
|
Interest income | |
| 614 | |
| 187 | |
| 1,197 | |
| 351 |
Total investment income from non-controlled affiliate company investments | |
| 614 | |
| 187 | |
| 1,197 | |
| 351 |
Total investment income | |
| 50,560 | |
| 17,203 | |
| 96,412 | |
| 33,590 |
| | | | | | | | | | | | |
Operating expenses: | |
|
| |
|
| |
| | |
|
|
Interest and other debt financing expenses | |
| 13,066 | |
| 4,702 | |
| 25,155 | |
| 7,982 |
Base management fees | |
| 5,382 | |
| 2,678 | |
| 10,229 | |
| 5,474 |
Incentive fees | |
| 3,080 | |
| 383 | |
| 7,231 | |
| 2,206 |
Professional fees | |
| 513 | |
| 540 | |
| 823 | |
| 685 |
Administrative service fees | |
| 392 | |
| 208 | |
| 762 | |
| 411 |
General and administrative expenses | |
| 557 | |
| 304 | |
| 1,062 | |
| 514 |
Directors’ fees | |
| 23 | |
| 22 | |
| 46 | |
| 37 |
Expenses before fee waivers | |
| 23,013 | |
| 8,837 | |
| 45,308 | |
| 17,309 |
Base management fee waivers | |
| — | |
| (1,701) | |
| — | |
| (1,701) |
Incentive fee waivers | |
| — | |
| (1,306) | |
| — | |
| (1,306) |
Total operating expenses, net of fee waivers | |
| 23,013 | |
| 5,830 | |
| 45,308 | |
| 14,302 |
Net investment income before income taxes | |
| 27,547 | |
| 11,373 | |
| 51,104 | |
| 19,288 |
Income taxes, including excise taxes | |
| 189 | |
| 1 | |
| 384 | |
| 1 |
Net investment income | |
| 27,358 | |
| 11,372 | |
| 50,720 | |
| 19,287 |
| | | | | | | | | | | | |
Net gain (loss): | |
|
| |
|
| |
|
| |
|
|
Net realized gain (loss): | |
|
| |
|
| |
|
| |
|
|
Non-controlled/non-affiliate company investments | |
| (1,604) | |
| (42) | |
| (660) | |
| (17) |
Foreign currency forward contracts | |
| 1,708 | |
| 27 | |
| 1,741 | |
| 45 |
Foreign currency and other transactions | |
| 180 | |
| (13) | |
| 176 | |
| (13) |
Net realized gain (loss) | |
| 284 | |
| (28) | |
| 1,257 | |
| 15 |
| | | | | | | | | | | | |
Net change in unrealized gain (loss): | |
|
| |
| | |
|
| |
|
|
Non-controlled/non-affiliate company investments | |
| (2,929) | |
| (6,300) | |
| 1,075 | |
| (3,397) |
Non-controlled/affiliate company investments | | | 120 | | | — | | | 722 | | | — |
Foreign currency forward contracts | |
| (3,272) | |
| 1,335 | |
| (3,159) | |
| 802 |
Foreign currency and other transactions | | | 1 | | | — | | | — | | | — |
Net change in unrealized gain (loss) | |
| (6,080) | |
| (4,965) | |
| (1,362) | |
| (2,595) |
| | | | | | | | | | | | |
Net gain (loss) | |
| (5,796) | |
| (4,993) | |
| (105) | |
| (2,580) |
| | | | | | | | | | | | |
Net increase (decrease) in net assets resulting from operations | | $ | 21,562 | | $ | 6,379 | | $ | 50,615 | | $ | 16,707 |
| | | | | | | | | | | | |
Per common share data: | |
|
| |
| | |
|
| |
|
|
Net investment income per share - basic and diluted | | $ | 0.31 | | $ | 0.22 | | $ | 0.62 | | $ | 0.42 |
Net increase (decrease) in net assets resulting from operations per share - basic and diluted | | $ | 0.25 | | $ | 0.12 | | $ | 0.62 | | $ | 0.37 |
Weighted average common shares outstanding - basic and diluted | |
| 87,873 | |
| 52,248 | |
| 82,020 | |
| 45,526 |
See Notes to Consolidated Financial Statements.
4
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
(in thousands)
| | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | | |
| | Common Stock | | | | | undistributed | | | | ||||
| | | | Par | | Capital in excess of | | (overdistributed) | | Total | ||||
| | Number of shares | | value | | par value | | earnings | | net assets | ||||
Balances at March 31, 2022 |
| 48,956 |
| $ | 49 |
| $ | 486,091 |
| $ | 11,471 |
| $ | 497,611 |
Net investment income |
| — |
| | — |
| | — |
| | 11,372 |
| | 11,372 |
Net realized gain (loss) |
| — |
| | — |
| | — |
| | (28) |
| | (28) |
Net change in unrealized gain (loss) |
| — |
| | — |
| | — |
| | (4,965) |
| | (4,965) |
Issuance of common stock |
| 8,022 |
| | 8 |
| | 81,503 |
| | — |
| | 81,511 |
Repurchase of common stock | | (975) | | | (1) | | | (9,868) | | | — | | | (9,869) |
Distributions declared to stockholders |
| — |
| | — |
| | — |
| | (10,175) |
| | (10,175) |
Stock issued in connection with dividend reinvestment plan | | 345 | | | — | | | 3,503 | | | — | | | 3,503 |
Balances at June 30, 2022 |
| 56,348 |
| $ | 56 |
| $ | 561,229 |
| $ | 7,675 |
| $ | 568,960 |
| | | | | | | | | | | | | | |
Balances at March 31, 2023 |
| 83,765 | | $ | 84 | | $ | 837,918 | | $ | 20,857 | | $ | 858,859 |
Net investment income |
| — | |
| — | |
| — | |
| 27,358 | |
| 27,358 |
Net realized gain (loss) |
| — | |
| — | |
| — | |
| 284 | |
| 284 |
Net change in unrealized gain (loss) |
| — | |
| — | |
| — | |
| (6,080) | |
| (6,080) |
Issuance of common stock |
| 8,321 | |
| 8 | |
| 85,283 | |
| — | |
| 85,291 |
Repurchase of common stock | | (664) | | | (1) | | | (6,815) | | | — | | | (6,816) |
Distributions declared to stockholders |
| — | |
| — | |
| — | |
| (24,203) | |
| (24,203) |
Stock issued in connection with dividend reinvestment plan | | 917 | | | 1 | | | 9,399 | | | — | | | 9,400 |
Balances at June 30, 2023 |
| 92,339 | | $ | 92 | | $ | 925,785 | | $ | 18,216 | | $ | 944,093 |
| | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | | |
| | Common Stock | | | | | undistributed | | | | ||||
| | | | Par | | Capital in excess of | | (overdistributed) | | Total | ||||
| | Number of shares | | value | | par value | | earnings | | net assets | ||||
Balances at December 31, 2021 |
| 36,565 |
| $ | 37 |
| $ | 360,955 |
| $ | 8,456 |
| $ | 369,448 |
Net investment income |
| — |
| | — |
| | — |
| | 7,915 |
| | 7,915 |
Net realized gain (loss) |
| — |
| | — |
| | — |
| | 43 |
| | 43 |
Net change in unrealized gain (loss) |
| — |
| | — |
| | — |
| | 2,370 |
| | 2,370 |
Issuance of common stock |
| 12,174 |
| | 12 |
| | 122,941 |
| | — |
| | 122,953 |
Repurchase of common stock | | — | | | — | | | — | | | — | | | — |
Distributions declared to stockholders |
| — |
| | — |
| | — |
| | (7,313) |
| | (7,313) |
Stock issued in connection with dividend reinvestment plan | | 217 | | | — | | | 2,195 | | | — | | | 2,195 |
Balances at March 31, 2022 |
| 48,956 |
| $ | 49 |
| $ | 486,091 |
| $ | 11,471 |
| $ | 497,611 |
| | | | | | | | | | | | | | |
Balances at December 31, 2022 |
| 74,533 | | $ | 75 | | $ | 744,404 | | $ | 10,437 | | $ | 754,916 |
Net investment income |
| — | |
| — | |
| — | |
| 23,362 | |
| 23,362 |
Net realized gain (loss) |
| — | |
| — | |
| — | |
| 973 | |
| 973 |
Net change in unrealized gain (loss) |
| — | |
| — | |
| — | |
| 4,718 | |
| 4,718 |
Issuance of common stock |
| 9,475 | |
| 9 | |
| 95,968 | |
| — | |
| 95,977 |
Repurchase of common stock | | (907) | | | (1) | | | (9,184) | | | — | | | (9,185) |
Distributions declared to stockholders | | — | | | — | | | — | | | (18,633) | | | (18,633) |
Stock issued in connection with dividend reinvestment plan |
| 664 | |
| 1 | |
| 6,730 | |
| — | |
| 6,731 |
Balances at March 31, 2023 |
| 83,765 | | $ | 84 | | $ | 837,918 | | $ | 20,857 | | $ | 858,859 |
| | | | | | | | | | | | | | |
| | | | | | | | | | Accumulated | | | | |
| | Common Stock | | | | | undistributed | | | | ||||
| | | | Par | | Capital in excess of | | (overdistributed) | | Total | ||||
| | Number of shares | | value | | par value | | earnings | | net assets | ||||
Balances at December 31, 2021 |
| 36,565 |
| $ | 37 |
| $ | 360,955 |
| $ | 8,456 |
| $ | 369,448 |
Net investment income |
| — |
| | — |
| | — |
| | 19,287 |
| | 19,287 |
Net realized gain (loss) |
| — |
| | — |
| | — |
| | 15 |
| | 15 |
Net change in unrealized gain (loss) |
| — |
| | — |
| | — |
| | (2,595) |
| | (2,595) |
Issuance of common stock |
| 20,196 |
| | 20 |
| | 204,444 |
| | — |
| | 204,464 |
Repurchase of common stock | | (975) | | | (1) | | | (9,868) | | | — | | | (9,869) |
Distributions declared to stockholders |
| — |
| | — |
| | — |
| | (17,488) |
| | (17,488) |
Stock issued in connection with dividend reinvestment plan | | 562 | | | — | | | 5,698 | | | — | | | 5,698 |
Balances at June 30, 2022 |
| 56,348 |
| $ | 56 |
| $ | 561,229 |
| $ | 7,675 |
| $ | 568,960 |
| | | | | | | | | | | | | | |
Balances at December 31, 2022 |
| 74,533 | | $ | 75 | | $ | 744,404 | | $ | 10,437 | | $ | 754,916 |
Net investment income |
| — | |
| — | |
| — | |
| 50,720 | |
| 50,720 |
Net realized gain (loss) |
| — | |
| — | |
| — | |
| 1,257 | |
| 1,257 |
Net change in unrealized gain (loss) |
| — | |
| — | |
| — | |
| (1,362) | |
| (1,362) |
Issuance of common stock |
| 17,796 | |
| 17 | |
| 181,251 | |
| — | |
| 181,268 |
Repurchase of common stock | | (1,571) | | | (2) | | | (15,999) | | | — | | | (16,001) |
Distributions declared to stockholders | | — | | | — | | | — | | | (42,836) | | | (42,836) |
Stock issued in connection with dividend reinvestment plan |
| 1,581 | |
| 2 | |
| 16,129 | |
| — | |
| 16,131 |
Balances at June 30, 2023 |
| 92,339 | | $ | 92 | | $ | 925,785 | | $ | 18,216 | | $ | 944,093 |
See Notes to Consolidated Financial Statements.
5
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(in thousands)
| | | | | | | | | | | | |
| | Three months ended March 31, | | Six months ended June 30, | ||||||||
|
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
Cash flows from operating activities: |
| |
|
| |
|
| |
|
| |
|
Net increase (decrease) in net assets resulting from operations | | $ | 29,053 | | $ | 10,328 | | $ | 50,615 | | $ | 16,707 |
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: | |
| | |
| | |
| | |
| |
Net realized (gain) loss on investments | |
| (944) | |
| (25) | |
| 660 | |
| 17 |
Net realized (gain) loss on foreign currency forward contracts | |
| (33) | |
| (18) | |
| (1,741) | |
| (45) |
Net realized (gain) loss on foreign currency and other transactions | |
| 4 | |
| — | |
| (176) | |
| 13 |
Net change in unrealized (gain) loss on investments | |
| (4,606) | |
| (2,903) | |
| (1,797) | |
| 3,397 |
Net change in unrealized (gain) loss on foreign currency forward contracts | |
| (113) | |
| 533 | |
| 3,159 | |
| (802) |
Net change in unrealized (gain) loss on foreign currency and other transactions | |
| 1 | |
| — | ||||||
Payment-in-kind interest income | |
| (2,112) | |
| (679) | |
| (3,733) | |
| (1,634) |
Net accretion of discounts and amortization of premiums | |
| (1,612) | |
| (643) | |
| (2,884) | |
| (1,191) |
Purchases of investments | |
| (100,417) | |
| (79,826) | |
| (368,219) | |
| (214,931) |
Proceeds from principal payments and sale of investments and settlement of forward contracts | |
| 34,810 | |
| 22,290 | |
| 81,936 | |
| 49,218 |
Amortization of deferred financing costs | |
| 730 | |
| 385 | |
| 2,253 | |
| 991 |
Changes in operating assets and liabilities: | |
| | |
| | |
| | |
| |
Interest and dividend receivable | |
| (5,815) | |
| (684) | |
| (7,065) | |
| (1,361) |
Other assets | |
| 9,241 | |
| (86) | |
| 9,259 | |
| (45) |
Interest payable | |
| 1,883 | |
| 672 | |
| 1,587 | |
| 1,908 |
Payable for unsettled trades | | | (134) | | | — | | | (12,947) | | | 4,500 |
Management fees payable | |
| 595 | |
| 430 | |
| 1,130 | |
| (1,389) |
Incentive fees payable | |
| 1,464 | |
| 1,448 | |
| 1,105 | |
| (936) |
Accounts payable and accrued expenses | |
| (12) | |
| 235 | |
| 2,791 | |
| 1,122 |
Directors’ fees payable | | | 23 | | | 15 | ||||||
Net cash provided by (used in) operating activities | |
| (37,994) | |
| (48,528) | |
| (244,067) | |
| (144,461) |
| | | | | | | | | | | | |
Cash flows from financing activities: | |
|
| |
|
| |
|
| |
|
|
Borrowings on 2022 ABS | | | — | | | 306,000 | ||||||
Borrowings on Term Loan | |
| 55,000 | |
| — | |
| 55,000 | |
| — |
Repayments of Term Loan | | | (3,114) | | | — | | | (5,040) | | | — |
Borrowings on Credit Facility | | | 126,600 | | | 75,500 | | | 351,900 | | | 313,600 |
Repayments of Credit Facility | |
| (230,500) | |
| (142,900) | |
| (362,800) | |
| (609,344) |
Proceeds from Short-Term Borrowings | | | 83,088 | | | — | ||||||
Payments of deferred financing costs | |
| (519) | |
| (447) | |
| (536) | |
| (9,477) |
Proceeds from issuance of common stock | |
| 95,977 | |
| 122,953 | |
| 181,268 | |
| 204,464 |
Repurchase of common stock | | | (9,185) | | | — | | | (16,001) | | | (9,869) |
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $6,731 and $2,195, respectively | |
| (11,902) | |
| (5,118) | ||||||
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $16,131 and $5,698, respectively | |
| (26,705) | |
| (11,790) | ||||||
Net cash provided by (used in) financing activities | |
| 22,357 | |
| 49,988 | |
| 260,174 | |
| 183,584 |
| | | | | | | | | | | | |
Net increase (decrease) in Cash and Restricted cash | |
| (15,637) | |
| 1,460 | |
| 16,107 | |
| 39,123 |
Effect of foreign currency exchange rates | |
| (5) | |
| — | |
| 176 | |
| (13) |
Cash and Restricted cash, beginning of period | |
| 52,204 | |
| 13,971 | |
| 52,204 | |
| 13,971 |
Cash and Restricted cash, end of period | | $ | 36,562 | | $ | 15,431 | | $ | 68,487 | | $ | 53,081 |
| | | | | | | | | | | | |
Supplemental disclosure of cash flow information: | |
|
| |
|
| |
| | |
|
|
Cash interest paid during the period | | $ | 9,476 | | $ | 2,223 | | $ | 21,315 | | $ | 5,083 |
Cash paid for income taxes, including excise taxes, during the period | | $ | 170 | | $ | — | | $ | 209 | | $ | 1 |
The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:
| | | | | | | | | | | | |
|
| March 31, 2023 |
| December 31, 2022 |
| June 30, 2023 |
| December 31, 2022 | ||||
Cash | | $ | 4,319 | | $ | 5,716 | | $ | 10,154 | | $ | 5,716 |
Restricted cash | |
| 32,243 | |
| 46,488 | |
| 58,333 | |
| 46,488 |
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows | | $ | 36,562 | | $ | 52,204 | | $ | 68,487 | | $ | 52,204 |
| | | | | | | | | | | | |
| | March 31, 2022 | | December 31, 2021 | | June 30, 2022 | | December 31, 2021 | ||||
Cash | | $ | 3,294 | | $ | 4,998 | | $ | 3,895 | | $ | 4,998 |
Restricted cash | |
| 12,137 | |
| 8,973 | |
| 49,186 | |
| 8,973 |
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows | | $ | 15,431 | | $ | 13,971 | | $ | 53,081 | | $ | 13,971 |
See Notes to Consolidated Financial Statements.
6
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
| |
| Interest | | Acquisition |
| |
| |
| Amortized |
| | |
| % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | |||
Non-Controlled/Non-Affiliate Company Investments |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Senior Secured Loans |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Aerospace & Defense | | | | | | | | | | | | | | | | | | | | | | |
API Holdings III Corp. (~) | | L | | 4.25 | % | 9.41 | % | | 5/2/2019 | | 5/8/2026 | | 1,636 | | $ | 1,632 | | $ | 1,173 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 7/25/2019 | | 7/25/2025 | | 1,930 | | | 1,912 | | | 1,913 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 12/24/2019 | | 7/25/2025 | | 1,007 | | | 998 | | | 998 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 2/17/2021 | | 7/25/2025 | | 1,742 | | | 1,741 | | | 1,726 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 6/15/2021 | | 7/25/2025 | | 1,021 | | | 1,006 | | | 1,012 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 8/10/2021 | | 7/25/2025 | | 997 | | | 985 | | | 988 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver) (*) | | SF | | 6.00 | % | 10.96 | % | | 7/25/2019 | | 7/25/2025 | | 316 | | | 131 | | | 131 | | 0.0 | % |
| | | | | | | | | | | | | 8,649 | | | 8,405 | | | 7,941 | | 0.9 | % |
Automotive |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Born To Run, LLC (~~) (~~~) |
| L | | 6.00 | % | 11.16 | % | | 4/1/2021 |
| 4/1/2027 |
| 8,843 |
| | 8,716 |
| | 8,024 |
| 0.9 | % |
Born To Run, LLC (~~) |
| L | | 6.00 | % | 11.16 | % | | 4/1/2021 |
| 4/1/2027 |
| 1,204 |
| | 1,204 |
| | 1,093 |
| 0.1 | % |
Burgess Point Purchaser Corporation (~) | | SF | | 5.35 | % | 10.16 | % | | 6/30/2022 | | 7/25/2029 | | 4,988 | | | 4,522 | | | 4,771 | | 0.6 | % |
Lifted Trucks Holdings, LLC (~~) (~~~) |
| L | | 5.75 | % | 10.50 | % | | 8/2/2021 |
| 8/2/2027 |
| 9,900 |
| | 9,747 |
| | 9,806 |
| 1.1 | % |
Lifted Trucks Holdings, LLC (Revolver) (*) |
| L | | 5.75 | % | 10.54 | % | | 8/2/2021 |
| 8/2/2027 |
| 2,381 |
| | 317 |
| | 314 |
| 0.0 | % |
Panda Acquisition, LLC (~) | | SF | | 6.25 | % | 10.98 | % | | 12/20/2022 | | 10/18/2028 | | 9,938 | | | 8,202 | | | 8,198 | | 0.9 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 7/8/2022 | | 12/14/2026 | | 127 | | | 125 | | | 127 | | 0.0 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 3/11/2020 | | 12/14/2026 | | 3,374 | | | 3,354 | | | 3,355 | | 0.4 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 11/23/2021 | | 12/14/2026 | | 626 | | | 626 | | | 623 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 3/11/2020 | | 12/14/2026 | | 500 | | | 500 | | | 497 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 11/23/2021 | | 12/14/2026 | | 556 | | | 556 | | | 553 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 11/23/2021 | | 12/14/2026 | | 713 | | | 713 | | | 709 | | 0.1 | % |
|
| | | | | | | | | | | | 43,150 |
| | 38,582 |
| | 38,070 |
| 4.4 | % |
Banking |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
MV Receivables II, LLC (<) |
| L | | 9.75 | % | 14.41 | % | | 7/29/2021 |
| 7/29/2026 |
| 10,163 |
| | 9,709 |
| | 9,742 |
| 1.1 | % |
StarCompliance MidCo, LLC (~~) |
| L | | 6.75 | % | 11.91 | % | | 1/12/2021 |
| 1/12/2027 |
| 3,000 |
| | 2,960 |
| | 2,955 |
| 0.4 | % |
StarCompliance MidCo, LLC (~~) |
| L | | 6.75 | % | 11.91 | % | | 10/12/2021 |
| 1/12/2027 |
| 503 |
| | 496 |
| | 496 |
| 0.1 | % |
StarCompliance MidCo, LLC (Revolver) (*) |
| L | | 6.75 | % | 11.59 | % | | 1/12/2021 |
| 1/12/2027 |
| 484 |
| | 140 |
| | 138 |
| 0.0 | % |
|
| | | | | | | | | | | | 14,150 |
| | 13,305 |
| | 13,331 |
| 1.6 | % |
Beverage, Food & Tobacco |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
LVF Holdings, Inc. (~) |
| SF | | 6.40 | % | 11.30 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,448 |
| | 3,396 |
| | 3,348 |
| 0.4 | % |
LVF Holdings, Inc. (~) |
| SF | | 6.40 | % | 11.30 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,299 |
| | 3,299 |
| | 3,205 |
| 0.4 | % |
LVF Holdings, Inc. (Delayed Draw) (*) (**) |
| SF | | 6.40 | % | 11.30 | % | | 6/10/2021 |
| 6/10/2027 |
| 802 |
| | — |
| | — |
| 0.0 | % |
LVF Holdings, Inc. (Revolver) (*) |
| SF | | 6.40 | % | 11.30 | % | | 6/10/2021 |
| 6/10/2027 |
| 554 |
| | 322 |
| | 312 |
| 0.0 | % |
LX/JT Intermediate Holdings, Inc. (~~~) |
| SF | | 6.00 | % | 10.91 | % | | 3/11/2020 |
| 3/11/2025 |
| 3,266 |
| | 3,238 |
| | 3,231 |
| 0.4 | % |
LX/JT Intermediate Holdings, Inc. (Revolver) (*) |
| SF | | 6.00 | % | 10.91 | % | | 3/11/2020 |
| 3/11/2025 |
| 500 |
| | — |
| | — |
| 0.0 | % |
Sabrosura Foods, LLC et al (~) (~~) | | L | | 5.50 | % | 10.34 | % | | 10/18/2019 | | 10/18/2024 | | 4,624 | | | 4,593 | | | 4,576 | | 0.5 | % |
Sabrosura Foods, LLC et al (~) | | L | | 5.50 | % | 10.33 | % | | 10/18/2019 | | 10/18/2024 | | 261 | | | 261 | | | 259 | | 0.0 | % |
Sabrosura Foods, LLC et al (Revolver) | | L | | 5.50 | % | 10.45 | % | | 10/18/2019 | | 10/18/2024 | | 1,286 | | | 1,286 | | | 1,272 | | 0.2 | % |
| | | | | | | | | | | | | 18,040 |
| | 16,395 |
| | 16,203 |
| 1.9 | % |
| | | | | | | | | | | | | | | | | | | | | | |
|
| |
| |
| Interest | | Acquisition |
| |
| |
| Amortized |
| | |
| % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | |||
Non-Controlled/Non-Affiliate Company Investments |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Senior Secured Loans |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Aerospace & Defense | | | | | | | | | | | | | | | | | | | | | | |
API Holdings III Corp. (~) | | SF | | 4.51 | % | 9.75 | % | | 5/2/2019 | | 5/8/2026 | | 1,632 | | $ | 1,629 | | $ | 1,137 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 7/25/2019 | | 7/25/2025 | | 1,925 | | | 1,909 | | | 1,911 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 12/24/2019 | | 7/25/2025 | | 1,005 | | | 997 | | | 997 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 2/17/2021 | | 7/25/2025 | | 1,738 | | | 1,737 | | | 1,725 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 6/15/2021 | | 7/25/2025 | | 1,019 | | | 1,004 | | | 1,011 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | SF | | 6.00 | % | 10.96 | % | | 8/10/2021 | | 7/25/2025 | | 995 | | | 984 | | | 987 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver) (*) | | SF | | 6.00 | % | 10.96 | % | | 7/25/2019 | | 7/25/2025 | | 316 | | | 210 | | | 210 | | 0.0 | % |
| | | | | | | | | | | | | 8,630 | | | 8,470 | | | 7,978 | | 0.8 | % |
Automotive |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Born To Run, LLC (~~) (~~~) |
| L | | 6.00 | % | 11.19 | % | | 4/1/2021 |
| 4/1/2027 |
| 8,820 |
| | 8,701 |
| | 7,867 |
| 0.8 | % |
Born To Run, LLC (~~) |
| L | | 6.00 | % | 11.19 | % | | 4/1/2021 |
| 4/1/2027 |
| 1,201 |
| | 1,201 |
| | 1,071 |
| 0.1 | % |
Burgess Point Purchaser Corporation (~) | | SF | | 5.35 | % | 10.45 | % | | 6/30/2022 | | 7/25/2029 | | 4,975 | | | 4,522 | | | 4,734 | | 0.5 | % |
Lifted Trucks Holdings, LLC (~~) (~~~) |
| L | | 5.75 | % | 10.93 | % | | 8/2/2021 |
| 8/2/2027 |
| 9,850 |
| | 9,706 |
| | 9,732 |
| 1.0 | % |
Lifted Trucks Holdings, LLC (Revolver) (*) |
| L | | 5.75 | % | 10.93 | % | | 8/2/2021 |
| 8/2/2027 |
| 2,381 |
| | 317 |
| | 314 |
| 0.0 | % |
Panda Acquisition, LLC (~) | | SF | | 6.35 | % | 11.59 | % | | 12/20/2022 | | 10/18/2028 | | 9,875 | | | 8,200 | | | 8,270 | | 0.9 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 7/8/2022 | | 12/14/2026 | | 127 | | | 125 | | | 127 | | 0.0 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 3/11/2020 | | 12/14/2026 | | 3,365 | | | 3,346 | | | 3,358 | | 0.3 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 11/23/2021 | | 12/14/2026 | | 625 | | | 625 | | | 624 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 3/11/2020 | | 12/14/2026 | | 499 | | | 499 | | | 498 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 11/23/2021 | | 12/14/2026 | | 554 | | | 554 | | | 553 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.69 | % | | 11/23/2021 | | 12/14/2026 | | 711 | | | 711 | | | 709 | | 0.1 | % |
|
| | | | | | | | | | | | 42,983 |
| | 38,507 |
| | 37,857 |
| 4.0 | % |
Banking |
|
| |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
MV Receivables II, LLC (<) |
| L | | 9.75 | % | 14.92 | % | | 7/29/2021 |
| 7/29/2026 |
| 10,163 |
| | 9,709 |
| | 12,412 |
| 1.3 | % |
StarCompliance MidCo, LLC (~) |
| SF | | 6.85 | % | 11.95 | % | | 5/31/2023 |
| 1/12/2027 |
| 385 |
| | 375 |
| | 380 |
| 0.0 | % |
StarCompliance MidCo, LLC (~~) |
| SF | | 6.85 | % | 12.09 | % | | 1/12/2021 |
| 1/12/2027 |
| 3,000 |
| | 2,962 |
| | 2,966 |
| 0.3 | % |
StarCompliance MidCo, LLC (~~) | | SF | | 6.85 | % | 12.09 | % | | 10/12/2021 | | 1/12/2027 | | 503 | | | 496 | | | 498 | | 0.1 | % |
StarCompliance MidCo, LLC (Revolver) (*) |
| SF | | 6.85 | % | 11.95 | % | | 1/12/2021 |
| 1/12/2027 |
| 484 |
| | 140 |
| | 139 |
| 0.0 | % |
|
| | | | | | | | | | | | 14,535 |
| | 13,682 |
| | 16,395 |
| 1.7 | % |
Beverage, Food & Tobacco |
|
| |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
LVF Holdings, Inc. (~) |
| SF | | 6.40 | % | 11.64 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,439 |
| | 3,390 |
| | 3,344 |
| 0.4 | % |
LVF Holdings, Inc. (~) |
| SF | | 6.40 | % | 11.64 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,291 |
| | 3,291 |
| | 3,200 |
| 0.3 | % |
LVF Holdings, Inc. (Revolver) (*) |
| SF | | 6.40 | % | 11.64 | % | | 6/10/2021 |
| 6/10/2027 |
| 554 |
| | 322 |
| | 313 |
| 0.0 | % |
LX/JT Intermediate Holdings, Inc. (~~~) |
| SF | | 6.00 | % | 11.20 | % | | 3/11/2020 |
| 3/11/2025 |
| 3,251 |
| | 3,226 |
| | 3,228 |
| 0.4 | % |
LX/JT Intermediate Holdings, Inc. (Revolver) (*) |
| SF | | 6.00 | % | 11.20 | % | | 3/11/2020 |
| 3/11/2025 |
| 500 |
| | — |
| | — |
| 0.0 | % |
Project Cloud Holdings, LLC (*) (**) (d) |
| SF | | 6.50 | % | 12.00 | % | | 6/14/2023 |
| 3/31/2029 |
| 12,000 |
| | — |
| | — |
| 0.0 | % |
Sabrosura Foods, LLC et al (~) (~~) | | SF | | 5.60 | % | 10.70 | % | | 10/18/2019 | | 10/18/2024 | | 4,587 | | | 4,560 | | | 4,529 | | 0.5 | % |
Sabrosura Foods, LLC et al (~) | | SF | | 5.50 | % | 10.77 | % | | 10/18/2019 | | 10/18/2024 | | 259 | | | 259 | | | 256 | | 0.0 | % |
Sabrosura Foods, LLC et al (Revolver) | | SF | | 5.60 | % | 10.70 | % | | 10/18/2019 | | 10/18/2024 | | 1,286 | | | 1,286 | | | 1,270 | | 0.1 | % |
| | | | | | | | | | | | | 29,167 |
| | 16,334 |
| | 16,140 |
| 1.7 | % |
7
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Capital Equipment |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Adept AG Holdings, LLC (~~~) | | SF | | 6.15 | % | 11.05 | % | | 8/11/2022 | | 8/11/2027 | | 6,468 | | $ | 6,353 | | $ | 6,346 | | 0.7 | % |
Adept AG Holdings, LLC (~) (<) (a) |
| SF | | 6.40 | % | 11.30 | % | | 8/11/2022 | | 8/11/2027 | | 10,792 |
| | 10,658 |
| | 10,589 |
| 1.2 | % |
Adept AG Holdings, LLC (~~~) |
| SF | | 6.15 | % | 11.05 | % | | 8/11/2022 | | 8/11/2027 | | 1,621 |
| | 1,621 |
| | 1,590 |
| 0.2 | % |
Adept AG Holdings, LLC (Revolver) (<) (*) (a) |
| SF | | 6.40 | % | 11.30 | % | | 8/11/2022 | | 8/11/2027 | | 1,082 |
| | — |
| | — |
| 0.0 | % |
Adept AG Holdings, LLC (Revolver) (*) |
| SF | | 6.15 | % | 11.05 | % | | 8/11/2022 | | 8/11/2027 | | 1,300 |
| | — |
| | — |
| 0.0 | % |
CGI Automated Manufacturing, LLC (~) |
| SF | | 7.00 | % | 12.16 | % | | 9/9/2022 | | 12/17/2026 | | 8,888 |
| | 8,653 |
| | 8,788 |
| 1.0 | % |
CGI Automated Manufacturing, LLC (~) |
| SF | | 7.00 | % | 12.16 | % | | 9/30/2022 | | 12/17/2026 | | 5,655 |
| | 5,530 |
| | 5,592 |
| 0.7 | % |
CGI Automated Manufacturing, LLC (~) | | SF | | 7.00 | % | 12.16 | % | | 9/9/2022 | | 12/17/2026 | | 10,821 | | | 10,536 | | | 10,700 | | 1.2 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.00 | % | 11.16 | % | | 2/28/2020 | | 11/28/2025 | | 7,757 | | | 7,679 | | | 7,753 | | 0.9 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.00 | % | 10.90 | % | | 12/29/2021 | | 11/28/2025 | | 2,372 | | | 2,338 | | | 2,371 | | 0.3 | % |
MCP Shaw Acquisitionco, LLC (~~~) | | SF | | 6.00 | % | 10.90 | % | | 12/29/2021 | | 11/28/2025 | | 780 | | | 780 | | | 780 | | 0.1 | % |
MCP Shaw Acquisitionco, LLC (Revolver) (*) |
| SF | | 6.00 | % | 11.16 | % | | 2/28/2020 | | 11/28/2025 | | 1,427 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | | | | 58,963 |
| | 54,148 |
| | 54,509 |
| 6.3 | % |
Construction & Building |
| | | | | | | | | | | | |
| | |
| | |
| | |
| | | | | | 12.45 | % Cash/ | | | | | | | | | | | | | | | |
Premier Roofing L.L.C. (~) |
| L | | 8.50 | % | 1.00 | % PIK | | 8/31/2020 | | 8/29/2025 | | 3,450 |
| | 3,415 |
| | 3,398 |
| 0.4 | % |
|
| | | | | 12.45 | % Cash/ | | | | | | |
| | |
| | |
| | |
Premier Roofing L.L.C. (Revolver) (*) |
| L | | 8.50 | % | 1.00 | % PIK | | 8/31/2020 | | 8/29/2025 | | 1,207 |
| | 967 |
| | 952 |
| 0.1 | % |
TCFIII Owl Buyer LLC (~~) (~~~) |
| SF | | 5.50 | % | 10.42 | % | | 4/19/2021 | | 4/17/2026 | | 4,421 |
| | 4,372 |
| | 4,421 |
| 0.5 | % |
TCFIII Owl Buyer LLC (~~~) |
| SF | | 5.50 | % | 10.42 | % | | 4/19/2021 | | 4/17/2026 | | 5,398 |
| | 5,398 |
| | 5,399 |
| 0.6 | % |
TCFIII Owl Buyer LLC (~~) (~~~) | | SF | | 5.50 | % | 10.42 | % | | 12/17/2021 | | 4/17/2026 | | 4,845 | | | 4,783 | | | 4,845 | | 0.6 | % |
|
| | | | | | | | | | | | 19,321 |
| | 18,935 |
| | 19,015 |
| 2.2 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | | | | |
Independence Buyer, Inc. (~~) (~~~) | | SF | | 5.50 | % | 10.33 | % | | 8/3/2021 | | 8/3/2026 | | 11,544 | | | 11,383 | | | 11,429 | | 1.3 | % |
Independence Buyer, Inc. (Revolver) (*) | | SF | | 5.50 | % | 10.33 | % | | 8/3/2021 | | 8/3/2026 | | 2,964 | | | — | | | — | | 0.0 | % |
Recycled Plastics Industries, LLC (~~) (~~~) |
| L | | 6.75 | % | 11.41 | % | | 8/4/2021 | | 8/4/2026 | | 5,418 |
| | 5,341 |
| | 5,255 |
| 0.6 | % |
Recycled Plastics Industries, LLC (Revolver) (*) |
| L | | 6.75 | % | 11.58 | % | | 8/4/2021 | | 8/4/2026 | | 743 |
| | 297 |
| | 288 |
| 0.1 | % |
|
| | | | | | | | | | | | 20,669 |
| | 17,021 |
| | 16,972 |
| 2.0 | % |
Consumer Goods: Non-Durable |
| | | | | | | | | | | | |
| | |
| | |
| | |
Arizona Natural Resources, LLC (~) (~~~) |
| SF | | 6.50 | % | 11.28 | % | | 5/18/2021 | | 5/18/2026 | | 13,790 |
| | 13,605 |
| | 13,638 |
| 1.6 | % |
Arizona Natural Resources, LLC (~) |
| SF | | 6.50 | % | 11.28 | % | | 12/15/2021 | | 5/18/2026 | | 2,531 |
| | 2,494 |
| | 2,504 |
| 0.3 | % |
Arizona Natural Resources, LLC (~) |
| SF | | 6.50 | % | 11.28 | % | | 8/12/2022 | | 5/18/2026 | | 6,867 |
| | 6,750 |
| | 6,791 |
| 0.8 | % |
Arizona Natural Resources, LLC |
| SF | | 6.61 | % | 11.42 | % | | 8/12/2022 | | 5/18/2026 | | 2,958 |
| | 2,958 |
| | 2,958 |
| 0.4 | % |
Arizona Natural Resources, LLC (Revolver) (*) |
| SF | | 6.50 | % | 11.28 | % | | 5/18/2021 | | 5/18/2026 | | 2,222 |
| | 1,778 |
| | 1,758 |
| 0.2 | % |
|
| | | | | 12.14 | % Cash/ | | | | | | |
| | |
| | |
| | |
The Kyjen Company, LLC (~) (~~) | | SF | | 7.25 | % | 0.50 | % PIK | | 5/14/2021 | | 4/3/2026 | | 2,955 |
| | 2,934 |
| | 2,916 | | 0.3 | % |
The Kyjen Company, LLC | | SF | | 7.00 | % | 11.95 | % PIK | | 9/13/2022 | | 4/3/2026 | | 1 |
| | 1 |
| | 1 | | 0.0 | % |
| | | | | | 11.45 | % Cash/ | | | | | | |
| | |
| | | | | |
The Kyjen Company, LLC (Revolver) (*) |
| SF | | 7.10 | % | 0.50 | % PIK | | 5/14/2021 | | 4/3/2026 | | 315 |
| | 268 |
| | 264 |
| 0.0 | % |
Thrasio, LLC (~) (~~) |
| L | | 7.00 | % | 12.16 | % | | 12/18/2020 | | 12/18/2026 | | 4,878 |
| | 4,829 |
| | 4,841 |
| 0.6 | % |
|
| | | | | | | | | | | | 36,517 |
| | 35,617 |
| | 35,671 |
| 4.2 | % |
Containers, Packaging & Glass |
| | | | | | | | | | | | |
| | |
| | |
| | |
B2B Industrial Products LLC (~) (~~~) |
| SF | | 6.75 | % | 11.80 | % | | 12/6/2022 | | 10/7/2026 | | 9,975 |
| | 9,745 |
| | 9,965 |
| 1.2 | % |
Polychem Acquisition, LLC (~) |
| L | | 5.00 | % | 9.84 | % | | 4/8/2019 | | 3/17/2025 | | 1,920 |
| | 1,918 |
| | 1,920 |
| 0.2 | % |
| | | | | | | | | | | | | 11,895 | | | 11,663 | | | 11,885 | | 1.4 | % |
Energy: Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Liquid Tech Solutions Holdings, LLC (~) | | SF | | 4.75 | % | 9.71 | % | | 3/18/2021 | | 3/17/2028 | | 2,243 | | | 2,235 | | | 2,170 | | 0.3 | % |
| | | | | | | | | | | | | 2,243 | | | 2,235 | | | 2,170 | | 0.3 | % |
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Capital Equipment |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Adept AG Holdings, LLC (~~~) | | SF | | 6.40 | % | 11.64 | % | | 8/11/2022 | | 8/11/2027 | | 6,451 | | $ | 6,343 | | $ | 6,144 | | 0.6 | % |
Adept AG Holdings, LLC (~) (<) (a) |
| SF | | 6.65 | % | 11.89 | % | | 8/11/2022 | | 8/11/2027 | | 10,988 |
| | 10,632 |
| | 10,548 |
| 1.1 | % |
Adept AG Holdings, LLC (~~~) |
| SF | | 6.40 | % | 11.64 | % | | 8/11/2022 | | 8/11/2027 | | 1,617 |
| | 1,617 |
| | 1,540 |
| 0.2 | % |
Adept AG Holdings, LLC (Revolver) (<) (*) (a) |
| SF | | 6.60 | % | 11.70 | % | | 8/11/2022 | | 8/11/2027 | | 1,104 |
| | 1,055 |
| | 1,037 |
| 0.1 | % |
Adept AG Holdings, LLC (Revolver) |
| SF | | 6.35 | % | 11.45 | % | | 8/11/2022 | | 8/11/2027 | | 1,300 |
| | 1,300 |
| | 1,238 |
| 0.1 | % |
CGI Automated Manufacturing, LLC (~) |
| SF | | 7.00 | % | 12.22 | % | | 9/9/2022 | | 12/17/2026 | | 8,831 |
| | 8,609 |
| | 8,677 |
| 0.9 | % |
CGI Automated Manufacturing, LLC (~) |
| SF | | 7.00 | % | 12.22 | % | | 9/30/2022 | | 12/17/2026 | | 5,619 |
| | 5,500 |
| | 5,521 |
| 0.6 | % |
CGI Automated Manufacturing, LLC (~) | | SF | | 7.11 | % | 12.22 | % | | 9/9/2022 | | 12/17/2026 | | 10,753 | | | 10,482 | | | 10,565 | | 1.1 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.26 | % | 11.50 | % | | 2/28/2020 | | 11/28/2025 | | 7,699 | | | 7,630 | | | 7,718 | | 0.8 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.26 | % | 11.36 | % | | 12/29/2021 | | 11/28/2025 | | 2,354 | | | 2,324 | | | 2,360 | | 0.3 | % |
MCP Shaw Acquisitionco, LLC (~~~) | | SF | | 6.26 | % | 11.50 | % | | 12/29/2021 | | 11/28/2025 | | 774 | | | 774 | | | 776 | | 0.1 | % |
MCP Shaw Acquisitionco, LLC (Revolver) (*) |
| SF | | 6.26 | % | 11.50 | % | | 2/28/2020 | | 11/28/2025 | | 1,427 |
| | — |
| | — |
| 0.0 | % |
Specialty Manufacturing Buyer, LLC (~~~~) | | SF | | 6.76 | % | 12.00 | % | | 6/30/2023 | | 6/30/2028 | | 16,000 | | | 15,600 | | | 15,600 | | 1.7 | % |
Specialty Manufacturing Buyer, LLC (Delayed Draw) (*) (**) | | SF | | 6.76 | % | 12.00 | % | | 6/30/2023 | | 6/30/2028 | | 6,004 | | | — | | | — | | 0.0 | % |
Specialty Manufacturing Buyer, LLC (Revolver) (*) | | SF | | 6.76 | % | 12.00 | % | | 6/30/2023 | | 6/30/2028 | | 3,002 | | | — | | | — | | 0.0 | % |
|
| | | | | | | | | | | | 83,923 |
| | 71,866 |
| | 71,724 |
| 7.6 | % |
Chemicals, Plastics & Rubber | | | | | | | | | | | | | | | | | | | | | | |
PHM Netherlands Midco B.V. (~) (<) (b) | | L | | 4.50 | % | 9.77 | % | | 4/4/2023 | | 7/31/2026 | | 758 | | | 740 | | | 705 | | 0.1 | % |
| | | | | | | | | | | | | 758 | | | 740 | | | 705 | | 0.1 | % |
Construction & Building |
| | | | | | | | | | | | |
| | |
| | |
| | |
MEI Buyer LLC (~~~~) | | SF | | 6.50 | % | 11.60 | % | | 6/30/2023 | | 6/29/2029 | | 25,608 | | | 24,840 | | | 24,840 | | 2.6 | % |
MEI Buyer LLC (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.60 | % | | 6/30/2023 | | 6/29/2029 | | 4,054 | | | — | | | — | | 0.0 | % |
MEI Buyer LLC (Revolver) (*) | | SF | | 6.50 | % | 11.60 | % | | 6/30/2023 | | 6/29/2029 | | 5,253 | | | — | | | — | | 0.0 | % |
|
| | | | | 12.91 | % Cash/ | | | | | | |
| | |
| | |
| | |
Premier Roofing L.L.C. (~) |
| SF | | 8.65 | % | 1.00 | % PIK | | 8/31/2020 | | 8/29/2025 | | 3,074 |
| | 3,046 |
| | 3,041 |
| 0.3 | % |
|
| | | | | 12.91 | % Cash/ | | | | | | |
| | |
| | |
| | |
Premier Roofing L.L.C. (Revolver) (*) |
| SF | | 8.65 | % | 1.00 | % PIK | | 8/31/2020 | | 8/29/2025 | | 1,207 |
| | 969 |
| | 959 |
| 0.1 | % |
TCFIII Owl Buyer LLC (~~) (~~~) |
| SF | | 5.50 | % | 10.72 | % | | 4/19/2021 | | 4/17/2026 | | 4,410 |
| | 4,363 |
| | 4,410 |
| 0.5 | % |
TCFIII Owl Buyer LLC (~~~) |
| SF | | 5.50 | % | 10.72 | % | | 4/19/2021 | | 4/17/2026 | | 5,385 |
| | 5,385 |
| | 5,385 |
| 0.6 | % |
TCFIII Owl Buyer LLC (~~) (~~~) | | SF | | 5.50 | % | 10.72 | % | | 12/17/2021 | | 4/17/2026 | | 4,833 | | | 4,775 | | | 4,833 | | 0.5 | % |
|
| | | | | | | | | | | | 53,824 |
| | 43,378 |
| | 43,468 |
| 4.6 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | | | | |
Independence Buyer, Inc. (~~) (~~~) | | SF | | 5.75 | % | 10.94 | % | | 8/3/2021 | | 8/3/2026 | | 11,515 | | | 11,366 | | | 11,328 | | 1.2 | % |
Independence Buyer, Inc. (Revolver) (*) | | SF | | 5.75 | % | 10.94 | % | | 8/3/2021 | | 8/3/2026 | | 2,964 | | | — | | | — | | 0.0 | % |
Recycled Plastics Industries, LLC (~~) (~~~) |
| L | | 6.75 | % | 11.92 | % | | 8/4/2021 | | 8/4/2026 | | 5,212 |
| | 5,143 |
| | 4,925 |
| 0.6 | % |
Recycled Plastics Industries, LLC (Revolver) (*) |
| L | | 6.75 | % | 11.93 | % | | 8/4/2021 | | 8/4/2026 | | 743 |
| | 297 |
| | 281 |
| 0.0 | % |
Snap One Holdings Corp. (~) (<) | | SF | | 4.65 | % | 9.89 | % | | 4/3/2023 | | 12/8/2028 | | 6,059 | | | 5,694 | | | 5,807 | | 0.6 | % |
|
| | | | | | | | | | | | 26,493 |
| | 22,500 |
| | 22,341 |
| 2.4 | % |
Consumer Goods: Non-Durable |
| | | | | | | | | | | | |
| | |
| | |
| | |
Arizona Natural Resources, LLC (~) (~~~) |
| SF | | 6.36 | % | 11.52 | % | | 5/18/2021 | | 5/18/2026 | | 13,755 |
| | 13,582 |
| | 13,617 |
| 1.4 | % |
Arizona Natural Resources, LLC (~) |
| SF | | 6.36 | % | 11.52 | % | | 12/15/2021 | | 5/18/2026 | | 2,525 |
| | 2,490 |
| | 2,500 |
| 0.3 | % |
Arizona Natural Resources, LLC (~) |
| SF | | 6.36 | % | 11.52 | % | | 8/12/2022 | | 5/18/2026 | | 6,850 |
| | 6,741 |
| | 6,781 |
| 0.7 | % |
Arizona Natural Resources, LLC (~~) |
| SF | | 6.36 | % | 11.52 | % | | 8/12/2022 | | 5/18/2026 | | 2,958 |
| | 2,958 |
| | 2,928 |
| 0.3 | % |
Arizona Natural Resources, LLC (Revolver) (*) |
| SF | | 6.36 | % | 11.52 | % | | 5/18/2021 | | 5/18/2026 | | 2,222 |
| | 1,778 |
| | 1,760 |
| 0.2 | % |
PetIQ, LLC (~) (<) | | SF | | 4.25 | % | 9.46 | % | | 5/10/2023 | | 4/13/2028 | | 9,530 | | | 9,092 | | | 8,911 | | 1.0 | % |
|
| | | | | 12.14 | % Cash/ | | | | | | |
| | |
| | |
| | |
The Kyjen Company, LLC (~) (~~) | | SF | | 7.75 | % | 1.00 | % PIK | | 5/14/2021 | | 4/3/2026 | | 2,963 |
| | 2,945 |
| | 2,929 | | 0.3 | % |
The Kyjen Company, LLC | | SF | | 7.50 | % | 12.65 | % PIK | | 9/13/2022 | | 4/3/2026 | | 2 |
| | 2 |
| | 2 | | 0.0 | % |
| | | | | | 12.14 | % Cash/ | | | | | | |
| | |
| | | | | |
The Kyjen Company, LLC (Revolver) (*) |
| SF | | 7.10 | % | 0.50 | % PIK | | 5/14/2021 | | 4/3/2026 | | 315 |
| | — |
| | — |
| 0.0 | % |
Thrasio, LLC (~) (~~) |
| SF | | 7.26 | % | 12.50 | % | | 12/18/2020 | | 12/18/2026 | | 4,865 |
| | 4,819 |
| | 4,829 |
| 0.5 | % |
|
| | | | | | | | | | | | 45,985 |
| | 44,407 |
| | 44,257 |
| 4.7 | % |
Containers, Packaging & Glass |
| | | | | | | | | | | | |
| | |
| | |
| | |
B2B Industrial Products LLC (~) (~~~) |
| SF | | 6.85 | % | 11.95 | % | | 12/6/2022 | | 10/7/2026 | | 9,950 |
| | 9,734 |
| | 9,910 |
| 1.1 | % |
B2B Industrial Products LLC (~) | | P | | 5.75 | % | 14.00 | % | | 4/4/2023 | | 10/7/2026 | | 2,303 | | | 2,248 | | | 2,293 | | 0.2 | % |
Polychem Acquisition, LLC (~) |
| SF | | 5.11 | % | 10.22 | % | | 4/8/2019 | | 3/17/2025 | | 1,915 |
| | 1,913 |
| | 1,915 |
| 0.2 | % |
| | | | | | | | | | | | | 14,168 | | | 13,895 | | | 14,118 | | 1.5 | % |
Energy: Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Liquid Tech Solutions Holdings, LLC (~) | | L | | 4.75 | % | 9.96 | % | | 3/18/2021 | | 3/17/2028 | | 2,237 | | | 2,229 | | | 2,198 | | 0.2 | % |
| | | | | | | | | | | | | 2,237 | | | 2,229 | | | 2,198 | | 0.2 | % |
8
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| | | |
| Interest | | Acquisition |
| |
| |
| Amortized |
| | |
| % of | |
| | | |
| Interest | | Acquisition |
| |
| |
| Amortized |
| | |
| % of | | ||||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | ||||||
Environmental Industries | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quest Resource Management Group, LLC (~~) (~~~) |
| SF | | 7.00 | % | 11.67 | % | | 10/19/2020 |
| 10/20/2025 |
| 970 | | $ | 913 |
| $ | 944 |
| 0.1 | % |
| SF | | 7.11 | % | 12.27 | % | | 10/19/2020 |
| 10/20/2025 |
| 888 | | $ | 839 |
| $ | 877 |
| 0.1 | % |
Quest Resource Management Group, LLC (~~~) |
| SF | | 7.00 | % | 11.78 | % | | 10/19/2020 |
| 10/20/2025 |
| 1,065 | |
| 1,065 |
| | 1,036 |
| 0.1 | % |
| SF | | 7.11 | % | 12.27 | % | | 10/19/2020 |
| 10/20/2025 |
| 976 | |
| 976 |
| | 963 |
| 0.1 | % |
Quest Resource Management Group, LLC (~~) (~~~) |
| SF | | 7.00 | % | 11.78 | % | | 12/7/2021 |
| 10/20/2025 |
| 3,787 | |
| 3,734 |
| | 3,673 |
| 0.4 | % |
| SF | | 7.11 | % | 12.27 | % | | 12/7/2021 |
| 10/20/2025 |
| 3,469 | |
| 3,425 |
| | 3,410 |
| 0.3 | % |
Quest Resource Management Group, LLC |
| SF | | 7.00 | % | 11.78 | % | | 12/7/2021 |
| 10/20/2025 |
| 382 | |
| 382 |
| | 370 |
| 0.1 | % | ||||||||||||||||||||||
Quest Resource Management Group, LLC (~~) |
| SF | | 7.11 | % | 12.27 | % | | 12/7/2021 |
| 10/20/2025 |
| 350 | |
| 350 |
| | 344 |
| 0.0 | % | ||||||||||||||||||||||
Trilon Group, LLC (~~~) |
| SF | | 6.25 | % | 11.08 | % | | 10/28/2022 |
| 5/25/2029 |
| 5,500 | |
| 5,352 |
| | 5,448 |
| 0.6 | % |
| SF | | 6.25 | % | 11.45 | % | | 10/28/2022 |
| 5/25/2029 |
| 5,486 | |
| 5,347 |
| | 5,456 |
| 0.6 | % |
Trilon Group, LLC (~) (~~) |
| SF | | 6.25 | % | 11.51 | % | | 10/28/2022 | | 5/25/2029 | | 4,400 | |
| 4,400 |
| | 4,358 |
| 0.5 | % |
| SF | | 6.40 | % | 11.64 | % | | 10/28/2022 | | 5/25/2029 | | 4,389 | |
| 4,389 |
| | 4,365 |
| 0.5 | % |
Volt Bidco, Inc. (~~) |
| SF | | 7.00 | % | 11.90 | % | | 8/11/2021 |
| 8/11/2027 |
| 9,059 | |
| 8,912 |
| | 9,059 |
| 1.1 | % |
| SF | | 7.00 | % | 12.24 | % | | 8/11/2021 |
| 8/11/2027 |
| 9,059 | |
| 8,920 |
| | 9,059 |
| 1.0 | % |
Volt Bidco, Inc. (Delayed Draw) (*) (**) |
| SF | | 7.00 | % | 11.90 | % PIK | | 8/11/2021 |
| 8/11/2027 |
| 1,614 | |
| 1,164 |
| | 1,164 |
| 0.1 | % |
| SF | | 7.00 | % | 12.24 | % PIK | | 8/11/2021 |
| 8/11/2027 |
| 1,614 | |
| 1,472 |
| | 1,472 |
| 0.1 | % |
Volt Bidco, Inc. (Revolver) (*) |
| SF | | 7.00 | % | 11.90 | % | | 8/11/2021 |
| 8/11/2027 |
| 956 | |
| — |
| | — |
| 0.0 | % |
| SF | | 7.00 | % | 12.24 | % | | 8/11/2021 |
| 8/11/2027 |
| 956 | |
| — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 27,733 | | | 25,922 | | | 26,052 | | 3.0 | % | | | | | | | | | | | | | 27,187 | | | 25,718 | | | 25,946 | | 2.7 | % |
FIRE: Finance |
| | | | | | | | |
| |
| | |
| |
| | |
| | |
| | | | | | | | |
| |
| | |
| |
| | |
| | |
Avalara, Inc. (~~) | | SF | | 7.25 | % | 12.15 | % | | 10/19/2022 | | 10/19/2028 | | 10,000 | | | 9,766 | | | 10,000 | | 1.2 | % | | SF | | 7.25 | % | 12.49 | % | | 10/19/2022 | | 10/19/2028 | | 10,000 | | | 9,774 | | | 10,000 | | 1.1 | % |
Avalara, Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.15 | % | | 10/19/2022 |
| 10/19/2028 |
| 1,000 | |
| — |
| | — |
| 0.0 | % |
| SF | | 7.25 | % | 12.49 | % | | 10/19/2022 |
| 10/19/2028 |
| 1,000 | |
| — |
| | — |
| 0.0 | % |
Bench Walk Lead, LLC (<) | | SF | | 9.50 | % | 14.74 | % | | 6/9/2023 | | 6/14/2027 | | 29,600 | | | 29,306 | | | 29,304 | | 3.1 | % | ||||||||||||||||||||||
Bench Walk Lead, LLC (<) | | SF | | 9.50 | % | 14.74 | % | | 6/9/2023 | | 6/14/2027 | | 2,400 | | | 400 | | | 396 | | 0.0 | % | ||||||||||||||||||||||
| | | | | | 10.67 | % Cash/ | | | | | | | | | | | | | | | | | | | | | 11.26 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (~~) |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 14,190 | |
| 13,969 |
| | 14,169 |
| 1.6 | % |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 14,263 | |
| 14,052 |
| | 14,270 |
| 1.5 | % |
| | | | | | 10.67 | % Cash/ | | | | | | | | | | | | | | | | | | | | | 11.26 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (~~) |
| SF | | 8.00 | % | 2.00 | % PIK | | 8/26/2022 |
| 9/30/2027 |
| 1,980 | |
| 1,936 |
| | 1,978 |
| 0.2 | % |
| SF | | 8.00 | % | 2.00 | % PIK | | 8/26/2022 |
| 9/30/2027 |
| 1,991 | |
| 1,949 |
| | 1,992 |
| 0.2 | % |
|
| | | | | 10.67 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
| | | | | 11.26 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
Exiger LLC (~~) |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 4,244 | |
| 4,244 |
| | 4,237 |
| 0.5 | % |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 4,266 | |
| 4,266 |
| | 4,268 |
| 0.5 | % |
|
| | | | | 10.67 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
| | | | | 11.26 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
Exiger LLC (Delayed Draw) (*) (**) |
| SF | | 8.00 | % | 2.00 | % PIK | | 8/26/2022 |
| 9/30/2027 |
| 7,000 | |
| — |
| | — |
| 0.0 | % |
| SF | | 8.10 | % | 2.00 | % PIK | | 8/26/2022 |
| 9/30/2027 |
| 7,001 | |
| 2,073 |
| | 2,074 |
| 0.2 | % |
|
| | | | | 10.67 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
| | | | | 11.16 | % Cash/ | | |
| |
| | |
| |
| | |
| | |
Exiger LLC (Revolver) (*) |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 1,400 | |
| — |
| | — |
| 0.0 | % |
| SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 1,400 | |
| — |
| | — |
| 0.0 | % |
GC Champion Acquisition LLC (~~) |
| SF | | 6.75 | % | 11.15 | % | | 8/19/2022 |
| 8/18/2028 | | 12,935 | |
| 12,702 |
| | 12,870 |
| 1.5 | % |
| SF | | 6.75 | % | 11.78 | % | | 8/19/2022 |
| 8/18/2028 | | 13,000 | |
| 12,774 |
| | 13,000 |
| 1.4 | % |
GC Champion Acquisition LLC |
| SF | | 6.75 | % | 11.56 | % | | 8/19/2022 |
| 8/18/2028 |
| 3,611 | |
| 3,611 |
| | 3,593 |
| 0.4 | % | ||||||||||||||||||||||
GC Champion Acquisition LLC (~) |
| SF | | 6.75 | % | 11.78 | % | | 8/19/2022 |
| 8/18/2028 |
| 3,611 | |
| 3,611 |
| | 3,611 |
| 0.4 | % | ||||||||||||||||||||||
J2 BWA Funding III, LLC (Delayed Draw) (<) (*) (**) |
| n/a | | n/a | | 9.00 | % | | 4/29/2022 |
| 4/28/2028 | | 7,600 | |
| — |
| | — |
| 0.0 | % |
| n/a | | n/a | | 9.00 | % | | 4/29/2022 |
| 4/28/2028 | | 7,600 | |
| — |
| | — |
| 0.0 | % |
J2 BWA Funding LLC (Revolver) (<) (*) |
| n/a | | n/a | | 9.00 | % | | 12/14/2020 |
| 12/24/2026 |
| 2,850 | |
| 1,446 |
| | 1,439 |
| 0.2 | % |
| n/a | | n/a | | 10.00 | % | | 12/14/2020 |
| 12/24/2026 |
| 2,850 | |
| 1,553 |
| | 1,535 |
| 0.2 | % |
Oceana Australian Fixed Income Trust (~) (<) (b) (c) |
| n/a | | n/a | | 11.50 | % | | 2/25/2021 |
| 2/25/2026 |
| 7,184 | |
| 8,460 |
| | 7,184 |
| 0.8 | % | ||||||||||||||||||||||
Oceana Australian Fixed Income Trust (~) (<) (b) (c) |
| n/a | | n/a | | 10.75 | % | | 6/29/2021 |
| 6/29/2026 |
| 3,026 | |
| 3,400 |
| | 3,026 |
| 0.4 | % |
| SF | | 8.25 | % | 13.39 | % | | 6/8/2023 |
| 4/1/2026 |
| 31,524 | |
| 31,770 |
| | 31,524 |
| 3.3 | % |
SCP Intermediate Holdings, LLC (~) (<) | | SF | | 5.75 | % | 10.80 | % | | 12/28/2022 | | 12/28/2028 | | 2,993 | | | 2,921 | | | 2,968 | | 0.4 | % | | SF | | 5.85 | % | 10.95 | % | | 12/28/2022 | | 12/28/2028 | | 2,985 | | | 2,916 | | | 2,965 | | 0.3 | % |
TEAM Public Choices, LLC (~) |
| SF | | 5.00 | % | 9.95 | % | | 8/23/2022 |
| 12/17/2027 |
| 4,549 | |
| 4,340 |
| | 4,435 |
| 0.5 | % |
| SF | | 5.00 | % | 10.41 | % | | 8/23/2022 |
| 12/17/2027 |
| 4,538 | |
| 4,338 |
| | 4,424 |
| 0.5 | % |
W3 Monroe RE Debt LLC (<) |
| n/a | | n/a | | 10.00 | % PIK | | 2/5/2021 |
| 2/4/2028 | | 1,993 | |
| 1,993 |
| | 1,978 |
| 0.2 | % |
| n/a | | n/a | | 10.00 | % PIK | | 2/5/2021 |
| 2/4/2028 | | 2,042 | |
| 2,042 |
| | 2,031 |
| 0.2 | % |
W3 Monroe RE Debt LLC (Delayed Draw) (<) (*) (**) |
| n/a | | n/a | | 10.00 | % | | 3/31/2023 |
| 2/4/2028 |
| 40 | |
| 13 |
| | 13 |
| 0.0 | % |
| n/a | | n/a | | 10.00 | % PIK | | 3/31/2023 |
| 2/4/2028 |
| 40 | |
| 13 |
| | 13 |
| 0.0 | % |
YS WH4 LLC (Revolver) (<) (*) |
| SF | | 7.00 | % | 11.93 | % | | 7/20/2022 |
| 11/20/2025 |
| 7,700 | |
| 893 |
| | 893 |
| 0.1 | % |
| SF | | 7.10 | % | 12.25 | % | | 7/20/2022 |
| 11/20/2025 |
| 7,700 | |
| — |
| | — |
| 0.0 | % |
| | | | | | | | | |
| |
| 94,295 | |
| 69,694 |
| | 68,783 |
| 8.0 | % | | | | | | | | | |
| |
| 147,811 | |
| 120,837 |
| | 121,407 |
| 12.9 | % |
FIRE: Insurance | | | | | | | | | |
| |
| | |
| |
| | |
| | | | | | | | | | | |
| |
| | |
| |
| | |
| | |
Simplicity Financial Marketing Group Holdings Inc. (~) (~~~) |
| L | | 5.75 | % | 10.91 | % | | 9/23/2022 | | 12/2/2026 | | 9,966 | |
| 9,701 |
| | 9,617 |
| 1.1 | % |
| SF | | 6.15 | % | 11.39 | % | | 9/23/2022 | | 12/2/2026 | | 9,941 | |
| 9,690 |
| | 9,737 |
| 1.0 | % |
Simplicity Financial Marketing Group Holdings Inc. (Delayed Draw) (*) (**) | | L | | 5.75 | % | 10.91 | % | | 9/23/2022 | | 12/2/2026 | | 14,209 | | | 6,617 | | | 6,402 | | 0.8 | % | | SF | | 6.15 | % | 11.39 | % | | 9/23/2022 | | 12/2/2026 | | 14,188 | | | 9,000 | | | 8,816 | | 1.0 | % |
Simplicity Financial Marketing Group Holdings Inc. (Revolver) (*) | | L | | 5.75 | % | 10.91 | % | | 9/23/2022 | | 12/2/2026 | | 761 | | | — | | | — | | 0.0 | % | | L | | 6.15 | % | 11.39 | % | | 9/23/2022 | | 12/2/2026 | | 761 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 24,936 | | | 16,318 | | | 16,019 | | 1.9 | % | | | | | | | | | | | | | 24,890 | | | 18,690 | | | 18,553 | | 2.0 | % |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
300 N. Michigan Mezz, LLC (Delayed Draw) (~) (<) (*) (**) | | SF | | 14.57 | % | 19.35 | % PIK | | 7/15/2020 | | 7/15/2024 | | 1,000 | | | 979 | | | 979 | | 0.1 | % | | SF | | 14.57 | % | 19.63 | % PIK | | 7/15/2020 | | 7/15/2024 | | 1,000 | | | 997 | | | 997 | | 0.1 | % |
Avison Young (USA) Inc. (~~~) (<) (b) | | SF | | 5.75 | % | 10.67 | % | | 4/26/2019 | | 1/30/2026 | | 1,920 | | | 1,912 | | | 1,436 | | 0.2 | % | | SF | | 6.76 | % | 12.00 | % | | 4/26/2019 | | 1/30/2026 | | 1,915 | | | 1,907 | | | 1,178 | | 0.1 | % |
Avison Young (USA) Inc. (~~~) (<) (b) | | SF | | 7.00 | % | 11.92 | % | | 9/1/2022 | | 1/30/2026 | | 4,153 | | | 3,941 | | | 3,634 | | 0.4 | % | | SF | | 7.11 | % | 12.22 | % | | 9/1/2022 | | 1/30/2026 | | 4,143 | | | 3,945 | | | 2,589 | | 0.3 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (<) | | SF | | 8.25 | % | 12.95 | % | | 5/3/2022 | | 4/30/2025 | | 13,500 | | | 13,302 | | | 13,500 | | 1.6 | % | | SF | | 8.25 | % | 13.42 | % | | 5/3/2022 | | 4/30/2025 | | 13,500 | | | 13,323 | | | 13,568 | | 1.5 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (<) | | SF | | 8.25 | % | 12.95 | % | | 5/3/2022 | | 4/30/2025 | | 1,380 | | | 1,380 | | | 1,380 | | 0.2 | % | | SF | | 8.25 | % | 13.42 | % | | 5/3/2022 | | 4/30/2025 | | 1,380 | | | 1,380 | | | 1,387 | | 0.1 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Revolver) (<) (*) | | SF | | 8.25 | % | 12.95 | % | | 5/3/2022 | | 4/30/2025 | | 6,763 | | | 4,507 | | | 4,507 | | 0.5 | % | | SF | | 8.25 | % | 13.33 | % | | 5/3/2022 | | 4/30/2025 | | 6,763 | | | 2,197 | | | 2,197 | | 0.2 | % |
InsideRE, LLC (~~) (~~~) | | L | | 5.75 | % | 10.91 | % | | 12/22/2021 | | 12/22/2027 | | 7,409 | | | 7,289 | | | 7,483 | | 0.9 | % | | SF | | 5.50 | % | 10.74 | % | | 12/22/2021 | | 12/22/2027 | | 7,390 | | | 7,275 | | | 7,464 | | 0.8 | % |
InsideRE, LLC (~) | | L | | 5.75 | % | 10.91 | % | | 12/22/2021 | | 12/22/2027 | | 2,878 | | | 2,878 | | | 2,907 | | 0.3 | % | | SF | | 5.50 | % | 10.74 | % | | 12/22/2021 | | 12/22/2027 | | 2,871 | | | 2,871 | | | 2,900 | | 0.3 | % |
InsideRE, LLC (Revolver) (*) | | L | | 5.75 | % | 10.70 | % | | 12/22/2021 | | 12/22/2027 | | 965 | | | 64 | | | 64 | | 0.0 | % | | SF | | 5.50 | % | 10.74 | % | | 12/22/2021 | | 12/22/2027 | | 965 | | | 64 | | | 64 | | 0.0 | % |
Lessen Inc. | | SF | | 8.50 | % | 13.31 | % | | 1/5/2023 | | 1/5/2028 | | 8,000 | | | 7,691 | | | 7,680 | | 0.9 | % | | SF | | 8.50 | % | 13.74 | % | | 1/5/2023 | | 1/5/2028 | | 8,000 | | | 7,700 | | | 7,930 | | 0.9 | % |
NCBP Property, LLC (<) | | L | | 9.50 | % | 14.16 | % | | 12/18/2020 | | 6/16/2023 | | 2,500 | | | 2,498 | | | 2,511 | | 0.3 | % | ||||||||||||||||||||||
| | | | | | | | | | | | | 50,468 | | | 46,441 | | | 46,081 | | 5.4 | % | | | | | | | | | | | | | 47,927 | | | 41,659 | | | 40,274 | | 4.3 | % |
9
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate | | Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | |||
Healthcare & Pharmaceuticals |
| | |
|
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
| |
Appriss Health, LLC (~~) |
| L | | 7.25 | % | 11.96 | % | | 5/6/2021 | | 5/6/2027 | | 6,476 | | $ | 6,379 | | $ | 6,472 | | 0.8 | % |
Appriss Health, LLC (Revolver) (*) |
| L | | 7.25 | % | 11.93 | % | | 5/6/2021 | | 5/6/2027 | | 433 | | | 217 | | | 217 | | 0.0 | % |
Ascent Midco, LLC (~~) (~~~) |
| L | | 5.75 | % | 10.59 | % | | 2/5/2020 | | 2/5/2025 | | 2,205 | | | 2,187 | | | 2,190 | | 0.3 | % |
Ascent Midco, LLC (Revolver) (*) |
| L | | 5.75 | % | 10.59 | % | | 2/5/2020 | | 2/5/2025 | | 403 | | | — | | | — | | 0.0 | % |
Brickell Bay Acquisition Corp. (~~) (~~~) |
| L | | 6.50 | % | 11.25 | % | | 2/12/2021 | | 2/12/2026 | | 2,813 | | | 2,771 | | | 2,767 | | 0.3 | % |
|
| | | | | 10.60 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (~) | | SF | | 7.01 | % | 1.00 | % PIK | | 6/30/2021 | | 6/30/2027 | | 8,066 | | | 7,946 | | | 7,598 | | 0.9 | % |
|
| | | | | 11.33 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (Delayed Draw) (*) (**) | | SF | | 7.18 | % | 1.00 | % PIK | | 6/30/2021 | | 6/30/2027 | | 6,002 | | | 1,442 | | | 1,358 | | 0.2 | % |
|
| | | | | 10.60 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (Revolver) (*) | | SF | | 7.01 | % | 1.00 | % PIK | | 6/30/2021 | | 6/30/2027 | | 2,027 | | | 1,387 | | | 1,307 | | 0.2 | % |
Dorado Acquisition, Inc. (~) (~~) |
| SF | | 6.60 | % | 11.27 | % | | 6/30/2021 | | 6/30/2026 | | 13,790 | | | 13,598 | | | 13,500 | | 1.6 | % |
Dorado Acquisition, Inc. (~) (~~~) | | SF | | 6.76 | % | 11.34 | % | | 11/27/2022 | | 6/30/2026 | | 11,429 | | | 11,167 | | | 11,189 | | 1.3 | % |
Dorado Acquisition, Inc. (Delayed Draw) (*) (**) |
| SF | | 6.60 | % | 11.27 | % | | 6/30/2021 | | 6/30/2026 | | 606 | | | — | | | — | | 0.0 | % |
Dorado Acquisition, Inc. (Revolver) (*) |
| SF | | 6.60 | % | 11.27 | % | | 6/30/2021 | | 6/30/2026 | | 1,670 | | | — | | | — | | 0.0 | % |
Golden State Buyer, Inc. (~) (~~~) |
| SF | | 4.75 | % | 9.66 | % | | 8/25/2022 | | 6/19/2026 | | 9,921 | | | 9,575 | | | 9,648 | | 1.1 | % |
|
| | | | | 8.50 | % Cash/ | | | | | | | | | | | | | | | |
INH Buyer, Inc. (~) |
| SF | | 7.00 | % | 3.50 | % PIK | | 6/30/2021 | | 6/28/2028 | | 4,947 | | | 4,910 | | | 4,742 | | 0.5 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (~) |
| SF | | 7.00 | % | 11.68 | % | | 2/1/2023 | | 2/1/2029 | | 10,000 | | | 9,710 | | | 9,700 | | 1.1 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (Delayed Draw) (*) (**) |
| SF | | 7.00 | % | 12.04 | % | | 2/1/2023 | | 2/1/2029 | | 3,404 | | | — | | | — | | 0.0 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (Revolver) (*) |
| SF | | 7.00 | % | 12.04 | % | | 2/1/2023 | | 2/1/2029 | | 1,626 | | | 271 | | | 263 | | 0.0 | % |
MPH Acquisition Holdings LLC (~) (<) |
| L | | 4.25 | % | 9.20 | % | | 9/20/2022 | | 9/1/2028 | | 3,544 | | | 3,342 | | | 3,046 | | 0.4 | % |
NationsBenefits, LLC (~) |
| SF | | 7.00 | % | 11.77 | % | | 8/20/2021 | | 8/26/2027 | | 12,097 | | | 11,924 | | | 12,339 | | 1.4 | % |
NationsBenefits, LLC (~) |
| SF | | 7.00 | % | 11.77 | % | | 8/26/2022 | | 8/26/2027 | | 14,415 | | | 14,415 | | | 14,704 | | 1.7 | % |
NationsBenefits, LLC (Delayed Draw) (*) (**) |
| SF | | 7.00 | % | 11.77 | % | | 8/26/2022 | | 8/26/2027 | | 15,578 | | | 8,187 | | | 8,350 | | 1.0 | % |
NationsBenefits, LLC (Revolver) (*) |
| SF | | 7.00 | % | 11.77 | % | | 8/20/2021 | | 8/26/2027 | | 6,806 | | | 2,722 | | | 2,722 | | 0.3 | % |
NQ PE Project Colosseum Midco Inc. (~) (~~~) |
| SF | | 5.65 | % | 10.46 | % | | 10/4/2022 | | 10/4/2028 | | 14,564 | | | 14,294 | | | 14,660 | | 1.7 | % |
NQ PE Project Colosseum Midco Inc. (Delayed Draw) (*) (**) |
| SF | | 5.65 | % | 10.24 | % | | 10/4/2022 | | 10/4/2028 | | 3,244 | | | — | | | — | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (Revolver) (*) |
| SF | | 5.65 | % | 10.24 | % | | 10/4/2022 | | 10/4/2028 | | 1,825 | | | — | | | — | | 0.0 | % |
OIS Management Services, LLC (~) |
| SF | | 6.00 | % | 10.87 | % | | 12/14/2022 | | 11/16/2028 | | 10,000 | | | 9,762 | | | 10,013 | | 1.2 | % |
OIS Management Services, LLC (Delayed Draw) (*) (**) |
| SF | | 6.00 | % | 11.00 | % | | 12/14/2022 | | 11/16/2028 | | 3,846 | | | 450 | | | 451 | | 0.1 | % |
OIS Management Services, LLC (Revolver) (*) |
| SF | | 6.00 | % | 10.86 | % | | 12/14/2022 | | 11/16/2028 | | 1,154 | | | 77 | | | 77 | | 0.0 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.16 | % | | 9/19/2019 | | 12/15/2027 | | 4,550 | | | 4,522 | | | 4,550 | | 0.5 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.16 | % | | 12/15/2021 | | 12/15/2027 | | 4,368 | | | 4,315 | | | 4,368 | | 0.5 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.16 | % | | 9/19/2019 | | 12/15/2027 | | 910 | | | 910 | | | 910 | | 0.1 | % |
QF Holdings, Inc. |
| SF | | 6.35 | % | 11.16 | % | | 8/21/2020 | | 12/15/2027 | | 910 | | | 910 | | | 910 | | 0.1 | % |
QF Holdings, Inc. (Revolver) (*) |
| SF | | 6.35 | % | 11.06 | % | | 9/19/2019 | | 12/15/2027 | | 1,092 | | | 182 | | | 182 | | 0.0 | % |
SCP Eye Care Holdco, LLC (~) |
| SF | | 5.75 | % | 10.41 | % | | 10/7/2022 | | 10/5/2029 | | 9,232 | | | 8,969 | | | 8,862 | | 1.0 | % |
SCP Eye Care Holdco, LLC (Delayed Draw) (*) (**) |
| SF | | 5.75 | % | 10.41 | % | | 10/7/2022 | | 10/5/2029 | | 8,053 | | | — | | | — | | 0.0 | % |
SCP Eye Care Holdco, LLC (Revolver) (*) |
| SF | | 5.75 | % | 10.61 | % | | 10/7/2022 | | 10/5/2029 | | 1,442 | | | 553 | | | 513 | | 0.1 | % |
Seran BioScience, LLC (~~) (~~~) |
| SF | | 6.25 | % | 10.99 | % | | 12/31/2020 | | 7/8/2027 | | 1,960 | | | 1,937 | | | 1,953 | | 0.2 | % |
Seran BioScience, LLC (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 11.82 | % | | 7/8/2022 | | 7/8/2027 | | 2,218 | | | 1,596 | | | 1,590 | | 0.2 | % |
Seran BioScience, LLC (Revolver) (*) | | SF | | 6.25 | % | 10.99 | % | | 12/31/2020 | | 7/8/2027 | | 356 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (~) (~~) | | L | | 5.75 | % | 10.41 | % | | 12/30/2021 | | 12/30/2026 | | 3,762 | | | 3,704 | | | 3,541 | | 0.4 | % |
SIP Care Services, LLC (Delayed Draw) (*) (**) | | L | | 5.75 | % | 10.41 | % | | 12/30/2021 | | 12/30/2026 | | 3,040 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (Revolver) (*) | | L | | 5.75 | % | 10.41 | % | | 12/30/2021 | | 12/30/2026 | | 760 | | | 152 | | | 143 | | 0.0 | % |
Sound Inpatient Physicians, Inc. (~) (d) | | L | | 2.75 | % | 7.61 | % | | 10/12/2022 | | 6/28/2025 | | 2,821 | | | 2,321 | | | 2,223 | | 0.3 | % |
TigerConnect, Inc. (~~) | | SF | | 6.76 | % | 11.58 | % | | 2/16/2022 | | 2/16/2028 | | 10,000 | | | 9,831 | | | 9,888 | | 1.2 | % |
| | | | | | 8.20 | % Cash/ | | | | | | | | | | | | | | | |
TigerConnect, Inc. (Delayed Draw) (*) (**) | | SF | | 6.76 | % | 3.38 | % PIK | | 2/16/2022 | | 2/16/2028 | | 750 | | | 186 | | | 184 | | 0.0 | % |
TigerConnect, Inc. (Revolver) (*) | | SF | | 6.76 | % | 11.59 | % | | 2/16/2022 | | 2/16/2028 | | 1,429 | | | — | | | — | | 0.0 | % |
WebPT, Inc. (~~) | | SF | | 6.75 | % | 11.74 | % | | 8/28/2019 | | 1/18/2028 | | 5,000 | | | 4,967 | | | 4,973 | | 0.6 | % |
WebPT, Inc. (Revolver) (*) | | SF | | 6.75 | % | 11.66 | % | | 8/28/2019 | | 1/18/2028 | | 521 | | | 342 | | | 342 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (~~) | | SF | | 6.75 | % | 11.58 | % | | 6/3/2022 | | 6/2/2028 | | 21,000 | | | 20,616 | | | 20,769 | | 2.4 | % |
Whistler Parent Holdings III, Inc. (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.58 | % | | 6/3/2022 | | 6/2/2028 | | 6,563 | | | 262 | | | 260 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (Revolver) (*) | | SF | | 6.75 | % | 11.58 | % | | 6/3/2022 | | 6/2/2028 | | 2,625 | | | 394 | | | 389 | | 0.0 | % |
| | | | | | | | | | | | | 266,253 | | | 203,402 | | | 203,863 | | 23.7 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate | | Date (˄˄˄) | | Maturity | | Principal | | Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | |||
Healthcare & Pharmaceuticals |
| | |
|
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
| |
Animal Dermatology Group, Inc. (~) | | SF | | 6.25 | % | 11.50 | % | | 6/7/2023 | | 6/7/2029 | | 10,000 | | $ | 9,752 | | $ | 9,750 | | 1.0 | % |
Animal Dermatology Group, Inc. (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 11.50 | % | | 6/7/2023 | | 6/7/2029 | | 3,750 | | | — | | | — | | 0.0 | % |
Animal Dermatology Group, Inc. (Revolver) (*) | | SF | | 6.25 | % | 11.50 | % | | 6/7/2023 | | 6/7/2029 | | 2,500 | | | — | | | — | | 0.0 | % |
Appriss Health, LLC (~~) |
| SF | | 6.75 | % | 11.90 | % | | 5/6/2021 | | 5/6/2027 | | 6,468 | | | 6,376 | | | 6,461 | | 0.7 | % |
Appriss Health, LLC (Revolver) (*) |
| L | | 6.75 | % | 11.90 | % | | 5/6/2021 | | 5/6/2027 | | 433 | | | — | | | — | | 0.0 | % |
Brickell Bay Acquisition Corp. (~~) (~~~) |
| L | | 6.50 | % | 11.68 | % | | 2/12/2021 | | 2/12/2026 | | 2,805 | | | 2,766 | | | 2,802 | | 0.3 | % |
Caravel Autism Health, LLC (~) | | SF | | 6.01 | % | 10.90 | % | | 6/30/2021 | | 6/30/2027 | | 8,059 | | | 7,946 | | | 7,692 | | 0.8 | % |
Caravel Autism Health, LLC (Delayed Draw) (*) (**) | | SF | | 6.01 | % | 10.90 | % | | 6/30/2021 | | 6/30/2027 | | 5,998 | | | 2,239 | | | 2,137 | | 0.2 | % |
Caravel Autism Health, LLC (Revolver) (*) | | SF | | 6.01 | % | 10.90 | % | | 6/30/2021 | | 6/30/2027 | | 2,030 | | | 790 | | | 754 | | 0.1 | % |
Dorado Acquisition, Inc. (~) (~~) |
| SF | | 6.60 | % | 11.76 | % | | 6/30/2021 | | 6/30/2026 | | 13,755 | | | 13,576 | | | 13,494 | | 1.4 | % |
Dorado Acquisition, Inc. (~) (~~~) | | SF | | 6.65 | % | 11.54 | % | | 11/27/2022 | | 6/30/2026 | | 11,400 | | | 11,157 | | | 11,183 | | 1.2 | % |
Dorado Acquisition, Inc. (Revolver) (*) |
| SF | | 6.60 | % | 11.76 | % | | 6/30/2021 | | 6/30/2026 | | 1,670 | | | — | | | — | | 0.0 | % |
Golden State Buyer, Inc. (~) (~~~) |
| SF | | 4.75 | % | 9.95 | % | | 8/25/2022 | | 6/19/2026 | | 9,894 | | | 9,571 | | | 9,326 | | 1.0 | % |
HAH Group Holding Company LLC (~) | | SF | | 5.00 | % | 10.21 | % | | 5/19/2023 | | 10/29/2027 | | 2,890 | | | 2,817 | | | 2,818 | | 0.3 | % |
HAH Group Holding Company LLC (~) (d) | | SF | | 5.00 | % | 10.21 | % | | 5/19/2023 | | 10/29/2027 | | 764 | | | 743 | | | 747 | | 0.1 | % |
HAH Group Holding Company LLC (~) | | SF | | 5.00 | % | 10.21 | % | | 5/19/2023 | | 10/29/2027 | | 366 | | | 366 | | | 357 | | 0.0 | % |
|
| | | | | 8.84 | % Cash/ | | | | | | | | | | | | | | | |
INH Buyer, Inc. (~) |
| SF | | 7.00 | % | 3.50 | % PIK | | 6/30/2021 | | 6/28/2028 | | 4,979 | | | 4,942 | | | 4,830 | | 0.5 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (~) |
| SF | | 6.75 | % | 11.79 | % | | 2/1/2023 | | 2/1/2029 | | 10,000 | | | 9,720 | | | 10,000 | | 1.1 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (Delayed Draw) (*) (**) |
| SF | | 6.75 | % | 11.80 | % | | 2/1/2023 | | 2/1/2029 | | 3,404 | | | — | | | — | | 0.0 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (Revolver) (*) |
| SF | | 6.75 | % | 11.80 | % | | 2/1/2023 | | 2/1/2029 | | 1,626 | | | 488 | | | 488 | | 0.1 | % |
LSCS Holdings, Inc. (~) | | L | | 4.50 | % | 9.69 | % | | 5/24/2023 | | 12/15/2028 | | 2,992 | | | 2,903 | | | 2,929 | | 0.3 | % |
MPH Acquisition Holdings LLC (~) (<) |
| L | | 4.25 | % | 9.73 | % | | 9/20/2022 | | 9/1/2028 | | 3,535 | | | 3,341 | | | 3,169 | | 0.3 | % |
NationsBenefits, LLC (~) |
| SF | | 7.00 | % | 12.26 | % | | 8/20/2021 | | 8/26/2027 | | 12,066 | | | 11,904 | | | 12,187 | | 1.3 | % |
NationsBenefits, LLC (~) |
| SF | | 7.00 | % | 12.26 | % | | 8/26/2022 | | 8/26/2027 | | 14,379 | | | 14,379 | | | 14,523 | | 1.5 | % |
NationsBenefits, LLC |
| SF | | 7.00 | % | 12.18 | % | | 8/26/2022 | | 8/26/2027 | | 15,570 | | | 15,570 | | | 15,726 | | 1.7 | % |
NationsBenefits, LLC (Revolver) (*) |
| SF | | 7.00 | % | 12.26 | % | | 8/20/2021 | | 8/26/2027 | | 6,805 | | | 2,722 | | | 2,722 | | 0.3 | % |
NQ PE Project Colosseum Midco Inc. (~) (~~~) |
| SF | | 5.65 | % | 10.89 | % | | 10/4/2022 | | 10/4/2028 | | 14,527 | | | 14,268 | | | 14,662 | | 1.6 | % |
NQ PE Project Colosseum Midco Inc. (Delayed Draw) (*) (**) |
| SF | | 5.65 | % | 10.89 | % | | 10/4/2022 | | 10/4/2028 | | 3,244 | | | — | | | — | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (Revolver) (*) |
| SF | | 5.65 | % | 10.89 | % | | 10/4/2022 | | 10/4/2028 | | 1,825 | | | — | | | — | | 0.0 | % |
OIS Management Services, LLC (~) |
| SF | | 5.85 | % | 11.09 | % | | 12/14/2022 | | 11/16/2028 | | 9,975 | | | 9,748 | | | 10,047 | | 1.1 | % |
OIS Management Services, LLC (Delayed Draw) (*) (**) |
| SF | | 5.85 | % | 11.09 | % | | 12/14/2022 | | 11/16/2028 | | 3,843 | | | 1,396 | | | 1,407 | | 0.1 | % |
OIS Management Services, LLC (Revolver) (*) |
| SF | | 5.85 | % | 11.09 | % | | 12/14/2022 | | 11/16/2028 | | 1,154 | | | — | | | — | | 0.0 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.45 | % | | 9/19/2019 | | 12/15/2027 | | 4,550 | | | 4,526 | | | 4,564 | | 0.5 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.45 | % | | 12/15/2021 | | 12/15/2027 | | 4,368 | | | 4,317 | | | 4,381 | | 0.5 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.45 | % | | 9/19/2019 | | 12/15/2027 | | 910 | | | 910 | | | 913 | | 0.1 | % |
QF Holdings, Inc. (~~) |
| SF | | 6.35 | % | 11.45 | % | | 8/21/2020 | | 12/15/2027 | | 910 | | | 910 | | | 913 | | 0.1 | % |
QF Holdings, Inc. (Revolver) (*) |
| SF | | 6.25 | % | 11.44 | % | | 9/19/2019 | | 12/15/2027 | | 1,092 | | | 291 | | | 291 | | 0.0 | % |
SCP Eye Care Holdco, LLC (~) |
| SF | | 5.75 | % | 11.00 | % | | 10/7/2022 | | 10/5/2029 | | 9,208 | | | 8,955 | | | 8,840 | | 0.9 | % |
SCP Eye Care Holdco, LLC (Delayed Draw) (*) (**) |
| SF | | 5.75 | % | 10.95 | % | | 10/7/2022 | | 10/5/2029 | | 8,050 | | | 1,317 | | | 1,265 | | 0.1 | % |
SCP Eye Care Holdco, LLC (Revolver) (*) |
| SF | | 5.75 | % | 10.93 | % | | 10/7/2022 | | 10/5/2029 | | 1,442 | | | 745 | | | 692 | | 0.1 | % |
Seran BioScience, LLC (~~) (~~~) |
| SF | | 6.75 | % | 11.79 | % | | 12/31/2020 | | 7/8/2027 | | 1,955 | | | 1,934 | | | 1,940 | | 0.2 | % |
Seran BioScience, LLC (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.98 | % | | 7/8/2022 | | 7/8/2027 | | 2,214 | | | 1,592 | | | 1,580 | | 0.2 | % |
Seran BioScience, LLC (Revolver) (*) | | SF | | 6.75 | % | 11.79 | % | | 12/31/2020 | | 7/8/2027 | | 356 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (~) (~~) | | L | | 5.75 | % | 10.92 | % | | 12/30/2021 | | 12/30/2026 | | 3,753 | | | 3,697 | | | 3,527 | | 0.4 | % |
SIP Care Services, LLC (Delayed Draw) (*) (**) | | L | | 5.75 | % | 10.92 | % | | 12/30/2021 | | 12/30/2026 | | 3,040 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (Revolver) (*) | | L | | 5.75 | % | 10.92 | % | | 12/30/2021 | | 12/30/2026 | | 760 | | | 152 | | | 143 | | 0.0 | % |
Sound Inpatient Physicians, Inc. (~) | | L | | 3.00 | % | 8.27 | % | | 10/12/2022 | | 6/27/2025 | | 2,807 | | | 2,316 | | | 1,672 | | 0.2 | % |
TigerConnect, Inc. (~~) | | SF | | 6.75 | % | 11.79 | % | | 2/16/2022 | | 2/16/2028 | | 10,000 | | | 9,840 | | | 9,788 | | 1.0 | % |
TigerConnect, Inc. (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.79 | % | | 2/16/2022 | | 2/16/2028 | | 750 | | | 275 | | | 270 | | 0.0 | % |
TigerConnect, Inc. (Revolver) (*) | | SF | | 6.75 | % | 11.79 | % | | 2/16/2022 | | 2/16/2028 | | 1,429 | | | — | | | — | | 0.0 | % |
WebPT, Inc. (~~) | | SF | | 6.85 | % | 12.11 | % | | 8/28/2019 | | 1/18/2028 | | 5,000 | | | 4,974 | | | 4,998 | | 0.5 | % |
WebPT, Inc. (Revolver) (*) | | P | | 5.75 | % | 14.00 | % | | 8/28/2019 | | 1/18/2028 | | 521 | | | 149 | | | 149 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (~~) | | SF | | 6.75 | % | 11.95 | % | | 6/3/2022 | | 6/2/2028 | | 21,000 | | | 20,628 | | | 20,706 | | 2.2 | % |
Whistler Parent Holdings III, Inc. (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.95 | % | | 6/3/2022 | | 6/2/2028 | | 6,563 | | | 262 | | | 259 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (Revolver) | | SF | | 6.75 | % | 11.95 | % | | 6/3/2022 | | 6/2/2028 | | 2,625 | | | 2,625 | | | 2,588 | | 0.3 | % |
| | | | | | | | | | | | | 286,009 | | | 229,895 | | | 229,690 | | 24.3 | % |
10
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
High Tech Industries |
| | |
|
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
| |
Acquia Inc. (~~) | | L | | 7.00 | % | 11.79 | % | | 11/1/2019 | | 10/31/2025 | | 15,429 | | $ | 15,246 | | $ | 15,429 | | 1.8 | % |
Acquia Inc. (Revolver) |
| L | | 7.00 | % | 12.05 | % | | 11/1/2019 | | 10/31/2025 |
| 588 | | | 588 |
| | 588 |
| 0.1 | % |
| | | | | | 14.16 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (~) | | SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 10,028 | |
| 9,745 |
| | 9,965 |
| 1.2 | % |
| | | | | | 14.16 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Delayed Draw) (*) (**) |
| SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 3,333 | |
| — |
| | — |
| 0.0 | % |
| | | | | | 14.16 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Revolver) (*) |
| SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 667 | |
| — |
| | — |
| 0.0 | % |
| | | | | | 8.66 | % Cash/ | | | | | | | | | | | | | | | |
Arcstor Midco, LLC (~) (~~) | | SF | | 7.60 | % | 3.75 | % PIK | | 3/16/2021 | | 3/16/2027 | | 12,191 | | | 12,025 | | | 10,750 | | 1.3 | % |
BTRS Holdings Inc. (~) |
| SF | | 8.00 | % | 12.74 | % | | 12/16/2022 | | 12/15/2028 |
| 10,000 | |
| 9,714 |
| | 10,000 |
| 1.2 | % |
BTRS Holdings Inc. (Delayed Draw) (*) (**) |
| SF | | 8.00 | % | 12.74 | % | | 12/16/2022 | | 12/15/2028 | | 845 | |
| 100 |
| | 100 |
| 0.0 | % |
BTRS Holdings Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.06 | % | | 12/16/2022 | | 12/15/2028 |
| 1,067 | |
| 147 |
| | 147 |
| 0.0 | % |
Drawbridge Partners, LLC (~~) |
| SF | | 7.00 | % | 11.90 | % | | 9/1/2022 | | 9/1/2028 |
| 15,000 | |
| 14,728 |
| | 14,897 |
| 1.7 | % |
Drawbridge Partners, LLC (Delayed Draw) (*) (**) |
| SF | | 7.00 | % | 11.90 | % PIK | | 9/1/2022 | | 9/1/2028 |
| 1,649 | |
| 972 |
| | 965 |
| 0.1 | % |
Drawbridge Partners, LLC (Revolver) (*) |
| SF | | 7.00 | % | 11.90 | % | | 9/1/2022 | | 9/1/2028 |
| 2,609 | |
| — |
| | — |
| 0.0 | % |
Fueled Digital Media, LLC (~~~) |
| SF | | 6.11 | % | 10.78 | % | | 11/1/2022 | | 11/1/2027 |
| 5,753 | |
| 5,620 |
| | 5,782 |
| 0.7 | % |
Fueled Digital Media, LLC (Delayed Draw) (*) (**) |
| SF | | 6.11 | % | 10.78 | % | | 11/1/2022 | | 11/1/2027 |
| 504 | |
| — |
| | — |
| 0.0 | % |
Fueled Digital Media, LLC (Revolver) (*) |
| SF | | 6.11 | % | 10.78 | % | | 11/1/2022 | | 11/1/2027 |
| 807 | |
| — |
| | — |
| 0.0 | % |
Matrix Parent, Inc. (~) (~~~) |
| SF | | 5.00 | % | 10.06 | % | | 11/2/2022 | | 3/1/2029 |
| 2,487 | |
| 2,273 |
| | 1,982 |
| 0.2 | % |
Medallia, Inc. (~~) |
| L | | 6.50 | % | 11.34 | % PIK | | 8/15/2022 | | 10/27/2028 |
| 11,428 | |
| 11,227 |
| | 11,360 |
| 1.3 | % |
Mindbody, Inc. (~~) |
| L | | 7.00 | % | 12.10 | % | | 2/15/2019 | | 2/14/2025 |
| 1,867 | |
| 1,854 |
| | 1,864 |
| 0.2 | % |
Mindbody, Inc. (~~) |
| L | | 7.00 | % | 12.10 | % | | 9/22/2021 | | 2/14/2025 |
| 7,387 | |
| 7,387 |
| | 7,372 |
| 0.9 | % |
Mindbody, Inc. (Revolver) (*) |
| L | | 7.00 | % | 12.10 | % | | 2/15/2019 | | 2/14/2025 |
| 190 | |
| — |
| | — |
| 0.0 | % |
Oranje Holdco, Inc. (~) |
| SF | | 7.75 | % | 12.43 | % | | 2/1/2023 | | 2/1/2029 |
| 14,000 | |
| 13,664 |
| | 13,650 |
| 1.6 | % |
Oranje Holdco, Inc. (Revolver) (*) |
| SF | | 7.75 | % | 12.43 | % | | 2/1/2023 | | 2/1/2029 |
| 1,750 | |
| — |
| | — |
| 0.0 | % |
Optomi, LLC (~) |
| SF | | 8.25 | % | 12.94 | % | | 12/13/2022 | | 12/16/2027 |
| 5,668 | |
| 5,509 |
| | 5,527 |
| 0.6 | % |
Optomi, LLC (~) (~~) |
| SF | | 5.50 | % | 10.23 | % | | 12/16/2021 | | 12/16/2027 | | 13,365 | |
| 13,151 |
| | 13,031 |
| 1.5 | % |
Optomi, LLC (Revolver) (*) |
| SF | | 5.50 | % | 10.23 | % | | 12/16/2021 | | 12/16/2027 |
| 3,189 | |
| 1,063 |
| | 1,036 |
| 0.1 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 11.83 | % | | 4/20/2022 | | 4/22/2027 | | 3,702 | | | 3,639 | | | 3,689 | | 0.4 | % |
Securly, Inc. (~~) |
| L | | 7.00 | % | 12.16 | % | | 4/22/2021 | | 4/22/2027 | | 8,400 | | | 8,277 | | | 8,369 | | 1.0 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 11.95 | % | | 4/22/2021 | | 4/22/2027 | | 1,938 | | | 1,938 | | | 1,931 | | 0.2 | % |
Securly, Inc. (Delayed Draw) (*) (**) |
| L | | 7.00 | % | 11.95 | % | | 4/20/2022 | | 4/22/2027 | | 2,585 | | | 1,809 | | | 1,802 | | 0.2 | % |
Securly, Inc. (Revolver) (*) | | L | | 7.00 | % | 12.16 | % | | 4/22/2021 | | 4/22/2027 | | 969 | | | — | | | — | | 0.0 | % |
Transact Holdings Inc. (~) | | L | | 4.25 | % | 9.09 | % | | 4/18/2019 | | 4/30/2026 | | 716 | | | 710 | | | 712 | | 0.1 | % |
Unanet, Inc. (~) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 22,000 | | | 21,586 | | | 22,000 | | 2.6 | % |
Unanet, Inc. (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 6,947 | | | — | | | — | | 0.0 | % |
Unanet, Inc. (Revolver) (*) |
| SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 2,316 | | | — | | | — | | 0.0 | % |
Watchguard Technologies, Inc. (~) |
| SF | | 5.25 | % | 10.11 | % | | 8/17/2022 | | 6/29/2029 | | 21,048 | | | 19,745 | | | 20,180 | | 2.3 | % |
| | | | | | | | | | | | | 212,422 | | | 182,717 | | | 183,128 | | 21.3 | % |
Hotels, Gaming & Leisure | | | | | | | | | | | | | | | | | | | | | | |
Equine Network, LLC (~~) (~~~) |
| SF | | 6.00 | % | 10.78 | % | | 12/31/2020 | | 12/31/2025 | | 1,470 | | | 1,450 | | | 1,452 | | 0.2 | % |
Equine Network, LLC (~~) (~~~) | | SF | | 6.00 | % | 10.81 | % | | 3/31/2023 | | 12/31/2025 | | 183 | | | 177 | | | 181 | | 0.0 | % |
Equine Network, LLC (~~) (~~~) |
| SF | | 6.00 | % | 10.78 | % | | 1/29/2021 | | 12/31/2025 | | 667 | | | 659 | | | 658 | | 0.1 | % |
Equine Network, LLC (Revolver) (*) |
| SF | | 6.00 | % | 10.78 | % | | 12/31/2020 | | 12/31/2025 | | 146 | | | 110 | | | 108 | | 0.0 | % |
|
| | | | | | | | | | | | 2,466 | | | 2,396 | | | 2,399 | | 0.3 | % |
Media: Advertising, Printing & Publishing |
| | | | | | | | | | | | | | | | | | | | | |
95 Percent Buyer, LLC (~) (~~) (~~~) |
| SF | | 5.60 | % | 10.27 | % | | 11/24/2021 | | 11/24/2026 | | 17,820 | | | 17,552 | | | 17,669 | | 2.1 | % |
95 Percent Buyer, LLC (Revolver) (*) |
| SF | | 5.60 | % | 10.27 | % | | 11/24/2021 | | 11/24/2026 | | 808 | | | — | | | — | | 0.0 | % |
Calienger Holdings, L.L.C. (~~~) |
| SF | | 6.10 | % | 10.77 | % | | 10/21/2022 | | 10/20/2028 | | 5,000 | | | 4,883 | | | 5,000 | | 0.6 | % |
Calienger Holdings, L.L.C. (Delayed Draw) (*) (**) |
| SF | | 6.10 | % | 10.77 | % | | 10/21/2022 | | 10/20/2028 | | 667 | | | — | | | — | | 0.0 | % |
Calienger Holdings, L.L.C. (Revolver) (*) |
| SF | | 6.00 | % | 10.67 | % | | 10/21/2022 | | 10/20/2028 | | 909 | | | — | | | — | | 0.0 | % |
CE Intermediate, LLC (~) |
| SF | | 5.50 | % | 10.50 | % | | 10/11/2022 | | 7/1/2027 | | 29,625 | | | 28,950 | | | 29,625 | | 3.4 | % |
Madison Logic Holdings, Inc. (~) |
| SF | | 7.00 | % | 11.90 | % | | 12/30/2022 | | 12/29/2028 | | 14,000 | | | 13,598 | | | 14,000 | | 1.6 | % |
Madison Logic Holdings, Inc. (Revolver) (*) |
| SF | | 7.00 | % | 11.90 | % | | 12/30/2022 | | 12/30/2027 | | 1,207 | | | — | | | — | | 0.0 | % |
North Haven USHC Acquisition, Inc. (~) (~~) | | SF | | 6.50 | % | 11.46 | % | | 10/30/2020 | | 10/30/2025 | | 2,444 | | | 2,416 | | | 2,427 | | 0.3 | % |
North Haven USHC Acquisition, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.46 | % | | 3/12/2021 | | 10/30/2025 | | 708 | | | 708 | | | 703 | | 0.1 | % |
North Haven USHC Acquisition, Inc. (~) | | SF | | 6.50 | % | 11.46 | % | | 9/3/2021 | | 10/30/2025 | | 1,430 | | | 1,430 | | | 1,420 | | 0.2 | % |
North Haven USHC Acquisition, Inc. (~) |
| SF | | 6.25 | % | 11.01 | % | | 7/29/2022 | | 10/30/2025 | | 2,585 | | | 2,553 | | | 2,554 | | 0.3 | % |
North Haven USHC Acquisition, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.46 | % | | 7/29/2022 | | 10/30/2025 | | 1,056 | | | — | | | — | | 0.0 | % |
North Haven USHC Acquisition, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 11.27 | % | | 10/30/2020 | | 10/30/2025 | | 416 | | | 187 | | | 187 | | 0.0 | % |
|
| | | | | 11.41 | % Cash/ | | | | | | | | | | | | | | | |
NTM Acquisition Corp. (~~~) | | L | | 7.25 | % | 1.00 | % PIK | | 4/18/2019 | | 6/7/2024 | | 4,341 | | | 4,341 | | | 4,168 | | 0.5 | % |
Really Great Reading Company, Inc. (~) |
| SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 12,000 | | | 11,713 | | | 12,060 | | 1.4 | % |
Really Great Reading Company, Inc. (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 2,526 | | | — | | | — | | 0.0 | % |
Really Great Reading Company, Inc. (Revolver) (*) |
| SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 3,200 | | | — | | | — | | 0.0 | % |
Relevate Health Group, LLC (~) (~~) | | SF | | 6.00 | % | 10.77 | % | | 11/20/2020 | | 11/20/2025 | | 1,960 | | | 1,938 | | | 1,935 | | 0.2 | % |
Relevate Health Group, LLC (~) (~~~) |
| SF | | 6.00 | % | 10.77 | % | | 3/28/2022 | | 11/20/2025 | | 5,224 | | | 5,145 | | | 5,156 | | 0.6 | % |
Relevate Health Group, LLC (~~~) |
| SF | | 6.00 | % | 10.77 | % | | 11/20/2020 | | 11/20/2025 | | 877 | | | 877 | | | 865 | | 0.1 | % |
Relevate Health Group, LLC (Revolver) (*) | | SF | | 6.00 | % | 10.77 | % | | 11/20/2020 | | 11/20/2025 | | 789 | | | — | | | — | | 0.0 | % |
Renaissance Learning, Inc. (~) (d) | | SF | | 4.75 | % | 9.55 | % | | 3/16/2023 | | 4/5/2030 | | 7,500 | | | 7,275 | | | 7,275 | | 0.8 | % |
Spherix Global Inc. (~) (~~) | | SF | | 6.36 | % | 11.03 | % | | 12/22/2021 | | 12/22/2026 | | 4,455 | | | 4,396 | | | 4,321 | | 0.5 | % |
Spherix Global Inc. (Revolver) (*) | | SF | | 6.36 | % | 11.03 | % | | 12/22/2021 | | 12/22/2026 | | 500 | | | — | | | — | | 0.0 | % |
XanEdu Publishing, Inc. (~~) (~~~) | | SF | | 6.50 | % | 11.42 | % | | 1/28/2020 | | 1/28/2025 | | 6,016 | | | 5,957 | | | 6,037 | | 0.7 | % |
XanEdu Publishing, Inc. (~~~) | | SF | | 6.50 | % | 11.42 | % | | 8/31/2022 | | 1/28/2025 | | 2,391 | | | 2,345 | | | 2,399 | | 0.3 | % |
XanEdu Publishing, Inc. (Revolver) (*) | | SF | | 6.50 | % | 11.42 | % | | 1/28/2020 | | 1/28/2025 | | 977 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 131,431 | | | 116,264 | | | 117,801 | | 13.7 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
High Tech Industries |
| | |
|
|
|
| |
|
|
|
|
| |
|
|
| |
|
|
| |
Acquia Inc. (~~) | | SF | | 7.00 | % | 12.34 | % | | 11/1/2019 | | 10/31/2025 | | 15,429 | | $ | 15,262 | | $ | 15,429 | | 1.6 | % |
Acquia Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.59 | % | | 11/1/2019 | | 10/31/2025 |
| 588 | | | 459 |
| | 459 |
| 0.0 | % |
| | | | | | 14.50 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (~) | | SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 10,053 | |
| 9,779 |
| | 10,015 |
| 1.1 | % |
| | | | | | 14.50 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Delayed Draw) (*) (**) |
| SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 3,333 | |
| — |
| | — |
| 0.0 | % |
| | | | | | 14.50 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Revolver) (*) |
| SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 |
| 667 | |
| — |
| | — |
| 0.0 | % |
| | | | | | 8.95 | % Cash/ | | | | | | | | | | | | | | | |
Arcstor Midco, LLC (~) (~~) (***) | | SF | | 7.60 | % | 3.75 | % PIK | | 3/16/2021 | | 3/16/2027 | | 12,190 | | | 11,950 | | | 9,156 | | 1.0 | % |
BTRS Holdings Inc. (~) |
| SF | | 8.00 | % | 13.22 | % | | 12/16/2022 | | 12/15/2028 |
| 10,000 | |
| 9,720 |
| | 10,000 |
| 1.1 | % |
BTRS Holdings Inc. (Delayed Draw) (*) (**) |
| SF | | 8.00 | % | 13.22 | % | | 12/16/2022 | | 12/15/2028 | | 845 | |
| 203 |
| | 203 |
| 0.0 | % |
BTRS Holdings Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.36 | % | | 12/16/2022 | | 12/15/2028 |
| 1,067 | |
| 373 |
| | 373 |
| 0.0 | % |
Drawbridge Partners, LLC (~~) |
| SF | | 7.00 | % | 12.24 | % | | 9/1/2022 | | 9/1/2028 |
| 15,000 | |
| 14,735 |
| | 14,865 |
| 1.6 | % |
Drawbridge Partners, LLC (Delayed Draw) (*) (**) |
| SF | | 7.00 | % | 12.24 | % | | 9/1/2022 | | 9/1/2028 |
| 1,649 | |
| 1,453 |
| | 1,439 |
| 0.2 | % |
Drawbridge Partners, LLC (Revolver) (*) |
| SF | | 7.00 | % | 12.24 | % | | 9/1/2022 | | 9/1/2028 |
| 2,609 | |
| — |
| | — |
| 0.0 | % |
Fueled Digital Media, LLC (~~~) |
| SF | | 6.11 | % | 11.27 | % | | 11/1/2022 | | 11/1/2027 |
| 5,738 | |
| 5,612 |
| | 5,767 |
| 0.6 | % |
Fueled Digital Media, LLC (Delayed Draw) (*) (**) |
| SF | | 6.11 | % | 11.27 | % | | 11/1/2022 | | 11/1/2027 |
| 504 | |
| — |
| | — |
| 0.0 | % |
Fueled Digital Media, LLC (Revolver) (*) |
| SF | | 6.11 | % | 11.27 | % | | 11/1/2022 | | 11/1/2027 |
| 807 | |
| — |
| | — |
| 0.0 | % |
Matrix Parent, Inc. (~) (~~~) |
| SF | | 5.00 | % | 10.39 | % | | 11/2/2022 | | 3/1/2029 |
| 2,481 | |
| 2,274 |
| | 1,681 |
| 0.2 | % |
Medallia, Inc. (~~) |
| L | | 6.50 | % | 11.69 | % PIK | | 8/15/2022 | | 10/27/2028 |
| 11,595 | |
| 11,401 |
| | 11,618 |
| 1.2 | % |
Mindbody, Inc. (~~) |
| L | | 7.00 | % | 12.19 | % | | 2/15/2019 | | 2/14/2025 |
| 1,867 | |
| 1,856 |
| | 1,867 |
| 0.2 | % |
Mindbody, Inc. (~~) |
| L | | 7.00 | % | 12.19 | % | | 9/22/2021 | | 2/14/2025 |
| 7,387 | |
| 7,387 |
| | 7,383 |
| 0.8 | % |
Mindbody, Inc. (Revolver) (*) |
| L | | 7.00 | % | 12.19 | % | | 2/15/2019 | | 2/14/2025 |
| 190 | |
| — |
| | — |
| 0.0 | % |
Oranje Holdco, Inc. (~) |
| SF | | 7.75 | % | 12.79 | % | | 2/1/2023 | | 2/1/2029 |
| 14,000 | |
| 13,675 |
| | 14,000 |
| 1.5 | % |
Oranje Holdco, Inc. (Revolver) (*) |
| SF | | 7.75 | % | 12.79 | % | | 2/1/2023 | | 2/1/2029 |
| 1,750 | |
| — |
| | — |
| 0.0 | % |
Optomi, LLC (~) |
| SF | | 8.25 | % | 13.14 | % | | 12/13/2022 | | 12/16/2027 |
| 5,654 | |
| 5,504 |
| | 5,654 |
| 0.6 | % |
Optomi, LLC (~) (~~) |
| SF | | 5.50 | % | 10.39 | % | | 12/16/2021 | | 12/16/2027 | | 13,331 | |
| 13,126 |
| | 12,948 |
| 1.4 | % |
Optomi, LLC (Revolver) (*) |
| SF | | 5.50 | % | 10.39 | % | | 12/16/2021 | | 12/16/2027 |
| 3,189 | |
| 638 |
| | 619 |
| 0.1 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 12.27 | % | | 4/20/2022 | | 4/22/2027 | | 3,702 | | | 3,643 | | | 3,675 | | 0.4 | % |
Securly, Inc. (~~) |
| SF | | 7.10 | % | 12.35 | % | | 4/22/2021 | | 4/22/2027 | | 8,400 | | | 8,284 | | | 8,337 | | 0.9 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 12.48 | % | | 4/22/2021 | | 4/22/2027 | | 1,938 | | | 1,938 | | | 1,924 | | 0.2 | % |
Securly, Inc. (Delayed Draw) (*) (**) |
| L | | 7.00 | % | 12.48 | % | | 4/20/2022 | | 4/22/2027 | | 2,585 | | | 1,984 | | | 1,969 | | 0.2 | % |
Securly, Inc. (Revolver) | | L | | 7.00 | % | 12.48 | % | | 4/22/2021 | | 4/22/2027 | | 969 | | | 969 | | | 962 | | 0.1 | % |
Sparq Holdings, Inc. (~~) | | SF | | 6.25 | % | 11.52 | % | | 6/16/2023 | | 6/15/2029 | | 2,000 | | | 1,940 | | | 1,940 | | 0.2 | % |
Sparq Holdings, Inc. (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 11.52 | % | | 6/16/2023 | | 6/15/2029 | | 444 | | | — | | | — | | 0.0 | % |
Sparq Holdings, Inc. (Revolver) (*) | | SF | | 6.25 | % | 11.52 | % | | 6/16/2023 | | 6/15/2029 | | 409 | | | — | | | — | | 0.0 | % |
Transact Holdings Inc. (~) | | L | | 4.25 | % | 9.44 | % | | 4/18/2019 | | 4/30/2026 | | 714 | | | 708 | | | 714 | | 0.1 | % |
Unanet, Inc. (~) (~~) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 22,000 | | | 21,594 | | | 22,000 | | 2.3 | % |
Unanet, Inc. (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 6,947 | | | — | | | — | | 0.0 | % |
Unanet, Inc. (Revolver) (*) |
| SF | | 6.25 | % | 10.97 | % | | 12/9/2022 | | 12/8/2028 | | 2,316 | | | — | | | — | | 0.0 | % |
Watchguard Technologies, Inc. (~) |
| SF | | 5.25 | % | 10.49 | % | | 8/17/2022 | | 6/29/2029 | | 20,995 | | | 19,729 | | | 20,099 | | 2.1 | % |
| | | | | | | | | | | | | 215,342 | | | 186,196 | | | 185,096 | | 19.7 | % |
Media: Advertising, Printing & Publishing |
| | | | | | | | | | | | | | | | | | | | | |
95 Percent Buyer, LLC (~) (~~) (~~~) |
| SF | | 5.60 | % | 10.76 | % | | 11/24/2021 | | 11/24/2026 | | 17,775 | | | 17,523 | | | 17,571 | | 1.9 | % |
95 Percent Buyer, LLC (Revolver) (*) |
| SF | | 5.60 | % | 10.76 | % | | 11/24/2021 | | 11/24/2026 | | 808 | | | — | | | — | | 0.0 | % |
Calienger Holdings, L.L.C. (~~~) |
| SF | | 5.85 | % | 11.01 | % | | 10/21/2022 | | 10/20/2028 | | 4,988 | | | 4,875 | | | 4,988 | | 0.5 | % |
Calienger Holdings, L.L.C. (Delayed Draw) (*) (**) |
| SF | | 5.85 | % | 11.01 | % | | 10/21/2022 | | 10/20/2028 | | 667 | | | — | | | — | | 0.0 | % |
Calienger Holdings, L.L.C. (Revolver) (*) |
| SF | | 5.75 | % | 10.91 | % | | 10/21/2022 | | 10/20/2028 | | 909 | | | — | | | — | | 0.0 | % |
CE Intermediate, LLC (~) (~~) |
| SF | | 5.60 | % | 10.84 | % | | 10/11/2022 | | 7/1/2027 | | 29,438 | | | 28,800 | | | 29,438 | | 3.1 | % |
Destination Media, Inc. (~~~~) | | SF | | 7.25 | % | 12.54 | % | | 6/21/2023 | | 6/21/2028 | | 6,500 | | | 6,273 | | | 6,273 | | 0.7 | % |
Destination Media, Inc. (Delayed Draw) (*) (**) | | SF | | 7.25 | % | 12.54 | % | | 6/21/2023 | | 6/21/2028 | | 3,250 | | | — | | | — | | 0.0 | % |
Destination Media, Inc. (Revolver) (*) | | SF | | 7.25 | % | 12.54 | % | | 6/21/2023 | | 6/21/2028 | | 670 | | | — | | | — | | 0.0 | % |
Madison Logic Holdings, Inc. (~) |
| SF | | 7.00 | % | 12.24 | % | | 12/30/2022 | | 12/29/2028 | | 13,965 | | | 13,574 | | | 14,035 | | 1.5 | % |
Madison Logic Holdings, Inc. (Revolver) (*) |
| SF | | 7.00 | % | 12.24 | % | | 12/30/2022 | | 12/30/2027 | | 1,207 | | | — | | | — | | 0.0 | % |
North Haven USHC Acquisition, Inc. (~) (~~) | | SF | | 6.50 | % | 11.46 | % | | 10/30/2020 | | 10/30/2025 | | 2,438 | | | 2,412 | | | 2,379 | | 0.2 | % |
North Haven USHC Acquisition, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.46 | % | | 3/12/2021 | | 10/30/2025 | | 706 | | | 706 | | | 689 | | 0.1 | % |
North Haven USHC Acquisition, Inc. (~) | | SF | | 6.50 | % | 11.69 | % | | 9/3/2021 | | 10/30/2025 | | 1,427 | | | 1,427 | | | 1,392 | | 0.1 | % |
North Haven USHC Acquisition, Inc. (~) |
| SF | | 6.25 | % | 11.44 | % | | 7/29/2022 | | 10/30/2025 | | 2,579 | | | 2,550 | | | 2,505 | | 0.3 | % |
North Haven USHC Acquisition, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.69 | % | | 7/29/2022 | | 10/30/2025 | | 1,056 | | | — | | | — | | 0.0 | % |
North Haven USHC Acquisition, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 11.67 | % | | 10/30/2020 | | 10/30/2025 | | 416 | | | 312 | | | 305 | | 0.0 | % |
|
| | | | | 12.64 | % Cash/ | | | | | | | | | | | | | | | |
NTM Acquisition Corp. (~~~) | | SF | | 8.40 | % | 1.00 | % PIK | | 4/18/2019 | | 6/7/2024 | | 4,280 | | | 4,280 | | | 4,109 | | 0.4 | % |
Really Great Reading Company, Inc. (~) |
| SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 11,970 | | | 11,692 | | | 11,910 | | 1.3 | % |
Really Great Reading Company, Inc. (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 2,526 | | | — | | | — | | 0.0 | % |
Really Great Reading Company, Inc. (Revolver) (*) |
| SF | | 6.00 | % | 10.89 | % | | 12/9/2022 | | 12/8/2028 | | 3,200 | | | — | | | — | | 0.0 | % |
Relevate Health Group, LLC (~) (~~) | | SF | | 6.00 | % | 11.26 | % | | 11/20/2020 | | 11/20/2025 | | 1,955 | | | 1,935 | | | 1,932 | | 0.2 | % |
Relevate Health Group, LLC (~) (~~~) |
| SF | | 6.00 | % | 11.26 | % | | 3/28/2022 | | 11/20/2025 | | 5,210 | | | 5,139 | | | 5,148 | | 0.5 | % |
Relevate Health Group, LLC (~~~) |
| SF | | 6.00 | % | 11.26 | % | | 11/20/2020 | | 11/20/2025 | | 875 | | | 875 | | | 864 | | 0.1 | % |
Relevate Health Group, LLC (Revolver) (*) | | SF | | 6.00 | % | 11.26 | % | | 11/20/2020 | | 11/20/2025 | | 789 | | | — | | | — | | 0.0 | % |
Renaissance Holding Corp. (~) | | SF | | 4.75 | % | 9.99 | % | | 3/16/2023 | | 4/5/2030 | | 7,500 | | | 7,279 | | | 7,422 | | 0.8 | % |
Spherix Global Inc. (~) (~~) | | SF | | 6.36 | % | 11.52 | % | | 12/22/2021 | | 12/22/2026 | | 4,444 | | | 4,388 | | | 4,305 | | 0.5 | % |
Spherix Global Inc. (Revolver) (*) | | SF | | 6.36 | % | 11.52 | % | | 12/22/2021 | | 12/22/2026 | | 500 | | | — | | | — | | 0.0 | % |
XanEdu Publishing, Inc. (~~) (~~~) | | SF | | 6.00 | % | 11.22 | % | | 1/28/2020 | | 1/28/2025 | | 6,001 | | | 5,948 | | | 6,001 | | 0.6 | % |
XanEdu Publishing, Inc. (~~~) | | SF | | 6.00 | % | 11.22 | % | | 8/31/2022 | | 1/28/2025 | | 2,385 | | | 2,344 | | | 2,388 | | 0.3 | % |
XanEdu Publishing, Inc. (Revolver) (*) | | SF | | 6.00 | % | 11.22 | % | | 1/28/2020 | | 1/28/2025 | | 977 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 141,411 | | | 122,332 | | | 123,654 | | 13.1 | % |
11
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Media: Broadcasting & Subscription |
| | |
|
| |
| |
|
|
|
|
|
| |
|
| |
|
|
| |
| | | | | | 4.92 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 15.00 | % | 15.00 | % PIK | | 5/2/2019 | | 5/12/2023 |
| 1,311 |
| $ | 1,311 |
| $ | 1,288 |
| 0.2 | % |
| | | | | | 4.92 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 15.00 | % | 15.00 | % PIK | | 5/2/2019 | | 5/12/2023 |
| 411 |
| | 411 |
| | 403 |
| 0.1 | % |
| | | | | | 4.92 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 15.00 | % | 15.00 | % PIK | | 5/2/2019 | | 5/12/2023 |
| 155 |
| | 155 |
| | 152 |
| 0.0 | % |
| | | | | | 4.96 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 15.00 | % | 15.00 | % PIK | | 11/4/2019 | | 5/12/2023 |
| 252 |
| | 252 |
| | 247 |
| 0.0 | % |
| | | | | | 5.16 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. (Delayed Draw) (*) (**) |
| SF | | 12.00 | % | 12.00 | % PIK | | 1/27/2023 | | 5/12/2023 |
| 298 |
| | 286 |
| | 286 |
| 0.0 | % |
|
| | | | | | | | | | |
| 2,427 |
| | 2,415 |
| | 2,376 |
| 0.3 | % |
Media: Diversified & Production |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Bonterra LLC (~~) |
| L | | 6.00 | % | 11.16 | % | | 9/8/2021 | | 9/8/2027 |
| 18,857 |
| | 18,651 |
| | 18,433 |
| 2.1 | % |
Bonterra LLC (Delayed Draw) (*) (**) |
| L | | 6.00 | % | 11.16 | % | | 9/8/2021 | | 9/8/2027 |
| 1,457 |
| | — |
| | — |
| 0.0 | % |
Bonterra LLC (Revolver) (*) | | L | | 6.00 | % | 11.16 | % | | 9/8/2021 | | 9/8/2027 | | 1,814 | | | 1,785 | | | 1,744 | | 0.2 | % |
Chess.com, LLC (~~) (~~~) |
| L | | 6.50 | % | 11.66 | % | | 12/31/2021 | | 12/31/2027 |
| 12,870 |
| | 12,660 |
| | 12,693 |
| 1.5 | % |
Chess.com, LLC (Revolver) (*) |
| L | | 6.50 | % | 11.66 | % | | 12/31/2021 | | 12/31/2027 |
| 1,413 |
| | — |
| | — |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 12.02 | % | | 2/28/2019 | | 2/28/2025 |
| 1,000 |
| | 996 |
| | 1,000 |
| 0.1 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 12.02 | % | | 2/28/2019 | | 2/28/2025 |
| 15 |
| | 15 |
| | 15 |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 11.47 | % | | 9/27/2022 | | 2/28/2025 |
| 318 |
| | 313 |
| | 318 |
| 0.1 | % |
Crownpeak Technology, Inc. (~) |
| SF | | 7.25 | % | 12.02 | % | | 9/27/2022 | | 2/28/2025 |
| 833 |
| | 833 |
| | 833 |
| 0.1 | % |
Crownpeak Technology, Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.02 | % | | 2/28/2019 | | 2/28/2025 |
| 125 |
| | — |
| | — |
| 0.0 | % |
Research Now Group, Inc. and Survey Sampling International, LLC (~) |
| L | | 5.50 | % | 10.31 | % | | 11/28/2022 | | 12/20/2024 | | 2,487 |
| | 2,273 |
| | 1,907 |
| 0.2 | % |
Sports Operating Holdings II, LLC (~) |
| SF | | 5.75 | % | 10.56 | % | | 11/3/2022 | | 11/3/2027 |
| 4,975 |
| | 4,861 |
| | 4,975 |
| 0.6 | % |
Sports Operating Holdings II, LLC (Delayed Draw) (*) (**) |
| SF | | 5.75 | % | 10.56 | % | | 11/3/2022 | | 11/3/2027 |
| 4,000 |
| | — |
| | — |
| 0.0 | % |
Sports Operating Holdings II, LLC (Revolver) (*) |
| SF | | 5.75 | % | 10.56 | % | | 11/3/2022 | | 11/3/2027 |
| 865 |
| | — |
| | — |
| 0.0 | % |
Streamland Media MidCo LLC (~) (~~) |
| SF | | 6.75 | % | 11.69 | % | | 8/26/2019 | | 8/31/2023 |
| 1,969 |
| | 1,959 |
| | 1,969 |
| 0.2 | % |
Streamland Media MidCo LLC (~) |
| SF | | 6.75 | % | 11.69 | % | | 3/7/2022 | | 8/31/2023 |
| 533 |
| | 526 |
| | 533 |
| 0.1 | % |
|
| | | | | | | | | | |
| 53,531 |
| | 44,872 |
| | 44,420 |
| 5.2 | % |
Retail |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Carrols Restaurant Group Inc (~) (d) |
| SF | | 3.35 | % | 8.16 | % | | 3/30/2023 | | 4/30/2026 |
| 1,000 |
| | 930 | | | 930 |
| 0.1 | % |
|
| | | | | | | | | | | | 1,000 |
| | 930 |
| | 930 |
| 0.1 | % |
Services: Business |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Aperture Companies, LLC (~~) (~~~) | | L | | 6.25 | % | 10.91 | % | | 12/31/2021 | | 12/31/2026 | | 14,850 | | | 14,621 | | | 14,281 | | 1.7 | % |
Aperture Companies, LLC (~~) |
| L | | 6.25 | % | 10.91 | % | | 12/31/2021 | | 12/31/2026 |
| 4,315 |
| | 4,315 |
| | 4,150 |
| 0.5 | % |
Aperture Companies, LLC (Revolver) (*) | | L | | 6.25 | % | 10.91 | % | | 12/31/2021 | | 12/31/2026 | | 1,347 | | | — | | | — | | 0.0 | % |
|
| | | | | 8.07 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Aras Corporation (~) | | L | | 7.00 | % | 3.75 | % PIK | | 4/13/2021 | | 4/13/2027 | | 4,714 | | | 4,655 | | | 4,690 | | 0.5 | % |
Aras Corporation (Revolver) (*) |
| L | | 6.50 | % | 11.32 | % | | 4/13/2021 | | 4/13/2027 |
| 325 |
| | 217 |
| | 216 |
| 0.0 | % |
Argano, LLC (~~) (~~~) | | SF | | 5.50 | % | 10.27 | % | | 6/10/2021 | | 6/10/2026 | | 8,963 | | | 8,843 | | | 8,952 | | 1.0 | % |
Argano, LLC (~) (~~~) |
| SF | | 5.50 | % | 10.27 | % | | 6/10/2021 | | 6/10/2026 |
| 3,969 |
| | 3,969 |
| | 3,964 |
| 0.5 | % |
Argano, LLC (~) | | SF | | 5.50 | % | 10.27 | % | | 10/7/2022 | | 6/10/2026 | | 689 | | | 671 | | | 689 | | 0.1 | % |
Argano, LLC (~) |
| SF | | 5.50 | % | 10.27 | % | | 3/16/2022 | | 6/10/2026 |
| 4,745 |
| | 4,745 |
| | 4,739 |
| 0.6 | % |
Argano, LLC (Revolver) |
| SF | | 5.50 | % | 10.26 | % | | 6/10/2021 | | 6/10/2026 | | 965 |
| | 965 |
| | 964 |
| 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) |
| L | | 6.75 | % | 11.91 | % PIK | | 9/21/2021 | | 9/21/2027 | | 16,535 |
| | 16,297 |
| | 16,391 |
| 1.9 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) | | L | | 6.75 | % | 11.91 | % PIK | | 9/21/2021 | | 9/21/2027 | | 1,291 | | | 1,291 | | | 1,280 | | 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (Revolver) (<) (*) (b) |
| L | | 6.75 | % | 11.91 | % | | 9/21/2021 | | 9/21/2027 |
| 2,067 |
| | — |
| | — |
| 0.0 | % |
Edustaff, LLC (~) |
| SF | | 6.00 | % | 10.91 | % | | 12/8/2022 | | 12/8/2027 |
| 12,968 |
| | 12,635 |
| | 13,032 |
| 1.5 | % |
Edustaff, LLC (Revolver) (*) |
| SF | | 6.00 | % | 10.91 | % | | 12/8/2022 | | 12/8/2027 |
| 2,364 |
| | — |
| | — |
| 0.0 | % |
FusionSite MidCo LLC (~) |
| SF | | 5.50 | % | 10.09 | % | | 10/4/2022 | | 10/4/2027 | | 16,058 |
| | 15,764 |
| | 16,066 |
| 1.9 | % |
FusionSite MidCo LLC (Delayed Draw) (*) (**) | | SF | | 5.50 | % | 10.09 | % | | 10/4/2022 | | 10/4/2027 | | 7,569 | | | 2,569 | | | 2,571 | | 0.3 | % |
FusionSite MidCo LLC (Revolver) (*) | | SF | | 5.50 | % | 10.09 | % | | 10/4/2022 | | 10/4/2027 | | 1,326 | | | — | | | — | | 0.0 | % |
HS4 Acquisitionco, Inc. (~~) | | L | | 6.75 | % | 11.59 | % | | 7/9/2019 | | 7/9/2025 | | 3,930 | | | 3,896 | | | 3,910 | | 0.5 | % |
HS4 Acquisitionco, Inc. (~~) | | L | | 6.75 | % | 11.59 | % | | 10/6/2021 | | 7/9/2025 | | 4,269 | | | 4,269 | | | 4,248 | | 0.5 | % |
HS4 Acquisitionco, Inc. (Revolver) (*) | | L | | 6.75 | % | 11.59 | % | | 7/9/2019 | | 7/9/2025 | | 325 | | | 186 | | | 185 | | 0.0 | % |
iCIMS, Inc. (~~) | | SF | | 7.25 | % | 12.05 | % | | 10/24/2022 | | 8/18/2028 | | 8,000 | | | 7,867 | | | 8,000 | | 0.9 | % |
Kingsley Gate Partners, LLC (~) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,000 | | | 2,944 | | | 3,003 | | 0.3 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,600 | | | — | | | — | | 0.0 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,000 | | | — | | | — | | 0.0 | % |
Kingsley Gate Partners, LLC (Revolver) (*) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 1,200 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (~) | | SF | | 5.75 | % | 10.63 | % | | 9/30/2022 | | 8/4/2028 | | 6,983 | | | 6,854 | | | 6,983 | | 0.8 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 10.63 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 10.63 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Revolver) (*) | | SF | | 5.75 | % | 10.63 | % | | 9/30/2022 | | 8/4/2028 | | 933 | | | — | | | — | | 0.0 | % |
Prototek LLC (~~~) | | SF | | 6.50 | % | 11.27 | % | | 12/8/2022 | | 12/8/2027 | | 8,000 | | | 7,773 | | | 7,984 | | 0.9 | % |
Prototek LLC (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.27 | % | | 12/8/2022 | | 12/8/2027 | | 2,457 | | | — | | | — | | 0.0 | % |
Prototek LLC (Revolver) (*) | | SF | | 6.50 | % | 11.22 | % | | 12/8/2022 | | 12/8/2027 | | 1,843 | | | — | | | — | | 0.0 | % |
Relativity ODA LLC (~) | | L | | 7.50 | % | 12.35 | % PIK | | 5/12/2021 | | 5/12/2027 | | 5,207 | | | 5,118 | | | 5,213 | | 0.6 | % |
Relativity ODA LLC (Revolver) (*) | | L | | 7.50 | % | 12.35 | % PIK | | 5/12/2021 | | 5/12/2027 | | 450 | | | — | | | — | | 0.0 | % |
Sundance Group Holdings, Inc. (~~) | | SF | | 6.25 | % | 10.95 | % | | 7/2/2021 | | 7/2/2027 | | 4,148 | | | 4,084 | | | 4,121 | | 0.5 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 11.16 | % | | 11/30/2022 | | 7/2/2027 | | 166 | | | 161 | | | 165 | | 0.0 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 11.09 | % | | 7/2/2021 | | 7/2/2027 | | 1,244 | | | 1,244 | | | 1,236 | | 0.1 | % |
Sundance Group Holdings, Inc. (Revolver) (*) | | SF | | 6.35 | % | 11.18 | % | | 7/2/2021 | | 7/2/2027 | | 498 | | | 50 | | | 49 | | 0.0 | % |
The GEO Group, Inc (~) (<) (d) | | SF | | 7.13 | % | 11.93 | % | | 3/28/2023 | | 3/23/2027 | | 3,000 | | | 3,030 | | | 3,030 | | 0.4 | % |
Thryv, Inc. (~) (<) | | L | | 8.50 | % | 13.34 | % | | 9/7/2022 | | 2/27/2026 | | 8,404 | | | 8,329 | | | 8,367 | | 1.0 | % |
Verdantas LLC (~) | | SF | | 7.60 | % | 12.27 | % | | 2/28/2023 | | 7/1/2025 | | 4,000 | | | 3,883 | | | 3,880 | | 0.5 | % |
Verdantas LLC (Delayed Draw) (*) (**) | | SF | | 7.60 | % | 12.27 | % | | 2/28/2023 | | 7/1/2025 | | 2,000 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 186,383 | | | 151,245 | | | 152,359 | | 17.7 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Media: Broadcasting & Subscription |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
| | | | | | 5.25 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 12.00 | % | 12.00 | % PIK | | 5/17/2023 | | 11/17/2023 |
| 66 |
| $ | 66 |
| $ | 66 |
| 0.0 | % |
| | | | | | 5.25 | % Cash/ | | | | | | | | | | | | | | | |
Vice Group Holding Inc. |
| SF | | 12.00 | % | 12.00 | % PIK | | 5/30/2023 | | 11/17/2023 |
| 300 |
| | 300 |
| | 300 |
| 0.0 | % |
|
| | | | | | | | | | |
| 366 |
| | 366 |
| | 366 |
| 0.0 | % |
Media: Diversified & Production |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Bonterra LLC (~~) |
| L | | 6.25 | % | 11.79 | % | | 9/8/2021 | | 9/8/2027 |
| 19,030 |
| | 18,829 |
| | 18,649 |
| 2.0 | % |
Bonterra LLC (Delayed Draw) (*) (**) |
| L | | 6.25 | % | 11.79 | % | | 9/8/2021 | | 9/8/2027 |
| 1,284 |
| | — |
| | — |
| 0.0 | % |
Bonterra LLC (Revolver) (*) | | L | | 6.25 | % | 11.79 | % | | 9/8/2021 | | 9/8/2027 | | 1,814 | | | 1,785 | | | 1,749 | | 0.2 | % |
Chess.com, LLC (~~) (~~~) |
| SF | | 6.60 | % | 12.14 | % | | 12/31/2021 | | 12/31/2027 |
| 12,838 |
| | 12,638 |
| | 12,677 |
| 1.4 | % |
Chess.com, LLC (Revolver) (*) |
| SF | | 6.50 | % | 12.04 | % | | 12/31/2021 | | 12/31/2027 |
| 1,413 |
| | — |
| | — |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 12.51 | % | | 2/28/2019 | | 2/28/2025 |
| 1,000 |
| | 997 |
| | 1,000 |
| 0.1 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 12.51 | % | | 2/28/2019 | | 2/28/2025 |
| 15 |
| | 15 |
| | 15 |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 12.37 | % | | 9/27/2022 | | 2/28/2025 |
| 318 |
| | 314 |
| | 318 |
| 0.0 | % |
Crownpeak Technology, Inc. (~) |
| SF | | 7.25 | % | 12.51 | % | | 9/27/2022 | | 2/28/2025 |
| 833 |
| | 833 |
| | 833 |
| 0.1 | % |
Crownpeak Technology, Inc. (Revolver) (*) |
| SF | | 7.25 | % | 12.51 | % | | 2/28/2019 | | 2/28/2025 |
| 125 |
| | — |
| | — |
| 0.0 | % |
Research Now Group, Inc. and Survey Sampling International, LLC (~) |
| L | | 5.50 | % | 10.80 | % | | 11/28/2022 | | 12/20/2024 | | 2,480 |
| | 2,294 |
| | 1,778 |
| 0.2 | % |
Sports Operating Holdings II, LLC (~) |
| SF | | 5.85 | % | 10.95 | % | | 11/3/2022 | | 11/3/2027 |
| 4,963 |
| | 4,853 |
| | 4,987 |
| 0.5 | % |
Sports Operating Holdings II, LLC (Delayed Draw) (*) (**) |
| SF | | 5.75 | % | 10.95 | % | | 11/3/2022 | | 11/3/2027 |
| 3,999 |
| | 404 |
| | 406 |
| 0.0 | % |
Sports Operating Holdings II, LLC (Revolver) (*) |
| SF | | 5.85 | % | 11.05 | % | | 11/3/2022 | | 11/3/2027 |
| 865 |
| | — |
| | — |
| 0.0 | % |
Streamland Media MidCo LLC (~) (~~) |
| SF | | 6.75 | % | 12.06 | % | | 8/26/2019 | | 8/31/2023 |
| 1,964 |
| | 1,956 |
| | 1,954 |
| 0.2 | % |
Streamland Media MidCo LLC (~) |
| SF | | 6.75 | % | 12.06 | % | | 3/7/2022 | | 8/31/2023 |
| 532 |
| | 525 |
| | 529 |
| 0.1 | % |
|
| | | | | | | | | | |
| 53,473 |
| | 45,443 |
| | 44,895 |
| 4.8 | % |
Retail |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Carrols Restaurant Group Inc. (~) |
| SF | | 3.35 | % | 8.45 | % | | 3/30/2023 | | 4/30/2026 |
| 987 |
| | 922 | | | 954 |
| 0.1 | % |
|
| | | | | | | | | | | | 987 |
| | 922 |
| | 954 |
| 0.1 | % |
Services: Business |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Aduro Advisors, LLC (~) | | SF | | 6.35 | % | 11.45 | % | | 5/26/2023 | | 5/26/2028 | | 8,500 | | | 8,290 | | | 8,288 | | 0.9 | % |
Aduro Advisors, LLC (Revolver) | | SF | | 6.35 | % | 11.45 | % | | 5/26/2023 | | 5/26/2028 | | 944 | | | 944 | | | 921 | | 0.1 | % |
Aduro Advisors, LLC (Revolver) | | SF | | 6.35 | % | 11.45 | % | | 5/26/2023 | | 5/26/2028 | | 1,889 | | | 1,889 | | | 1,875 | | 0.2 | % |
Aperture Companies, LLC (~~) (~~~) | | L | | 6.25 | % | 11.42 | % | | 12/31/2021 | | 12/31/2026 | | 14,812 | | | 14,597 | | | 14,201 | | 1.5 | % |
Aperture Companies, LLC (~~) |
| L | | 6.25 | % | 11.42 | % | | 12/31/2021 | | 12/31/2026 |
| 4,304 |
| | 4,304 |
| | 4,127 |
| 0.5 | % |
Aperture Companies, LLC (Revolver) (*) | | L | | 6.25 | % | 11.42 | % | | 12/31/2021 | | 12/31/2026 | | 1,347 | | | — | | | — | | 0.0 | % |
|
| | | | | 8.49 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Aras Corporation (~) | | L | | 6.50 | % | 3.25 | % PIK | | 4/13/2021 | | 4/13/2027 | | 4,758 | | | 4,703 | | | 4,770 | | 0.5 | % |
Aras Corporation (Revolver) (*) |
| L | | 6.50 | % | 11.74 | % | | 4/13/2021 | | 4/13/2027 |
| 325 |
| | 217 |
| | 217 |
| 0.0 | % |
Argano, LLC (~) | | SF | | 6.60 | % | 11.76 | % | | 4/18/2023 | | 4/14/2025 | | 1,203 | | | 1,186 | | | 1,207 | | 0.1 | % |
Argano, LLC (~~) (~~~) |
| SF | | 5.50 | % | 10.76 | % | | 6/10/2021 | | 6/10/2026 |
| 8,941 |
| | 8,828 |
| | 8,740 |
| 0.9 | % |
Argano, LLC (~) (~~~) | | SF | | 5.50 | % | 10.76 | % | | 6/10/2021 | | 6/10/2026 | | 3,959 | | | 3,959 | | | 3,870 | | 0.4 | % |
Argano, LLC (~) |
| SF | | 5.50 | % | 10.76 | % | | 10/7/2022 | | 6/10/2026 |
| 688 |
| | 671 |
| | 672 |
| 0.1 | % |
Argano, LLC (~) | | SF | | 5.50 | % | 10.76 | % | | 3/16/2022 | | 6/10/2026 | | 4,733 | | | 4,733 | | | 4,627 | | 0.5 | % |
Argano, LLC (Revolver) |
| SF | | 5.50 | % | 10.76 | % | | 6/10/2021 | | 6/10/2026 | | 965 |
| | 965 |
| | 943 |
| 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) |
| SF | | 6.85 | % | 12.09 | % | | 9/21/2021 | | 9/21/2027 | | 16,535 |
| | 16,303 |
| | 16,432 |
| 1.7 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) | | SF | | 6.85 | % | 12.09 | % | | 9/21/2021 | | 9/21/2027 | | 1,291 | | | 1,291 | | | 1,283 | | 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (Delayed Draw) (<) (*) (**) (b) |
| SF | | 6.85 | % | 12.09 | % | | 5/4/2023 | | 9/21/2027 |
| 2,063 |
| | 537 |
| | 533 |
| 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (Revolver) (<) (*) (b) | | SF | | 6.85 | % | 12.09 | % | | 9/21/2021 | | 9/21/2027 | | 2,067 | | | — | | | — | | 0.0 | % |
Edustaff, LLC (~) |
| SF | | 6.10 | % | 11.20 | % | | 12/8/2022 | | 12/8/2027 |
| 12,935 |
| | 12,616 |
| | 13,064 |
| 1.4 | % |
Edustaff, LLC (Revolver) (*) |
| SF | | 6.10 | % | 11.20 | % | | 12/8/2022 | | 12/8/2027 |
| 2,364 |
| | — |
| | — |
| 0.0 | % |
FusionSite MidCo LLC (~) |
| SF | | 5.50 | % | 10.54 | % | | 10/4/2022 | | 10/4/2027 | | 16,018 |
| | 15,739 |
| | 16,050 |
| 1.7 | % |
FusionSite MidCo LLC (Delayed Draw) (*) (**) | | SF | | 5.65 | % | 10.88 | % | | 10/4/2022 | | 10/4/2027 | | 7,563 | | | 4,836 | | | 4,845 | | 0.5 | % |
FusionSite MidCo LLC (Revolver) (*) | | SF | | 5.65 | % | 10.88 | % | | 10/4/2022 | | 10/4/2027 | | 1,326 | | | — | | | — | | 0.0 | % |
HS4 Acquisitionco, Inc. (~~) | | SF | | 6.85 | % | 11.95 | % | | 7/9/2019 | | 7/9/2025 | | 3,920 | | | 3,889 | | | 3,900 | | 0.4 | % |
HS4 Acquisitionco, Inc. (~~) | | SF | | 6.85 | % | 11.95 | % | | 10/6/2021 | | 7/9/2025 | | 4,258 | | | 4,258 | | | 4,237 | | 0.5 | % |
HS4 Acquisitionco, Inc. (Revolver) (*) | | SF | | 6.85 | % | 11.95 | % | | 7/9/2019 | | 7/9/2025 | | 325 | | | 223 | | | 222 | | 0.0 | % |
iCIMS, Inc. (~~) | | SF | | 7.25 | % | 12.38 | % | | 10/24/2022 | | 8/18/2028 | | 8,000 | | | 7,874 | | | 8,000 | | 0.9 | % |
Kingsley Gate Partners, LLC (~) | | SF | | 6.15 | % | 11.04 | % | | 12/9/2022 | | 12/11/2028 | | 2,993 | | | 2,938 | | | 2,982 | | 0.3 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.15 | % | 11.11 | % | | 12/9/2022 | | 12/11/2028 | | 3,600 | | | 960 | | | 957 | | 0.1 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.15 | % | 11.11 | % | | 12/9/2022 | | 12/11/2028 | | 3,000 | | | — | | | — | | 0.0 | % |
Kingsley Gate Partners, LLC (Revolver) (*) | | SF | | 6.15 | % | 11.11 | % | | 12/9/2022 | | 12/11/2028 | | 1,200 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (~) | | SF | | 5.75 | % | 11.02 | % | | 9/30/2022 | | 8/4/2028 | | 6,965 | | | 6,842 | | | 6,965 | | 0.7 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 11.02 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 11.02 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Revolver) (*) | | SF | | 5.75 | % | 11.02 | % | | 9/30/2022 | | 8/4/2028 | | 933 | | | — | | | — | | 0.0 | % |
Prototek LLC (~~~) | | SF | | 7.10 | % | 12.26 | % | | 12/8/2022 | | 12/8/2027 | | 7,980 | | | 7,763 | | | 7,880 | | 0.8 | % |
Prototek LLC (Delayed Draw) (*) (**) | | SF | | 7.10 | % | 12.26 | % | | 12/8/2022 | | 12/8/2027 | | 2,457 | | | — | | | — | | 0.0 | % |
Prototek LLC (Revolver) (*) | | SF | | 7.10 | % | 12.26 | % | | 12/8/2022 | | 12/8/2027 | | 1,843 | | | — | | | — | | 0.0 | % |
Relativity ODA LLC (~) | | SF | | 6.60 | % | 11.70 | % PIK | | 5/12/2021 | | 5/12/2027 | | 5,267 | | | 5,182 | | | 5,267 | | 0.6 | % |
Relativity ODA LLC (Revolver) (*) | | SF | | 6.60 | % | 11.70 | % PIK | | 5/12/2021 | | 5/12/2027 | | 450 | | | — | | | — | | 0.0 | % |
Sundance Group Holdings, Inc. (~~) | | SF | | 6.25 | % | 11.41 | % | | 7/2/2021 | | 7/2/2027 | | 4,148 | | | 4,087 | | | 4,129 | | 0.5 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 11.61 | % | | 11/30/2022 | | 7/2/2027 | | 166 | | | 161 | | | 165 | | 0.0 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 11.44 | % | | 7/2/2021 | | 7/2/2027 | | 1,244 | | | 1,244 | | | 1,239 | | 0.1 | % |
Sundance Group Holdings, Inc. (Revolver) (*) | | SF | | 6.35 | % | 11.44 | % | | 7/2/2021 | | 7/2/2027 | | 498 | | | 116 | | | 116 | | 0.0 | % |
Teneo Holdings LLC (~) | | SF | | 5.35 | % | 10.45 | % | | 5/25/2023 | | 7/11/2025 | | 2,992 | | | 2,992 | | | 2,996 | | 0.3 | % |
The GEO Group, Inc. (~) (<) | | SF | | 7.13 | % | 12.23 | % | | 4/5/2023 | | 3/23/2027 | | 9,974 | | | 10,148 | | | 10,161 | | 1.1 | % |
Thryv, Inc. (~) (<) | | L | | 8.50 | % | 13.69 | % | | 9/7/2022 | | 2/27/2026 | | 8,031 | | | 7,964 | | | 7,973 | | 0.9 | % |
Verdantas LLC (~) | | SF | | 7.60 | % | 12.77 | % | | 2/28/2023 | | 7/1/2025 | | 3,990 | | | 3,885 | | | 3,982 | | 0.4 | % |
Verdantas LLC (Delayed Draw) (*) (**) | | SF | | 7.60 | % | 12.77 | % | | 2/28/2023 | | 7/1/2025 | | 2,000 | | | — | | | — | | 0.0 | % |
Vhagar Purchaser, LLC (~~~~) | | SF | | 7.00 | % | 12.24 | % | | 6/9/2023 | | 6/8/2029 | | 10,000 | | | 9,703 | | | 9,700 | | 1.0 | % |
Vhagar Purchaser, LLC (Delayed Draw) (*) (**) | | SF | | 7.00 | % | 12.24 | % | | 6/9/2023 | | 6/8/2029 | | 2,222 | | | — | | | — | | 0.0 | % |
Vhagar Purchaser, LLC (Revolver) (*) | | SF | | 7.00 | % | 12.24 | % | | 6/9/2023 | | 6/8/2029 | | 1,111 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 223,763 | | | 186,837 | | | 187,536 | | 19.9 | % |
12
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Services: Consumer |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Clydesdale Holdings, LLC (~) (~~~) |
| SF | | 5.65 | % | 10.89 | % | | 6/24/2022 | | 6/23/2028 |
| 14,888 |
| $ | 14,633 |
| $ | 14,917 |
| 1.6 | % |
Clydesdale Holdings, LLC (Delayed Draw) (*) (**) |
| SF | | 5.65 | % | 10.89 | % | | 6/24/2022 | | 6/23/2028 |
| 21,144 |
| | 17,319 |
| | 17,354 |
| 1.9 | % |
Clydesdale Holdings, LLC (Revolver) (*) |
| SF | | 5.65 | % | 10.89 | % | | 6/24/2022 | | 6/23/2028 |
| 4,523 |
| | 2,563 |
| | 2,563 |
| 0.3 | % |
Denali Midco 2, LLC |
| SF | | 6.50 | % | 11.70 | % | | 9/13/2022 | | 12/22/2027 |
| 12,406 |
| | 12,079 |
| | 12,388 |
| 1.3 | % |
Denali Midco 2, LLC (Delayed Draw) (*) (**) |
| SF | | 6.50 | % | 11.70 | % | | 9/13/2022 | | 12/22/2027 | | 12,480 |
| | 5,314 |
| | 5,306 |
| 0.6 | % |
Express Wash Acquisition Company, LLC (~) |
| SF | | 6.50 | % | 11.65 | % | | 7/14/2022 | | 7/14/2028 |
| 11,471 |
| | 11,415 |
| | 11,471 |
| 1.2 | % |
Express Wash Acquisition Company, LLC |
| SF | | 6.50 | % | 11.65 | % | | 7/14/2022 | | 7/14/2028 |
| 2,149 |
| | 2,149 |
| | 2,149 |
| 0.2 | % |
Express Wash Acquisition Company, LLC (Revolver) (*) |
| SF | | 6.50 | % | 11.65 | % | | 7/14/2022 | | 7/14/2028 |
| 536 |
| | 295 |
| | 295 |
| 0.0 | % |
Light Wave Dental Management, LLC (~~~~) |
| SF | | 7.00 | % | 12.10 | % | | 6/30/2023 | | 1/2/2024 |
| 27,500 |
| | 26,675 |
| | 26,675 |
| 2.8 | % |
Light Wave Dental Management, LLC (Revolver) (*) |
| SF | | 7.00 | % | 12.10 | % | | 6/30/2023 | | 1/2/2024 | | 3,802 |
| | 856 |
| | 830 |
| 0.1 | % |
Pacific Bells, LLC (~~~) |
| SF | | 4.50 | % | 10.00 | % | | 11/2/2022 | | 11/10/2028 |
| 2,923 |
| | 2,752 |
| | 2,870 |
| 0.3 | % |
Viad Corp (~) (<) |
| SF | | 5.11 | % | 10.22 | % | | 9/12/2022 | | 7/28/2028 |
| 4,949 |
| | 4,849 |
| | 4,826 |
| 0.5 | % |
|
| | | | | | | | | | |
| 118,771 |
| | 100,899 |
| | 101,644 |
| 10.8 | % |
Telecommunications |
| | | | | | | | | | |
| |
| | |
| | |
| | |
American Broadband and Telecommunications |
| | | | | 18.25 | % Cash/ | | | | | | |
| | |
| | |
| | |
Company LLC (Delayed Draw) (~) (*) (**) |
| P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 |
| 3,065 |
| | 2,792 |
| | 2,873 |
| 0.3 | % |
American Broadband and Telecommunications |
| | | | | 18.25 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Company LLC (Revolver) (*) |
| P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 | | 1,000 |
| | 245 |
| | 244 |
| 0.0 | % |
Calabrio, Inc. (~~) |
| SF | | 7.13 | % | 12.23 | % | | 4/16/2021 | | 4/16/2027 | | 8,000 |
| | 7,862 |
| | 7,960 |
| 0.8 | % |
Calabrio, Inc. (Revolver) (*) | | SF | | 7.00 | % | 12.15 | % | | 4/16/2021 | | 4/16/2027 | | 963 | | | 551 | | | 548 | | 0.1 | % |
DataOnline Corp. (~) (~~) |
| SF | | 5.50 | % | 10.98 | % | | 11/13/2019 | | 11/13/2025 |
| 6,273 |
| | 6,214 |
| | 6,205 |
| 0.7 | % |
DataOnline Corp. (Revolver) |
| SF | | 5.65 | % | 10.89 | % | | 11/13/2019 | | 11/13/2025 |
| 844 |
| | 844 |
| | 844 |
| 0.1 | % |
EOS Finco S.A.R.L. (~~~) (<) (b) |
| SF | | 6.00 | % | 10.91 | % | | 8/3/2022 | | 8/20/2027 |
| 1,242 |
| | 1,150 |
| | 1,235 |
| 0.1 | % |
Patagonia Holdco LLC (~) (<) (b) |
| SF | | 5.75 | % | 10.79 | % | | 8/5/2022 | | 8/1/2029 |
| 14,888 |
| | 12,425 |
| | 12,729 |
| 1.4 | % |
Sandvine Corporation (~) |
| L | | 4.50 | % | 9.69 | % | | 3/8/2021 | | 10/31/2025 |
| 1,143 |
| | 1,143 |
| | 1,083 |
| 0.1 | % |
|
| | | | | | | | | | | | 37,418 |
| | 33,226 |
| | 33,721 |
| 3.6 | % |
Transportation: Cargo |
| | | | | | | | | | |
| |
| | |
| | |
| | |
AIT Worldwide Logistics Holdings, Inc. (~) | | SF | | 4.75 | % | 9.93 | % | | 5/26/2023 | | 4/26/2028 | | 6,316 | | | 6,051 | | | 6,136 | | 0.7 | % |
Complete Innovations Inc. (~) (<) (a) (b) |
| C | | 6.25 | % | 11.38 | % | | 12/16/2020 | | 12/16/2025 |
| 8,307 |
| | 8,537 |
| | 8,377 |
| 0.9 | % |
Complete Innovations Inc. (~) (<) (a) (b) | | C | | 6.25 | % | 11.38 | % | | 12/16/2020 | | 12/16/2025 | | 1,054 | | | 1,101 | | | 1,062 | | 0.1 | % |
Fiasco Enterprises, LLC (~~~) |
| SF | | 5.61 | % | 10.77 | % | | 5/6/2022 | | 5/6/2027 |
| 6,948 |
| | 6,849 |
| | 6,895 |
| 0.7 | % |
Fiasco Enterprises, LLC (~) |
| SF | | 6.61 | % | 11.77 | % | | 12/15/2022 | | 5/6/2027 | | 8,379 |
| | 8,155 |
| | 8,341 |
| 0.9 | % |
Fiasco Enterprises, LLC (Revolver) (*) |
| SF | | 6.61 | % | 11.77 | % | | 5/6/2022 | | 5/6/2027 |
| 1,750 |
| | — |
| | — |
| 0.0 | % |
Kenco PPC Buyer LLC (~) (~~~) | | SF | | 5.00 | % | 10.26 | % | | 11/17/2022 | | 11/15/2029 | | 21,832 | | | 21,328 | | | 21,843 | | 2.3 | % |
Kenco PPC Buyer LLC (Delayed Draw) (*) (**) |
| SF | | 5.00 | % | 10.26 | % | | 11/17/2022 | | 11/15/2029 | | 3,870 |
| | — |
| | — |
| 0.0 | % |
Kenco PPC Buyer LLC (Revolver) (*) |
| SF | | 5.00 | % | 10.26 | % | | 11/17/2022 | | 11/15/2029 | | 4,787 |
| | — |
| | — |
| 0.0 | % |
Randys Holdings, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.74 | % | | 11/1/2022 | | 11/1/2028 | | 16,960 |
| | 16,490 |
| | 16,952 |
| 1.8 | % |
Randys Holdings, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.74 | % | | 11/1/2022 | | 11/1/2028 | | 5,682 | | | — | | | — | | 0.0 | % |
Randys Holdings, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 11.74 | % | | 11/1/2022 | | 11/1/2028 |
| 2,273 |
| | 429 |
| | 429 |
| 0.0 | % |
RS Acquisition, LLC (~~) (~~~) |
| SF | | 6.10 | % | 11.26 | % | | 12/13/2021 | | 12/14/2026 |
| 10,863 |
| | 10,706 |
| | 10,695 |
| 1.1 | % |
RS Acquisition, LLC (~) |
| SF | | 6.10 | % | 11.26 | % | | 12/13/2021 | | 12/14/2026 |
| 10,031 |
| | 10,031 | | | 9,877 |
| 1.0 | % |
RS Acquisition, LLC (Revolver) (*) |
| SF | | 6.10 | % | 11.26 | % | | 12/13/2021 | | 12/14/2026 |
| 1,264 |
| | 379 |
| | 379 |
| 0.0 | % |
|
| | | | | | | | | | | | 110,316 | | | 90,056 |
| | 90,986 |
| 9.5 | % |
13
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | |
| | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Services: Consumer |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Clydesdale Holdings, LLC (~) (~~~) |
| SF | | 5.65 | % | 10.55 | % | | 6/24/2022 | | 6/23/2028 |
| 14,925 |
| $ | 14,662 |
| $ | 14,895 |
| 1.7 | % |
Clydesdale Holdings, LLC (Delayed Draw) (*) (**) |
| SF | | 5.65 | % | 10.55 | % | | 6/24/2022 | | 6/23/2028 |
| 21,188 |
| | 16,113 |
| | 16,080 |
| 1.9 | % |
Clydesdale Holdings, LLC (Revolver) (*) |
| SF | | 5.65 | % | 10.55 | % | | 6/24/2022 | | 6/23/2028 |
| 4,523 |
| | — |
| | — |
| 0.0 | % |
Denali Midco 2, LLC |
| SF | | 6.50 | % | 11.41 | % | | 9/13/2022 | | 12/22/2027 |
| 12,438 |
| | 12,098 |
| | 12,469 |
| 1.5 | % |
Denali Midco 2, LLC (Delayed Draw) (*) (**) |
| SF | | 6.50 | % | 11.41 | % | | 9/13/2022 | | 12/22/2027 | | 12,494 |
| | 5,327 |
| | 5,340 |
| 0.6 | % |
Express Wash Acquisition Company, LLC (~) |
| SF | | 6.50 | % | 11.35 | % | | 7/14/2022 | | 7/14/2028 |
| 11,500 |
| | 11,441 |
| | 11,284 |
| 1.3 | % |
Express Wash Acquisition Company, LLC |
| SF | | 6.50 | % | 11.35 | % | | 7/14/2022 | | 7/14/2028 |
| 2,154 |
| | 2,154 |
| | 2,114 |
| 0.2 | % |
Express Wash Acquisition Company, LLC (Revolver) (*) |
| SF | | 6.50 | % | 11.35 | % | | 7/14/2022 | | 7/14/2028 |
| 536 |
| | 295 |
| | 289 |
| 0.0 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.66 | % | | 8/1/2019 | | 1/2/2024 |
| 2,024 |
| | 2,018 |
| | 2,020 |
| 0.2 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.66 | % | | 5/3/2021 | | 1/2/2024 |
| 1,466 |
| | 1,466 |
| | 1,463 |
| 0.2 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.66 | % | | 8/3/2021 | | 1/2/2024 | | 1,352 |
| | 1,344 |
| | 1,350 |
| 0.2 | % |
Light Wave Dental Management, LLC (~) |
| SF | | 6.50 | % | 11.66 | % | | 8/3/2021 | | 1/2/2024 |
| 3,373 |
| | 3,373 |
| | 3,367 |
| 0.4 | % |
Light Wave Dental Management, LLC (Delayed Draw) (~) (*) (**) |
| SF | | 6.50 | % | 11.66 | % | | 6/24/2022 | | 1/2/2024 |
| 11,455 |
| | 3,290 |
| | 3,283 |
| 0.4 | % |
Light Wave Dental Management, LLC (Revolver) |
| SF | | 6.50 | % | 11.66 | % | | 5/3/2021 | | 1/2/2024 | | 187 |
| | 187 |
| | 186 |
| 0.0 | % |
Pacific Bells, LLC (~~~) |
| SF | | 4.76 | % | 9.66 | % | | 11/2/2022 | | 11/10/2028 |
| 2,931 |
| | 2,754 |
| | 2,824 |
| 0.3 | % |
Viad Corp (~) (<) |
| SF | | 5.00 | % | 9.92 | % | | 9/12/2022 | | 7/28/2028 |
| 4,962 |
| | 4,858 |
| | 4,751 |
| 0.6 | % |
|
| | | | | | | | | | |
| 107,508 |
| | 81,380 |
| | 81,715 |
| 9.5 | % |
Telecommunications |
| | | | | | | | | | |
| |
| | |
| | |
| | |
American Broadband and Telecommunications |
| | | | | 18.00 | % Cash/ | | | | | | |
| | |
| | |
| | |
Company LLC (Delayed Draw) (~) (*) (**) |
| P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 |
| 3,065 |
| | 2,768 |
| | 2,849 |
| 0.3 | % |
American Broadband and Telecommunications |
| | | | | 18.00 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Company LLC (Revolver) (*) |
| P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 | | 1,000 |
| | 244 |
| | 242 |
| 0.0 | % |
Calabrio, Inc. (~~) |
| L | | 7.00 | % | 12.16 | % | | 4/16/2021 | | 4/16/2027 | | 8,000 |
| | 7,854 |
| | 7,960 |
| 0.9 | % |
Calabrio, Inc. (Revolver) (*) | | L | | 7.00 | % | 11.95 | % | | 4/16/2021 | | 4/16/2027 | | 963 | | | 551 | | | 548 | | 0.1 | % |
DataOnline Corp. (~) (~~) |
| L | | 6.25 | % | 10.88 | % | | 11/13/2019 | | 11/13/2025 |
| 6,289 |
| | 6,224 |
| | 6,138 |
| 0.7 | % |
DataOnline Corp. (Revolver) |
| L | | 6.25 | % | 11.41 | % | | 11/13/2019 | | 11/13/2025 |
| 844 |
| | 844 |
| | 824 |
| 0.1 | % |
EOS Finco S.A.R.L. (~~~) (<) (b) |
| SF | | 6.00 | % | 10.60 | % | | 8/3/2022 | | 8/20/2027 |
| 1,250 |
| | 1,155 |
| | 1,236 |
| 0.2 | % |
Patagonia Holdco LLC (~) (<) (b) |
| SF | | 5.75 | % | 10.47 | % | | 8/5/2022 | | 8/1/2029 |
| 14,925 |
| | 12,391 |
| | 12,440 |
| 1.5 | % |
Sandvine Corporation (~) |
| L | | 4.50 | % | 9.33 | % | | 3/8/2021 | | 10/31/2025 |
| 1,159 |
| | 1,159 |
| | 1,100 |
| 0.1 | % |
|
| | | | | | | | | | | | 37,495 |
| | 33,190 |
| | 33,337 |
| 3.9 | % |
Transportation: Cargo |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Complete Innovations Inc. (~) (<) (a) (b) |
| C | | 6.75 | % | 11.67 | % | | 12/16/2020 | | 12/16/2025 |
| 8,139 |
| | 8,528 |
| | 8,148 |
| 1.0 | % |
Complete Innovations Inc. (~) (<) (a) (b) | | C | | 6.75 | % | 11.67 | % | | 12/16/2020 | | 12/16/2025 | | 1,032 | | | 1,101 | | | 1,033 | | 0.1 | % |
Fiasco Enterprises, LLC (~~~) |
| SF | | 5.61 | % | 10.28 | % | | 5/6/2022 | | 5/6/2027 |
| 6,965 |
| | 6,861 |
| | 6,941 |
| 0.8 | % |
Fiasco Enterprises, LLC (~) |
| SF | | 6.61 | % | 11.28 | % | | 12/15/2022 | | 5/6/2027 | | 8,400 |
| | 8,163 |
| | 8,400 |
| 1.0 | % |
Fiasco Enterprises, LLC (Revolver) (*) |
| SF | | 5.61 | % | 10.28 | % | | 5/6/2022 | | 5/6/2027 |
| 1,750 |
| | — |
| | — |
| 0.0 | % |
Kenco PPC Buyer LLC (~) (~~~) | | SF | | 5.50 | % | 10.39 | % | | 11/17/2022 | | 11/15/2029 | | 21,886 | | | 21,364 | | | 21,821 | | 2.5 | % |
Kenco PPC Buyer LLC (Delayed Draw) (*) (**) |
| SF | | 5.50 | % | 10.39 | % | | 11/17/2022 | | 11/15/2029 | | 3,870 |
| | — |
| | — |
| 0.0 | % |
Kenco PPC Buyer LLC (Revolver) (*) |
| SF | | 5.50 | % | 10.39 | % | | 11/17/2022 | | 11/15/2029 | | 4,787 |
| | — |
| | — |
| 0.0 | % |
Randys Holdings, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.40 | % | | 11/1/2022 | | 11/1/2028 | | 17,003 |
| | 16,513 |
| | 16,926 |
| 2.0 | % |
Randys Holdings, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 11.40 | % | | 11/1/2022 | | 11/1/2028 | | 5,682 | | | — | | | — | | 0.0 | % |
Randys Holdings, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 11.40 | % | | 11/1/2022 | | 11/1/2028 |
| 2,273 |
| | 429 |
| | 427 |
| 0.0 | % |
RS Acquisition, LLC (~~) (~~~) |
| L | | 6.00 | % | 10.66 | % | | 12/13/2021 | | 12/14/2026 |
| 10,890 |
| | 10,724 |
| | 10,650 |
| 1.2 | % |
RS Acquisition, LLC (Delayed Draw) (~) (*) (**) |
| L | | 6.00 | % | 10.66 | % | | 12/13/2021 | | 12/14/2026 |
| 10,052 |
| | 8,282 | | | 8,100 |
| 0.9 | % |
RS Acquisition, LLC (Revolver) |
| L | | 6.00 | % | 10.66 | % | | 12/13/2021 | | 12/14/2026 |
| 1,264 |
| | 1,264 |
| | 1,237 |
| 0.2 | % |
|
| | | | | | | | | | | | 103,993 | | | 83,229 |
| | 83,683 |
| 9.7 | % |
13
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of | | ||||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
|
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| ||||||
Wholesale |
| | | |
|
| | |
|
|
|
|
|
| |
|
| |
|
|
| |
| | | |
|
| | |
|
|
|
|
|
| |
|
| |
|
|
| |
IF & P Holdings Company, LLC (~) (~~~) |
| SF | | 5.25 | % | 10.14 | % | | 10/6/2022 | | 10/3/2028 |
| 23,867 |
| $ | 23,314 |
| $ | 23,867 |
| 2.8 | % |
| SF | | 5.63 | % | 10.51 | % | | 10/6/2022 | | 10/3/2028 |
| 23,747 |
| $ | 23,219 |
| $ | 23,493 |
| 2.4 | % |
IF & P Holdings Company, LLC (~) |
| SF | | 6.00 | % | 11.23 | % | | 5/25/2023 | | 10/3/2028 |
| 6,667 |
| | 6,469 |
| | 6,693 |
| 0.7 | % | ||||||||||||||||||||||
IF & P Holdings Company, LLC (Revolver) (*) |
| SF | | 5.25 | % | 10.23 | % | | 10/6/2022 | | 10/3/2028 |
| 2,800 |
| | 1,456 |
| | 1,456 |
| 0.2 | % | | SF | | 5.63 | % | 10.85 | % | | 10/6/2022 | | 10/3/2028 | | 2,800 | | | 1,456 | | | 1,456 | | 0.2 | % |
S&S Holdings LLC (~) |
| L | | 5.00 | % | 9.83 | % | | 3/10/2021 | | 3/10/2028 | | 2,940 | | | 2,872 |
| | 2,780 |
| 0.3 | % |
| SF | | 5.10 | % | 10.09 | % | | 3/10/2021 | | 3/10/2028 | | 2,933 | | | 2,867 |
| | 2,573 |
| 0.3 | % |
|
| | | | | | | | | | |
| 29,607 |
| | 27,642 |
| | 28,103 |
| 3.3 | % |
| | | | | | | | | | |
| 36,147 |
| | 34,011 |
| | 34,215 |
| 3.6 | % |
Total Non-Controlled/Non-Affiliate Senior Secured Loans |
| | | | | | | | | | |
| 1,565,545 |
| | 1,304,363 |
| | 1,306,816 |
| 152.2 | % |
| | | | | | | | | | |
| 1,794,521 |
| | 1,513,095 |
| | 1,516,118 |
| 160.6 | % |
|
| | | | | | | | | | | | | | | |
| | |
| | |
| | | | | | | | | | | | | | | |
| | |
| | |
Unitranche Secured Loans (<<) |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Aerospace & Defense |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Cassavant Holdings, LLC (~) (~~) |
| SF | | 7.50 | % | 12.28 | % | | 9/8/2021 | | 9/8/2026 | | 13,231 | | | 13,041 |
| | 13,033 |
| 1.5 | % |
| SF | | 7.61 | % | 12.77 | % | | 9/8/2021 | | 9/8/2026 | | 13,198 | | | 13,020 |
| | 13,033 |
| 1.4 | % |
|
| | | | | | | | | | |
| 13,231 |
| | 13,041 |
| | 13,033 |
| 1.5 | % |
| | | | | | | | | | |
| 13,198 |
| | 13,020 |
| | 13,033 |
| 1.4 | % |
Construction & Building |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Inversiones DP6 (BVI) Numero Dos, Ltd. (Delayed | | | | | | 9.00 | % Cash/ | | | | | | | | | | | | | | | | | | | | | 9.00 | % Cash/ | | | | | | | | | | | | | | | |
Draw) (<) (*) (**) (b) |
| n/a | | n/a | | 4.75 | % PIK | | 10/14/2022 | | 10/14/2026 | | 25,291 | | | 16,167 |
| | 16,107 |
| 1.9 | % |
| n/a | | n/a | | 4.75 | % PIK | | 10/14/2022 | | 10/14/2026 | | 25,488 | | | 16,364 |
| | 16,321 |
| 1.7 | % |
|
| | | | | | | | | | |
| 25,291 |
| | 16,167 |
| | 16,107 |
| 1.9 | % |
| | | | | | | | | | |
| 25,488 |
| | 16,364 |
| | 16,321 |
| 1.7 | % |
Consumer Goods: Durable |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Jumpstart Holdco, Inc. (~) | | SF | | 5.65 | % | 10.28 | % | | 4/19/2022 | | 4/19/2028 | | 23,383 | | | 22,974 |
| | 21,610 |
| 2.5 | % | | SF | | 5.75 | % | 10.77 | % | | 4/19/2022 | | 4/19/2028 | | 23,324 | | | 22,936 |
| | 21,889 |
| 2.3 | % |
| | | | | | | | | | | | | 23,383 | | | 22,974 | | | 21,610 | | 2.5 | % | | | | | | | | | | | | | 23,324 | | | 22,936 | | | 21,889 | | 2.3 | % |
Environmental Industries |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
StormTrap, LLC (~~~) |
| SF | | 5.00 | % | 9.77 | % | | 3/25/2022 | | 3/24/2028 |
| 7,497 |
| | 7,380 |
| | 7,497 |
| 0.9 | % |
| SF | | 5.00 | % | 10.26 | % | | 3/25/2022 | | 3/24/2028 |
| 7,345 |
| | 7,235 |
| | 7,345 |
| 0.8 | % |
StormTrap, LLC (Delayed Draw) (*) (**) |
| SF | | 5.00 | % | 9.77 | % | | 3/25/2022 | | 3/24/2028 | | 2,222 | | | — |
| | — |
| 0.0 | % |
| SF | | 5.00 | % | 10.26 | % | | 3/25/2022 | | 3/24/2028 | | 2,222 | | | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | | |
| 9,719 |
| | 7,380 |
| | 7,497 |
| 0.9 | % |
| | | | | | | | | | |
| 9,567 |
| | 7,235 |
| | 7,345 |
| 0.8 | % |
Healthcare & Pharmaceuticals |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
|
| | | | | 10.33 | % Cash/ | | | | |
| |
| | |
| | |
| | |
| | | | | 10.58 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Evolve Biologics Inc. (~) (<) |
| SF | | 16.00 | % | 10.33 | % PIK | | 12/20/2022 | | 12/18/2026 |
| 17,620 |
| | 17,291 |
| | 17,532 |
| 2.0 | % |
| SF | | 16.00 | % | 10.58 | % PIK | | 12/20/2022 | | 12/18/2026 |
| 18,093 |
| | 17,774 |
| | 18,003 |
| 1.9 | % |
|
| | | | | 10.33 | % Cash/ | | | | |
| |
| | |
| | |
| | |
| | | | | 10.58 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Evolve Biologics Inc. (Delayed Draw) (<) (*) (**) |
| SF | | 16.00 | % | 10.33 | % PIK | | 12/20/2022 | | 12/18/2026 |
| 19,411 |
| | — |
| | — |
| 0.0 | % |
| SF | | 16.00 | % | 10.58 | % PIK | | 12/20/2022 | | 12/18/2026 |
| 19,410 |
| | — |
| | — |
| 0.0 | % |
|
| | | | | | | | | | | | 37,031 | | | 17,291 |
| | 17,532 |
| 2.0 | % |
| | | | | | | | | | | | 37,503 | | | 17,774 |
| | 18,003 |
| 1.9 | % |
Media: Advertising, Printing & Publishing |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
New Engen, Inc. (~~) (~~~) | | SF | | 5.00 | % | 9.67 | % | | 12/3/2021 | | 12/3/2026 | | 9,405 | | | 9,280 | | | 9,319 | | 1.1 | % | | SF | | 5.11 | % | 10.27 | % | | 12/3/2021 | | 12/3/2026 | | 9,381 | | | 9,264 | | | 9,291 | | 1.0 | % |
New Engen, Inc. (~~) (~~~) |
| SF | | 5.00 | % | 9.67 | % | | 12/27/2021 | | 12/3/2026 |
| 7,942 |
| | 7,942 |
| | 7,870 |
| 0.9 | % |
| SF | | 5.11 | % | 10.27 | % | | 12/27/2021 | | 12/3/2026 |
| 7,922 |
| | 7,922 |
| | 7,846 |
| 0.8 | % |
|
| | | | | | | | | | | | 17,347 | | | 17,222 |
| | 17,189 |
| 2.0 | % |
| | | | | | | | | | | | 17,303 | | | 17,186 |
| | 17,137 |
| 1.8 | % |
Services: Business |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
ASG II, LLC (~~) |
| SF | | 6.25 | % | 11.08 | % | | 5/25/2022 | | 5/25/2028 |
| 15,000 |
| | 14,731 |
| | 15,000 |
| 1.7 | % | ||||||||||||||||||||||
ASG II, LLC (~) |
| SF | | 6.40 | % | 11.45 | % | | 5/25/2022 | | 5/25/2028 |
| 15,000 |
| | 14,742 |
| | 15,000 |
| 1.6 | % | ||||||||||||||||||||||
ASG II, LLC (Delayed Draw) (*) (**) |
| SF | | 6.25 | % | 11.08 | % | | 5/25/2022 | | 5/25/2028 |
| 2,250 |
| | 648 |
| | 648 |
| 0.1 | % |
| SF | | 6.40 | % | 11.45 | % | | 5/25/2022 | | 5/25/2028 |
| 2,250 |
| | 873 |
| | 873 |
| 0.1 | % |
Onit, Inc. (~~) |
| SF | | 7.25 | % | 12.30 | % | | 12/20/2021 | | 5/2/2025 |
| 16,800 |
| | 16,597 |
| | 16,758 |
| 2.0 | % | ||||||||||||||||||||||
Onit, Inc. (~) |
| SF | | 7.50 | % | 12.84 | % | | 12/20/2021 | | 5/2/2025 |
| 16,800 |
| | 16,628 |
| | 16,779 |
| 1.8 | % | ||||||||||||||||||||||
|
| | | | | | | | | | |
| 34,050 |
| | 31,976 |
| | 32,406 |
| 3.8 | % |
| | | | | | | | | | |
| 34,050 |
| | 32,243 |
| | 32,652 |
| 3.5 | % |
Telecommunications |
| | | | | | | | | | |
| |
| | |
| | |
| | |
| | | | | | | | | | |
| |
| | |
| | |
| | |
VB E1, LLC (~) |
| L | | 7.65 | % | 12.81 | % | | 11/18/2020 | | 11/18/2026 | | 3,000 | | | 3,000 |
| | 3,006 |
| 0.3 | % |
| L | | 7.65 | % | 13.19 | % | | 11/18/2020 | | 11/18/2026 | | 3,000 | | | 3,000 |
| | 3,019 |
| 0.3 | % |
|
| | | | | | | | | | | | 3,000 | | | 3,000 |
| | 3,006 |
| 0.3 | % |
| | | | | | | | | | | | 3,000 | | | 3,000 |
| | 3,019 |
| 0.3 | % |
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans |
| | | | | | | | | | | | 163,052 | | | 129,051 |
| | 128,380 |
| 14.9 | % |
| | | | | | | | | | | | 163,433 | | | 129,758 |
| | 129,399 |
| 13.7 | % |
|
| | | | | | | | | | | | | | | |
| | |
| | |
| | | | | | | | | | | | | | | |
| | |
| | |
Junior Secured Loans |
| | | | | | | | | | | | | | | |
| | |
| | |
| | | | | | | | | | | | | | | |
| | |
| | |
Banking |
| | | | | | | | | | | | | | | |
| | |
| | |
| | | | | | | | | | | | | | | |
| | |
| | |
MoneyLion, Inc. (~) (<) |
| SF | | 9.25 | % | 14.26 | % | | 3/25/2022 | | 3/24/2026 | | 18,750 | | | 18,601 |
| | 18,680 |
| 2.2 | % |
| SF | | 9.25 | % | 14.75 | % | | 3/25/2022 | | 3/24/2026 | | 18,750 | | | 18,608 |
| | 18,774 |
| 2.0 | % |
MoneyLion, Inc. (~) (<) |
| P | | 5.75 | % | 13.75 | % | | 8/27/2021 | | 5/1/2023 | | 2,500 | | | 2,485 |
| | 2,500 |
| 0.3 | % |
| P | | 5.75 | % | 14.00 | % | | 8/27/2021 | | 10/16/2023 | | 1,875 | | | 1,864 |
| | 1,877 |
| 0.2 | % |
MoneyLion, Inc. (Delayed Draw) (<) (*) (**) |
| SF | | 9.25 | % | 14.26 | % | | 3/25/2022 | | 3/24/2026 | | 5,357 | | | — |
| | — |
| 0.0 | % | ||||||||||||||||||||||
|
| | | | | | | | | | | | 26,607 | | | 21,086 |
| | 21,180 |
| 2.5 | % |
| | | | | | | | | | | | 20,625 | | | 20,472 |
| | 20,651 |
| 2.2 | % |
FIRE: Real Estate |
| | | | | | | | | | | | | | | |
| | |
| | |
| | | | | | | | | | | | | | | |
| | |
| | |
Florida East Coast Industries, LLC (<) |
| n/a | | n/a | | 16.00 | % PIK | | 8/9/2021 | | 6/28/2024 | | 1,983 | | | 1,961 |
| | 1,983 |
| 0.2 | % |
| n/a | | n/a | | 16.00 | % PIK | | 8/9/2021 | | 6/28/2024 | | 1,788 | | | 1,772 |
| | 1,788 |
| 0.2 | % |
|
| | | | | 8.00 | % Cash/ | | | | | | | | | |
| | |
| | | | | | | | 8.00 | % Cash/ | | | | | | | | | | | | | | | |
Witkoff/Monroe 700 JV LLC (<) | | n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | 7/2/2026 | | 9,449 | | | 9,449 | | | 9,439 | | 1.0 | % | ||||||||||||||||||||||
|
| | | | | 8.00 | % Cash/ | | | | | | | | | |
| | |
| | | ||||||||||||||||||||||
Witkoff/Monroe 700 JV LLC (Delayed Draw) (<) (*) (**) |
| n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | 7/2/2026 | | 9,356 | | | 9,100 |
| | 9,089 |
| 1.1 | % |
| n/a | | n/a | | 4.00 | % PIK | | 5/16/2023 | | 7/2/2026 | | 1,646 | | | 431 |
| | 430 |
| 0.1 | % |
|
| | | | | | | | | | | | 11,339 | | | 11,061 |
| | 11,072 |
| 1.3 | % |
| | | | | | | | | | | | 12,883 | | | 11,652 |
| | 11,657 |
| 1.3 | % |
Services: Consumer |
| | | | | | | | | | | | | | | |
| | |
| | | ||||||||||||||||||||||
Light Wave Dental Management, LLC |
| n/a | | n/a | | n/a | (e) | | 12/6/2022 | | 9/30/2023 | | 2,479 | | | 2,479 |
| | 2,954 |
| 0.3 | % | ||||||||||||||||||||||
Media: Broadcasting & Subscription | | | | | | | | | | | | | | | | | | | | | | | ||||||||||||||||||||||
Vice Group Holding Inc. | | n/a | | n/a | | n/a | (###) | | 5/2/2019 | | n/a | (i) | 1,233 | | | 1,233 | | | 854 | | 0.1 | % | ||||||||||||||||||||||
Vice Group Holding Inc. | | n/a | | n/a | | n/a | (###) | | 5/2/2019 | | n/a | (i) | 388 | | | 388 | | | 269 | | 0.0 | % | ||||||||||||||||||||||
Vice Group Holding Inc. | | n/a | | n/a | | n/a | (###) | | 5/2/2019 | | n/a | (i) | 147 | | | 147 | | | 102 | | 0.0 | % | ||||||||||||||||||||||
Vice Group Holding Inc. | | n/a | | n/a | | n/a | (###) | | 11/4/2019 | | n/a | (i) | 237 | | | 237 | | | 164 | | 0.0 | % | ||||||||||||||||||||||
Vice Group Holding Inc. | | n/a | | n/a | | n/a | (###) | | 1/27/2023 | | n/a | (i) | 370 | | | 370 | | | 256 | | 0.0 | % | ||||||||||||||||||||||
|
| | | | | | | | | | | | 2,479 | | | 2,479 |
| | 2,954 |
| 0.3 | % |
| | | | | | | | | | | | 2,375 | | | 2,375 |
| | 1,645 |
| 0.1 | % |
Total Non-Controlled/Non-Affiliate Junior Secured Loans |
| | | | | | | | | | | | 40,425 | | | 34,626 |
| | 35,206 |
| 4.1 | % |
| | | | | | | | | | | | 35,883 | | | 34,499 |
| | 33,953 |
| 3.6 | % |
14
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Equity Securities (#) (##) |
| |
| |
| | | |
|
| |
| |
| | |
| | |
| |
|
Automotive | | | | | | | | | | | | | | | | | | | | | | |
Born To Run, LLC (692,841 Class A units) |
| — |
| — |
| — | (###) | | 4/1/2021 |
| — |
| — |
| $ | 693 |
| $ | 285 |
| 0.0 | % |
Lifted Trucks Holdings, LLC (158,730 Class A shares) (####) |
| — |
| — |
| — | (###) | | 8/2/2021 |
| — |
| — |
| | 159 |
| | 127 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 852 |
| | 412 |
| 0.0 | % |
Banking |
| | | | | | | | | | | | | | | |
| | |
| | |
MV Receivables II, LLC (1,822 shares of common stock) (<) (####) |
| — |
| — |
| — | (###) |
| 7/29/2021 |
| — |
| — |
| | 750 |
| | 1,049 |
| 0.1 | % |
MV Receivables II, LLC (warrant to purchase up to 1.0% of the equity) (<) (####) |
| — |
| — |
| — | (###) | | 7/28/2021 |
| 7/28/2031 |
| — |
| | 453 |
| | 1,504 |
| 0.2 | % |
|
| | | | | | | | | | | | | | | 1,203 |
| | 2,553 |
| 0.3 | % |
Beverage, Food & Tobacco | | | | | | | | | | | | | | | | | | | | | | |
Sabrosura Foods, LLC et al (171,429 Class A interests) |
| — |
| — |
| — | (###) | | 10/18/2019 |
| — |
| — |
| | 171 |
| | — |
| 0.0 | % |
Sabrosura Foods, LLC et al (7,022 Class AA units) |
| — |
| — |
| — | (###) | | 11/22/2022 |
| — |
| — |
| | 10 |
| | 4 |
| 0.0 | % |
Sabrosura Foods, LLC et al (8,322 Class AAA units) |
| — |
| — |
| — | (###) | | 3/17/2023 |
| — |
| — |
| | 8 |
| | 5 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 189 |
| | 9 |
| 0.0 | % |
Capital Equipment |
| |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Adept AG Holdings, LLC (314,584 preferred units) (####) |
| — |
| — |
| — | (###) | | 8/11/2022 |
| — |
| — |
| | 650 |
| | 495 |
| 0.1 | % |
MCP Shaw Acquisitionco, LLC (95,125 Class A-2 units) (####) |
| — | | — | | — | (###) | | 2/28/2020 | | — | | — | | | 95 |
| | 268 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 745 |
| | 763 |
| 0.1 | % |
Consumer Goods: Durable |
| |
| |
| | | | | | |
| |
| | |
| | |
| | |
Independence Buyer, Inc. (169 Class A units) |
| — |
| — |
| — | (###) | | 8/3/2021 | | — |
| — |
| | 169 |
| | 195 |
| 0.0 | % |
Jumpstart Holdco, Inc. (1,566,667 Class A units) |
| — | | — | | — | (###) | | 4/19/2022 | | — | | — | | | 1,566 |
| | 775 |
| 0.1 | % |
|
| |
| |
| | | | |
| |
| |
| | 1,735 |
| | 970 |
| 0.1 | % |
Energy: Oil & Gas |
| |
| |
| | | | | | |
| |
| | |
| | |
| | |
QuarterNorth Energy Inc. (4,376 shares of common stock) (~) |
| — |
| — |
| — | (###) | | 1/11/2020 | | — |
| — |
| | 857 |
| | 608 |
| 0.1 | % |
|
| |
| |
| | | | | | |
| |
| | 857 |
| | 608 |
| 0.1 | % |
Environmental Industries |
| | | | | | | | | | | | | | | |
| | |
| | |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — |
| — | (###) | | 10/19/2020 |
| 3/19/2028 |
| — |
| | 67 |
| | 210 |
| 0.0 | % |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — |
| — | (###) | | 10/19/2021 |
| 3/19/2028 |
| — |
| | — |
| | 147 |
| 0.0 | % |
StormTrap, LLC (640,000 Class A preferred units) (####) |
| n/a | | n/a | | 8.00 | % PIK | | 3/25/2022 | | — | | — | | | 640 |
| | 640 |
| 0.1 | % |
StormTrap, LLC (640,000 Class A common units) (####) |
| — |
| — |
| — | (###) | | 3/25/2022 |
| — |
| — |
| | — |
| | 165 |
| 0.0 | % |
Volt Bidco, Inc. (878 shares of common stock) |
| — |
| — |
| — | (###) | | 8/11/2021 |
| — |
| — |
| | 891 |
| | 1,090 |
| 0.2 | % |
|
| |
| |
| | | | |
| |
| |
| | 1,598 |
| | 2,252 |
| 0.3 | % |
FIRE: Finance |
| |
| |
| | | | |
| |
| |
| | |
| | |
| | |
J2 BWA Funding LLC (0.7% profit sharing) (<) (####) |
| — |
| — |
| — | (###) | | 12/24/2020 |
| — |
| — |
| | — |
| | 23 |
| 0.0 | % |
J2 BWA Funding III, LLC (commitment to purchase up to 3.8% of the equity) (<) (####) (f) |
| — | | — | | — | (###) | | 4/29/2022 | | — | | — | | | — |
| | — |
| 0.0 | % |
J2 BWA Funding III, LLC (commitment to purchase up to 1.2% of the equity) (<) (####) (f) |
| — |
| — |
| — | (###) | | 4/29/2022 |
| — |
| — |
| | 181 |
| | 181 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 181 |
| | 204 |
| 0.0 | % |
FIRE: Real Estate |
| | | | | | | | | | | | | | | |
| | |
| | |
InsideRE, LLC (284,853 Class A common units) (####) |
| — |
| — |
| — | (###) | | 9/9/2019 |
| — |
| — |
| | 420 |
| | 658 |
| 0.1 | % |
Lessen Inc. (128,737 preferred units) |
| — |
| — |
| — | (###) | | 1/5/2023 |
| — |
| — |
| | 1,667 |
| | 1,667 |
| 0.2 | % |
Witkoff/Monroe 700 JV LLC (2,992 preferred | | | | | | 8.00 | % Cash/ | | | | | | | | | | | | | | | |
units) (<) (####) |
| n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | — | | — | | | 3 |
| | 2,262 |
| 0.2 | % |
| | | | | | | | | | | |
| |
| | 2,090 |
| | 4,587 |
| 0.5 | % |
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC (725,806 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 2/5/2020 | | — | | — | | | 726 | | | 677 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-1 units) | | — | | — | | — | (###) | | 6/30/2021 | | — | | — | | | 578 | | | 601 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-2 units) | | — | | — | | — | (###) | | 6/30/2021 | | — | | — | | | — | | | 843 | | 0.1 | % |
Evolve Biologics Inc. (0.1% of equity commitments) (<) (g) | | — | | — | | — | (###) | | 12/20/2022 | | — | | — | | | — | | | — | | 0.0 | % |
Evolve Biologics Inc. (warrant to purchase up to 1.5% of the equity) (<) | | — | | — | | — | (###) | | 12/20/2022 | | 12/20/2032 | | — | | | — | | | 191 | | 0.0 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (0.3% of the equity) | | — | | — | | — | (###) | | 1/31/2023 | | — | | — | | | 981 | | | 981 | | 0.1 | % |
NationsBenefits, LLC (356,658 Series B units) (####) | | n/a | | n/a | | 5.00 | % PIK | | 8/20/2021 | | — | | — | | | 2,393 | | | 2,824 | | 0.3 | % |
NationsBenefits, LLC (326,667 common units) (####) | | — | | — | | — | (###) | | 8/20/2021 | | — | | — | | | 468 | | | 177 | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (1,364,614 common units) | | — | | — | | — | (###) | | 10/4/2022 | | — | | — | | | 1,365 | | | 1,451 | | 0.2 | % |
Seran BioScience, LLC (26,666 common units) (####) | | — | | — | | — | (###) | | 12/31/2020 | | — | | — | | | 267 | | | 471 | | 0.1 | % |
| | | | | | | | | | | | | | | | 6,778 | | | 8,216 | | 1.0 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Equity Securities (#) (##) |
| |
| |
| | | |
|
| |
| |
| | |
| | |
| |
|
Automotive | | | | | | | | | | | | | | | | | | | | | | |
Born To Run, LLC (692,841 Class A units) |
| — |
| — |
| — | (###) | | 4/1/2021 |
| — |
| — |
| $ | 693 |
| $ | 141 |
| 0.0 | % |
Lifted Trucks Holdings, LLC (158,730 Class A shares) (####) |
| — |
| — |
| — | (###) | | 8/2/2021 |
| — |
| — |
| | 159 |
| | 131 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 852 |
| | 272 |
| 0.0 | % |
Banking |
| | | | | | | | | | | | | | | |
| | |
| | |
MV Receivables II, LLC (1,822 shares of common stock) (<) (####) |
| — |
| — |
| — | (###) |
| 7/29/2021 |
| — |
| — |
| | 750 |
| | — |
| 0.0 | % |
MV Receivables II, LLC (warrant to purchase up to 1.0% of the equity) (<) (####) |
| — |
| — |
| — | (###) | | 7/28/2021 |
| 7/28/2031 |
| — |
| | 453 |
| | — |
| 0.0 | % |
|
| | | | | | | | | | | | | | | 1,203 |
| | — |
| 0.0 | % |
Beverage, Food & Tobacco | | | | | | | | | | | | | | | | | | | | | | |
Sabrosura Foods, LLC et al (171,429 Class A interests) |
| — |
| — |
| — | (###) | | 10/18/2019 |
| — |
| — |
| | 171 |
| | — |
| 0.0 | % |
Sabrosura Foods, LLC et al (7,022 Class AA units) |
| — |
| — |
| — | (###) | | 11/22/2022 |
| — |
| — |
| | 10 |
| | — |
| 0.0 | % |
Sabrosura Foods, LLC et al (8,322 Class AAA units) |
| — |
| — |
| — | (###) | | 3/17/2023 |
| — |
| — |
| | 8 |
| | — |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 189 |
| | — |
| 0.0 | % |
Capital Equipment |
| |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Adept AG Holdings, LLC (314,584 preferred units) (####) |
| — |
| — |
| — | (###) | | 8/11/2022 |
| — |
| — |
| | 650 |
| | 307 |
| 0.0 | % |
MCP Shaw Acquisitionco, LLC (95,125 Class A-2 units) (####) |
| — | | — | | — | (###) | | 2/28/2020 | | — | | — | | | 95 |
| | 311 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 745 |
| | 618 |
| 0.0 | % |
Construction & Building | | | | | | | | | | | | | | | | | | | | | | |
MEI Buyer LLC (1,982 units) | | — | | — | | — | (###) | | 6/29/2023 | | — | | — | | | 1,982 | | | 1,982 | | 0.2 | % |
| | | | | | | | | | | | | | | | 1,982 | | | 1,982 | | 0.2 | % |
Consumer Goods: Durable |
| |
| |
| | | | | | |
| |
| | |
| | |
| | |
Independence Buyer, Inc. (169 Class A units) |
| — |
| — |
| — | (###) | | 8/3/2021 | | — |
| — |
| | 169 |
| | 165 |
| 0.0 | % |
Jumpstart Holdco, Inc. (1,566,667 Class A units) |
| — | | — | | — | (###) | | 4/19/2022 | | — | | — | | | 1,566 |
| | 852 |
| 0.1 | % |
|
| |
| |
| | | | |
| |
| |
| | 1,735 |
| | 1,017 |
| 0.1 | % |
Energy: Oil & Gas |
| |
| |
| | | | | | |
| |
| | |
| | |
| | |
QuarterNorth Energy Inc. (4,376 shares of common stock) (~) |
| — |
| — |
| — | (###) | | 1/11/2020 | | — |
| — |
| | 748 |
| | 492 |
| 0.1 | % |
|
| |
| |
| | | | | | |
| |
| | 748 |
| | 492 |
| 0.1 | % |
Environmental Industries |
| | | | | | | | | | | | | | | |
| | |
| | |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — |
| — | (###) | | 10/19/2020 |
| 3/19/2028 |
| — |
| | 67 |
| | 211 |
| 0.0 | % |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — |
| — | (###) | | 10/19/2021 |
| 3/19/2028 |
| — |
| | — |
| | 148 |
| 0.0 | % |
StormTrap, LLC (640,000 Class A preferred units) (####) |
| n/a | | n/a | | 8.00 | % PIK | | 3/25/2022 | | — | | — | | | 640 |
| | 640 |
| 0.1 | % |
StormTrap, LLC (640,000 Class A common units) (####) |
| — |
| — |
| — | (###) | | 3/25/2022 |
| — |
| — |
| | — |
| | 161 |
| 0.0 | % |
Volt Bidco, Inc. (878 shares of common stock) |
| — |
| — |
| — | (###) | | 8/11/2021 |
| — |
| — |
| | 891 |
| | 1,205 |
| 0.1 | % |
|
| |
| |
| | | | |
| |
| |
| | 1,598 |
| | 2,365 |
| 0.2 | % |
FIRE: Finance |
| |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Bench Walk Lead, LLC (3.2% of the equity) (<) (####) | | — |
| — |
| — | (###) | | 6/12/2023 | | — | | — | | | 1,600 | | | 1,600 | | 0.2 | % |
J2 BWA Funding LLC (0.7% profit sharing) (<) (####) |
| — |
| — |
| — | (###) | | 12/24/2020 |
| — |
| — |
| | — |
| | 22 |
| 0.0 | % |
J2 BWA Funding III, LLC (commitment to purchase up to 3.8% of the equity) (<) (####) (e) |
| — | | — | | — | (###) | | 4/29/2022 | | — | | — | | | — |
| | — |
| 0.0 | % |
J2 BWA Funding III, LLC (commitment to purchase up to 1.2% of the equity) (<) (####) (e) |
| — |
| — |
| — | (###) | | 4/29/2022 |
| — |
| — |
| | 422 |
| | 422 |
| 0.0 | % |
|
| |
| |
| | | | |
| |
| |
| | 2,022 |
| | 2,044 |
| 0.2 | % |
FIRE: Real Estate |
| | | | | | | | | | | | | | | |
| | |
| | |
InsideRE, LLC (284,853 Class A common units) (####) |
| — |
| — |
| — | (###) | | 9/9/2019 |
| — |
| — |
| | 420 |
| | 667 |
| 0.1 | % |
Lessen Inc. (128,737 preferred units) |
| — |
| — |
| — | (###) | | 1/5/2023 |
| — |
| — |
| | 1,667 |
| | 1,835 |
| 0.2 | % |
| | | | | | 8.00 | % Cash/ | | | | | | | | | | | | | | | |
Witkoff/Monroe 700 JV LLC (2,992 preferred units) (<) (####) |
| n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | — | | — | | | 3 |
| | 2,325 |
| 0.2 | % |
| | | | | | | | | | | |
| |
| | 2,090 |
| | 4,827 |
| 0.5 | % |
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC (725,806 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 2/5/2020 | | — | | — | | | 726 | | | 688 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-1 units) | | — | | — | | — | (###) | | 6/30/2021 | | — | | — | | | 578 | | | 584 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-2 units) | | — | | — | | — | (###) | | 6/30/2021 | | — | | — | | | — | | | 853 | | 0.1 | % |
Evolve Biologics Inc. (0.1% of equity commitments) (<) | | — | | — | | — | (###) | | 12/20/2022 | | — | | — | | | — | | | — | | 0.0 | % |
Evolve Biologics Inc. (warrant to purchase up to 1.5% of the equity) (<) | | — | | — | | — | (###) | | 12/20/2022 | | 12/20/2032 | | — | | | — | | | 182 | | 0.0 | % |
KL Moon Acquisition, LLC (fka Spectrum Science Communications, LLC) (0.3% of the equity) | | — | | — | | — | (###) | | 1/31/2023 | | — | | — | | | 981 | | | 1,089 | | 0.1 | % |
NationsBenefits, LLC (356,658 Series B units) (####) | | n/a | | n/a | | 5.00 | % PIK | | 8/20/2021 | | — | | — | | | 2,393 | | | 2,178 | | 0.2 | % |
NationsBenefits, LLC (326,667 common units) (####) | | — | | — | | — | (###) | | 8/20/2021 | | — | | — | | | 468 | | | — | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (1,364,614 common units) | | — | | — | | — | (###) | | 10/4/2022 | | — | | — | | | 1,365 | | | 1,519 | | 0.2 | % |
Seran BioScience, LLC (26,666 common units) (####) | | — | | — | | — | (###) | | 12/31/2020 | | — | | — | | | 267 | | | 587 | | 0.1 | % |
| | | | | | | | | | | | | | | | 6,778 | | | 7,680 | | 0.9 | % |
15
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
High Tech Industries | | | | | | | | | |
| |
|
|
| | |
| | |
| | |
Amelia Holding II, LLC (warrant to purchase up to 0.1% of the equity) | | — | | — | | — | (###) | | 12/21/2022 |
| 12/21/2032 |
| — |
| $ | — |
| $ | 126 |
| 0.0 | % |
Drawbridge Partners, LLC (652,174 Class A-1 units) | | — | | — | | — | (###) | | 9/1/2022 |
| — |
| — |
| | 652 |
| | 649 |
| 0.1 | % |
Optomi, LLC (278 Class A units) (####) | | — | | — | | — | (###) | | 12/16/2021 | | — | | — |
| | 278 |
| | 554 |
| 0.1 | % |
Recorded Future, Inc. (40,243 Class A units) (h) | | — | | — | | — | (###) | | 7/3/2019 |
| — |
| — |
| | 40 |
| | 126 |
| 0.0 | % |
Unanet, Inc. (1,621,053 shares of common stock) | | — | | — | | — | (###) | | 12/5/2022 |
| — |
| — |
| | 1,622 |
| | 1,637 |
| 0.2 | % |
| | | | | | | | | |
| |
| |
| | 2,592 |
| | 3,092 |
| 0.4 | % |
Hotels, Gaming & Leisure | | | | | | | | | |
| |
| |
| | |
| | |
| | |
Equine Network, LLC (92 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2020 |
| — |
| — |
| | 95 |
| | 85 |
| 0.0 | % |
| | | | | | | | | |
| |
| |
| | 95 |
| | 85 |
| 0.0 | % |
Media: Advertising, Printing & Publishing | | | | | | | | | |
| |
| |
| | |
| | |
| | |
95 Percent Buyer, LLC (385,027 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 11/24/2021 |
| — |
| — |
| | 385 |
| | 540 |
| 0.1 | % |
Calienger Holdings, L.L.C. (568,181 Class A units) (####) | | — | | — | | — | (###) | | 10/21/2022 |
| — | | — |
| | 568 |
| | 614 |
| 0.1 | % |
New Engen, Inc. (417 preferred units) | | n/a | | n/a | | 8.00 | % PIK | | 12/27/2021 |
| — | | — |
| | 417 |
| | 388 |
| 0.1 | % |
New Engen, Inc. (5,067 Class B common units) | | — | | — | | — | (###) | | 12/27/2021 |
| — | | — |
| | 5 |
| | — |
| 0.0 | % |
Really Great Reading Company, Inc. (369 Series A units) | | — | | — | | — | (###) | | 12/9/2022 |
| — | | — |
| | 369 |
| | 386 |
| 0.0 | % |
Relevate Health Group, LLC (96 preferred units) | | n/a | | n/a | | 12.00 | % PIK | | 11/20/2020 |
| — | | — |
| | 96 |
| | 77 |
| 0.0 | % |
Relevate Health Group, LLC (96 Class B common units) | | — | | — | | — | (###) | | 11/20/2020 | | — | | — |
| | — |
| | — |
| 0.0 | % |
Spherix Global Inc. (333 Class A units) | | — | | — | | — | (###) | | 12/22/2021 |
| — | | — |
| | 333 |
| | 189 |
| 0.0 | % |
XanEdu Publishing, Inc. (65,104 Class A units) | | n/a | | n/a | | 8.00 | % PIK | | 1/28/2020 |
| — | | — |
| | 65 |
| | 314 |
| 0.0 | % |
| | | | | | | | | |
| | | |
| | 2,238 |
| | 2,508 |
| 0.3 | % |
Media: Diversified & Production | | | | | | | | | | | | | |
| | |
| | |
| | |
Chess.com, LLC (5 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2021 |
| — | | — |
| | 189 |
| | 107 |
| 0.0 | % |
| | | | | | | | | | | | | | | | 189 | | | 107 | | 0.0 | % |
Services: Business | | | | | | | | | |
| | | |
| | |
| | |
| | |
Argano, LLC (59,540 common units) (####) | | — | | — | | — | (###) | | 6/10/2021 | | — | | — | | | 290 | | | 545 | | 0.0 | % |
ecMarket Inc. and Conexiom US Inc. (96,603 preferred shares) (<) (b) | | — | | — | | — | (###) | | 9/21/2021 | | — | | — |
| | 723 |
| | 728 |
| 0.1 | % |
Edustaff, LLC (591 shares of common stock) (####) | | — | | — | | — | (###) | | 12/8/2022 |
| — | | — |
| | 591 |
| | 596 |
| 0.1 | % |
Skillsoft Corp. (26,168 Class A shares) (~) (<) (i) | | — | | — | | — | (###) | | 6/11/2021 |
| — | | — |
| | 508 |
| | 52 |
| 0.0 | % |
| | | | | | | | | |
| | | |
| | 2,112 |
| | 1,921 |
| 0.2 | % |
Services: Consumer | | | | | | | | | | | | | |
| | |
| | |
| | |
Express Wash Acquisition Company, LLC (135,869 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 12/28/2020 |
| — | | — |
| | 140 |
| | 117 |
| 0.0 | % |
IDIG Parent, LLC (192,908 shares of common stock) (####) (j) | | — | | — | | — | (###) | | 1/4/2021 |
| — | | — |
| | 195 |
| | 235 |
| 0.1 | % |
| | | | | | | | | | | | | |
| | 335 |
| | 352 |
| 0.1 | % |
Telecommunications | | | | | | | | | | | | | |
| | |
| | |
| | |
American Broadband and Telecommunications Company LLC (warrant to purchase up to 0.4% of the equity) | | — | | — | | — | (###) | | 6/10/2022 | | 6/10/2032 | | — | | | 84 | | | 130 | | 0.0 | % |
| | | | | | | | | |
| |
| |
| | 84 |
| | 130 |
| 0.0 | % |
Transportation: Cargo | | | | | | | | | |
| |
| |
| | |
| | |
| | |
RS Acquisition, LLC (753,485 common units) (####) | | — | | — | | — | (###) | | 1/12/2022 |
| — |
| — |
| | 1,264 |
| | 1,162 |
| 0.1 | % |
| | | | | | | | | | | | | |
| | 1,264 |
| | 1,162 |
| 0.1 | % |
Wholesale | | | | | | | | | |
| |
| |
| | |
| | |
| | |
IF & P Holdings Company, LLC (1,500 Class A preferred units) | | — | | — | | — | (###) | | 10/3/2022 |
| — |
| — |
| | — |
| | 1,572 |
| 0.2 | % |
IF & P Holdings Company, LLC (1,500 Class B common units) | | — | | — | | — | (###) | | 10/3/2022 |
| — |
| — |
| | 1,500 |
| | 116 |
| 0.0 | % |
| | | | | | | | | | | | | |
| | 1,500 |
| | 1,688 |
| 0.2 | % |
Total Non-Controlled/Non-Affiliate Equity Securities | | | | | | | | | | | | | |
| | 26,637 |
| | 31,619 |
| 3.7 | % |
Total Non-Controlled/Non-Affiliate Company Investments | | | | | | | | | | | | | | | $ | 1,494,677 | | $ | 1,502,021 | | 174.9 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
High Tech Industries | | | | | | | | | |
| |
|
|
| | |
| | |
| | |
Amelia Holding II, LLC (warrant to purchase up to 0.1% of the equity) | | — | | — | | — | (###) | | 12/21/2022 |
| 12/21/2032 |
| — |
| $ | — |
| $ | 142 |
| 0.0 | % |
ClearlyRated Capital, LLC (5,500,000 Class A units) (####) | | — | | — | | — | (###) | | 6/1/2023 | | — | | — | | | 5,500 | | | 5,500 | | 0.6 | % |
Drawbridge Partners, LLC (652,174 Class A-1 units) | | — | | — | | — | (###) | | 9/1/2022 |
| — |
| — |
| | 652 |
| | 615 |
| 0.1 | % |
Optomi, LLC (278 Class A units) (####) | | — | | — | | — | (###) | | 12/16/2021 | | — | | — |
| | 278 |
| | 429 |
| 0.0 | % |
Recorded Future, Inc. (40,243 Class A units) (f) | | — | | — | | — | (###) | | 7/3/2019 |
| — |
| — |
| | 40 |
| | 134 |
| 0.0 | % |
Sparq Holdings, Inc. (600,000 common units) | | — | | — | | — | (###) | | 6/15/2023 | | — | | — | | | 600 | | | 600 | | 0.1 | % |
Unanet, Inc. (1,621,053 shares of common stock) | | — | | — | | — | (###) | | 12/5/2022 |
| — |
| — |
| | 1,622 |
| | 1,965 |
| 0.2 | % |
| | | | | | | | | |
| |
| |
| | 8,692 |
| | 9,385 |
| 1.0 | % |
Hotels, Gaming & Leisure | | | | | | | | | |
| |
| |
| | |
| | |
| | |
Equine Network, LLC (92 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2020 |
| — |
| — |
| | 95 |
| | 62 |
| 0.0 | % |
| | | | | | | | | |
| |
| |
| | 95 |
| | 62 |
| 0.0 | % |
Media: Advertising, Printing & Publishing | | | | | | | | | |
| |
| |
| | |
| | |
| | |
95 Percent Buyer, LLC (385,027 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 11/24/2021 |
| — |
| — |
| | 385 |
| | 469 |
| 0.1 | % |
Calienger Holdings, L.L.C. (568,181 Class A units) (####) | | — | | — | | — | (###) | | 10/21/2022 |
| — | | — |
| | 568 |
| | 568 |
| 0.1 | % |
New Engen, Inc. (417 preferred units) | | n/a | | n/a | | 8.00 | % PIK | | 12/27/2021 |
| — | | — |
| | 417 |
| | 358 |
| 0.0 | % |
New Engen, Inc. (5,067 Class B common units) | | — | | — | | — | (###) | | 12/27/2021 |
| — | | — |
| | 5 |
| | — |
| 0.0 | % |
Really Great Reading Company, Inc. (369 Series A units) | | — | | — | | — | (###) | | 12/9/2022 |
| — | | — |
| | 369 |
| | 375 |
| 0.1 | % |
Relevate Health Group, LLC (96 preferred units) | | n/a | | n/a | | 12.00 | % PIK | | 11/20/2020 |
| — | | — |
| | 96 |
| | 87 |
| 0.0 | % |
Relevate Health Group, LLC (96 Class B common units) | | — | | — | | — | (###) | | 11/20/2020 | | — | | — |
| | — |
| | — |
| 0.0 | % |
Spherix Global Inc. (333 Class A units) | | — | | — | | — | (###) | | 12/22/2021 |
| — | | — |
| | 333 |
| | 220 |
| 0.0 | % |
XanEdu Publishing, Inc. (65,104 Class A units) | | n/a | | n/a | | 8.00 | % PIK | | 1/28/2020 |
| — | | — |
| | 65 |
| | 284 |
| 0.0 | % |
| | | | | | | | | |
| | | |
| | 2,238 |
| | 2,361 |
| 0.3 | % |
Media: Diversified & Production | | | | | | | | | | | | | |
| | |
| | |
| | |
Chess.com, LLC (5 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2021 |
| — | | — |
| | 189 |
| | 107 |
| 0.0 | % |
| | | | | | | | | | | | | | | | 189 | | | 107 | | 0.0 | % |
Services: Business | | | | | | | | | |
| | | |
| | |
| | |
| | |
Argano, LLC (62,574 common units) (####) | | — | | — | | — | (###) | | 6/10/2021 | | — | | — | | | 317 | | | 626 | | 0.0 | % |
ecMarket Inc. and Conexiom US Inc. (96,603 preferred shares) (<) (b) | | — | | — | | — | (###) | | 9/21/2021 | | — | | — |
| | 723 |
| | 745 |
| 0.1 | % |
Edustaff, LLC (591 shares of common stock) (####) | | — | | — | | — | (###) | | 12/8/2022 |
| — | | — |
| | 591 |
| | 735 |
| 0.1 | % |
Skillsoft Corp. (26,168 Class A shares) (~) (<) (g) | | — | | — | | — | (###) | | 6/11/2021 |
| — | | — |
| | 508 |
| | 32 |
| 0.0 | % |
| | | | | | | | | |
| | | |
| | 2,139 |
| | 2,138 |
| 0.2 | % |
Services: Consumer | | | | | | | | | | | | | |
| | |
| | |
| | |
Express Wash Acquisition Company, LLC (135,869 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 12/28/2020 |
| — | | — |
| | 140 |
| | 119 |
| 0.0 | % |
IDIG Parent, LLC (192,908 shares of common stock) (####) (h) | | — | | — | | — | (###) | | 1/4/2021 |
| — | | — |
| | 196 |
| | 230 |
| 0.0 | % |
Light Wave Dental Management, LLC (300,218 Class A units) (####) | | — | | — | | — | (###) | | 6/30/2023 | | — | | — | | | 3,002 | | | 3,002 | | 0.4 | % |
| | | | | | | | | | | | | |
| | 3,338 |
| | 3,351 |
| 0.4 | % |
Telecommunications | | | | | | | | | | | | | |
| | |
| | |
| | |
American Broadband and Telecommunications Company LLC (warrant to purchase up to 0.4% of the equity) | | — | | — | | — | (###) | | 6/10/2022 | | 6/10/2032 | | — | | | 84 | | | 108 | | 0.0 | % |
| | | | | | | | | |
| |
| |
| | 84 |
| | 108 |
| 0.0 | % |
Transportation: Cargo | | | | | | | | | |
| |
| |
| | |
| | |
| | |
RS Acquisition, LLC (838,077 common units) (####) | | — | | — | | — | (###) | | 1/12/2022 |
| — |
| — |
| | 1,439 |
| | 1,370 |
| 0.1 | % |
| | | | | | | | | | | | | |
| | 1,439 |
| | 1,370 |
| 0.1 | % |
Wholesale | | | | | | | | | |
| |
| |
| | |
| | |
| | |
IF & P Holdings Company, LLC (1,500 Class A preferred units) | | — | | — | | — | (###) | | 10/3/2022 |
| — |
| — |
| | — |
| | 1,610 |
| 0.2 | % |
IF & P Holdings Company, LLC (1,500 Class B common units) | | — | | — | | — | (###) | | 10/3/2022 |
| — |
| — |
| | 1,500 |
| | 164 |
| 0.0 | % |
| | | | | | | | | | | | | |
| | 1,500 |
| | 1,774 |
| 0.2 | % |
Total Non-Controlled/Non-Affiliate Equity Securities | | | | | | | | | | | | | |
| | 39,656 |
| | 41,953 |
| 4.4 | % |
Total Non-Controlled/Non-Affiliate Company Investments | | | | | | | | | | | | | | | $ | 1,717,008 | | $ | 1,721,423 | | 182.3 | % |
16
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Non-Controlled Affiliate Company Investments (#####) | | |
| |
| | | | |
| |
| |
| | |
| | |
| |
|
Senior Secured Loans | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
FIRE: Real Estate | | |
| |
| | | | |
| |
| |
| | | | | |
| | |
Second Avenue SFR Holdings II LLC (Revolver) (<) (*) | | L | | 7.00 | % | 11.66 | % | | 8/11/2021 | | 8/9/2024 | | 4,875 | | $ | 4,785 |
| $ | 4,743 |
| 0.6 | % |
| | |
| |
| | | | |
| |
| 4,875 |
| | 4,785 |
| | 4,743 |
| 0.6 | % |
Services: Business | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Nastel Technologies, LLC (~~) | | SF |
| 6.50 | % | 11.28 | % | | 9/21/2022 |
| 9/21/2027 |
| 3,500 |
| | 3,436 |
| | 3,500 |
| 0.4 | % |
Nastel Technologies, LLC (Revolver) (*) | | SF |
| 6.50 | % | 11.28 | % | | 9/21/2022 |
| 9/21/2027 |
| 368 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 3,868 | | | 3,436 |
| | 3,500 |
| 0.4 | % |
Transportation: Cargo | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
SheerTrans Solutions, LLC (~) | | SF |
| 7.50 | % | 12.42 | % | | 7/29/2022 |
| 7/29/2027 |
| 5,089 |
| | 4,998 |
| | 5,089 |
| 0.6 | % |
SheerTrans Solutions, LLC (Revolver) (*) | | SF |
| 7.50 | % | 12.42 | % | | 7/29/2022 |
| 7/29/2027 |
| 1,465 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 6,554 | | | 4,998 |
| | 5,089 |
| 0.6 | % |
Total Non-Controlled/Affiliate Senior Secured Loans | | |
| |
| | | | |
| |
| 15,297 |
| | 13,219 |
| | 13,332 |
| 1.6 | % |
| | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Junior Secured Loans | | | | | | | | | | | | | | | | |
| | |
| | |
FIRE: Real Estate | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
SFR Holdco, LLC (<) | | n/a |
| n/a |
| 8.00 | % | | 8/6/2021 |
| 7/28/2028 |
| 5,850 |
| | 5,850 |
| | 5,850 |
| 0.7 | % |
SFR Holdco, LLC (Delayed Draw) (<) (*) (**) | | n/a | | n/a | | 8.00 | % | | 3/1/2022 | | 7/28/2028 | | 4,388 | | | 3,577 |
| | 3,577 |
| 0.4 | % |
| | |
| |
| | | | |
| |
| 10,238 |
| | 9,427 |
| | 9,427 |
| 1.1 | % |
Total Non-Controlled/Affiliate Junior Secured Loans | | |
| |
| | | | |
| |
| 10,238 |
| | 9,427 |
| | 9,427 |
| 1.1 | % |
| | | | | | | | | | | | | | | | |
| | |
| | |
Equity Securities (##) (#####) | | | | | | | | | | | |
| |
| | |
| | |
| | |
FIRE: Real Estate | | | | | | | | | | | |
| |
| | |
| | |
| | |
SFR Holdco, LLC (13.9% of equity commitments) (<) | | — | | — | | — | (###) | | 8/6/2021 | | 7/28/2028 | | — | | | 3,900 | | | 3,900 | | 0.4 | % |
SFR Holdco, LLC (10.5% of equity commitments) (<) (k) | | — |
| — |
| — | (###) | | 3/1/2022 |
| 7/28/2028 |
| — |
| | 2,386 |
| | 2,386 |
| 0.3 | % |
| | |
| |
| | | | |
| |
| |
| | 6,286 |
| | 6,286 |
| 0.7 | % |
Services: Business | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Nastel Technologies, LLC (3,408 Class A units) (####) | | — |
| — |
| — | (###) | | 9/21/2022 |
| — |
| — |
| | 3,408 |
| | 4,115 |
| 0.5 | % |
| | | | | | | | | | | |
| |
| | 3,408 |
| | 4,115 |
| 0.5 | % |
Transportation: Cargo | | | | | | | | | | | |
| |
| | |
| | |
| | |
SheerTrans Solutions, LLC (8,642,579 preferred interests) (####) | | — | | — | | — | (###) | | 7/29/2022 | | — | | — | | | 8,643 | | | 8,729 | | 1.0 | % |
| | | | | | | | | | | | | | | | 8,643 |
| | 8,729 |
| 1.0 | % |
Total Non-Controlled/Affiliate Equity Securities | | | | | | | | | | | | | | | | 18,337 | | | 19,130 | | 2.2 | % |
Total Non-Controlled/Affiliate Company Investments | | | | | | | | | | | | | | | $ | 40,983 | | $ | 41,889 | | 4.9 | % |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS | | | | | | | | | | | | | | | $ | 1,535,660 | | $ | 1,543,910 | | 179.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | | % of |
| ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Non-Controlled Affiliate Company Investments (#####) | | |
| |
| | | | |
| |
| |
| | |
| | |
| |
|
Senior Secured Loans | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
FIRE: Real Estate | | |
| |
| | | | |
| |
| |
| | | | | |
| | |
Second Avenue SFR Holdings II LLC (Revolver) (<) (*) | | L | | 7.00 | % | 12.17 | % | | 8/11/2021 | | 8/9/2024 | | 4,875 | | $ | 4,785 |
| $ | 4,761 |
| 0.5 | % |
| | |
| |
| | | | |
| |
| 4,875 |
| | 4,785 |
| | 4,761 |
| 0.5 | % |
Services: Business | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Nastel Technologies, LLC (~~) | | SF |
| 6.61 | % | 11.77 | % | | 9/21/2022 |
| 9/21/2027 |
| 3,500 |
| | 3,438 |
| | 3,500 |
| 0.4 | % |
Nastel Technologies, LLC (Revolver) (*) | | SF |
| 6.61 | % | 11.77 | % | | 9/21/2022 |
| 9/21/2027 |
| 368 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 3,868 | | | 3,438 |
| | 3,500 |
| 0.4 | % |
Transportation: Cargo | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
SheerTrans Solutions, LLC (~) | | SF |
| 7.61 | % | 12.72 | % | | 7/29/2022 |
| 7/29/2027 |
| 5,076 |
| | 4,989 |
| | 5,057 |
| 0.5 | % |
SheerTrans Solutions, LLC (Revolver) (*) | | SF |
| 7.61 | % | 12.72 | % | | 7/29/2022 |
| 7/29/2027 |
| 1,465 |
| | — |
| | — |
| 0.0 | % |
| | | | | | | | | | | | | 6,541 | | | 4,989 |
| | 5,057 |
| 0.5 | % |
Total Non-Controlled/Affiliate Senior Secured Loans | | |
| |
| | | | |
| |
| 15,284 |
| | 13,212 |
| | 13,318 |
| 1.4 | % |
| | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Junior Secured Loans | | | | | | | | | | | | | | | | |
| | |
| | |
FIRE: Real Estate | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
SFR Holdco, LLC (<) | | n/a |
| n/a |
| 8.00 | % | | 8/6/2021 |
| 7/28/2028 |
| 5,850 |
| | 5,850 |
| | 5,850 |
| 0.6 | % |
SFR Holdco, LLC (<) | | n/a | | n/a | | 8.00 | % | | 3/1/2022 | | 7/28/2028 | | 4,388 | | | 4,387 |
| | 4,387 |
| 0.5 | % |
| | |
| |
| | | | |
| |
| 10,238 |
| | 10,237 |
| | 10,237 |
| 1.1 | % |
Total Non-Controlled/Affiliate Junior Secured Loans | | |
| |
| | | | |
| |
| 10,238 |
| | 10,237 |
| | 10,237 |
| 1.1 | % |
| | | | | | | | | | | | | | | | |
| | |
| | |
Equity Securities (##) (#####) | | | | | | | | | | | |
| |
| | |
| | |
| | |
FIRE: Real Estate | | | | | | | | | | | |
| |
| | |
| | |
| | |
SFR Holdco, LLC (13.9% of equity commitments) (<) | | — | | — | | — | (###) | | 8/6/2021 | | — | | — | | | 3,900 | | | 3,900 | | 0.4 | % |
SFR Holdco, LLC (10.5% of equity commitments) (<) | | — |
| — |
| — | (###) | | 3/1/2022 |
| — |
| — |
| | 2,925 |
| | 2,925 |
| 0.3 | % |
| | |
| |
| | | | |
| |
| |
| | 6,825 |
| | 6,825 |
| 0.7 | % |
Services: Business | | |
| |
| | | | |
| |
| |
| | |
| | |
| | |
Nastel Technologies, LLC (3,408 Class A units) (####) | | — |
| — |
| — | (###) | | 9/21/2022 |
| — |
| — |
| | 3,408 |
| | 4,328 |
| 0.5 | % |
| | | | | | | | | | | |
| |
| | 3,408 |
| | 4,328 |
| 0.5 | % |
Transportation: Cargo | | | | | | | | | | | |
| |
| | |
| | |
| | |
SheerTrans Solutions, LLC (8,642,579 preferred interests) (####) | | — | | — | | — | (###) | | 7/29/2022 | | — | | — | | | 8,643 | | | 8,643 | | 0.9 | % |
| | | | | | | | | | | | | | | | 8,643 |
| | 8,643 |
| 0.9 | % |
Total Non-Controlled/Affiliate Equity Securities | | | | | | | | | | | | | | | | 18,876 | | | 19,796 | | 2.1 | % |
Total Non-Controlled/Affiliate Company Investments | | | | | | | | | | | | | | | $ | 42,325 | | $ | 43,351 | | 4.6 | % |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS | | | | | | | | | | | | | | | $ | 1,759,333 | | $ | 1,764,774 | | 186.9 | % |
17
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
Derivative Instruments
Foreign currency forward contract
| | | | | | | | | | | | | |
|
| Notional Amount |
| Notional Amount |
| |
| Settlement |
| Unrealized Gain | |||
Description |
| to be Purchased |
| to be Sold |
| Counterparty |
| Date |
| (Loss) | |||
Foreign currency forward contract | | $ | 314 |
| CAD | 426 |
| Bannockburn Global Forex, LLC |
| 4/5/2023 | | $ | (1) |
Foreign currency forward contract | | $ | 93 |
| CAD | 128 |
| Bannockburn Global Forex, LLC |
| 4/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 79 |
| CAD | 109 |
| Bannockburn Global Forex, LLC |
| 5/17/2023 | |
| (2) |
Foreign currency forward contract | | $ | 87 |
| CAD | 121 |
| Bannockburn Global Forex, LLC |
| 6/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 316 |
| CAD | 428 |
| Bannockburn Global Forex, LLC |
| 7/5/2023 | |
| (1) |
Foreign currency forward contract | | $ | 90 |
| CAD | 124 |
| Bannockburn Global Forex, LLC |
| 7/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 81 |
| CAD | 112 |
| Bannockburn Global Forex, LLC |
| 8/17/2023 | |
| (2) |
Foreign currency forward contract | | $ | 87 |
| CAD | 120 |
| Bannockburn Global Forex, LLC |
| 9/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 318 |
| CAD | 431 |
| Bannockburn Global Forex, LLC |
| 10/3/2023 | |
| (1) |
Foreign currency forward contract | | $ | 84 |
| CAD | 116 |
| Bannockburn Global Forex, LLC |
| 10/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 75 |
| CAD | 103 |
| Bannockburn Global Forex, LLC |
| 11/17/2023 | |
| (1) |
Foreign currency forward contract | | $ | 77 |
| CAD | 106 |
| Bannockburn Global Forex, LLC |
| 12/19/2023 | |
| (1) |
Foreign currency forward contract | | $ | 316 |
| CAD | 429 |
| Bannockburn Global Forex, LLC |
| 1/4/2024 | |
| (1) |
Foreign currency forward contract | | $ | 104 |
| CAD | 143 |
| Bannockburn Global Forex, LLC |
| 1/17/2024 | |
| (2) |
Foreign currency forward contract | | $ | 81 |
| CAD | 112 |
| Bannockburn Global Forex, LLC |
| 2/19/2024 | |
| (2) |
Foreign currency forward contract | | $ | 76 |
| CAD | 105 |
| Bannockburn Global Forex, LLC |
| 3/19/2024 | |
| (1) |
Foreign currency forward contract | | $ | 313 |
| CAD | 424 |
| Bannockburn Global Forex, LLC |
| 4/3/2024 | |
| (1) |
Foreign currency forward contract | | $ | 103 |
| CAD | 143 |
| Bannockburn Global Forex, LLC |
| 4/17/2024 | |
| (2) |
Foreign currency forward contract | | $ | 78 | | CAD | 108 | | Bannockburn Global Forex, LLC | | 5/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 86 | | CAD | 118 | | Bannockburn Global Forex, LLC | | 6/19/2024 | | | (2) |
Foreign currency forward contract | | $ | 308 | | CAD | 417 | | Bannockburn Global Forex, LLC | | 7/3/2024 | | | (1) |
Foreign currency forward contract | | $ | 95 | | CAD | 131 | | Bannockburn Global Forex, LLC | | 7/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 80 | | CAD | 111 | | Bannockburn Global Forex, LLC | | 8/19/2024 | | | (2) |
Foreign currency forward contract | | $ | 83 | | CAD | 114 | | Bannockburn Global Forex, LLC | | 9/18/2024 | | | (2) |
Foreign currency forward contract | | $ | 312 | | CAD | 423 | | Bannockburn Global Forex, LLC | | 10/2/2024 | | | (1) |
Foreign currency forward contract | | $ | 97 | | CAD | 134 | | Bannockburn Global Forex, LLC | | 10/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 80 | | CAD | 110 | | Bannockburn Global Forex, LLC | | 11/19/2024 | | | (2) |
Foreign currency forward contract | | $ | 80 | | CAD | 110 | | Bannockburn Global Forex, LLC | | 12/18/2024 | | | (2) |
Foreign currency forward contract | | $ | 302 | | CAD | 409 | | Bannockburn Global Forex, LLC | | 1/2/2025 | | | (1) |
Foreign currency forward contract | | $ | 96 | | CAD | 133 | | Bannockburn Global Forex, LLC | | 1/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 83 | | CAD | 115 | | Bannockburn Global Forex, LLC | | 2/20/2025 | | | (2) |
Foreign currency forward contract | | $ | 66 | | CAD | 91 | | Bannockburn Global Forex, LLC | | 3/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 10,811 | | CAD | 14,653 | | Bannockburn Global Forex, LLC | | 4/2/2025 | | | (30) |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 4/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 73 | | CAD | 101 | | Bannockburn Global Forex, LLC | | 5/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 78 | | CAD | 107 | | Bannockburn Global Forex, LLC | | 6/18/2025 | | | (1) |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 7/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 8/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 9/17/2025 | | | (1) |
Foreign currency forward contract | | $ | 94 | | CAD | 130 | | Bannockburn Global Forex, LLC | | 10/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 79 | | CAD | 109 | | Bannockburn Global Forex, LLC | | 11/19/2025 | | | (2) |
Foreign currency forward contract | | $ | 8,874 | | CAD | 12,243 | | Bannockburn Global Forex, LLC | | 12/18/2025 | | | (184) |
Foreign currency forward contract | | $ | 123 | | AUD | 160 | | Bannockburn Global Forex, LLC | | 4/20/2023 | | | 17 |
Foreign currency forward contract | | $ | 93 | | AUD | 121 | | Bannockburn Global Forex, LLC | | 5/16/2023 | | | 12 |
Foreign currency forward contract | | $ | 121 | | AUD | 156 | | Bannockburn Global Forex, LLC | | 6/19/2023 | | | 16 |
Foreign currency forward contract | | $ | 106 | | AUD | 138 | | Bannockburn Global Forex, LLC | | 7/18/2023 | | | 14 |
Foreign currency forward contract | | $ | 113 | | AUD | 146 | | Bannockburn Global Forex, LLC | | 8/16/2023 | | | 15 |
Foreign currency forward contract | | $ | 113 | | AUD | 146 | | Bannockburn Global Forex, LLC | | 9/18/2023 | | | 15 |
Foreign currency forward contract | | $ | 114 | | AUD | 148 | | Bannockburn Global Forex, LLC | | 10/18/2023 | | | 15 |
Foreign currency forward contract | | $ | 107 | | AUD | 140 | | Bannockburn Global Forex, LLC | | 11/16/2023 | | | 14 |
Foreign currency forward contract | | $ | 109 | | AUD | 142 | | Bannockburn Global Forex, LLC | | 12/18/2023 | | | 14 |
Foreign currency forward contract | | $ | 115 | | AUD | 150 | | Bannockburn Global Forex, LLC | | 1/17/2024 | | | 15 |
Foreign currency forward contract | | $ | 110 | | AUD | 143 | | Bannockburn Global Forex, LLC | | 2/16/2024 | | | 14 |
Foreign currency forward contract | | $ | 11,827 | | AUD | 15,410 | | Bannockburn Global Forex, LLC | | 3/18/2024 | | | 1,526 |
| | | | | | | | | | | | $ | 1,409 |
| | | | | | | | | | | | | |
|
| Notional Amount |
| Notional Amount |
| |
| Settlement |
| Unrealized Gain | |||
Description |
| to be Purchased |
| to be Sold |
| Counterparty |
| Date |
| (Loss) | |||
Foreign currency forward contract | | $ | 316 |
| CAD | 428 |
| Bannockburn Global Forex, LLC |
| 7/5/2023 | |
| (7) |
Foreign currency forward contract | | $ | 90 |
| CAD | 124 |
| Bannockburn Global Forex, LLC |
| 7/19/2023 | |
| (4) |
Foreign currency forward contract | | $ | 81 |
| CAD | 112 |
| Bannockburn Global Forex, LLC |
| 8/17/2023 | |
| (3) |
Foreign currency forward contract | | $ | 87 |
| CAD | 120 |
| Bannockburn Global Forex, LLC |
| 9/19/2023 | |
| (4) |
Foreign currency forward contract | | $ | 318 |
| CAD | 431 |
| Bannockburn Global Forex, LLC |
| 10/3/2023 | |
| (8) |
Foreign currency forward contract | | $ | 84 |
| CAD | 116 |
| Bannockburn Global Forex, LLC |
| 10/19/2023 | |
| (4) |
Foreign currency forward contract | | $ | 75 |
| CAD | 103 |
| Bannockburn Global Forex, LLC |
| 11/17/2023 | |
| (3) |
Foreign currency forward contract | | $ | 77 |
| CAD | 106 |
| Bannockburn Global Forex, LLC |
| 12/19/2023 | |
| (3) |
Foreign currency forward contract | | $ | 316 |
| CAD | 429 |
| Bannockburn Global Forex, LLC |
| 1/4/2024 | |
| (7) |
Foreign currency forward contract | | $ | 104 |
| CAD | 143 |
| Bannockburn Global Forex, LLC |
| 1/17/2024 | |
| (4) |
Foreign currency forward contract | | $ | 81 |
| CAD | 112 |
| Bannockburn Global Forex, LLC |
| 2/19/2024 | |
| (3) |
Foreign currency forward contract | | $ | 76 |
| CAD | 105 |
| Bannockburn Global Forex, LLC |
| 3/19/2024 | |
| (3) |
Foreign currency forward contract | | $ | 313 |
| CAD | 424 |
| Bannockburn Global Forex, LLC |
| 4/3/2024 | |
| (7) |
Foreign currency forward contract | | $ | 103 |
| CAD | 143 |
| Bannockburn Global Forex, LLC |
| 4/17/2024 | |
| (4) |
Foreign currency forward contract | | $ | 78 | | CAD | 108 | | Bannockburn Global Forex, LLC | | 5/17/2024 | | | (3) |
Foreign currency forward contract | | $ | 86 | | CAD | 118 | | Bannockburn Global Forex, LLC | | 6/19/2024 | | | (4) |
Foreign currency forward contract | | $ | 308 | | CAD | 417 | | Bannockburn Global Forex, LLC | | 7/3/2024 | | | (7) |
Foreign currency forward contract | | $ | 95 | | CAD | 131 | | Bannockburn Global Forex, LLC | | 7/17/2024 | | | (4) |
Foreign currency forward contract | | $ | 80 | | CAD | 111 | | Bannockburn Global Forex, LLC | | 8/19/2024 | | | (3) |
Foreign currency forward contract | | $ | 83 | | CAD | 114 | | Bannockburn Global Forex, LLC | | 9/18/2024 | | | (4) |
Foreign currency forward contract | | $ | 312 | | CAD | 423 | | Bannockburn Global Forex, LLC | | 10/2/2024 | | | (7) |
Foreign currency forward contract | | $ | 97 | | CAD | 134 | | Bannockburn Global Forex, LLC | | 10/17/2024 | | | (4) |
Foreign currency forward contract | | $ | 80 | | CAD | 110 | | Bannockburn Global Forex, LLC | | 11/19/2024 | | | (3) |
Foreign currency forward contract | | $ | 80 | | CAD | 110 | | Bannockburn Global Forex, LLC | | 12/18/2024 | | | (3) |
Foreign currency forward contract | | $ | 302 | | CAD | 409 | | Bannockburn Global Forex, LLC | | 1/2/2025 | | | (7) |
Foreign currency forward contract | | $ | 96 | | CAD | 133 | | Bannockburn Global Forex, LLC | | 1/17/2025 | | | (4) |
Foreign currency forward contract | | $ | 83 | | CAD | 115 | | Bannockburn Global Forex, LLC | | 2/20/2025 | | | (4) |
Foreign currency forward contract | | $ | 66 | | CAD | 91 | | Bannockburn Global Forex, LLC | | 3/19/2025 | | | (3) |
Foreign currency forward contract | | $ | 10,811 | | CAD | 14,653 | | Bannockburn Global Forex, LLC | | 4/2/2025 | | | (255) |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 4/17/2025 | | | (4) |
Foreign currency forward contract | | $ | 73 | | CAD | 101 | | Bannockburn Global Forex, LLC | | 5/19/2025 | | | (3) |
Foreign currency forward contract | | $ | 78 | | CAD | 107 | | Bannockburn Global Forex, LLC | | 6/18/2025 | | | (3) |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 7/17/2025 | | | (4) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 8/19/2025 | | | (3) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 9/17/2025 | | | (3) |
Foreign currency forward contract | | $ | 94 | | CAD | 130 | | Bannockburn Global Forex, LLC | | 10/17/2025 | | | (4) |
Foreign currency forward contract | | $ | 79 | | CAD | 109 | | Bannockburn Global Forex, LLC | | 11/19/2025 | | | (3) |
Foreign currency forward contract | | $ | 8,874 | | CAD | 12,243 | | Bannockburn Global Forex, LLC | | 12/18/2025 | | | (372) |
Foreign currency forward contract | | $ | 267 | | AUD | 403 | | Bannockburn Global Forex, LLC | | 7/18/2023 | | | (2) |
Foreign currency forward contract | | $ | 361 | | AUD | 546 | | Bannockburn Global Forex, LLC | | 8/16/2023 | | | (3) |
Foreign currency forward contract | | $ | 363 | | AUD | 549 | | Bannockburn Global Forex, LLC | | 9/18/2023 | | | (3) |
Foreign currency forward contract | | $ | 350 | | AUD | 530 | | Bannockburn Global Forex, LLC | | 10/18/2023 | | | (3) |
Foreign currency forward contract | | $ | 361 | | AUD | 546 | | Bannockburn Global Forex, LLC | | 11/16/2023 | | | (3) |
Foreign currency forward contract | | $ | 345 | | AUD | 523 | | Bannockburn Global Forex, LLC | | 12/18/2023 | | | (3) |
Foreign currency forward contract | | $ | 353 | | AUD | 536 | | Bannockburn Global Forex, LLC | | 1/17/2024 | | | (4) |
Foreign currency forward contract | | $ | 351 | | AUD | 533 | | Bannockburn Global Forex, LLC | | 2/16/2024 | | | (4) |
Foreign currency forward contract | | $ | 324 | | AUD | 492 | | Bannockburn Global Forex, LLC | | 3/18/2024 | | | (4) |
Foreign currency forward contract | | $ | 343 | | AUD | 521 | | Bannockburn Global Forex, LLC | | 4/17/2024 | | | (4) |
Foreign currency forward contract | | $ | 328 | | AUD | 499 | | Bannockburn Global Forex, LLC | | 5/16/2024 | | | (5) |
Foreign currency forward contract | | $ | 332 | | AUD | 506 | | Bannockburn Global Forex, LLC | | 6/19/2024 | | | (5) |
Foreign currency forward contract | | $ | 310 | | AUD | 473 | | Bannockburn Global Forex, LLC | | 7/16/2024 | | | (5) |
Foreign currency forward contract | | $ | 318 | | AUD | 486 | | Bannockburn Global Forex, LLC | | 8/16/2024 | | | (6) |
Foreign currency forward contract | | $ | 318 | | AUD | 486 | | Bannockburn Global Forex, LLC | | 9/17/2024 | | | (6) |
Foreign currency forward contract | | $ | 307 | | AUD | 470 | | Bannockburn Global Forex, LLC | | 10/17/2024 | | | (6) |
Foreign currency forward contract | | $ | 317 | | AUD | 485 | | Bannockburn Global Forex, LLC | | 11/18/2024 | | | (7) |
Foreign currency forward contract | | $ | 306 | | AUD | 470 | | Bannockburn Global Forex, LLC | | 12/17/2024 | | | (7) |
Foreign currency forward contract | | $ | 302 | | AUD | 465 | | Bannockburn Global Forex, LLC | | 1/17/2025 | | | (7) |
Foreign currency forward contract | | $ | 299 | | AUD | 461 | | Bannockburn Global Forex, LLC | | 2/18/2025 | | | (8) |
Foreign currency forward contract | | $ | 270 | | AUD | 416 | | Bannockburn Global Forex, LLC | | 3/18/2025 | | | (7) |
Foreign currency forward contract | | $ | 299 | | AUD | 461 | | Bannockburn Global Forex, LLC | | 4/16/2025 | | | (9) |
Foreign currency forward contract | | $ | 288 | | AUD | 446 | | Bannockburn Global Forex, LLC | | 5/16/2025 | | | (9) |
Foreign currency forward contract | | $ | 30,866 | | AUD | 47,765 | | Bannockburn Global Forex, LLC | | 6/18/2025 | | | (965) |
| | | | | | | | | | | | $ | (1,863) |
18
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)
(unaudited)
March 31,June 30, 2023
(in thousands, except for shares and units)
(˄) All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940, as amended, (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted.
(˄˄) The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate (“SOFR” or “SF”), Canadian Dollar Offered Rate (“CDOR” or “C”) or Prime Rate (“Prime” or “P”), which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR, CDOR, or Prime, as applicable, and the current contractual interest rate in effect at March 31,June 30, 2023. Certain investments may be subject to an interest rate floor, or rate cap. Certain investments contain a payment-in-kind (“PIK”) provision.
(˄˄˄) Except as otherwise noted, all of the Company’s portfolio company investments, which as of March 31,June 30, 2023 represented 179.8%186.9% of the Company’s net assets or 96.5%95.2% of the Company’s total assets, are subject to legal restrictions on sales.
(˄˄˄˄) Except as otherwise noted, because there is no readily available market value for these investments, the fair value of each of these investments is determined in good faith using significant unobservable inputs by the Valuation Designee. (See Note 4 in the accompanying notes to the consolidated financial statements).
(˄˄˄˄˄) Percentages are based on net assets of $858,859$944,093 as of March 31,June 30, 2023.
(~) All or a portion of this security was held in MC Income Plus Financing SPV LLC (the “SPV”) as collateral for the Company’s secured revolving credit facility (the “Credit Facility”) with KeyBank National Association. (See Note 7 in the accompanying notes to the consolidated financial statements).
(~~) All or a portion of this security was held in Monroe Capital Income Plus ABS Funding, LLC (the “2022 Issuer”) as collateral for the Company’s $425,000 asset-backed securitization (the “2022 ABS”). (See Note 7 in the accompanying notes to the consolidated financial statements).
(~~~) All or a portion of this security was held in MC Income Plus Financing SPV II LLC (the “SPV II”) as collateral for the Company’s secured term loan credit facility (the “Term Loan”) with KeyBank National Association. (See Note 7 in the accompanying notes to the consolidated financial statements).
(~~~~) To finance the purchase of certain investments, the Company may enter into participation agreements for par/near par trades with a third-party counterparty, whereby the Company simultaneously agrees to sell an investment and re-purchase the same investment back at a premium within a specified period of time, generally not to exceed 60-days from the date it was sold (each such transaction a “Short-Term Borrowing”). This investment is subject to a repurchase agreement and as such is collateral for Short-Term Borrowings as described in Note 7.
(<) This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of March 31,June 30, 2023, non-qualifying assets totaled 13.6%15.7% of the Company’s total assets.
(<<) The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, is the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.
(#) Represents less than 5% ownership of the portfolio company’s voting securities.
(##) Ownership of certain equity investments may occur through a holding company or partnership.
(###) Represents a non-income producing security.
(####) Investment is held by a taxable subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s wholly-owned taxable subsidiaries.
(#####) As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).
(*) All or a portion of this commitment was unfunded at March 31,June 30, 2023. As such, interest is earned only on the funded portion of this commitment.
(**) This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings by the Company.
(***) This position was on non-accrual status as of June 30, 2023, meaning that the Company has ceased accruing interest income on the position. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s accounting policies.
(a) This loan is denominated in Canadian dollars and is translated into U.S. dollars as of the valuation date.
(b) This is an international company.
(c) This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date.
(d) Investment position or portion thereof unsettled as of March 31,June 30, 2023.
(e) In lieu of interest, this loan accrues an exit fee of 30% of the funded principal amount which is due upon payoff or maturity.
(f)As of March 31,June 30, 2023, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $959.$718.
(g)(f) As of March 31, 2023, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $2,293.
(h) As of March 31,June 30, 2023, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $8.
(i)(g) The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements.
(j)(h) As of March 31,June 30, 2023, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $34.
(k)(i) As of March 31, 2023, the Company was party toThis is a subscription agreementdemand note with a commitment to fund an additional equity investment of $540.no stated maturity.
n/a - not applicable
See Notes to Consolidated Financial Statements.
19
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | | | | | | | % of | | |
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Non-Controlled/Non-Affiliate Company Investments |
| |
| | | | | | |
| |
| |
| | |
| | |
| | |
Senior Secured Loans | | | | | | | | | | | | | | | | | | | | | | |
Aerospace & Defense | | | | | | | | | | | | | | | | | | | | | | |
API Holdings III Corp. (~) | | L | | 4.25 | % | 8.98 | % | | 5/2/2019 | | 5/8/2026 | | 1,641 | | $ | 1,636 | | $ | 1,308 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | L | | 6.00 | % | 10.38 | % | | 7/25/2019 | | 7/25/2025 | | 1,935 | | | 1,915 | | | 1,918 | | 0.3 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | L | | 6.00 | % | 10.38 | % | | 12/24/2019 | | 7/25/2025 | | 1,010 | | | 999 | | | 1,001 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | L | | 6.00 | % | 10.38 | % | | 2/17/2021 | | 7/25/2025 | | 1,747 | | | 1,745 | | | 1,732 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | L | | 6.00 | % | 10.38 | % | | 6/15/2021 | | 7/25/2025 | | 1,024 | | | 1,008 | | | 1,015 | | 0.2 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (~) (~~) | | L | | 6.00 | % | 10.38 | % | | 8/10/2021 | | 7/25/2025 | | 1,000 | | | 986 | | | 991 | | 0.1 | % |
SI Holdings, Inc. (Integrated Polymer Solutions) (Revolver) (*) | | L | | 6.00 | % | 10.38 | % | | 7/25/2019 | | 7/25/2024 | | 316 | | | 71 | | | 71 | | 0.0 | % |
|
| |
| | | | | | |
| |
| 8,673 |
| | 8,360 |
| | 8,036 |
| 1.1 | % |
Automotive |
| |
| | | | | | |
| |
| |
| | |
| | |
| | |
Born To Run, LLC (~~) (~~~) |
| L |
| 6.00 | % | 10.73 | % | | 4/1/2021 |
| 4/1/2027 |
| 8,865 | | | 8,729 | | | 8,531 |
| 1.1 | % |
Born To Run, LLC (~~) |
| L |
| 6.00 | % | 10.73 | % | | 4/1/2021 |
| 4/1/2027 |
| 1,207 | |
| 1,207 | |
| 1,162 |
| 0.2 | % |
Burgess Point Purchaser Corporation (fka BBB Industries LLC) (~) |
| SF |
| 5.35 | % | 9.67 | % | | 6/30/2022 |
| 7/25/2029 |
| 5,000 | |
| 4,519 | |
| 4,563 |
| 0.6 | % |
Lifted Trucks Holdings, LLC (~~) (~~~) |
| L |
| 5.75 | % | 9.49 | % | | 8/2/2021 |
| 8/2/2027 |
| 9,900 | |
| 9,737 | |
| 9,771 |
| 1.3 | % |
Lifted Trucks Holdings, LLC (Delayed Draw) (*) (**) |
| L |
| 5.75 | % | 9.49 | % | | 8/2/2021 |
| 8/2/2027 |
| 2,000 | |
| — | |
| — |
| 0.0 | % |
Lifted Trucks Holdings, LLC (Revolver) (*) |
| L |
| 5.75 | % | 9.49 | % | | 8/2/2021 |
| 8/2/2027 |
| 2,381 | |
| — | |
| — |
| 0.0 | % |
Panda Acquisition, LLC (~) |
| SF |
| 6.35 | % | 10.28 | % | | 12/20/2022 |
| 10/18/2028 |
| 10,000 | |
| 8,201 | |
| 8,200 |
| 1.1 | % |
Truck-Lite Co., LLC (~) |
| SF |
| 6.25 | % | 11.14 | % | | 7/8/2022 |
| 12/14/2026 |
| 128 | |
| 125 | |
| 128 |
| 0.0 | % |
Truck-Lite Co., LLC (~) |
| SF |
| 6.25 | % | 11.14 | % | | 3/11/2020 |
| 12/14/2026 |
| 3,383 | |
| 3,361 | |
| 3,379 |
| 0.4 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 11/23/2021 | | 12/14/2026 | | 628 | | | 628 | | | 627 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 3/11/2020 | | 12/14/2026 | | 501 | | | 501 | | | 501 | | 0.1 | % |
Truck-Lite Co., LLC (~) | | SF | | 6.25 | % | 11.14 | % | | 11/23/2021 | | 12/14/2026 | | 557 | | | 557 | | | 556 | | 0.1 | % |
Truck-Lite Co., LLC (~) |
| SF |
| 6.25 | % | 11.14 | % | | 11/23/2021 |
| 12/14/2026 |
| 714 | |
| 714 | |
| 714 |
| 0.1 | % |
|
| |
| | | | | | |
| | | 45,264 | | | 38,279 | | | 38,132 | | 5.1 | % |
Banking |
| |
| | | | | | |
| |
| | |
| | |
| |
| | |
MV Receivables II, LLC (<) |
| L |
| 9.75 | % | 13.87 | % | | 7/29/2021 |
| 7/29/2026 |
| 10,144 | |
| 9,691 | |
| 9,960 |
| 1.3 | % |
StarCompliance MidCo, LLC (~~) |
| L |
| 6.75 | % | 11.48 | % | | 1/12/2021 |
| 1/12/2027 |
| 3,000 | |
| 2,957 | |
| 2,951 |
| 0.4 | % |
StarCompliance MidCo, LLC (~~) |
| L |
| 6.75 | % | 11.48 | % | | 10/12/2021 |
| 1/12/2027 |
| 503 | |
| 495 | |
| 495 |
| 0.1 | % |
StarCompliance MidCo, LLC (Revolver) (*) |
| L |
| 6.75 | % | 11.14 | % | | 1/12/2021 |
| 1/12/2027 |
| 484 | |
| 121 | |
| 119 |
| 0.0 | % |
|
| |
| | | | | | | | | | 14,131 | | | 13,264 |
| | 13,525 | | 1.8 | % |
Beverage, Food & Tobacco |
| |
| | | | | | |
| |
| | |
| | |
| |
| | |
Sabrosura Foods, LLC et al (fka Huff Hispanic Food Holdings, LLC) (~) (~~) |
| L |
| 5.50 | % | 9.89 | % | | 10/18/2019 |
| 10/18/2024 |
| 5,037 | |
| 4,997 | |
| 4,984 |
| 0.7 | % |
Sabrosura Foods, LLC et al (fka Huff Hispanic Food Holdings, LLC) (~) |
| L |
| 5.50 | % | 9.91 | % | | 10/18/2019 |
| 10/18/2024 |
| 285 | |
| 285 | |
| 282 |
| 0.0 | % |
Sabrosura Foods, LLC et al (fka Huff Hispanic Food Holdings, LLC) (Revolver) (*) |
| L |
| 5.50 | % | 10.23 | % | | 10/18/2019 |
| 10/18/2024 |
| 1,286 | |
| 1,020 | |
| 1,009 |
| 0.1 | % |
LVF Holdings, Inc. (~) |
| L |
| 6.25 | % | 8.45 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,456 | |
| 3,402 | |
| 3,353 |
| 0.5 | % |
LVF Holdings, Inc. (~) |
| L |
| 6.25 | % | 8.45 | % | | 6/10/2021 |
| 6/10/2027 |
| 3,308 | |
| 3,308 | |
| 3,208 |
| 0.4 | % |
LVF Holdings, Inc. (Delayed Draw) (*) (**) |
| L |
| 6.25 | % | 8.45 | % | | 6/10/2021 |
| 6/10/2027 |
| 802 | |
| — | |
| — |
| 0.0 | % |
LVF Holdings, Inc. (Revolver) (*) |
| L |
| 6.25 | % | 10.98 | % | | 6/10/2021 |
| 6/10/2027 |
| 554 | |
| 366 | |
| 355 |
| 0.1 | % |
LX/JT Intermediate Holdings, Inc. (~) |
| SF |
| 6.00 | % | 10.42 | % | | 3/11/2020 |
| 3/11/2025 |
| 3,281 | |
| 3,248 | |
| 3,237 |
| 0.4 | % |
LX/JT Intermediate Holdings, Inc. (Revolver) (*) |
| SF |
| 6.00 | % | 10.42 | % | | 3/11/2020 |
| 3/11/2025 |
| 500 | |
| — | |
| — |
| 0.0 | % |
|
| |
| | | | | | |
| | | 18,509 | | | 16,626 | | | 16,428 | | 2.2 | % |
20
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | | | | | | | % of |
| |
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Capital Equipment | | | | | | | | | | | | | | | | | | | | | | |
Adept AG Holdings, LLC (~~~) |
| SF |
| 5.50 | % | 10.21 | % | | 8/11/2022 |
| 8/11/2027 |
| 6,484 | | $ | 6,362 | | $ | 6,445 |
| 0.9 | % |
Adept AG Holdings, LLC (<) (a) |
| SF |
| 5.75 | % | 10.46 | % | | 8/11/2022 |
| 8/11/2027 |
| 10,788 | |
| 10,685 | |
| 10,724 |
| 1.4 | % |
Adept AG Holdings, LLC |
| SF |
| 5.50 | % | 9.92 | % | | 8/11/2022 |
| 8/11/2027 |
| 1,625 | |
| 1,625 | |
| 1,615 |
| 0.2 | % |
Adept AG Holdings, LLC (Revolver) (<) (*) (a) | | SF | | 5.75 | % | 10.46 | % | | 8/11/2022 | | 8/11/2027 | | 1,079 | | | — | | | — | | 0.0 | % |
Adept AG Holdings, LLC (Revolver) (*) | | SF | | 5.50 | % | 10.21 | % | | 8/11/2022 | | 8/11/2027 | | 1,300 | | | — | | | — | | 0.0 | % |
CGI Automated Manufacturing, LLC (~) | | SF | | 6.50 | % | 11.34 | % | | 9/9/2022 | | 12/17/2026 | | 8,944 | | | 8,692 | | | 8,944 | | 1.2 | % |
CGI Automated Manufacturing, LLC (~) | | SF | | 6.50 | % | 11.34 | % | | 9/30/2022 | | 12/17/2026 | | 5,691 | | | 5,556 | | | 5,691 | | 0.8 | % |
CGI Automated Manufacturing, LLC (~) | | SF | | 6.50 | % | 11.34 | % | | 9/9/2022 | | 12/17/2026 | | 10,890 | | | 10,583 | | | 10,890 | | 1.4 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.50 | % | 11.06 | % | | 2/28/2020 | | 11/28/2025 | | 7,777 | | | 7,691 | | | 7,789 | | 1.0 | % |
MCP Shaw Acquisitionco, LLC (~~) (~~~) | | SF | | 6.50 | % | 11.06 | % | | 12/29/2021 | | 11/28/2025 | | 2,378 | | | 2,341 | | | 2,381 | | 0.3 | % |
MCP Shaw Acquisitionco, LLC (~~~) | | SF | | 6.50 | % | 11.06 | % | | 12/29/2021 | | 11/28/2025 | | 782 | | | 782 | | | 783 | | 0.1 | % |
MCP Shaw Acquisitionco, LLC (Revolver) (*) | | SF | | 6.50 | % | 11.06 | % | | 2/28/2020 | | 11/28/2025 | | 1,427 | | | — | | | — | | 0.0 | % |
|
| |
| |
| | | | |
| | | 59,165 | | | 54,317 | | | 55,262 | | 7.3 | % |
Construction & Building | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | 12.23 | % Cash/ | | | | | | | | | | | | | | | |
Premier Roofing L.L.C. (~) |
| L |
| 8.50 | % | 1.00 | % PIK | | 8/31/2020 |
| 8/29/2025 |
| 3,450 | |
| 3,411 | |
| 3,392 |
| 0.5 | % |
| | | | | | 12.23 | % Cash/ | | | | | | | | | | | | | | | |
Premier Roofing L.L.C. (Revolver) (*) |
| L |
| 8.50 | % | 1.00 | % PIK | | 8/31/2020 |
| 8/29/2025 |
| 1,204 | |
| 965 | |
| 948 |
| 0.1 | % |
TCFIII Owl Buyer LLC (~~) (~~~) |
| SF |
| 5.50 | % | 9.94 | % | | 4/19/2021 |
| 4/17/2026 |
| 4,433 | |
| 4,378 | |
| 4,438 |
| 0.6 | % |
TCFIII Owl Buyer LLC (~~~) |
| SF |
| 5.50 | % | 9.94 | % | | 4/19/2021 |
| 4/17/2026 |
| 5,412 | |
| 5,412 | |
| 5,419 |
| 0.7 | % |
TCFIII Owl Buyer LLC (~~) (~~~) |
| SF |
| 5.50 | % | 9.94 | % | | 12/17/2021 |
| 4/17/2026 |
| 4,857 | |
| 4,789 | |
| 4,863 |
| 0.6 | % |
|
| |
| | | | | | |
| | | 19,356 | | | 18,955 | | | 19,060 | | 2.5 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | | | | |
Independence Buyer, Inc. (~~) (~~~) |
| SF |
| 5.50 | % | 9.74 | % | | 8/3/2021 |
| 8/3/2026 |
| 12,375 | |
| 12,186 | |
| 12,220 |
| 1.6 | % |
Independence Buyer, Inc. (Revolver) (*) |
| SF |
| 5.50 | % | 9.74 | % | | 8/3/2021 |
| 8/3/2026 |
| 2,964 | |
| — | |
| — |
| 0.0 | % |
Recycled Plastics Industries, LLC (~~) (~~~) |
| L |
| 6.75 | % | 10.87 | % | | 8/4/2021 |
| 8/4/2026 |
| 5,431 | |
| 5,347 | |
| 5,295 |
| 0.7 | % |
Recycled Plastics Industries, LLC (Revolver) (*) |
| L |
| 6.75 | % | 10.87 | % | | 8/4/2021 |
| 8/4/2026 |
| 743 | |
| — | |
| — |
| 0.0 | % |
|
| |
| | | | | | |
| | | 21,513 | | | 17,533 | | | 17,515 | | 2.3 | % |
Consumer Goods: Non-Durable | | | | | | | | | | | | | | | | | | | | | | |
Arizona Natural Resources, LLC (~) |
| SF |
| 6.50 | % | 10.74 | % | | 5/18/2021 |
| 5/18/2026 |
| 13,825 | |
| 13,622 | |
| 13,680 |
| 1.8 | % |
Arizona Natural Resources, LLC (~) |
| SF |
| 6.50 | % | 10.74 | % | | 12/15/2021 |
| 5/18/2026 |
| 2,538 | |
| 2,497 | |
| 2,511 |
| 0.4 | % |
Arizona Natural Resources, LLC (~) | | SF | | 6.50 | % | 10.74 | % | | 8/12/2022 | | 5/18/2026 | | 6,884 | | | 6,757 | | | 6,812 | | 0.9 | % |
Arizona Natural Resources, LLC (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 10.74 | % | | 8/12/2022 | | 5/18/2026 | | 2,958 | | | — | | | — | | 0.0 | % |
Arizona Natural Resources, LLC (Revolver) (*) | | SF | | 6.50 | % | 10.74 | % | | 5/18/2021 | | 5/18/2026 | | 2,222 | | | 1,778 | | | 1,759 | | 0.2 | % |
| | | | | | 11.15 | % Cash/ | | | | | | | | | | | | | | | |
The Kyjen Company, LLC (~) (~~) | | SF | | 7.15 | % | 0.50 | % PIK | | 5/14/2021 | | 4/3/2026 | | 2,959 | | | 2,936 | | | 2,925 | | 0.4 | % |
The Kyjen Company, LLC | | SF | | 7.00 | % | 11.42 | % PIK | | 9/13/2022 | | 4/3/2026 | | 1 | | | 1 | | | 1 | | 0.0 | % |
| | | | | | 10.92 | % Cash/ | | | | | | | | | | | | | | | |
The Kyjen Company, LLC (Revolver) (*) | | SF | | 7.10 | % | 0.50 | % PIK | | 5/14/2021 | | 4/3/2026 | | 315 | | | 268 | | | 265 | | 0.0 | % |
Thrasio, LLC (~) (~~) | | L | | 7.00 | % | 11.73 | % | | 12/18/2020 | | 12/18/2026 | | 4,890 | | | 4,838 | | | 4,890 | | 0.7 | % |
| | | | | | | | | | | | | 36,592 | | | 32,697 | | | 32,843 | | 4.4 | % |
Containers, Packaging & Glass | | | | | | | | | | | | | | | | | | | | | | |
B2B Industrial Products LLC (~) | | SF | | 6.75 | % | 11.41 | % | | 12/6/2022 | | 10/7/2026 | | 10,000 | | | 9,753 | | | 9,750 | | 1.3 | % |
Polychem Acquisition, LLC (~) | | L | | 5.00 | % | 9.38 | % | | 4/8/2019 | | 3/17/2025 | | 1,925 | | | 1,921 | | | 1,925 | | 0.2 | % |
| | | | | | | | | | | | | 11,925 | | | 11,674 | | | 11,675 | | 1.5 | % |
Energy: Oil & Gas | | | | | | | | | | | | | | | | | | | | | | |
Liquid Tech Solutions Holdings, LLC (~) | | L | | 4.75 | % | 8.92 | % | | 3/18/2021 | | 3/17/2028 | | 2,248 | | | 2,240 | | | 2,147 | | 0.3 | % |
Par Petroleum, LLC (~) | | L | | 6.75 | % | 10.58 | % | | 1/27/2020 | | 1/12/2026 | | 855 | | | 859 | | | 844 | | 0.1 | % |
|
| |
| | | | | | |
| | | 3,103 | | | 3,099 | | | 2,991 | | 0.4 | % |
Environmental Industries | | | | | | | | | | | | | | | | | | | | | | |
Quest Resource Management Group, LLC (~~) (~~~) |
| L |
| 6.50 | % | 10.62 | % | | 10/19/2020 |
| 10/20/2025 |
| 972 | |
| 913 | |
| 972 |
| 0.1 | % |
Quest Resource Management Group, LLC (~~~) |
| L |
| 6.50 | % | 10.62 | % | | 10/19/2020 |
| 10/20/2025 |
| 1,068 | |
| 1,068 | |
| 1,067 |
| 0.1 | % |
Quest Resource Management Group, LLC (~~) (~~~) |
| L |
| 6.50 | % | 10.62 | % | | 12/7/2021 |
| 10/20/2025 |
| 3,796 | |
| 3,738 | |
| 3,781 |
| 0.5 | % |
Quest Resource Management Group, LLC (Delayed Draw) (*) (**) |
| L |
| 6.50 | % | 10.62 | % | | 12/7/2021 |
| 10/20/2025 |
| 1,772 | |
| 383 | |
| 381 |
| 0.1 | % |
Trilon Group, LLC (~) |
| SF |
| 6.25 | % | 10.48 | % | | 10/28/2022 |
| 5/25/2029 |
| 5,500 | |
| 5,337 | |
| 5,335 |
| 0.7 | % |
Trilon Group, LLC (Delayed Draw) (*) (**) |
| SF |
| 6.25 | % | 10.90 | % | | 10/28/2022 |
| 5/25/2029 |
| 4,400 | |
| 405 | |
| 393 |
| 0.1 | % |
Volt Bidco, Inc. (~~) |
| SF |
| 6.50 | % | 11.08 | % | | 8/11/2021 |
| 8/11/2027 |
| 9,059 | |
| 8,904 | |
| 9,048 |
| 1.2 | % |
Volt Bidco, Inc. (Delayed Draw) (*) (**) |
| SF |
| 6.50 | % | 11.08 | % PIK | | 8/11/2021 |
| 8/11/2027 |
| 1,614 | |
| 869 | |
| 868 |
| 0.1 | % |
Volt Bidco, Inc. (Revolver) (*) |
| SF |
| 6.50 | % | 11.08 | % | | 8/11/2021 |
| 8/11/2027 |
| 956 | |
| — | |
| — |
| 0.0 | % |
| | | | | | | | | | | | | 29,137 | | | 21,617 | | | 21,845 | | 2.9 | % |
21
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | | | | | | | % of | | |
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
FIRE: Finance | | | | | | | | | | | | | | | | | | | | | | |
Avalara, Inc. (~~) | | SF | | 7.25 | % | 11.83 | % | | 10/19/2022 |
| 10/19/2028 |
| 10,000 | | $ | 9,756 | | $ | 9,750 |
| 1.3 | % |
Avalara, Inc. (Revolver) (*) | | SF | | 7.25 | % | 11.83 | % | | 10/19/2022 |
| 10/19/2028 |
| 1,000 | |
| — | |
| — |
| 0.0 | % |
| | | | | | 10.22 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (~~) | | SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 |
| 9/30/2027 |
| 14,119 | |
| 13,883 | |
| 14,162 |
| 1.9 | % |
| | | | | | 10.22 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (~~) | | SF | | 8.00 | % | 2.00 | % PIK | | 8/26/2022 |
| 9/30/2027 |
| 1,971 | |
| 1,924 | |
| 1,977 |
| 0.3 | % |
Exiger LLC (~~) | | SF | | 8.00 | % | 10.22 | % Cash/ | | 9/30/2021 |
| 9/30/2027 |
| 4,223 | |
| 4,223 | |
| 4,235 |
| 0.5 | % |
| | | | | | 2.00 | % PIK | | | | | | | | | | | | | | | |
| | | | | | 10.22 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (Delayed Draw) (*) (**) | | SF | | 8.00 | % | 2.00 | % PIK | | 8/26/2022 | | 9/30/2027 | | 7,000 | | | — | | | — | | 0.0 | % |
| | | | | | 10.22 | % Cash/ | | | | | | | | | | | | | | | |
Exiger LLC (Revolver) (*) | | SF | | 8.00 | % | 2.00 | % PIK | | 9/30/2021 | | 9/30/2027 | | 1,400 | | | — | | | — | | 0.0 | % |
GC Champion Acquisition LLC (~~) | | SF | | 6.75 | % | 11.15 | % | | 8/19/2022 | | 8/18/2028 | | 12,967 | | | 12,719 | | | 12,838 | | 1.7 | % |
GC Champion Acquisition LLC (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.15 | % | | 8/19/2022 | | 8/18/2028 | | 3,611 | | | — | | | — | | 0.0 | % |
J2 BWA Funding LLC (Delayed Draw) (<) (*) (**) | | n/a | | n/a | | 9.00 | % | | 12/24/2020 | | 12/24/2026 | | 2,850 | | | 1,350 | | | 1,345 | | 0.2 | % |
J2 BWA Funding III, LLC (Delayed Draw) (<) (*) (**) | | n/a | | n/a | | 9.00 | % | | 4/29/2022 | | 4/28/2028 | | 7,600 | | | — | | | — | | 0.0 | % |
Oceana Australian Fixed Income Trust (~) (<) (b) (c) | | n/a | | n/a | | 11.50 | % | | 2/25/2021 | | 2/25/2026 | | 7,321 | | | 8,460 | | | 7,321 | | 1.0 | % |
Oceana Australian Fixed Income Trust (~) (<) (b) (c) | | n/a | | n/a | | 10.75 | % | | 6/29/2021 | | 6/29/2026 | | 3,084 | | | 3,400 | | | 3,084 | | 0.4 | % |
SCP Intermediate Holdings, LLC (~) (<) | | SF | | 5.75 | % | 10.17 | % | | 12/28/2022 | | 12/28/2028 | | 3,000 | | | 2,925 | | | 2,925 | | 0.4 | % |
TEAM Public Choices, LLC (~) | | SF | | 5.00 | % | 9.95 | % | | 8/23/2022 | | 12/17/2027 | | 4,560 | | | 4,344 | | | 4,378 | | 0.6 | % |
W3 Monroe RE Debt LLC (<) | | n/a | | n/a | | 10.00 | % PIK | | 2/5/2021 | | 2/4/2028 | | 1,944 | | | 1,944 | | | 1,944 | | 0.2 | % |
YS WH4 LLC (Revolver) (<) (*) | | SF | | 7.00 | % | 11.44 | % | | 7/20/2022 | | 11/20/2025 | | 7,700 | | | 2,604 | | | 2,604 | | 0.3 | % |
| | | | | | | | | | | | | 94,350 | | | 67,532 | | | 66,563 | | 8.8 | % |
FIRE: Insurance | | | |
|
|
|
| |
|
|
|
|
| |
|
| |
|
|
|
| |
Simplicity Financial Marketing Group Holdings Inc. (~) (~~~) | | L | | 5.75 | % | 10.48 | % | | 9/23/2022 |
| 12/2/2026 |
| 9,991 | |
| 9,709 | |
| 9,641 |
| 1.3 | % |
Simplicity Financial Marketing Group Holdings Inc. (Delayed Draw) (*) (**) | | L | | 5.75 | % | 10.48 | % | | 9/23/2022 |
| 12/2/2026 |
| 14,223 | |
| — | |
| — |
| 0.0 | % |
Simplicity Financial Marketing Group Holdings Inc. (Revolver) (*) | | L | | 5.75 | % | 10.48 | % | | 9/23/2022 |
| 12/2/2026 | | 761 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | |
| 24,975 | |
| 9,709 | |
| 9,641 |
| 1.3 | % |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | |
300 N. Michigan Mezz, LLC (Delayed Draw) (~) (<) (*) (**) | | L | | 14.50 | % | 18.62 | % PIK | | 7/15/2020 | | 7/15/2024 | | 1,000 | | | 974 | | | 974 | | 0.1 | % |
Avison Young (USA) Inc. (~~~) (<) (b) | | SF | | 5.75 | % | 10.19 | % | | 4/26/2019 | | 1/30/2026 | | 1,925 | | | 1,915 | | | 1,612 | | 0.2 | % |
Avison Young (USA) Inc. (~~~) (<) (b) | | SF | | 7.00 | % | 11.44 | % | | 9/1/2022 | | 1/30/2026 | | 4,163 | | | 3,933 | | | 3,726 | | 0.5 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (<) | | SF | | 8.25 | % | 12.43 | % | | 5/3/2022 | | 4/30/2025 | | 16,000 | | | 15,734 | | | 15,980 | | 2.1 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (<) | | SF | | 8.25 | % | 12.43 | % | | 5/3/2022 | | 4/30/2025 | | 1,635 | | | 1,635 | | | 1,633 | | 0.2 | % |
Centaur (Palm Beach) Owner LLC and Panther National Golf Club LLC (Revolver) (<) (*) | | SF | | 8.25 | % | 12.43 | % | | 5/3/2022 | | 4/30/2025 | | 8,016 | | | 3,492 | | | 3,488 | | 0.5 | % |
Florida East Coast Industries, LLC (~) (<) | | n/a | | n/a | | 10.50 | % | | 8/9/2021 | | 6/28/2024 | | 1,356 | | | 1,334 | | | 1,362 | | 0.2 | % |
InsideRE, LLC (~~) (~~~) | | L | | 5.75 | % | 10.48 | % | | 12/22/2021 | | 12/22/2027 | | 7,427 | | | 7,300 | | | 7,305 | | 1.0 | % |
InsideRE, LLC (Delayed Draw) (*) (**) | | L | | 5.75 | % | 10.48 | % | | 12/22/2021 | | 12/22/2027 | | 2,886 | | | — | | | — | | 0.0 | % |
InsideRE, LLC (Revolver) (*) | | L | | 5.75 | % | 10.48 | % | | 12/22/2021 | | 12/22/2027 | | 965 | | | 64 | | | 64 | | 0.0 | % |
NCBP Property, LLC (<) | | L | | 9.50 | % | 13.62 | % | | 12/18/2020 | | 6/16/2023 | | 2,500 | | | 2,494 | | | 2,507 | | 0.3 | % |
| | | | | | | | | | | | | 47,873 | | | 38,875 | | | 38,651 | | 5.1 | % |
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | | | | |
Appriss Health, LLC (~~) | | L | | 7.25 | % | 11.54 | % | | 5/6/2021 |
| 5/6/2027 |
| 6,484 | | | 6,380 | | | 6,497 |
| 0.9 | % |
Appriss Health, LLC (Revolver) (*) | | L | | 7.25 | % | 11.54 | % | | 5/6/2021 | | 5/6/2027 | | 433 | | | — | | | — | | 0.0 | % |
Ascent Midco, LLC (~~) (~~~) | | L | | 5.75 | % | 10.14 | % | | 2/5/2020 |
| 2/5/2025 |
| 2,220 | |
| 2,200 | |
| 2,220 |
| 0.3 | % |
Ascent Midco, LLC (Revolver) (*) | | L | | 5.75 | % | 10.14 | % | | 2/5/2020 | | 2/5/2025 | | 403 | | | — | | | — | | 0.0 | % |
Brickell Bay Acquisition Corp. (~~) (~~~) | | L | | 6.50 | % | 10.24 | % | | 2/12/2021 |
| 2/12/2026 |
| 2,820 | |
| 2,776 | |
| 2,771 |
| 0.4 | % |
| | | | | | 8.97 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (~) | | SF | | 8.75 | % | 3.00 | % PIK | | 6/30/2021 |
| 6/30/2027 |
| 8,025 | |
| 7,897 | |
| 7,409 |
| 1.0 | % |
| | | | | | 8.97 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (Delayed Draw) (*) (**) | | SF | | 8.75 | % | 3.00 | % PIK | | 6/30/2021 |
| 6/30/2027 |
| 6,000 | |
| 300 | |
| 277 |
| 0.0 | % |
| | | | | | 8.97 | % Cash/ | | | | | | | | | | | | | | | |
Caravel Autism Health, LLC (Revolver) (*) | | SF | | 8.75 | % | 3.00 | % PIK | | 6/30/2021 |
| 6/30/2027 |
| 2,016 | |
| 1,816 | |
| 1,677 |
| 0.2 | % |
Dorado Acquisition, Inc. (~) (~~) | | SF | | 6.50 | % | 10.72 | % | | 6/30/2021 | | 6/30/2026 | | 13,825 | | | 13,614 | | | 13,797 | | 1.8 | % |
Dorado Acquisition, Inc. (~) | | SF | | 6.76 | % | 11.34 | % | | 11/27/2022 |
| 6/30/2026 |
| 11,429 | |
| 11,143 | |
| 11,406 |
| 1.5 | % |
Dorado Acquisition, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 10.72 | % | | 6/30/2021 |
| 6/30/2026 |
| 606 | |
| — | |
| — |
| 0.0 | % |
Dorado Acquisition, Inc. (Revolver) | | SF | | 6.50 | % | 10.92 | % | | 6/30/2021 |
| 6/30/2026 |
| 1,670 | |
| 1,670 | |
| 1,670 |
| 0.2 | % |
Golden State Buyer, Inc. (~) (~~~) | | L | | 4.75 | % | 8.92 | % | | 8/25/2022 | | 6/21/2026 | | 9,974 | | | 9,600 | | | 9,525 | | 1.2 | % |
| | | | | | 8.08 | % Cash/ | | | | | | | | | | | | | | | |
INH Buyer, Inc. (~) | | SF | | 7.00 | % | 3.50 | % PIK | | 6/30/2021 |
| 6/28/2028 |
| 4,916 | |
| 4,876 | |
| 4,720 |
| 0.6 | % |
MPH Acquisition Holdings LLC (~) (<) | | L | | 4.25 | % | 8.98 | % | | 9/20/2022 | | 9/1/2028 | | 3,553 | | | 3,343 | | | 3,052 | | 0.4 | % |
NationsBenefits, LLC (~) | | SF | | 7.00 | % | 11.22 | % | | 8/20/2021 |
| 8/26/2027 |
| 12,128 | |
| 11,939 | |
| 12,370 |
| 1.6 | % |
NationsBenefits, LLC (~) | | SF | | 7.00 | % | 11.22 | % | | 8/26/2022 |
| 8/26/2027 |
| 14,452 | |
| 14,452 | |
| 14,741 |
| 2.0 | % |
NationsBenefits, LLC (Delayed Draw) (*) (**) | | SF | | 7.00 | % | 11.22 | % | | 8/26/2022 |
| 8/26/2027 | | 15,585 | | | 2,886 | |
| 2,943 |
| 0.4 | % |
NationsBenefits, LLC (Revolver) (*) | | SF | | 7.00 | % | 11.42 | % | | 8/20/2021 | | 8/26/2027 | | 6,806 | | | 2,722 | | | 2,722 | | 0.4 | % |
NQ PE Project Colosseum Midco Inc. (~) (~~~) | | SF | | 6.00 | % | 10.59 | % | | 10/4/2022 | | 10/4/2028 | | 14,600 | | | 14,316 | | | 14,308 | | 1.9 | % |
NQ PE Project Colosseum Midco Inc. (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.59 | % | | 10/4/2022 | | 10/4/2028 | | 3,244 | | | — | | | — | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (Revolver) (*) | | SF | | 6.00 | % | 10.59 | % | | 10/4/2022 | | 10/4/2028 | | 1,825 | | | — | | | — | | 0.0 | % |
OIS Management Services, LLC (~) | | SF | | 6.00 | % | 10.33 | % | | 12/14/2022 | | 11/16/2028 | | 10,000 | | | 9,751 | | | 9,750 | | 1.3 | % |
OIS Management Services, LLC (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.33 | % | | 12/14/2022 | | 11/16/2028 | | 3,846 | | | — | | | — | | 0.0 | % |
OIS Management Services, LLC (Revolver) (*) | | SF | | 6.00 | % | 10.33 | % | | 12/14/2022 | | 11/16/2028 | | 1,154 | | | — | | | — | | 0.0 | % |
QF Holdings, Inc. (~~) | | L | | 6.25 | % | 10.98 | % | | 9/19/2019 | | 12/15/2027 | | 4,550 | | | 4,516 | | | 4,555 | | 0.6 | % |
QF Holdings, Inc. (~~) | | L | | 6.25 | % | 11.02 | % | | 12/15/2021 | | 12/15/2027 | | 4,368 | | | 4,312 | | | 4,372 | | 0.6 | % |
QF Holdings, Inc. (~~) | | L | | 6.25 | % | 10.98 | % | | 9/19/2019 | | 12/15/2027 | | 910 | | | 910 | | | 911 | | 0.1 | % |
QF Holdings, Inc. (Delayed Draw) (*) (**) | | L | | 6.25 | % | 10.64 | % | | 8/21/2020 | | 12/15/2027 | | 910 | | | 692 | | | 692 | | 0.1 | % |
QF Holdings, Inc. (Revolver) (*) | | L | | 6.25 | % | 10.98 | % | | 9/19/2019 | | 12/15/2027 | | 1,092 | | | — | | | — | | 0.0 | % |
SCP Eye Care Holdco, LLC (~) | | SF | | 5.75 | % | 9.46 | % | | 10/7/2022 | | 10/5/2029 | | 9,255 | | | 8,982 | | | 8,977 | | 1.2 | % |
SCP Eye Care Holdco, LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 9.46 | % | | 10/7/2022 | | 10/5/2029 | | 8,053 | | | — | | | — | | 0.0 | % |
SCP Eye Care Holdco, LLC (Revolver) (*) | | SF | | 5.75 | % | 10.18 | % | | 10/7/2022 | | 10/5/2029 | | 1,442 | | | 120 | | | 117 | | 0.0 | % |
Seran BioScience, LLC (~) (~~) | | SF | | 6.25 | % | 9.96 | % | | 12/31/2020 | | 7/8/2027 | | 1,965 | | | 1,940 | | | 1,948 | | 0.3 | % |
Seran BioScience, LLC (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 10.67 | % | | 7/8/2022 | | 7/8/2027 | | 2,221 | | | 1,065 | | | 1,056 | | 0.1 | % |
Seran BioScience, LLC (Revolver) (*) | | SF | | 6.25 | % | 9.96 | % | | 12/31/2020 | | 7/8/2027 | | 356 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (~) (~~) | | L | | 5.75 | % | 9.99 | % | | 12/30/2021 | | 12/30/2026 | | 3,772 | | | 3,709 | | | 3,583 | | 0.5 | % |
SIP Care Services, LLC (Delayed Draw) (*) (**) | | L | | 5.75 | % | 9.99 | % | | 12/30/2021 | | 12/30/2026 | | 3,040 | | | — | | | — | | 0.0 | % |
SIP Care Services, LLC (Revolver) (*) | | L | | 5.75 | % | 10.07 | % | | 12/30/2021 | | 12/30/2026 | | 760 | | | 152 | | | 144 | | 0.0 | % |
Sound Inpatient Physicians, Inc. (~) (d) | | L | | 2.75 | % | 7.14 | % | | 10/12/2022 | | 6/28/2025 | | 2,821 | | | 2,321 | | | 2,309 | | 0.3 | % |
| | | | | | 7.86 | % Cash/ | | | | | | | | | | | | | | | |
TigerConnect, Inc. (~~) | | SF | | 7.25 | % | 3.63 | % PIK | | 2/16/2022 | | 2/16/2028 | | 10,000 | | | 9,823 | | | 9,875 | | 1.3 | % |
| | | | | | 7.86 | % Cash/ | | | | | | | | | | | | | | | |
TigerConnect, Inc. (Delayed Draw) (*) (**) | | SF | | 7.25 | % | 3.63 | % PIK | | 2/16/2022 | | 2/16/2028 | | 413 | | | 93 | | | 91 | | 0.0 | % |
TigerConnect, Inc. (Revolver) (*) | | SF | | 7.25 | % | 11.49 | % | | 2/16/2022 | | 2/16/2028 | | 1,429 | | | — | | | — | | 0.0 | % |
WebPT, Inc. (~~) | | L | | 6.75 | % | 11.48 | % | | 8/28/2019 | | 1/18/2028 | | 5,000 | | | 4,961 | | | 4,980 | | 0.7 | % |
WebPT, Inc. (Revolver) (*) | | L | | 6.75 | % | 11.91 | % | | 8/28/2019 | | 1/18/2028 | | 521 | | | 201 | | | 201 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (~~) | | SF | | 6.75 | % | 11.17 | % | | 6/3/2022 |
| 6/2/2028 |
| 21,000 | |
| 20,604 | |
| 20,801 |
| 2.8 | % |
Whistler Parent Holdings III, Inc. (Delayed Draw) (*) (**) | | SF | | 6.75 | % | 11.17 | % | | 6/3/2022 | | 6/2/2028 | | 6,563 | | | 262 | | | 260 | | 0.0 | % |
Whistler Parent Holdings III, Inc. (Revolver) (*) | | SF | | 6.75 | % | 11.17 | % | | 6/3/2022 |
| 6/2/2028 |
| 2,625 | |
| 394 | |
| 390 |
| 0.1 | % |
| | | | |
| |
| | |
| | | 251,080 | | | 186,738 | | | 187,117 | | 24.8 | % |
22
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition |
| | | | | | | | | | | % of | | |
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
High Tech Industries | | | |
|
|
|
| |
|
|
|
|
| |
|
| |
|
|
|
| |
Acquia Inc. (~~) | | L | | 7.00 | % | 10.74 | % | | 11/1/2019 |
| 10/31/2025 |
| 15,429 | | $ | 15,224 | | $ | 15,429 |
| 2.0 | % |
Acquia Inc. (Revolver) (*) | | L | | 7.00 | % | 12.15 | % | | 11/1/2019 | | 10/31/2025 | | 588 | | | 346 | | | 346 | | 0.0 | % |
| | | | | | 13.77 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (~) | | SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 | | 10,000 | | | 9,702 | | | 9,700 | | 1.3 | % |
| | | | | | 13.77 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Delayed Draw) (*) (**) | | SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 | | 3,333 | | | — | | | — | | 0.0 | % |
| | | | | | 13.77 | % Cash/ | | | | | | | | | | | | | | | |
Amelia Holding II, LLC (Revolver) (*) | | SF | | 10.26 | % | 1.00 | % PIK | | 12/21/2022 | | 12/21/2027 | | 667 | | | — | | | — | | 0.0 | % |
| | | | | | 8.17 | % Cash/ | | | | | | | | | | | | | | | |
Arcstor Midco, LLC (~) (~~) | | SF | | 7.60 | % | 3.75 | % PIK | | 3/16/2021 | | 3/16/2027 | | 12,075 | | | 11,897 | | | 10,992 | | 1.5 | % |
BTRS Holdings Inc (~) | | SF | | 8.00 | % | 12.50 | % | | 12/16/2022 | | 12/15/2028 | | 10,000 | | | 9,702 | | | 9,700 | | 1.3 | % |
BTRS Holdings Inc (Delayed Draw) (*) (**) | | SF | | 8.00 | % | 12.50 | % | | 12/16/2022 | | 12/15/2028 | | 845 | | | — | | | — | | 0.0 | % |
BTRS Holdings Inc (Revolver) (*) | | SF | | 8.00 | % | 12.50 | % | | 12/16/2022 | | 12/15/2028 | | 1,067 | | | — | | | — | | 0.0 | % |
Drawbridge Partners, LLC (~~) | | SF | | 7.00 | % | 11.56 | % PIK | | 9/1/2022 | | 9/1/2028 | | 15,000 | | | 14,714 | | | 14,854 | | 2.0 | % |
Drawbridge Partners, LLC (Delayed Draw) (*) (**) | | SF | | 7.00 | % | 11.56 | % PIK | | 9/1/2022 | | 9/1/2028 | | 1,649 | | | 514 | | | 509 | | 0.1 | % |
Drawbridge Partners, LLC (Revolver) (*) | | SF | | 7.00 | % | 11.56 | % | | 9/1/2022 | | 9/1/2028 | | 2,609 | | | — | | | — | | 0.0 | % |
Fueled Digital Media, LLC (~~~) | | SF | | 6.11 | % | 10.24 | % | | 11/1/2022 | | 11/1/2027 | | 5,753 | | | 5,612 | | | 5,609 | | 0.7 | % |
Fueled Digital Media, LLC (Delayed Draw) (*) (**) | | SF | | 6.11 | % | 10.24 | % | | 11/1/2022 | | 11/1/2027 | | 504 | | | — | | | — | | 0.0 | % |
Fueled Digital Media, LLC (Revolver) (*) | | SF | | 6.11 | % | 10.24 | % | | 11/1/2022 | | 11/1/2027 | | 807 | | | — | | | — | | 0.0 | % |
MarkLogic Corporation (~) | | SF | | 6.50 | % | 10.85 | % | | 5/10/2022 | | 10/20/2025 | | 4,003 | | | 3,935 | | | 3,985 | | 0.5 | % |
MarkLogic Corporation (~) (~~) | | SF | | 6.50 | % | 10.85 | % | | 10/20/2020 |
| 10/20/2025 |
| 5,145 | |
| 5,066 | |
| 5,121 |
| 0.7 | % |
MarkLogic Corporation (~) (~~) | | SF | | 6.50 | % | 10.85 | % | | 11/23/2021 |
| 10/20/2025 |
| 480 | |
| 473 | |
| 478 |
| 0.1 | % |
MarkLogic Corporation (~) | | SF | | 6.50 | % | 10.85 | % | | 11/23/2021 |
| 10/20/2025 |
| 321 | |
| 321 | |
| 320 |
| 0.0 | % |
MarkLogic Corporation (Revolver) (*) | | SF | | 6.50 | % | 10.85 | % | | 10/20/2020 |
| 10/20/2025 |
| 404 | |
| — | |
| — |
| 0.0 | % |
Matrix Parent, Inc. (~) | | SF | | 5.00 | % | 9.55 | % | | 11/2/2022 | | 3/1/2029 | | 2,494 | | | 2,272 | | | 2,057 | | 0.3 | % |
Medallia, Inc. (~~) | | L | | 6.50 | % | 10.88 | % PIK | | 8/15/2022 |
| 10/27/2028 |
| 11,270 | |
| 11,059 | |
| 11,225 |
| 1.5 | % |
Mindbody, Inc. (~~) | | L | | 7.00 | % | 11.73 | % | | 2/15/2019 | | 2/14/2025 | | 1,867 | | | 1,852 | | | 1,865 | | 0.2 | % |
Mindbody, Inc. (~~) | | L | | 7.00 | % | 11.73 | % | | 9/22/2021 |
| 2/14/2025 |
| 7,387 | |
| 7,387 | |
| 7,375 |
| 1.0 | % |
Mindbody, Inc. (Revolver) (*) | | L | | 7.00 | % | 11.73 | % | | 2/15/2019 |
| 2/14/2025 |
| 190 | |
| — | |
| — |
| 0.0 | % |
Optomi, LLC (~) | | SF | | 8.25 | % | 12.65 | % | | 12/13/2022 | | 12/16/2027 | | 5,668 | | | 5,499 | | | 5,668 | | 0.8 | % |
Optomi, LLC (~) (~~) | | L | | 5.50 | % | 9.24 | % | | 12/16/2021 | | 12/16/2027 | | 13,399 | | | 13,168 | | | 12,980 | | 1.7 | % |
Optomi, LLC (Revolver) (*) | | L | | 5.50 | % | 9.24 | % | | 12/16/2021 | | 12/16/2027 | | 3,189 | | | 1,063 | | | 1,030 | | 0.1 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 11.41 | % | | 4/20/2022 | | 4/22/2027 | | 3,702 | | | 3,636 | | | 3,642 | | 0.4 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 11.73 | % | | 4/22/2021 | | 4/22/2027 | | 8,400 | | | 8,269 | | | 8,264 | | 1.1 | % |
Securly, Inc. (~~) | | L | | 7.00 | % | 11.73 | % | | 4/22/2021 | | 4/22/2027 | | 1,938 | | | 1,938 | | | 1,907 | | 0.3 | % |
Securly, Inc. (Delayed Draw) (*) (**) | | L | | 7.00 | % | 11.69 | % | | 4/20/2022 | | 4/22/2027 | | 2,585 | | | 1,809 | | | 1,780 | | 0.2 | % |
Securly, Inc. (Revolver) (*) | | L | | 7.00 | % | 11.73 | % | | 4/22/2021 | | 4/22/2027 | | 969 | | | — | | | — | | 0.0 | % |
Transact Holdings Inc. (~) | | L | | 4.25 | % | 8.63 | % | | 4/18/2019 |
| 4/30/2026 |
| 718 | |
| 711 | |
| 687 |
| 0.1 | % |
Unanet, Inc. (~) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 |
| 12/8/2028 |
| 22,000 | |
| 21,565 | |
| 21,560 |
| 2.9 | % |
Unanet, Inc. (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 |
| 12/8/2028 |
| 6,947 | |
| — | |
| — |
| 0.0 | % |
Unanet, Inc. (Revolver) (*) | | SF | | 6.25 | % | 10.97 | % | | 12/9/2022 |
| 12/8/2028 |
| 2,316 | |
| — | |
| — |
| 0.0 | % |
Watchguard Technologies, Inc. (~) | | SF | | 5.25 | % | 9.57 | % | | 8/17/2022 |
| 6/29/2029 |
| 21,101 | |
| 19,752 | |
| 20,225 |
| 2.7 | % |
| | | | |
| |
| | |
| | | 206,819 | | | 177,486 | | | 177,308 | | 23.5 | % |
Hotels, Gaming & Leisure | | | |
|
|
|
| |
|
|
|
|
| |
|
| |
|
|
|
| |
Equine Network, LLC (~~) (~~~) | | SF | | 6.00 | % | 10.24 | % | | 12/31/2020 |
| 12/31/2025 |
| 1,474 | |
| 1,452 | |
| 1,465 |
| 0.2 | % |
Equine Network, LLC (~~) (~~~) | | SF | | 6.00 | % | 10.24 | % | | 1/29/2021 |
| 12/31/2025 |
| 668 | |
| 659 | |
| 664 |
| 0.1 | % |
Equine Network, LLC (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.24 | % | | 12/31/2020 |
| 12/31/2025 |
| 366 | |
| — | |
| — |
| 0.0 | % |
Equine Network, LLC (Revolver) (*) | | SF | | 6.00 | % | 10.30 | % | | 12/31/2020 |
| 12/31/2025 |
| 146 | |
| 110 | |
| 109 |
| 0.0 | % |
| | | | |
| |
| | |
| | | 2,654 | | | 2,221 | | | 2,238 | | 0.3 | % |
23
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
|
| | | |
| | |
| |
| |
| |
| | |
| | |
| | |
| | | | | | Interest | | Acquisition | | | | | | | | | Fair | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate | | Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Media: Advertising, Printing & Publishing | | | | | | | | | | | | | | | | | | | | | | |
95 Percent Buyer, LLC (~) (~~) (~~~) |
| L | | 5.50 | % | 9.62 | % | | 11/24/2021 |
| 11/24/2026 |
| 17,865 | | $ | 17,575 | | $ | 17,905 |
| 2.4 | % |
95 Percent Buyer, LLC (Revolver) (*) |
| L | | 5.50 | % | 9.62 | % | | 11/24/2021 |
| 11/24/2026 |
| 963 | |
| — | |
| — |
| 0.0 | % |
Calienger Holdings, L.L.C. (~~~) |
| SF | | 6.10 | % | 10.22 | % | | 10/21/2022 |
| 10/20/2028 |
| 5,000 | |
| 4,878 | |
| 4,875 |
| 0.6 | % |
Calienger Holdings, L.L.C. (Delayed Draw) (*) (**) |
| SF | | 6.10 | % | 10.22 | % | | 10/21/2022 |
| 10/20/2028 |
| 667 | |
| — | |
| — |
| 0.0 | % |
Calienger Holdings, L.L.C. (Revolver) (*) |
| SF | | 6.10 | % | 10.22 | % | | 10/21/2022 |
| 10/20/2028 |
| 909 | |
| — | |
| — |
| 0.0 | % |
CE Intermediate, LLC (~) |
| SF | | 5.50 | % | 10.09 | % | | 10/11/2022 |
| 7/1/2027 |
| 29,812 | |
| 29,092 | |
| 29,067 |
| 3.9 | % |
Madison Logic Holdings, Inc. (~) |
| SF | | 7.00 | % | 11.58 | % | | 12/30/2022 |
| 12/29/2028 |
| 14,000 | |
| 13,580 | |
| 13,580 |
| 1.8 | % |
Madison Logic Holdings, Inc. (Revolver) (*) |
| SF | | 7.00 | % | 11.58 | % | | 12/30/2022 |
| 12/30/2027 |
| 1,207 | |
| — | |
| — |
| 0.0 | % |
North Haven USHC Acquisition, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.18 | % | | 10/30/2020 |
| 10/30/2025 |
| 2,450 | |
| 2,419 | |
| 2,448 |
| 0.3 | % |
North Haven USHC Acquisition, Inc. (~) (~~) |
| SF | | 6.50 | % | 11.18 | % | | 3/12/2021 |
| 10/30/2025 |
| 710 | |
| 710 | |
| 709 |
| 0.1 | % |
North Haven USHC Acquisition, Inc. (~) |
| SF | | 6.50 | % | 11.18 | % | | 9/3/2021 |
| 10/30/2025 |
| 1,434 | |
| 1,434 | |
| 1,433 |
| 0.2 | % |
North Haven USHC Acquisition, Inc. (~) |
| SF | | 6.25 | % | 10.41 | % | | 7/29/2022 |
| 10/30/2025 |
| 2,592 | |
| 2,556 | |
| 2,575 |
| 0.3 | % |
North Haven USHC Acquisition, Inc. (Delayed Draw) (*) (**) |
| SF | | 6.50 | % | 11.18 | % | | 7/29/2022 |
| 10/30/2025 |
| 1,056 | |
| — | |
| — |
| 0.0 | % |
North Haven USHC Acquisition, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 11.13 | % | | 10/30/2020 |
| 10/30/2025 | | 416 | | | 187 | | | 187 | | 0.0 | % |
|
| | | | | 10.98 | % Cash/ | | |
| |
| | |
| | |
| |
| | |
NTM Acquisition Corp. (~~~) | | L | | 7.25 | % | 1.00 | % PIK | | 4/18/2019 | | 6/7/2024 | | 4,402 | | | 4,402 | | | 4,270 | | 0.6 | % |
Really Great Reading Company, Inc. (~) |
| SF | | 6.00 | % | 10.83 | % | | 12/9/2022 |
| 12/8/2028 |
| 12,000 | |
| 11,701 | |
| 11,700 |
| 1.5 | % |
Really Great Reading Company, Inc. (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.83 | % | | 12/9/2022 | | 12/8/2028 | | 2,526 | | | — | | | — | | 0.0 | % |
Really Great Reading Company, Inc. (Revolver) (*) |
| SF | | 6.00 | % | 10.83 | % | | 12/9/2022 |
| 12/8/2028 |
| 3,200 | |
| — | |
| — |
| 0.0 | % |
Relevate Health Group, LLC (~) (~~) | | SF | | 5.75 | % | 9.97 | % | | 11/20/2020 | | 11/20/2025 | | 1,965 | | | 1,940 | | | 1,933 | | 0.3 | % |
Relevate Health Group, LLC (~) |
| SF | | 5.75 | % | 9.97 | % | | 3/28/2022 |
| 11/20/2025 |
| 5,237 | |
| 5,150 | |
| 5,150 |
| 0.7 | % |
Relevate Health Group, LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 9.97 | % | | 11/20/2020 | | 11/20/2025 | | 1,037 | | | 879 | | | 865 | | 0.1 | % |
Relevate Health Group, LLC (Revolver) (*) |
| SF | | 5.75 | % | 9.97 | % | | 11/20/2020 |
| 11/20/2025 |
| 789 | |
| — | |
| — |
| 0.0 | % |
Spherix Global Inc. (~) (~~) |
| SF | | 6.00 | % | 10.24 | % | | 12/22/2021 |
| 12/22/2026 | | 4,466 | | | 4,402 | | | 4,450 | | 0.6 | % |
Spherix Global Inc. (Revolver) (*) |
| SF | | 6.00 | % | 10.24 | % | | 12/22/2021 |
| 12/22/2026 |
| 500 | |
| — | |
| — |
| 0.0 | % |
XanEdu Publishing, Inc. (~) (~~) |
| SF | | 6.50 | % | 10.94 | % | | 1/28/2020 |
| 1/28/2025 |
| 6,031 | |
| 5,962 | |
| 6,056 |
| 0.8 | % |
XanEdu Publishing, Inc. (~) |
| SF | | 6.50 | % | 10.94 | % | | 8/31/2022 |
| 1/28/2025 |
| 2,397 | |
| 2,344 | |
| 2,406 |
| 0.3 | % |
XanEdu Publishing, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 10.94 | % | | 1/28/2020 |
| 1/28/2025 |
| 977 | |
| — | |
| — |
| 0.0 | % |
|
| | | | | |
| | |
| |
| 124,608 | |
| 109,211 | |
| 109,609 |
| 14.5 | % |
Media: Broadcasting & Subscription |
| | |
| |
|
| | |
| |
|
| |
|
| |
|
|
|
| |
|
| | | | | 4.51 | % Cash/ | | |
| |
| | |
| | |
| |
| | |
Vice Group Holding Inc. |
| L | | 12.00 | % | 12.00 | % PIK | | 5/2/2019 |
| 5/12/2023 |
| 1,268 | |
| 1,268 | |
| 1,243 |
| 0.2 | % |
|
| | | | | 4.42 | % Cash/ | | |
| |
| | |
| | |
| |
| | |
Vice Group Holding Inc. |
| L | | 12.00 | % | 12.00 | % PIK | | 5/2/2019 |
| 5/12/2023 |
| 398 | |
| 398 | |
| 390 |
| 0.1 | % |
|
| | | | | 4.25 | % Cash/ | | |
| |
| | |
| | |
| |
| | |
Vice Group Holding Inc. |
| L | | 12.00 | % | 12.00 | % PIK | | 5/2/2019 |
| 5/12/2023 |
| 150 | |
| 150 | |
| 147 |
| 0.0 | % |
|
| | | | | 4.51 | % Cash/ | | |
| |
| | |
| | |
| |
| | |
Vice Group Holding Inc. |
| L | | 12.00 | % | 12.00 | % PIK | | 11/4/2019 |
| 5/12/2023 | | 243 | | | 243 | | | 239 | | 0.0 | % |
|
| | | | | |
| | |
| |
| 2,059 | |
| 2,059 | |
| 2,019 |
| 0.3 | % |
Media: Diversified & Production | | | |
| |
|
| | | | | |
| | |
| | |
| |
| |
Bonterra, LLC (fka Cybergrants Holdings) (~~) |
| L | | 6.25 | % | 10.98 | % | | 9/8/2021 |
| 9/8/2027 | | 18,555 | | | 18,637 | |
| 18,432 |
| 2.4 | % |
Bonterra, LLC (fka Cybergrants Holdings) (Delayed Draw) (*) (**) | | L | | 6.25 | % | 10.98 | % | | 9/8/2021 | | 9/8/2027 | | 1,759 | | | — | | | — | | 0.0 | % |
Bonterra, LLC (fka Cybergrants Holdings) (Revolver) (*) |
| L | | 6.25 | % | 10.98 | % | | 9/8/2021 |
| 9/8/2027 |
| 1,814 | |
| 674 | |
| 659 |
| 0.1 | % |
Chess.com, LLC (~~) (~~~) | | L | | 6.50 | % | 11.23 | % | | 12/31/2021 | | 12/31/2027 | | 12,902 | | | 12,679 | | | 12,709 | | 1.7 | % |
Chess.com, LLC (Revolver) (*) |
| L | | 6.50 | % | 11.23 | % | | 12/31/2021 |
| 12/31/2027 |
| 1,413 | |
| — | |
| — |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) | | SF | | 7.25 | % | 11.47 | % | | 2/28/2019 | | 2/28/2025 | | 1,000 | | | 995 | | | 1,000 | | 0.1 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 11.47 | % | | 2/28/2019 |
| 2/28/2025 |
| 15 | |
| 15 | |
| 15 |
| 0.0 | % |
Crownpeak Technology, Inc. (~~) |
| SF | | 7.25 | % | 11.47 | % | | 9/27/2022 |
| 2/28/2025 | | 318 | | | 313 | | | 318 | | 0.0 | % |
Crownpeak Technology, Inc. (~) | | SF | | 7.25 | % | 11.41 | % | | 9/27/2022 | | 2/28/2025 | | 833 | | | 833 | | | 833 | | 0.1 | % |
Crownpeak Technology, Inc. (Revolver) (*) | | SF | | 7.25 | % | 11.47 | % | | 2/28/2019 | | 2/28/2025 | | 125 | | | — | | | — | | 0.0 | % |
Research Now Group, Inc. and Survey Sampling International, LLC (~) (d) | | L | | 5.50 | % | 9.89 | % | | 11/28/2022 | | 12/20/2024 | | 2,493 | | | 2,257 | | | 1,888 | | 0.3 | % |
Spectrum Science Communications, LLC (~~~) | | SF | | 6.25 | % | 10.92 | % | | 1/25/2022 | | 1/25/2027 | | 2,985 | | | 2,936 | | | 3,015 | | 0.4 | % |
Spectrum Science Communications, LLC (Revolver) (*) | | SF | | 6.25 | % | 10.92 | % | | 1/25/2022 | | 1/25/2027 | | 600 | | | — | | | — | | 0.0 | % |
Sports Operating Holdings II, LLC (~) | | SF | | 5.75 | % | 10.17 | % | | 11/3/2022 | | 11/3/2027 | | 4,988 | | | 4,866 | | | 4,863 | | 0.6 | % |
Sports Operating Holdings II, LLC (Delayed Draw) (*) (**) | | SF | | 5.75 | % | 10.17 | % | | 11/3/2022 | | 11/3/2027 | | 4,000 | | | — | | | — | | 0.0 | % |
Sports Operating Holdings II, LLC (Revolver) (*) | | SF | | 5.75 | % | 10.17 | % | | 11/3/2022 | | 11/3/2027 | | 865 | | | — | | | — | | 0.0 | % |
Streamland Media MidCo LLC (~) (~~) | | SF | | 6.75 | % | 11.11 | % | | 8/26/2019 | | 8/31/2023 | | 1,974 | | | 1,961 | | | 1,974 | | 0.3 | % |
Streamland Media MidCo LLC (~) | | SF | | 6.75 | % | 11.11 | % | | 3/7/2022 | | 8/31/2023 | | 535 | | | 526 | | | 535 | | 0.1 | % |
| | | | | | | | | | | | | 57,174 | | | 46,692 | | | 46,241 | | 6.1 | % |
24
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | Fair Value | | % of | | |||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) |
| |||
Services: Business |
| | | | | | | | | | |
| |
| | |
| | |
| | |
Aperture Companies, LLC (~~) (~~~) | | L | | 6.25 | % | 10.37 | % | | 12/31/2021 | | 12/31/2026 | | 14,888 | | $ | 14,639 | | $ | 14,272 | | 1.9 | % |
Aperture Companies, LLC (~~) |
| L | | 6.25 | % | 10.58 | % | | 12/31/2021 | | 12/31/2026 |
| 4,320 |
| | 4,320 |
| | 4,142 |
| 0.6 | % |
Aperture Companies, LLC (Revolver) (*) | | L | | 6.25 | % | 10.37 | % | | 12/31/2021 | | 12/31/2026 | | 1,347 | | | — | | | — | | 0.0 | % |
|
| | | | | 7.16 | % Cash/ | | | | |
| |
| | |
| | |
| | |
Aras Corporation (~) | | L | | 7.00 | % | 3.75 | % PIK | | 4/13/2021 | | 4/13/2027 | | 4,669 | | | 4,607 | | | 4,696 | | 0.6 | % |
Aras Corporation (Revolver) (*) |
| L | | 6.50 | % | 9.50 | % | | 4/13/2021 | | 4/13/2027 |
| 325 |
| | 108 |
| | 108 |
| 0.0 | % |
Argano, LLC (~~) (~~~) | | SF | | 5.50 | % | 9.72 | % | | 6/10/2021 | | 6/10/2026 | | 8,986 | | | 8,854 | | | 8,885 | | 1.2 | % |
Argano, LLC (~) (~~~) |
| SF | | 5.50 | % | 9.72 | % | | 6/10/2021 | | 6/10/2026 |
| 3,979 |
| | 3,979 |
| | 3,934 |
| 0.5 | % |
Argano, LLC (~) | | SF | | 5.50 | % | 9.72 | % | | 10/7/2022 | | 6/10/2026 | | 689 | | | 670 | | | 682 | | 0.1 | % |
Argano, LLC (~) |
| SF | | 5.50 | % | 9.72 | % | | 3/16/2022 | | 6/10/2026 |
| 4,757 |
| | 4,757 |
| | 4,704 |
| 0.6 | % |
Argano, LLC (Revolver) (*) |
| SF | | 5.50 | % | 9.72 | % | | 6/10/2021 | | 6/10/2026 | | 965 |
| | 502 |
| | 496 |
| 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) |
| L | | 6.75 | % | 11.48 | % PIK | | 9/21/2021 | | 9/21/2027 | | 16,027 |
| | 15,773 |
| | 15,847 |
| 2.1 | % |
ecMarket Inc. and Conexiom US Inc. (~~) (<) (b) | | L | | 6.75 | % | 11.48 | % PIK | | 9/21/2021 | | 9/21/2027 | | 1,291 | | | 1,291 | | | 1,276 | | 0.2 | % |
ecMarket Inc. and Conexiom US Inc. (Revolver) (<) (*) (b) |
| L | | 6.75 | % | 11.48 | % | | 9/21/2021 | | 9/21/2027 |
| 2,067 |
| | — |
| | — |
| 0.0 | % |
Edustaff, LLC (~) |
| SF | | 6.10 | % | 10.42 | % | | 12/8/2022 | | 12/8/2027 |
| 13,000 |
| | 12,646 |
| | 12,643 |
| 1.7 | % |
Edustaff, LLC (Revolver) (*) |
| SF | | 6.10 | % | 10.42 | % | | 12/8/2022 | | 12/8/2027 |
| 2,364 |
| | — |
| | — |
| 0.0 | % |
FusionSite Services LLC (~) |
| SF | | 5.50 | % | 9.06 | % | | 10/4/2022 | | 10/4/2027 | | 16,098 |
| | 15,786 |
| | 15,777 |
| 2.1 | % |
FusionSite Services LLC (Delayed Draw) (*) (**) | | SF | | 5.50 | % | 9.91 | % | | 10/4/2022 | | 10/4/2027 | | 7,576 | | | 2,576 | | | 2,524 | | 0.3 | % |
FusionSite Services LLC (Revolver) (*) | | SF | | 5.50 | % | 9.06 | % | | 10/4/2022 | | 10/4/2027 | | 1,326 | | | — | | | — | | 0.0 | % |
HS4 Acquisitionco, Inc. (~~) | | L | | 6.75 | % | 11.14 | % | | 7/9/2019 | | 7/9/2025 | | 3,940 | | | 3,901 | | | 3,922 | | 0.5 | % |
HS4 Acquisitionco, Inc. (~~) | | L | | 6.75 | % | 11.14 | % | | 10/6/2021 | | 7/9/2025 | | 4,280 | | | 4,280 | | | 4,261 | | 0.6 | % |
HS4 Acquisitionco, Inc. (Revolver) (*) | | L | | 6.75 | % | 11.14 | % | | 7/9/2019 | | 7/9/2025 | | 325 | | | 163 | | | 162 | | 0.0 | % |
iCIMS, Inc. (~~) | | SF | | 7.25 | % | 11.52 | % | | 10/24/2022 | | 8/18/2028 | | 8,000 | | | 7,861 | | | 7,860 | | 1.0 | % |
Kingsley Gate Partners, LLC (~) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,000 | | | 2,941 | | | 2,940 | | 0.4 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,600 | | | — | | | — | | 0.0 | % |
Kingsley Gate Partners, LLC (Delayed Draw) (*) (**) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 3,000 | | | — | | | — | | 0.0 | % |
Kingsley Gate Partners, LLC (Revolver) (*) | | SF | | 6.65 | % | 11.12 | % | | 12/9/2022 | | 12/11/2028 | | 1,200 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (~) | | SF | | 6.00 | % | 10.32 | % | | 9/30/2022 | | 8/4/2028 | | 7,000 | | | 6,864 | | | 7,000 | | 0.9 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.32 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Delayed Draw) (*) (**) | | SF | | 6.00 | % | 10.32 | % | | 9/30/2022 | | 8/4/2028 | | 2,333 | | | — | | | — | | 0.0 | % |
Moonraker Acquisitionco LLC (Revolver) (*) | | SF | | 6.00 | % | 10.32 | % | | 9/30/2022 | | 8/4/2028 | | 933 | | | — | | | — | | 0.0 | % |
Prototek LLC (~) | | SF | | 6.50 | % | 10.83 | % | | 12/8/2022 | | 12/8/2027 | | 8,000 | | | 7,761 | | | 7,760 | | 1.0 | % |
Prototek LLC (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 10.83 | % | | 12/8/2022 | | 12/8/2027 | | 2,457 | | | — | | | — | | 0.0 | % |
Prototek LLC (Revolver) (*) | | SF | | 6.50 | % | 10.83 | % | | 12/8/2022 | | 12/8/2027 | | 1,843 | | | — | | | — | | 0.0 | % |
Relativity ODA LLC (~) | | L | | 7.50 | % | 11.89 | % PIK | | 5/12/2021 | | 5/12/2027 | | 5,154 | | | 5,059 | | | 5,151 | | 0.7 | % |
Relativity ODA LLC (Revolver) (*) | | L | | 7.50 | % | 11.89 | % PIK | | 5/12/2021 | | 5/12/2027 | | 450 | | | — | | | — | | 0.0 | % |
Sundance Group Holdings, Inc. (~~) | | SF | | 6.25 | % | 10.75 | % | | 7/2/2021 | | 7/2/2027 | | 4,148 | | | 4,080 | | | 4,131 | | 0.5 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 10.93 | % | | 11/30/2022 | | 7/2/2027 | | 166 | | | 161 | | | 165 | | 0.0 | % |
Sundance Group Holdings, Inc. (~) | | SF | | 6.25 | % | 10.75 | % | | 7/2/2021 | | 7/2/2027 | | 1,244 | | | 1,244 | | | 1,239 | | 0.2 | % |
Sundance Group Holdings, Inc. (Revolver) (*) | | SF | | 6.25 | % | 10.75 | % | | 7/2/2021 | | 7/2/2027 | | 498 | | | — | | | — | | 0.0 | % |
Thryv, Inc. (~) (<) (d) | | L | | 8.50 | % | 12.89 | % | | 9/7/2022 | | 3/1/2026 | | 9,213 | | | 9,121 | | | 9,102 | | 1.2 | % |
| | | | | | | | | | | | | 177,791 | | | 143,944 | | | 143,679 | | 19.0 | % |
Services: Consumer |
| | |
|
|
|
| |
|
|
|
|
|
| |
|
| |
|
|
| |
Clydesdale Holdings, LLC (~) (~~~) |
| SF | | 5.50 | % | 9.01 | % | | 6/24/2022 | | 6/23/2028 |
| 14,962 |
| | 14,681 |
| | 14,873 |
| 2.0 | % |
Clydesdale Holdings, LLC (Delayed Draw) (*) (**) |
| SF | | 5.50 | % | 9.95 | % | | 6/24/2022 | | 6/23/2028 |
| 21,221 |
| | 11,721 |
| | 11,650 |
| 1.5 | % |
Clydesdale Holdings, LLC (Revolver) (*) |
| SF | | 5.50 | % | 9.95 | % | | 6/24/2022 | | 6/23/2028 |
| 4,523 |
| | — |
| | — |
| 0.0 | % |
Denali Midco 2, LLC |
| SF | | 6.50 | % | 10.92 | % | | 9/13/2022 | | 12/22/2027 |
| 12,469 |
| | 12,110 |
| | 12,450 |
| 1.7 | % |
Denali Midco 2, LLC (Delayed Draw) (*) (**) |
| SF | | 6.50 | % | 10.92 | % | | 9/13/2022 | | 12/22/2027 | | 12,500 |
| | 2,500 |
| | 2,496 |
| 0.3 | % |
Express Wash Acquisition Company, LLC (~) |
| SF | | 6.50 | % | 10.32 | % | | 7/14/2022 | | 7/14/2028 |
| 11,529 |
| | 11,464 |
| | 11,471 |
| 1.5 | % |
Express Wash Acquisition Company, LLC |
| SF | | 6.50 | % | 10.43 | % | | 7/14/2022 | | 7/14/2028 |
| 2,160 |
| | 2,160 |
| | 2,149 |
| 0.3 | % |
Express Wash Acquisition Company, LLC (Revolver) (*) |
| SF | | 6.50 | % | 10.83 | % | | 7/14/2022 | | 7/14/2028 |
| 536 |
| | 295 |
| | 293 |
| 0.0 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.32 | % | | 8/1/2019 | | 1/2/2024 |
| 2,029 |
| | 2,021 |
| | 2,027 |
| 0.3 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.32 | % | | 5/3/2021 | | 1/2/2024 |
| 1,469 |
| | 1,469 |
| | 1,468 |
| 0.2 | % |
Light Wave Dental Management, LLC (~) (~~) |
| SF | | 6.50 | % | 11.32 | % | | 8/3/2021 | | 1/2/2024 | | 1,356 |
| | 1,344 |
| | 1,354 |
| 0.2 | % |
Light Wave Dental Management, LLC (~) |
| SF | | 6.50 | % | 11.32 | % | | 8/3/2021 | | 1/2/2024 |
| 3,382 |
| | 3,382 |
| | 3,379 |
| 0.5 | % |
Light Wave Dental Management, LLC (Delayed Draw) (~) (*) (**) |
| SF | | 6.50 | % | 11.32 | % | | 6/24/2022 | | 1/2/2024 |
| 11,464 |
| | 3,298 |
| | 3,295 |
| 0.4 | % |
Light Wave Dental Management, LLC (Revolver) |
| SF | | 6.50 | % | 11.32 | % | | 5/3/2021 | | 1/2/2024 | | 187 |
| | 187 |
| | 187 |
| 0.0 | % |
Pacific Bells, LLC (~) |
| SF | | 4.50 | % | 9.34 | % | | 11/2/2022 | | 11/10/2028 |
| 2,939 |
| | 2,754 |
| | 2,770 |
| 0.4 | % |
Viad Corp (~) (<) |
| L | | 5.00 | % | 9.38 | % | | 9/12/2022 | | 7/30/2028 |
| 4,975 |
| | 4,865 |
| | 4,718 |
| 0.6 | % |
|
| | | | | | | | | | |
| 107,701 |
| | 74,251 |
| | 74,580 |
| 9.9 | % |
25
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | Amortized | | | | % of | | |||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Telecommunications | | | | | | | | | | | | | | | | | | | | | | |
American Broadband and Telecommunications | | | | | | 17.50 | % Cash/ | | | | | | | | | | | | | | | |
Company LLC (Delayed Draw) (~) (*) (**) | | P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 | | 3,377 | | $ | 3,043 | | $ | 3,079 | | 0.4 | % |
American Broadband and Telecommunications | | | | | | 17.50 | % Cash/ | | | | | | | | | | | | | | | |
Company LLC (Revolver) (*) | | P | | 12.00 | % | 2.00 | % PIK | | 6/10/2022 | | 6/10/2025 | | 1,000 | | | 242 | | | 236 | | 0.0 | % |
Calabrio, Inc. (~~) | | L | | 7.00 | % | 11.73 | % | | 4/16/2021 | | 4/16/2027 | | 8,000 | | | 7,844 | | | 7,950 | | 1.1 | % |
Calabrio, Inc. (Revolver) (*) | | L | | 7.00 | % | 11.75 | % | | 4/16/2021 | | 4/16/2027 | | 963 | | | 551 | | | 547 | | 0.1 | % |
DataOnline Corp. (~) (~~) | | L | | 6.25 | % | 10.98 | % | | 11/13/2019 | | 11/13/2025 | | 6,305 | | | 6,233 | | | 6,084 | | 0.8 | % |
DataOnline Corp. (Revolver) | | L | | 6.25 | % | 10.98 | % | | 11/13/2019 | | 11/13/2025 | | 844 | | | 844 | | | 815 | | 0.1 | % |
EOS Finco S.A.R.L. (~~~) (<) (b) |
| SF | | 6.00 | % | 9.61 | % | | 8/3/2022 |
| 8/20/2027 |
| 1,250 | |
| 1,153 | |
| 1,220 |
| 0.2 | % |
Patagonia Holdco LLC (~) (<) (b) |
| SF | | 5.75 | % | 9.96 | % | | 8/5/2022 | | 8/1/2029 |
| 14,963 | | | 12,355 | | | 12,026 | | 1.6 | % |
Sandvine Corporation (~) | | L | | 4.50 | % | 8.88 | % | | 3/8/2021 | | 10/31/2025 | | 1,159 | | | 1,159 | | | 1,104 | | 0.1 | % |
| | | | | | | | | | | | | 37,861 | | | 33,424 | | | 33,061 | | 4.4 | % |
Transportation: Cargo | | | | | | | | | | | | | | | | | | | | | | |
Complete Innovations Inc. (~) (<) (a) (b) | | C | | 6.75 | % | 11.36 | % | | 12/16/2020 | | 12/16/2025 | | 8,116 | | | 8,518 | | | 8,080 | | 1.1 | % |
Complete Innovations Inc. (~) (<) (a) (b) | | C | | 6.75 | % | 11.36 | % | | 12/16/2020 | | 12/16/2025 | | 1,029 | | | 1,101 | | | 1,025 | | 0.1 | % |
Fiasco Enterprises, LLC (~~~) | | SF | | 5.61 | % | 9.74 | % | | 5/6/2022 | | 5/6/2027 | | 6,983 | | | 6,871 | | | 6,965 | | 0.9 | % |
Fiasco Enterprises, LLC (~) | | SF | | 6.61 | % | 10.95 | % | | 12/15/2022 | | 5/6/2027 | | 8,400 | | | 8,149 | | | 8,404 | | 1.1 | % |
Fiasco Enterprises, LLC (Revolver) (*) | | SF | | 5.61 | % | 9.74 | % | | 5/6/2022 | | 5/6/2027 | | 1,750 | | | — | | | — | | 0.0 | % |
Kenco PPC Buyer LLC (~) | | SF | | 5.50 | % | 9.77 | % | | 11/17/2022 | | 11/15/2029 | | 21,941 | | | 21,401 | | | 21,393 | | 2.8 | % |
Kenco PPC Buyer LLC (Delayed Draw) (*) (**) | | SF | | 5.50 | % | 9.77 | % | | 11/17/2022 | | 11/15/2029 | | 3,870 | | | — | | | — | | 0.0 | % |
Kenco PPC Buyer LLC (Revolver) (*) | | SF | | 5.50 | % | 9.77 | % | | 11/17/2022 | | 11/15/2029 | | 4,787 | | | — | | | — | | 0.0 | % |
Randys Holdings, Inc. | | SF | | 6.50 | % | 10.59 | % | | 11/1/2022 | | 11/1/2028 | | 17,045 | | | 16,542 | | | 16,534 | | 2.2 | % |
Randys Holdings, Inc. (Delayed Draw) (*) (**) | | SF | | 6.50 | % | 10.59 | % | | 11/1/2022 | | 11/1/2028 | | 5,682 | | | — | | | — | | 0.0 | % |
Randys Holdings, Inc. (Revolver) (*) |
| SF | | 6.50 | % | 10.59 | % | | 11/1/2022 |
| 11/1/2028 |
| 2,273 | | | 358 | |
| 347 |
| 0.0 | % |
RS Acquisition, LLC (~) (~~) (~~~) | | L | | 6.00 | % | 10.12 | % | | 12/13/2021 | | 12/14/2026 | | 10,918 | | | 10,738 | | | 10,634 | | 1.4 | % |
RS Acquisition, LLC (Delayed Draw) (~) (*) (**) | | L | | 6.00 | % | 10.12 | % | | 12/13/2021 | | 12/14/2026 | | 10,073 | | | 8,303 | | | 8,087 | | 1.1 | % |
RS Acquisition, LLC (Revolver) (*) | | L | | 6.00 | % | 10.12 | % | | 12/13/2021 | | 12/14/2026 | | 1,264 | | | 910 | | | 887 | | 0.1 | % |
| | | | | | | | | | | | | 104,131 | | | 82,891 | | | 82,356 | | 10.8 | % |
Wholesale | | | | | | | | | | | | | | | | | | | | | | |
IF & P Holdings Company, LLC (~) (~~~) | | SF | | 5.25 | % | 8.91 | % | | 10/6/2022 | | 10/3/2028 | | 23,867 | | | 23,288 | | | 23,270 | | 3.1 | % |
IF & P Holdings Company, LLC (Revolver) (*) | | SF | | 5.25 | % | 10.09 | % | | 10/6/2022 | | 10/3/2028 | | 2,800 | | | 1,120 | | | 1,092 | | 0.1 | % |
S&S Holdings LLC (~) | | L | | 5.00 | % | 9.29 | % | | 3/10/2021 | | 3/10/2028 | | 2,947 | | | 2,876 | | | 2,695 | | 0.4 | % |
| | | | | | | | | | | | | 29,614 | | | 27,284 | | | 27,057 | | 3.6 | % |
Total Non-Controlled/Non-Affiliate Senior Secured Loans | | | | | | | | | | | | | 1,536,058 | | | 1,238,738 | | | 1,237,432 | | 163.9 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Unitranche Secured Loans (<<) | | | | | | | | | | | | | | | | | | | | | | |
Aerospace & Defense | | | | | | | | | | | | | | | | | | | | | | |
Cassavant Holdings, LLC (~) (~~) | | L | | 6.50 | % | 10.62 | % | | 9/8/2021 | | 9/8/2026 | | 13,265 | | | 13,058 | | | 13,013 | | 1.7 | % |
| | | | | | | | | | | | | 13,265 | | | 13,058 | | | 13,013 | | 1.7 | % |
Construction & Building | | | | | | | | | | | | | | | | | | | | | | |
Inversiones DP6 (BVI) Numero Dos, Ltd. (Delayed | | | | | | 9.00 | % Cash/ | | | | | | | | | | | | | | | |
Draw) (<) (*) (**) (b) | | n/a | | n/a | | 4.75 | % PIK | | 10/14/2022 | | 10/14/2026 | | 25,101 | | | 15,977 | | | 15,817 | | 2.1 | % |
| | | | | | | | | | | | | 25,101 | | | 15,977 | | | 15,817 | | 2.1 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | | | | |
Jumpstart Holdco, Inc. (~) | | SF | | 5.65 | % | 9.61 | % | | 4/19/2022 | | 4/19/2028 | | 23,441 | | | 23,010 | | | 21,857 | | 2.9 | % |
| | | | | | | | | | | | | 23,441 | | | 23,010 | | | 21,857 | | 2.9 | % |
Environmental Industries | | | | | | | | | | | | | | | | | | | | | | |
StormTrap, LLC (~) (~~~) | | SF | | 5.00 | % | 9.22 | % | | 3/25/2022 | | 3/24/2028 | | 7,516 | | | 7,397 | | | 7,516 | | 1.0 | % |
StormTrap, LLC (Delayed Draw) (*) (**) | | SF | | 5.00 | % | 9.22 | % | | 3/25/2022 | | 3/24/2028 | | 2,222 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 9,738 | | | 7,397 | | | 7,516 | | 1.0 | % |
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | | | | |
Evolve Biologics Inc. (~) (<) | | SF | | 8.00 | % | 12.32 | % | | 12/20/2022 | | 12/18/2026 | | 17,271 | | | 16,925 | | | 16,925 | | 2.2 | % |
Evolve Biologics Inc. (Delayed Draw) (<) (*) (**) | | SF | | 8.00 | % | 12.32 | % | | 12/20/2022 | | 12/18/2026 | | 19,411 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 36,682 | | | 16,925 | | | 16,925 | | 2.2 | % |
Media: Advertising, Printing & Publishing | | | | | | | | | | | | | | | | | | | | | | |
New Engen, Inc. (~) (~~) | | SF | | 5.00 | % | 9.24 | % | | 12/3/2021 | | 12/3/2026 | | 9,429 | | | 9,293 | | | 9,327 | | 1.3 | % |
New Engen, Inc. (~) (~~) | | SF | | 5.00 | % | 9.24 | % | | 12/27/2021 | | 12/3/2026 | | 7,962 | | | 7,962 | | | 7,877 | | 1.0 | % |
| | | | | | | | | | | | | 17,391 | | | 17,255 | | | 17,204 | | 2.3 | % |
Services: Business | | | | | | | | | | | | | | | | | | | | | | |
ASG II, LLC (~~) | | SF | | 6.25 | % | 10.67 | % | | 5/25/2022 | | 5/25/2028 | | 15,000 | | | 14,720 | | | 15,000 | | 2.0 | % |
ASG II, LLC (Delayed Draw) (*) (**) | | SF | | 6.25 | % | 10.67 | % | | 5/25/2022 | | 5/25/2028 | | 2,250 | | | 405 | | | 405 | | 0.1 | % |
Onit, Inc. (~~) | | SF | | 7.25 | % | 12.30 | % | | 12/20/2021 | | 5/2/2025 | | 16,800 | | | 16,566 | | | 16,632 | | 2.2 | % |
| | | | | | | | | | | | | 34,050 | | | 31,691 | | | 32,037 | | 4.3 | % |
Telecommunications | | | | | | | | | | | | | | | | | | | | | | |
VB E1, LLC (~) | | L | | 7.65 | % | 12.38 | % | | 11/18/2020 | | 11/18/2026 | | 3,000 | | | 3,000 | | | 3,009 | | 0.4 | % |
| | | | | | | | | | | | | 3,000 | | | 3,000 | | | 3,009 | | 0.4 | % |
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans | | | | | | | | | | | | | 162,668 | | | 128,313 | | | 127,378 | | 16.9 | % |
26
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| |
| | |
| |
| |
| |
| | |
| | |
| | |
| |
| | |
| |
| |
| |
| | |
| | |
| | | ||||
| | | | | | Interest | | Acquisition |
| | | | | | | | | | | % of | | | | | | | Interest | | Acquisition |
| | | | | | | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Amortized Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) | | Maturity | | Principal | | Amortized Cost | | Fair Value (˄˄˄˄) | | Net Assets (˄˄˄˄˄) | | ||||||
Junior Secured Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Banking |
| |
| | | | | | |
| |
| | | | | | | | | | |
| |
| | | | | | |
| |
| | | | | | | | | | |
MoneyLion, Inc. (~) (<) |
| SF |
| 9.25 | % | 14.07 | % | | 3/25/2022 |
| 3/24/2026 | | 18,750 | | $ | 18,583 | | $ | 18,445 | | 2.5 | % |
| SF |
| 9.25 | % | 14.07 | % | | 3/25/2022 |
| 3/24/2026 | | 18,750 | | $ | 18,583 | | $ | 18,445 | | 2.5 | % |
MoneyLion, Inc. (~) (<) | | P | | 5.75 | % | 13.25 | % | | 8/27/2021 | | 5/1/2023 | | 2,500 | | | 2,484 | | | 2,497 | | 0.3 | % | | P | | 5.75 | % | 13.25 | % | | 8/27/2021 | | 5/1/2023 | | 2,500 | | | 2,484 | | | 2,497 | | 0.3 | % |
MoneyLion, Inc. (Delayed Draw) (<) (*) (**) |
| SF |
| 9.25 | % | 14.07 | % | | 3/25/2022 |
| 3/24/2026 |
| 5,357 | |
| — | |
| — |
| 0.0 | % |
| SF |
| 9.25 | % | 14.07 | % | | 3/25/2022 |
| 3/24/2026 |
| 5,357 | |
| — | |
| — |
| 0.0 | % |
|
| |
| |
| |
| | |
| | | 26,607 | | | 21,067 | | | 20,942 | | 2.8 | % |
| |
| |
| |
| | |
| | | 26,607 | | | 21,067 | | | 20,942 | | 2.8 | % |
FIRE: Real Estate |
| |
| |
| |
| | |
| | | | | | | | | | | | |
| |
| |
| |
| | |
| | | | | | | | | | | | |
Florida East Coast Industries, LLC (<) | | n/a | | n/a | | 16.00 | %PIK | | 8/9/2021 | | 6/28/2024 | | 3,910 | | | 3,857 | | | 3,925 | | 0.5 | % | | n/a | | n/a | | 16.00 | % PIK | | 8/9/2021 | | 6/28/2024 | | 3,910 | | | 3,857 | | | 3,925 | | 0.5 | % |
| | | | | | 8.00 | % Cash/ | | | | | | | | | | | | | | | | | | | | | 8.00 | % Cash/ | | | | | | | | | | | | | | | |
Witkoff/Monroe 700 JV LLC (Delayed Draw) (<) (*) (**) | | n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | 7/2/2026 | | 9,373 | | | 8,404 | | | 8,404 | | 1.1 | % | | n/a | | n/a | | 4.00 | % PIK | | 7/2/2021 | | 7/2/2026 | | 9,373 | | | 8,404 | | | 8,404 | | 1.1 | % |
| | | | | | | | | | | | | 13,283 | | | 12,261 | | | 12,329 | | 1.6 | % | | | | | | | | | | | | | 13,283 | | | 12,261 | | | 12,329 | | 1.6 | % |
Services: Consumer |
| |
| |
| | | | | | | | | | | | | | | | | |
| |
| |
| | | | | | | | | | | | | | | | | |
Light Wave Dental Management, LLC |
| n/a |
| n/a |
| n/a | (k) | | 12/6/2022 | | 9/30/2023 | | 2,479 | | | 2,479 | | | 3,032 | | 0.4 | % |
| n/a |
| n/a |
| n/a | (k) | | 12/6/2022 | | 9/30/2023 | | 2,479 | | | 2,479 | | | 3,032 | | 0.4 | % |
| | | | | | | | | | | | | 2,479 | | | 2,479 | | | 3,032 | | 0.4 | % | | | | | | | | | | | | | 2,479 | | | 2,479 | | | 3,032 | | 0.4 | % |
Total Non-Controlled/Non-Affiliate Junior Secured Loans | | | | | | | | | | | | | 42,369 | | | 35,807 | | | 36,303 | | 4.8 | % | | | | | | | | | | | | | 42,369 | | | 35,807 | | | 36,303 | | 4.8 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equity Securities (#) (##) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Automotive |
| |
| |
| | | | |
| |
| | | | | | | | | | |
| |
| |
| | | | |
| |
| | | | | | | | | | |
Born To Run, LLC (692,841 Class A units) | | — | | — | | — | (###) | | 4/1/2021 | | — | | — | | | 693 | | | 600 | | 0.1 | % | | — | | — | | — | (###) | | 4/1/2021 | | — | | — | | | 693 | | | 600 | | 0.1 | % |
Lifted Trucks Holdings, LLC (158,730 Class A shares) (####) |
| — |
| — |
| — | (###) | | 8/2/2021 |
| — |
| — | |
| 159 | |
| 111 |
| 0.0 | % |
| — |
| — |
| — | (###) | | 8/2/2021 |
| — |
| — | |
| 159 | |
| 111 |
| 0.0 | % |
|
| |
| |
| |
| | |
| | | | | | 852 | | | 711 | | 0.1 | % |
| |
| |
| |
| | |
| | | | | | 852 | | | 711 | | 0.1 | % |
Banking | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
MV Receivables II, LLC (1,822 shares of common stock) (<) (####) | | — | | — | | — | (###) | | 7/29/2021 | | — | | — | | | 750 | | | 1,443 | | 0.2 | % | | — | | — | | — | (###) | | 7/29/2021 | | — | | — | | | 750 | | | 1,443 | | 0.2 | % |
MV Receivables II, LLC (warrant to purchase up to 1.0% of the equity) (<) (####) |
| — |
| — | | — | (###) | | 7/28/2021 |
| 7/28/2031 | | — | | | 453 | |
| 2,069 |
| 0.3 | % |
| — |
| — | | — | (###) | | 7/28/2021 |
| 7/28/2031 | | — | | | 453 | |
| 2,069 |
| 0.3 | % |
|
| |
| |
| |
| | |
| | | | | | 1,203 | | | 3,512 | | 0.5 | % |
| |
| |
| |
| | |
| | | | | | 1,203 | | | 3,512 | | 0.5 | % |
Beverage, Food & Tobacco | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Sabrosura Foods, LLC et al (fka Huff Hispanic Food Holdings, LLC) (171,429 Class A interests) | | — | | — | | — | (###) | | 10/18/2019 | | — | | — | | | 171 | | | 4 | | 0.0 | % | | — | | — | | — | (###) | | 10/18/2019 | | — | | — | | | 171 | | | 4 | | 0.0 | % |
Sabrosura Foods, LLC et al (fka Huff Hispanic Food Holdings, LLC) (7,022 Class AA units) | | — | | — | | — | (###) | | 11/22/2022 | | — | | — | | | 10 | | | 7 | | 0.0 | % | | — | | — | | — | (###) | | 11/22/2022 | | — | | — | | | 10 | | | 7 | | 0.0 | % |
| | | | | | | | | | | | | | | | 181 | | | 11 | | 0.0 | % | | | | | | | | | | | | | | | | 181 | | | 11 | | 0.0 | % |
Capital Equipment | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Adept AG Holdings, LLC (314,584 preferred units) (####) | | — | | — | | — | (###) | | 8/11/2022 | | — | | — | | | 650 | | | 649 | | 0.1 | % | | — | | — | | — | (###) | | 8/11/2022 | | — | | — | | | 650 | | | 649 | | 0.1 | % |
MCP Shaw Acquisitionco, LLC (95,125 Class A-2 units) (####) | | — | | — | | — | (###) | | 2/28/2020 | | — | | — | | | 95 | | | 163 | | 0.0 | % | | — | | — | | — | (###) | | 2/28/2020 | | — | | — | | | 95 | | | 163 | | 0.0 | % |
| | | | | | | | | | | | | | | | 745 | | | 812 | | 0.1 | % | | | | | | | | | | | | | | | | 745 | | | 812 | | 0.1 | % |
Consumer Goods: Durable | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Independence Buyer, Inc. (169 Class A units) | | — | | — | | — | (###) | | 8/3/2021 | | — | | — | | | 169 | | | 212 | | 0.0 | % | | — | | — | | — | (###) | | 8/3/2021 | | — | | — | | | 169 | | | 212 | | 0.0 | % |
Jumpstart Holdco, Inc. (1,566,667 Class A units) | | — | | — | | — | (###) | | 4/19/2022 | | — | | — | | | 1,566 | | | 773 | | 0.1 | % | | — | | — | | — | (###) | | 4/19/2022 | | — | | — | | | 1,566 | | | 773 | | 0.1 | % |
| | | | | | | | | | | | | | | | 1,735 | | | 985 | | 0.1 | % | | | | | | | | | | | | | | | | 1,735 | | | 985 | | 0.1 | % |
Energy: Oil & Gas | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
QuarterNorth Energy Inc. (4,376 shares of common stock) (~) | | — | | — | | — | (###) | | 1/11/2020 | | — | | — | | | 871 | | | 606 | | 0.1 | % | | — | | — | | — | (###) | | 1/11/2020 | | — | | — | | | 871 | | | 606 | | 0.1 | % |
| | | | | | | | | | | | | | | | 871 | | | 606 | | 0.1 | % | | | | | | | | | | | | | | | | 871 | | | 606 | | 0.1 | % |
Environmental Industries | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) | | — | | — | | — | (###) | | 10/19/2020 | | 3/19/2028 | | — | | | 67 | | | 210 | | 0.0 | % | | — | | — | | — | (###) | | 10/19/2020 | | 3/19/2028 | | — | | | 67 | | | 210 | | 0.0 | % |
Quest Resource Management Group, LLC (warrant to purchase up to 0.2% of the equity) |
| — |
| — |
| — | (###) | | 10/19/2021 |
| 3/19/2028 | | — | |
| — | |
| 147 |
| 0.0 | % |
| — |
| — |
| — | (###) | | 10/19/2021 |
| 3/19/2028 | | — | |
| — | |
| 147 |
| 0.0 | % |
StormTrap, LLC (640,000 Class A preferred units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 3/25/2022 | | — | | — | | | 640 | | | 640 | | 0.1 | % | | n/a | | n/a | | 8.00 | % PIK | | 3/25/2022 | | — | | — | | | 640 | | | 640 | | 0.1 | % |
StormTrap, LLC (640,000 Class A common units) (####) |
| — |
| — |
| — | (###) | | 3/25/2022 |
| — |
| — | |
| — | |
| 213 |
| 0.1 | % |
| — |
| — |
| — | (###) | | 3/25/2022 |
| — |
| — | |
| — | |
| 213 |
| 0.1 | % |
Volt Bidco, Inc. (878 shares of common stock) |
| — |
| — |
| — | (###) | | 8/11/2021 |
| — |
| — | |
| 891 | |
| 886 |
| 0.1 | % |
| — |
| — |
| — | (###) | | 8/11/2021 |
| — |
| — | |
| 891 | |
| 886 |
| 0.1 | % |
| | | | | | | | | | | | | | | | 1,598 | | | 2,096 | | 0.3 | % | | | | | | | | | | | | | | | | 1,598 | | | 2,096 | | 0.3 | % |
FIRE: Finance |
| |
| |
| | | | |
| | | | | | | | | | | | |
| |
| |
| | | | |
| | | | | | | | | | | | |
J2 BWA Funding LLC (0.7% profit sharing) (<) (####) |
| — |
| — |
| — | (###) | | 12/24/2020 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
| — |
| — |
| — | (###) | | 12/24/2020 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
J2 BWA Funding III, LLC (commitment to purchase up to 3.8% of the equity) (<) (####) (i) |
| — |
| — |
| — | (###) | | 4/29/2022 | | — | | — | | | 76 | | | 76 | | 0.0 | % |
| — |
| — |
| — | (###) | | 4/29/2022 | | — | | — | | | 76 | | | 76 | | 0.0 | % |
J2 BWA Funding III, LLC (1.2% profit sharing) (<) (####) (i) |
| — |
| — |
| — | (###) | | 4/29/2022 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
| — |
| — |
| — | (###) | | 4/29/2022 |
| — |
| — | |
| — | |
| — |
| 0.0 | % |
| | | | | | | | | | | | | | | | 76 | | | 76 | | 0.0 | % | | | | | | | | | | | | | | | | 76 | | | 76 | | 0.0 | % |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
InsideRE, LLC (159,884 Class A common units) (####) |
| — |
| — |
| — | (###) | | 9/9/2019 |
| — |
| — | |
| 160 | |
| 346 |
| 0.0 | % |
| — |
| — |
| — | (###) | | 9/9/2019 |
| — |
| — | |
| 160 | |
| 346 |
| 0.0 | % |
Witkoff/Monroe 700 JV LLC (2,992 preferred units) (<) | | | | |
| 8.00 | % Cash/ | | | | | | | | | | | | | | | | | | | |
| 8.00 | % Cash/ | | | | | | | | | | | | | | | |
(####) |
| n/a |
| n/a | | 4.00 | % PIK | | 7/2/2021 |
| — |
| — | |
| 3 | |
| 1,462 |
| 0.2 | % |
| n/a |
| n/a | | 4.00 | % PIK | | 7/2/2021 |
| — |
| — | |
| 3 | |
| 1,462 |
| 0.2 | % |
|
| |
| |
| |
| | | | | | | | | 163 | | | 1,808 | | 0.2 | % |
| |
| |
| |
| | | | | | | | | 163 | | | 1,808 | | 0.2 | % |
27
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | |
| | |
| |
| | |
| |
| | |
| | | | | | | | |
| | |
| |
| | |
| |
| | |
| | |
| | | | | | Interest | | Acquisition | | | | | | | | | | | | % of | | | | | | | Interest | | Acquisition | | | | | | | | | | | | % of | | ||
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | ||||||
Healthcare & Pharmaceuticals | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Ascent Midco, LLC (725,806 Class A units) (####) | | n/a | | n/a |
| 8.00 | % PIK | | 2/5/2020 |
| — |
| — | | $ | 726 | | $ | 703 | | 0.1 | % | | n/a | | n/a |
| 8.00 | % PIK | | 2/5/2020 |
| — |
| — | | $ | 726 | | $ | 703 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-1 units) | | — | | — |
| — | (###) | | 6/30/2021 |
| — |
| — | |
| 578 | |
| 601 | | 0.1 | % | | — | | — |
| — | (###) | | 6/30/2021 |
| — |
| — | |
| 578 | |
| 601 | | 0.1 | % |
Dorado Acquisition, Inc. (531,783 Class A-2 units) | | — | | — |
| — | (###) | | 6/30/2021 |
| — |
| — | |
| — | |
| 629 | | 0.1 | % | | — | | — |
| — | (###) | | 6/30/2021 |
| — |
| — | |
| — | |
| 629 | | 0.1 | % |
Evolve Biologics Inc. (0.1% of equity commitments) (<) | | — | | — |
| — | (###) | | 12/20/2022 |
| — |
| — | |
| — | |
| — | | 0.0 | % | | — | | — |
| — | (###) | | 12/20/2022 |
| — |
| — | |
| — | |
| — | | 0.0 | % |
Evolve Biologics Inc. (warrant to purchase up to 1.5% of the equity) (<) | | — | | — |
| — | (###) | | 12/20/2022 |
| — |
| — | |
| — | |
| — | | 0.0 | % | | — | | — |
| — | (###) | | 12/20/2022 |
| — |
| — | |
| — | |
| — | | 0.0 | % |
NationsBenefits, LLC (356,658 Series B units) (####) | | n/a | | n/a |
| 5.00 | % PIK | | 8/20/2021 |
| — |
| — | |
| 2,393 | |
| 2,861 | | 0.3 | % | | n/a | | n/a |
| 5.00 | % PIK | | 8/20/2021 |
| — |
| — | |
| 2,393 | |
| 2,861 | | 0.3 | % |
NationsBenefits, LLC (326,667 common units) (####) | | — | | — |
| — | (###) | | 8/20/2021 | | — | | — | | | 468 | | | 201 | | 0.0 | % | | — | | — |
| — | (###) | | 8/20/2021 | | — | | — | | | 468 | | | 201 | | 0.0 | % |
NQ PE Project Colosseum Midco Inc. (1,364,614 common units) | | — | | — | | — | (###) | | 10/4/2022 | | — | | — | | | 1,365 | | | 1,365 | | 0.2 | % | | — | | — | | — | (###) | | 10/4/2022 | | — | | — | | | 1,365 | | | 1,365 | | 0.2 | % |
Seran BioScience, LLC (26,666 common units) (####) | | — | | — |
| — | (###) | | 12/31/2020 |
| — |
| — | |
| 267 | |
| 429 | | 0.1 | % | | — | | — |
| — | (###) | | 12/31/2020 |
| — |
| — | |
| 267 | |
| 429 | | 0.1 | % |
| | | | | | | | | | | | | | | | 5,797 | | | 6,789 | | 0.9 | % | | | | | | | | | | | | | | | | 5,797 | | | 6,789 | | 0.9 | % |
High Tech Industries | | | | |
| |
| | | | | | | | | | | | | | | | | | | |
| |
| | | | | | | | | | | | | | | |
Amelia Holding II, LLC (warrant to purchase up to 0.1% of the equity) | | — | | — | | — | (###) | | 12/21/2022 | | 12/21/2032 | | — | | | — | | | — | | 0.0 | % | | — | | — | | — | (###) | | 12/21/2022 | | 12/21/2032 | | — | | | — | | | — | | 0.0 | % |
Drawbridge Partners, LLC (652,174 Class A-1 units) | | — | | — |
| — | (###) | | 9/1/2022 |
| — |
| — | |
| 652 | |
| 629 | | 0.1 | % | | — | | — |
| — | (###) | | 9/1/2022 |
| — |
| — | |
| 652 | |
| 629 | | 0.1 | % |
MarkLogic Corporation (435,358 Class A units) | | — | | — |
| — | (###) | | 10/20/2020 |
| — |
| — | |
| — | |
| 640 | | 0.1 | % | | — | | — |
| — | (###) | | 10/20/2020 |
| — |
| — | |
| — | |
| 640 | | 0.1 | % |
Optomi, LLC (278 Class A units) (####) | | — | | — |
| — | (###) | | 12/16/2021 |
| — |
| — | |
| 278 | |
| 512 | | 0.1 | % | | — | | — |
| — | (###) | | 12/16/2021 |
| — |
| — | |
| 278 | |
| 512 | | 0.1 | % |
Recorded Future, Inc. (40,243 Class A units) (f) | | — | | — |
| — | (###) | | 7/3/2019 | | — | | — | | | 40 | | | 113 | | 0.0 | % | | — | | — |
| — | (###) | | 7/3/2019 | | — | | — | | | 40 | | | 113 | | 0.0 | % |
Unanet, Inc. (1,621,053 shares of common stock) | | — | | — | | — | (###) | | 12/5/2022 | | — | | — | | | 1,622 | | | 1,621 | | 0.2 | % | | — | | — | | — | (###) | | 12/5/2022 | | — | | — | | | 1,622 | | | 1,621 | | 0.2 | % |
| | | | | | | | | | | | | | | | 2,592 | | | 3,515 | | 0.5 | % | | | | | | | | | | | | | | | | 2,592 | | | 3,515 | | 0.5 | % |
Hotels, Gaming & Leisure | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Equine Network, LLC (92 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2020 | | — | | — | | | 95 | | | 93 | | 0.0 | % | | — | | — | | — | (###) | | 12/31/2020 | | — | | — | | | 95 | | | 93 | | 0.0 | % |
| | | | | | | | | | | | | | | | 95 | | | 93 | | 0.0 | % | | | | | | | | | | | | | | | | 95 | | | 93 | | 0.0 | % |
Media: Advertising, Printing & Publishing | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
95 Percent Buyer, LLC (385,027 Class A units) (####) | | n/a | | n/a |
| 8.00 | % PIK | | 11/24/2021 |
| — |
| — | |
| 385 | |
| 580 | | 0.1 | % | | n/a | | n/a |
| 8.00 | % PIK | | 11/24/2021 |
| — |
| — | |
| 385 | |
| 580 | | 0.1 | % |
Calienger Holdings, L.L.C. (568,181 Class A units) (####) | | — | | — |
| — | (###) | | 10/21/2022 |
| — |
| — | |
| 568 | |
| 568 | | 0.1 | % | | — | | — |
| — | (###) | | 10/21/2022 |
| — |
| — | |
| 568 | |
| 568 | | 0.1 | % |
New Engen, Inc. (417 preferred units) | | n/a | | n/a |
| 8.00 | %PIK | | 12/27/2021 | | — | | — | | | 417 | | | 391 | | 0.1 | % | | n/a | | n/a |
| 8.00 | % PIK | | 12/27/2021 | | — | | — | | | 417 | | | 391 | | 0.1 | % |
New Engen, Inc. (5,067 Class B common units) | | — | | — |
| — | (###) | | 12/27/2021 |
| — |
| — | |
| 5 | |
| 5 | | 0.0 | % | | — | | — |
| — | (###) | | 12/27/2021 |
| — |
| — | |
| 5 | |
| 5 | | 0.0 | % |
Really Great Reading Company, Inc. (369 Series A units) | | — | | — |
| — | (###) | | 12/9/2022 |
| — |
| — | |
| 369 | |
| 369 | | 0.0 | % | | — | | — |
| — | (###) | | 12/9/2022 |
| — |
| — | |
| 369 | |
| 369 | | 0.0 | % |
Relevate Health Group, LLC (96 preferred units) | | n/a | | n/a |
| 12.00 | % PIK | | 11/20/2020 |
| — |
| — | |
| 96 | |
| 86 | | 0.0 | % | | n/a | | n/a |
| 12.00 | % PIK | | 11/20/2020 |
| — |
| — | |
| 96 | |
| 86 | | 0.0 | % |
Relevate Health Group, LLC (96 Class B common units) | | — | | — |
| — | (###) | | 11/20/2020 | | — | | — | | | — | | | — | | 0.0 | % | | — | | — |
| — | (###) | | 11/20/2020 | | — | | — | | | — | | | — | | 0.0 | % |
Spherix Global Inc. (333 Class A units) | | — | | — |
| — | (###) | | 12/22/2021 | | — |
| — | |
| 333 | |
| 256 | | 0.0 | % | | — | | — |
| — | (###) | | 12/22/2021 | | — |
| — | |
| 333 | |
| 256 | | 0.0 | % |
XanEdu Publishing, Inc. (65,104 Class A units) | | n/a | | n/a | | 8.00 | % PIK | | 1/28/2020 | | — | | — | | | 65 | | | 294 | | 0.0 | % | | n/a | | n/a | | 8.00 | % PIK | | 1/28/2020 | | — | | — | | | 65 | | | 294 | | 0.0 | % |
| | | | | | | | | | | | | | | | 2,238 | | | 2,549 | | 0.3 | % | | | | | | | | | | | | | | | | 2,238 | | | 2,549 | | 0.3 | % |
Media: Diversified & Production | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Chess.com, LLC (5 Class A units) (####) | | — | | — | | — | (###) | | 12/31/2021 | | — | | — | | | 189 | | | 107 | | 0.0 | % | | — | | — | | — | (###) | | 12/31/2021 | | — | | — | | | 189 | | | 107 | | 0.0 | % |
| | | | | | | | | | | | | | | | 189 | | | 107 | | 0.0 | % | | | | | | | | | | | | | | | | 189 | | | 107 | | 0.0 | % |
Services: Business | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Argano, LLC (56,839 common units) (####) | | — | | — | | — | (###) | | 6/10/2021 | | — | | — | | | 270 | | | 418 | | 0.1 | % | | — | | — | | — | (###) | | 6/10/2021 | | — | | — | | | 270 | | | 418 | | 0.1 | % |
ecMarket Inc. and Conexiom US Inc. (96,603 preferred shares) (<) (b) | | — | | — | | — | (###) | | 9/21/2021 | | — | | — | | | 723 | | | 698 | | 0.1 | % | | — | | — | | — | (###) | | 9/21/2021 | | — | | — | | | 723 | | | 698 | | 0.1 | % |
Edustaff, LLC (591 shares of common stock) (####) | | — | | — | | — | (###) | | 12/8/2022 | | — | | — | | | 591 | | | 591 | | 0.1 | % | | — | | — | | — | (###) | | 12/8/2022 | | — | | — | | | 591 | | | 591 | | 0.1 | % |
Skillsoft Corp. (26,168 Class A shares) (~) (<) (g) | | — | | — | | — | (###) | | 6/11/2021 | | — | | — | | | 508 | | | 34 | | 0.0 | % | | — | | — | | — | (###) | | 6/11/2021 | | — | | — | | | 508 | | | 34 | | 0.0 | % |
| | | | | | | | | | | | | | | | 2,092 | | | 1,741 | | 0.3 | % | | | | | | | | | | | | | | | | 2,092 | | | 1,741 | | 0.3 | % |
Services: Consumer | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Express Wash Acquisition Company, LLC (135,869 Class A units) (####) | | n/a | | n/a | | 8.00 | % PIK | | 12/28/2020 | | — | | — | | | 140 | | | 132 | | 0.0 | % | | n/a | | n/a | | 8.00 | % PIK | | 12/28/2020 | | — | | — | | | 140 | | | 132 | | 0.0 | % |
IDIG Parent, LLC (192,908 shares of common stock) (####) (h) | | — | | — | | — | (###) | | 1/4/2021 | | — | | — | | | 195 | | | 254 | | 0.1 | % | | — | | — | | — | (###) | | 1/4/2021 | | — | | — | | | 195 | | | 254 | | 0.1 | % |
| | | | | | | | | | | | | | | | 335 | | | 386 | | 0.1 | % | | | | | | | | | | | | | | | | 335 | | | 386 | | 0.1 | % |
Telecommunications | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
American Broadband and Telecommunications Company LLC (warrant to purchase up to 0.4% of the equity) | | — | | — | | — | (###) | | 6/10/2022 | | 6/10/2032 | | — | | | 84 | | | 139 | | 0.0 | % | | — | | — | | — | (###) | | 6/10/2022 | | 6/10/2032 | | — | | | 84 | | | 139 | | 0.0 | % |
American Virtual Cloud Technologies, Inc. (warrant to purchase up to 4.9% of the equity) | | — | | — | | — | (###) | | 12/2/2021 | | 1/31/2029 | | — | | | — | | | 206 | | 0.0 | % | | — | | — | | — | (###) | | 12/2/2021 | | 1/31/2029 | | — | | | — | | | 206 | | 0.0 | % |
| | | | | | | | | | | | | | | | 84 | | | 345 | | 0.0 | % | | | | | | | | | | | | | | | | 84 | | | 345 | | 0.0 | % |
Transportation: Cargo | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
RS Acquisition, LLC (753,485 common units) (####) | | — | | — | | — | (###) | | 1/12/2022 | | — | | — | | | 1,264 | | | 1,053 | | 0.1 | % | | — | | — | | — | (###) | | 1/12/2022 | | — | | — | | | 1,264 | | | 1,053 | | 0.1 | % |
| | | | | | | | | | | | | | | | 1,264 | | | 1,053 | | 0.1 | % | | | | | | | | | | | | | | | | 1,264 | | | 1,053 | | 0.1 | % |
28
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | Interest | | Acquisition | | | | | | | | | | | | % of | | |
Portfolio Company (˄) |
| Index (˄˄) |
| Spread (˄˄) |
| Rate |
| Date (˄˄˄) |
| Maturity |
| Principal |
| Amortized Cost |
| Fair Value (˄˄˄˄) |
| Net Assets (˄˄˄˄˄) | | |||
Wholesale | | | | | | | | | | | | | | | | | | | | | | |
IF & P Holdings Company, LLC (1,500 Class A preferred units) | | — | | — | | — | (###) | | 10/3/2022 | | — | | — | | $ | 1,500 | | $ | 1,500 | | 0.2 | % |
IF & P Holdings Company, LLC (1,500 Class B common units) | | — | | — | | — | (###) | | 10/3/2022 | | — | | — | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | | | | 1,500 | | | 1,500 | | 0.2 | % |
Total Non-Controlled/Non-Affiliate Equity Securities | | | | | | | | | | | | | | | | 23,610 | | | 28,695 | | 3.8 | % |
Total Non-Controlled/Non-Affiliate Company Investments | | | | | | | | | | | | | | | $ | 1,426,468 | | $ | 1,429,808 | | 189.4 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Non-Controlled Affiliate Company Investments (#####) | | | | | | | | | | | | | | | | | | | | | | |
Senior Secured Loans | | | | | | | | | | | | | | | | | | | | | | |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (Revolver) (<) (*) | | L | | 7.00 | % | 11.12 | % | | 8/11/2021 | | 8/9/2024 | | 4,875 | | $ | 4,785 | | $ | 4,755 | | 0.6 | % |
| | | | | | | | | | | | | 4,875 | | | 4,785 | | | 4,755 | | 0.6 | % |
Services: Business | | | | | | | | | | | | | | | | | | | | | | |
Nastel Technologies, LLC (~~) | | SF | | 6.50 | % | 10.74 | % | | 9/21/2022 | | 9/21/2028 | | 3,500 | | | 3,432 | | | 3,500 | | 0.5 | % |
Nastel Technologies, LLC (Revolver) (*) | | SF | | 6.50 | % | 10.74 | % | | 9/21/2022 | | 9/21/2028 | | 368 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 3,868 | | | 3,432 | | | 3,500 | | 0.5 | % |
Transportation: Cargo | | | | | | | | | | | | | | | | | | | | | | |
SheerTrans Solutions, LLC (~) | | SF | | 7.50 | % | 11.94 | % | | 7/29/2022 | | 7/29/2027 | | 5,101 | | | 5,005 | | | 5,101 | | 0.7 | % |
SheerTrans Solutions, LLC (Revolver) (*) | | SF | | 7.50 | % | 11.94 | % | | 7/29/2022 | | 7/29/2027 | | 1,465 | | | — | | | — | | 0.0 | % |
| | | | | | | | | | | | | 6,566 | | | 5,005 | | | 5,101 | | 0.7 | % |
Total Non-Controlled/Affiliate Senior Secured Loans | | | | | | | | | | | | | 15,309 | | | 13,222 | | | 13,356 | | 1.8 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Junior Secured Loans | | | | | | | | | | | | | | | | | | | | | | |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (<) | | n/a | | n/a | | 8.00 | % | | 8/6/2021 | | 7/28/2028 | | 5,850 | | | 5,850 | | | 5,850 | | 0.8 | % |
SFR Holdco, LLC (Delayed Draw) (<) (*) (**) | | n/a | | n/a | | 8.00 | % | | 3/1/2022 | | 7/28/2028 | | 4,388 | | | 2,316 | | | 2,316 | | 0.3 | % |
| | | | | | | | | | | | | 10,238 | | | 8,166 | | | 8,166 | | 1.1 | % |
Total Non-Controlled/Affiliate Junior Secured Loans | | | | | | | | | | | | | 10,238 | | | 8,166 | | | 8,166 | | 1.1 | % |
| | | | | | | | | | | | | | | | | | | | | | |
Equity Securities (##) (#####) | | | | | | | | | | | | | | | | | | | | | | |
FIRE: Real Estate | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (13.9% of equity commitments) (<) | | — | | — | | — | (###) | | 8/6/2021 | | — | | — | | | 3,900 | | | 3,900 | | 0.5 | % |
SFR Holdco, LLC (10.5% of equity commitments) (<) (j) | | — | | — | | — | (###) | | 3/1/2022 | | — | | — | | | 1,545 | | | 1,545 | | 0.2 | % |
| | | | | | | | | | | | | | | | 5,445 | | | 5,445 | | 0.7 | % |
Services: Business | | | | | | | | | | | | | | | | | | | | | | |
Nastel Technologies, LLC (3,408 Class A units) (####) | | — | | — | | — | (###) | | 9/21/2022 | | — | | — | | | 3,408 | | | 3,578 | | 0.5 | % |
| | | | | | | | | | | | | | | | 3,408 | | | 3,578 | | 0.5 | % |
Transportation: Cargo | | | | | | | | | | | | | | | | | | | | | | |
SheerTrans Solutions, LLC (8,642,579 preferred interests) (####) | | — | | — | | — | (###) | | 7/29/2022 | | — | | — | | | 8,643 | | | 8,643 | | 1.1 | % |
| | | | | | | | | | | | | | | | 8,643 | | | 8,643 | | 1.1 | % |
Total Non-Controlled/Affiliate Equity Securities | | | | | | | | | | | | | | | | 17,572 | | | 17,742 | | 2.3 | % |
Total Non-Controlled/Affiliate Company Investments | | | | | | | | | | | | | | | $ | 38,884 | | $ | 39,188 | | 5.2 | % |
| | | | | | | | | | | | | | | | | | | | | | |
TOTAL INVESTMENTS | | | | | | | | | | | | | | | $ | 1,465,352 | | $ | 1,468,996 | | 194.6 | % |
29
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
Derivative Instruments
Foreign currency forward contracts
| | | | | | | | | | | | | |
| | Notional |
| | |
| | | | | |
| |
| | Amount | | Notional Amount | | | | Settlement | | Unrealized Gain | |||
Description |
| to be Purchased |
| to be Sold |
| Counterparty |
| Date |
| (Loss) | |||
Foreign currency forward contract | | $ | 183 |
| CAD | 248 |
| Bannockburn Global Forex, LLC | | 1/5/2023 | | $ | — |
Foreign currency forward contract | | $ | 92 |
| CAD | 127 |
| Bannockburn Global Forex, LLC |
| 1/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 81 |
| CAD | 113 |
| Bannockburn Global Forex, LLC |
| 2/17/2023 | |
| (1) |
Foreign currency forward contract | | $ | 79 |
| CAD | 109 |
| Bannockburn Global Forex, LLC |
| 3/17/2023 | |
| (1) |
Foreign currency forward contract | | $ | 314 |
| CAD | 426 |
| Bannockburn Global Forex, LLC |
| 4/5/2023 | |
| — |
Foreign currency forward contract | | $ | 93 |
| CAD | 128 |
| Bannockburn Global Forex, LLC |
| 4/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 79 |
| CAD | 109 |
| Bannockburn Global Forex, LLC |
| 5/17/2023 | |
| (1) |
Foreign currency forward contract | | $ | 87 |
| CAD | 121 |
| Bannockburn Global Forex, LLC |
| 6/19/2023 | |
| (2) |
Foreign currency forward contract | | $ | 316 |
| CAD | 428 |
| Bannockburn Global Forex, LLC |
| 7/5/2023 | |
| — |
Foreign currency forward contract | | $ | 90 | | CAD | 124 | | Bannockburn Global Forex, LLC | | 7/19/2023 | | | (2) |
Foreign currency forward contract | | $ | 81 | | CAD | 112 | | Bannockburn Global Forex, LLC | | 8/17/2023 | | | (1) |
Foreign currency forward contract | | $ | 87 | | CAD | 120 | | Bannockburn Global Forex, LLC | | 9/19/2023 | | | (2) |
Foreign currency forward contract | | $ | 318 | | CAD | 431 | | Bannockburn Global Forex, LLC | | 10/3/2023 | | | — |
Foreign currency forward contract | | $ | 84 | | CAD | 116 | | Bannockburn Global Forex, LLC | | 10/19/2023 | | | (2) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 11/17/2023 | | | (1) |
Foreign currency forward contract | | $ | 77 | | CAD | 106 | | Bannockburn Global Forex, LLC | | 12/19/2023 | | | (1) |
Foreign currency forward contract | | $ | 316 | | CAD | 429 | | Bannockburn Global Forex, LLC | | 1/4/2024 | | | — |
Foreign currency forward contract | | $ | 104 | | CAD | 143 | | Bannockburn Global Forex, LLC | | 1/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 81 | | CAD | 112 | | Bannockburn Global Forex, LLC | | 2/19/2024 | | | (1) |
Foreign currency forward contract | | $ | 76 | | CAD | 105 | | Bannockburn Global Forex, LLC | | 3/19/2024 | | | (1) |
Foreign currency forward contract | | $ | 313 | | CAD | 424 | | Bannockburn Global Forex, LLC | | 4/3/2024 | | | — |
Foreign currency forward contract | | $ | 103 | | CAD | 143 | | Bannockburn Global Forex, LLC | | 4/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 78 | | CAD | 108 | | Bannockburn Global Forex, LLC | | 5/17/2024 | | | (1) |
Foreign currency forward contract | | $ | 86 | | CAD | 118 | | Bannockburn Global Forex, LLC | | 6/19/2024 | | | (2) |
Foreign currency forward contract | | $ | 308 | | CAD | 417 | | Bannockburn Global Forex, LLC | | 7/3/2024 | | | — |
Foreign currency forward contract | | $ | 95 | | CAD | 131 | | Bannockburn Global Forex, LLC | | 7/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 80 | | CAD | 111 | | Bannockburn Global Forex, LLC | | 8/19/2024 | | | (1) |
Foreign currency forward contract | | $ | 83 | | CAD | 114 | | Bannockburn Global Forex, LLC | | 9/18/2024 | | | (1) |
Foreign currency forward contract | | $ | 312 | | CAD | 423 | | Bannockburn Global Forex, LLC | | 10/2/2024 | | | — |
Foreign currency forward contract | | $ | 97 | | CAD | 134 | | Bannockburn Global Forex, LLC | | 10/17/2024 | | | (2) |
Foreign currency forward contract | | $ | 80 | | CAD | 110 | | Bannockburn Global Forex, LLC | | 11/19/2024 | | | (1) |
Foreign currency forward contract | | $ | 80 |
| CAD | 110 |
| Bannockburn Global Forex, LLC |
| 12/18/2024 | |
| (1) |
Foreign currency forward contract | | $ | 302 | | CAD | 409 | | Bannockburn Global Forex, LLC | | 1/2/2025 | | | — |
Foreign currency forward contract | | $ | 96 | | CAD | 133 | | Bannockburn Global Forex, LLC | | 1/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 83 | | CAD | 115 | | Bannockburn Global Forex, LLC | | 2/20/2025 | | | (2) |
Foreign currency forward contract | | $ | 66 | | CAD | 91 | | Bannockburn Global Forex, LLC | | 3/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 10,811 | | CAD | 14,653 | | Bannockburn Global Forex, LLC | | 4/2/2025 | | | — |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 4/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 73 | | CAD | 101 | | Bannockburn Global Forex, LLC | | 5/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 78 | | CAD | 107 | | Bannockburn Global Forex, LLC | | 6/18/2025 | | | (1) |
Foreign currency forward contract | | $ | 93 | | CAD | 128 | | Bannockburn Global Forex, LLC | | 7/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 8/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 75 | | CAD | 103 | | Bannockburn Global Forex, LLC | | 9/17/2025 | | | (1) |
Foreign currency forward contract | | $ | 94 | | CAD | 130 | | Bannockburn Global Forex, LLC | | 10/17/2025 | | | (2) |
Foreign currency forward contract | | $ | 79 | | CAD | 109 | | Bannockburn Global Forex, LLC | | 11/19/2025 | | | (1) |
Foreign currency forward contract | | $ | 8,874 | | CAD | 12,243 | | Bannockburn Global Forex, LLC | | 12/18/2025 | | | (159) |
Foreign currency forward contract | | $ | 118 |
| AUD | 153 |
| Bannockburn Global Forex, LLC |
| 1/18/2023 | |
| 14 |
Foreign currency forward contract | | $ | 108 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 2/16/2023 | |
| 12 |
Foreign currency forward contract | | $ | 102 |
| AUD | 132 |
| Bannockburn Global Forex, LLC |
| 3/16/2023 | |
| 12 |
Foreign currency forward contract | | $ | 123 |
| AUD | 160 |
| Bannockburn Global Forex, LLC |
| 4/20/2023 | |
| 14 |
Foreign currency forward contract | | $ | 93 |
| AUD | 121 |
| Bannockburn Global Forex, LLC |
| 5/16/2023 | |
| 11 |
Foreign currency forward contract | | $ | 121 |
| AUD | 156 |
| Bannockburn Global Forex, LLC |
| 6/19/2023 | |
| 14 |
Foreign currency forward contract | | $ | 106 |
| AUD | 138 |
| Bannockburn Global Forex, LLC |
| 7/18/2023 | |
| 12 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 8/16/2023 | |
| 13 |
Foreign currency forward contract | | $ | 113 |
| AUD | 146 |
| Bannockburn Global Forex, LLC |
| 9/18/2023 | |
| 13 |
Foreign currency forward contract | | $ | 114 |
| AUD | 148 |
| Bannockburn Global Forex, LLC |
| 10/18/2023 | |
| 13 |
Foreign currency forward contract | | $ | 107 |
| AUD | 140 |
| Bannockburn Global Forex, LLC |
| 11/16/2023 | |
| 12 |
Foreign currency forward contract | | $ | 109 |
| AUD | 142 |
| Bannockburn Global Forex, LLC |
| 12/18/2023 | |
| 12 |
Foreign currency forward contract | | $ | 115 |
| AUD | 150 |
| Bannockburn Global Forex, LLC |
| 1/17/2024 | |
| 13 |
Foreign currency forward contract | | $ | 110 |
| AUD | 143 |
| Bannockburn Global Forex, LLC |
| 2/16/2024 | |
| 12 |
Foreign currency forward contract | | $ | 11,827 |
| AUD | 15,410 |
| Bannockburn Global Forex, LLC |
| 3/18/2024 | |
| 1,329 |
| | | | | | | | | | | | $ | 1,296 |
30
MONROE CAPITAL INCOME PLUS CORPORATION
CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)
December 31, 2022
(in thousands, except for shares and units)
(˄) All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940, as amended, (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted.
(˄˄) The majority of the investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), Secured Overnight Financing Rate (“SOFR” or “SF”), Canadian dollar Offered rate (“CDOR” or “C”) or Prime Rate (“Prime” or “P”) which reset daily, monthly, quarterly, or semiannually. For each such investment, the Company has provided the spread over LIBOR, SOFR, CDOR, or Prime, as applicable, and the current contractual interest rate in effect at December 31, 2022. Certain investments may be subject to an interest rate floor, or rate cap. Certain investments contain a payment-in-kind (“PIK”) provision.
(˄˄˄) Except as otherwise noted, all of the Company’s portfolio company investments, which as of December 31, 2022 represented 194.6% of the Company’s net assets or 95.1% of the Company’s total assets, are subject to legal restrictions on sales.
(˄˄˄˄) Except as otherwise noted, because there is no readily available market value for these investments, the fair value of each of these investments is determined in good faith using significant unobservable inputs by the Valuation Designee. (See Note 4 in the accompanying notes to the consolidated financial statements).
(˄˄˄˄˄) Percentages are based on net assets of $754,916 as of December 31, 2022.
(~) All or a portion of this security was held in MC Income Plus Financing SPV LLC (the “SPV”) as collateral for the Company’s secured revolving credit facility (the “Credit Facility”) with KeyBank National Association. (See Note 7 in the accompanying notes to the consolidated financial statements).
(~~) All or a portion of this security was held in Monroe Capital Income Plus ABS Funding, LLC (the “2022 Issuer”) as collateral for the Company’s $425,000 asset-backed securitization (the “2022 ABS”). (See Note 7 in the accompanying notes to the consolidated financial statements).
(~~~) All or a portion of this security was held in MC Income Plus Financing SPV II LLC (the “SPV II”) as collateral for the Company’s secured term loan credit facility (the “Term Loan”) with KeyBank National Association. (See Note 7 in the accompanying notes to the consolidated financial statements).
(<) This investment is treated as a non-qualifying investment under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of the Company’s total assets. As of December 31, 2022, non-qualifying assets totaled 14.1% of the Company’s total assets.
(<<) The Company structures its unitranche secured loans as senior secured loans. The Company obtains security interests in the assets of these portfolio companies that serve as collateral in support of the repayment of these loans. This collateral may take the form of first-priority liens on the assets of a portfolio company. Generally, the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan, in which case the “first out” portion of the loan will generally receive priority with respect to payments of principal, interest and any other amounts due thereunder. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and the Company’s unitranche secured loans will expose the Company to the risks associated with second lien and subordinated loans and may limit the Company’s recourse or ability to recover collateral upon a portfolio company’s bankruptcy. Unitranche secured loans typically provide for moderate loan amortization in the initial years of the facility, with the majority of the amortization deferred until loan maturity. Unitranche secured loans generally allow the borrower to make a large lump sum payment of principal at the end of the loan term, and there is a risk of loss if the borrower is unable to pay the lump sum or refinance the amount owed at maturity. In many cases the Company, together with its affiliates, is the sole or majority lender of these unitranche secured loans, which can afford the Company additional influence with a borrower in terms of monitoring and, if necessary, remediation in the event of underperformance.
(#) Represents less than 5% ownership of the portfolio company’s voting securities.
(##) Ownership of certain equity investments may occur through a holding company or partnership.
(###) Represents a non-income producing security.
(####) Investment is held by a taxable subsidiary of the Company. See Note 2 in the accompanying notes to the consolidated financial statements for additional information on the Company’s wholly-owned taxable subsidiaries.
(#####) As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of the portfolio company as it owns 5% or more of the portfolio company’s voting securities. See Note 5 in the accompanying notes to the consolidated financial statements for additional information on transactions in which the issuer was an Affiliated Person (but not a portfolio company that the Company is deemed to control).
(*) All or a portion of this commitment was unfunded at December 31, 2022. As such, interest is earned only on the funded portion of this commitment.
(**) This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings by the Company.
(a) This loan is denominated in Canadian dollars and is translated into U.S. dollars as of the valuation date.
(b) This is an international company.
(c) This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date.
(d) Investment position or portion thereof unsettled as of December 31, 2022.
(e) As of December 31, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $2,293.
(f) As of December 31, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $8.
(g) The fair value of this investment was valued using Level 1 inputs. See Note 4 in the accompanying notes to the consolidated financial statements.
(h) As of December 31, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $34.
(i) As of December 31, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $1,064.
(j) As of December 31, 2022, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $1,381.
(k) In lieu of interest, this loan accrues an exit fee of 30% of the funded principal amount which is due upon payoff or maturity.
n/a - not applicable
See Notes to Consolidated Financial Statements.
31
MONROE CAPITAL INCOME PLUS CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(unaudited)
(in thousands, except share and per share data)
Note 1. Organization and Principal Business
Monroe Capital Income Plus Corporation (together with its subsidiaries, the “Company”) is a Maryland corporation that was formed as an externally managed, closed-end, non-diversified investment company. The Company is a specialty finance company organized to maximize the total return to the Company’s stockholders in the form of current income and capital appreciation through a variety of investments. The Company is managed by Monroe Capital BDC Advisors, LLC (“MC Advisors”). The Company has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes, the Company elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”). The Company currently qualifies and intends to qualify annually to be treated as a RIC for U.S. federal income tax purposes.
The Company may conduct private offerings, subject to approval by the Company’s board of directors (the “Board”). The Company is conducting its second best efforts, continuous private offering of its common stock to “accredited investors” in reliance on an exemption from the registration requirements of the Securities Act of 1933, as amended (the “Securities Act”). At each closing, an investor purchases shares of the Company’s common stock pursuant to a subscription agreement entered into with the Company. See Note 10 for additional information on the Company’s share activity.
On March 12, 2019, the Company created a wholly-owned subsidiary, MC Income Plus Financing SPV LLC (the “SPV”), for purposes of entering into a senior secured revolving credit facility (the “Credit Facility”) with KeyBank National Association. See Note 7 for additional information on the Credit Facility.
On April 7, 2022, the Company created a wholly-owned subsidiary, Monroe Capital Income Plus ABS Funding, LLC (the “2022 Issuer”), for purposes of completing an asset-backed securitization (the “2022 ABS”) and issuing secured notes through a private placement. See Note 7 for additional information on the 2022 ABS.
On December 20, 2022, the Company created a wholly-owned subsidiary, MC Income Plus Financing SPV II LLC (the “SPV II”), for purposes of entering into a senior secured term credit facility (the “Term Loan”) with KeyBank National Association. See Note 7 for additional information on the Term Loan.
Note 2. Summary of Significant Accounting Policies
Basis of Presentation
The accompanying consolidated financial statements of the Company have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”). The accompanying consolidated financial statements of the Company and related financial information have been prepared pursuant to the requirements for reporting on Form 10-Q and Articles 6 and 10 of Regulation S-X. The Company has determined it meets the definition of an investment company and follows the accounting and reporting guidance in the Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) Topic 946 – Financial Services – Investment Companies (“ASC Topic 946”). Certain prior period amounts have been reclassified to conform to the current period presentation.
As an emerging growth company, the Company intends to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act for complying with new or revised accounting standards.
32
Use of Estimates
The preparation of the consolidated financial statements in conformity with GAAP requires the Company to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the consolidated financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates.
32
Consolidation
As permitted under ASC Topic 946, the Company will generally not consolidate its investment in a portfolio company other than an investment company subsidiary or a controlled operating company whose business consists of providing services to the Company. Accordingly, the Company consolidated the results of its wholly-owned subsidiaries, including the SPV, SPV II, the 2022 Issuer and the Company’s wholly-owned taxable subsidiaries (the “Taxable Subsidiaries”) in its consolidated financial statements. The purpose of the Taxable Subsidiaries is to permit the Company to hold equity investments in portfolio companies that are taxed as partnerships for U.S. federal income tax purposes while complying with the “source of income” requirements contained in the RIC tax provisions of the Code. The Taxable Subsidiaries are not consolidated with the Company for U.S. federal corporate income tax purposes, and each Taxable Subsidiary is subject to U.S. federal corporate income tax on its taxable income. All intercompany balances and transactions have been eliminated.
Fair Value of Financial Instruments
The Company applies fair value to substantially all of its financial instruments in accordance with ASC Topic 820 — Fair Value Measurements and Disclosures (“ASC Topic 820”). ASC Topic 820 defines fair value, establishes a framework used to measure fair value, and requires disclosures for fair value measurements, including the categorization of financial instruments into a three-level hierarchy based on the transparency of valuation inputs. See Note 4 for further discussion regarding the fair value measurements and hierarchy.
ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments.
Revenue Recognition
The Company’s revenue recognition policies are as follows:
Investments and related investment income: Interest and dividend income is recorded on the accrual basis to the extent that the Company expects to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. The Company records fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service is completed.
Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, the Company will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the applicable distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. For the three and six months ended March 31,June 30, 2023, the Company received return of capital distributions from its equity investments of $108 and $122, respectively. For both the three and six months ended June 30, 2022, the Company received return of capital distributions from its equity investments of $14 and zero, respectively.$435.
33
The Company has certain investments in its portfolio that contain a payment-in-kind (“PIK”) provision, which represents contractual interest or dividends that are added to the principal balance and recorded as income. The Company stops accruing PIK interest or PIK dividends when it is determined that PIK interest or PIK dividends are no longer collectible. To maintain RIC tax treatment, and to avoid incurring corporate U.S. federal income tax, substantially all income accrued from PIK provisions must be paid out to stockholders in the form of distributions, even though the Company has not yet collected the cash.
33
Loan origination fees, original issue discount and market discount or premiums are capitalized, and the Company then amortizes such amounts using the effective interest method as interest income over the life of the investment. Unamortized discounts and loan origination fees totaled $28,812$32,129 and $29,392 as of March 31,June 30, 2023 and December 31, 2022, respectively. Upfront loan origination and closing fees received for the three and six months ended March 31,June 30, 2023 totaled $6,750 and $8,623, respectively. Upfront loan origination and closing fees received for the three and six months ended June 30, 2022 totaled $1,873$3,216 and $1,031,$4,247, respectively. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income.
The components of the Company’s investment income were as follows:
| | | | | | | ||||||
| | | | | | | | Three months ended | ||||
| | Three months ended March 31, | | June 30, | ||||||||
| | 2023 | | 2022 |
| 2023 |
| 2022 | ||||
Interest income | | $ | 41,457 | | $ | 13,167 | | $ | 46,975 | | $ | 15,166 |
PIK interest income |
|
| 2,112 |
|
| 678 | |
| 1,621 | |
| 956 |
Dividend income (1) | |
| 105 | |
| 96 | |
| 139 | |
| 119 |
Fee income | |
| 238 | |
| 1,593 | |
| 402 | |
| 192 |
Prepayment gain (loss) | |
| 328 | |
| 210 | |
| 151 | |
| 222 |
Accretion of discounts and amortization of premiums | |
| 1,612 | |
| 643 | |
| 1,272 | |
| 548 |
Total investment income | | $ | 45,852 | | $ | 16,387 | | $ | 50,560 | | $ | 17,203 |
| | | | | | |
| | Six months ended June 30, | ||||
|
| 2023 |
| 2022 | ||
Interest income | | $ | 88,432 | | $ | 28,333 |
PIK interest income | |
| 3,733 | |
| 1,634 |
Dividend income (2) | |
| 244 | |
| 215 |
Fee income | |
| 640 | |
| 1,785 |
Prepayment gain (loss) | |
| 479 | |
| 432 |
Accretion of discounts and amortization of premiums | |
| 2,884 | |
| 1,191 |
Total investment income | | $ | 96,412 | | $ | 33,590 |
| (1) | During the three months ended |
| (2) | During the six months ended June 30, 2023 and 2022, dividend income includes PIK dividends of $189 and $180, respectively. |
Investment transactions are recorded on a trade-date basis. Realized gains or losses on portfolio investments are calculated based upon the difference between the net proceeds from the disposition and the amortized cost basis of the investment, without regard to unrealized gains or losses previously recognized. Realized gains and losses are recorded within net realized gain (loss) on investments on the consolidated statements of operations. Changes in the fair value of investments from the prior period, as determined through the application of the Company’s valuation policy, are included within net change in unrealized gain (loss) on investments on the consolidated statements of operations.
Non-accrual: Loans or preferred equity securities are placed on non-accrual status when principal, interest or dividend payments become materially past due, or when there is reasonable doubt that principal, interest or dividends will be collected. Additionally, any original issue discount and market discount are no longer accreted to interest income as of the date the loan is placed on non-accrual status. Interest payments received on non-accrual loans may be recognized as income or applied to principal depending upon management’s judgment. Non-accrual loans are restored to accrual status when past due principal, interest, or dividends are paid, or are expected to be paid, and, in management’s judgment are likely to remain current. As of both March 31,June 30, 2023 and December 31, 2022, there were noone and zero borrowers, respectively, with a loan or preferred equity securities on non-accrual status. The fair value of the Company’s investments on non-accrual status totaled $9,156 and zero at June 30, 2023 and December 31, 2022, respectively.
34
Distributions
Distributions to common stockholders are recorded on the applicable record date. The amount, if any, to be distributed to common stockholders is determined by the Board of Directors (the “Board”) at least quarterly and is generally based upon the Company’s earnings as estimated by management. Net realized capital gains, if any, are generally distributed at least annually.
The determination of the tax attributes for the Company’s distributions is made annually, based upon its taxable income for the full year and distributions paid for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital.
34
The Company has adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends and other distributions on behalf of its stockholders that elect to participate in such plan. When the Company declares a dividend or distribution, the Company’s stockholders’ cash distributions will only be reinvested in additional shares of the Company’s common stock if a stockholder specifically “opts in” to the DRIP at least ten (10) days prior to the record date fixed by the Board. Shares issued under the DRIP will be issued at a price per share equal to the net asset value (“NAV”) per share as of the last day of the Company’s fiscal quarter immediately preceding the date that the distribution was declared. See Note 9 for additional information on the Company’s distributions.
Segments
In accordance with ASC Topic 280 — Segment Reporting, the Company has determined that it has a single reporting segment and operating unit structure.
Cash
The Company deposits its cash in a financial institution and, at times, such balances may be in excess of the Federal Deposit Insurance Corporation insurance limit. The Company’s deposits are held in high-quality financial institutions and management believes that risk of loss with any uninsured balance is remote.
Restricted Cash
Restricted cash includes amounts held within the SPV, SPV II and 2022 Issuer. Cash held within the SPV, SPV II and 2022 Issuer is generally restricted to use for the originations of new investments, the repayment of outstanding debt and the related payment of interest expense and the quarterly release of earnings to the Company. As of March 31,June 30, 2023 and December 31, 2022, restricted cash included $20,821$39,621 and $26,753, respectively, held within the SPV, $2,766$5,122 and $368, respectively, held within the SPV II and $8,656$13,590 and $19,367, respectively, held within the 2022 Issuer.
Unamortized Deferred Financing Costs
Deferred financing costs represent fees and other direct incremental costs incurred in connection with the Company’s borrowings. As of March 31,June 30, 2023 and December 31, 2022, the Company had unamortized deferred financing costs of $11,703$10,197 and $11,914, respectively, presented as a direct reduction of the carrying amount of debt on the consolidated statements of assets and liabilities. These amounts are amortized and included in interest and other debt financing expenses on the consolidated statements of operations over the estimated average life of the borrowings. Amortization of deferred financing costs for the three and six months ended March 31,June 30, 2023 was $1,523 and $2,253, respectively. Amortization of deferred financing costs for the three and six months ended June 30, 2022 was $730$606 and $385,$991, respectively.
35
Investments Denominated in Foreign Currency
At each balance sheet date, portfolio company investments denominated in foreign currencies are translated into U.S. dollars using the spot exchange rate on the last business day of the period. Purchases and sales of foreign portfolio company investments, and any income from such investments, are translated into U.S. dollars using the rates of exchange prevailing on the respective dates of such transactions.
Although the fair values of foreign portfolio company investments and the fluctuation in such fair values are translated into U.S. dollars using the applicable foreign exchange rates described above, the Company does not isolate the portion of the change in fair value resulting from foreign currency exchange rates fluctuations from the change in fair value of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on investments on the Company’s consolidated statements of operations.
Investments denominated in foreign currencies and foreign currency transactions may involve certain consideration and risks not typically associated with those of domestic origin, including unanticipated movements in the value of the foreign currency relative to the U.S. dollar.
35
Derivative Instruments
The Company has entered and may continue to enter into foreign currency forward contracts to reduce the Company’s exposure to foreign currency exchange rate fluctuations. In a foreign currency forward contract, the Company agrees to receive or deliver a fixed quantity of one currency for another, at a pre-determined price at a future date. Foreign currency forward contracts are marked-to-market based on the difference between the forward rate and the exchange rate at the current period end. Unrealized gain (loss) on foreign currency forward contracts are recorded on the Company’s consolidated statements of assets and liabilities by counterparty on a net basis.
The Company does not utilize hedge accounting and as such values its foreign currency forward contracts at fair value with the change in unrealized gain or loss recorded in net change in unrealized gain (loss) on foreign currency forward contracts and the realized gain or loss recorded in net realized gain (loss) on foreign currency forward contracts on the Company’s consolidated statements of operations.
Income Taxes
The Company has elected to be treated as a RIC under Subchapter M of the Code and operates in a manner as to qualify for the tax treatment available to RICs. As long as the Company maintains its status as a RIC, it generally will not be subject to U.S. federal income taxes on any ordinary income or capital gains that it distributes at least annually to its stockholders. Rather, any tax liability related to income earned by the Company represents an obligation of the Company’s stockholders and will not be reflected in the consolidated financial statements of the Company.
To qualify as a RIC under Subchapter M of the Code, the Company must, among other things, meet certain source-of-income and asset diversification requirements. In addition, to qualify for RIC tax treatment, the Company must distribute to its stockholders, for each taxable year, at least 90% of its “investment company taxable income” for that year, which is generally its ordinary income plus the excess of its realized net short-term capital gains over its realized net long-term capital losses. In order for the Company not to be subject to U.S. federal excise taxes, it must distribute annually an amount at least equal to the sum of (i) 98% of its net ordinary income (taking into account certain deferrals and elections) for the calendar year, (ii) 98.2% of its capital gains in excess of capital losses for the calendar year and (iii) any net ordinary income and capital gains in excess of capital losses for preceding years that were not distributed during such years. The Company, at its discretion, may carry forward taxable income in excess of calendar year dividends and pay U.S. federal income tax and a 4% nondeductible U.S. federal excise tax on this income. For the three and six months ended March 31,June 30, 2023 and 2022, the Company recorded a net expense (benefit) on the consolidated statements of operations of $195$150 and zero$345 for U.S. federal excise tax, respectively. For both the three and six months ended June 30, 2022, the Company did not record a net tax expense (benefit) on the consolidated statements of operations for U.S. federal excise tax. As of March 31,June 30, 2023 and December 31, 2022, the Company recorded an accrual for U.S. federal excise taxes of $150$300 and $125, respectively, which were included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.
36
The Company’s consolidated Taxable Subsidiaries may be subject to U.S. federal and state corporate-level income taxes. For both the three and six months ended March 31,June 30, 2023, the Company recorded a net tax expense of $39 on the consolidated statements of operations for these subsidiaries. For both the three and six months ended June 30, 2022, the Company did not recordrecorded a net tax expense of $1 on the consolidated statements of operations for these subsidiaries. As of both March 31,June 30, 2023 and December 31, 2022, no payables for corporate-level income taxes were accrued.
The Company accounts for income taxes in conformity with ASC Topic 740 — Income Taxes (“ASC Topic 740”). ASC Topic 740 provides guidelines for how uncertain tax positions should be recognized, measured, presented and disclosed in the consolidated financial statements. ASC Topic 740 requires the evaluation of tax positions taken in the course of preparing the Company’s tax returns to determine whether the tax positions are “more-likely-than-not” to be sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax expense in the current year. It is the Company’s policy to recognize accrued interest and penalties related to uncertain tax benefits in income tax expense. The Company did not take any material uncertain income tax positions through March 31,June 30, 2023. The 2019 through 2022 tax years remain subject to examination by U.S. federal and state tax authorities.
Subsequent Events
The Company has evaluated the need for disclosures and/or adjustments resulting from subsequent events through the date the consolidated financial statements were issued. There have been no subsequent events that occurred during such period that would require disclosure in this Form 10-Q or would be required to be recognized in the consolidated financial statements as of and for the three months ended March 31,June 30, 2023, except as disclosed in Note 13.
36
Recent Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2024. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the threesix months ended March 31,June 30, 2023.
Note 3. Investments
The following tables show the composition of the Company’s investment portfolio, at amortized cost and fair value (with corresponding percentage of total portfolio investments):
| | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| | June 30, 2023 | | December 31, 2022 |
| ||||||||||||
Amortized Cost: | | | | | | | | | | | | | | | | | | | | | | |
Senior secured loans |
| $ | 1,317,582 |
| 85.8 | % | $ | 1,251,960 |
| 85.4 | % |
| $ | 1,526,307 |
| 86.8 | % | $ | 1,251,960 |
| 85.4 | % |
Unitranche secured loans | |
| 129,051 |
| 8.4 | |
| 128,313 |
| 8.8 | | |
| 129,758 |
| 7.4 | |
| 128,313 |
| 8.8 | |
Junior secured loans | |
| 44,053 |
| 2.9 | |
| 43,973 |
| 3.0 | | |
| 44,736 |
| 2.5 | |
| 43,973 |
| 3.0 | |
Equity securities | |
| 44,974 |
| 2.9 | |
| 41,106 |
| 2.8 | | |
| 58,532 |
| 3.3 | |
| 41,106 |
| 2.8 | |
Total | | $ | 1,535,660 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % | | $ | 1,759,333 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| | June 30, 2023 | | December 31, 2022 |
| ||||||||||||
Fair Value: |
| |
|
|
|
| |
|
|
| |
| |
|
|
|
| |
|
|
| |
Senior secured loans | | $ | 1,320,148 |
| 85.5 | % | $ | 1,250,788 |
| 85.1 | % | | $ | 1,529,436 |
| 86.7 | % | $ | 1,250,788 |
| 85.1 | % |
Unitranche secured loans | |
| 128,380 |
| 8.3 | |
| 127,378 |
| 8.7 | | |
| 129,399 |
| 7.3 | |
| 127,378 |
| 8.7 | |
Junior secured loans | |
| 44,633 |
| 2.9 | |
| 44,469 |
| 3.0 | | |
| 44,190 |
| 2.5 | |
| 44,469 |
| 3.0 | |
Equity securities | |
| 50,749 |
| 3.3 | |
| 46,361 |
| 3.2 | | |
| 61,749 |
| 3.5 | |
| 46,361 |
| 3.2 | |
Total | | $ | 1,543,910 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % | | $ | 1,764,774 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
37
The following tables show the composition of the Company’s investment portfolio by geographic region, at amortized cost and fair value (with corresponding percentage of total portfolio investments). The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business:
| | | | | | | | | | | | | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| | June 30, 2023 | | December 31, 2022 |
| ||||||||||||
Amortized Cost: |
| |
|
|
|
| |
|
|
| |
| |
|
|
|
| |
|
|
| |
International | | $ | 62,975 |
| 4.1 | % | $ | 62,244 |
| 4.3 | % | | $ | 84,368 |
| 4.8 | % | $ | 62,244 |
| 4.3 | % |
Midwest | |
| 330,223 |
| 21.5 | |
| 312,637 |
| 21.3 | | |
| 361,387 |
| 20.6 | |
| 312,637 |
| 21.3 | |
Northeast | |
| 274,847 |
| 17.9 | |
| 245,445 |
| 16.7 | | |
| 340,164 |
| 19.3 | |
| 245,445 |
| 16.7 | |
Northwest | | | 66,851 | | 4.4 | | | 66,839 | | 4.6 | | | | 72,282 | | 4.1 | | | 66,839 | | 4.6 | |
Southeast | |
| 374,990 |
| 24.4 | |
| 353,079 |
| 24.1 | | |
| 419,650 |
| 23.9 | |
| 353,079 |
| 24.1 | |
Southwest | |
| 186,280 |
| 12.1 | |
| 183,722 |
| 12.5 | | |
| 185,163 |
| 10.5 | |
| 183,722 |
| 12.5 | |
West | |
| 239,494 |
| 15.6 | |
| 241,386 |
| 16.5 | | |
| 296,319 |
| 16.8 | |
| 241,386 |
| 16.5 | |
Total | | $ | 1,535,660 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % | | $ | 1,759,333 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % |
37
| | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| ||||||
Fair Value: |
| |
|
|
|
| |
|
|
| |
International | | $ | 60,203 |
| 3.9 | % | $ | 59,706 |
| 4.1 | % |
Midwest | |
| 331,176 |
| 21.4 | |
| 313,240 |
| 21.3 | |
Northeast | |
| 275,666 |
| 17.9 | |
| 244,305 |
| 16.6 | |
Northwest | | | 67,934 | | 4.4 | | | 67,226 | | 4.6 | |
Southeast | |
| 383,322 |
| 24.8 | |
| 360,465 |
| 24.5 | |
Southwest | |
| 185,255 |
| 12.0 | |
| 181,981 |
| 12.4 | |
West | |
| 240,354 |
| 15.6 | |
| 242,073 |
| 16.5 | |
Total | | $ | 1,543,910 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
The following tables show the composition of the Company’s investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):
| | | | | | | | | | | |
| | March 31, 2023 |
| December 31, 2022 |
| ||||||
Amortized Cost: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 21,446 |
| 1.4 | % | $ | 21,418 |
| 1.5 | % |
Automotive | |
| 39,434 |
| 2.6 | |
| 39,131 |
| 2.7 | |
Banking | |
| 35,594 |
| 2.3 | |
| 35,534 |
| 2.4 | |
Beverage, Food & Tobacco | |
| 16,584 |
| 1.1 | |
| 16,807 |
| 1.1 | |
Capital Equipment | |
| 54,893 |
| 3.6 | |
| 55,062 |
| 3.7 | |
Construction & Building | |
| 35,102 |
| 2.3 | |
| 34,932 |
| 2.4 | |
Consumer Goods: Durable | |
| 41,730 |
| 2.7 | |
| 42,278 |
| 2.9 | |
Consumer Goods: Non-Durable | |
| 35,617 |
| 2.3 | |
| 32,697 |
| 2.2 | |
Containers, Packaging & Glass | | | 11,663 | | 0.7 | | | 11,674 | | 0.8 | |
Energy: Oil & Gas | | | 3,092 | | 0.2 | | | 3,970 | | 0.3 | |
Environmental Industries | |
| 34,900 |
| 2.3 | |
| 30,612 |
| 2.1 | |
FIRE: Finance | |
| 69,875 |
| 4.5 | |
| 67,608 |
| 4.6 | |
FIRE: Insurance | | | 16,318 | | 1.1 | | | 9,709 | | 0.7 | |
FIRE: Real Estate | |
| 80,090 |
| 5.2 | |
| 69,695 |
| 4.7 | |
Healthcare & Pharmaceuticals | |
| 227,471 |
| 14.8 | |
| 209,460 |
| 14.3 | |
High Tech Industries | |
| 185,309 |
| 12.1 | |
| 180,078 |
| 12.3 | |
Hotels, Gaming & Leisure | |
| 2,491 |
| 0.2 | |
| 2,316 |
| 0.1 | |
Media: Advertising, Printing & Publishing | |
| 135,724 |
| 8.8 | |
| 128,704 |
| 8.8 | |
Media: Broadcasting & Subscription | |
| 2,415 |
| 0.1 | |
| 2,059 |
| 0.1 | |
Media: Diversified & Production | |
| 45,061 |
| 2.9 | |
| 46,881 |
| 3.2 | |
Retail | |
| 930 |
| 0.1 | |
| — |
| — | |
Services: Business | |
| 192,177 |
| 12.5 | |
| 184,567 |
| 12.6 | |
Services: Consumer | |
| 84,194 |
| 5.5 | |
| 77,065 |
| 5.3 | |
Telecommunications | |
| 36,274 |
| 2.4 | |
| 36,508 |
| 2.5 | |
Transportation: Cargo | | | 98,134 | | 6.4 | | | 97,803 | | 6.7 | |
Wholesale | |
| 29,142 |
| 1.9 | |
| 28,784 |
| 2.0 | |
Total | | $ | 1,535,660 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % |
| | | | | | | | | | | |
| | June 30, 2023 | | December 31, 2022 |
| ||||||
Fair Value: |
| |
|
|
|
| |
|
|
| |
International | | $ | 81,984 |
| 4.6 | % | $ | 59,706 |
| 4.1 | % |
Midwest | |
| 359,475 |
| 20.4 | |
| 313,240 |
| 21.3 | |
Northeast | |
| 341,665 |
| 19.4 | |
| 244,305 |
| 16.6 | |
Northwest | | | 73,345 | | 4.2 | | | 67,226 | | 4.6 | |
Southeast | |
| 428,123 |
| 24.2 | |
| 360,465 |
| 24.5 | |
Southwest | |
| 184,052 |
| 10.4 | |
| 181,981 |
| 12.4 | |
West | |
| 296,130 |
| 16.8 | |
| 242,073 |
| 16.5 | |
Total | | $ | 1,764,774 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
38
| | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| ||||||
Fair Value: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 20,974 |
| 1.3 | % | $ | 21,049 |
| 1.4 | % |
Automotive | |
| 38,482 |
| 2.5 | |
| 38,843 |
| 2.7 | |
Banking | |
| 37,064 |
| 2.4 | |
| 37,979 |
| 2.6 | |
Beverage, Food & Tobacco | |
| 16,212 |
| 1.0 | |
| 16,439 |
| 1.1 | |
Capital Equipment | |
| 55,272 |
| 3.6 | |
| 56,074 |
| 3.8 | |
Construction & Building | |
| 35,122 |
| 2.3 | |
| 34,877 |
| 2.4 | |
Consumer Goods: Durable | |
| 39,552 |
| 2.5 | |
| 40,357 |
| 2.7 | |
Consumer Goods: Non-Durable | |
| 35,671 |
| 2.3 | |
| 32,843 |
| 2.2 | |
Containers, Packaging & Glass | |
| 11,885 |
| 0.8 | |
| 11,675 |
| 0.8 | |
Energy: Oil & Gas | |
| 2,778 |
| 0.2 | |
| 3,597 |
| 0.2 | |
Environmental Industries | |
| 35,801 |
| 2.3 | |
| 31,457 |
| 2.1 | |
FIRE: Finance | |
| 68,987 |
| 4.5 | |
| 66,639 |
| 4.5 | |
FIRE: Insurance | |
| 16,019 |
| 1.0 | |
| 9,641 |
| 0.7 | |
FIRE: Real Estate | |
| 82,196 |
| 5.3 | |
| 71,154 |
| 4.8 | |
Healthcare & Pharmaceuticals | |
| 229,611 |
| 14.9 | |
| 210,831 |
| 14.4 | |
High Tech Industries | |
| 186,220 |
| 12.1 | |
| 180,823 |
| 12.3 | |
Hotels, Gaming & Leisure | |
| 2,484 |
| 0.2 | |
| 2,331 |
| 0.2 | |
Media: Advertising, Printing & Publishing | |
| 137,498 |
| 8.9 | |
| 129,362 |
| 8.8 | |
Media: Broadcasting & Subscription | |
| 2,376 |
| 0.1 | |
| 2,019 |
| 0.1 | |
Media: Diversified & Production | |
| 44,527 |
| 2.9 | |
| 46,348 |
| 3.2 | |
Retail | | | 930 | | 0.1 | | | — | | — | |
Services: Business | | | 194,301 | | 12.6 | | | 184,535 | | 12.6 | |
Services: Consumer | | | 85,021 | | 5.5 | | | 77,998 | | 5.3 | |
Telecommunications | | | 36,473 | | 2.4 | | | 36,415 | | 2.5 | |
Transportation: Cargo | |
| 98,663 |
| 6.4 | |
| 97,153 |
| 6.6 | |
Wholesale | |
| 29,791 |
| 1.9 | |
| 28,557 |
| 2.0 | |
Total | | $ | 1,543,910 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
The following tables show the composition of the Company’s investment portfolio by industry, at amortized cost and fair value (with corresponding percentage of total portfolio investments):
| | | | | | | | | | | |
| | June 30, 2023 | | December 31, 2022 |
| ||||||
Amortized Cost: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 21,490 |
| 1.2 | % | $ | 21,418 |
| 1.5 | % |
Automotive | |
| 39,359 |
| 2.2 | |
| 39,131 |
| 2.7 | |
Banking | |
| 35,357 |
| 2.0 | |
| 35,534 |
| 2.4 | |
Beverage, Food & Tobacco | |
| 16,523 |
| 0.9 | |
| 16,807 |
| 1.1 | |
Capital Equipment | |
| 72,611 |
| 4.1 | |
| 55,062 |
| 3.7 | |
Chemicals, Plastics & Rubber | | | 740 | | 0.0 | | | — | | — | |
Construction & Building | |
| 61,724 |
| 3.5 | |
| 34,932 |
| 2.4 | |
Consumer Goods: Durable | |
| 47,171 |
| 2.7 | |
| 42,278 |
| 2.9 | |
Consumer Goods: Non-Durable | |
| 44,407 |
| 2.5 | |
| 32,697 |
| 2.2 | |
Containers, Packaging & Glass | | | 13,895 | | 0.8 | | | 11,674 | | 0.8 | |
Energy: Oil & Gas | | | 2,977 | | 0.2 | | | 3,970 | | 0.3 | |
Environmental Industries | |
| 34,551 |
| 2.0 | |
| 30,612 |
| 2.1 | |
FIRE: Finance | |
| 122,859 |
| 7.0 | |
| 67,608 |
| 4.6 | |
FIRE: Insurance | | | 18,690 | | 1.1 | | | 9,709 | | 0.7 | |
FIRE: Real Estate | |
| 77,248 |
| 4.4 | |
| 69,695 |
| 4.7 | |
Healthcare & Pharmaceuticals | |
| 254,447 |
| 14.5 | |
| 209,460 |
| 14.3 | |
High Tech Industries | |
| 194,888 |
| 11.1 | |
| 180,078 |
| 12.3 | |
Hotels, Gaming & Leisure | |
| 95 |
| 0.0 | |
| 2,316 |
| 0.1 | |
Media: Advertising, Printing & Publishing | |
| 141,756 |
| 8.0 | |
| 128,704 |
| 8.8 | |
Media: Broadcasting & Subscription | |
| 2,741 |
| 0.1 | |
| 2,059 |
| 0.1 | |
Media: Diversified & Production | |
| 45,632 |
| 2.6 | |
| 46,881 |
| 3.2 | |
Retail | |
| 922 |
| 0.1 | |
| — |
| — | |
Services: Business | |
| 228,065 |
| 13.0 | |
| 184,567 |
| 12.6 | |
Services: Consumer | |
| 104,237 |
| 5.9 | |
| 77,065 |
| 5.3 | |
Telecommunications | |
| 36,310 |
| 2.1 | |
| 36,508 |
| 2.5 | |
Transportation: Cargo | | | 105,127 | | 6.0 | | | 97,803 | | 6.7 | |
Wholesale | |
| 35,511 |
| 2.0 | |
| 28,784 |
| 2.0 | |
Total | | $ | 1,759,333 |
| 100.0 | % | $ | 1,465,352 |
| 100.0 | % |
39
| | | | | | | | | | | |
| | June 30, 2023 | | December 31, 2022 |
| ||||||
Fair Value: | | | | | | | | | | | |
Aerospace & Defense |
| $ | 21,011 |
| 1.2 | % | $ | 21,049 |
| 1.4 | % |
Automotive | |
| 38,129 |
| 2.2 | |
| 38,843 |
| 2.7 | |
Banking | |
| 37,046 |
| 2.1 | |
| 37,979 |
| 2.6 | |
Beverage, Food & Tobacco | |
| 16,140 |
| 0.9 | |
| 16,439 |
| 1.1 | |
Capital Equipment | |
| 72,342 |
| 4.1 | |
| 56,074 |
| 3.8 | |
Chemicals, Plastics & Rubber | | | 705 | | 0.0 | | | — | | — | |
Construction & Building | |
| 61,771 |
| 3.5 | |
| 34,877 |
| 2.4 | |
Consumer Goods: Durable | |
| 45,247 |
| 2.6 | |
| 40,357 |
| 2.7 | |
Consumer Goods: Non-Durable | |
| 44,257 |
| 2.5 | |
| 32,843 |
| 2.2 | |
Containers, Packaging & Glass | |
| 14,118 |
| 0.8 | |
| 11,675 |
| 0.8 | |
Energy: Oil & Gas | |
| 2,690 |
| 0.2 | |
| 3,597 |
| 0.2 | |
Environmental Industries | |
| 35,656 |
| 2.0 | |
| 31,457 |
| 2.1 | |
FIRE: Finance | |
| 123,451 |
| 7.0 | |
| 66,639 |
| 4.5 | |
FIRE: Insurance | |
| 18,553 |
| 1.1 | |
| 9,641 |
| 0.7 | |
FIRE: Real Estate | |
| 78,581 |
| 4.4 | |
| 71,154 |
| 4.8 | |
Healthcare & Pharmaceuticals | |
| 255,373 |
| 14.5 | |
| 210,831 |
| 14.4 | |
High Tech Industries | |
| 194,481 |
| 11.0 | |
| 180,823 |
| 12.3 | |
Hotels, Gaming & Leisure | |
| 62 |
| 0.0 | |
| 2,331 |
| 0.2 | |
Media: Advertising, Printing & Publishing | |
| 143,152 |
| 8.1 | |
| 129,362 |
| 8.8 | |
Media: Broadcasting & Subscription | |
| 2,011 |
| 0.1 | |
| 2,019 |
| 0.1 | |
Media: Diversified & Production | |
| 45,002 |
| 2.6 | |
| 46,348 |
| 3.2 | |
Retail | | | 954 | | 0.1 | | | — | | — | |
Services: Business | | | 230,154 | | 13.0 | | | 184,535 | | 12.6 | |
Services: Consumer | | | 104,995 | | 5.9 | | | 77,998 | | 5.3 | |
Telecommunications | | | 36,848 | | 2.1 | | | 36,415 | | 2.5 | |
Transportation: Cargo | |
| 106,056 |
| 6.0 | |
| 97,153 |
| 6.6 | |
Wholesale | |
| 35,989 |
| 2.0 | |
| 28,557 |
| 2.0 | |
Total | | $ | 1,764,774 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
Note 4. Fair Value Measurements
Investments
The Company values all investments in accordance with ASC Topic 820. ASC Topic 820 requires enhanced disclosures about assets and liabilities that are measured and reported at fair value. As defined in ASC Topic 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Where available, fair value is based on observable market prices or parameters, or derived from such prices or parameters. Where observable prices or inputs are not available, valuation models are applied. These valuation models involve some level of management estimation and judgment, the degree of which is dependent on the price transparency for the assets or liabilities or market and the assets’ or liabilities’ complexity.
ASC Topic 820 establishes a hierarchal disclosure framework which prioritizes and ranks the level of market price observability of inputs used in measuring investments at fair value. Market price observability is affected by a number of factors, including the type of investment and the characteristics specific to the investment. Investments with readily available active quoted prices or for which fair value can be measured from actively quoted prices generally will have a higher degree of market price observability and a lesser degree of judgment used in measuring fair value.
Based on the observability of the inputs used in the valuation techniques, the Company is required to provide disclosures on fair value measurements according to the fair value hierarchy. The fair value hierarchy ranks the observability of the inputs used to determine fair values. Investments carried at fair value are classified and disclosed in one of the following three categories:
| ● | Level 1 – Valuations based on unadjusted quoted prices in active markets for identical assets or liabilities at the measurement date. |
3940
| ● | Level 2 – Valuations based on inputs other than quoted prices in active markets, including quoted prices for similar assets or liabilities, which are either directly or indirectly observable. |
| ● | Level 3 – Valuations based on inputs that are unobservable and significant to the overall fair value measurement. This includes situations where there is little, if any, market activity for the assets or liabilities. The inputs into the determination of fair value are based upon the best information available and may require significant management judgment or estimation. |
In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The Company’s assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the asset or liability.
For periods prior to September 30, 2022, the Board determined the fair value of the Company’s investments. Pursuant to the new SEC Rule 2a-5 of the 1940 Act, on September 30, 2022 the Board designated MC Advisors as the Company’s valuation designee (the “Valuation Designee”). The Board is responsible for oversight of the Valuation Designee. The Valuation Designee has established a valuation committee to determine in good faith the fair value of the Company’s investments, based on input of Valuation Designee’s management and personnel and independent valuation firms which are engaged at the direction of the valuation committee to assist in the valuation of certain portfolio investments lacking a readily available market quotation. The valuation committee determines fair values pursuant to a valuation policy approved by the Board and pursuant to a consistently applied valuation process.
With respect to investments for which market quotations are not readily available, the Valuation Designee undertakes a multi-step valuation process each quarter, as described below:
| ● | the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of the Valuation Designee responsible for the credit monitoring of the portfolio investment; |
| ● | the Valuation Designee engages an independent valuation firm to conduct independent appraisals of a selection of investments for which market quotations are not readily available. The Valuation Designee will consult with an independent valuation firm relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly for each investment; |
| ● | to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the Valuation Designee; |
| ● | preliminary valuation conclusions are then documented and discussed with the valuation committee of the Valuation Designee; |
| ● | the valuation conclusions are approved by the valuation committee of the Valuation Designee; and |
| ● | a report prepared by the Valuation Designee is presented to the Board quarterly to allow the Board to perform its oversight duties of the valuation process and the Valuation Designee. |
4041
The accompanying consolidated schedules of investments held by the Company consist primarily of private debt instruments (“Level 3 debt”). The Valuation Designee generally uses the income approach to determine fair value for Level 3 debt where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, the Valuation Designee may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may include probability weighting of alternative outcomes. The Valuation Designee generally considers the Company’s Level 3 debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner; the loan is in covenant compliance or is otherwise not deemed to be impaired. In determining the fair value of the performing Level 3 debt, the Valuation Designee considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a Level 3 debt instrument is not performing, as defined above, the Valuation Designee will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the Level 3 debt instrument.
Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of its debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, the Valuation Designee also considers the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.
Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Valuation Designee derives a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, the Valuation Designee analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.
In addition, for certain debt investments, the Valuation Designee may base its valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Valuation Designee generally uses the midpoint of the bid/ask range as its best estimate of fair value of such investment.
As of March 31,June 30, 2023, the Valuation Designee determined, in good faith, the fair value of the Company’s portfolio investments in accordance with GAAP and the Company’s valuation procedures based on the facts and circumstances known by the Company at that time, or reasonably expected to be known at that time.
Foreign Currency Forward Contracts
The valuation for the Company’s foreign currency forward contracts is based on the difference between the exchange rate associated with the forward contract and the exchange rate at the current period end. Foreign currency forward contracts are categorized as Level 2 in the fair value hierarchy.
4142
Fair Value Disclosures
The following tables present fair value measurements of investments and foreign currency forward contracts, by major class according to the fair value hierarchy:
| | | | | | | | | | | | | | | | | | | | | | | | |
| | Fair Value Measurements | | Fair Value Measurements | ||||||||||||||||||||
March 31, 2023 |
| Level 1 |
| Level 2 |
| Level 3 |
| Total | ||||||||||||||||
June 30, 2023 |
| Level 1 |
| Level 2 |
| Level 3 |
| Total | ||||||||||||||||
Senior secured loans | | $ | — | | $ | — | | $ | 1,320,148 | | $ | 1,320,148 | | $ | — | | $ | — | | $ | 1,529,436 | | $ | 1,529,436 |
Unitranche secured loans | |
| — | |
| — | |
| 128,380 | |
| 128,380 | |
| — | |
| — | |
| 129,399 | |
| 129,399 |
Junior secured loans | |
| — | |
| — | |
| 44,633 | |
| 44,633 | |
| — | |
| — | |
| 44,190 | |
| 44,190 |
Equity securities | |
| 52 | |
| — | |
| 50,697 | |
| 50,749 | |
| 32 | |
| — | |
| 61,717 | |
| 61,749 |
Total investments | | $ | 52 | | $ | — | | $ | 1,543,858 | | $ | 1,543,910 | | $ | 32 | | $ | — | | $ | 1,764,742 | | $ | 1,764,774 |
Foreign currency forward contracts asset (liability) | | $ | — | | $ | 1,409 | | $ | — | | $ | 1,409 | | $ | — | | $ | (1,863) | | $ | — | | $ | (1,863) |
| | | | | | | | | | | | |
| | Fair Value Measurements | ||||||||||
December 31, 2022 |
| Level 1 |
| Level 2 |
| Level 3 |
| Total | ||||
Senior secured loans | | $ | — | | $ | — | | $ | 1,250,788 | | $ | 1,250,788 |
Unitranche secured loans | |
| — | |
| — | |
| 127,378 | |
| 127,378 |
Junior secured loans | |
| — | |
| — | |
| 44,469 | |
| 44,469 |
Equity securities | |
| 34 | |
| — | |
| 46,327 | |
| 46,361 |
Total investments | | $ | 34 | | $ | — | | $ | 1,468,962 | | $ | 1,468,996 |
Foreign currency forward contracts asset (liability) | | $ | — | | $ | 1,296 | | $ | — | | $ | 1,296 |
Senior secured loans, unitranche secured loans and junior secured loans are collateralized by tangible and intangible assets of the borrowers. These investments include loans to entities that have some level of challenge in obtaining financing from other, more conventional institutions, such as a bank. Interest rates on these loans are either fixed or floating and are based on current market conditions and credit ratings of the borrower. Excluding loans on non-accrual, the contractual interest rates on the loans ranged from 8.00% to 20.66%21.16% at March 31,June 30, 2023 and 7.14% to 19.50% at December 31, 2022. The maturity dates on the loans outstanding at March 31,June 30, 2023 range between MayAugust 2023 and April 2030.
The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended March 31, 2023 and 2022:June 30, 2023:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | Investments | | Investments | ||||||||||||||||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total | | Senior | | Unitranche | | Junior | | Equity | | Total | ||||||||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | | secured loans | | secured loans | | secured loans | | securities | | investments | ||||||||||
Balance as of December 31, 2022 |
| $ | 1,250,788 |
| $ | 127,378 |
| $ | 44,469 |
| $ | 46,327 |
| $ | 1,468,962 | |||||||||||||||
Balance as of March 31, 2023 |
| $ | 1,320,148 |
| $ | 128,380 |
| $ | 44,633 |
| $ | 50,697 |
| $ | 1,543,858 | |||||||||||||||
Net realized gain (loss) on investments | |
| (5) | |
| — | |
| — | |
| 949 | |
| 944 | |
| (1,604) | |
| — | |
| — | |
| — | |
| (1,604) |
Net change in unrealized gain (loss) on investments | |
| 3,738 | |
| 265 | |
| 84 | |
| 501 | |
| 4,588 | |
| 527 | |
| 311 | |
| (1,088) | |
| (2,539) | |
| (2,789) |
Purchases of investments and other adjustments to cost (1) | |
| 97,250 | |
| 890 | |
| 2,119 | |
| 3,882 | |
| 104,141 | |
| 254,104 | |
| 993 | |
| 1,931 | |
| 13,667 | |
| 270,695 |
Proceeds from principal payments and sales of investments (2) | |
| (31,623) | |
| (153) | |
| (2,039) | |
| (962) | |
| (34,777) | |
| (41,663) | |
| (285) | |
| (3,362) | |
| (108) | |
| (45,418) |
Reclassifications (3) | | | — | | | — | | | — | | | — | | | — | | | (2,076) | | | — | | | 2,076 | | | — | | | — |
Balance as of March 31, 2023 | | $ | 1,320,148 | | $ | 128,380 | | $ | 44,633 | | $ | 50,697 | | $ | 1,543,858 | |||||||||||||||
Balance as of June 30, 2023 | | $ | 1,529,436 | | $ | 129,399 | | $ | 44,190 | | $ | 61,717 | | $ | 1,764,742 | |||||||||||||||
4243
| | | | | | | | | | | | | | | |
| | Investments | |||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of December 31, 2021 |
| $ | 638,120 |
| $ | 30,161 |
| $ | 18,580 |
| $ | 17,790 |
| $ | 704,651 |
Net realized gain (loss) on investments | |
| 25 | |
| — | |
| — | |
| — | |
| 25 |
Net change in unrealized gain (loss) on investments | |
| 1,091 | |
| 627 | |
| (255) | |
| 1,521 | |
| 2,984 |
Purchases of investments and other adjustments to cost (1) | |
| 56,166 | |
| 3,345 | |
| 19,078 | |
| 2,559 | |
| 81,148 |
Proceeds from principal payments and sales of investments (2) | |
| (22,238) | |
| (34) | |
| — | |
| — | |
| (22,272) |
Reclassifications (3) | | | (17,215) | | | 17,215 | | | — | | | — | | | — |
Balance as of March 31, 2022 | | $ | 655,949 | | $ | 51,314 | | $ | 37,403 | | $ | 21,870 | | $ | 766,536 |
| | | | | | | | | | | | | | | |
| | Investments | |||||||||||||
| | Senior | | Unitranche | | Junior | | Equity | | Total | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of December 31, 2022 |
| $ | 1,250,788 |
| $ | 127,378 |
| $ | 44,469 |
| $ | 46,327 |
| $ | 1,468,962 |
Net realized gain (loss) on investments | |
| (1,609) | |
| — | |
| — | |
| 949 | |
| (660) |
Net change in unrealized gain (loss) on investments | |
| 4,265 | |
| 576 | |
| (1,004) | |
| (2,038) | |
| 1,799 |
Purchases of investments and other adjustments to cost (1) | |
| 351,354 | |
| 1,883 | |
| 4,050 | |
| 17,549 | |
| 374,836 |
Proceeds from principal payments and sales of investments (2) | |
| (73,286) | |
| (438) | |
| (5,401) | |
| (1,070) | |
| (80,195) |
Reclassifications (3) | | | (2,076) | | | — | | | 2,076 | | | — | | | — |
Balance as of June 30, 2023 | | $ | 1,529,436 | | $ | 129,399 | | $ | 44,190 | | $ | 61,717 | | $ | 1,764,742 |
| (1) | Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest. |
| (2) | Represents net proceeds from investments sold and principal paydowns received. |
| (3) | Represents non-cash reclassification of investment type due to a restructuring. |
The following tables provide a reconciliation of the beginning and ending balances for investments at fair value that use Level 3 inputs for the three and six months ended June 30, 2022:
| | | | | | | | | | | | | | | |
|
| Investments | |||||||||||||
|
| Senior |
| Unitranche |
| Junior |
| Equity |
| Total | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of March 31, 2022 | | $ | 655,949 | | $ | 51,314 | | $ | 37,403 | | $ | 21,870 | | $ | 766,536 |
Net realized gain (loss) on investments | |
| (42) | |
| — | |
| — | |
| — | |
| (42) |
Net change in unrealized gain (loss) on investments | |
| (6,286) | |
| (129) | |
| (300) | |
| 481 | |
| (6,234) |
Purchases of investments and other adjustments to cost (1) | |
| 94,921 | |
| 37,789 | |
| 1,444 | |
| 2,454 | |
| 136,608 |
Proceeds from principal payments and sales of investments (2) | |
| (26,388) | |
| (78) | |
| — | |
| (435) | |
| (26,901) |
Reclassifications (3) | |
| — | |
| — | |
| — | |
| — | |
| — |
Balance as of June 30, 2022 | | $ | 718,154 | | $ | 88,896 | | $ | 38,547 | | $ | 24,370 | | $ | 869,967 |
| | | | | | | | | | | | | | | |
|
| Investments | |||||||||||||
|
| Senior |
| Unitranche |
| Junior |
| Equity |
| Total | |||||
| | secured loans | | secured loans | | secured loans | | securities | | investments | |||||
Balance as of December 31, 2021 | | $ | 638,120 | | $ | 30,161 | | $ | 18,580 | | $ | 17,790 | | $ | 704,651 |
Net realized gain (loss) on investments | |
| (17) | |
| — | |
| — | |
| — | |
| (17) |
Net change in unrealized gain (loss) on investments | |
| (5,195) | |
| 498 | |
| (555) | |
| 2,002 | |
| (3,250) |
Purchases of investments and other adjustments to cost (1) | |
| 151,087 | |
| 41,134 | |
| 20,522 | |
| 5,013 | |
| 217,756 |
Proceeds from principal payments and sales of investments (2) | |
| (48,626) | |
| (112) | |
| — | |
| (435) | |
| (49,173) |
Reclassifications (3) | |
| (17,215) | |
| 17,215 | |
| — | |
| — | |
| — |
Balance as of June 30, 2022 | | $ | 718,154 | | $ | 88,896 | | $ | 38,547 | | $ | 24,370 | | $ | 869,967 |
| (1) | Includes purchases of new investments, effects of refinancing and restructurings, premium and discount accretion and amortization and PIK interest. |
| (2) | Represents net proceeds from investments sold and principal paydowns received. |
| (3) | Represents non-cash reclassification of investment type due to a restructuring. |
44
The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and six months ended March 31,June 30, 2023, attributable to Level 3 investments still held at June 30, 2023, was ($3,956) and $2,000, respectively. The total net change in unrealized gain (loss) on investments included on the consolidated statements of operations for the three and six months ended June 30, 2022, attributable to Level 3 investments still held at March 31, 2023 andJune 30, 2022, was $5,633($6,004) and $3,164,($2,733), respectively. Reclassifications impacting Level 3 of the fair value hierarchy are reported as transfers in or out of Level 3 as of the beginning of the period in which the reclassifications occur. There were no transfers among Levels 1, 2 and 3 during the three and six months ended March 31,June 30, 2023 and 2022.
Significant Unobservable Inputs
ASC Topic 820 requires disclosure of quantitative information about the significant unobservable inputs used in the valuation of assets and liabilities classified as Level 3 within the fair value hierarchy. Disclosure of this information is not required in circumstances where a valuation (unadjusted) is obtained from a third-party pricing service and the information regarding the unobservable inputs is not reasonably available to the Company and as such, the disclosures provided below exclude those investments valued in that manner. The tables below are not intended to be all-inclusive, but rather to provide information on significant unobservable inputs and valuation techniques used by the Valuation Designee.
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of June 30, 2023 were as follows:
| | | | | | | | | | | | | | |
|
| | |
|
|
|
|
|
|
| |
| ||
| | | | | | | | | Weighted | | | | | |
| | | | | Valuation | | Unobservable | | Average | | Range | | ||
| | Fair Value | | Technique | | Input | | Mean | | Minimum | | Maximum |
| |
Assets: |
| |
|
|
|
|
|
|
|
|
|
|
| |
Senior secured loans | | $ | 968,198 |
| Discounted cash flow |
| EBITDA multiples |
| 11.3 | x | 4.5 | x | 20.0 | x |
| | | | | |
| Market yields |
| 11.5 | % | 9.3 | % | 27.5 | % |
Senior secured loans | |
| 386,468 |
| Discounted cash flow |
| Revenue multiples |
| 7.4 | x | 1.3 | x | 20.0 | x |
| | | | | |
| Market yields |
| 11.5 | % | 9.8 | % | 17.0 | % |
Senior secured loans | |
| 12,412 |
| Liquidation |
| Probability weighting of alternative outcomes |
| 18.0 | % | 18.0 | % | 18.0 | % |
Senior secured loans | |
| 9,156 |
| Enterprise value |
| EBITDA multiples |
| 12.5 | x | 12.5 | x | 12.5 | x |
Senior secured loans | |
| 366 |
| Enterprise value |
| Revenue multiples |
| 0.8 | x | 0.8 | x | 0.8 | x |
Unitranche secured loans | |
| 96,747 |
| Discounted cash flow |
| EBITDA multiples |
| 9.6 | x | 8.3 | x | 14.8 | x |
| | | | | |
| Market yields |
| 14.9 | % | 9.2 | % | 25.8 | % |
Unitranche secured loans | |
| 32,652 |
| Discounted cash flow |
| Revenue multiples |
| 9.6 | x | 6.3 | x | 12.8 | x |
| | | | | |
| Market yields |
| 12.3 | % | 12.1 | % | 12.6 | % |
Junior secured loans | |
| 42,545 |
| Discounted cash flow |
| Market yields |
| 13.3 | % | 12.6 | % | 15.6 | % |
Junior secured loans | |
| 1,645 |
| Enterprise value |
| Revenue multiples |
| 0.8 | x | 0.8 | x | 0.8 | x |
Equity securities | |
| 43,872 |
| Enterprise value |
| EBITDA multiples |
| 12.6 | x | 4.5 | x | 19.0 | x |
Equity securities | |
| 15,926 |
| Enterprise value |
| Revenue multiples |
| 5.5 | x | 1.3 | x | 11.5 | x |
Equity securities | |
| 1,427 |
| Option pricing model |
| Volatility |
| 63.1 | % | 41.8 | % | 76.0 | % |
Total Level 3 Assets | | $ | 1,611,414 | (1) | |
|
|
|
|
|
|
|
| |
| (1) | Excludes investments of $153,328 at fair value where valuation (unadjusted) is obtained from a third-party pricing service or broker quote for which such disclosure is not required. |
4345
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of March 31, 2023 were as follows:
| | | | | | | | | | | | | | |
| | | | | | | | | Weighted |
| | | |
|
| | | | | | | Unobservable | | Average | | Range |
| ||
|
| Fair Value |
| Valuation Technique |
| Input |
| Mean |
| Minimum |
| Maximum |
| |
Assets: | | | | | | | | | | | | | |
|
Senior secured loans | | $ | 817,101 |
| Discounted cash flow |
| EBITDA multiples |
| 11.1 | x | 4.0 | x | 19.5 | x |
| |
| |
| | | Market yields | | 11.0 | % | 8.3 | % | 20.8 | % |
Senior secured loans | |
| 380,294 |
| Discounted cash flow |
| Revenue multiples |
| 7.3 | x | 1.4 | x | 20.0 | x |
| |
| |
| | | Market yields | | 11.4 | % | 9.5 | % | 16.6 | % |
Senior secured loans | |
| 2,376 |
| Enterprise value |
| Revenue multiples |
| 0.8 | x | 0.8 | x | 0.8 | x |
Unitranche secured loans | |
| 95,974 |
| Discounted cash flow |
| EBITDA multiples |
| 9.7 | x | 8.3 | x | 14.5 | x |
| |
| |
| |
| Market yields |
| 14.5 | % | 8.7 | % | 25.1 | % |
Unitranche secured loans | |
| 32,406 |
| Discounted cash flow | | Revenue multiples | | 9.4 | x | 6.0 | x | 12.5 | x |
| |
| |
| |
| Market yields |
| 11.4 | % | 11.2 | % | 11.7 | % |
Junior secured loans | |
| 44,633 |
| Discounted cash flow |
| Market yields |
| 13.0 | % | 12.4 | % | 15.6 | % |
Equity securities | |
| 35,515 |
| Enterprise value |
| EBITDA multiples |
| 11.8 | x | 4.0 | x | 18.6 | x |
Equity securities | |
| 13,172 |
| Enterprise value |
| Revenue multiples |
| 5.2 | x | 1.4 | x | 11.3 | x |
Equity securities | |
| 1,402 |
| Option pricing model |
| Volatility |
| 62.9 | % | 45.0 | % | 74.0 | % |
Total Level 3 Assets | | $ | 1,422,873 | (1) | |
| |
| |
| |
| | |
The valuation techniques and significant unobservable inputs used in recurring Level 3 fair value measurements of assets as of December 31, 2022 were as follows:
| | | | | | | | | | | | | | |
|
| | |
| |
| |
| Weighted |
| | | |
|
| | Fair | | | | Unobservable | | Average | | Range |
| |||
| | Value | | Valuation Technique | | Input | | Mean | | Minimum | | Maximum |
| |
Assets: |
| |
|
|
|
|
|
|
|
|
|
|
| |
Senior secured loans | | $ | 790,762 |
| Discounted cash flow |
| EBITDA multiples |
| 10.7 | x | 3.8 | x | 18.6 | x |
| |
|
|
|
|
| Market yields |
| 10.9 | % | 8.7 | % | 22.3 | % |
Senior secured loans | |
| 354,158 |
| Discounted cash flow |
| Revenue multiples |
| 7.3 | x | 1.4 | x | 20.0 | x |
| |
| |
| | | Market yields | | 11.5 | % | 10.0 | % | 21.6 | % |
Unitranche secured loans | |
| 95,341 |
| Discounted cash flow |
| EBITDA multiples |
| 9.9 | x | 8.5 | x | 15.5 | x |
| |
| | | | | Market yields |
| 12.1 | % | 9.2 | % | 13.8 | % |
Unitranche secured loans | |
| 32,037 |
| Discounted cash flow |
| Revenue multiples |
| 9.3 | x | 5.8 | x | 12.5 | x |
| |
| | | | | Market yields | | 11.8 | % | 11.6 | % | 12.1 | % |
Junior secured loans | |
| 44,469 |
| Discounted cash flow |
| Market yields |
| 13.7 | % | 12.3 | % | 20.4 | % |
Equity securities | |
| 31,060 |
| Enterprise value |
| EBITDA multiples |
| 10.9 | x | 3.8 | x | 17.9 | x |
Equity securities | |
| 13,400 |
| Enterprise value |
| Revenue multiples |
| 5.1 | x | 1.9 | x | 12.3 | x |
Equity securities | |
| 1,261 |
| Option pricing model |
| Volatility |
| 75.1 | % | 49.4 | % | 126.4 | % |
Total Level 3 Assets | | $ | 1,362,488 | (1) | | | | | | | | | | |
| (1) | Excludes investments of $106,474 at fair value where valuation (unadjusted) is obtained from a third-party pricing service or broker quote for which such disclosure is not required. |
The significant unobservable input used in the income approach of fair value measurement of the Company’s investments is the discount rate used to discount the estimated future cash flows expected to be received from the underlying investment, which include both future principal and interest payments. Increases (decreases) in the discount rate would result in a decrease (increase) in the fair value estimate of the investment. Included in the consideration and selection of discount rates are the following factors: risk of default, rating of the investment and comparable investments, and call provisions.
44
The significant unobservable inputs used in the market approach of fair value measurement of the Company’s investments are the market multiples of EBITDA or revenue of the comparable guideline public companies. The Valuation Designee selects a population of public companies for each investment with similar operations and attributes of the portfolio company. Using these guideline public companies’ data, a range of multiples of enterprise value to EBITDA or revenue is calculated. The Valuation Designee selects percentages from the range of multiples for purposes of determining the portfolio company’s estimated enterprise value based on said multiple and generally the latest twelve months EBITDA or revenue of the portfolio company (or other meaningful measure). Increases (decreases) in the multiple will result in an increase (decrease) in enterprise value, resulting in an increase (decrease) in the fair value estimate of the investment.
Other Financial Assets and Liabilities
ASC Topic 820 requires disclosure of the fair value of financial instruments for which it is practical to estimate such value. The Company believes that the carrying amounts of its other financial instruments such as cash, receivables and payables approximate the fair value of such items due to the short maturity of such instruments. Fair value of the Company’s Credit Facility, Term Loan, and 2022 ABS, and Short-Term Borrowings is estimated by discounting remaining payments using applicable market rates or market quotes for similar instruments at the measurement date, if applicable. As of both March 31,June 30, 2023 and December 31, 2022, the Company believes that the carrying value of its Credit Facility approximates fair value. As of both March 31, 2023 and December 31, 2022, the Company believes that the carrying value of its Term Loan approximates fair value. As of March 31,June 30, 2023 and December 31, 2022, the estimated fair value of the Company’s 2022 ABS Class A and Class B notes was $301,552$301,591 and $300,028, respectively. As of June 30, 2023, the Company believes that the carrying value of its Short-Term Borrowings approximates fair value.
4546
Note 5. Transactions with Affiliated Companies
An affiliated company is a company in which the Company has an ownership interest of 5% or more of its voting securities. A controlled affiliate company is a company in which the Company has an ownership interest of more than 25% of its voting securities. Please see the Company’s consolidated schedule of investments for the type of investment, principal amount, interest rate including the spread, and the maturity date. Transactions related to the Company’s investments with affiliates for the threesix months ended March 31,June 30, 2023 and 2022 were as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| Fair value at | | | | | | | | Sales and | | PIK | | | | | | | | Net | | | |
| Fair value at | | | | | | | | Sales and | | PIK | | | | | | | | Net | | | | ||||||||
| | December 31, | | Transfers | | Purchases | | paydowns | | interest | | Discount | | Net realized | | unrealized | | Fair value at | | December 31, | | Transfers | | Purchases | | paydowns | | interest | | Discount | | Net realized | | unrealized | | Fair value at | ||||||||||||||||||
Portfolio Company | | 2022 |
| in (out) |
| (cost) |
| (cost) |
| (cost) |
| accretion |
| gain (loss) |
| gain (loss) |
| March 31, 2023 | | 2022 |
| in (out) |
| (cost) |
| (cost) |
| (cost) |
| accretion |
| gain (loss) |
| gain (loss) |
| June 30, 2023 | ||||||||||||||||||
Non-controlled affiliate company investment: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Nastel Technologies, LLC | | $ | 3,500 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 4 | | $ | — | | $ | (4) | | $ | 3,500 | | $ | 3,500 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 6 | | $ | — | | $ | (6) | | $ | 3,500 |
Nastel Technologies, LLC (Revolver) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
Nastel Technologies, LLC (3,408 Class A units) |
| | 3,578 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 537 | | | 4,115 |
| | 3,578 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 750 | | | 4,328 |
|
| | 7,078 |
| | — | | | — | | | — | | | — | | | 4 | | | — | | | 533 | | | 7,615 |
| | 7,078 |
| | — | | | — | | | — | | | — | | | 6 | | | — | | | 744 | | | 7,828 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (Revolver) (1) |
| | 4,755 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (12) | | | 4,743 |
| | 4,755 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 6 | | | 4,761 |
|
| | 4,755 |
| | — | | | — | | | — | | | — | | | — | | | — | | | (12) | | | 4,743 |
| | 4,755 |
| | — | | | — | | | — | | | — | | | — | | | — | | | 6 | | | 4,761 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (Junior secured loan) |
| | 5,850 |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,850 |
| | 5,850 |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 5,850 |
SFR Holdco, LLC (Delayed draw junior secured loan) |
| | 2,316 |
| | — | | | 1,261 | | | — | | | — | | | — | | | — | | | — | | | 3,577 |
| | 2,316 |
| | — | | | 2,071 | | | — | | | — | | | — | | | — | | | — | | | 4,387 |
SFR Holdco, LLC (13.9% of equity commitments) | | | 3,900 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,900 | | | 3,900 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,900 |
SFR Holdco, LLC (10.5% of equity commitments) | | | 1,545 | | | — | | | 841 | | | — | | | — | | | — | | | — | | | — | | | 2,386 | | | 1,545 | | | — | | | 1,380 | | | — | | | — | | | — | | | — | | | — | | | 2,925 |
|
| | 13,611 |
| | — | | | 2,102 | | | — | | | — | | | — | | | — | | | — | | | 15,713 |
| | 13,611 |
| | — | | | 3,451 | | | — | | | — | | | — | | | — | | | — | | | 17,062 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SheerTrans Solutions, LLC |
| | 5,101 |
| | — | | | — | | | (13) | | | — | | | 6 | | | — | | | (5) | | | 5,089 |
| | 5,101 |
| | — | | | — | | | (25) | | | — | | | 9 | | | — | | | (28) | | | 5,057 |
SheerTrans Solutions, LLC (Revolver) |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | — |
| | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
SheerTrans Solutions, LLC (8,642,579 preferred interests) | | | 8,643 | | | — | | | — | | | — | | | — | | | — | | | — | | | 86 | | | 8,729 | | | 8,643 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 8,643 |
|
| | 13,744 |
| | — | | | — | | | (13) | | | — | | | 6 | | | — | | | 81 | | | 13,818 |
| | 13,744 |
| | — | | | — | | | (25) | | | — | | | 9 | | | — | | | (28) | | | 13,700 |
Total non-controlled affiliate company investments | | $ | 39,188 | | $ | — | | $ | 2,102 | | $ | (13) | | $ | — | | $ | 10 | | $ | — | | $ | 602 | | $ | 41,889 | | $ | 39,188 | | $ | — | | $ | 3,451 | | $ | (25) | | $ | — | | $ | 15 | | $ | — | | $ | 722 | | $ | 43,351 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||
|
| Fair value at |
| | |
| | |
| Sales and |
| PIK |
| | |
| |
| Net |
| |
| Fair value at |
| | |
| | |
| Sales and |
| PIK |
| | |
| |
| Net |
| | | |||||||||||
| | December 31, | | Transfers | | Purchases | | paydowns | | interest | | Discount | | Net realized | | unrealized | | Fair value at | | December 31, | | Transfers | | Purchases | | paydowns | | interest | | Discount | | Net realized | | unrealized | | Fair value at | ||||||||||||||||||
Portfolio Company | | 2021 | | in (out) | | (cost) | | (cost) | | (cost) | | accretion | | gain (loss) | | gain (loss) | | March 31, 2022 | | 2021 | | in (out) | | (cost) | | (cost) | | (cost) | | accretion | | gain (loss) | | gain (loss) | | June 30, 2022 | ||||||||||||||||||
Non-controlled affiliate company investment: |
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
J2 BWA Funding III, LLC (Delayed Draw) | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | |||||||||||||||||||||||||||
J2 BWA Funding III, LLC (Commitment to purchase up to 7.6% of the equity) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |||||||||||||||||||||||||||
| | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | |||||||||||||||||||||||||||
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |||||||||||||||||||||||||||
Second Avenue SFR Holdings II LLC (Revolver) (1) | | $ | 2,104 | | $ | — | | $ | 487 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 2,591 | | | 2,104 | | | — | | | 487 | | | — | | | — | | | — | | | — | | | — | | | 2,591 |
| | | 2,104 | | | — | | | 487 | | | — | | | — | | | — | | | — | | | — | | | 2,591 | | | 2,104 | | | — | | | 487 | | | — | | | — | | | — | | | — | | | — | | | 2,591 |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (Junior secured loan) | |
| 5,850 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 5,850 | |
| 5,850 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 5,850 |
SFR Holdco, LLC (Delayed draw junior secured loan) | |
| — | |
| — | |
| 196 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 196 | |
| — | |
| — | |
| 1,146 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 1,146 |
SFR Holdco, LLC (13.9% of equity commitments) | | | 3,900 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,900 | | | 3,900 | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 3,900 |
SFR Holdco, LLC (10.5% of equity commitments) | |
| — | |
| — | |
| 131 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 131 | |
| — | |
| — | |
| 765 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 765 |
| |
| 9,750 | |
| — | |
| 327 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 10,077 | |
| 9,750 | |
| — | |
| 1,911 | |
| — | |
| — | |
| — | |
| — | |
| — | |
| 11,661 |
Total non-controlled affiliate company investments | | $ | 11,854 | | $ | — | | $ | 814 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 12,668 | | $ | 11,854 | | $ | — | | $ | 2,398 | | $ | — | | $ | — | | $ | — | | $ | — | | $ | — | | $ | 14,252 |
(1) | Second Avenue SFR Holdings II LLC is a related entity to SFR Holdco, LLC and is being presented as a non-controlled affiliate for that reason. |
4647
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| For the three months ended March 31, |
| For the six months ended June 30, | ||||||||||||||||||||||||||||||||
| | 2023 | | 2022 | | 2023 | | 2022 | ||||||||||||||||||||||||||||
| | Interest | | Dividend | | | | | Interest | | Dividend | | | | | Interest | | Dividend | | | | | Interest | | Dividend | | | | ||||||||
Portfolio Company | | Income |
| Income |
| Fee Income |
| Income |
| Income |
| Fee Income | | Income |
| Income |
| Fee Income |
| Income |
| Income |
| Fee Income | ||||||||||||
Non-controlled affiliate company investments: |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
| | |
Nastel Technologies, LLC | | $ | 101 | | $ | — | | $ | — | | $ | n/a | | $ | n/a | | $ | n/a | | | 206 | | | — | | | — | | | n/a | | | n/a | | | n/a |
Nastel Technologies, LLC (Revolver) | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a |
Nastel Technologies, LLC (Class A units) | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a |
| | | 101 | | | — | | | — | | | n/a | | | n/a | | | n/a | | | 206 | | | — | | | — | | | n/a | | | n/a | | | n/a |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Second Avenue SFR Holdings II LLC (Revolver) | | | 138 | | | — | | | — | | | 46 | | | — | | | — | | | 284 | | | — | | | — | | | 97 | | | — | | | — |
| | | 138 | | | — | | | — | | | 46 | | | — | | | — | | | 284 | | | — | | | — | | | 97 | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SFR Holdco, LLC (Junior secured loan) | | | 117 | | | — | | | — | | | 117 | | | — | | | — | | | 234 | | | — | | | — | | | 234 | | | — | | | — |
SFR Holdco, LLC (Delayed draw junior secured loan) | | | 64 | | | — | | | — | | | 1 | | | — | | | — | | | 143 | | | — | | | — | | | 20 | | | — | | | — |
SFR Holdco, LLC (LLC interest) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
SFR Holdco, LLC (LLC interest) | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — |
| | | 181 | | | — | | | — | | | 118 | | | — | | | — | | | 377 | | | — | | | — | | | 254 | | | — | | | — |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
SheerTrans Solutions, LLC | | | 161 | | | — | | | — | | | n/a | | | n/a | | | n/a | | | 326 | | | — | | | — | | | n/a | | | n/a | | | n/a |
SheerTrans Solutions, LLC (Revolver) | | | 2 | | | — | | | — | | | n/a | | | n/a | | | n/a | | | 4 | | | — | | | — | | | n/a | | | n/a | | | n/a |
SheerTrans Solutions, LLC (Preferred interests) | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a | | | — | | | — | | | — | | | n/a | | | n/a | | | n/a |
| | | 163 | | | — | | | — | | | n/a | | | n/a | | | n/a | | | 330 | | | — | | | — | | | n/a | | | n/a | | | n/a |
Total non-controlled affiliate company investments | | $ | 583 | | $ | — | | $ | — | | $ | 164 | | $ | — | | $ | — | | $ | 1,197 | | $ | — | | $ | — | | $ | 351 | | $ | — | | $ | — |
Note 6. Transactions with Related Parties
The Company has entered into an investment advisory agreement with MC Advisors (the “Investment Advisory Agreement”), under which MC Advisors, subject to the overall supervision of the Board, provides investment advisory services to the Company. The Company pays MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components -– a base management fee and an incentive fee. The cost of both the base management fee and the incentive fee are borne by the Company’s stockholders, unless such fees are waived by MC Advisors.
On April 18, 2022, MC Advisors agreed to permanently waive a portion of the base management fees and incentive fees payable by the Company to MC Advisors under the Investment Advisory Agreement pursuant to a fee waiver letter. The base management fee waiver took effect beginning April 1, 2022 (the “Effective Date”) and the incentive fee waivers took effect beginning January 1, 2022.
Beginning with the Effective Date, the base management fee is calculated at an annual rate of 1.25% of average total assets (reduced from 1.50%), which includes assets financed using leverage. Following any future quotation or listing of the Company’s securities on a national securities exchange (an “Exchange Listing”) or any future quotation or listing of its securities on any other public trading market, the base management fee will be calculated at an annual rate of 1.75% of average invested assets (calculated as total assets excluding cash). The base management fee is payable in arrears.
Base management fees for the three and six months ended March 31,June 30, 2023 were $5,382 and $10,229, respectively. MC Advisors elected to voluntarily waive zero of such base management fees for both the three and six months ended June 30, 2023. Base management fees for the three and six months ended June 30, 2022 were $4,847$2,678 and $2,796,$5,474, respectively. There were noMC Advisors elected to voluntarily waive $1,701 of such base management fees for both the three and six months ended June 30, 2022. These base management fee waivers for bothare not subject to recoupment by MC Advisors. There is no guarantee that MC Advisors will waive additional base management fees in the three months ended March 31, 2023 and 2022.future.
The incentive fee consists of two parts. The first part is calculated and payable quarterly in arrears based on the Company’s pre-incentive fee net investment income for the preceding quarter. Pre-incentive fee net investment income means interest income, dividend income and any other income (including any other fees such as commitment, origination, structuring, diligence and consulting fees or other fees that the Company receives from portfolio companies but excluding fees for providing managerial assistance) accrued during the calendar quarter, minus operating expenses for the quarter (including the base management fee), any expenses payable under the administration agreement (the “Administration Agreement”) between the Company and Monroe Capital Management Advisors, LLC (“MC Management”) and any interest expense and dividends paid on any outstanding preferred stock, but excluding the incentive fee. Pre-incentive fee net investment income will include, in the case of investments with a deferred interest feature such as market discount, debt instruments with PIK interest, preferred stock with PIK dividends and zero-coupon securities, accrued income that the Company has not yet received in cash. MC Advisors is not under any obligation to reimburse the Company for any part of the incentive fee it receives that was based on accrued interest that the Company never actually receives.
4748
Pre-incentive fee net investment income does not include any realized capital gains or losses or unrealized capital gains or losses. If any distributions from portfolio companies are characterized as a return of capital, such returns of capital would affect the capital gains incentive fee to the extent a gain or loss is realized. Because of the structure of the incentive fee, it is possible that the Company may pay an incentive fee in a quarter where it incurs a loss. For example, if the Company receives pre-incentive fee net investment income in excess of the hurdle rate (as defined below) for a quarter, the Company will pay the applicable incentive fee even if it has incurred a loss in that quarter due to realized and unrealized capital losses.
Pre-incentive fee net investment income, expressed as a rate of return on the value of the Company’s net assets (defined as total assets less indebtedness and before taking into account any incentive fees payable during the period) at the end of the immediately preceding calendar quarter, is compared to a fixed “hurdle rate” of 1.50% per quarter (6% annually).
As of and beginning with the Effective Date, prior to an Exchange Listing, the Company shall pay MC Advisors an incentive fee with respect to its pre-incentive fee net investment income in each calendar quarter as follows:
| ● | no incentive fee in any calendar quarter in which the pre-incentive fee net investment income does not exceed the hurdle rate of 1.50% (6% annually); |
| ● | 100% of the Company’s pre-incentive fee net investment income with respect to that portion of such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is less than 1.7143% (reduced from 1.76% pursuant to the fee waiver letter effective April 1, 2022) in any calendar quarter prior to an Exchange Listing or 1.88% in any calendar quarter following an Exchange Listing. This portion of the Company’s pre-incentive fee net investment income is referred to as the “catch-up” provision; and |
| ● | prior to an Exchange Listing, 12.5% of the amount of the Company’s pre-incentive fee net investment income (a reduction from 15.0% of the amount of the Company’s pre-incentive fee net income), if any, that exceeds 1.7143% (reduced from 1.76% pursuant to the fee waiver letter effective April 1, 2022) in any calendar quarter, and following an Exchange Listing, 20% of the amount of the Company’s pre-incentive fee net investment income, if any, that exceeds 1.88% in any calendar quarter. |
These calculations are appropriately prorated for any period of less than three months and adjusted for any share issuances or repurchases during the current quarter.
The second part of the incentive fee is a capital gains incentive fee that is determined and payable in arrears as of the end of each fiscal year (or upon termination of the Investment Advisory Agreement, as of the termination date), and equals 12.5% (reduced from 15.0% effective January 1, 2022 pursuant to the fee waiver letter) of the Company’s realized capital gains as of the end of the fiscal year. In determining the capital gains incentive fee payable to MC Advisors, the Company calculates the cumulative aggregate realized capital gains and cumulative aggregate realized capital losses since the Company’s inception, and the aggregate unrealized capital depreciation as of the date of the calculation, as applicable, with respect to each of the investments in the Company’s portfolio. For this purpose, cumulative aggregate realized capital gains, if any, equals the sum of the differences between the net sales price of each investment, when sold, and the amortized cost of such investment. Cumulative aggregate realized capital losses equals the sum of the amounts by which the net sales price of each investment, when sold, is less than the amortized cost of such investment since the Company’s inception. Aggregate unrealized capital depreciation equals the sum of the difference, if negative, between the valuation of each investment as of the applicable calculation date and the amortized cost of such investment. At the end of the applicable year, the amount of capital gains that will serve as the basis for the calculation of the capital gains incentive fee equals the cumulative aggregate realized capital gains less cumulative aggregate realized capital losses, less aggregate unrealized capital depreciation, with respect to the Company’s portfolio of investments. If this number is positive at the end of such year, then the capital gains incentive fee for such year equals 12.5% of such amount, less the aggregate amount of any capital gains incentive fees paid in respect of the Company’s portfolio in all prior years.
While the Investment Advisory Agreement with MC Advisors neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice Aid for investment companies, the Company includes unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to MC Advisors if the Company’s entire portfolio was liquidated at its fair value as of the balance sheet date even though MC Advisors is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.
4849
The composition of the Company’s incentive fees was as follows:
| | | | | | | | | | | | | | | | | | |
|
| Three months ended March 31, |
| Three months ended June 30, |
| Six months ended June 30, | ||||||||||||
| | 2023 |
| 2022 | | 2023 |
| 2022 | | 2023 | | 2022 | ||||||
Part one incentive fees (1) | | $ | 3,439 | | $ | 1,461 | | $ | 3,804 | | $ | 1,306 | | $ | 7,244 | | $ | 2,767 |
Part two incentive fees (2) | |
| 712 | |
| 362 | |
| (724) | |
| (923) | |
| (13) | |
| (561) |
Total incentive fees (3) | | $ | 4,151 | | $ | 1,823 | ||||||||||||
Incentive fees, excluding the impact of incentive fee waivers | |
| 3,080 | |
| 383 | |
| 7,231 | |
| 2,206 | ||||||
Incentive fee waivers (3) | |
| — | |
| (1,306) | |
| — | |
| (1,306) | ||||||
Total incentive fees, net of incentive fee waivers | | $ | 3,080 | | $ | (923) | | $ | 7,231 | | $ | 900 | ||||||
| (1) | Based on pre-incentive fee net investment income. |
| (2) | Based upon net realized and unrealized gains and losses, or capital gains. The Company accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. If, on a cumulative basis, the sum of net realized gain (loss) plus net unrealized gain (loss) decreases during a period, the Company will reverse any excess capital gains incentive fee previously accrued such that the amount of capital gains incentive fee accrued is no more than 12.5% of the sum of net realized gain (loss) plus net unrealized gain (loss). |
| (3) |
The Company has entered into the Administration Agreement with MC Management, under which the Company reimburses MC Management, subject to the review and approval of the Board, for its allocable portion of overhead and other expenses, including the costs of furnishing the Company with office facilities and equipment and providing clerical, bookkeeping, record-keeping and other administrative services at such facilities, and the Company’s allocable portion of the cost of the chief financial officer and chief compliance officer and their respective staffs. To the extent that MC Management outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis, without incremental profit, to MC Management. For the three and six months ended March 31,June 30, 2023, and 2022, the Company incurred $1,185$1,462 and $558$2,647 respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $370$392 and $203,$762, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. For the three and six months ended June 30, 2022, the Company incurred $1,052 and $1,610 respectively, in administrative expenses (included within Professional fees, Administrative service fees and General and administrative expenses on the consolidated statements of operations) under the Administration Agreement, of which $208 and $411, respectively, was related to MC Management overhead and salary allocation and paid directly to MC Management. As of March 31,June 30, 2023 and December 31, 2022, $370$762 and $369, respectively, of expenses were due to MC Management under this agreement and are included in accounts payable and accrued expenses on the consolidated statements of assets and liabilities.
The Company has entered into a license agreement with Monroe Capital LLC under which Monroe Capital LLC has agreed to grant the Company a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in its business. Under this agreement, the Company has the right to use the “Monroe Capital” name at no cost, subject to certain conditions, for so long as MC Advisors or one of its affiliates remains its investment adviser. Other than with respect to this limited license, the Company has no legal right to the “Monroe Capital” name or logo.
As of March 31,both June 30, 2023 and December 31, 2022, the Company had accounts payable to members of the Board of $23 and zero, respectively, representing accrued and unpaid fees for their services.
Note 7. Borrowings
In accordance with the 1940 Act, the Company is permitted to borrow amounts such that its asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. As of March 31,June 30, 2023 and December 31, 2022, the Company’s asset coverage ratio based on aggregate borrowings outstanding was 221%207% and 199%, respectively.
4950
The Company’s outstanding debt as of March 31,June 30, 2023 and December 31, 2022 was as follows:
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of March 31, 2023 | | As of December 31, 2022 |
| | As of June 30, 2023 | | As of December 31, 2022 |
| ||||||||||||||||||||||||||||
|
| Total |
| | |
| | |
| Total |
| | |
| | |
|
| Total |
| | |
| | |
| Total |
| | |
| | |
| ||||
| | Aggregate | | | | | | | | Aggregate | | | | | | |
| | Aggregate | | | | | | | | Aggregate | | | | | | |
| ||||
| | Principal | | | | | | | | Principal | | | | | | |
| | Principal | | | | | | | | Principal | | | | | | |
| ||||
| | Amount | | Principal | | | | | Amount | | Principal | | | |
| | Amount | | Principal | | | | | Amount | | Principal | | | |
| ||||||||
| | Committed/ | | Amount | | Carrying | | Committed/ | | Amount | | Carrying |
| | Committed/ | | Amount | | Carrying | | Committed/ | | Amount | | Carrying |
| ||||||||||||
| | Outstanding (1) | | Outstanding | | Value | | Outstanding (1) | | Outstanding | | Value |
| | Outstanding (1) | | Outstanding | | Value | | Outstanding (1) | | Outstanding | | Value |
| ||||||||||||
Credit Facility | | $ | 450,000 | | $ | 253,500 | | $ | 251,413 | (2) | $ | 450,000 | | $ | 357,400 | | $ | 354,904 | (2) | | $ | 450,000 | | $ | 346,500 | | $ | 344,800 | (2) | $ | 450,000 | | $ | 357,400 | | $ | 354,904 | (2) |
Term Loan | |
| 151,886 | |
| 151,886 | |
| 150,445 | (3) |
| 100,000 | |
| 100,000 | |
| 98,953 | (3) | |
| 149,960 | |
| 149,960 | |
| 148,650 | (3) |
| 100,000 | |
| 100,000 | |
| 98,953 | (3) |
2022 ABS | |
| 306,000 | (4) |
| 306,000 | |
| 297,825 | (5) |
| 306,000 | (4) |
| 306,000 | |
| 297,629 | (5) | |
| 306,000 | (4) |
| 306,000 | |
| 298,813 | (5) |
| 306,000 | (4) |
| 306,000 | |
| 297,629 | (5) |
Short-Term Borrowings | | | 83,088 | | | 83,088 | | | 83,088 | (6) | | — | | | — | | | — | | |||||||||||||||||||
Total | | $ | 907,886 | | $ | 711,386 | | $ | 699,683 | | $ | 856,000 | | $ | 763,400 | | $ | 751,486 | | | $ | 989,048 | | $ | 885,548 | | $ | 875,351 | | $ | 856,000 | | $ | 763,400 | | $ | 751,486 | |
(1) | Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. |
(2) | Represents the aggregate principal amount outstanding of the Credit Facility (as defined below), less unamortized debt issuance costs. As of |
(3) | Represents the aggregate principal amount outstanding of the Term Loan (as defined below), less unamortized debt issuance costs. As of |
(4) | As of both |
(5) | Represents the aggregate principal amount outstanding of the 2022 ABS (as defined below), less unamortized debt issuance costs. As of |
(6) | Represents the aggregate principal amount outstanding of the Short-Term Borrowings (as defined below). As of June 30, 2023, the total unamortized debt issuance costs were zero. |
Revolving Credit Facility: The Company has a $450,000 Credit Facility with KeyBank National Association through the Company’s wholly-owned subsidiary, the SPV. The Company’s ability to borrow under the Credit Facility is subject to certain financial and restrictive covenants as well as availability under the borrowing base, which permits the Company to borrow up to 72% of the principal balance of its portfolio company investments depending on the type of investment, subject to a maximum advance rate on the portfolio of 67%. Under the terms of the Credit Facility, the SPV is permitted to reinvest available cash and make new borrowings under the Credit Facility through July 16, 2024. The maturity date of the Credit Facility is July 16, 2026. Distributions from the SPV to the Company are limited by the terms of the Credit Facility, which generally allows for the distribution of net interest income pursuant to a waterfall quarterly during the reinvestment period. As of March 31,June 30, 2023 and December 31, 2022, the fair value of investments of the Company that were held in the SPV as collateral for the Credit Facility was $671,146$759,719 and $691,225, respectively, and these investments are identified on the accompanying consolidated schedules of investments. As of March 31,June 30, 2023 and December 31, 2022, the Company had outstanding borrowings under the Credit Facility of $253,500$346,500 and $357,400, respectively.
On May 26, 2023, the Credit Facility was amended to, among other things, replace LIBOR with SOFR as the base rate. During the reinvestment period, borrowings under the Credit Facility bear interest at an annual rate of LIBORSOFR (one or three month, at the SPV’s option and subject to a LIBORSOFR minimum of 0.50%) plus a margin ranging from 2.75% to a maximum of 3.00%, depending on the level of utilization of the facility and the number of obligors of eligible loans pledged as collateral in the SPV. After the reinvestment period, borrowings under the Credit Facility bear interest at an annual rate of LIBORSOFR plus 3.25%. In addition to the stated interest rate on borrowings, the SPV is required to pay an unused commitment fee of (i) 0.50% per annum on any unused portion of the Credit Facility when the outstanding borrowings are less than or equal to 60% of the facility amount and (ii) 0.35% per annum on any unused portion of the Credit Facility when the outstanding borrowings are greater than 60% of the facility. As of March 31,June 30, 2023 and December 31, 2022, the outstanding borrowings were accruing at a weighted average interest rate of 7.4%8.0% and 6.9%, respectively.
During the three months ended March 31, 2023 and 2022, the Company incurred financing costs of $11 and $447, respectively, in conjunction with the Credit Facility, which have been capitalized within unamortized deferred financing costs and are amortized into interest and other debt financing expenses over the life of the loan.
5051
Term Loan: On December 20, 2022, the Company entered into the Term Loan with KeyBank National Association, as lead arranger and administrative agent, through a special purpose wholly-owned subsidiary, SPV II. The Term Loan initially allowed SPV II to borrow an aggregate principal amount of $100,000, and included an accordion feature which allows the Company, under certain circumstances, to increase the total size of the facility upon request to the administrative agent and with consent of one or more increasing or additional lenders. On February 3, 2023, the Company increased the facility amount pursuant to the accordion feature of the Term Loan from $100,000 of aggregate commitments to $155,000 of aggregate commitments and the Company borrowed up to the new aggregate commitments under the Term Loan. As of March 31,June 30, 2023 and December 31, 2022, the Company had outstanding borrowings under the Term Loan of $151,886$149,960 and $100,000, respectively. As of March 31,June 30, 2023 and December 31, 2022 the fair value of the Company’s investments held in SPV II as collateral for the Term Loan was $217,697$212,401 and $141,418, respectively, and these investments are identified on the accompanying consolidated schedules of investments.
Borrowings under the Term Loan bear interest at Adjusted Term SOFR (subject to a SOFR minimum of 0.50%) plus an applicable margin rate of 2.40% per annum during the initial period, December 20, 2022 through December 20, 2025, and 3.40% per annum during the amortization period, December 21, 2025 through December 20, 2026. The Term Loan matures on December 20, 2026, unless sooner terminated in accordance with its terms. As of March 31,June 30, 2023 and December 31, 2022, the outstanding borrowings were accruing at a weighted average interest rate of 7.1%7.6% and 6.7%, respectively.
During the three months ended March 31, 2023, the Company incurred financing costs of $508 in conjunction with the Term Loan, which have been capitalized within unamortized deferred financing costs and are amortized into interest and other debt financing expenses over the life of the loan.
Under the terms of the Term Loan, pursuant to a monthly waterfall and subject to the satisfaction of certain coverage tests and portfolio quality tests, SPV II is permitted to reinvest 25% of principal proceeds during the initial period, with the remaining 75% applied to prepay the Term Loan. During the amortization period, pursuant to a monthly waterfall, 100% of principal proceeds must be applied to prepay the Term Loan. The Term Loan contains representations and warranties and affirmative and negative covenants customary for secured financings of this type. The Term Loan also contains customary events of default (subject to certain grace periods, as applicable), including but not limited to the nonpayment of principal, interest or fees, breach of covenants, voluntary or involuntary bankruptcy proceedings and change of control of the borrower.
Asset-Backed Securitization: On April 7, 2022, the Company completed a $425,000 asset-backed securitization (the “2022 ABS”). The notes offered in the 2022 ABS were issued by the 2022 Issuer, a wholly-owned subsidiary of the Company, and are secured by a diversified portfolio of senior secured loans. The transaction was executed through a private placement of $261,375 of Class A Senior Secured Notes, which bear interest at 4.05% (the “Class A Notes”), $44,625 of Class B Senior Secured Notes, which bear interest at 5.15% (the “Class B Notes”) and $36,125 of Class C Senior Secured Notes, which bear interest at 7.75% (the “Class C Notes” and collectively with the Class A Notes and the Class B Notes, the “Secured 2022 Notes”), and $82,875 of Subordinated Notes, which do not bear interest (the “Subordinated 2022 Notes” and, together with the Secured 2022 Notes, the “2022 Notes”). The Company retained all of the Class C Notes and the Subordinated 2022 Notes. The Class A Notes and the Class B Notes are included as debt on the consolidated statements of assets and liabilities. As of both March 31,June 30, 2023 and December 31, 2022, the Class C and Subordinated Notes were eliminated in consolidation.
Through April 22, 2024, the 2022 Issuer is permitted to use all principal collections received on the underlying collateral to purchase new collateral under the direction of MC Advisors, in its capacity as collateral manager of the 2022 Issuer, in accordance with the Company’s investment strategy and subject to customary conditions set forth in the documents governing the 2022 ABS, allowing the Company to maintain the initial leverage in the 2022 ABS. The 2022 Notes are due on April 30, 2032.
As of March 31,June 30, 2023 and December 31, 2022, the fair value of investments of the Company that were held in the 2022 Issuer as collateral was $421,236$417,225 and $410,179, respectively, and these investments are identified on the consolidated schedule of investments.
Distributions from the 2022 Issuer to the Company are limited by the terms of the indenture governing the 2022 ABS, which generally allows for the payment of interest on the Secured 2022 Notes and the distribution of remaining net interest income to the holders of the Subordinated Notes pursuant to a waterfall quarterly during the reinvestment period.
Short-Term Borrowings: To finance the purchase of certain investments, the Company may enter into participation agreements for par/near par trades with a third-party counterparty, whereby the Company simultaneously agrees to sell an investment and re-purchase the same investment back at a premium within a specified period of time, generally not to exceed 60-days from the date it was sold (each such transaction a “Short-Term Borrowing”). The amount, interest rate and terms of these Short-Term Borrowings are negotiated on a transaction-by transaction basis. Each transaction is secured by an interest in an underlying asset which is participated or assigned to the counterparty for the duration of the transaction.
5152
The Company accounts for its Short-Term Borrowings as a type of secured borrowing under ASC Topic 860 – Transfers and Servicing and continues to present the participated investment as an asset and the obligation to repurchase the investment as a liability within debt on the consolidated statements of assets and liabilities. Interest income earned on investments participated under the Short-Term Borrowings and financing charges associated with the Short-Term Borrowings are included within interest income and interest and other debt financing expenses, respectively, on the consolidated statements of operations. Accrued interest receivable on investments and accrued financing charges on the Short-Term Borrowings are included within interest and dividend receivable and interest payable, respectively, on the consolidated statements of assets and liabilities.
As of June 30, 2023, the Company had $83,088 of Short-Term Borrowings with Macquarie Bank Limited (“Macquarie”). The carrying value of the participated investments under Short-Term Borrowings was $83,088 as of June 30, 2023. As of June 30, 2023, the Short-Term Borrowings were accruing at a weighted average interest rate of 8.4%.
Components of Interest Expense: The components of the Company’s interest and other debt financing expenses and average debt outstanding and average stated interest rate (i.e., the rate in effect plus spread) were as follows:
| | | | | | | | | | | | | | |
| | Three months ended March 31, |
|
| Three months ended June 30, |
| ||||||||
|
| 2023 |
| 2022 |
| | 2023 | | 2022 |
| ||||
Interest expense - Credit Facility | | $ | 5,798 | | $ | 2,895 | | | $ | 5,412 | | $ | 1,090 | |
Interest expense - Term Loan | |
| 2,340 | |
| — | | |
| 2,831 | |
| — | |
Interest expense - 2022 ABS | |
| 3,221 | |
| — | | |
| 3,221 | |
| 3,006 | |
Interest expense - Short-Term Borrowings | | | 79 | | | — | | |||||||
Amortization of deferred financing costs | |
| 730 | |
| 385 | | |
| 1,523 | |
| 606 | |
Total interest and other debt financing expenses | | $ | 12,089 | | $ | 3,280 | | | $ | 13,066 | | $ | 4,702 | |
Average debt outstanding | | $ | 750,495 | | $ | 339,678 | | | $ | 724,664 | | $ | 355,976 | |
Average stated interest rate | |
| 6.1 | % |
| 3.4 | % | |
| 6.4 | % |
| 4.6 | % |
| | | | | | | |
| | Six months ended June 30, |
| ||||
|
| 2023 |
| 2022 |
| ||
Interest expense - Credit Facility | | $ | 11,210 | | $ | 3,985 | |
Interest expense - Term Loan | |
| 5,171 | |
| — | |
Interest expense - 2022 ABS | |
| 6,442 | |
| 3,006 | |
Interest expense - Short-Term Borrowings | | | 79 | | | — | |
Amortization of deferred financing costs | |
| 2,253 | |
| 991 | |
Total interest and other debt financing expenses | | $ | 25,155 | | $ | 7,982 | |
Average debt outstanding | | $ | 737,581 | | $ | 347,871 | |
Average stated interest rate | |
| 6.3 | % |
| 4.0 | % |
Note 8. Derivative Instruments
The Company enters into foreign currency forward contracts from time to time to help mitigate the impact that an adverse change in foreign exchange rates would have on future principal and interest cash flows from the Company’s investments denominated in foreign currencies. As of March 31,June 30, 2023 and December 31, 2022, the counterparty to these foreign currency forward contracts was Bannockburn Global Forex, LLC. Net unrealized gain or loss on foreign currency forward contracts are included in net change in unrealized gain (loss) on foreign currency forward contracts and net realized gain or loss on forward currency forward contracts are included in net realized gain (loss) on foreign currency forward contracts on the accompanying consolidated statements of operations.
5253
Certain information related to the Company’s foreign currency forward contracts is presented below as of March 31,June 30, 2023 and December 31, 2022.
| | | | | | | | | | | | | | | | | | | | | | | | | | |
| | As of March 31, 2023 | | As of June 30, 2023 | ||||||||||||||||||||||
| | | | | | | Gross | | Gross | | | | | | | | | Gross | | Gross | | | ||||
| | | | | | | Amount of | | Amount of |
| | | | | | | | Amount of | | Amount of |
| | ||||
|
| Notional Amount |
| Settlement |
| Unrealized |
| Unrealized |
| |
| Notional Amount |
| Settlement |
| Unrealized |
| Unrealized |
| | ||||||
Description | | to be Sold | | Date | | Gain | | Loss |
| Balance Sheet location of Net Amounts | | to be Sold | | Date | | Gain | | Loss |
| Balance Sheet location of Net Amounts | ||||||
Foreign currency forward contract | | CAD | 426 | | 4/5/2023 | | $ | — | | $ | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 428 | | 7/5/2023 | | $ | — | | $ | (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 128 | | 4/19/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 124 | | 7/19/2023 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 109 | | 5/17/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 112 | | 8/17/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 121 | | 6/19/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 120 | | 9/19/2023 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 428 | | 7/5/2023 | |
| — | |
| (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 431 | | 10/3/2023 | |
| — | |
| (8) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 124 | | 7/19/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 116 | | 10/19/2023 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 112 | | 8/17/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 103 | | 11/17/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 120 | | 9/19/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 106 | | 12/19/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 431 | | 10/3/2023 | |
| — | |
| (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 429 | | 1/4/2024 | |
| — | |
| (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 116 | | 10/19/2023 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 143 | | 1/17/2024 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 103 | | 11/17/2023 | |
| — | |
| (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 112 | | 2/19/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 106 | | 12/19/2023 | |
| — | |
| (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 105 | | 3/19/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 429 | | 1/4/2024 | |
| — | |
| (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 424 | | 4/3/2024 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 143 | | 1/17/2024 | |
| — | |
| (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 143 | | 4/17/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 112 | | 2/19/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 108 | | 5/17/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 105 | | 3/19/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 118 | | 6/19/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 424 | | 4/3/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 417 | | 7/3/2024 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 143 | | 4/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 131 | | 7/17/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 108 | | 5/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 111 | | 8/19/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 118 | | 6/19/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 114 | | 9/18/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 417 | | 7/3/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 423 | | 10/2/2024 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 131 | | 7/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 134 | | 10/17/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 111 | | 8/19/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 110 | | 11/19/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 114 | | 9/18/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 110 | | 12/18/2024 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 423 | | 10/2/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 409 | | 1/2/2025 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 134 | | 10/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 133 | | 1/17/2025 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 110 | | 11/19/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 115 | | 2/20/2025 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 110 | | 12/18/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 91 | | 3/19/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 409 | | 1/2/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 14,653 | | 4/2/2025 | | | — | | | (255) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 133 | | 1/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 128 | | 4/17/2025 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 115 | | 2/20/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 101 | | 5/19/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 91 | | 3/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 107 | | 6/18/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 14,653 | | 4/2/2025 | | | — | | | (30) | | Unrealized gain on foreign currency forward contracts | | CAD | 128 | | 7/17/2025 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 128 | | 4/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 103 | | 8/19/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 101 | | 5/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 103 | | 9/17/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 107 | | 6/18/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 130 | | 10/17/2025 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 128 | | 7/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | CAD | 109 | | 11/19/2025 | | | — | | | (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 103 | | 8/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | CAD | 12,243 | | 12/18/2025 | | | — | | | (372) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 103 | | 9/17/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts | | AUD | 403 | | 7/18/2023 | | | — | | | (2) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 130 | | 10/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | AUD | 546 | | 8/16/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 109 | | 11/19/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts | | AUD | 549 | | 9/18/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 12,243 | | 12/18/2025 | | | — | | | (184) | | Unrealized gain on foreign currency forward contracts | | AUD | 530 | | 10/18/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 160 | | 4/20/2023 | | | 17 | | | — | | Unrealized gain on foreign currency forward contracts | | AUD | 546 | | 11/16/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 121 | | 5/16/2023 | | | 12 | | | — | | Unrealized gain on foreign currency forward contracts | | AUD | 523 | | 12/18/2023 | |
| — | |
| (3) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 156 | | 6/19/2023 | | | 16 | | | — | | Unrealized gain on foreign currency forward contracts | | AUD | 536 | | 1/17/2024 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 138 | | 7/18/2023 | | | 14 | | | — | | Unrealized gain on foreign currency forward contracts | | AUD | 533 | | 2/16/2024 | |
| — | |
| (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 146 | | 8/16/2023 | |
| 15 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 492 | | 3/18/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 146 | | 9/18/2023 | |
| 15 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 521 | | 4/17/2024 | | | — | | | (4) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 148 | | 10/18/2023 | |
| 15 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 499 | | 5/16/2024 | | | — | | | (5) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 140 | | 11/16/2023 | |
| 14 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 506 | | 6/19/2024 | | | — | | | (5) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 142 | | 12/18/2023 | |
| 14 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 473 | | 7/16/2024 | | | — | | | (5) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 150 | | 1/17/2024 | |
| 15 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 486 | | 8/16/2024 | | | — | | | (6) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 143 | | 2/16/2024 | |
| 14 | |
| — | | Unrealized gain on foreign currency forward contracts | | AUD | 486 | | 9/17/2024 | | | — | | | (6) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 15,410 | | 3/18/2024 | | | 1,526 | | | — | | Unrealized gain on foreign currency forward contracts | | AUD | 470 | | 10/17/2024 | | | — | | | (6) | | Unrealized loss on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 485 | | 11/18/2024 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 470 | | 12/17/2024 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 465 | | 1/17/2025 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 461 | | 2/18/2025 | | | — | | | (8) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 416 | | 3/18/2025 | | | — | | | (7) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 461 | | 4/16/2025 | | | — | | | (9) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 446 | | 5/16/2025 | | | — | | | (9) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
Foreign currency forward contract | | AUD | 47,765 | | 6/18/2025 | | | — | | | (965) | | Unrealized loss on foreign currency forward contracts | |||||||||||||
| | | | | | | $ | 1,687 | | $ | (278) | | | | | | | | | $ | — | | $ | (1,863) | | |
5354
| | | | | | | | | | | | | |
|
| As of December 31, 2022 | |||||||||||
| | | | | | | Gross | | Gross | | | ||
| | | | | | Amount of | | Amount of | | | |||
| | Notional Amount | | Settlement | | Unrealized | | Unrealized | | | |||
Description | | to be Sold |
| Date |
| Gain |
| Loss |
| Balance Sheet location of Net Amounts | |||
Foreign currency forward contract | | CAD | 248 | | 1/5/2023 | | $ | — | | $ | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 127 | | 1/19/2023 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 113 | | 2/17/2023 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 109 |
| 3/17/2023 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 426 |
| 4/5/2023 |
| | — |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 128 |
| 4/19/2023 |
| | — |
| | (2) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 109 |
| 5/17/2023 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 121 |
| 6/19/2023 |
| | — |
| | (2) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 428 |
| 7/5/2023 |
| | — |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 124 | | 7/19/2023 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 112 | | 8/17/2023 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 120 | | 9/19/2023 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 431 | | 10/3/2023 | | | — | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 116 |
| 10/19/2023 |
| | — |
| | (2) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 103 |
| 11/17/2023 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 106 |
| 12/19/2023 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 429 |
| 1/4/2024 |
| | — |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 143 |
| 1/17/2024 |
| | — |
| | (2) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 112 |
| 2/19/2024 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 105 |
| 3/19/2024 |
| | — |
| | (1) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 424 |
| 4/3/2024 |
| | — |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| CAD | 143 |
| 4/17/2024 |
| | — |
| | (2) |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 108 | | 5/17/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 118 | | 6/19/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 417 | | 7/3/2024 | | | — | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 131 | | 7/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 111 | | 8/19/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 114 | | 9/18/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 423 | | 10/2/2024 | | | — | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 134 | | 10/17/2024 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 110 | | 11/19/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 110 | | 12/18/2024 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 409 | | 1/2/2025 | | | — | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 133 | | 1/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 115 | | 2/20/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 91 | | 3/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 14,653 | | 4/2/2025 | | | — | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 128 | | 4/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 101 | | 5/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 107 | | 6/18/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 128 | | 7/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 103 | | 8/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 103 | | 9/17/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 130 | | 10/17/2025 | | | — | | | (2) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 109 | | 11/19/2025 | | | — | | | (1) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | CAD | 12,243 | | 12/18/2025 | | | — | | | (159) | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 153 | | 1/18/2023 | | | 14 | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 140 | | 2/16/2023 | | | 12 | | | — | | Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 132 |
| 3/16/2023 |
| | 12 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 160 |
| 4/20/2023 |
| | 14 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 121 |
| 5/16/2023 |
| | 11 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 156 |
| 6/19/2023 |
| | 14 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 138 |
| 7/18/2023 |
| | 12 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 146 |
| 8/16/2023 |
| | 13 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 146 |
| 9/18/2023 |
| | 13 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 148 |
| 10/18/2023 |
| | 13 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 140 |
| 11/16/2023 |
| | 12 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 142 |
| 12/18/2023 |
| | 12 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 150 |
| 1/17/2024 |
| | 13 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract |
| AUD | 143 |
| 2/16/2024 |
| | 12 |
| | — |
| Unrealized gain on foreign currency forward contracts |
Foreign currency forward contract | | AUD | 15,410 | | 3/18/2024 | | | 1,329 | | | — | | Unrealized gain on foreign currency forward contracts |
| | | | | | | $ | 1,506 | | $ | (210) | | |
5455
For the three and six months ended March 31,June 30, 2023, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of ($3,272) and ($3,159), respectively. For the three and six months ended June 30, 2023, the Company recognized net realized gain (loss) on foreign currency forward contracts of $1,708 and $1,741, respectively.
For the three and six months ended June 30, 2022, the Company recognized net change in unrealized gain (loss) on foreign currency forward contracts of $113$1,335 and ($533),$802, respectively. For the three and six months ended March 31, 2023 andJune 30, 2022, the Company recognized net realized gain (loss) on foreign currency forward contracts of $33$27 and $18,$45, respectively.
Note 9. Distributions
The Company’s distributions to common stockholders are recorded on the applicable record date. The following table summarizes the distributions declared during the threesix months ended March 31,June 30, 2023 and 2022, respectively.
| | | | | | | | | | | | | ||||||||||||
|
| | |
| | |
| | |
| | | | | | | | | | | | | | |
| | | | | | | | Amount | | | | | | | | | | | Amount | | | | ||
Date | | Record | | Payment | | Per | | Distribution | | Record | | Payment | | Dividend | | Per | | Distribution | ||||||
Declared | | Date | | Date (1) | | Share | | Declared |
| Date |
| Date (1) |
| Type |
| Share |
| Declared | ||||||
Three months ended March 31, 2023: | ||||||||||||||||||||||||
Six months ended June 30, 2023: | | | | | | | | | | | | | ||||||||||||
January 13, 2023 | | | January 17, 2023 | | | March 31, 2023 | | $ | 0.09 | | $ | 6,217 | | January 17, 2023 | | March 31, 2023 | | Regular | | $ | 0.09 | | $ | 6,217 |
January 13, 2023 | | | February 15, 2023 | | | March 31, 2023 | | | 0.08 | | | 6,208 | | February 15, 2023 | | March 31, 2023 | | Regular | | | 0.08 | | | 6,208 |
January 13, 2023 | | | March 15, 2023 | | | March 31, 2023 | | | 0.08 | | | 6,208 | | March 15, 2023 | | March 31, 2023 | | Regular | | | 0.08 | | | 6,208 |
April 6, 2023 | | April 17, 2023 | | June 30, 2023 | | Regular | | | 0.09 | | | 7,539 | ||||||||||||
April 6, 2023 | | April 17, 2023 | | June 30, 2023 | | Supplemental | | | 0.01 | | | 838 | ||||||||||||
April 6, 2023 | | May 15, 2023 | | June 30, 2023 | | Regular | | | 0.09 | | | 7,539 | ||||||||||||
April 6, 2023 | | June 15, 2023 | | June 30, 2023 | | Regular | | | 0.09 | | | 8,287 | ||||||||||||
Total distributions declared | | | | | | |
| $ | 0.25 | | $ | 18,633 | | | | | | |
| $ | 0.53 | | $ | 42,836 |
| | | | | | | | | | | | | | | | | | | | | | | | |
Three months ended March 31, 2022: | ||||||||||||||||||||||||
Six months ended June 30, 2022: | | | | | | | | | | | | | ||||||||||||
January 4, 2022 | | | January 4, 2022 | | | March 31, 2022 | | $ | 0.07 | | $ | 2,439 | | January 4, 2022 | | March 31, 2022 | | Regular | | $ | 0.07 | | $ | 2,439 |
January 4, 2022 | | | February 1, 2022 | | | March 31, 2022 | | | 0.07 | | | 2,439 | | February 1, 2022 | | March 31, 2022 | | Regular | | | 0.07 | | | 2,439 |
January 4, 2022 | | | March 1, 2022 | | | March 31, 2022 | |
| 0.06 | |
| 2,435 | | March 1, 2022 | | March 31, 2022 | | Regular | |
| 0.06 | |
| 2,435 |
April 1, 2022 | | April 18, 2022 | | June 30, 2022 | | Regular | | | 0.07 | | | 3,222 | ||||||||||||
April 1, 2022 | | May 16, 2022 | | June 30, 2022 | | Regular | | | 0.07 | | | 3,223 | ||||||||||||
April 1, 2022 | | June 17, 2022 | | June 30, 2022 | | Regular | | | 0.06 | | | 3,730 | ||||||||||||
Total distributions declared | | | | | | | | $ | 0.20 | | $ | 7,313 | | | | | | | | $ | 0.40 | | $ | 17,488 |
| (1) | The portion of the Company’s distribution that is to be reinvested pursuant to the DRIP is issued to the Company’s stockholders on the payment date. |
The following tables summarize the Company’s distributions reinvested during the threesix months ended March 31,June 30, 2023 and 2022, respectively:
| | | | | | | | | | | | | | | | |
|
| | |
| DRIP | | DRIP |
| | |
| DRIP | | DRIP | ||
| | NAV | | Shares | | Shares | | NAV | | Shares | | Shares | ||||
Payment Date | | Per Share | | Issued | | Value | | Per Share | | Issued | | Value | ||||
Three months ended March 31, 2023: |
| |
|
|
|
| |
| ||||||||
Six months ended June 30, 2023: |
| |
|
|
|
| |
| ||||||||
March 31, 2023 | | $ | 10.13 |
| 664,510 | | $ | 6,731 | | $ | 10.13 |
| 664,510 | | $ | 6,731 |
June 30, 2023 | | | 10.25 | | 916,989 | | | 9,400 | ||||||||
Total proceeds | |
| | | 664,510 | | $ | 6,731 | |
| | | 1,581,499 | | $ | 16,131 |
| | | | | | | | | | | | | | | | |
|
| | | | DRIP |
| DRIP |
| | | | DRIP |
| DRIP | ||
| | NAV | | Shares | | Shares | | NAV | | Shares | | Shares | ||||
Payment Date | | Per Share | | Issued | | Value | | Per Share | | Issued | | Value | ||||
Three months ended March 31, 2022: |
| |
| |
|
| |
| ||||||||
Six months ended June 30, 2022: |
| |
| |
|
| |
| ||||||||
March 31, 2022 | | $ | 10.10 | | 217,369 | | $ | 2,195 | | $ | 10.13 | | 217,369 | | $ | 2,195 |
June 30, 2022 | | | 10.16 | | 344,760 | | | 3,503 | ||||||||
Total proceeds | |
| | | 217,369 | | $ | 2,195 | |
| | | 562,129 | | $ | 5,698 |
Note 10. Stock Issuances and Share Repurchase Program
Stock Issuances
As of March 31, 2023, the total number of shares of all classes of capital stock that the Company has the authority to issue was 100,000,000 shares of common stock, par value $0.001 per share.
5556
Note 10. Stock Issuances and Share Repurchase Program
Stock Issuances
Effective as of June 15, 2023, the Company amended its charter to increase the number of shares of common stock the Company is authorized to issue from 100,000,000 to 300,000,000.
The following table summarizestables summarize the issuance of shares during the threesix months ended March 31,June 30, 2023 and 2022:
| | | | | | | | | | | | | | | | |
|
| Price Per |
| |
| | |
| Price Per |
| |
| | | ||
Date | | Share | | Shares Issued | | Proceeds | | Share | | Shares Issued | | Proceeds | ||||
Three months ended March 31, 2023: |
| | |
| |
| | | ||||||||
Six months ended June 30, 2023: |
| | |
| |
| | | ||||||||
March 16, 2023 | | $ | 10.13 |
| 9,474,500 | | $ | 95,977 | | $ | 10.13 |
| 9,474,500 | | $ | 95,977 |
May 16, 2023 | | | 10.25 | | 8,321,086 | | | 85,291 | ||||||||
Total | |
| | | 9,474,500 | | $ | 95,977 | |
| | | 17,795,586 | | $ | 181,268 |
| | | | | | | | | | | | | | | | |
|
| Price Per | | |
| | |
| Price Per | | |
| | | ||
Date | | Share |
| Shares Issued | | Proceeds | | Share |
| Shares Issued | | Proceeds | ||||
Three months ended March 31, 2022: | | | | | | | | | ||||||||
Six months ended June 30, 2022: | | | | | | | | | ||||||||
March 15, 2022 | | $ | 10.10 | | 12,173,590 | | $ | 122,953 | | $ | 10.10 | | 12,173,590 | | $ | 122,953 |
May 17, 2022 | | | 10.16 | | 8,022,706 | | | 81,511 | ||||||||
Total | |
| | | 12,173,590 | | $ | 122,953 | |
| | | 20,196,296 | | $ | 204,464 |
During the threesix months ended March 31,June 30, 2023 and 2022, the Company also issued 664,5101,581,499 and 217,369562,129 shares, with an aggregate value of $6,731$16,131 and $2,195,$5,698, respectively, under the DRIP as disclosed in Note 9.
Share Repurchase Program
During 2022, the Company commenced a quarterly share repurchase program in which the Company intends to repurchase, in each quarter, up to 5% of the shares of common stock outstanding as of the close of the previous calendar quarter (the “Share Repurchase Program”), subject to the discretion of the Board. Any such repurchases are subject to approval by the Board, in its discretion, and the availability of cash to fund such repurchases. The Board may amend, suspend or terminate the share repurchase program if it deems such action to be in the Company’s best interest and the best interest of the Company’s stockholders. As a result, share repurchases may not be available each quarter. The Company intends to conduct such repurchase offers in accordance with the requirements of Rule 13e-4 under the Securities Exchange Act of 1934 and the 1940 Act and subject to compliance with applicable covenants and restrictions under the Company’s financing arrangements. All shares repurchased by the Company pursuant to the terms of each tender offer will be redeemed and thereafter will be authorized and unissued shares.
The following table summarizestables summarize the total shares repurchased that were validly tendered under the Share Repurchase Program and not withdrawn during the threesix months ended March 31, 2023:June 30, 2023 and 2022:
| | | | | | | | | | | | | | | | |
|
| Price | | Shares |
| | |
| Price | | Shares |
| | | ||
Date | | Per Share |
| Repurchased | | Total Cost | | Per Share |
| Repurchased | | Total Cost | ||||
Three months ended March 31, 2023: |
| |
| |
|
| |
| ||||||||
Six months ended June 30, 2023: |
| |
| |
|
| |
| ||||||||
March 30, 2023 | | $ | 10.13 | | 906,750 | | $ | 9,185 | | $ | 10.13 | | 906,750 | | $ | 9,185 |
June 29, 2023 | | | 10.25 | | 664,987 | | | 6,816 | ||||||||
Total | |
| | | 906,750 | | $ | 9,185 | |
| | | 1,571,737 | | $ | 16,001 |
There were no shares repurchased during the three months ended March 31, 2022.57
| | | | | | | | |
|
| Price |
| Shares |
| | | |
Date | | Per Share | | Repurchased | | Total Cost | ||
Six months ended June 30, 2022: |
| |
|
|
|
| |
|
April 15, 2022 | | $ | 10.10 |
| 641,640 | | $ | 6,480 |
June 16, 2022 | |
| 10.16 |
| 333,527 | |
| 3,389 |
Total | | | |
| 975,167 | | $ | 9,869 |
Note 11. Commitments and Contingencies
Commitments: As of March 31,June 30, 2023 and December 31, 2022, the Company had $280,522$289,184 and $319,237, respectively, in outstanding commitments to fund investments under undrawn revolvers, delayed draw commitments and subscription agreements. Management believes that the Company’s available cash balances and/or ability to draw on the Credit Facility, make Short-Term Borrowings or raise additional leverage facilities provide sufficient funds to cover its unfunded commitments as of March 31,June 30, 2023.
Indemnifications: In the normal course of business, the Company enters into contracts and agreements that contain a variety of representations and warranties that provide general indemnification. The Company’s maximum exposure under these agreements is unknown, as these involve future claims that may be made against the Company but that have not occurred. The Company expects the risk of any future obligations under these indemnification provisions to be remote.
56
Concentration of credit and counterparty risk: Credit risk arises primarily from the potential inability of counterparties to perform in accordance with the terms of the contract. In the event that the counterparties do not fulfill their obligations, the Company may be exposed to risk. The risk of default depends on the creditworthiness of the counterparties or issuers of the instruments. It is the Company’s policy to review, as necessary, the credit standing of each counterparty.
Market risk: The Company’s investments and borrowings are subject to market risk. Market risk is the potential for changes in the value due to market changes. Market risk is directly impacted by the volatility and liquidity in the markets in which the investments and borrowings are traded.
Legal proceedings: In the normal course of business, the Company may be subject to legal and regulatory proceedings that are generally incidental to its ongoing operations. While there can be no assurance of the ultimate disposition of any such proceedings, the Company is not currently aware of any such proceedings or disposition that would have a material adverse effect on the Company’s consolidated financial statements.
58
Note 12. Financial Highlights
The following is a schedule of financial highlights for the threesix months ended March 31,June 30, 2023 and 2022:
| | | | | | | | | | | | | | |
|
| March 31, 2023 |
| March 31, 2022 |
|
| June 30, 2023 |
| June 30, 2022 |
| ||||
Per share data: |
| |
|
| |
| |
| |
|
| |
| |
Net asset value at beginning of period | | $ | 10.13 | | $ | 10.10 | | | $ | 10.13 | | $ | 10.10 | |
Net investment income (1) | |
| 0.31 | |
| 0.20 | | |
| 0.62 | |
| 0.42 | |
Net gain (loss) (1) | |
| 0.07 | |
| 0.07 | | |
| — | |
| (0.05) | |
Net increase (decrease) in net assets resulting from operations (1) | |
| 0.38 | |
| 0.27 | | |
| 0.62 | |
| 0.37 | |
Stockholder distributions declared (2) | |
| (0.25) | |
| (0.20) | | |
| (0.53) | |
| (0.40) | |
Other (3) | | | (0.01) | | | (0.01) | | | | — | | | 0.03 | |
Net asset value at end of period | | $ | 10.25 | | $ | 10.16 | | | $ | 10.22 | | $ | 10.10 | |
Total return based on average net asset value (4) | |
| 9.00 | % |
| 2.38 | % | |
| 9.89 | % |
| 3.49 | % |
Ratio/Supplemental data: | |
| | |
| | | |
| | |
| | |
Net assets at end of period | | $ | 858,859 | | $ | 497,611 | | | $ | 944,093 | | $ | 568,960 | |
Shares outstanding at end of period | | | 83,765,462 | | | 48,956,121 | | | | 92,338,550 | | | 56,348,420 | |
Portfolio turnover (5) | |
| 2.31 | % |
| 3.03 | % | |
| 5.04 | % |
| 6.30 | % |
Ratio of total investment income to average net assets (6) | |
| 23.05 | % |
| 15.33 | % | |
| 22.80 | % |
| 14.15 | % |
Ratio of expenses to average net assets (6) (7) | |
| 9.73 | % |
| 6.64 | % | |||||||
Ratio of expenses to average net assets with waivers (6) (7) | |
| 9.94 | % |
| 5.83 | % | |||||||
| (1) | The per share data was derived by using the weighted average shares outstanding during the periods presented. |
| (2) | The per share data for distributions reflects the actual amount of distributions declared during the period. Management monitors available taxable earnings, including net investment income and realized capital gains, to determine if a tax return of capital may occur for the year. To the extent the Company’s taxable earnings fall below the total amount of the Company’s distributions for that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company’s stockholders. The tax character of distributions will be determined at the end of the fiscal year. However, if the character of such distributions were determined as of |
| (3) | Includes the impact of different share amounts used in calculating per share data as a result of calculating certain per share data based on weighted average shares outstanding during the period and certain per share data based on shares outstanding as of a period end or transaction date. |
| (4) | Total return based on average net asset value is calculated by dividing the net increase (decrease) in net assets resulting from operations by the average net asset value. Return calculations are not annualized. |
| (5) | Ratio is not annualized. |
| (6) | Ratios are annualized. To the extent incentive fees are included within the ratio, they are not annualized. |
| (7) | The following is a supplemental ratio for the |
| | | | | | | | | | |
|
| March 31, 2023 |
| March 31, 2022 |
| June 30, 2023 |
| June 30, 2022 | | |
Ratio of net investment income (loss) to average net assets (6) |
| 13.31 | % | 8.69 | % | |||||
Ratio of expenses to average net assets without waivers (6) |
| 9.94 | % | 6.82 | % | |||||
Ratio of net investment income (loss) to average net assets without waivers (6) |
| 12.86 | % | 7.33 | % | |||||
Ratio of net investment income (loss) to average net assets with waivers (6) |
| 12.86 | % | 8.32 | % | |||||
5759
Note 13. Subsequent Events
The Company has evaluated subsequent events through May 12,August 11, 2023, the date on which the consolidated financial statements were issued.
Distributions: On AprilJuly 6, 2023, the Board declared the following regular distributions:
| | | | | | | | | | |
Record Date |
| Payment Date |
| Amount Per Share |
| Payment Date |
| Amount Per Share | ||
April 17, 2023 | | June 30, 2023 | | $ | 0.09 | |||||
May 15, 2023 | | June 30, 2023 | |
| 0.09 | |||||
June 15, 2023 | | June 30, 2023 | |
| 0.09 | |||||
July 17, 2023 | | September 29, 2023 | | $ | 0.09 | |||||
August 15, 2023 | | September 29, 2023 | |
| 0.09 | |||||
September 15, 2023 | | September 29, 2023 | |
| 0.09 | |||||
Total regular dividends declared | | | | $ | 0.27 | | | | $ | 0.27 |
Additionally, on AprilJuly 6, 2023, the Board of Directors also declared a supplemental dividend of $0.01 per share, to stockholders of record as of the close of business on AprilJuly 17, 2023, payable on June 30,September 29, 2023.
5860
ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Except as otherwise specified, references to “we,” “us” and “our” refer to Monroe Capital Income Plus Corporation and its consolidated subsidiaries; MC Advisors refers to Monroe Capital BDC Advisors, LLC, our investment adviser and a Delaware limited liability company; MC Management refers to Monroe Capital Management Advisors, LLC, our administrator and a Delaware limited liability company; and Monroe Capital refers to Monroe Capital LLC, a Delaware limited liability company, and its subsidiaries and affiliates. The following discussion and analysis of our financial condition and results of operations should be read in conjunction with our consolidated financial statements and related notes appearing in our annual report on Form 10-K (the “Annual Report”) for the year ended December 31, 2022, filed with the U.S. Securities and Exchange Commission (“SEC”) on March 15, 2023. The information contained in this section should also be read in conjunction with our unaudited consolidated financial statements and related notes and other financial information appearing elsewhere in this quarterly report on Form 10-Q (the “Quarterly Report”).
FORWARD-LOOKING STATEMENTS
This Quarterly Report, including Management’s Discussion and Analysis of Financial Condition and Results of Operations, contains statements that constitute forward-looking statements, which relate to future events or our future performance or future financial condition. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about our company, our industry, our beliefs and our assumptions. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties, including statements as to:
| ● | our future operating results; |
| ● | our business prospects and the prospects of our portfolio companies; |
| ● | the dependence of our future success on the general economy and its impact on the industries in which we invest; |
| ● | the impact of |
| ● | the impact of a protracted decline in the liquidity of credit markets on our business; |
| ● | the impact of changes in London Interbank Offered Rate (“LIBOR”) or Secured Overnight Financing Rate (“SOFR”) on our operating results; |
| ● | the impact of increased competition; |
| ● | the impact of rising interest and inflation rates and the risk of recession on our business prospects and the prospects of our portfolio companies; |
| ● | our contractual arrangements and relationships with third parties; |
| ● | the valuation of our investments in portfolio companies, particularly those having no liquid trading market; |
| ● | actual and potential conflicts of interest with MC Advisors, MC Management and other affiliates of Monroe Capital; |
| ● | the ability of our portfolio companies to achieve their objectives; |
| ● | the use of borrowed money to finance a portion of our investments; |
59
| ● | the adequacy of our financing sources and working capital; |
| ● | the timing of cash flows, if any, from the operations of our portfolio companies; |
61
| ● | the ability of MC Advisors to locate suitable investments for us and to monitor and administer our investments; |
| ● | the ability of MC Advisors or its affiliates to attract and retain highly talented professionals; |
| ● | our ability to qualify and maintain our qualification as a regulated investment company and as a business development company; and |
| ● | the impact of future legislation and regulation on our business and our portfolio companies. |
We use words such as “anticipates,” “believes,” “expects,” “intends,” “seeks,” “plans,” “estimates,” “targets” and similar expressions to identify forward-looking statements. The forward-looking statements contained in this Quarterly Report involve risks and uncertainties. Our actual results could differ materially from those implied or expressed in the forward-looking statements for any reason, including the factors set forth in “Part I-Item 1A. Risk Factors” in our Annual Report and “Part II-Item 1A. Risk Factors” in this Quarterly Report.
Although we believe that the assumptions on which these forward-looking statements are based are reasonable, any of those assumptions could prove to be inaccurate, and as a result, the forward-looking statements based on those assumptions also could be inaccurate. Important assumptions include our ability to originate new loans and investments, certain margins and levels of profitability and the availability of additional capital. In light of these and other uncertainties, the inclusion of a projection or forward-looking statements in this Quarterly Report should not be regarded as a representation by us that our plans and objectives will be achieved.
We have based the forward-looking statements included in this Quarterly Report on information available to us on the date of this Quarterly Report, and we assume no obligation to update any such forward-looking statements. Although we undertake no obligation to revise or update any forward-looking statements in this Quarterly Report, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that we may make directly to you or through reports that we may file in the future with the SEC, including Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K.
Overview
Monroe Capital Income Plus Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). In addition, for U.S. federal income tax purposes we have elected to be treated as a regulated investment company (“RIC”) under the U.S. Internal Revenue Code of 1986, as amended (the “Code”). We currently qualify and intend to continue to qualify annually to be treated as a RIC for U.S. federal income tax purposes.
As an emerging growth company, we intend to take advantage of the extended transition period provided in Section 7(a)(2)(B) of the Securities Act of 1933, as amended (the “Securities Act”) for complying with new or revised accounting standards.
6062
We are a specialty finance company that is focused on providing financing solutions primarily to lower middle-market companies in the United States and Canada. We seek to provide investors with attractive risk-adjusted returns and downside protection associated with investing in asset based and secured corporate private credit opportunities in a manner that is decoupled from public markets’ volatility. We seek to provide attractive risk-adjusted returns and downside protection by investing primarily in secured private credit transactions and assets, targeting investments that have significant downside protection through a focus on asset coverage. We expect to invest primarily in: (i) senior secured and junior secured and unsecured loans, notes, bonds, preferred equity (including preferred partnership equity), convertible debt and other securities; (ii) unitranche secured loans (a combination of senior secured and junior secured debt in the same facility in which we syndicate a “first out” portion of the loan to an investor and retain a “last out” portion of the loan) and securities; (iii) asset-based loans and securities; (iv) small business loans and leases; (v) structured debt and structured equity; (vi) syndicated loans; (vii) securitized debt and subordinated notes of collateralized loan obligations facilities, asset-backed securities and other securitized products and warehouse loan facilities; (viii) opportunities to acquire illiquid investments from other third-party funds as a result of liquidity constraints resulting from investor redemptions and market dislocations; and (ix) capital investments in the secondary markets. As of March 31,June 30, 2023, our portfolio included approximately 85.5%86.7% senior secured loans, 8.3%7.3% unitranche secured loans, 2.9%2.5% junior secured loans and 3.3%3.5% equity securities, compared to December 31, 2022, when our portfolio included approximately 85.1% senior secured loans, 8.7% unitranche secured loans, 3.0% junior secured loans and 3.2% equity securities. We expect that the companies in which we invest may be leveraged, often as a result of leveraged buyouts or other recapitalization transactions, and, in certain cases, will not be rated by national ratings agencies. If such companies were rated, we believe that they would typically receive a rating below investment grade (between BB and CCC under the Standard & Poor’s system) from the national rating agencies.
We use Monroe Capital’s extensive leveraged finance origination infrastructure and broad expertise in sourcing loans to invest in senior secured, unitranche secured and junior secured debt of middle-market companies. Our investment size will vary proportionately with the size of our capital base. We believe that our focus on lending to lower middle-market companies offers several advantages as compared to lending to larger companies, including more attractive economics, lower leverage, more comprehensive and restrictive covenants, more expansive events of default, relatively small debt facilities that provide us with enhanced influence over our borrowers, direct access to borrower management and improved information flow.
Stock Issuances and Share Repurchase Program
Stock Issuances: We are conducting our second best efforts, continuous private offering of our common stock to “accredited investors” in reliance on an exemption from the registration requirements of the Securities Act (the “Second Private Offering”). At each closing an investor purchases shares of our common stock pursuant to a subscription agreement entered into with us. At each closing, investors are required to fund their full subscription to purchase shares of our common stock.
The following table summarizes the issuance of shares of our common stock pursuant to the Second Private Offering during the threesix months ended March 31,June 30, 2023 and 2022 (in thousands except shares and per share data):
| | | | | | | | | | | | | | | | |
|
| Price Per | | |
| | |
| Price Per | | |
| | | ||
Date | | Share | | Shares Issued | | Proceeds | | Share | | Shares Issued | | Proceeds | ||||
Three months ended March 31, 2023: |
| |
| |
|
| |
| ||||||||
Six months ended June 30, 2023: |
| |
| |
|
| |
| ||||||||
March 16, 2023 | | $ | 10.13 | | 9,474,500 | | $ | 95,977 | | $ | 10.13 | | 9,474,500 | | $ | 95,977 |
May 16, 2023 | | | 10.25 | | 8,321,086 | | | 85,291 | ||||||||
Total | |
| | | 9,474,500 | | $ | 95,977 | |
| | | 17,795,586 | | $ | 181,268 |
| | | | | | | | | | | | | | | | |
|
| Price Per | | |
| | |
| Price Per | | |
| | | ||
Date | | Share | | Shares Issued | | Proceeds | | Share | | Shares Issued | | Proceeds | ||||
Three months ended March 31, 2022: |
| |
| |
|
| |
| ||||||||
Six months ended June 30, 2022: |
| |
| |
|
| |
| ||||||||
March 15, 2022 | | $ | 10.10 | | 12,173,590 | | $ | 122,953 | | $ | 10.10 | | 12,173,590 | | $ | 122,953 |
May 17, 2022 | | | 10.16 | | 8,022,706 | | | 81,511 | ||||||||
Total | |
| | | 12,173,590 | | $ | 122,953 | |
| | | 20,196,296 | | $ | 204,464 |
63
Share Repurchase Program: During 2022, we commenced a quarterly share repurchase program in which we intend to repurchase, in each quarter, up to 5% of the shares of common stock outstanding as of the close of the previous calendar quarter (the “Share Repurchase Program”), subject to the discretion of our Board. Any such repurchases are subject to approval by our Board, in its discretion, and the availability of cash to fund such repurchases. Our Board may amend, suspend or terminate the share repurchase program if it deems such action to be in our best interest and the best interest of our stockholders.
61
The following table summarizestables summarize the total shares repurchased that were validly tendered under the Share Repurchase Program and not withdrawn during the threesix months ended March 31,June 30, 2023 and 2022 (in thousands except shares and per share data):
| | | | | | | | | | | | | | | | |
|
| Price Per | | |
| | |
| Price Per | | Shares |
| | | ||
Date | | Share | | Shares Repurchased | | Proceeds | | Share | | Repurchased | | Proceeds | ||||
Three months ended March 31, 2023: |
| |
| |
|
| |
| ||||||||
Six months ended June 30, 2023: |
| |
| |
|
| |
| ||||||||
March 30, 2023 | | $ | 10.13 | | 906,750 | | $ | 9,185 | | $ | 10.13 | | 906,750 | | $ | 9,185 |
June 29, 2023 | | | 10.25 | | 664,987 | | | 6,816 | ||||||||
Total | |
| | | 906,750 | | $ | 9,185 | |
| | | 1,571,737 | | $ | 16,001 |
| | | | | | | | |
|
| Price |
| Shares |
| | | |
Date | | Per Share | | Repurchased | | Proceeds | ||
Six months ended June 30, 2022: |
| |
|
|
|
| |
|
April 15, 2022 | | $ | 10.10 |
| 641,640 | | $ | 6,480 |
June 16, 2022 | |
| 10.16 |
| 333,527 | |
| 3,389 |
Total | |
| | | 975,167 | | $ | 9,869 |
There were no shares repurchased during the three months ended March 31, 2022.
Investment income
We generate interest income on the debt investments in portfolio company investments that we originate or acquire. Our debt investments, whether in the form of senior secured, unitranche secured or junior secured debt, typically have an initial term of three to seven years and bear interest at a fixed or floating rate. In some instances, we receive payments on our debt investments based on scheduled amortization of the outstanding balances. In addition, we receive repayments of some of our debt investments prior to their scheduled maturity date. In some cases, our investments provide for deferred interest of payment-in-kind (“PIK”) interest. In addition, we may generate revenue in the form of commitment, origination, amendment, structuring or due diligence fees, fees for providing managerial assistance and consulting fees. Loan origination fees, original issue discount and market discount or premium are capitalized, and we accrete or amortize such amounts as interest income. We record prepayment premiums and prepayment gains (losses) on loans as interest income. As the frequency or volume of the repayments which trigger these prepayment premiums and prepayment gains (losses) may fluctuate significantly from period to period, the associated interest income recorded may also fluctuate significantly from period to period. Interest and fee income is recorded on the accrual basis to the extent we expect to collect such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service is completed.
Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from limited liability company (“LLC”) and limited partnership (“LP”) investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment. The frequency and volume of the distributions on common equity securities and LLC and LP investments may fluctuate significantly from period to period.
64
Expenses
Our primary operating expenses include the payment of base management and incentive fees to MC Advisors under the investment advisory agreement entered into on December 5, 2018 (the “Investment Advisory Agreement”), the payment of fees to MC Management for our allocable portion of overhead and other expenses under the administration agreement entered into on December 5, 2018 (the “Administration Agreement”), and other operating costs. See Note 6 to our consolidated financial statements and “Related Party Transactions” below for additional information on our Investment Advisory Agreement and Administration Agreement. Our expenses also include interest expense on indebtedness. We bear all other out-of-pocket costs and expenses of our operations and transactions.
62
Net gain (loss)
We recognize realized gains or losses on investments, foreign currency forward contracts and foreign currency and other transactions based on the difference between the net proceeds from the disposition and the cost basis without regard to unrealized gains or losses previously recognized within net realized gain (loss) on the consolidated statements of operations. We record current period changes in fair value of investments, foreign currency forward contracts, foreign currency and other transactions within net change in unrealized gain (loss) on the consolidated statements of operations.
Portfolio and Investment Activity
During the three months ended March 31,June 30, 2023, we invested $49.1$212.4 million in seven18 new portfolio companies, $51.3$55.4 million in 4844 existing portfolio companies and had $34.8$45.4 million in aggregate amount of sales and principal repayments, resulting in net investments of $65.6$222.4 million for the period.
During the threesix months ended March 31, 2022,June 30, 2023, we invested $21.2$269.0 million in three25 new portfolio companies, $58.6and $99.2 million in 2992 existing portfolio companies, and had $22.3$80.2 million in aggregate amount of sales and principal repayments, resulting in net investments of $57.5$288.0 million for the period.
During the three months ended June 30, 2022, we invested $107.4 million in eight new portfolio companies, and $27.7 million in 30 existing portfolio companies, and had $26.9 million in aggregate amount of sales and principal repayments, resulting in net investments of $108.2 million for the period.
During the six months ended June 30, 2022, we invested $128.6 million in 11 new portfolio companies, and $86.3 million in 42 existing portfolio companies, and had $49.2 million in aggregate amount of sales and principal repayments, resulting in net investments of $165.7 million for the period.
65
The following table shows portfolio yield by security type:
| | | | | | | | | | | | | | | | | | |
| | March 31, 2023 | | December 31, 2022 |
| | June 30, 2023 | | December 31, 2022 |
| ||||||||
| | Weighted Average | | Weighted | | Weighted Average | | Weighted |
| | Weighted Average | | Weighted | | Weighted Average | | Weighted |
|
| | Annualized | | Average | | Annualized | | Average |
| | Annualized | | Average | | Annualized | | Average |
|
| | Contractual | | Annualized | | Contractual | | Annualized |
| | Contractual | | Annualized | | Contractual | | Annualized |
|
| | Coupon | | Effective | | Coupon | | Effective |
| | Coupon | | Effective | | Coupon | | Effective |
|
|
| Yield (1) |
| Yield (2) |
| Yield (1) |
| Yield (2) |
|
| Yield (1) |
| Yield (2) |
| Yield (1) |
| Yield (2) |
|
Senior secured loans |
| 11.3 | % | 11.3 | % | 10.8 | % | 10.8 | % |
| 11.6 | % | 11.6 | % | 10.8 | % | 10.8 | % |
Unitranche secured loans |
| 12.6 |
| 13.0 |
| 11.0 |
| 11.3 | |
| 13.1 |
| 13.7 |
| 11.0 |
| 11.3 | |
Junior secured loans |
| 11.7 |
| 11.7 |
| 11.9 |
| 11.9 | |
| 11.8 |
| 11.8 |
| 11.9 |
| 11.9 | |
Equity securities |
| 6.6 |
| 6.6 |
| 6.6 |
| 6.6 | |
| 6.6 |
| 6.6 |
| 6.6 |
| 6.6 | |
Total |
| 11.4 | % | 11.4 | % | 10.8 | % | 10.8 | % |
| 11.7 | % | 11.7 | % | 10.8 | % | 10.8 | % |
| (1) | The weighted average annualized contractual coupon yield at period end is computed by dividing (a) the interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end contractual coupon rate for each investment by (b) the par value of our debt investments and the cost basis of our preferred equity investments. |
| (2) | The weighted average annualized effective yield on portfolio investments at period end is computed by dividing (a) interest income on our debt investments and preferred equity investments (with a stated coupon rate) at the period end effective rate for each investment by (b) the par value of our debt investments and the cost basis of our preferred equity investments. The weighted average annualized effective yield on portfolio investments is a metric on the investment portfolio alone and does not represent a return to stockholders. This metric is not inclusive of our fees and expenses, the impact of leverage on the investment portfolio or sales load that may be paid by stockholders. |
The following table shows the composition of our investment portfolio at fair value and as percentage of our total investments at fair value (in thousands):
| | | | | | | | | | | | | | | | | | | | | | |
|
| March 31, 2023 |
| December 31, 2022 |
|
| June 30, 2023 |
| December 31, 2022 |
| ||||||||||||
Fair Value: | |
| | |
| |
| | |
|
| |
| | |
| |
| | |
|
|
Senior secured loans | | $ | 1,320,148 |
| 85.5 | % | $ | 1,250,788 |
| 85.1 | % | | $ | 1,529,436 |
| 86.7 | % | $ | 1,250,788 |
| 85.1 | % |
Unitranche secured loans | |
| 128,380 |
| 8.3 | |
| 127,378 |
| 8.7 | | |
| 129,399 |
| 7.3 | |
| 127,378 |
| 8.7 | |
Junior secured loans | |
| 44,633 |
| 2.9 | |
| 44,469 |
| 3.0 | | |
| 44,190 |
| 2.5 | |
| 44,469 |
| 3.0 | |
Equity securities | |
| 50,749 |
| 3.3 | |
| 46,361 |
| 3.2 | | |
| 61,749 |
| 3.5 | |
| 46,361 |
| 3.2 | |
Total | | $ | 1,543,910 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % | | $ | 1,764,774 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
63
Our portfolio composition at March 31,June 30, 2023 remained relatively consistent with our portfolio at December 31, 2022. Our effective yields at March 31,June 30, 2023 increased from December 31, 2022, driven primarily by increases in LIBOR and SOFR. All
66
The following table shows our portfolio composition by industry at fair value and as percentage of our total investments at fair value (in thousands):
| | | | | | | | | | | | | | | | | | | | | | |
|
| March 31, 2023 |
| December 31, 2022 |
|
| June 30, 2023 |
| December 31, 2022 |
| ||||||||||||
Fair Value: | | | | | | | | | | | | | | | | | | | | | | |
Aerospace & Defense | | $ | 20,974 |
| 1.3 | % | $ | 21,049 |
| 1.4 | % | | $ | 21,011 |
| 1.2 | % | $ | 21,049 |
| 1.4 | % |
Automotive | |
| 38,482 |
| 2.5 | |
| 38,843 |
| 2.7 | | |
| 38,129 |
| 2.2 | |
| 38,843 |
| 2.7 | |
Banking | |
| 37,064 |
| 2.4 | |
| 37,979 |
| 2.6 | | |
| 37,046 |
| 2.1 | |
| 37,979 |
| 2.6 | |
Beverage, Food & Tobacco | |
| 16,212 |
| 1.0 | |
| 16,439 |
| 1.1 | | |
| 16,140 |
| 0.9 | |
| 16,439 |
| 1.1 | |
Capital Equipment | |
| 55,272 |
| 3.6 | |
| 56,074 |
| 3.8 | | |
| 72,342 |
| 4.1 | |
| 56,074 |
| 3.8 | |
Chemicals, Plastics & Rubber | | | 705 | | 0.0 | | | — | | — | | |||||||||||
Construction & Building | |
| 35,122 |
| 2.3 | |
| 34,877 |
| 2.4 | | |
| 61,771 |
| 3.5 | |
| 34,877 |
| 2.4 | |
Consumer Goods: Durable | |
| 39,552 |
| 2.5 | |
| 40,357 |
| 2.7 | | |
| 45,247 |
| 2.6 | |
| 40,357 |
| 2.7 | |
Consumer Goods: Non-Durable | |
| 35,671 |
| 2.3 | |
| 32,843 |
| 2.2 | | |
| 44,257 |
| 2.5 | |
| 32,843 |
| 2.2 | |
Containers, Packaging & Glass | | | 11,885 | | 0.8 | | | 11,675 | | 0.8 | | | | 14,118 | | 0.8 | | | 11,675 | | 0.8 | |
Energy: Oil & Gas | | | 2,778 | | 0.2 | | | 3,597 | | 0.2 | | | | 2,690 | | 0.2 | | | 3,597 | | 0.2 | |
Environmental Industries | |
| 35,801 |
| 2.3 | |
| 31,457 |
| 2.1 | | |
| 35,656 |
| 2.0 | |
| 31,457 |
| 2.1 | |
FIRE: Finance | |
| 68,987 |
| 4.5 | |
| 66,639 |
| 4.5 | | |
| 123,451 |
| 7.0 | |
| 66,639 |
| 4.5 | |
FIRE: Insurance | | | 16,019 | | 1.0 | | | 9,641 | | 0.7 | | | | 18,553 | | 1.1 | | | 9,641 | | 0.7 | |
FIRE: Real Estate | |
| 82,196 |
| 5.3 | |
| 71,154 |
| 4.8 | | |
| 78,581 |
| 4.4 | |
| 71,154 |
| 4.8 | |
Healthcare & Pharmaceuticals | |
| 229,611 |
| 14.9 | |
| 210,831 |
| 14.4 | | |
| 255,373 |
| 14.5 | |
| 210,831 |
| 14.4 | |
High Tech Industries | |
| 186,220 |
| 12.1 | |
| 180,823 |
| 12.3 | | |
| 194,481 |
| 11.0 | |
| 180,823 |
| 12.3 | |
Hotels, Gaming & Leisure | |
| 2,484 |
| 0.2 | |
| 2,331 |
| 0.2 | | |
| 62 |
| 0.0 | |
| 2,331 |
| 0.2 | |
Media: Advertising, Printing & Publishing | |
| 137,498 |
| 8.9 | |
| 129,362 |
| 8.8 | | |
| 143,152 |
| 8.1 | |
| 129,362 |
| 8.8 | |
Media: Broadcasting & Subscription | |
| 2,376 |
| 0.1 | |
| 2,019 |
| 0.1 | | |
| 2,011 |
| 0.1 | |
| 2,019 |
| 0.1 | |
Media: Diversified & Production | |
| 44,527 |
| 2.9 | |
| 46,348 |
| 3.2 | | |
| 45,002 |
| 2.6 | |
| 46,348 |
| 3.2 | |
Retail | |
| 930 |
| 0.1 | |
| — |
| — | | |
| 954 |
| 0.1 | |
| — |
| — | |
Services: Business | |
| 194,301 |
| 12.6 | |
| 184,535 |
| 12.6 | | |
| 230,154 |
| 13.0 | |
| 184,535 |
| 12.6 | |
Services: Consumer | |
| 85,021 |
| 5.5 | |
| 77,998 |
| 5.3 | | |
| 104,995 |
| 5.9 | |
| 77,998 |
| 5.3 | |
Telecommunications | |
| 36,473 |
| 2.4 | |
| 36,415 |
| 2.5 | | |
| 36,848 |
| 2.1 | |
| 36,415 |
| 2.5 | |
Transportation: Cargo | | | 98,663 | | 6.4 | | | 97,153 | | 6.6 | | | | 106,056 | | 6.0 | | | 97,153 | | 6.6 | |
Wholesale | |
| 29,791 |
| 1.9 | |
| 28,557 |
| 2.0 | | |
| 35,989 |
| 2.0 | |
| 28,557 |
| 2.0 | |
Total | | $ | 1,543,910 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % | | $ | 1,764,774 |
| 100.0 | % | $ | 1,468,996 |
| 100.0 | % |
Portfolio Asset Quality
MC Advisors’ portfolio management staff closely monitors all credits, with senior portfolio managers covering agented and more complex investments. MC Advisors segregates our capital markets investments by industry. The MC Advisors’ monitoring process and projections developed by Monroe Capital both have daily, weekly, monthly and quarterly components and related reports, each to evaluate performance against historical, budget and underwriting expectations. MC Advisors’ analysts will monitor performance using standard industry software tools to provide consistent disclosure of performance. When necessary, MC Advisors will update our internal risk ratings, borrowing base criteria and covenant compliance reports.
6467
As part of the monitoring process, MC Advisors regularly assesses the risk profile of each of our investments and rates each of them based on an internal proprietary system that uses the categories listed below, which we refer to as MC Advisors’ investment performance risk rating. For any investment rated in Grades 3, 4 or 5, MC Advisors, through its internal Portfolio Management Group (“PMG”), will increase its monitoring intensity and prepare regular updates for the investment committee, summarizing current operating results and material impending events and suggesting recommended actions. The PMG is responsible for oversight and management of any investments rated in Grades 3, 4, or 5. MC Advisors monitors and, when appropriate, changes the investment ratings assigned to each investment in our portfolio. In connection with our valuation process, MC Advisors reviews these investment performance risk ratings on a quarterly basis. The investment performance risk rating system is described as follows:
| ||
Investment |
| Summary Description |
Grade 1 |
| Includes investments exhibiting the least amount of risk in our portfolio. The issuer is performing above expectations or the issuer’s operating trends and risk factors are generally positive. |
|
|
|
Grade 2 |
| Includes investments exhibiting an acceptable level of risk that is similar to the risk at the time of origination. The issuer is generally performing as expected or the risk factors are neutral to positive. |
|
|
|
Grade 3 |
| Includes investments performing below expectations and indicates that the investment’s risk has increased somewhat since origination. The issuer may be out of compliance with debt covenants; however, scheduled loan payments are generally not past due. |
|
|
|
Grade 4 |
| Includes an issuer performing materially below expectations and indicates that the issuer’s risk has increased materially since origination. In addition to the issuer being generally out of compliance with debt covenants, scheduled loan payments may be past due (but generally not more than six months past due). |
|
|
|
Grade 5 |
| Indicates that the issuer is performing substantially below expectations and the investment risk has substantially increased since origination. Most or all of the debt covenants are out of compliance or payments are substantially delinquent. Investments graded 5 are not anticipated to be repaid in full. |
Our investment performance risk ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or reflect or represent any third-party assessment of any of our investments.
In the event of a delinquency or a decision to rate an investment Grade 4 or Grade 5, the PMG, in consultation with the investment committee, will develop an action plan. Such a plan may require a meeting with the borrower’s management or the lender group to discuss reasons for the default and the steps management is undertaking to address the under-performance, as well as amendments and waivers that may be required. In the event of a dramatic deterioration of a credit, MC Advisors and the PMG will form a team or engage outside advisors to analyze, evaluate and take further steps to preserve our value in the credit. In this regard, we would expect to explore all options, including in a private equity sponsored investment, assuming certain responsibilities for the private equity sponsor or a formal sale of the business with oversight of the sale process by us. The PMG and the investment committee have extensive experience in running debt work-out transactions and bankruptcies.
68
The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of March 31,June 30, 2023 (in thousands):
| | | | | | | | | | | | |
| | Investments at | | Percentage of |
| | Investments at | | Percentage of |
| ||
Investment Performance Risk Rating |
| Fair Value |
| Total Investments |
|
| Fair Value |
| Total Investments |
| ||
1 | | $ | — |
| — | % | | $ | — |
| — | % |
2 | |
| 1,427,850 |
| 92.5 | | |
| 1,613,351 |
| 91.4 | |
3 | |
| 115,452 |
| 7.4 | | |
| 141,775 |
| 8.0 | |
4 | |
| 608 |
| 0.1 | | |
| 9,648 |
| 0.6 | |
5 | |
| — |
| — | | |
| — |
| — | |
Total | | $ | 1,543,910 |
| 100 | % | | $ | 1,764,774 |
| 100.0 | % |
65
The following table shows the distribution of our investments on the 1 to 5 investment performance risk rating scale as of December 31, 2022 (in thousands):
| | | | | | |
| | Investments at | | Percentage of |
| |
Investment Performance Risk Rating |
| Fair Value |
| Total Investments |
| |
1 | | $ | — |
| — | % |
2 | |
| 1,396,200 |
| 95.0 | |
3 | |
| 72,190 |
| 4.9 | |
4 | |
| 606 |
| 0.1 | |
5 | |
| — |
| — | |
Total | | $ | 1,468,996 |
| 100.0 | % |
As of both March 31,June 30, 2023, there was one borrower with loans or preferred equity securities on non-accrual status (Arcstor Midco, LLC), and these investments totaled $9.2 million at fair value, or 0.5% of our total investments at fair value at June 30, 2023. As of December 31, 2022, there were no borrowers with a loanloans or preferred equity securities on non-accrual status.
69
Results of Operations
Operating results were as follows (in thousands):
| | | | | | |
| | Three months ended | ||||
| | March 31, | ||||
|
| 2023 |
| 2022 | ||
Total investment income | | $ | 45,852 | | $ | 16,387 |
Total operating expenses | |
| 22,295 | |
| 8,472 |
Net investment income before income taxes | |
| 23,557 | |
| 7,915 |
Income taxes, including excise taxes | |
| 195 | |
| — |
Net investment income | |
| 23,362 | |
| 7,915 |
Net realized gain (loss) on investments | |
| 944 | |
| 25 |
Net realized gain (loss) on foreign currency forward contracts | |
| 33 | |
| 18 |
Net realized gain (loss) on foreign currency and other transactions | |
| (4) | |
| — |
Net realized gain (loss) | |
| 973 | |
| 43 |
Net change in unrealized gain (loss) on investments | |
| 4,606 | |
| 2,903 |
Net change in unrealized gain (loss) on foreign currency forward contracts | |
| 113 | |
| (533) |
Net unrealized gain (loss) on foreign currency and other transactions | |
| (1) | |
| — |
Net change in unrealized gain (loss) | |
| 4,718 | |
| 2,370 |
Net increase (decrease) in net assets resulting from operations | | $ | 29,053 | | $ | 10,328 |
| | | | | | |
| | Three months ended | ||||
| | June 30, | ||||
|
| 2023 |
| 2022 | ||
Total investment income | | $ | 50,560 | | $ | 17,203 |
Total operating expenses, net of fee waivers | |
| 23,013 | |
| 5,830 |
Net investment income before income taxes | |
| 27,547 | |
| 11,373 |
Income taxes, including excise taxes | |
| 189 | |
| 1 |
Net investment income | |
| 27,358 | |
| 11,372 |
Net realized gain (loss) on investments | |
| (1,604) | |
| (42) |
Net realized gain (loss) on foreign currency forward contracts | |
| 1,708 | |
| 27 |
Net realized gain (loss) on foreign currency and other transactions | |
| 180 | |
| (13) |
Net realized gain (loss) | |
| 284 | |
| (28) |
Net change in unrealized gain (loss) on investments | |
| (2,809) | |
| (6,300) |
Net change in unrealized gain (loss) on foreign currency forward contracts | |
| (3,272) | |
| 1,335 |
Net unrealized gain (loss) on foreign currency and other transactions | |
| 1 | |
| — |
Net change in unrealized gain (loss) | |
| (6,080) | |
| (4,965) |
Net increase (decrease) in net assets resulting from operations | | $ | 21,562 | | $ | 6,379 |
| | | | | | |
| | Six months ended | ||||
| | June 30, | ||||
|
| 2023 |
| 2022 | ||
Total investment income | | $ | 96,412 | | $ | 33,590 |
Total operating expenses, net of fee waivers | |
| 45,308 | |
| 14,302 |
Net investment income before income taxes | |
| 51,104 | |
| 19,288 |
Income taxes, including excise taxes | |
| 384 | |
| 1 |
Net investment income | |
| 50,720 | |
| 19,287 |
Net realized gain (loss) on investments | |
| (660) | |
| (17) |
Net realized gain (loss) on foreign currency forward contracts | |
| 1,741 | |
| 45 |
Net realized gain (loss) on foreign currency and other transactions | |
| 176 | |
| (13) |
Net realized gain (loss) | |
| 1,257 | |
| 15 |
Net change in unrealized gain (loss) on investments | |
| 1,797 | |
| (3,397) |
Net change in unrealized gain (loss) on foreign currency forward contracts | |
| (3,159) | |
| 802 |
Net unrealized gain (loss) on foreign currency and other transactions | |
| — | |
| — |
Net change in unrealized gain (loss) | |
| (1,362) | |
| (2,595) |
Net increase (decrease) in net assets resulting from operations | | $ | 50,615 | | $ | 16,707 |
70
Investment Income
The composition of our investment income was as follows (in thousands):
| | | | | | | | | | | | |
| | Three months ended | | Three months ended | ||||||||
| | March 31, | | June 30, | ||||||||
|
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
Interest income | | $ | 41,457 | | $ | 13,167 | | $ | 46,975 | | $ | 15,166 |
PIK interest income | |
| 2,112 | |
| 678 | |
| 1,621 | |
| 956 |
Dividend income (1) | |
| 105 | |
| 96 | |
| 139 | |
| 119 |
Fee income | |
| 238 | |
| 1,593 | |
| 402 | |
| 192 |
Prepayment gain (loss) | |
| 328 | |
| 210 | |
| 151 | |
| 222 |
Accretion of discounts and amortization of premiums | |
| 1,612 | |
| 643 | |
| 1,272 | |
| 548 |
Total investment income | | $ | 45,852 | | $ | 16,387 | | $ | 50,560 | | $ | 17,203 |
| | | | | | |
| | Six months ended | ||||
| | June 30, | ||||
|
| 2023 |
| 2022 | ||
Interest income | | $ | 88,432 | | $ | 28,333 |
PIK interest income | |
| 3,733 | |
| 1,634 |
Dividend income (2) | |
| 244 | |
| 215 |
Fee income | |
| 640 | |
| 1,785 |
Prepayment gain (loss) | |
| 479 | |
| 432 |
Accretion of discounts and amortization of premiums | |
| 2,884 | |
| 1,191 |
Total investment income | | $ | 96,412 | | $ | 33,590 |
| (1) | During the three months ended |
| (2) | During the six months ended June 30, 2023 and 2022, dividend income includes PIK dividends of $189 and $180, respectively. |
6671
The increase in investment income of $29.5$33.4 million and $62.8 million during the three and six months ended March 31,June 30, 2023, as compared to the three and six months ended March 31,June 30, 2022, respectively, is primarily the result of an increase in interest income due to the growth of our investment portfolio and increases in effective rates on the portfolio as a result of the rising interest rate environment.
Operating Expenses
The composition of our operating expenses was as follows (in thousands):
| | | | | | | | | | | | |
| | Three months ended | | Three months ended | ||||||||
| | March 31, | | June 30, | ||||||||
|
| 2023 |
| 2022 |
| 2023 |
| 2022 | ||||
Interest and other debt financing expenses | | $ | 12,089 | | $ | 3,280 | | $ | 13,066 | | $ | 4,702 |
Base management fees (1) | |
| 4,847 | |
| 2,796 | ||||||
Incentive fees (2) | |
| 4,151 | |
| 1,823 | ||||||
Base management fees, net of base management fee waivers (1) | |
| 5,382 | |
| 977 | ||||||
Incentive fees, net of incentive fee waivers (2) | |
| 3,080 | |
| (923) | ||||||
Professional fees | |
| 310 | |
| 145 | |
| 513 | |
| 540 |
Administrative service fees | |
| 370 | |
| 203 | |
| 392 | |
| 208 |
General and administrative expenses | |
| 505 | |
| 210 | |
| 557 | |
| 304 |
Directors’ fees | |
| 23 | |
| 15 | |
| 23 | |
| 22 |
Total operating expenses | | $ | 22,295 | | $ | 8,472 | ||||||
Total operating expenses, net of fee waivers | | $ | 23,013 | | $ | 5,830 | ||||||
| | | | | | |
| | Six months ended | ||||
| | June 30, | ||||
|
| 2023 |
| 2022 | ||
Interest and other debt financing expenses | | $ | 25,155 | | $ | 7,982 |
Base management fees, net of base management fee waivers (1) | |
| 10,229 | |
| 3,773 |
Incentive fees, net of incentive fee waivers (2) | |
| 7,231 | |
| 900 |
Professional fees | |
| 823 | |
| 685 |
Administrative service fees | |
| 762 | |
| 411 |
General and administrative expenses | |
| 1,062 | |
| 514 |
Directors’ fees | |
| 46 | |
| 37 |
Total operating expenses, net of fee waivers | | $ | 45,308 | | $ | 14,302 |
| (1) | Base management fees for the three and six months ended |
| (2) | Incentive fees for the three and six months ended |
72
The composition of our interest and other debt financing expenses, average debt outstanding and average stated interest rates (i.e., the rate in effect plus spread) were as follows (in thousands):
| | | | | | | | | | | | | | |
| | Three months ended |
| | Three months ended |
| ||||||||
| | March 31, |
| | June 30, |
| ||||||||
|
| 2023 |
| 2022 |
|
| 2023 |
| 2022 |
| ||||
Interest expense - Credit Facility | | $ | 5,798 | | $ | 2,772 | | | $ | 5,412 | | $ | 1,090 | |
Interest expense - Term Loan | |
| 2,340 | |
| — | | |
| 2,831 | |
| — | |
Interest expense - 2022 ABS | |
| 3,221 | |
| — | | |
| 3,221 | |
| 3,006 | |
Interest expense - Short-Term Borrowings | | | 79 | | | — | | |||||||
Amortization of deferred financing costs | |
| 730 | |
| 508 | | |
| 1,523 | |
| 606 | |
Total interest and other debt financing expenses | | $ | 12,089 | | $ | 3,280 | | | $ | 13,066 | | $ | 4,702 | |
Average debt outstanding | | $ | 750,495 | | $ | 339,678 | | | $ | 724,664 | | $ | 355,976 | |
Average stated interest rate | |
| 6.1 | % |
| 3.4 | % | |
| 6.4 | % |
| 4.6 | % |
| | | | | | | |
| | Six months ended |
| ||||
| | June 30, |
| ||||
|
| 2023 |
| 2022 |
| ||
Interest expense - Credit Facility | | $ | 11,210 | | $ | 3,985 | |
Interest expense - Term Loan | |
| 5,171 | |
| — | |
Interest expense - 2022 ABS | |
| 6,442 | |
| 3,006 | |
Interest expense - Short-Term Borrowings | | | 79 | | | — | |
Amortization of deferred financing costs | |
| 2,253 | |
| 991 | |
Total interest and other debt financing expenses | | $ | 25,155 | | $ | 7,982 | |
Average debt outstanding | | $ | 737,581 | | $ | 347,871 | |
Average stated interest rate | |
| 6.3 | % |
| 4.0 | % |
The increase in total operating expenses of $13.8$17.2 million and $31.0 million during the three and six months ended March 31,June 30, 2023, as compared to the three and six months ended March 31,June 30, 2022, respectively, is primarily a result of increases in interest expense, base management fees and incentive fees. Thean increase in interest expense, is the result of the increase indriven by higher average borrowings to support the growth of the portfolio growth and an increaseincreases in the effective interest raterates on our debt as a result of the rising interest rate environment. Theenvironment, and increases in base management fees and incentive fees, were primarily the resultnet of portfolio growth and increases in our net investment income, respectively.fee waivers.
Income Taxes, Including Excise Taxes
We have elected to be treated, currently qualify, and intend to continue to qualify annually as a RIC under Subchapter M of the Code and operate in a manner so as to qualify for the U.S. federal income tax treatment available to RICs. To maintain qualification as a RIC, we must, among other things, meet certain source-of-income and asset diversification requirements and distribute to stockholders, for each taxable year, at least 90% of our “investment company taxable income,” which is generally our net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses.
67
Depending on the level of taxable income earned in a tax year, we may choose to carry forward such taxable income in excess of current year dividend distributions from such current year taxable income into the next year and pay U.S. federal income tax at corporate rates and a 4% excise tax on such income, as required. To the extent that we determine that our estimated current year annual taxable income may exceed estimated current year dividend distributions, we accrue excise tax, if any, on estimated excess taxable income as such taxable income is earned. For the three and six months ended March 31,June 30, 2023, and 2022, we recorded a net expense (benefit) on the consolidated statements of operations of $0.2 million and zero,$0.4 million, respectively for U.S. federal excise tax. For both the three and six months ended June 30, 2022, we did not record a net tax expense on the consolidated statements of operations for U.S. federal excise tax.
Certain of our consolidated subsidiaries are subject to U.S. federal and state corporate-level income taxes. For both the three and six months ended March 31,June 30, 2023, we recorded a net tax expense of $39 thousand on the consolidated statements of operations for these subsidiaries. For both the three and six months ended June 30, 2022, we recorded a net tax expense of zero$1 thousand on the consolidated statements of operations for these subsidiaries.
73
Net Realized Gain (Loss)
During the three months ended March 31,June 30, 2023 and 2022, we had sales of investments of $4.5$0.1 million and $10.1$5.7 million, respectively, resulting in $0.9($1.6) million and $25($42) thousand of net realized gain (loss) on investments, respectively. The realized losses during the three months ended June 30, 2023 were primarily attributable to losses on a loan denominated in Australian Dollars and these losses were fully offset by gains on the realization of an associated foreign currency forward contract. During the six months ended June 30, 2023 and 2022, we had sales of investments of $4.6 million and $15.8 million, respectively, resulting in ($660) thousand and ($17) thousand of net realized gain (loss) on investments, respectively.
We have entered and may continue to enter into foreign currency forward contracts to reduce our exposure to foreign currency exchange rate fluctuations. During the three months ended March 31,June 30, 2023 and 2022, we had $33$1.7 million and $27 thousand net realized gain (loss) on foreign currency forward contracts, respectively. During the six months ended June 30, 2023 and $182022, we had $1.7 million and $45 thousand net realized gain (loss) on foreign currency forward contracts, respectively. During the three months ended March 31,June 30, 2023 and 2022, we had $0.2 million and ($4)13) thousand of net realized gain (loss) on foreign currency and zeroother transactions, respectively. During the six months ended June 30, 2023 and 2022, we had $0.2 million and ($13) thousand of net realized gain (loss) on foreign currency and other transactions, respectively.
Net Change in Unrealized Gain (Loss)
For the three months ended March 31,June 30, 2023 and 2022, our investments had $4.6($2.8) million and $2.9($6.3) million of net change in unrealized gain (loss), respectively. For the six months ended June 30, 2023 and 2022, our investments had $1.8 million and ($3.4) million in net change in unrealized gain (loss), respectively. The net change in unrealized gain (loss) includes both unrealized gain on investments in our portfolio with mark-to-market gains during the periods and unrealized loss on investments in our portfolio with mark-to-market losses during the periods.
We estimateDuring the three months ended June 30, 2023, the net change in unrealized loss on investments was primarily attributable to unrealized losses on certain specific portfolio companies that approximately $7.9 millionhave underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4, or 5 on our investment performance risk rating scale that were still held as of June 30, 2023. During the six months ended June 30, 2023, the net change in unrealized gain on investments during the three months ended March 31, 2023 was primarily attributable to broad market movements and improvements in fundamental performance at our portfolio companies. These increases were partially offset by $3.3 million in net unrealized losses attributable to certain underlying portfolio companies that have underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4 or 5 on our investment performance risk rating scale that were still held as of March 31,June 30, 2023.
We estimate that approximately $3.4During the three and six months ended June 30, 2022 the net change in unrealized loss on investments was primarily attributable to overall market volatility and spread widening in the loan market. Additionally, for the three and six months ended June 30, 2022, $0.4 million and $0.9 million, respectively, of the net change in unrealized gainlosses on investments during the three months ended March 31, 2022 was attributable to broad market movements and improvements in fundamental performance at our portfolio companies. These increases in value were offset by ($0.5) million in net unrealized losses attributable to certain underlying portfolio companies that havehad underlying credit or fundamental performance concerns resulting in a risk rating of Grade 3, 4, or 5 on our investment performance risk rating scale that were still held as of March 31,June 30, 2022.
For the three months ended March 31,June 30, 2023 and 2022, our foreign currency forward contracts had $0.1($3.3) million and $1.3 million of net change in unrealized gain (loss), respectively. For the six months ended June 30, 2023 and 2022, our foreign currency forward contracts had ($0.5)3.2) million and $0.8 million of net change in unrealized gain (loss), respectively.
Net Increase (Decrease) in Net Assets Resulting from Operations
For the three months ended March 31,June 30, 2023 and 2022, the net increase (decrease) in net assets resulting from operations was $29.1$21.6 million and $10.3$6.4 million, respectively. Based on the weighted average shares of common stock outstanding for the three months ended March 31,June 30, 2023 and 2022, our per share net increase (decrease) in net assets resulting from operations was $0.38$0.25 and $0.27,$0.12, respectively.
For the six months ended June 30, 2023 and 2022, the net increase (decrease) in net assets resulting from operations was $50.6 million and $16.7 million, respectively. Based on the weighted average shares of common stock outstanding for the six months ended June 30, 2023 and 2022, our per share net increase (decrease) in net assets resulting from operations was $0.62 and $0.37, respectively.
74
The $18.8$15.2 million increaseand $33.9 million increases during the three and six months ended March 31,June 30, 2023, as compared to the three and six months ended June 30, 2022, respectively, is primarily the result of increased net investment income due to the significant portfolio growth and increases in effective interest rates on the portfolio as a result of the rising interest rate environment and increases in net unrealized mark-to-market gains on investments during the three and six months ended March 31,June 30, 2023.
68
Liquidity and Capital Resources
We generate cash primarily from (i) the net proceeds of private offerings, (ii) cash flows from our operations, and (iii) borrowings under our existing leverage facilities and any financing arrangements we may enter into in the future. These financings may come in the form of borrowings from banks and issuances of senior securities. Our primary uses of cash are for (i) investments in portfolio companies and other investments to comply with certain portfolio diversification requirements, (ii) the cost of operations (including paying MC Advisors and reimbursements to MC Management), (iii) debt service of any borrowings, (iv) share repurchases under our share repurchase program and (v) cash distributions to our stockholders.
As of March 31,June 30, 2023, we had $4.3$10.2 million in cash, $20.8$39.6 million in restricted cash at MC Income Plus Financing SPV LLC (the “SPV”), $2.8$5.1 million in restricted cash at MC Income Plus Financing SPV II LLC (the “SPV II”), $8.6$13.6 million in restricted cash at Monroe Capital Income Plus ABS Funding, LLC (the “2022 Issuer”). Additionally, we had $253.5$346.5 million debt outstanding on our Credit Facility, $151.9$150.0 million debt outstanding on our Term Loan, and $306.0 million debt outstanding on our 2022 ABS, and $83.1 million debt outstanding on our Short-Term Borrowings (as defined below). We had $196.5$103.5 million available for additional borrowings on our revolving credit facility, subject to borrowing base availability. See “Borrowings” below for additional information.
In accordance with the 1940 Act, we are permitted to borrow amounts such that our asset coverage ratio, as defined in the 1940 Act, is at least 150% after such borrowing. As of March 31,June 30, 2023 and December 31, 2022, our asset coverage ratio based on aggregate borrowings outstanding was 221%207% and 199%, respectively.
Cash Flows
For the threesix months ended March 31,June 30, 2023 and 2022, we experienced a net increase (decrease) in cash and restricted cash of ($15.6)$16.1 million and $1.5$39.1 million, respectively. For the threesix months ended March 31,June 30, 2023 and 2022, operating activities used $38.0$244.1 million and $48.5$144.5 million of cash, respectively, primarily as a result of purchases of portfolio investments, partially offset by principal repayments on and sales of portfolio investments and net investment income. During the threesix months ended March 31,June 30, 2023 and 2022, we generated $22.4$260.2 million and $50.0$183.6 million from financing activities, primarily as a result of net borrowings on our debt facilities and the proceeds from issuance of common stock, partially offset by distributions to stockholders.
Capital Resources
As a BDC, we distribute substantially all of our net income to our stockholders and have an ongoing need to raise additional capital for investment purposes. We intend to generate additional cash primarily from future offerings of securities, including our current Second Private Offering and any subsequent offerings, future borrowings and cash flows from operations, including income earned from investments in our portfolio companies. On both a short-term and long-term basis, our primary use of funds will be to invest in portfolio companies, fund share repurchases under our share repurchase program and make cash distributions to our stockholders. We may also use available funds to repay outstanding borrowings.
As a BDC, we are generally not permitted to issue and sell our common stock at a price below net asset value (“NAV”) per share. We may, however, sell our common stock, or warrants, options or rights to acquire our common stock, at a price below the then-current NAV per share of our common stock if our board of directors (the “Board”), including our independent directors, determines that such sale is in the best interests of us and our stockholders, and if our stockholders have approved such sales. As of March 31,June 30, 2023 and December 31, 2022, we had 83,765,46292,338,550 and 74,533,202 shares outstanding, respectively.
69
Distributions
Distributions to common stockholders are recorded on the applicable record date. The amount, if any, to be distributed to common stockholders is determined by our Board at least quarterly and is generally based upon our earnings estimated by management. Net realized capital gains, if any, are generally distributed at least annually.
75
The determination of the tax attributes for our distributions is made annually, based upon our taxable income for the full year and distributions paid for the full year. Ordinary dividend distributions from a RIC do not qualify for the preferential tax rate on qualified dividend income from domestic corporations and qualified foreign corporations, except to the extent that the RIC received the income in the form of qualifying dividends from domestic corporations and qualified foreign corporations. The tax attributes for distributions will generally include both ordinary income and capital gains, but may also include qualified dividends or return of capital. Distributions to stockholders for the three and six months ended March 31,June 30, 2023, and 2022, totaled $18.6$24.2 million ($0.250.28 per share) and $7.3$42.8 million ($0.53 per share), respectively. Distributions to stockholders for the three and six months ended June 30, 2022 totaled $10.2 million ($0.20 per share) and $17.5 million ($0.40 per share), respectively. The tax character of such distributions is determined at the end of the fiscal year.
We have adopted a DRIP that provides for the reinvestment of dividends and other distributions on behalf of its stockholders that elect to participate in such plan. As a result, if we declare a dividend or distribution, our stockholders’ cash distributions will only be reinvested in additional shares of our common stock if a stockholder specifically “opts in” to the DRIP at least ten (10) days prior to the record date fixed by our Board. Shares issued under the DRIP will be issued at a price per share equal to the NAV per share as of the last day of our fiscal quarter immediately preceding the date that the distribution was declared. See Note 9 to our consolidated financial statements for additional information on our distributions.
Borrowings
The Company’s outstanding debt as of March 31,June 30, 2023 and December 31, 2022 was as follows (in thousands):
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|
| As of March 31, 2023 |
|
| As of December 31, 2022 |
|
| As of June 30, 2023 |
|
| As of December 31, 2022 |
| ||||||||||||||||||||||||||
|
| Total |
| | |
| | |
| Total |
| | |
| | |
|
| Total |
| | |
| | |
| Total |
| | |
| | |
| ||||
| | Aggregate | | | | | | | | Aggregate | | | | | | | | | Aggregate | | | | | | | | Aggregate | | | | | | | | ||||
| | Principal | | | | | | | | Principal | | | | | | | | | Principal | | | | | | | | Principal | | | | | | | | ||||
| | Amount | | Principal | | | | | Amount | | Principal | | | | | | Amount | | Principal | | | | | Amount | | Principal | | | | | ||||||||
| | Committed/ | | Amount | | Carrying | | Committed/ | | Amount | | Carrying | | | Committed/ | | Amount | | Carrying | | Committed/ | | Amount | | Carrying | | ||||||||||||
| | Outstanding (1) | | Outstanding | | Value | | Outstanding (1) | | Outstanding | | Value | | | Outstanding (1) | | Outstanding | | Value | | Outstanding (1) | | Outstanding | | Value | | ||||||||||||
Credit Facility | | $ | 450,000 | | $ | 253,500 | | $ | 251,413 | (2) | $ | 450,000 | | $ | 357,400 | | $ | 354,904 | (2) | | $ | 450,000 | | $ | 346,500 | | $ | 344,800 | (2) | $ | 450,000 | | $ | 357,400 | | $ | 354,904 | (2) |
Term Loan | |
| 151,886 | |
| 151,886 | |
| 150,445 | (3) | | 100,000 | |
| 100,000 | |
| 98,953 | (3) | |
| 149,960 | |
| 149,960 | |
| 148,650 | (3) | | 100,000 | |
| 100,000 | |
| 98,953 | (3) |
2022 ABS | |
| 306,000 | (4) | | 306,000 | |
| 297,825 | (5) | | 306,000 | (4) | | 306,000 | |
| 297,629 | (5) | |
| 306,000 | (4) | | 306,000 | |
| 298,813 | (5) | | 306,000 | (4) | | 306,000 | |
| 297,629 | (5) |
Short-Term Borrowings | | | 83,088 | | | 83,088 | | | 83,088 | (6) | | — | | | — | | | — | | |||||||||||||||||||
Total | | $ | 907,886 | | $ | 711,386 | | $ | 699,683 | | $ | 856,000 | | $ | 763,400 | | $ | 751,486 | | | $ | 989,048 | | $ | 885,548 | | $ | 875,351 | | $ | 856,000 | | $ | 763,400 | | $ | 751,486 | |
| (1) | Represents the total aggregate amount committed or outstanding, as applicable, under such instrument. |
| (2) | Represents the aggregate principal amount outstanding of the Credit Facility (as defined below), less unamortized debt issuance costs. As of |
| (3) | Represents the aggregate principal amount outstanding of the Term Loan (as defined below), less unamortized debt issuance costs. As of |
| (4) | As of both |
| (5) | Represents the aggregate principal amount outstanding of the 2022 ABS (as defined below), less unamortized debt issuance costs. As of |
| (6) | Represents the aggregate principal amount outstanding of the Short-Term Borrowings (as defined below). As of June 30, 2023, the total unamortized debt issuance costs were zero. |
7076
Revolving Credit Facility: We have a $450.0 million senior secured revolving credit facility (the “Credit Facility”) with KeyBank National Association, as agent, through our wholly-owned subsidiary, the SPV. Our ability to borrow under the Credit Facility is subject to certain financial and restrictive covenants as well as availability under the borrowing base, which permits us to borrow up to 72% of the principal balance of our portfolio company investments depending on the type of investment, subject to a maximum advance rate on the portfolio of 67%. Under the terms of the Credit Facility, the SPV is permitted to reinvest available cash and make new borrowings under the Credit Facility through July 16, 2024. The maturity date of the Credit Facility is July 16, 2026. Distributions from the SPV to us are limited by the terms of the Credit Facility, which generally allows for the distribution of net interest income pursuant to a waterfall quarterly during the reinvestment period. As of March 31,June 30, 2023 and December 31, 2022, the fair value of our investments held in the SPV as collateral for the Credit Facility was $671.1$759.7 million and $691.2 million, respectively, and these investments are identified on the accompanying consolidated schedules of investments. As of March 31,June 30, 2023 and December 31, 2022, we had outstanding borrowings under the Credit Facility of $253.5$346.5 million and $357.4 million, respectively.
On May 26, 2023, the Credit Facility was amended to, among other things, replace LIBOR with SOFR as the base rate. During the reinvestment period, borrowings under the Credit Facility bear interest at an annual rate of LIBORSOFR (one or three month, at the SPV’s option and subject to a LIBORSOFR minimum of 0.50%) plus a margin ranging from 2.75% to a maximum of 3.00%, depending on the level of utilization of the facility and the number of obligors of eligible loans pledged as collateral in the SPV. After the reinvestment period, borrowings under the Credit Facility bear interest at an annual rate of LIBORSOFR plus 3.25%. In addition to the stated interest rate on borrowings, the SPV is required to pay an unused commitment fee of (i) 0.50% per annum on any unused portion of the Credit Facility when the outstanding borrowings are less than or equal to 60% of the facility amount and (ii) 0.35% per annum on any unused portion of the Credit Facility when the outstanding borrowings are greater than 60% of the facility amount. As of March 31,June 30, 2023 and December 31, 2022, the outstanding borrowings were accruing at a weighted average interest rate of 7.4%8.0% and 6.9%, respectively.
During the three months ended March 31, 2023 and 2022, we incurred financing costs of $11 thousand and $0.4 million, respectively, in conjunction with the Credit Facility, which have been capitalized within unamortized deferred financing costs and are amortized into interest and other debt financing expenses over the life of the loan.
Term Loan: On December 20, 2022, we entered into a senior term credit facility (the “Term Loan”) with KeyBank National Association, as lead arranger and administrative agent, through a special purpose wholly-owned subsidiary, MC Income Plus Financing SPV II (the “SPV II”) as borrower. The Term Loan initially allowed SPV II to borrow an aggregate principal amount of $100.0 million, and included an accordion feature which allows the us, under certain circumstances, to increase the total size of the facility upon request to the administrative agent and with consent of one or more additional lenders. On February 3, 2023, we increased the facility amount pursuant to the accordion feature of the Term Loan from $100.0 million of aggregate commitments to $155.0 million of aggregate commitments and we borrowed up to the new aggregate commitments under the Term Loan. As of March 31,June 30, 2023 and December 31, 2022, we had outstanding borrowings under the Term Loan of $151.9$150.0 million and $100.0 million, respectively. As of March 31,June 30, 2023 and December 31, 2022 the fair value of our investments held in SPV II as collateral for the Term Loan was $217.7$212.4 million and $141.4 million, respectively, and these investments are identified on the accompanying consolidated schedules of investments.
Borrowings under the Term Loan bear interest at Adjusted Term SOFR (subject to a SOFR minimum of 0.50%) plus an applicable margin rate of 2.40% per annum during the initial period, December 20, 2022 through December 20, 2025, and 3.40% per annum during the amortization period, December 21, 2025 through December 20, 2026. The Term Loan matures on December 20, 2026, unless sooner terminated in accordance with its terms. As of March 31,June 30, 2023 and December 31, 2022, the outstanding borrowings were accruing at a weighted average interest rate of 7.1%7.6% and 6.7%, respectively.
During the three months ended March 31, 2023, we incurred financing costs of $0.5 million in conjunction with the Term Loan, which have been capitalized within unamortized deferred financing costs and are amortized into interest and other debt financing expenses over the life of the loan.
Under the terms of the Term Loan, pursuant to a monthly waterfall and subject to the satisfaction of certain coverage tests and portfolio quality tests, SPV II is permitted to reinvest 25% of principal proceeds during the initial period, with the remaining 75% applied to prepay the Term Loan. During the amortization period, pursuant to a monthly waterfall, 100% of principal proceeds must be applied to prepay the Term Loan. The Term Loan contains representations and warranties and affirmative and negative covenants customary for secured financings of this type. The Term Loan also contains customary events of default (subject to certain grace periods, as applicable), including but not limited to the nonpayment of principal, interest or fees, breach of covenants, voluntary or involuntary bankruptcy proceedings and change of control of the borrower.
7177
Asset-Backed Securitization: On April 7, 2022, we completed a $425.0 million asset-backed securitization (the “2022 ABS”). The notes offered in the 2022 ABS were issued by the 2022 Issuer, a wholly-owned subsidiary, and are secured by a diversified portfolio of senior secured loans. The transaction was executed through a private placement of $261.4 million of Class A Senior Secured Notes, which bear interest at 4.05% (the “Class A Notes”), $44.6 million of Class B Senior Secured Notes, which bear interest at 5.15% (the “Class B Notes”) and $36.1 million of Class C Senior Secured Notes, which bear interest at 7.75% (the “Class C Notes” and collectively with the Class A Notes and the Class B Notes, the “Secured 2022 Notes”), and $82.9 million of Subordinated Notes, which do not bear interest (the “Subordinated 2022 Notes” and, together with the Secured 2022 Notes, the “2022 Notes”). We retained all of the Class C Notes and the Subordinated 2022 Notes. The Class A Notes and the Class B Notes are included as debt on the accompanying consolidated statements of assets and liabilities. As of both March 31,June 30, 2023 and December 31, 2022, the Class C and Subordinated Notes were eliminated in consolidation.
Through April 22, 2024, the 2022 Issuer is permitted to use all principal collections received on the underlying collateral to purchase new collateral under the direction of MC Advisors, in its capacity as collateral manager of the 2022 Issuer, in accordance with our investment strategy and subject to customary conditions set forth in the documents governing the 2022 ABS, allowing us to maintain the initial leverage in the 2022 ABS. The 2022 Notes are due on April 30, 2032.
As of March 31,June 30, 2023 and December 31, 2022, the fair value of our investments held in the 2022 Issuer as collateral was $421.2$417.2 million and $410.2 million, respectively, and these investments are identified on the accompanying consolidated schedule of investments.
Distributions from the 2022 Issuer to us are limited by the terms of the indenture governing the 2022 ABS, which generally allows for the payment of interest on the Secured 2022 Notes and the distribution of remaining net interest income to the holders of the Subordinated Notes pursuant to a waterfall quarterly during the reinvestment period.
Short-Term Borrowings: To finance the purchase of certain investments, we may enter into participation agreements for par/near par trades with a third-party counterparty, whereby we simultaneously agree to sell an investment and re-purchase the same investment back at a premium within a specified period of time, generally not to exceed 60-days from the date it was sold (each such transaction a “Short-Term Borrowing”). The amount, interest rate and terms of these Short-Term Borrowings are negotiated on a transaction-by transaction basis. Each transaction is secured by an interest in an underlying asset which is participated or assigned to the counterparty for the duration of the transaction.
We account for our Short-Term Borrowings as a type of secured borrowing under ASC Topic 860 – Transfers and Servicing and continue to present the participated investment as an asset and the obligation to repurchase the investment as a liability within debt on the consolidated statements of assets and liabilities. Interest income earned on investments participated under the Short-Term Borrowings and financing charges associated with the Short-Term Borrowings are included within interest income and interest and other debt financing expenses, respectively, on the consolidated statements of operations. Accrued interest receivable on investments and accrued financing charges on the Short-Term Borrowings are included within interest and dividend receivable and interest payable, respectively, on the consolidated statements of assets and liabilities.
As of June 30, 2023, we had $83.1 million Short-Term Borrowings with Macquarie Bank Limited (“Macquarie”). The carrying value of the participated investments under Short-Term Borrowings was $83.1 million as of June 30, 2023. As of June 30, 2023, the Short-Term Borrowings were accruing at a weighted average interest rate of 8.4%.
Related Party Transactions
We have a number of business relationships with affiliated or related parties, including the following:
| ● | We have an Investment Advisory Agreement with MC Advisors, an investment advisor registered with the SEC, to manage our investing activities. We pay MC Advisors a fee for its services under the Investment Advisory Agreement consisting of two components — a base management fee and an incentive fee. See Note 6 to our consolidated financial statements and “Significant Accounting Estimates and Critical Accounting Policies – Capital Gains Incentive Fee” for additional information. |
78
| ● | We have an Administration Agreement with MC Management to provide us with the office facilities and administrative services necessary to conduct our day-to-day operations. See Note 6 to our consolidated financial statements for additional information. |
| ● | Theodore L. Koenig, our Chief Executive Officer and Chairman of our Board is also a manager of MC Advisors and the Chairman and Chief Executive Officer of MC Management. Lewis W. Solimene, Jr., our Chief Financial Officer and Chief Investment Officer and is also a managing director of MC Management. |
| ● | We have a license agreement with Monroe Capital LLC, under which Monroe Capital LLC has agreed to grant us a non-exclusive, royalty-free license to use the name “Monroe Capital” for specified purposes in our business. |
In addition, we have adopted a formal code of ethics that governs the conduct of MC Advisors’ officers, directors and employees. Our officers and directors also remain subject to the duties imposed by both the 1940 Act and the Maryland General Corporation Law.
72
Commitments and Contingencies and Off-Balance Sheet Arrangements
As of March 31,June 30, 2023 and December 31, 2022, we had outstanding commitments to fund investments under undrawn revolvers, delayed draw commitments and subscription agreements totaling $280.5$289.2 million and $319.2 million, respectively. We believe that our available cash balances and/or ability to draw on the Credit Facility, make Short-Term Borrowings or raise additional leverage facilities provide sufficient funds to cover our unfunded commitments as of March 31,June 30, 2023. Additionally, we have entered into certain contracts with other parties that contain a variety of indemnification provisions. Our maximum exposure under these arrangements is unknown. However, we have not experienced claims or losses pursuant to these contracts and believe the risk of loss related to such indemnification provisions to be remote.
Off-Balance Sheet Arrangements
Other than contractual commitments and other legal contingencies incurred in the normal course of our business, we do not have any off-balance sheet financings or liabilities.
Market Trends
We have identified the following general trends that may affect our business:
Target Market: We believe that small and middle-market companies in the United States with annual revenues between $10.0 million and $2.5 billion represent a significant growth segment of the U.S. economy and often require substantial capital investments to grow. Middle-market companies have generated a significant number of investment opportunities for investment funds managed or advised by Monroe Capital, and we believe that this market segment will continue to produce significant investment opportunities for us.
Specialized Lending Requirements: We believe that several factors render many U.S. financial institutions ill-suited to lend to U.S. middle-market companies. For example, based on the experience of our management team, lending to U.S. middle-market companies (1) is generally more labor intensive than lending to larger companies due to the smaller size of each investment and the fragmented nature of information for such companies, (2) requires due diligence and underwriting practices consistent with the demands and economic limitations of the middle-market and (3) may also require more extensive ongoing monitoring by the lender.
Demand for Debt Capital: We believe there is a large pool of uninvested private equity capital for middle-market companies. We expect private equity firms will seek to leverage their investments by combining equity capital with senior secured loans and mezzanine debt from other sources, such as us.
79
Competition from Other Lenders: We believe that many traditional bank lenders, in recent years, de-emphasized their service and product offerings to middle-market businesses in favor of lending to large corporate clients and managing capital market transactions. In addition, many commercial banks face significant balance sheet constraints as they seek to build capital and meet future regulatory capital requirements. These factors may result in opportunities for alternative funding sources to middle-market companies and therefore drive increased new investment opportunities for us. Conversely, there has been a significant amount of capital raised over the past several years dedicated to middle market lending which has increased competitive pressure in the BDC and investment company marketplace for senior and subordinated debt which in turn could result in lower yields and weaker financial covenants for new assets.
Pricing and Deal Structures: We believe that the volatility in global markets over the last several years and current macroeconomic issues including changes in bank regulations for middle-market banks has reduced access to, and availability of, debt capital to middle-market companies, causing a reduction in competition and generally more favorable capital structures and deal terms. Sizable recent capital raises in the private debt marketplace have created significantly increased competition over the last few years, reducing available pricing and creating less favorable capital structures; however, we believe that current market conditions for our target market may continue to create favorable opportunities to invest at attractive risk-adjusted returns.
73
Market Environment: We believe that middle market investments are attractive in the current uncertain market environment where inflationary pressures have reached historical highs and where we are enduring a rate-hiking regime. Directly originated middle market loans have demonstrated the ability to outperform competing asset classes through varying economic cycles including downturns and prior periods of monetary policy tightening. Through the global financial crisis, the rising rate environment in 2005-2006, market bottom in 2008 and the subsequent recovery period, as well as throughout the COVID-19 pandemic, middle market direct lending has historically generated considerable yield premium with more favorable capital structures for lenders, resulting in higher returns when compared to the market for U.S. high yield bonds and U.S. traded loans. (1) Middle market direct lending offers a natural hedge to rising rates with floating rate structures that benefit from higher interest rates. Further, we believe that middle market direct lending provides broad diversification, a mitigant to an environment where there is increased risk of default rate activity. We believe that direct lending volumes will continue outpacing syndicated loan transaction volumes due to capital requirements and liquidity constraints faced by banks and in the broadly syndicated markets. Since the fourth quarter of 2022, the volume of leveraged buyouts (“LBO”) financed in the direct lending market has been significantly higher than the volume of syndicated LBOs. Alongside retracting valuations, the middle market also saw a consistent trend toward lower leverage and loan-to-value structures coupled with increase spreads. (2) That said, we note that a softening macroeconomic environment, the lingering effect of inflationary pressure and supply chain disruption and elevated interest rates could result in increased default rates. If default rates become more prevalent, we would expect to experience decreased net interest income, lower yields and increased risk of credit loss. However, we believe that Monroe Capital’s scale, product suite, diversification, and strong historical recovery rate track record will continue to allow us to find attractive investment opportunities and navigate this uncertain market environment while generating attractive risk-adjusted returns.
| (1) | As of December 31, 2022. Credit Suisse for US Traded Loans represented by the Credit Suisse Leveraged Loan Index, Bloomberg Barclays Indices for US IG Credit. Cliffwater for Direct Lending by the Cliffwater Direct Lending Index (CDLI). ICE, Bank of America for US High Yield represented by the ICE BofA High Yield Index. |
| (2) | Refinitiv LPC’s 4Q22 Sponsored Middle Market Private Deals Analysis – January 2023. |
80
Recent Developments
Distributions: On AprilJuly 6, 2023, the Board of Directors (the “Board”) declared the following regular distributions:
| | | | | | | | | | |
Record Date |
| Payment Date |
| Amount Per Share |
| Payment Date |
| Amount Per Share | ||
April 17, 2023 | | June 30, 2023 | | $ | 0.09 | |||||
May 15, 2023 | | June 30, 2023 | |
| 0.09 | |||||
June 15, 2023 | | June 30, 2023 | |
| 0.09 | |||||
July 17, 2023 | | September 29, 2023 | | $ | 0.09 | |||||
August 15, 2023 | | September 29, 2023 | |
| 0.09 | |||||
September 15, 2023 | | September 29, 2023 | |
| 0.09 | |||||
Total regular dividends declared | | | | $ | 0.27 | | | | $ | 0.27 |
Additionally, on AprilJuly 6, 2023, the Board also declared a supplemental dividend of $0.01 per share, to stockholders of record as of the close of business on AprilJuly 17, 2023, payable on June 30,September 29, 2023.
Significant Accounting Estimates and Critical Accounting Policies
Revenue Recognition
We record interest and fee income on an accrual basis to the extent that we expect to collect such amounts. For loans and debt securities with contractual PIK interest, we do not accrue PIK interest if the portfolio company valuation indicates that such PIK interest is not collectible. We do not accrue as a receivable interest on loans and debt securities if we have reason to doubt our ability to collect such interest. Loan origination fees, original issue discount and market discount or premium are capitalized, and then we amortize such amounts using the effective interest method as interest income over the life of the investment. Upon the prepayment of a loan or debt security, any unamortized premium or discount or loan origination fees are recorded as interest income. We record prepayment premiums on loans and debt securities as interest income when we receive such amounts. Interest income is accrued based upon the outstanding principal amount and contractual terms of debt and preferred equity investments. Interest is accrued on a daily basis. We record fees on loans based on the determination of whether the fee is considered a yield enhancement or payment for a service. If the fee is considered a yield enhancement associated with a funding of cash on a loan, the fee is generally deferred and recognized into interest income using the effective interest method if captured in the cost basis or using the straight-line method if the loan is unfunded and therefore there is no cost basis. If the fee is not considered a yield enhancement because a service was provided, and the fee is payment for that service, the fee is deemed earned and recognized as fee income in the period the service is completed.
74
Dividend income on preferred equity securities is recorded as dividend income on an accrual basis to the extent that such amounts are payable by the portfolio company and are expected to be collected. Dividend income on common equity securities is recorded on the record date for private portfolio companies. Each distribution received from LLC and LP investments is evaluated to determine if the distribution should be recorded as dividend income or a return of capital. Generally, we will not record distributions from equity investments in LLCs and LPs as dividend income unless there are sufficient accumulated tax-basis earnings and profits in the LLC or LP prior to the distribution. Distributions that are classified as a return of capital are recorded as a reduction in the cost basis of the investment.
Valuation of Portfolio Investments
For periods prior to September 30, 2022, the Board determined the fair value of our investments. Pursuant to the new SEC Rule 2a-5 under the 1940 Act, on September 30, 2022 the Board designated MC Advisors as our valuation designee (the “Valuation Designee”). The Board is responsible for oversight of the Valuation Designee. The Valuation Designee has established a valuation committee to determine in good faith the fair value of our investments, based on input of the Valuation Designee’s management and personnel and independent valuation firms which are engaged at the direction of the valuation committee to assist in the valuation of certain portfolio investments lacking a readily available market quotation. The valuation committee determines fair values pursuant to a valuation policy approved by the Board and pursuant to a consistently applied valuation process.
81
Under the valuation policy, the Valuation Designee values investments for which market quotations are readily available and within a recent date at such market quotations. When doing so, the Valuation Designee determines whether the quote obtained is sufficient in accordance with generally accepted accounting principles in the United States of America (“GAAP”) to determine the fair value of the security. Debt and equity securities that are not publicly traded or whose market prices are not readily available or whose market prices are not regularly updated are valued at fair value as determined in good faith by the Valuation Designee. Because we expect that there will not be a readily available market for many of the investments in our portfolio, we expect to value many of our portfolio investments at fair value as determined in good faith by our Valuation Designee using a documented valuation policy and a consistently applied valuation process. Such determination of fair values may involve subjective judgments and estimates. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may differ significantly from the values that would have been used had a readily available market value existed for such investments, and the differences could be material. If we were required to liquidate a portfolio investment in a forced or liquidation sale, we could realize amounts that are different from the amounts presented and such differences could be material.
With respect to investments for which market quotations are not readily available, the Valuation Designee undertakes a multi-step valuation process each quarter, as described below:
| ● | the quarterly valuation process begins with each portfolio company or investment being initially evaluated and rated by the investment professionals of the Valuation Designee responsible for the credit monitoring of the portfolio investment; |
| ● | our Valuation Designee engages an independent valuation firm to conduct independent appraisals of a selection of investments for which market quotations are not readily available. We will consult with an independent valuation firm relative to each portfolio company at least once in every calendar year, but the independent appraisals are generally received quarterly for each investment; |
| ● | to the extent an independent valuation firm is not engaged to conduct an investment appraisal on an investment for which market quotations are not readily available, the investment will be valued by the Valuation Designee; |
| ● | preliminary valuation conclusions are then documented and discussed with the valuation committee of the Valuation Designee; |
| ● | the valuation conclusions are approved by the valuation committee of the Valuation Designee; and |
| ● | a report prepared by the Valuation Designee is presented to the Board quarterly to allow the Board to perform its oversight duties of the valuation process and the Valuation Designee. |
75
The Valuation Designee generally uses the income approach to determine fair value for loans where market quotations are not readily available, as long as it is appropriate. If there is deterioration in credit quality or a debt investment is in workout status, the Valuation Designee may consider other factors in determining the fair value, including the value attributable to the debt investment from the enterprise value of the portfolio company or the proceeds that would be received in a liquidation analysis. This liquidation analysis may also include probability weighting of alternative outcomes. the Valuation Designee generally considers the Company’s debt to be performing if the borrower is not in default, the borrower is remitting payments in a timely manner, the loan is in covenant compliance and the loan is otherwise not deemed to be impaired. In determining the fair value of the performing debt, the Valuation Designee considers fluctuations in current interest rates, the trends in yields of debt instruments with similar credit ratings, financial condition of the borrower, economic conditions and other relevant factors, both qualitative and quantitative. In the event that a debt instrument is not performing, as defined above, the Valuation Designee will evaluate the value of the collateral utilizing the same framework described above for a performing loan to determine the value of the debt instrument.
Under the income approach, discounted cash flow models are utilized to determine the present value of the future cash flow streams of our debt investments, based on future interest and principal payments as set forth in the associated loan agreements. In determining fair value under the income approach, the Valuation Designee also considers the following factors: applicable market yields and leverage levels, credit quality, prepayment penalties, the nature and realizable value of any collateral, the portfolio company’s ability to make payments, and changes in the interest rate environment and the credit markets that generally may affect the price at which similar investments may be made.
82
Under the market approach, the enterprise value methodology is typically utilized to determine the fair value of an investment. There is no one methodology to estimate enterprise value and, in fact, for any one portfolio company, enterprise value is generally best expressed as a range of values, from which the Valuation Designee derives a single estimate of enterprise value. In estimating the enterprise value of a portfolio company, the Valuation Designee analyzes various factors consistent with industry practice, including but not limited to original transaction multiples, the portfolio company’s historical and projected financial results, applicable market trading and transaction comparables, applicable market yields and leverage levels, the nature and realizable value of any collateral, the markets in which the portfolio company does business, and comparisons of financial ratios of peer companies that are public. Typically, the enterprise values of private companies are based on multiples of earnings before interest, income taxes, depreciation and amortization (“EBITDA”), cash flows, net income, revenues, or in limited cases, book value.
In addition, for certain debt investments, the Valuation Designee may base its valuation on indicative bid and ask prices provided by an independent third-party pricing service. Bid prices reflect the highest price that the Company and others may be willing to pay. Ask prices represent the lowest price that the Company and others may be willing to accept. The Valuation Designee generally use the midpoint of the bid/ask range as our best estimate of fair value of such investment.
As of March 31,June 30, 2023, our Valuation Designee determined, in good faith, the fair value of our investment portfolio in accordance with GAAP and our valuation procedures based on the facts and circumstances known by us at that time, or reasonably expected to be known at that time.
Net Realized Gain or Loss and Net Change in Unrealized Gain or Loss
We measure realized gain or loss by the difference between the net proceeds from the sale and the amortized cost basis of the investment, without regard to unrealized gain or loss previously recognized. Net change in unrealized gain or loss reflects the change in portfolio investment values during the reporting period, including any reversal of previously recorded unrealized gain or loss, when gain or loss is realized. Additionally, we do not isolate the change in fair value resulting from foreign currency exchange rate fluctuations from the changes in the fair values of the underlying investment. All fluctuations in fair value are included in net change in unrealized gain (loss) on investments on our consolidated statements of operations.
76
Capital Gains Incentive Fee
Pursuant to the terms of the Investment Advisory Agreement with MC Advisors, the incentive fee on capital gains earned on liquidated investments of our portfolio is determined and payable in arrears as of the end of each calendar year (or upon termination of the Investment Advisory Agreement). This fee equals 12.5% (reduced from 15.0% as a result of MC Advisors April 18, 2022 agreement to permanently waive a portion of the incentive fees starting on January 1, 2022) of our incentive fee capital gains (i.e., our realized capital gains on a cumulative basis from inception, calculated as of the end of the applicable period, net of all realized capital losses and unrealized capital depreciation on a cumulative basis), less the aggregate amount of any previously paid capital gains incentive fees. On a quarterly basis, we accrue for the capital gains incentive fee by calculating such fee as if it were due and payable as of the end of such period.
While the Investment Advisory Agreement with MC Advisors neither includes nor contemplates the inclusion of unrealized gains in the calculation of the capital gains incentive fee, pursuant to an interpretation of an American Institute for Certified Public Accountants Technical Practice Aid for investment companies, we include unrealized gains in the calculation of the capital gains incentive fee expense and related accrued capital gains incentive fee. This accrual reflects the incentive fees that would be payable to MC Advisors if our entire portfolio was liquidated at its fair value as of the balance sheet date even though MC Advisors is not entitled to an incentive fee with respect to unrealized gains unless and until such gains are actually realized.
During the three and six months ended March 31,June 30, 2023, we reversed $0.7 million and $13 thousand, respectively, of previously accrued capital gains incentive fees based on the performance of $0.7our portfolio. During the three and six months ended June 30, 2022, we reversed $0.9 million and $0.6 million, respectively, of previously accrued capital gains incentive fees based on the performance of our portfolio $0.1 million of which was payable to MC Advisors as a result of realized gains. The remaining $0.6 million, was based on unrealized appreciation, none of which was payable to MC Advisors underand the Investment Advisory Agreement.reduction in the incentive fee rate.
New Accounting Pronouncements
In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (“ASU 2020-04”). The amendments in ASU 2020-04 provide optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. The standard is effective as of March 12, 2020 through December 31, 2024. We did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the threesix months ended March 31,June 30, 2023.
83
ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
We are subject to financial market risks, including valuation risk, interest rate risk, currency risk and inflation and supply chain risk. The prices of securities held by us may decline in response to certain events, including those directly involving the companies we invest in; conditions affecting the general economy; overall market changes; legislative reform; local, regional, national or global political, social or economic instability, including related to the COVID-19 pandemic and rising inflation; and interest rate fluctuations.
Valuation Risk
Our investments may not have readily available market quotations (as such term is defined in Rule 2a-5), and those investments which do not have readily available market quotations are valued at fair value as determined in good faith by our Valuation Designee in accordance with our valuation policy. There is no single standard for determining fair value in good faith. As a result, determining fair value requires that judgment be applied to the specific facts and circumstances of each portfolio investment while employing a consistently applied valuation process for the types of investments we make. Due to the inherent uncertainty of determining the fair value of investments that do not have a readily available market value, the fair value of our investments may fluctuate from period to period, including as a result of the impact of the COVID-19 pandemic on the economy and financial and capital markets.period. Because of the inherent uncertainty of valuation, these estimated values may differ significantly from the values that would have been used had a ready market for the investments existed, and it is possible that the difference could be material.
In accordance with Rule 2a-5, our Board periodically assesses and manages material risks associated with the determination of the fair value of our investments.
77
Interest Rate Risk
The majority of the loans in our portfolio have floating interest rates and we expect that our loans in the future may also have floating interest rates. These loans are usually based on a floating LIBOR or SOFR and typically have interest rate re-set provisions that adjust applicable interest rates under such loans to current market rates on a monthly or quarterly basis. The majority of the loans in our current portfolio have interest rate floors that will effectively convert the loans to fixed rate loans in the event interest rates decrease. In addition, our Credit Facility and Term Loan have a floating interest rate provision, whereas our Secured 2022 Notes have fixed interest rates until maturity. We expect that other credit facilities into which we may enter in the future may also have floating interest rate provisions.
Assuming that the consolidated statement of assets and liabilities as of March 31,June 30, 2023 was to remain constant and that we took no actions to alter our existing interest rate sensitivity, the following table shows the annualized impact of hypothetical base rate changes in interest rates (in thousands):
| | | | | | | | | | | | | | | | | | |
|
| Increase |
| Increase |
| Net increase |
| Increase |
| Increase |
| Net increase | ||||||
| | (decrease) in | | (decrease) in | | (decrease) in net | | (decrease) in | | (decrease) in | | (decrease) in net | ||||||
Change in Interest Rates | | interest income | | interest expense | | investment income | | interest income | | interest expense | | investment income | ||||||
Down 25 basis points | | $ | (3,663) | | $ | (1,013) | | $ | (2,650) | | $ | (4,192) | | $ | (1,241) | | $ | (2,951) |
Up 100 basis points | |
| 14,808 | |
| 4,830 | |
| 9,978 | |
| 17,421 | |
| 5,232 | |
| 12,189 |
Up 200 basis points | |
| 29,440 | |
| 8,884 | |
| 20,556 | |
| 34,193 | |
| 10,196 | |
| 23,997 |
Up 300 basis points | |
| 44,065 | |
| 12,938 | |
| 31,127 | |
| 50,966 | |
| 15,161 | |
| 35,805 |
Although we believe that this analysis is indicative of our existing sensitivity to interest rate changes, it does not adjust for changes in the credit market, credit quality, the size and composition of the assets in our portfolio and other business developments, including borrowing under the Credit Facility, Term Loan or other borrowings that could affect net increase in net assets resulting from operations, or net income. Accordingly, we can offer no assurances that actual results would not differ materially from the analysis above.
We may in the future hedge against interest rate fluctuations by using standard hedging instruments such as futures, options and forward contracts to the extent permitted under the 1940 Act and applicable commodities laws. While hedging activities may insulate us against adverse changes in interest rates, they may also limit our ability to participate in the benefits of lower interest rates with respect to the investments in our portfolio with fixed interest rates or interest rate floors.
84
Currency Risk
We may also have exposure to foreign currencies (currently Canadian dollars and Australian dollars) related to certain investments. Such investments are translated into U.S. dollars based on the spot rate at each balance sheet date, exposing us to movements in the exchange rate. We may also enter into foreign currency forward contracts to mitigate foreign currency exposure. As of March 31,June 30, 2023, we had foreign currency forward contracts in place for CAD 34.033.2 million and AUD 17.059.1 million associated with future principal and interest payments on certain investments.
Inflation and Supply Chain Risk
Economic activity has continued to accelerate across sectors and regions. Nevertheless, due to global supply chain issues, geopolitical events, a rise in energy prices and strong consumer demand as economies continue to reopen, inflation is showing signs of acceleration in the U.S. and globally. Inflation is likely to continue in the near to medium-term, particularly in the U.S., with the possibility that monetary policy may tighten in response. Persistent inflationary pressures could affect our portfolio companies’ profit margins.
78
ITEM 4. CONTROLS AND PROCEDURES
Disclosure Controls and Procedures
In accordance with Rules 13a-15(b) and 15d-15(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), we, under the supervision and with the participation of our Chief Executive Officer and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures (as defined in Rule 13a-15(e) and Rule 15d-15(e) of the Exchange Act). Based on that evaluation, our management, including the Chief Executive Officer and Chief Financial Officer, concluded that, at the end of the period covered by our Annual Report on Form 10-K, our disclosure controls and procedures were effective and provided reasonable assurance that information required to be disclosed in our periodic SEC filings is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure. Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within the Company to disclose material information otherwise required to be set forth in the Company’s periodic reports.
Changes in Internal Control Over Financial Reporting
No change occurred in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) of the Exchange Act) during the three months ended March 31,June 30, 2023 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.
85
PART II
OTHER INFORMATION
Item 1. Legal Proceedings
Neither we, our subsidiaries nor our investment adviser is currently subject to any material legal proceedings.
Item 1A. Risk Factors
In addition to the other information set forth in this report, you should carefully consider the risk factors disclosed in our Annual Report on Form 10-K for the year ended December 31, 2022 filed with the SEC on March 15, 2023, which could materially affect our business, financial condition and/or operating results. The risks described in our Annual Report on Form 10-K are not the only risks facing us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially and adversely affect our business, financial condition and/or operating results. Other than as set forth below, there have been no material changes to the risk factors discussed in Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2022.
79
Our business and our portfolio companies may be susceptible to economic slowdowns or recessions and to risks related to bank impairments or failures.
Many of the portfolio companies in which we have invested or expect to make investments are likely to be susceptible to economic slowdowns or recessions and may be unable to repay our loans during such periods. Unfavorable economic conditions also could increase our funding costs, limit our access to the capital markets or result in a decision by lenders not to extend credit to us. These events could prevent us from increasing our investments and harm business, financial condition, operating results and prospects. In March 2023, the Federal Deposit Insurance Corporation (“FDIC”) took control of Silicon Valley Bank and Signature Bank and subsequently in May 2023 of First Republic Bank due to liquidity concerns and concerns have arisen regarding the stability of other banks and financial institutions. Also, the impairment or failure of one or more banks with whom the Company, its portfolio companies, and/or the Adviser transact may inhibit the ability of the Company or its portfolio companies to access depository accounts. In such cases, the Company may be forced to delay or forgo investments, resulting in lower Company performance. In the event of such a failure of a banking institution where the Company or one or more of its portfolio companies holds depository accounts, access to such accounts could be restricted and U.S. FDIC protection may not be available for balances in excess of amounts insured by the FDIC. In such instances, the Company and its affected portfolio companies would not recover such excess, uninsured amounts. To the extent that the Company or the portfolio companies are impacted, their ability to access existing cash, cash equivalents and investments, or to access existing or enter into new banking arrangements or facilities to service our portfolio companies, may be threatened.
The 1940 Act allows us to incur additional leverage, which could increase the risk of investing in us.
The 1940 Act generally prohibits us from incurring indebtedness unless immediately after such borrowing we have an asset coverage for total borrowings of at least 150% (i.e., the amount of our debt may not exceed 66.7% of the value of our total assets), if certain requirements are met, including approval by our Board and stockholders.
Our Board and MC Advisors, our initial stockholder, approved a proposal to adopt an asset coverage ratio of 150% in connection with our organization. Incurring additional indebtedness could increase the risk of investing in us.
86
Leverage is generally considered a speculative investment technique and may increase the risk of investing in our securities. Leverage magnifies the potential for loss on investments in our indebtedness and on invested equity capital. As we use leverage to partially finance our investments, you will experience increased risks of investing in our securities. If the value of our assets increases, then leveraging would cause the net asset value attributable to our common stock to increase more sharply than it would have had we not leveraged. Conversely, if the value of our assets decreases, leveraging would cause net asset value to decline more sharply than it otherwise would have had we not leveraged our business. Similarly, any increase in our income in excess of interest payable on the borrowed funds would cause our net investment income to increase more than it would without the leverage, while any decrease in our income would cause net investment income to decline more sharply than it would have had we not borrowed. Such a decline could negatively affect our ability to pay distributions, scheduled debt payments or other payments related to our securities. The effects of leverage would cause any decrease in net asset value for any losses to be greater than any increase in net asset value for any corresponding gains. If we incur additional leverage, stockholders will experience increased risks of investing in our common stock.
We maintain a revolving credit facility and term loan credit facility use other borrowed funds to make investments or fund our business operations, which exposes us to risks typically associated with leverage and increases the risk of investing in us.
We maintain a revolving credit facility and term loan credit facility and use other borrowed funds and may borrow additional money, which is generally considered a speculative investment technique. As a result:
| ● | our common stock is exposed to an increased risk of loss because a decrease in the value of our investments would have a greater negative impact on the value of our common stock than if we did not use leverage; |
| ● | if we do not appropriately match the assets and liabilities of our business, adverse changes in interest rates could reduce or eliminate the incremental income we make with the proceeds of any leverage; |
| ● | our ability to pay distributions on our common stock may be restricted if our asset coverage ratio, as provided in the 1940 Act, is not at least 150% and any amounts used to service indebtedness would not be available for such distributions; |
80
| ● | any credit facility is subject to periodic renewal by its lenders, whose continued participation cannot be guaranteed; |
| ● | our revolving credit facility and term loan credit facility with KeyBank National Association, as agent, is, and any other credit facility we may enter into would be, subject to various financial and operating covenants; and |
| ● | we bear the cost of issuing and paying interest on the revolving credit facility and term loan credit facility, which costs are entirely borne by our common stockholders. |
The following table illustrates the effect of leverage on returns from an investment in our common stock assuming various annual returns, net of expenses. The calculations in the table below are hypothetical and actual returns may be higher or lower than those appearing in the table below.
| | | | | | | | | | | | | | | | | | | | | | |
|
| Assumed Return on Our Portfolio |
| Assumed Return on Our Portfolio | | |||||||||||||||||
| | (Net of Expenses) (1) | | (Net of Expenses) (1) | | |||||||||||||||||
|
| ‑10% | | ‑5% | | 0% | | 5% | | 10% | |
| ‑10% | | ‑5% | | 0% | | 5% | | 10% | |
Corresponding return to common stockholder (2)(3) |
| ‑26.52 | % | ‑16.29 | % | ‑6.06 | % | 4.17 | % | 14.40 | % | |||||||||||
Corresponding return to common stockholder (2) (3) |
| ‑26.52 | % | ‑16.29 | % | ‑6.06 | % | 4.17 | % | 14.40 | % | |||||||||||
| (1) | The assumed return on our portfolio is required by regulation of the SEC to assist investors in understanding the effects of leverage and is not a prediction of, and does not represent, our projected or actual performance. |
| (2) | Assumes $1.5 billion in total assets, $789.7 million in debt outstanding, of which $763.4 million is senior securities outstanding, $754.9 million in net assets and an average cost of funds of 5.79%, which was the weighted average interest rate of borrowings on our revolving credit facility, term loan credit facility, and ABS Notes as of December 31, 2022. The interest rates on our revolving credit facility and term loan credit facility are variable rates. Actual interest payments may be different. |
| (3) | In order for us to cover our annual interest payments on indebtedness, we must achieve annual returns on our December 31, 2022 total portfolio assets of at least 2.96%. |
87
The interest rates of our revolving and term loan credit facilities and loans to our portfolio companies that extend beyond 2023 mightmay be subject to change based on recent regulatory changes, includingaffected by the discontinuation of LIBOR.transition away from LIBOR as a benchmark reference for interest rates.
The London Interbank Offered Rate (“LIBOR”), is thean index rate that has been historically used as a basic rate of interest used in lending transactions between banks on the London interbank market and has been widely used as a reference for setting the interest rate on loans globally. In July 2017, the United Kingdom’s Financial Conduct Authority (“FCA”) announced its intention to cease sustaining the LIBOR, by the end of 2021. As of January 1, 2023, USD LIBOR is available in five settings (overnight, one-month, three-month, six-month and 12-month). The ICE Benchmark Administration has stated that it will cease to publish all remainingceased providing overnight, one, three, six and twelve month USD LIBOR settingstenors immediately following their publication onafter June 30, 2023. In addition, the FCA now prohibits entities from using LIBORs, except in very limited circumstances.
In April 2018, the Federal Reserve Bank of New York began publishing its alternative rate, the Secured Overnight Financing Rate (“SOFR”). The Bank of England followed suit in April 2018 by publishing its proposed alternative rate, the Sterling Overnight Index Average (“SONIA”). Each of SOFR and SONIA significantly differ from LIBOR, both in each actual rate and how each rate is calculated,calculated. In the United States, the SOFR is the preferred alternative rate for LIBOR.
Most of our new investments are indexed to SOFR; however, we have certain contracts that were indexed to LIBOR. Certain contracts already had provisions to orderly transition away from LIBOR to an alternative replacement rate; however, other contracts, were renegotiated and therefore it is unclear whetheramended to replace LIBOR with an alternative reference rate. To the extent that any of our contracts do not have or were not amended to include adequate fallback provisions to replace LIBOR, these contracts were amended by operation of law to include a statutorily designated fallback to LIBOR pursuant to the Federal Adjustable Interest Rate (LIBOR) Act (the “LIBOR Act”) and when markets will adopt eitherrules thereunder. Under the Federal Reserve Board’s rules implementing certain provisions of the LIBOR Act (“Regulation ZZ”), on the LIBOR replacement date (the first London banking day after June 30, 2023), the Federal Reserve Board-selected benchmark replacement rate, based on SOFR and including any benchmark spread adjustment as provided by Regulation ZZ, automatically replaced references to overnight, one, three, six and twelve month USD LIBOR in all of our remaining contracts that did not mature before the LIBOR replacement date and did not contain adequate fallback language.
Following the replacement of LIBOR, some or all of our credit agreements with our portfolio companies may bear interest at a lower interest rate, which could have an adverse impact on the value and liquidity of our investment in these ratesportfolio companies and, as a result on our results of operations. Since SOFR is a relatively new market rate, there may be no established trading market for financial instruments when they are issued, and an established market may never develop or may not be liquid. Similarly, if SOFR does not prove to be widely accepted replacement for LIBOR.used, the price of investments referencing SOFR may be lower than those of investments indexed to indices that are more widely used.
As such, whenTransition away from LIBOR is discontinued, if a replacement rate is not widely agreed upon or if a replacement rate is significantly different from LIBOR, itcomplex and could cause a disruption in the credit markets generally. Such a disruption could have an adverse impact on the market value of and/or transferability of any LIBOR-linked securities, loans, and other financial obligations or extensions of credit held by or due to us or on our overall financial condition or results of operations. In addition, there can be no guarantee that SOFR or other LIBOR replacement rates will not be discontinued or fundamentally altered in a manner that is materially adverse to the interests of investors in financial instruments referencing SOFR. It is not possible to predict the effect of any of these developments, and any future initiatives to regulate, reform or change the manner of administration of SOFR or other LIBOR replacement rates could result in adverse consequences to the rate of interest payable and receivable on, market value of and market liquidity for LIBOR-based financial instruments.
Most of our new investments are indexed to SOFR; however, we have material contracts that are indexed to LIBOR. Certain contracts have an orderly market transition already in process; however, other contracts, will need to be renegotiated to replace LIBOR with an alternative reference rate. Following theinstruments referencing such replacement of LIBOR, some or all of our credit agreements with our portfolio companies may bear interest at a lower interest rate, which could have an adverse impact on the value and liquidity of our investment in these portfolio companies and, as a result on our results of operations.rates.
81
In addition, the transition from LIBOR to SOFR, SONIA or other alternative reference rates may also introduce operational risks in our accounting, financial reporting, loan servicing, liability management and other aspects of our business.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
On MarchMay 16, 2023, we issued 9,474,5008,321,086 shares of our common stock, par value $0.01 per share, at a price of $10.13$10.25 per share for proceeds of $95,976,682.$85,291,130.
The sale of shares of our common stock was made pursuant to subscription agreements entered into by us, on the one hand, and each of our investors, on the other hand. The issuance and sale of the shares of our common stock are exempt from the registration requirements of the Securities Act, pursuant to Section 4(a)(2) thereof and Regulation D or Regulation S thereunder, as applicable.
Except as previously reported by us in this Item 2 or on our current reports on Form 8-K, we did not sell any securities during the period covered by this Form 10-Q that were not registered under the Securities Act.
88
Item 3. Defaults Upon Senior Securities
None.
Item 4. Mine Safety Disclosures
None.
Item 5. Other Information
None.Rule 10b5-1 Trading Plans.
For the period covered by this Quarterly Report on Form 10-Q, no director or officer of the Company has entered into any (i) contract, instruction or written plan for the purchase or sale of securities of the registrant intended to satisfy the alternative defense conditions of Rule 10b5-1(c) under the Exchange Act or (ii) any non-Rule 10b5-1 trading arrangement. The Company has adopted insider trading policies and procedures governing the purchase, sale, and disposition of the Company’s securities by officers and directors of the Company that are reasonably designed to promote compliance with insider trading laws, rules and regulations.
8289
Item 6. Exhibits
Exhibit |
|
|
Number |
| Description of Document |
3.1 |
| |
| | |
3.2 |
| |
|
|
|
3.3 |
| |
| | |
3.4 | | |
| | |
10.1 | | |
|
|
|
31.1 |
| |
|
|
|
31.2 |
| |
|
|
|
32.1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Previously filed as an exhibit to amendment no. 1 to the registration Statement on Form 10 (File No. 000-55941) filed with the SEC on July 30, 2018. |
|
|
|
|
| Previously filed as an exhibit to the current report on Form 8-K filed with the SEC on December 7, 2018. |
|
|
| (4) |
| |
|
| Previously filed as an exhibit to the current report on Form 8-K filed with the SEC on April 29, 2022. |
| (5) | Previously filed as an exhibit to the current report on Form 8-K filed with the SEC on May 31, 2023. |
8390
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Date: | By | /s/ Theodore L. Koenig |
|
| Theodore L. Koenig |
|
| Chairman, Chief Executive Officer and Director |
|
| (Principal Executive Officer) |
|
| Monroe Capital Income Plus Corporation |
|
|
|
Date: | By | /s/ Lewis W. Solimene, Jr. |
|
| Lewis W. Solimene, Jr. |
|
| Chief Financial Officer and Chief Investment Officer |
|
| (Principal Financial and Accounting Officer) |
|
| Monroe Capital Income Plus Corporation |
8491