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MRCC Monroe Capital

Filed: 4 May 21, 4:51pm

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended March 31, 2021

 

OR

 

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

 

Commission file number: 814-00866

 

MONROE CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Maryland27-4895840
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
  
311 South Wacker Drive, Suite 6400
Chicago, Illinois
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
Common Stock, par value $0.001 per share

 MRCC

 The Nasdaq Global Select Market

 

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

 

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 x  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 filerxSmaller 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 x

 

As of May 3, 2021, the registrant had 21,303,540 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

TABLE OF CONTENTS

 

  Page
PART I. FINANCIAL INFORMATION3
   
Item 1.Consolidated Financial Statements3
   
 Consolidated Statements of Assets and Liabilities as of March 31, 2021 (unaudited) and December 31, 20203
   
 Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited)4
   
 Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2021 and 2020 (unaudited)5
   
 Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited)6
   
 Consolidated Schedules of Investments as of March 31, 2021 (unaudited) and December 31, 20207
   
 Notes to Consolidated Financial Statements (unaudited)21
   
Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations43
   
Item 3.Quantitative and Qualitative Disclosures About Market Risk60
   
Item 4.Controls and Procedures60
   
PART II. OTHER INFORMATION61
   
Item 1.Legal Proceedings61
   
Item 1A.Risk Factors61
   
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds63
   
Item 3.Defaults Upon Senior Securities63
   
Item 4.Mine Safety Disclosures63
   
Item 5.Other Information63
   
Item 6.Exhibits64
   
Signatures 65

 

2

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

  March 31, 2021  December 31, 2020 
  (unaudited)     
ASSETS        
Investments, at fair value:        
Non-controlled/non-affiliate company investments $372,493  $398,040 
Non-controlled affiliate company investments  107,819   109,715 
Controlled affiliate company investments  41,067   39,284 
Total investments, at fair value (amortized cost of: $565,821 and $596,103, respectively)  521,379   547,039 
Cash  7,723   6,769 
Restricted cash  8,165   25,657 
Unrealized gain on foreign currency forward contracts  221    
Interest receivable  5,944   4,606 
Other assets  1,041   1,052 
Total assets  544,473   585,123 
         
LIABILITIES        
Debt:        
Revolving credit facility  92,891   126,559 
2023 Notes     109,000 
2026 Notes  130,000    
SBA debentures payable  86,900   115,000 
Total debt  309,791   350,559 
Less: Unamortized deferred financing costs  (7,715)  (7,052)
Total debt, less unamortized deferred financing costs  302,076   343,507 
Interest payable  1,809   2,764 
Unrealized loss on foreign currency forward contracts     113 
Management fees payable  2,334   1,978 
Incentive fees payable  193    
Accounts payable and accrued expenses  1,863   2,327 
Directors' fees payable  35    
Total liabilities  308,310   350,689 
Net assets $236,163  $234,434 
         
Commitments and contingencies (See Note 11)        
         
ANALYSIS OF NET ASSETS        
Common stock, $0.001 par value, 100,000 shares authorized, 21,304 and 21,304 shares issued and outstanding, respectively $21  $21 
Capital in excess of par value  294,897   294,897 
Accumulated undistributed (overdistributed) earnings  (58,755)  (60,484)
Total net assets $236,163  $234,434 
         
Net asset value per share $11.08  $11.00 

 

See Notes to Consolidated Financial Statements.

 

3

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

  Three months ended March 31, 
  2021  2020 
Investment income:        
Non-controlled/non-affiliate company investments:        
Interest income $8,233  $12,347 
Payment-in-kind interest income  654   71 
Dividend income  20   16 
Fee income  477   198 
Total investment income from non-controlled/non-affiliate company investments  9,384   12,632 
Non-controlled affiliate company investments:        
Interest income  1,562   190 
Payment-in-kind interest income  1,025   1,005 
Dividend income  42   25 
Total investment income from non-controlled affiliate company investments  2,629   1,220 
Controlled affiliate company investments:        
Dividend income  1,200   1,150 
Total investment income from controlled affiliate company investments  1,200   1,150 
Total investment income  13,213   15,002 
         
Operating expenses:        
Interest and other debt financing expenses  4,453   4,830 
Base management fees  2,334   2,551 
Incentive fees  830    
Professional fees  226   215 
Administrative service fees  356   338 
General and administrative expenses  260   231 
Directors' fees  35   35 
Expenses before incentive fee waiver  8,494   8,200 
Incentive fee waiver  (637)   
Total expenses, net of incentive fee waiver  7,857   8,200 
Net investment income before income taxes  5,356   6,802 
Income taxes, including excise taxes  30   20 
Net investment income  5,326   6,782 
         
Net gain (loss):        
Net realized gain (loss):        
Non-controlled/non-affiliate company investments  58   94 
Non-controlled affiliate company investments  (250)   
Extinguishment of debt  (2,774)   
Foreign currency forward contracts  (38)  (4)
Foreign currency and other transactions  (14)  (15)
Net realized gain (loss)  (3,018)  75 
         
Net change in unrealized gain (loss):        
Non-controlled/non-affiliate company investments  4,641   (20,355)
Non-controlled affiliate company investments  (1,802)  (13,707)
Controlled affiliate company investments  1,783   (11,087)
Foreign currency forward contracts  334   98 
Foreign currency and other transactions  (209)  1,344 
Net change in unrealized gain (loss)  4,747   (43,707)
         
Net gain (loss)  1,729   (43,632)
         
Net increase (decrease) in net assets resulting from operations $7,055  $(36,850)
         
Per common share data:        
Net investment income per share - basic and diluted $0.25  $0.33 
Net increase (decrease) in net assets resulting from operations per share - basic and diluted $0.33  $(1.81)
Weighted average common shares outstanding - basic and diluted  21,304   20,445 

 

See Notes to Consolidated Financial Statements.

 

4

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

 

  Common Stock     Accumulated
undistributed
    
  Number of
shares
  Par
value
  Capital in excess
of par value
  (overdistributed)
earnings
  Total
net assets
 
Balances at December 31, 2019  20,445  $20  $288,850  $(39,513) $249,357 
Net investment income           6,782   6,782 
Net realized gain (loss)           75   75 
Net change in unrealized gain (loss)           (43,707)  (43,707)
Distributions to stockholders           (7,155)  (7,155)
Balances at March 31, 2020  20,445  $20  $288,850  $(83,518) $205,352 
                     
Balances at December 31, 2020  21,304  $21  $294,897  $(60,484) $234,434 
Net investment income           5,326   5,326 
Net realized gain (loss)           (3,018)  (3,018)
Net change in unrealized gain (loss)           4,747   4,747 
Distributions to stockholders           (5,326)  (5,326)
Balances at March 31, 2021  21,304  $21  $294,897  $(58,755) $236,163 

 

See Notes to Consolidated Financial Statements.

 

5

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

  Three months ended March 31, 
  2021  2020 
Cash flows from operating activities:        
Net increase (decrease) in net assets resulting from operations $7,055  $(36,850)
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  192   (94)
Net realized (gain) loss on extinguishment of debt  2,774    
Net realized (gain) loss on foreign currency forward contracts  38   4 
Net realized (gain) loss on foreign currency and other transactions  14   15 
Net change in unrealized (gain) loss on investments  (4,622)  45,149 
Net change in unrealized (gain) loss on foreign currency forward contracts  (334)  (98)
Net change in unrealized (gain) loss on foreign currency and other transactions  209   (1,344)
Payment-in-kind interest income  (1,679)  (1,076)
Net accretion of discounts and amortization of premiums  (352)  (344)
Purchases of investments  (43,744)  (71,088)
Proceeds from principal payments, sales of investments and settlement of forward contracts  75,827   52,843 
Amortization of deferred financing costs  601   484 
Changes in operating assets and liabilities:        
Interest receivable  (1,338)  (879)
Other assets  11  (264)
Interest payable  (955)  (956)
Management fees payable  356   (200)
Incentive fees payable  193   (1,374)
Accounts payable and accrued expenses  (464)  (320)
Directors' fees payable  35   35 
Net cash provided by (used in) operating activities  33,817   (16,357)
         
Cash flows from financing activities:        
Borrowings on revolving credit facility  113,600   51,700 
Repayments of revolving credit facility  (147,450)  (38,600)
Repayment of 2023 Notes  (109,000)   
Proceeds from 2026 Notes  130,000    
Repayment of SBA debentures  (28,100)   
Payments of deferred financing costs  (4,038)   
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively  (5,326)  (7,155)
Net cash provided by (used in) financing activities  (50,314)  5,945 
         
Net increase (decrease) in Cash and Restricted cash  (16,497)  (10,412)
Effect of foreign currency exchange rates  (41)  (19)
Cash and Restricted cash, beginning of period  32,426   29,643 
Cash and Restricted cash, end of period $15,888  $19,212 
         
Supplemental disclosure of cash flow information:        
Cash interest paid during the period $4,774  $5,294 
Cash paid (refund received) for income taxes, including excise taxes during the period $400  $85 

 

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, 2021  December 31, 2020 
Cash $7,723  $6,769 
Restricted cash  8,165   25,657 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows $15,888  $32,426 

 

  March 31, 2020  December 31, 2019 
Cash $9,320  $2,234 
Restricted cash  9,892   27,409 
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows $19,212  $29,643 

 

See Notes to Consolidated Financial Statements.

              

6

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest Rate  

Acquisition

Date (c) 

 Maturity  Principal  

Amortized

Cost

  

Fair

Value (d)

  % of
Net Assets (e)
 
Non-Controlled/Non-Affiliate Company Investments                        
Senior Secured Loans                        
Automotive                        
Hastings Manufacturing Company  L+7.75% 8.75% 4/24/2018 4/24/2023  2,783  $2,757  $2,783  1.2%
Magneto & Diesel Acquisition, Inc.  L+6.05% 7.10% 12/18/2018 12/18/2023  4,876   4,826   4,876  2.1%
Magneto & Diesel Acquisition, Inc.  L+6.05% 7.10% 7/6/2020 12/18/2023  1,918   1,888   1,944  0.8%
Magneto & Diesel Acquisition, Inc. (Revolver) (f)  L+5.50% 6.55% 12/18/2018 12/18/2023  500        0.0%
            10,077   9,471   9,603  4.1%
Banking, Finance, Insurance & Real Estate                        
J2 BWA Funding, LLC (Delayed Draw) (f) (g) (h)  n/a 9.00% 12/24/2020 12/24/2026  2,750   267   265  0.1%
Liftforward SPV II, LLC (g)  L+10.75% 11.25% 11/10/2016 6/30/2021  1,586   1,586   1,495  0.6%
NCBP Property, LLC (g)  L+9.50% 10.50% 12/18/2020 12/16/2022  1,950   1,934   1,942  0.8%
Oceana Australian Fixed Income Trust (g) (i) (j)  n/a 11.50% 2/25/2021 2/25/2026  8,165   8,460   8,165  3.5%
StarCompliance MidCo, LLC  L+6.75% 7.75% 1/12/2021 1/11/2027  2,000   1,962   1,998  0.8%
StarCompliance MidCo, LLC (Revolver) (f)  L+6.75% 7.75% 1/12/2021 1/11/2027  322        0.0%
US Claims Litigation Funding, LLC (Revolver) (f) (g)  L+8.75% 9.75% 11/30/2020 11/29/2024  1,500   1,200   1,190  0.5%
W3 Monroe RE Debt LLC (g)  n/a 10.00% 2/5/2021 2/4/2028  2,725   2,725   2,725  1.2%
            20,998   18,134   17,780  7.5%
Beverage, Food & Tobacco                        
LX/JT Intermediate Holdings, Inc. (k)  L+6.00% 7.50% 3/11/2020 3/11/2025  9,643   9,486   9,392  4.0%
LX/JT Intermediate Holdings, Inc. (Revolver) (f)  L+6.00% 7.50% 3/11/2020 3/11/2025  833        0.0%
Toojay's Management, LLC (l)  n/a n/a(m)  10/26/2018 10/26/2022  1,448   1,407     0.0%
Toojay's Management, LLC (l)  n/a n/a(m)  10/26/2018 10/26/2022  199   199     0.0%
Toojay's Management, LLC (Revolver) (l)  n/a n/a(m)  10/26/2018 10/26/2022  66   66     0.0%
            12,189   11,158   9,392  4.0%
Capital Equipment                        
MCP Shaw Acquisitionco, LLC (k)  L+6.50% 7.50% 2/28/2020 11/28/2025  9,899   9,736   9,800  4.1%
MCP Shaw Acquisitionco, LLC (Revolver) (f)  L+6.50% 7.50% 2/28/2020 11/28/2025  1,784        0.0%
            11,683   9,736   9,800  4.1%
Chemicals, Plastics & Rubber                        
Midwest Composite Technologies, LLC (k)  L+6.75% 7.75% 12/2/2019 8/31/2023  14,888   14,686   14,903  6.3%
Midwest Composite Technologies, LLC  L+6.75% 7.75% 8/31/2018 8/31/2023  884   875   885  0.4%
Midwest Composite Technologies, LLC  L+6.75% 7.75% 8/31/2018 8/31/2023  508   508   509  0.2%
Midwest Composite Technologies, LLC (Revolver) (f)  L+6.75% 7.75% 8/31/2018 8/31/2023  90        0.0%
Valudor Products, LLC  L+7.50% 

7.00% Cash/

1.50% PIK

  6/18/2018 6/19/2023  1,567   1,552   1,733  0.7%
Valudor Products, LLC (n)  L+7.50% 8.50% PIK  6/18/2018 6/19/2023  222   219     0.0%
Valudor Products, LLC (Revolver) (f)  L+9.50% 10.50% 6/18/2018 6/19/2023  818   669   641  0.3%
            18,977   18,509   18,671  7.9%
Construction & Building                        
Cali Bamboo, LLC  L+9.50% 

8.00% Cash/
2.50% PIK

  7/10/2015 3/31/2022  6,902   6,902   6,902  2.9%
Cali Bamboo, LLC (Revolver) (f)  L+9.50% 

8.00% Cash/

2.50% PIK

  7/10/2015 3/31/2022  2,165        0.0%
Dude Solutions Holdings, Inc.  L+7.50% 8.50% 6/14/2019 6/13/2025  9,963   9,793   9,953  4.2%
Dude Solutions Holdings, Inc. (Revolver) (f)  L+7.50% 8.50% 6/14/2019 6/13/2025  1,304        0.0%
            20,334   16,695   16,855  7.1%
Consumer Goods: Durable                        
Parterre Flooring & Surface Systems, LLC (k)  L+9.00% 10.00%(m) 8/22/2017 8/22/2022  6,936   6,203   475  0.2%
            6,936   6,203   475  0.2%
Consumer Goods: Non-Durable                        
Thrasio, LLC  L+7.00% 8.00% 12/18/2020 12/18/2026  1,496   1,461   1,498  0.6%
Thrasio, LLC (Delayed Draw) (f) (h)  L+7.00% 8.00% 12/18/2020 12/18/2026  990        0.0%
            2,486   1,461   1,498  0.6%
Environmental Industries                        
Quest Resource Management Group, LLC  L+8.50% 9.75% 10/19/2020 10/20/2025  997   931   1,027  0.4%
Quest Resource Management Group, LLC (Delayed Draw) (f) (h)  L+8.50% 9.75% 10/19/2020 10/20/2025  1,087        0.0%
StormTrap, LLC  L+5.50% 6.50% 12/10/2018 12/8/2023  7,820   7,739   7,820  3.3%
StormTrap, LLC (Revolver) (f)  L+5.50% 6.50% 12/10/2018 12/8/2023  432        0.0%
Synergy Environmental Corporation (k)  L+6.00% 7.00% 4/29/2016 9/29/2023  2,877   2,867   2,880  1.2%
Synergy Environmental Corporation (k)  L+6.00% 7.00% 4/29/2016 9/29/2023  481   479   481  0.2%
Synergy Environmental Corporation  L+6.00% 7.00% 4/29/2016 9/29/2023  820   820   821  0.4%
Synergy Environmental Corporation (Revolver) (f)  L+6.00% 7.00% 4/29/2016 9/29/2023  671   67   67  0.0%
            15,185   12,903   13,096  5.5%
                         
Healthcare & Pharmaceuticals                        
American Optics Holdco, Inc. (g) (j)  L+6.50% 7.50% 9/13/2017 9/13/2022  2,143  2,129  2,143  0.9%
American Optics Holdco, Inc. (g) (j)  L+6.50% 7.50% 9/13/2017 9/13/2022  1,616   1,604   1,616  0.7%
American Optics Holdco, Inc. (Revolver) (f) (g) (j)  L+6.50% 7.50% 9/13/2017 9/13/2022  220        0.0%
American Optics Holdco, Inc. (Revolver) (f) (g) (j)  L+6.50% 7.50% 9/13/2017 9/13/2022  440        0.0%
Apotheco, LLC  L+8.50% 

6.50% Cash/

3.00% PIK

  4/8/2019 4/8/2024  3,568   3,523   3,312  1.4%
Apotheco, LLC (Revolver)  L+8.50% 

6.50% Cash/

3.00% PIK

  4/8/2019 4/8/2024  934   934   867  0.4%
Brickell Bay Acquisition Corp.  L+7.00% 8.00% 2/12/2021 2/12/2026  4,000   3,922   3,980  1.7%
Brickell Bay Acquisition Corp. (Delayed Draw) (f) (h)  L+7.00% 8.00% 2/12/2021 2/12/2026  800        0.0%
Rockdale Blackhawk, LLC  n/a n/a(o)  3/31/2015 n/a(p)        1,592  0.7%
Seran BioScience, LLC  L+7.25% 8.25% 12/31/2020 12/31/2025  2,500   2,453   2,497  1.0%
Seran BioScience, LLC (Revolver) (f)  L+7.25% 8.25% 12/31/2020 12/31/2025  444        0.0%
            16,665   14,565   16,007  6.8%

  

7

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest Rate  

Acquisition

Date (c) 

 Maturity  Principal  Amortized Cost  Fair
Value (d)
  % of
Net Assets (e)
 
High Tech Industries                        
Arcstor Midco, LLC  L+7.00% 8.00% 3/16/2021 3/16/2027  4,500   $4,410  $ 4,500  1.9%
MarkLogic Corporation  L+8.00% 9.00% 10/20/2020 10/20/2025  3,491   3,411   3,561  1.5%
MarkLogic Corporation (Revolver) (f)  L+6.00% 7.00% 10/20/2020 10/20/2025  269        0.0%
Mindbody, Inc.  L+8.50% 

8.00% Cash/

1.50% PIK

  2/15/2019 2/14/2025  6,413   6,327   6,201  2.6%
Mindbody, Inc. (Revolver) (f)  L+8.00% 9.00% 2/15/2019 2/14/2025  667        0.0%
Newforma, Inc. (k)  L+5.00% 6.00% 6/30/2017 6/30/2022  11,806   11,755   11,802  5.0%
Newforma, Inc. (Revolver) (f)  L+5.00% 6.00% 6/30/2017 6/30/2022  1,250        0.0%
Planful, Inc.  L+6.50% 7.50% 12/28/2018 12/30/2024  9,500   9,387   9,462  4.0%
Planful, Inc. (Delayed Draw) (f) (h)  L+6.50% 7.50% 1/11/2021 12/30/2024  1,325   442   440  0.2%
Planful, Inc. (Revolver) (f)  L+6.50% 7.50% 12/28/2018 12/30/2024  442   88   88  0.1%
RPL Bidco Limited (g) (j) (q)  L+7.00% 7.50% 11/9/2017 11/9/2023  14,488   13,821   14,485  6.1%
RPL Bidco Limited (g) (j) (q)  L+7.00% 7.50% 5/22/2018 11/9/2023  1,792   1,639   1,791  0.8%
RPL Bidco Limited (g) (j) (q)  L+7.00% 7.50% 3/3/2021 11/9/2023  1,240   1,256   1,240  0.5%
RPL Bidco Limited (Revolver) (f) (g) (j) (q)  L+7.00% 7.50% 11/9/2017 11/9/2023  551        0.0%
            57,734  52,536   53,570 22.7%
Hotels, Gaming & Leisure                        
Equine Network, LLC  L+8.00% 9.00% 12/31/2020 12/31/2025  1,750   1,713   1,754  0.8%
Equine Network, LLC  L+8.00% 9.00% 1/29/2021 12/31/2025  794   778   796  0.3%
Equine Network, LLC (Delayed Draw) (f) (h)  L+8.00% 9.00% 12/31/2020 12/31/2025  427        0.0%
Equine Network, LLC (Revolver) (f)  L+8.00% 9.00% 12/31/2020 12/31/2025  171        0.0%
            3,142   2,491   2,550  1.1%
Media: Advertising, Printing & Publishing                        
AdTheorent Holding Company, LLC  L+8.50% 9.00% 12/22/2016 12/22/2021  2,637   2,629   2,635  1.1%
Destination Media, Inc. (k)  L+5.50% 6.50% 4/7/2017 4/7/2022  4,225   4,209   4,225  1.8%
Destination Media, Inc. (Revolver) (f)  L+5.50% 6.50% 4/7/2017 4/7/2022  542        0.0%
North Haven USHC Acquisition, Inc.  L+6.50% 7.50% 10/30/2020 10/30/2025  2,494   2,449   2,519  1.1%
North Haven USHC Acquisition, Inc. (Delayed Draw) (f) (h)  L+6.50% 7.50% 3/12/2021 10/30/2025  721        0.0%
North Haven USHC Acquisition, Inc. (Revolver) (f)  L+6.50% 7.50% 10/30/2020 10/30/2025  240        0.0%
Relevate Health Group, LLC  L+6.25% 7.25% 11/20/2020 11/20/2025  1,500   1,472   1,530  0.6%
Relevate Health Group, LLC (Delayed Draw) (f) (h)  L+6.25% 7.25% 11/20/2020 11/20/2025  789   671   684  0.3%
Relevate Health Group, LLC (Revolver) (f)  L+6.25% 7.25% 11/20/2020 11/20/2025  316        0.0%
Stratus Unlimited, LLC  L+7.00% 8.00% 12/22/2017 8/30/2024  14,791   14,737   14,791  6.3%
Stratus Unlimited, LLC (Revolver) (f)  L+7.00% 8.00% 12/22/2017 8/30/2024  3,490        0.0%
XanEdu Publishing, Inc.  L+6.50% 7.50% 1/28/2020 1/28/2025  1,881   1,851   1,889  0.8%
XanEdu Publishing, Inc. (Revolver) (f)  L+6.50% 7.50% 1/28/2020 1/28/2025  495        0.0%
            34,121   28,018   28,273  12.0%
Media: Broadcasting & Subscription                        
Vice Group Holding, Inc.  L+12.00% 

5.50% Cash/

8.00% PIK

  5/2/2019 11/2/2022  1,438   1,432   1,438  0.6%
Vice Group Holding, Inc.  L+12.00% 

5.50% Cash/

8.00% PIK

  11/4/2019 11/2/2022  276   273   276  0.1%
Vice Group Holding, Inc.  L+12.00% 

5.50% Cash/

8.00% PIK

  5/2/2019 11/2/2022  451   451   451  0.2%
Vice Group Holding, Inc.  L+12.00% 

5.50% Cash/

8.00% PIK

  5/2/2019 11/2/2022  170   170   170  0.1%
            2,335   2,326   2,335  1.0%
                         
Media: Diversified & Production                        
Attom Intermediate Holdco, LLC  L+5.75% 6.75% 1/4/2019 1/4/2024  1,955   1,932   1,934  0.8%
Attom Intermediate Holdco, LLC  L+7.50% 8.75% 6/25/2020 1/4/2024  476   469   491  0.2%
Attom Intermediate Holdco, LLC (Revolver) (f)  L+5.75% 6.75% 1/4/2019 1/4/2024  320        0.0%
Crownpeak Technology, Inc.  L+6.25% 7.25% 2/28/2019 2/28/2024  4,000   3,951   3,998  1.7%
Crownpeak Technology, Inc.  L+6.25% 7.25% 2/28/2019 2/28/2024  60   60   60  0.0%
Crownpeak Technology, Inc. (Revolver) (f)  L+6.25% 7.25% 2/28/2019 2/28/2024  167        0.0%
            6,978   6,412   6,483  2.7%
Retail                        
BLST Operating Company, LLC  L+9.00% 

1.00% Cash/

9.00% PIK

(m)  8/28/2020 8/28/2025  1,259   1,223   1,039  0.4%
Forman Mills, Inc. (k)  L+9.50% 

8.50% Cash/

2.00% PIK

  1/14/2020 12/30/2022  1,336   1,336   1,320  0.6%
Forman Mills, Inc. (k)  L+9.50% 

8.50% Cash/

2.00% PIK

  10/4/2016 12/30/2022  760   758   751  0.3%
Forman Mills, Inc. (k)  L+9.50% 

8.50% Cash/

2.00% PIK

  10/4/2016 12/30/2022  7,623   7,605   7,047  3.0%
LuLu's Fashion Lounge, LLC  L+9.50% 

8.00% Cash/

2.50% PIK

  8/21/2017 8/29/2022  4,055   4,015   3,467  1.5%
The Worth Collection, Ltd. (k)  L+8.50% 9.00% (m) 9/29/2016 9/29/2021  10,587   10,248   120  0.0%
            25,620   25,185   13,744  5.8%

  

8

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest Rate  

Acquisition

Date (c) 

 Maturity  Principal  Amortized Cost  

Fair

Value (d)

  % of
Net Assets (e)
 
Services: Business                        
Atlas Sign Industries of FLA, LLC (k)  L+11.50% 

11.50% Cash/

1.00% PIK

  5/14/2018 5/15/2023  3,572  $ 3,377  $ 3,561  1.5%
Burroughs, Inc. (k)  L+6.50% 7.50% 12/22/2017 12/22/2022  5,726   5,687   5,726  2.4%
Burroughs, Inc. (Revolver) (f)  L+6.50% 7.50% 12/22/2017 12/22/2022  1,220        0.0%
Certify, Inc.  L+5.75% 6.75% 2/28/2019 2/28/2024  9,000   8,916   9,000  3.8%
Certify, Inc.  L+5.75% 6.75% 2/28/2019 2/28/2024  1,227   1,227   1,227  0.5%
Certify, Inc. (Revolver) (f)  L+5.75% 6.75% 2/28/2019 2/28/2024  409   102   102  0.0%
HS4 Acquisitionco, Inc.  L+6.75% 7.75% 7/9/2019 7/9/2025  10,050   9,897   9,950  4.2%
HS4 Acquisitionco, Inc. (Revolver) (f)  L+6.75% 7.75% 7/9/2019 7/9/2025  817        0.0%
IT Global Holding, LLC  L+9.00% 10.00% 11/15/2018 11/10/2023  7,625   7,534   7,625  3.2%
IT Global Holding, LLC  L+9.00% 10.00% 7/19/2019 11/10/2023  2,843   2,801   2,843  1.2%
IT Global Holding, LLC (Revolver)  L+9.00% 10.00% 11/15/2018 11/10/2023  875   875   875  0.4%
RedZone Robotics, Inc.  L+7.25% 

7.75% Cash/

0.50% PIK

  6/1/2018 6/5/2023  220   217   220  0.1%
RedZone Robotics, Inc. (Revolver) (f)  L+7.25% 

7.75% Cash/

0.50% PIK

  6/1/2018 6/5/2023  158        0.0%
Security Services Acquisition Sub Corp. (k)  L+6.00% 7.00% 2/15/2019 2/15/2024  3,430   3,389   3,433  1.5%
Security Services Acquisition Sub Corp. (k)  L+6.00% 7.00% 2/15/2019 2/15/2024  2,467   2,467   2,470  1.1%
Security Services Acquisition Sub Corp. (k)  L+6.00% 7.00% 2/15/2019 2/15/2024  2,167   2,167   2,170  0.9%
Security Services Acquisition Sub Corp.  L+6.00% 7.00% 2/15/2019 2/15/2024  1,559   1,559   1,560  0.7%
VPS Holdings, LLC  L+7.00% 8.00% 10/5/2018 10/4/2024  3,601   3,553   3,411  1.4%
VPS Holdings, LLC  L+7.00% 8.00% 10/5/2018 10/4/2024  2,939   2,939   2,784  1.2%
VPS Holdings, LLC (Revolver) (f)  L+7.00% 8.00% 10/5/2018 10/4/2024  1,000   100   95  0.1%
            60,905   56,807   57,052  24.2%
Services: Consumer                        
Express Wash Acquisition Company, LLC  L+6.50% 7.50% 12/28/2020 12/26/2025  2,500   2,459   2,500  1.1%
Express Wash Acquisition Company, LLC (Revolver) (f)  L+6.50% 7.50% 12/28/2020 12/26/2025  1,000   150   150  0.1%
IDIG Parent, LLC  L+6.50% 7.50% 12/15/2020 12/15/2026  5,558   5,453   5,565  2.4%
IDIG Parent, LLC (Delayed Draw) (f) (h)   L+6.50% 7.50% 12/15/2020 12/15/2026  918        0.0%
IDIG Parent, LLC (Revolver) (f)  L+6.50% 7.50% 12/15/2020 12/15/2026  429        0.0%
Mammoth Holdings, LLC  L+6.00% 7.00% 10/16/2018 10/16/2023  1,955   1,933   1,957  0.8%
Mammoth Holdings, LLC  L+6.00% 7.00% 10/16/2018 10/16/2023  4,104   4,104   4,108  1.7%
Mammoth Holdings, LLC (Delayed Draw) (f) (h)  L+6.00% 7.00% 3/12/2021 10/16/2023  6,386        0.0%
Mammoth Holdings, LLC (Revolver) (f)  L+6.00% 7.00% 10/16/2018 10/16/2023  657        0.0%
            23,507   14,099   14,280  6.1%
Wholesale                        
Nearly Natural, Inc. (k)  L+6.75% 7.75% 12/15/2017 12/15/2022  6,598   6,547   6,598  2.8%
Nearly Natural, Inc.  L+6.75% 7.75% 2/16/2021 12/15/2022  3,095   3,039   3,095  1.3%
Nearly Natural, Inc. (k)  L+6.75% 7.75% 9/22/2020 12/15/2022  1,706   1,681   1,706  0.7%
Nearly Natural, Inc. (k)  L+6.75% 7.75% 8/28/2019 12/15/2022  1,858   1,858   1,858  0.8%
Nearly Natural, Inc. (Revolver) (f)  L+6.75% 7.75% 12/15/2017 12/15/2022  2,397   639   639  0.3%
            15,654   13,764   13,896  5.9%
Total Non-Controlled/Non-Affiliate Senior Secured Loans           365,526   320,473   305,360  129.3%
                         
Unitranche Secured Loans (r)                        
Chemicals, Plastics & Rubber                        
MFG Chemical, LLC (k)  L+9.00% 10.00% 6/23/2017 6/23/2022  9,232  9,192  9,232  3.9%
MFG Chemical, LLC  L+9.00% 10.00% 3/15/2018 6/23/2022  976   976   976  0.4%
            10,208   10,168   10,208  4.3%
Healthcare & Pharmaceuticals                        
Priority Ambulance, LLC (s)  L+5.75% 6.75% 7/18/2018 4/12/2022  10,015   10,015   9,965  4.2%
Priority Ambulance, LLC (t)  L+5.75% 6.75% 4/12/2017 4/12/2022  1,253   1,244   1,247  0.5%
Priority Ambulance, LLC  L+5.75% 6.75% 12/13/2018 4/12/2022  668   668   665  0.3%
Priority Ambulance, LLC (Delayed Draw) (f) (h)  L+5.75% 6.75% 10/22/2020 4/12/2022  1,009        0.0%
            12,945   11,927   11,877  5.0%
High Tech Industries                        
Energy Services Group, LLC  L+8.42% 9.42% 5/4/2017 5/4/2022  3,892   3,878   3,892  1.6%
Energy Services Group, LLC (g) (q)  L+8.42% 9.42% 5/4/2017 5/4/2022  4,832   4,639   4,832  2.0%
Energy Services Group, LLC  L+8.42% 9.42% 5/4/2017 5/4/2022  1,108   1,094   1,108  0.5%
WillowTree, LLC  L+5.50% 6.50% 10/9/2018 10/9/2023  7,790   7,713   7,716  3.3%
            17,622   17,324   17,548  7.4%
Telecommunications                        
VB E1, LLC (Delayed Draw) (f) (h)  L+8.50% 9.00% 11/18/2020 11/18/2026  2,250   1,100   1,102  0.5%
            2,250   1,100   1,102  0.5%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans           43,025   40,519   40,735  17.2%
                         
Junior Secured Loans                        
Beverage, Food & Tobacco                        
California Pizza Kitchen, Inc.  L+13.50% 

1.00% Cash/

14.00% PIK

(m)  8/19/2016 5/23/2025  1,264   1,264   1,235  0.5%
CSM Bakery Solutions, LLC  L+10.00% 11.00% 5/23/2013 2/4/2022  6,116   6,116   6,065  2.6%
            7,380   7,380   7,300  3.1%
Capital Equipment                        
ALTA Enterprises, LLC (g)  L+8.00% 9.80% 2/14/2020 8/13/2025  3,783   3,672   3,934  1.7%
            3,783   3,672   3,934  1.7%
Services: Consumer                        
Education Corporation of America  L+11.00% 

5.70% Cash/

5.50% PIK

(m)  9/3/2015 n/a(p)  833   831   765  0.3%
            833   831   765  0.3%
Total Non-Controlled/Non-Affiliate Junior Secured Loans           11,996   11,883   11,999  5.1%

 

9

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest Rate  Acquisition Date (c)  Maturity  Principal  Amortized Cost  Fair
Value (d)
  % of
Net Assets (e)
 
Equity Securities (u) (ah)                        
Banking, Finance, Insurance & Real Estate                        
J2 BWA Funding, LLC (0.7% profit sharing) (g) (v)  (w)  12/24/2020      $   $  0.0%
PKS Holdings, LLC (5,680 preferred units) (g)  n/a 5.00% PIK  11/30/2017      58   222  0.1%
PKS Holdings, LLC (5,714 preferred units) (g)  n/a 5.00% PIK  11/30/2017      9   34  0.0%
PKS Holdings, LLC (132 preferred units) (g)  n/a 5.00% PIK  11/30/2017      1   5  0.0%
PKS Holdings, LLC (916 preferred units) (g)  n/a 5.00% PIK  11/30/2017      9   34  0.0%
                77   295  0.1%
Beverage, Food & Tobacco                        
California Pizza Kitchen, Inc. (78,699 preferred units)  (w)  8/19/2016      5,468   1,790  0.8%
                5,468   1,790  0.8%
Capital Equipment               ��        
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units) (v)  (w)  2/28/2020      119   156  0.1%
                119   156  0.1%
Chemicals, Plastics & Rubber                        
Valudor Products, LLC (501,014 Class A-1 units) (v)  n/a 10.00% PIK(m)  6/18/2018      501     0.0%
                501     0.0%
Environmental Industries                        
Quest Resource Holding Corporation (warrant to purchase up to 0.2% of the equity)  (w)  10/19/2020 3/19/2028    67  122  0.1%
                67   122  0.1%
Healthcare & Pharmaceuticals                        
Seran BioScience, LLC (33,333 common units) (v)  (w)  12/31/2020      333   385  0.2%
                333   385  0.2%
High Tech Industries                        
Answers Finance, LLC (76,539 shares of common stock)  (w)  4/14/2017      2,284   43  0.0%
MarkLogic Corporation (290,239 Class A units)  (w)  10/20/2020      290   465  0.2%
Planful, Inc. (473,082 Class A units)  n/a  8.00% PIK   12/28/2018      473   591  0.2%
Recorded Future, Inc. (80,486 Class A units) (x)  (w)  7/3/2019      81   158  0.1%
                3,128   1,257  0.5%
Hotels, Gaming & Leisure                        
Equine Network, LLC (99 Class A units) (v)  n/a  10.00% PIK   12/31/2020      99   101  0.0%
                99   101  0.0%
Media: Advertising, Printing & Publishing                        
AdTheorent Holding Company, LLC (128,866 Class A voting units)  (w)  12/22/2016      129   537  0.2%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (g) (j)  (w)  9/18/2015 9/18/2025        1,626  0.7%
Relevate Health Group, LLC (40 preferred units)  n/a  12.00% PIK   11/20/2020      40   40  0.0%
Relevate Health Group, LLC (40 Class B common units)  (w)  11/20/2020         3  0.0%
Stratus Unlimited, LLC (686 shares of common units)  (w)  8/30/2019      872   1,065  0.5%
XanEdu Publishing, Inc. (49,479 Class A units)  n/a 8.00% PIK  1/28/2020      49   79  0.0%
                1,090   3,350  1.4%
Media: Diversified & Production                        
Attom Intermediate Holdco, LLC (297,197 Class A units) (v)  (w)  1/4/2019      297   406  0.2%
                297   406  0.2%
Retail                        
BLST Operating Company, LLC (139,883 Class A units) (v)  (w)  8/28/2020      1,072   122  0.1%
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)   (w)  1/14/2020 1/14/2029        82  0.0%
The Tie Bar Operating Company, LLC - Class A preferred units (1,275 units)  (w)  6/25/2013      87   4  0.0%
The Tie Bar Operating Company, LLC - Class B preferred units (1,275 units)  (w)  6/25/2013           0.0%
                1,159   208  0.1%
Services: Business                        
APCO Worldwide, Inc. (100 Class A voting common stock)  (w)  11/1/2017      395   433  0.2%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 3.0% of the equity)  (w)  5/14/2018 5/14/2026     125   179  0.1%
                520   612  0.3%
Services: Consumer                        
IDIG Parent, LLC (245,958 shares of common stock) (v) (y)  (w)  1/4/2021      248   268  0.0%
Education Corporation of America - Series G Preferred Stock (8,333 shares)  n/a 12.00% PIK(m) 9/3/2015      7,492   5,117  2.2%
Express Wash Acquisition Company, LLC (100,000 Class A units) (v)  n/a  8.00% PIK  12/28/2020      100   126  0.1%
                7,840   5,511  2.3%
Wholesale                        
Nearly Natural, Inc. (152,174 Class A units)  (w)  12/15/2017      152   206  0.1%
                152   206  0.1%
Total Non-Controlled/Non-Affiliate Equity Securities               20,850   14,399  6.1%
Total Non-Controlled/Non-Affiliate Company Investments              $393,725  $372,493  157.7%
                         
Non-Controlled Affiliate Company Investments (z)                        
Senior Secured Loans                        
Banking, Finance, Insurance & Real Estate                        
American Community Homes, Inc.  L+10.00% 11.50% PIK  7/22/2014 12/31/2021  9,585  $9,585  $9,585  4.1%
American Community Homes, Inc.  L+14.50% 16.00% PIK  7/22/2014 12/31/2021  4,212   4,212   4,212  1.8%
American Community Homes, Inc.  L+10.00% 11.50% PIK  5/24/2017 12/31/2021  581   581   581  0.3%
American Community Homes, Inc.  L+10.00% 11.50% PIK  8/10/2018 12/31/2021  2,136   2,136   3,131  1.3%
American Community Homes, Inc.  L+10.00% 11.50% PIK  3/29/2019 12/31/2021  3,955   3,955   3,997  1.7%
American Community Homes, Inc.  L+10.00% 11.50% PIK  9/30/2019 12/31/2021  19   19   19  0.0%
American Community Homes, Inc.  L+10.00% 11.50% PIK  12/30/2019 12/31/2021  91   91   91  0.0%
HFZ Capital Group, LLC (g) (aa)  L+12.50% 14.00% PIK 10/20/2017 n/a(p)  13,242   13,242   14,275  6.0%
HFZ Capital Group, LLC (g) (aa)  L+12.50% 14.00% PIK 10/20/2017 n/a(p)  4,758   4,758   5,129  2.2%
MC Asset Management (Corporate), LLC (g)  L+15.00% 16.00% PIK  1/26/2021 1/26/2024  6,423   6,423   6,423  2.7%
MC Asset Management (Industrial), LLC (g) (aa)  L+17.00% 18.00% PIK  6/11/2019 10/30/2024  10,799   10,793   11,579  4.9%
            55,801   55,795   59,022  25.0%

   

10

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest Rate  

Acquisition

Date (c) 

 Maturity  Principal  Amortized Cost  Fair
Value (d)
  % of
Net Assets (e)
 
Beverage, Food & Tobacco                        
TJ Management HoldCo, LLC (Revolver) (f) (l)  L+5.50% 6.50% 9/9/2020 6/30/2024  795  $   $  0.0%
            795        0.0%
Healthcare & Pharmaceuticals                        
Ascent Midco, LLC (k)  L+5.50% 6.50% 2/5/2020 2/5/2025  6,912   6,803   6,981  3.0%
Ascent Midco, LLC (Delayed Draw) (f) (h) (k)  L+5.50% 6.50% 2/5/2020 2/5/2025  2,838        0.0%
Ascent Midco, LLC (Revolver) (f)  L+5.50% 6.50% 2/5/2020 2/5/2025  1,129        0.0%
SHI Holdings, Inc. (k)  L+10.75% 10.90% PIK(m)   7/10/2014 n/a(p)  2,899   2,897   115  0.0%
SHI Holdings, Inc. (Revolver) (f)   L+10.75% 10.90% PIK(m)  7/10/2014 n/a(p)  4,667   4,585   182  0.1%
            18,445   14,285   7,278  3.1%
High Tech Industries                        
Mnine Holdings, Inc.  L+8.00% 

4.00% Cash/

5.00% PIK

  11/2/2018 12/30/2022  11,915   11,823   12,511  5.3%
            11,915   11,823   12,511  5.3%
Retail                        
Luxury Optical Holdings Co.  L+8.00% 9.00% PIK(m)  9/12/2014 12/15/2021  1,481   1,481   1,442  0.6%
Luxury Optical Holdings Co. (Delayed Draw) (f) (h)  L+11.50% 12.50%(m) 9/29/2017 12/15/2021  3,565   1,461   1,506  0.7%
Luxury Optical Holdings Co. (Revolver)  L+8.00% 9.00% PIK(m)  9/12/2014 12/15/2021  68   68   66  0.0%
            5,114   3,010   3,014  1.3%
Services: Business                        
Curion Holdings, LLC (k)  n/a 14.00% PIK(m) 5/2/2017 5/2/2022  4,226   4,189   3,585  1.5%
Curion Holdings, LLC (Revolver) (f)  n/a 14.00% PIK(m)  5/2/2017 5/2/2022  871   836   822  0.4%
            5,097   5,025   4,407  1.9%
Services: Consumer                        
NECB Collections, LLC (Revolver) (f)  L+11.00% 12.00% PIK(m)  6/25/2019 6/30/2021  1,356   1,312   807  0.4%
            1,356   1,312   807  0.4%
Total Non-Controlled Affiliate Senior Secured Loans           98,523   91,250   87,039  36.9%
                         
Unitranche Secured Loans (r)                        
Consumer Goods: Non-Durable                        
Incipio, LLC (ab)  L+8.50% 9.50% PIK(m)  12/26/2014 8/22/2022  14,701   14,677     0.0%
Incipio, LLC (ac)  L+8.50% 9.50% PIK(m)  3/9/2018 8/22/2022  4,326   4,326   2,088  0.9%
Incipio, LLC  L+8.50% 9.50% PIK(m)  7/6/2018 8/22/2022  1,833   1,833   1,741  0.7%
Incipio, LLC  L+8.50% 9.50% PIK(m)  1/15/2020 8/22/2022  1,543   1,543   1,465  0.6%
Incipio, LLC  L+8.50% 9.50% PIK(m)  4/17/2019 8/22/2022  772   772   734  0.3%
Incipio, LLC  L+8.50% 9.50% PIK(m)  7/8/2020 8/22/2022  1,615   1,615   1,535  0.7%
            24,790   24,766   7,563  3.2%
Total Non-Controlled Affiliate Unitranche Secured Loans           24,790   24,766   7,563  3.2%
                         
Junior Secured Loans                        
Consumer Goods: Non-Durable                        
Incipio, LLC (ad)  n/a 10.70% PIK(m)  6/18/2018 8/22/2022  3,766        0.0%
Incipio, LLC (ae)  n/a 10.70% PIK(m)  6/18/2018 8/22/2022  7,194        0.0%
            10,960        0.0%
Services: Business                        
Curion Holdings, LLC (k)  n/a 15.00% PIK(m)  8/17/2018 1/2/2023  1,720   1     0.0%
Curion Holdings, LLC (k)  n/a 15.00% PIK(m)  8/17/2018 1/2/2023  44        0.0%
            1,764   1     0.0%
Total Non-Controlled Affiliate Company Junior Secured Loans           12,724   1     0.0%
                         
Equity Securities (z) (ah)                        
Banking, Finance, Insurance & Real Estate                        
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)  (w)  10/9/2014 12/18/2024        286  0.1%
MC Asset Management (Corporate), LLC (15.9% of interests) (g) (v) (aa)  (w)  6/11/2019      793   576  0.3%
                793   862  0.4%
Beverage, Food & Tobacco                        
TJ Management HoldCo, LLC (16 shares of common stock) (l) (v)  (w)  9/9/2020      2,386   3,285  1.4%
                2,386   3,285  1.4%
Consumer Goods: Non-Durable                        
Incipio, LLC (1,774 shares of Series C common units) (v)  (w)  7/6/2018           0.0%
                     0.0%
Healthcare & Pharmaceuticals                        
Ascent Midco, LLC (2,032,258 Class A units) (v)  n/a 8.00% PIK  2/5/2020      2,032   3,282  1.4%
Familia Dental Group Holdings, LLC (1,052 Class A units) (v) (af)  (w)  4/8/2016      3,602   3,350  1.4%
SHI Holdings, Inc. (24 shares of common stock)  (w)  12/14/2016      27     0.0%
                5,661   6,632  2.8%
High Tech Industries                        
 Mnine Holdings, Inc. (6,400 Class B units)  (w)  6/30/2020           0.0%
                     0.0%
Retail                        
Luxury Optical Holdings Co. (91 preferred units)  n/a 15.00% PIK(m)  9/12/2014      3,631   2,438  1.0%
Luxury Optical Holdings Co. (86 shares of common stock)  (w)  9/29/2017           0.0%
                3,631   2,438  1.0%
Services: Business                        
Curion Holdings, LLC (58,779 shares of common stock)  (w)  8/17/2018           0.0%
                     0.0%
Services: Consumer                        
NECB Collections, LLC (20.8% of units) (v)  (w)  6/21/2019      1,458     0.0%
                1,458     0.0%
Total Non-Controlled Affiliate Equity Securities               13,929   13,217  5.6%
Total Non-Controlled Affiliate Company Investments              $129,946  $107,819  45.7%
                         
Controlled Affiliate Company Investments (ag)                        
Equity Securities                        
Investment Funds & Vehicles                        
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (g)     10/31/2017     $42,150  $41,067  17.4%
Total Controlled Affiliate Equity Securities               42,150   41,067  17.4%
Total Controlled Affiliate Company Investments              $42,150  $41,067  17.4%
TOTAL INVESTMENTS              $565,821  $521,379  220.8%

 

11

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(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 $103  £84  Bannockburn Global Forex, LLC 4/2/2021 $(13)
Foreign currency forward contract $271  £212  Bannockburn Global Forex, LLC 6/1/2021  (21)
Foreign currency forward contract $33  £26  Bannockburn Global Forex, LLC 6/1/2021  (3)
Foreign currency forward contract $23  £16  Bannockburn Global Forex, LLC 6/3/2021   
Foreign currency forward contract $103  £83  Bannockburn Global Forex, LLC 7/2/2021  (12)
Foreign currency forward contract $1,256  £900  Bannockburn Global Forex, LLC 7/2/2021  16 
Foreign currency forward contract $102  £83  Bannockburn Global Forex, LLC 10/4/2021  (12)
Foreign currency forward contract $101  £82  Bannockburn Global Forex, LLC 1/3/2022  (12)
Foreign currency forward contract $97  £79  Bannockburn Global Forex, LLC 4/4/2022  (12)
Foreign currency forward contract $36  £29  Bannockburn Global Forex, LLC 5/6/2022  (4)
Foreign currency forward contract $137   AUD        173  Bannockburn Global Forex, LLC 4/20/2021  5 
Foreign currency forward contract $75   AUD         95  Bannockburn Global Forex, LLC 5/18/2021  3 
Foreign currency forward contract $86   AUD       108  Bannockburn Global Forex, LLC 6/17/2021  3 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 7/16/2021  3 
Foreign currency forward contract $80   AUD       102  Bannockburn Global Forex, LLC 8/17/2021  3 
Foreign currency forward contract $85   AUD       108  Bannockburn Global Forex, LLC 9/16/2021  3 
Foreign currency forward contract $83   AUD       105  Bannockburn Global Forex, LLC 10/19/2021  3 
Foreign currency forward contract $75   AUD         95  Bannockburn Global Forex, LLC 11/16/2021  3 
Foreign currency forward contract $85   AUD       108  Bannockburn Global Forex, LLC 12/16/2021  3 
Foreign currency forward contract $91   AUD       115  Bannockburn Global Forex, LLC 1/19/2022  3 
Foreign currency forward contract $75   AUD         95  Bannockburn Global Forex, LLC 2/16/2022  3 
Foreign currency forward contract $75   AUD         95  Bannockburn Global Forex, LLC 3/16/2022  3 
Foreign currency forward contract $83   AUD       105  Bannockburn Global Forex, LLC 4/19/2022  3 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 5/17/2022  3 
Foreign currency forward contract $88   AUD       112  Bannockburn Global Forex, LLC 6/17/2022  3 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 7/18/2022  3 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 8/16/2022  2 
Foreign currency forward contract $88   AUD       112  Bannockburn Global Forex, LLC 9/16/2022  3 
Foreign currency forward contract $88   AUD       112  Bannockburn Global Forex, LLC 10/19/2022  3 
Foreign currency forward contract $74   AUD         95  Bannockburn Global Forex, LLC 11/16/2022  2 
Foreign currency forward contract $80   AUD       102  Bannockburn Global Forex, LLC 12/16/2022  2 
Foreign currency forward contract $87   AUD       112  Bannockburn Global Forex, LLC 1/18/2023  3 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 2/16/2023  2 
Foreign currency forward contract $74   AUD         95  Bannockburn Global Forex, LLC 3/16/2023  2 
Foreign currency forward contract $93   AUD       118  Bannockburn Global Forex, LLC 4/20/2023  3 
Foreign currency forward contract $63   AUD         81  Bannockburn Global Forex, LLC 5/16/2023  2 
Foreign currency forward contract $90   AUD       115  Bannockburn Global Forex, LLC 6/19/2023  2 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 7/18/2023  2 
Foreign currency forward contract $82   AUD       105  Bannockburn Global Forex, LLC 8/16/2023  2 
Foreign currency forward contract $82   AUD       105  Bannockburn Global Forex, LLC 9/18/2023  2 
Foreign currency forward contract $84   AUD       108  Bannockburn Global Forex, LLC 10/18/2023  2 
Foreign currency forward contract $77   AUD         98  Bannockburn Global Forex, LLC 11/16/2023  2 
Foreign currency forward contract $79   AUD       102  Bannockburn Global Forex, LLC 12/18/2023  2 
Foreign currency forward contract $84   AUD       108  Bannockburn Global Forex, LLC 1/17/2024  2 
Foreign currency forward contract $79   AUD       102  Bannockburn Global Forex, LLC 2/16/2024  2 
Foreign currency forward contract $76   AUD         98  Bannockburn Global Forex, LLC 3/18/2024  2 
Foreign currency forward contract $8,365   AUD   10,746  Bannockburn Global Forex, LLC 3/18/2024  200 
              $221 

 

12

 

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

(in thousands, except for shares and units)

 

 

(a)All of the Company's investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company's investments are issued by U.S. portfolio companies unless otherwise noted.
(b)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”) 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 or Prime and the current contractual interest rate in effect at March 31, 2021. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap. Certain investments contain a payment-in-kind (“PIK”) provision.
(c)Except as otherwise noted, all of the Company’s portfolio company investments, which as of March 31, 2021 represented 220.8% of the Company’s net assets or 95.8% of the Company’s total assets, are subject to legal restrictions on sales.
(d)Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company's board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)Percentages are based on net assets of $236,163 as of March 31, 2021.
(f)All or a portion of this commitment was unfunded at March 31, 2021. As such, interest is earned only on the funded portion of this commitment.
(g)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, 2021, non-qualifying assets totaled 23.3% of the Company’s total assets.
(h)This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(i)This loan is denominated in Australian dollars and is translated into U.S. dollars as of the valuation date.
(j)This is an international company.
(k)All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(l)During the three months ended September 30, 2020, the senior secured lender group of Toojay’s Management, LLC (“Toojay’s OldCo”) established TJ Management HoldCo, LLC (“Toojay’s NewCo”) in order to acquire certain of the assets of Toojay’s OldCo as part of a bankruptcy restructuring. The Company owns 15.9% of the equity in Toojay’s NewCo. Toojay’s NewCo credit bid a portion of the senior secured debt in Toojay’s OldCo to acquire certain assets of Toojay’s OldCo which constitute the ongoing operations of the portfolio company. The Company’s portion of this credit bid was $2,386, and as such the Company's outstanding senior secured debt investment in Toojay’s OldCo was reduced by the amount of the credit bid and the Company’s cost basis of its new equity investment in Toojay’s NewCo was increased by the amount of the credit bid. While the Company still has loans outstanding at Toojay’s OldCo, the Company has valued these positions at zero as of March 31, 2021.
(m)This position was on non-accrual status as of March 31, 2021, 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.
(n)This investment represents a note convertible to preferred shares of the borrower.
(o)In May 2020, an arbitrator issued a final award in favor of the estate of Rockdale Blackhawk, LLC (the “Estate”) in the legal proceeding between the Estate and a national insurance carrier. The Company's share of the net proceeds from the award exceeded the contractual obligations due to the Company as a result of the Company’s right to receive excess proceeds pursuant to the terms of a sharing agreement between the lenders and the Estate. As of March 31, 2021, the Company has this remaining investment in Rockdale associated with residual proceeds currently expected from the Estate. This investment is a non-income producing security.
(p)This is a demand note with no stated maturity.
(q)This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.
(r)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, are 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.

(s)A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(t)A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(u)Represents less than 5% ownership of the portfolio company’s voting securities.
(v)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.
(w)Represents a non-income producing security.
(x)As of March 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
(y)As of March 31, 2021, the Company was party to a subscription agreement with a commitment to fund an equity investment of $43.
(z)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).
(aa)The Company restructured its investments in HFZ Capital Group LLC (“HFZ”) and HFZ Member RB portfolio, LLC (“Member RB”) during the three months ended December 31, 2020. As part of the restructuring of HFZ, the Company obtained a 15.9% equity interest in MC Asset Management (Corporate), LLC (“Corporate”). As part of the Member RB restructuring, the Company exchanged its loan in Member RB for a promissory note in MC Asset Management (Industrial), LLC (“Industrial”). Corporate owns 100% of the equity of Industrial. In conjunction with these restructurings, the Company participated $4,758 of principal of its loan to HFZ as an equity contribution to Industrial. This participation did not qualify for sale accounting under ASC Topic 860 – Transfers and Servicing because the sale did not meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. As a result, the Company continues to reflect its full investment in HFZ but has split the loan into two investments.
(ab)A portion of this loan (principal of $5,390) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ac)A portion of this loan (principal of $55) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ad)A portion of this loan (principal of $1,015) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ae)A portion of this loan (principal of $1,938) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(af)As of March 31, 2021, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $611.
(ag)As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% 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 both an Affiliated Person and a portfolio company that the Company is deemed to control.
(ah) Ownership of certain equity investments may occur through a holding company or partnership.  
  
n/a - not applicable

 

13

 

  

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized Cost  Fair Value (d)  % of
Net Assets (e)
 
Non-Controlled/Non-Affiliate Company Investments                            
Senior Secured Loans                            
Automotive                            
Hastings Manufacturing Company  L+8.25%  9.25% 4/24/2018  4/24/2023   2,820  $2,790  $2,829   1.2%
Magneto & Diesel Acquisition, Inc.  L+6.05%  7.10% 12/18/2018  12/18/2023   4,876   4,820   4,876   2.1%
Magneto & Diesel Acquisition, Inc.  L+6.05%  7.10% 7/6/2020  12/18/2023   1,918   1,885   1,932   0.8%
Magneto & Diesel Acquisition, Inc. (Revolver) (f)  L+6.05%  7.10% 12/18/2018  12/18/2023   500         0.0%
               10,114   9,495   9,637   4.1%
Banking, Finance, Insurance & Real Estate                            
777 SPV I, LLC (g)  L+8.50%  10.25% 4/15/2019  4/14/2023   4,665   4,628   4,760   2.0%
J2 BWA Funding, LLC (Delayed Draw) (f) (g) (h)  n/a  10.00% 12/24/2020  12/24/2026   2,750         0.0%
Liftforward SPV II, LLC (g)  L+10.75%  11.25% 11/10/2016  6/30/2021   2,057   2,057   1,929   0.8%
NCBP Property, LLC (g)  L+9.50%  10.50% 12/18/2020  12/16/2022   1,950   1,931   1,931   0.8%
US Claims Litigation Funding, LLC (Revolver) (f) (g)  L+8.75%  9.75% 11/30/2020  11/29/2024   1,500   850   850   0.4%
               12,922   9,466   9,470   4.0%
Beverage, Food & Tobacco                            
LX/JT Intermediate Holdings, Inc. (j)  L+6.00%  7.50% 3/11/2020  3/11/2025   9,732   9,564   9,567   4.1%
LX/JT Intermediate Holdings, Inc. (Revolver) (f)  L+6.00%  7.50% 3/11/2020  3/11/2025   833         0.0%
Toojay’s Management, LLC (k)  n/a  n/a(l) 10/26/2018  10/26/2022   1,448   1,407      0.0%
Toojay’s Management, LLC (k)  n/a  n/a(l) 10/26/2018  10/26/2022   199   199      0.0%
Toojay’s Management, LLC (Revolver) (k)  n/a  n/a(l) 10/26/2018  10/26/2022   66   66      0.0%
               12,278   11,236   9,567   4.1%
Capital Equipment                            
MCP Shaw Acquisitionco, LLC (j)  L+6.50%  7.50% 2/28/2020  11/28/2025   9,924   9,752   9,721   4.2%
MCP Shaw Acquisitionco, LLC (Revolver) (f)  L+6.50%  7.50% 2/28/2020  11/28/2025   1,784         0.0%
               11,708   9,752   9,721   4.2%
Chemicals, Plastics & Rubber                            
Midwest Composite Technologies, LLC (j)  L+6.75%  7.75% 12/2/2019  8/31/2023   14,925   14,701   14,926   6.4%
Midwest Composite Technologies, LLC  L+6.75%  7.75% 8/31/2018  8/31/2023   887   876   887   0.4%
Midwest Composite Technologies, LLC (Delayed Draw) (f) (h)  L+6.75%  7.75% 8/31/2018  8/31/2023   509   179   179   0.1%
Midwest Composite Technologies, LLC (Revolver) (f)  L+6.75%  7.75% 8/31/2018  8/31/2023   90         0.0%
Valudor Products, LLC  L+7.50%  7.00% Cash / 1.50% PIK  6/18/2018  6/19/2023   1,561   1,543   1,702   0.7%
Valudor Products, LLC (m)  L+7.50%  8.50% PIK  6/18/2018  6/19/2023   217   214      0.0%
Valudor Products, LLC (Revolver) (f)  L+9.50%  10.50% 6/18/2018  6/19/2023   818   549   521   0.2%
               19,007   18,062   18,215   7.8%
Construction & Building                            
Cali Bamboo, LLC  L+9.50%  8.00% Cash/ 2.50% PIK  7/10/2015  3/31/2022   6,859   6,857   6,859   2.9%
Cali Bamboo, LLC (Revolver) (f)  L+9.50%  8.00% Cash/ 2.50% PIK  7/10/2015  3/31/2022   2,165         0.0%
Dude Solutions Holdings, Inc.  L+7.50%  8.50% 6/14/2019  6/13/2025   9,975   9,794   9,950   4.3%
Dude Solutions Holdings, Inc. (Revolver) (f)  L+7.50%  8.50% 6/14/2019  6/13/2025   1,304         0.0%
               20,303   16,651   16,809   7.2%
Consumer Goods: Durable                            
Franchise Group Intermediate Holdco, LLC  L+8.00%  9.50% 2/24/2020  2/14/2025   3,425   3,366   3,382   1.4%
Nova Wildcat Amerock, LLC  L+5.25%  6.25% 10/12/2018  10/12/2023   9,009   8,897   9,009   3.9%
Nova Wildcat Amerock, LLC (Revolver) (f)  L+5.25%  6.25% 10/12/2018  10/12/2023   931         0.0%
Parterre Flooring & Surface Systems, LLC (j)  L+9.00%  10.00%(l) 8/22/2017  8/22/2022   7,613   7,533   2,351   1.0%
Parterre Flooring & Surface Systems, LLC (Revolver)  L+9.00%  10.00%(l) 8/22/2017  8/22/2022   696   696   215   0.1%
               21,674   20,492   14,957   6.4%
Consumer Goods: Non-Durable                            
Thrasio, LLC  L+7.00%  8.00% 12/18/2020  12/18/2026   1,500   1,463   1,463   0.6%
Thrasio, LLC (Delayed Draw) (f) (h)  L+7.00%  8.00% 12/18/2020  12/18/2026   990         0.0%
               2,490   1,463   1,463   0.6%
Environmental Industries                            
Quest Resource Management Group, LLC  L+8.50%  9.75% 10/19/2020  10/20/2025   1,000   933   979   0.4%
Quest Resource Management Group, LLC (Delayed Draw) (f) (h)  L+8.50%  9.75% 10/19/2020  10/20/2025   1,087         0.0%
StormTrap, LLC  L+5.50%  6.50% 12/10/2018  12/8/2023   7,840   7,751   7,840   3.4%
StormTrap, LLC (Revolver) (f)  L+5.50%  6.50% 12/10/2018  12/8/2023   432         0.0%
Synergy Environmental Corporation (j)  L+6.00%  7.00% 4/29/2016  9/29/2023   2,885   2,874   2,888   1.2%
Synergy Environmental Corporation (j)  L+6.00%  7.00% 4/29/2016  9/29/2023   482   481   483   0.2%
Synergy Environmental Corporation  L+6.00%  7.00% 4/29/2016  9/29/2023   823   823   824   0.4%
Synergy Environmental Corporation (Revolver) (f)  L+6.00%  7.00% 4/29/2016  9/29/2023   671   67   67   0.0%
               15,220   12,929   13,081   5.6%

  

14

 

   

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized Cost  Fair Value (d)  % of
Net Assets (e)
 
Healthcare & Pharmaceuticals                       
American Optics Holdco, Inc. (g) (n)  L+6.50%  7.50% 9/13/2017  9/13/2022    2,165  2,148  2,165   0.9%
American Optics Holdco, Inc. (g) (n)  L+6.50%  7.50% 9/13/2017  9/13/2022   1,637   1,622   1,637   0.7%
American Optics Holdco, Inc. (Revolver) (f) (g) (n)  L+6.50%  7.50% 9/13/2017  9/13/2022   220         0.0%
American Optics Holdco, Inc. (Revolver) (f) (g) (n)  L+6.50%  7.50% 9/13/2017  9/13/2022   440         0.0%
Apotheco, LLC  L+8.50%  6.50% Cash / 3.00% PIK  4/8/2019  4/8/2024   3,541   3,491   3,315   1.4%
Apotheco, LLC (Revolver)  L+8.50%  6.50% Cash / 3.00% PIK  4/8/2019  4/8/2024   927   927   868   0.4%
Rockdale Blackhawk, LLC  n/a  n/a(o) 3/31/2015  n/a(i)        1,592   0.7%
Seran BioScience, LLC  L+7.25%  8.25% 12/31/2020  12/31/2025   2,500   2,450   2,450   1.0%
Seran BioScience, LLC (Revolver) (f)  L+7.25%  8.25% 12/31/2020  12/31/2025   444         0.0%
               11,874   10,638   12,027   5.1%
High Tech Industries                            
MarkLogic Corporation  L+8.00%  9.00% 10/20/2020  10/20/2025   3,500   3,415   3,544   1.5%
MarkLogic Corporation (Revolver) (f)  L+8.00%  9.00% 10/20/2020  10/20/2025   269         0.0%
Mindbody, Inc.  L+8.50%  8.00% Cash / 1.50% PIK  2/15/2019  2/14/2025   6,389   6,297   6,143   2.6%
Mindbody, Inc. (Revolver) (f)  L+8.00%  9.00% 2/15/2019  2/14/2025   667         0.0%
Newforma, Inc. (j)  L+5.00%  6.00% 6/30/2017  6/30/2022   11,899   11,836   11,899   5.1%
Newforma, Inc. (Revolver) (f)  L+5.00%  6.00% 6/30/2017  6/30/2022   1,250         0.0%
Planful, Inc. (fka Host Analytics, Inc.)  L+6.00%  7.00% 12/28/2018  12/28/2023   9,500   9,375   9,443   4.0%
Planful, Inc. (fka Host Analytics, Inc.) (Revolver) (f)  L+6.00%  7.00% 12/28/2018  12/28/2023   442   88   88   0.0%
RPL Bidco Limited (g) (n) (p)  L+7.50%  8.00% 11/9/2017  11/9/2023   14,429   13,867   14,429   6.2%
RPL Bidco Limited (g) (n) (p)  L+7.50%  8.00% 5/22/2018  11/9/2023   1,777   1,639   1,777   0.8%
RPL Bidco Limited (Revolver) (f) (g) (n) (p)  L+7.50%  8.00% 11/9/2017  11/9/2023   547         0.0%
               50,669   46,517   47,323   20.2%
Hotels, Gaming & Leisure                            
Equine Network, LLC  L+8.00%  9.00% 12/31/2020  12/31/2025   1,750   1,711   1,711   0.7%
Equine Network, LLC (Delayed Draw) (f) (h)  L+8.00%  9.00% 12/31/2020  12/31/2025   427         0.0%
Equine Network, LLC (Revolver) (f)  L+8.00%  9.00% 12/31/2020  12/31/2025   171         0.0%
               2,348   1,711   1,711   0.7%
Media: Advertising, Printing & Publishing                            
AdTheorent Holding Company, LLC  L+8.50%  9.00% 12/22/2016  12/22/2021   2,700   2,687   2,683   1.2%
Destination Media, Inc. (j)  L+5.50%  6.50% 4/7/2017  4/7/2022   4,324   4,304   4,315   1.8%
Destination Media, Inc. (Revolver)  L+5.50%  6.50% 4/7/2017  4/7/2022   542   542   542   0.2%
North Haven USHC Acquisition, Inc.  L+6.50%  7.50% 10/30/2020  10/30/2025   2,500   2,451   2,525   1.1%
North Haven USHC Acquisition, Inc. (Revolver) (f)  L+6.50%  7.50% 10/30/2020  10/30/2025   240         0.0%
Relevate Health Group, LLC  L+6.25%  7.25% 11/20/2020  11/20/2025   1,500   1,470   1,506   0.6%
Relevate Health Group, LLC (Delayed Draw) (f) (h)  L+6.25%  7.25% 11/20/2020  11/20/2025   789   671   674   0.3%
Relevate Health Group, LLC (Revolver) (f)  L+6.25%  7.25% 11/20/2020  11/20/2025   316         0.0%
Stratus Unlimited, LLC (fka MC Sign Lessor Corp.)  L+7.00%  8.00% 12/22/2017  8/30/2024   15,563   15,498   15,465   6.6%
Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) (Revolver) (f)  L+7.00%  8.00% 12/22/2017  8/30/2024   3,490         0.0%
XanEdu Publishing, Inc.  L+6.50%  7.50% 1/28/2020  1/28/2025   1,886   1,854   1,890   0.8%
XanEdu Publishing, Inc. (Revolver) (f)  L+6.50%  7.50% 1/28/2020  1/28/2025   495   197   197   0.1%
               34,345   29,674   29,797   12.7%
Media: Broadcasting & Subscription                            
Vice Group Holding, Inc.  L+12.00%  5.50% Cash/ 8.00% PIK  5/2/2019  11/2/2022   1,355   1,348   1,372   0.6%
Vice Group Holding, Inc.  L+12.00%  5.50% Cash/ 8.00% PIK  11/4/2019  11/2/2022   260   257   263   0.1%
Vice Group Holding, Inc.  L+12.00%  5.50% Cash/ 8.00% PIK  5/2/2019  11/2/2022   425   425   430   0.2%
Vice Group Holding, Inc.  L+12.00%  5.50% Cash/ 8.00% PIK  5/2/2019  11/2/2022   160   160   162   0.1%
               2,200   2,190   2,227   1.0%
Media: Diversified & Production                            
Attom Intermediate Holdco, LLC  L+5.75%  6.75% 1/4/2019  1/4/2024   1,960   1,935   1,927   0.8%
Attom Intermediate Holdco, LLC  L+7.50%  8.75% 6/25/2020  1/4/2024   478   469   492   0.2%
Attom Intermediate Holdco, LLC (Revolver) (f)  L+5.75%  6.75% 1/4/2019  1/4/2024   320         0.0%
Crownpeak Technology, Inc.  L+6.25%  7.25% 2/28/2019  2/28/2024   4,000   3,946   3,962   1.7%
Crownpeak Technology, Inc.  L+6.25%  7.25% 2/28/2019  2/28/2024   60   60   59   0.0%
Crownpeak Technology, Inc. (Revolver) (f)  L+6.25%  7.25% 2/28/2019  2/28/2024   167         0.0%
               6,985   6,410   6,440   2.7%
Retail                            
BLST Operating Company, LLC (fka Bluestem Brands, Inc.)  L+8.50%  1.00% Cash/ 9.00% PIK(l) 8/28/2020  8/28/2025   1,259   1,254   1,039   0.4%
Forman Mills, Inc. (j)  L+9.50%  8.50% Cash/ 2.00% PIK  1/14/2020  12/30/2022   1,308   1,308   1,292   0.5%
Forman Mills, Inc. (j)  L+9.50%  8.50% Cash/ 2.00% PIK  10/4/2016  12/30/2022   744   741   735   0.3%
Forman Mills, Inc. (j)  L+9.50%  8.50% Cash/ 2.00% PIK  10/4/2016  12/30/2022   7,459   7,429   6,944   3.0%
LuLu’s Fashion Lounge, LLC  L+9.50%  8.00% Cash/ 2.50% PIK  8/21/2017  8/29/2022   4,123   4,074   3,525   1.5%
The Worth Collection, Ltd. (j)  L+8.50%  9.00%(l) 9/29/2016  9/29/2021   10,587   10,248   120   0.1%
               25,480   25,054   13,655   5.8%

  

15

 

   

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized Cost  Fair Value (d)  % of
Net Assets (e)
 
Services: Business                            
Arcserve (USA), LLC  L+6.00%  7.00% 5/1/2019  5/1/2024   4,634   $4,567   $4,644   2.0%
Atlas Sign Industries of FLA, LLC (j)  L+11.50%  11.50% Cash/ 1.00% PIK  5/14/2018  5/15/2023   3,563   3,368   3,324   1.4%
Burroughs, Inc. (j)  L+7.50%  8.50% 12/22/2017  12/22/2022   5,726   5,681   5,726   2.4%
Burroughs, Inc. (Revolver) (f)  L+7.50%  8.50% 12/22/2017  12/22/2022   1,220   170   170   0.1%
Certify, Inc.  L+5.75%  6.75% 2/28/2019  2/28/2024   9,000   8,907   9,000   3.8%
Certify, Inc.  L+5.75%  6.75% 2/28/2019  2/28/2024   1,227   1,227   1,227   0.5%
Certify, Inc. (Revolver) (f)  L+5.75%  6.75% 2/28/2019  2/28/2024   409   102   102   0.0%
HS4 Acquisitionco, Inc.  L+6.75%  7.75% 7/9/2019  7/9/2025   10,050   9,887   9,929   4.2%
HS4 Acquisitionco, Inc. (Revolver) (f)  L+6.75%  7.75% 7/9/2019  7/9/2025   817         0.0%
IT Global Holding, LLC  L+9.00%  10.00% 11/15/2018  11/10/2023   9,975   9,845   9,794   4.2%
IT Global Holding, LLC  L+9.00%  10.00% 7/19/2019  11/10/2023   3,719   3,661   3,651   1.6%
IT Global Holding, LLC (Revolver)  L+9.00%  10.00% 11/15/2018  11/10/2023   875   875   875   0.4%
Madison Logic, Inc. (j)  L+7.50%  8.00% 11/30/2016  11/30/2021   9,080   9,037   9,080   3.9%
Madison Logic, Inc. (Revolver) (f)  L+7.50%  8.00% 11/30/2016  11/30/2021   988         0.0%
RedZone Robotics, Inc.  L+7.25%  7.75% Cash/ 0.50% PIK  6/1/2018  6/5/2023   591   585   556   0.2%
RedZone Robotics, Inc. (Revolver) (f)  L+6.75%  7.75% 6/1/2018  6/5/2023   158         0.0%
Security Services Acquisition Sub Corp. (j)  L+6.00%  7.00% 2/15/2019  2/15/2024   3,439   3,394   3,442   1.5%
Security Services Acquisition Sub Corp. (j)  L+6.00%  7.00% 2/15/2019  2/15/2024   2,473   2,473   2,476   1.1%
Security Services Acquisition Sub Corp. (j)  L+6.00%  7.00% 2/15/2019  2/15/2024   2,180   2,180   2,182   0.9%
Security Services Acquisition Sub Corp.  L+6.00%  7.00% 2/15/2019  2/15/2024   1,563   1,563   1,564   0.7%
VPS Holdings, LLC  L+7.00%  8.00% 10/5/2018  10/4/2024   3,663   3,611   3,469   1.5%
VPS Holdings, LLC  L+7.00%  8.00% 10/5/2018  10/4/2024   2,989   2,989   2,831   1.2%
VPS Holdings, LLC (Revolver) (f)  L+7.00%  8.00% 10/5/2018  10/4/2024   1,000   100   95   0.0%
               79,339   74,222   74,137   31.6%
Services: Consumer                            
Express Wash Acquisition Company, LLC  L+6.50%  7.50% 12/28/2020  12/26/2025   2,500   2,456   2,456   1.0%
Express Wash Acquisition Company, LLC (Revolver) (f)  L+6.50%  7.50% 12/28/2020  12/26/2025   1,000         0.0%
IDIG Parent, LLC (q)  L+6.50%  7.50% 12/15/2020  12/15/2026   10,200   9,997   9,996   4.3%
IDIG Parent, LLC (Delayed Draw) (f) (h)  L+6.50%  7.50% 12/15/2020  12/15/2026   1,684         0.0%
IDIG Parent, LLC (Revolver) (f)  L+6.50%  7.50% 12/15/2020  12/15/2026   723         0.0%
Mammoth Holdings, LLC  L+6.00%  7.00% 10/16/2018  10/16/2023   1,960   1,936   1,949   0.8%
Mammoth Holdings, LLC  L+6.00%  7.00% 10/16/2018  10/16/2023   4,115   4,115   4,092   1.8%
Mammoth Holdings, LLC (Revolver) (f)  L+6.00%  7.00% 10/16/2018  10/16/2023   500         0.0%
               22,682   18,504   18,493   7.9%
Wholesale                            
Nearly Natural, Inc. (j)  L+6.75%  7.75% 12/15/2017  12/15/2022   6,685   6,625   6,650   2.9%
Nearly Natural, Inc. (j)  L+6.75%  7.75% 9/22/2020  12/15/2022   1,728   1,698   1,719   0.7%
Nearly Natural, Inc. (j)  L+6.75%  7.75% 8/28/2019  12/15/2022   1,882   1,882   1,872   0.8%
Nearly Natural, Inc. (Revolver) (f)  L+6.75%  7.75% 12/15/2017  12/15/2022   2,397   959   959   0.4%
               12,692   11,164   11,200   4.8%
Total Non-Controlled/Non-Affiliate Senior Secured Loans              374,330   335,630   319,930   136.5%
                             
Unitranche Secured Loans (r)                            
Banking, Finance, Insurance & Real Estate                            
Kudu Investment Holdings, LLC (g)  L+5.75%  6.75% 12/23/2019  12/23/2025   7,932   7,849   7,971   3.4%
Kudu Investment Holdings, LLC (Delayed Draw) (f) (g) (h)  L+5.75%  6.75% 12/23/2019  12/23/2025   2,357   448   451   0.2%
               10,289   8,297   8,422   3.6%
Chemicals, Plastics & Rubber                            
MFG Chemical, LLC (j)  L+6.00%  6.50% 6/23/2017  6/23/2022   9,232   9,184   8,627   3.7%
MFG Chemical, LLC  L+6.00%  6.50% 3/15/2018  6/23/2022   976   976   912   0.4%
               10,208   10,160   9,539   4.1%
Consumer Goods: Durable                            
RugsUSA, LLC  L+6.00%  7.00% 5/2/2018  4/28/2023   3,937   3,918   3,936   1.7%
               3,937   3,918   3,936   1.7%
Healthcare & Pharmaceuticals                            
Priority Ambulance, LLC (s)  L+6.50%  7.50% 7/18/2018  4/12/2022   10,015   10,015   9,930   4.2%
Priority Ambulance, LLC (t)  L+6.50%  7.50% 4/12/2017  4/12/2022   1,253   1,242   1,243   0.5%
Priority Ambulance, LLC  L+6.50%  7.50% 12/13/2018  4/12/2022   672   672   666   0.3%
Priority Ambulance, LLC (Delayed Draw) (f) (h)  L+6.50%  7.50% 10/22/2020  4/12/2022   1,009         0.0%
               12,949   11,929   11,839   5.0%
High Tech Industries                            
Energy Services Group, LLC  L+8.42%  9.42% 5/4/2017  5/4/2022   3,948   3,930   3,948   1.7%
Energy Services Group, LLC (g) (p)  L+8.42%  9.42% 5/4/2017  5/4/2022   4,861   4,699   4,861   2.0%
Energy Services Group, LLC  L+8.42%  9.42% 5/4/2017  5/4/2022   1,124   1,110   1,124   0.5%
WillowTree, LLC  L+5.50%  6.50% 10/9/2018  10/9/2023   7,840   7,755   7,707   3.3%
               17,773   17,494   17,640   7.5%
Telecommunications                            
VB E1, LLC (Delayed Draw) (f) (h)  L+8.50%  9.00% 11/18/2020  11/18/2026   2,250   1,100   1,100   0.5%
               2,250   1,100   1,100   0.5%
Total Non-Controlled/Non-Affiliate Unitranche Secured Loans              57,406   52,898   52,476   22.4%

 

16

 

  

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized Cost  Fair Value (d)  % of
Net Assets (e)
 
Junior Secured Loans                        
Beverage, Food & Tobacco                        
California Pizza Kitchen, Inc.  L+12.50%  1.00% Cash/ 14.00% PIK(l)  8/19/2016  5/23/2025   1,264   $1,264   $1,011   0.4%
CSM Bakery Solutions, LLC  L+7.75%  8.75% 5/23/2013  2/4/2022   5,954   5,954   5,909   2.5%
               7,218   7,218   6,920   2.9%
Capital Equipment                            
ALTA Enterprises, LLC (g)  L+8.00%  9.80% 2/14/2020  8/13/2025   3,850   3,732   3,886   1.7%
               3,850   3,732   3,886   1.7%
High Tech Industries                            
Micro Holdings Corp.  L+7.50%  7.65% 8/16/2017  8/18/2025   3,000   2,981   3,024   1.3%
               3,000   2,981   3,024   1.3%
Services: Consumer                            
Education Corporation of America  L+11.00%  5.75% Cash/ 5.50% PIK(l)  9/3/2015  n/a(i)  833   831   762   0.3%
               833   831   762   0.3%
Total Non-Controlled/Non-Affiliate Junior Secured Loans              14,901   14,762   14,592   6.2%
                             
Equity Securities (u) (v)                            
Banking, Finance, Insurance & Real Estate                            
J2 BWA Funding, LLC (0.7% profit sharing) (g)   (w) 12/24/2020              0.0%
PKS Holdings, LLC (5,680 preferred units) (g)  n/a  5.00% PIK  11/30/2017        58   214   0.1%
PKS Holdings, LLC (5,714 preferred units) (g)  n/a  5.00% PIK  11/30/2017        9   33   0.0%
PKS Holdings, LLC (132 preferred units) (g)  n/a  5.00% PIK  11/30/2017        1   5   0.0%
PKS Holdings, LLC (916 preferred units) (g)  n/a  5.00% PIK  11/30/2017        9   33   0.0%
                   77   285   0.1%
Beverage, Food & Tobacco                            
California Pizza Kitchen, Inc. (78,699 preferred units)   (w) 8/19/2016        5,468   866   0.4%
                   5,468   866   0.4%
Capital Equipment                            
MCP Shaw Acquisitionco, LLC (118,906 Class A-2 units)   (w) 2/28/2020        119   143   0.1%
                   119   143   0.1%
Chemicals, Plastics & Rubber                            
Valudor Products, LLC (501,014 Class A-1 units)  n/a  10.00% PIK(l)  6/18/2018        501      0.0%
                   501      0.0%
Environmental Industries                            
Quest Resource Holding Corporation (warrant to purchase up to 0.2% of the equity)   (w) 10/19/2020  3/19/2028      67   87   0.0%
                   67   87   0.0%
Healthcare & Pharmaceuticals                            
Seran BioScience, LLC (33,333 common units)   (w) 12/31/2020        333   333   0.1%
                   333   333   0.1%
High Tech Industries                            
Answers Finance, LLC (76,539 shares of common stock)   (w) 4/14/2017        2,344   54   0.0%
MarkLogic Corporation (289,941 Class A units)   (w) 10/20/2020        290   286   0.1%
Planful, Inc. (fka Host Analytics, Inc.) (473,082 Class A units)  n/a   8.00% PIK  12/28/2018        473   603   0.3%
Recorded Future, Inc. (80,486 Class A units) (x)   (w) 7/3/2019        81   131   0.1%
                   3,188   1,074   0.5%
Hotels, Gaming & Leisure                            
Equine Network, LLC (60 Class A units)  n/a   10.00% PIK  12/31/2020        60   60   0.0%
                   60   60   0.0%
Media: Advertising, Printing & Publishing                            
AdTheorent Holding Company, LLC (128,866 Class A voting units)   (w) 12/22/2016        129   445   0.2%
InMobi Pte, Ltd. (warrant to purchase up to 2.8% of the equity) (g) (n)   (w) 9/18/2015  9/18/2025         203   0.1%

Relevate Health Group, LLC (40 preferred units) 

  n/a   12.00% PIK  11/20/2020        40   40   0.0%
Relevate Health Group, LLC (40 Class B common units)   (w) 11/20/2020           1   0.0%
Stratus Unlimited, LLC (fka MC Sign Lessor Corp.) (686 shares of common units)   (w) 8/30/2019        872   996   0.4%
XanEdu Publishing, Inc. (49,479 Class A units)  n/a  8.00% PIK  1/28/2020        49   71   0.0%
                   1,090   1,756   0.7%
Media: Diversified & Production                            
Attom Intermediate Holdco, LLC (297,197 Class A units)   (w) 1/4/2019        297   371   0.2%
                   297   371   0.2%
Retail                            
BLST Operating Company, LLC (fka Bluestem Brands, Inc.) (139,883 Class A units)   (w) 8/28/2020  —       1,072   140   0.1%
Forman Mills, Inc. (warrant to purchase up to 2.6% of the equity)   (w) 1/14/2020  1/14/2029         48   0.0%
The Tie Bar Operating Company, LLC - Class A preferred units (1,275 units)   (w) 6/25/2013        87   4   0.0%
The Tie Bar Operating Company, LLC - Class B preferred units (1,275 units)   (w) 6/25/2013              0.0%
                   1,159   192   0.1%
Services: Business                            
APCO Worldwide, Inc. (100 Class A voting common stock)   (w) 11/1/2017        395   433   0.2%
Atlas Sign Industries of FLA, LLC (warrant to purchase up to 0.8% of the equity)   (w) 5/14/2018  5/14/2026      125   35   0.0%
                   520   468   0.2%
Services: Consumer                            
Education Corporation of America - Series G preferred stock (8,333 shares)  n/a  12.00% PIK(l)  9/3/2015        7,492   5,117   2.2%
Express Wash Acquisition Company, LLC (100,000 Class A units)  n/a   8.00% PIK  12/28/2020        100   100   0.0%
                   7,592   5,217   2.2%

  

17

 

   

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread Above
 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized Cost  Fair Value (d)  % of
Net Assets (e)
 
Wholesale                            
Nearly Natural, Inc. (152,174 Class A units)   (w) 12/15/2017        $152   $190   0.1%
                   152   190   0.1%
Total Non-Controlled/Non-Affiliate Equity Securities                  20,623   11,042   4.7%
Total Non-Controlled/Non-Affiliate Company Investments                 $423,913  $398,040   169.8%
                             
Non-Controlled Affiliate Company Investments (y)                            
Senior Secured Loans                            
Banking, Finance, Insurance & Real Estate                            
American Community Homes, Inc.  L+10.00%  11.50% PIK  7/22/2014  2/26/2021   9,401  $9,401  $9,401   4.0%
American Community Homes, Inc.  L+14.50%  16.00% PIK  7/22/2014  2/26/2021   6,239   6,239   6,239   2.7%
American Community Homes, Inc.  L+14.50%  16.00% PIK  3/17/2016  2/26/2021   825   825   825   0.4%
American Community Homes, Inc.  L+10.00%  11.50% PIK  5/24/2017  2/26/2021   570   570   570   0.2%
American Community Homes, Inc.  L+14.50%  16.00% PIK  5/24/2017  2/26/2021   335   335   335   0.2%
American Community Homes, Inc.  L+10.00%  11.50% PIK  8/10/2018  2/26/2021   2,095   2,095   2,915   1.2%
American Community Homes, Inc.  L+10.00%  11.50% PIK  3/29/2019  2/26/2021   3,879   3,879   3,879   1.7%
American Community Homes, Inc.  L+10.00%  11.50% PIK  9/30/2019  2/26/2021   18   18   18   0.0%
American Community Homes, Inc.  L+10.00%  11.50% PIK  12/30/2019  2/26/2021   89   89   89   0.0%
HFZ Capital Group, LLC (g) (af)  L+12.50%  14.00% PIK 10/20/2017  n/a(i)  13,242   13,242   13,106   5.6%
HFZ Capital Group, LLC (g) (af)  L+12.50%  14.00% PIK 10/20/2017  n/a(i)  4,758   4,758   4,709   2.0%
MC Asset Management (Industrial), LLC (g) (af)  L+17.00%  18.00% PIK 6/11/2019  10/30/2024   10,702   10,695   11,579   4.9%
               52,153   52,146   53,665   22.9%
Beverage, Food & Tobacco                            
TJ Management HoldCo, LLC (Revolver) (f) (k)  L+5.50%  6.50% 9/9/2020  9/8/2023   795         0.0%
               795         0.0%
Containers, Packaging & Glass                            
Summit Container Corporation  L+8.00%  9.00% 12/5/2013  3/31/2021   3,259   3,269   3,204   1.4%
Summit Container Corporation (Revolver) (f)  L+8.00%  9.00% 6/15/2018  3/31/2021   6,015   1,657   1,654   0.7%
               9,274   4,926   4,858   2.1%
Healthcare & Pharmaceuticals                            
Ascent Midco, LLC (j)  L+5.50%  6.50% 2/5/2020  2/5/2025   6,930   6,814   6,997   3.0%
Ascent Midco, LLC (Delayed Draw) (f) (h) (j)  L+5.50%  6.50% 2/5/2020  2/5/2025   2,838         0.0%
Ascent Midco, LLC (Revolver) (f)  L+5.50%  6.50% 2/5/2020  2/5/2025   1,129         0.0%
SHI Holdings, Inc. (j)  L+10.75%  10.90% PIK(l) 7/10/2014  n/a(i)  2,899   2,897   188   0.1%
SHI Holdings, Inc. (Revolver) (f)  L+10.75%  10.90% PIK(l) 7/10/2014  n/a(i)  4,667   4,585   297   0.1%
               18,463   14,296   7,482   3.2%
High Tech Industries                            
Mnine Holdings, Inc.  L+8.00%  4.00% Cash/ 5.00% PIK  11/2/2018  12/30/2022   11,768   11,665   12,356   5.3%
               11,768   11,665   12,356   5.3%
Retail                            
Luxury Optical Holdings Co.  L+8.00%  9.00% PIK(l) 9/12/2014  12/15/2021   1,481   1,481   1,430   0.6%
Luxury Optical Holdings Co. (Delayed Draw) (f) (h)  L+11.50%  12.50%(l) 9/29/2017  12/15/2021   3,565   624   624   0.3%
Luxury Optical Holdings Co. (Revolver)  L+8.00%  9.00% PIK(l) 9/12/2014  12/15/2021   68   68   66   0.0%
               5,114   2,173   2,120   0.9%
Services: Business                            
Curion Holdings, LLC (j)  n/a  14.00% PIK(l) 5/2/2017  5/2/2022   4,226   4,189   3,159  ��1.4%
Curion Holdings, LLC (Revolver) (f)  n/a  14.00% PIK(l) 5/2/2017  5/2/2022   871   836   820   0.3%
               5,097   5,025   3,979   1.7%
Services: Consumer                            
NECB Collections, LLC (Revolver) (f)  L+11.00%  12.00% PIK(l) 6/25/2019  6/30/2021   1,356   1,312   834   0.3%
               1,356   1,312   834   0.3%
Total Non-Controlled Affiliate Senior Secured Loans              104,020   91,543   85,294   36.4%
                             
Unitranche Secured Loans (r)                            
Consumer Goods: Non-Durable                            
Incipio, LLC (z)  L+8.50%  9.50% PIK(l) 12/26/2014  8/22/2022   14,701   14,677   1,764   0.8%
Incipio, LLC (aa)  L+8.50%  9.50% PIK  3/9/2018  8/22/2022   4,278   4,278   4,227   1.8%
Incipio, LLC  L+8.50%  9.50% PIK  7/6/2018  8/22/2022   1,818   1,818   1,805   0.8%
Incipio, LLC  L+8.50%  9.50% PIK  1/15/2020  8/22/2022   1,530   1,530   1,519   0.6%
Incipio, LLC  L+8.50%  9.50% PIK  4/17/2019  8/22/2022   766   766   761   0.3%
Incipio, LLC (Delayed Draw) (f) (h)  L+8.50%  9.50% PIK  7/8/2020  8/22/2022   2,525   1,498   1,488   0.6%
               25,618   24,567   11,564   4.9%
Total Non-Controlled Affiliate Unitranche Secured Loans              25,618   24,567   11,564   4.9%
                             
Junior Secured Loans                            
Consumer Goods: Non-Durable                            
Incipio, LLC (ab)  n/a  10.70% PIK(l) 6/18/2018  8/22/2022   3,766         0.0%
Incipio, LLC (ac)  n/a  10.70% PIK(l) 6/18/2018  8/22/2022   7,194         0.0%
               10,960         0.0%

  

18

 

   

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Portfolio Company (a) Spread
Above

 Index (b)
 Interest
Rate
  Acquisition
Date (c)
 Maturity  Principal  Amortized
Cost
  Fair
Value (d)
  % of
Net Assets (e)
 
Services: Business                            
Curion Holdings, LLC (j)  n/a  15.00% PIK(l)  8/17/2018  1/2/2023   1,720   $1   $   0.0%
Curion Holdings, LLC (j)  n/a  15.00% PIK(l)  8/17/2018  1/2/2023   44         0.0%
               1,764   1      0.0%
Total Non-Controlled Affiliate Company Junior Secured Loans              12,724   1      0.0%
                             
Equity Securities (v) (y)                            
Banking, Finance, Insurance & Real Estate                            
American Community Homes, Inc. (warrant to purchase up to 22.3% of the equity)   (w) 10/9/2014  12/18/2024            0.0%
MC Asset Management (Corporate), LLC (15.9% of interests) (g) (af)   (w) 6/11/2019        793   785   0.3%
                   793   785   0.3%
Beverage, Food & Tobacco                            
TJ Management HoldCo, LLC (16 shares of common stock) (k)   (w) 9/9/2020        2,386   3,323   1.4%
                   2,386   3,323   1.4%
Consumer Goods: Non-Durable                            
Incipio, LLC (1,774 shares of Series C common units)   (w) 7/6/2018              0.0%
                         0.0%
Containers, Packaging & Glass                            
Summit Container Corporation (warrant to purchase up to 19.5% of the equity)   (w) 1/6/2014  1/6/2024         139   0.1%
                      139   0.1%
Healthcare & Pharmaceuticals                            
Ascent Midco, LLC (2,032,258 Class A units)  n/a  8.00% PIK  2/5/2020        2,032   3,016   1.3%
Familia Dental Group Holdings, LLC (1,052 Class A units) (ad)   (w) 4/8/2016        3,602   3,118   1.3%
SHI Holdings, Inc. (24 shares of common stock)   (w) 12/14/2016        27      0.0%
                   5,661   6,134   2.6%
High Tech Industries                            
 Mnine Holdings, Inc. (6,400 Class B units)   (w) 6/30/2020              0.0%
                         0.0%
Retail                            
Luxury Optical Holdings Co. (91 preferred units)  n/a  15.00% PIK(l)  9/12/2014        3,631   2,476   1.1%
Luxury Optical Holdings Co. (86 shares of common stock)   (w) 9/29/2017              0.0%
                   3,631   2,476   1.1%
Services: Business                            
Curion Holdings, LLC (58,779 shares of common stock)   (w) 8/17/2018              0.0%
                         0.0%
Services: Consumer                            
NECB Collections, LLC (20.8% of units)   (w) 6/21/2019        1,458      0.0%
                   1,458      0.0%
Total Non-Controlled Affiliate Equity Securities                  13,929   12,857   5.5%
Total Non-Controlled Affiliate Company Investments                 $130,040  $109,715   46.8%
                             
Controlled Affiliate Company Investments (ae)                            
Equity Securities                            
Investment Funds & Vehicles                            
MRCC Senior Loan Fund I, LLC (50.0% of the equity interests) (g)     10/31/2017       $42,150  $39,284   16.7%
Total Controlled Affiliate Equity Securities                  42,150   39,284   16.7%
Total Controlled Affiliate Company Investments                 $42,150  $39,284   16.7%
                             
TOTAL INVESTMENTS                 $596,103  $547,039   233.3%

  

19

 

  

MONROE CAPITAL CORPORATION 

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued) 

December 31, 2020 

(in thousands, except for shares and units)

 

Derivative Instruments

 

Foreign currency forward contracts

 

  Notional Amount  Notional Amount      Unrealized Gain 
Description to be Purchased  to be Sold  Counterparty Settlement Date (Loss) 
Foreign currency forward contract $107  £87  Bannockburn Global Forex, LLC 1/4/2021 $(12)
Foreign currency forward contract $264  £206  Bannockburn Global Forex, LLC 3/3/2021  (18)
Foreign currency forward contract $33  £26  Bannockburn Global Forex, LLC 3/3/2021  (2)
Foreign currency forward contract $103  £84  Bannockburn Global Forex, LLC 4/2/2021  (12)
Foreign currency forward contract $271  £212  Bannockburn Global Forex, LLC 6/1/2021  (19)
Foreign currency forward contract $33  £26  Bannockburn Global Forex, LLC 6/1/2021  (2)
Foreign currency forward contract $103  £83  Bannockburn Global Forex, LLC 7/2/2021  (11)
Foreign currency forward contract $102  £83  Bannockburn Global Forex, LLC 10/4/2021  (11)
Foreign currency forward contract $101  £82  Bannockburn Global Forex, LLC 1/3/2022  (11)
Foreign currency forward contract $97  £79  Bannockburn Global Forex, LLC 4/4/2022  (11)
Foreign currency forward contract $36  £29  Bannockburn Global Forex, LLC 5/6/2022  (4)
              $(113)

 

 
(a)All of the Company’s investments are issued by eligible portfolio companies, as defined in the Investment Company Act of 1940 (the “1940 Act”), unless otherwise noted. All of the Company’s investments are issued by U.S. portfolio companies unless otherwise noted.
(b)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”) 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 or Prime and the current contractual interest rate in effect at December 31, 2020. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap. Certain investments contain a payment-in-kind (“PIK”) provision.
(c)Except as otherwise noted, all of the Company’s portfolio company investments, which as of December 31, 2020 represented 233.3% of the Company’s net assets or 93.5% of the Company’s total assets, are subject to legal restrictions on sales.
(d)Because there is no readily available market value for these investments, the fair value of these investments is determined in good faith using significant unobservable inputs by the Company’s board of directors as required by the 1940 Act. (See Note 4 in the accompanying notes to the consolidated financial statements.)
(e)Percentages are based on net assets of $234,434 as of December 31, 2020.
(f)All or a portion of this commitment was unfunded at December 31, 2020. As such, interest is earned only on the funded portion of this commitment.
(g)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, 2020, non-qualifying assets totaled 19.9% of the Company’s total assets.
(h)This delayed draw loan requires that certain financial covenants be met by the portfolio company prior to any fundings.
(i)This is a demand note with no stated maturity.
(j)All of this loan is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(k)During the three months ended September 30, 2020, the senior secured lender group of Toojay’s Management, LLC (“Toojay’s OldCo”) established TJ Management HoldCo, LLC (“Toojay’s NewCo”) in order to acquire certain of the assets of Toojay’s OldCo as part of a bankruptcy restructuring. The Company owns 15.9% of the equity in Toojay’s NewCo. Toojay’s NewCo credit bid a portion of the senior secured debt in Toojay’s OldCo to acquire certain assets of Toojay’s OldCo which constitute the ongoing operations of the portfolio company. The Company’s portion of this credit bid was $2,386, and as such the Company’s outstanding senior secured debt investment in Toojay’s OldCo was reduced by the amount of the credit bid and the Company’s cost basis of its new equity investment in Toojay’s NewCo was increased by the amount of the credit bid. While the Company still has loans outstanding at Toojay’s OldCo, the Company has valued these positions at zero as of December 31, 2020.
(l)This position was on non-accrual status as of December 31, 2020, 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.

(m)This investment represents a note convertible to preferred shares of the borrower.
(n)This is an international company.
(o)In May 2020, an arbitrator issued a final award in favor of the estate of Rockdale Blackhawk, LLC (the “Estate”) in the legal proceeding between the Estate and a national insurance carrier. The Company’s share of the net proceeds from the award exceeded the contractual obligations due to the Company as a result of the Company’s right to receive excess proceeds pursuant to the terms of a sharing agreement between the lenders and the Estate. In June 2020, the Company received $33,135 as an initial payment of proceeds from the legal proceedings from the Estate, of which $19,540 was recorded as a reduction in the cost basis of the Company’s investment in Rockdale, $3,878 was recorded as the collection of previously accrued interest, $7,378 was recorded as investment income for previously unaccrued interest and fees and $2,339 was recorded as realized gains. Additionally, as an offset, the Company recorded net change in unrealized (loss) of ($8,243) primarily as a result of the reversal associated with the collection of proceeds from the Estate. Total net income associated with the Company’s investment in Rockdale was $1,887 during the year ended December 31, 2020. As of December 31, 2020, the Company has this remaining investment in Rockdale associated with residual proceeds currently expected from the Estate. This investment is a non-income producing security.
(p)This loan is denominated in Great Britain pounds and is translated into U.S. dollars as of the valuation date.
(q)As of December 31, 2020, the Company was party to a subscription agreement with a commitment to fund an equity investment of $289.
(r)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, are 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.
(s)A portion of this loan (principal of $9,258) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(t)A portion of this loan (principal of $525) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(u)Represents less than 5% ownership of the portfolio company’s voting securities.
(v)Ownership of certain equity investments may occur through a holding company or partnership.
(w)Represents a non-income producing security.
(x)As of December 31, 2020, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $16.
(y)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).
(z)A portion of this loan (principal of $5,390) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(aa)A portion of this loan (principal of $54) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ab)A portion of this loan (principal of $1,015) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ac)A portion of this loan (principal of $1,938) is held in the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP, and is therefore not collateral to the Company’s revolving credit facility.
(ad)As of December 31, 2020, the Company was party to a subscription agreement with a commitment to fund an additional equity investment of $611.
(ae)As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and to “Control” this portfolio company as it owns more than 25% 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 both an Affiliated Person and a portfolio company that the Company is deemed to control.
(af)

The Company restructured its investments in HFZ Capital Group LLC (“HFZ”) and HFZ Member RB portfolio, LLC (“Member RB”) during the three months ended December 31, 2020. As part of the restructuring of HFZ, the Company obtained a 15.9% equity interest in MC Asset Management (Corporate), LLC (“Corporate”). As part of the Member RB restructuring, the Company exchanged its loan in Member RB for a promissory note in MC Asset Management (Industrial), LLC (“Industrial”). Corporate owns 100% of the equity of Industrial. In conjunction with these restructurings, the Company participated $4,758 of principal of its loan to HFZ as an equity contribution to Industrial. This participation did not qualify for sale accounting under ASC Topic 860 – Transfers and Servicing because the sale did not meet the definition of a “participating interest”, as defined in the guidance, in order for sale treatment to be allowed. As a result, the Company continues to reflect its full investment in HFZ but has split the loan into two investments.

n/a - not applicable

 

See Notes to Consolidated Financial Statements.

  

20

 

  

MONROE CAPITAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(unaudited)

(in thousands, except share and per share data)

 

Note 1. Organization and Principal Business

 

Monroe Capital Corporation (together with its subsidiaries, the “Company”) is an externally managed, non-diversified, closed-end management investment company and has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through investment in senior secured, junior secured and unitranche secured (a combination of senior secured and junior secured debt in the same facility in which the Company syndicates a “first out” portion of the loan to an investor and retains a “last out” portion of the loan) debt and, to a lesser extent, unsecured subordinated debt and equity investments. The Company is managed by Monroe Capital BDC Advisors, LLC (“MC Advisors”), a registered investment adviser under the Investment Advisers Act of 1940, as amended. In addition, for U.S. federal income tax purposes, the Company has elected to be treated as a regulated investment company (“RIC”) under Subchapter M of the Internal Revenue Code of 1986, as amended (the “Code”).

 

On February 28, 2014, the Company’s wholly-owned subsidiary, Monroe Capital Corporation SBIC, LP (“MRCC SBIC”), a Delaware limited partnership, received a license from the Small Business Administration (“SBA”) to operate as a Small Business Investment Company (“SBIC”) under Section 301(c) of the Small Business Investment Act of 1958, as amended. MRCC SBIC commenced operations on September 16, 2013. See Note 7 for additional information.

 

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”).

 

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.

 

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 the Company’s wholly-owned subsidiaries, including MRCC SBIC and its wholly-owned general partner MCC SBIC GP, LLC, and the Company’s wholly-owned taxable subsidiaries (the “Taxable Subsidies”) 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. 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. The Company does not consolidate its non-controlling interest in MRCC Senior Loan Fund I, LLC (“SLF”). See further description of the Company’s investment in SLF in Note 3.

 

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 has been 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 months ended March 31, 2021 and 2020, the Company received return of capital distributions from its equity investments and its investment in LLC equity interest in SLF of $60 and zero, respectively.

 

21

 

 

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 of this income must be paid out to stockholders in the form of distributions, even though the Company has not yet collected the cash.

 

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 $4,263 and $4,844 as of March 31, 2021 and December 31, 2020, respectively. Upfront loan origination and closing fees received for the three months ended March 31, 2021 and 2020, totaled $465 and $975, 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 March 31, 
  2021  2020 
Interest income $8,961  $11,979 
PIK interest income  1,679   1,076 
Dividend income (1)  1,262   1,191 
Fee income  477   198 
Prepayment gain (loss)  482   214 
Accretion of discounts and amortization of premium  352   344 
Total investment income $13,213  $15,002 

 

 

(1)Includes PIK dividends of $62 and $41, 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 by the Company’s board of directors (the “Board”) 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, and, in management’s judgment are likely to remain current. The fair value of the Company’s investments on non-accrual status totaled $27,277 and $22,273 at March 31, 2021 and December 31, 2020, respectively.

 

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 each quarter and is generally based upon the Company’s earnings 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.

 

In October 2012, the Company adopted a dividend reinvestment plan (“DRIP”) that provides for the reinvestment of dividends on behalf of its stockholders, unless a stockholder has elected to receive dividends in cash. When the Company declares a cash dividend, the Company’s stockholders who have not “opted out” of the DRIP at least three days prior to the dividend payment date will have their cash dividend automatically reinvested into additional shares of the Company’s common stock. The Company has the option to satisfy the share requirements of the DRIP through the issuance of new shares of common stock or through open market purchases of common stock by the DRIP plan administrator. Newly issued shares are valued based upon the final closing price of the Company’s common stock on a date determined by the Board. Shares purchased in the open market to satisfy the DRIP requirements will be valued based upon the average price of the applicable shares purchased by the DRIP plan administrator, before any associated brokerage or other costs. 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 limits.

 

Restricted Cash

 

Restricted cash includes amounts held within MRCC SBIC. Cash held within an SBIC is generally restricted to the originations of new loans from the SBIC and the payment of SBA debentures and related interest expense.

  

22

 

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, 2021 and December 31, 2020, the Company had unamortized deferred financing costs of $7,715 and $7,052 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 months ended March 31, 2021 and 2020 was $601 and $484, respectively.

 

Offering Costs

 

Offering costs include, among other things, fees paid in relation to legal, accounting, regulatory and printing work completed in preparation of debt and equity offerings. Offering costs from equity offerings are charged against the proceeds from the offering within the consolidated statements of changes in net assets. Offering costs from debt offerings are reclassified to unamortized deferred financing costs on the consolidated statements of assets and liabilities as noted above. As of March 31, 2021 and December 31, 2020, other assets on the consolidated statements of assets and liabilities included $143 and $562, respectively, of deferred offering costs which will be charged against the proceeds from future debt or equity offerings when completed.

 

Investments Denominated in Foreign Currency

 

As of March 31, 2021, the Company held investments in two portfolio companies that were denominated in Great Britain pounds and one portfolio company that was denominated in Australian dollars. As of December 31, 2020, the Company held investments in two portfolio companies that were denominated in Great Britain pounds.

 

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.

 

Derivative Instruments

 

The Company may 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 so as to qualify for the tax treatment available to RICs. To maintain qualification as a RIC, the Company 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 the Company’s “investment company taxable income,” which is generally the Company’s net ordinary income plus the excess, if any, of realized net short-term capital gains over realized net long-term capital losses. If the Company qualifies as a RIC and satisfies the annual distribution requirement, the Company will not have to pay corporate-level federal income taxes on any income that the Company distributes to its stockholders. The Company intends to make distributions in an amount sufficient to maintain RIC status each year and to avoid any federal income taxes on income. The Company is also subject to nondeductible federal excise taxes if the Company does not distribute at least 98% of net ordinary income, 98.2% of any capital gain net income, if any, and any recognized and undistributed income from prior years for which it paid no federal income taxes. To the extent that the Company determines that its estimated current year annual taxable income may exceed estimated current year dividend distributions, the Company accrues excise tax, calculated as 4% of the estimated excess taxable income, if any, as taxable income is earned. For the three months ended March 31, 2021 and 2020, the Company recorded a net expense on the consolidated statements of operations of $30 and $20, respectively, for U.S. federal excise tax. As of March 31, 2021 and December 31, 2020, the Company had a receivable of $64 and a payable of $306 for excise taxes, respectively, which were included in accounts payable and accrued expenses on the Company’s consolidated statements of assets and liabilities.

 

The Company’s consolidated Taxable Subsidiaries may be subject to U.S. federal and state corporate-level income taxes. For both the three months ended March 31, 2021 and 2020, the Company did not record a net tax expense on the consolidated statements of operations for these Taxable Subsidiaries. As of both March 31, 2021 and December 31, 2020, 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, 2021. The 2017 through 2020 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, 2021.

 

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, 2022. Management is currently evaluating the impact of the optional guidance on the Company’s consolidated financial statements and disclosures. The Company did not utilize the optional expedients and exceptions provided by ASU 2020-04 during the three months ended March 31, 2021.

 

23

 

 

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, 2021  December 31, 2020 
Amortized Cost:                
Senior secured loans $411,723   72.8% $427,173   71.7%
Unitranche secured loans  65,285   11.5   77,465   13.0 
Junior secured loans  11,884   2.1   14,763   2.4 
LLC equity interest in SLF  42,150   7.5   42,150   7.1 
Equity securities  34,779   6.1   34,552   5.8 
Total $565,821   100.0% $596,103   100.0%

 

  March 31, 2021  December 31, 2020 
Fair Value:                
Senior secured loans $392,399   75.2% $405,224   74.1%
Unitranche secured loans  48,298   9.3   64,040   11.7 
Junior secured loans  11,999   2.3   14,592   2.6 
LLC equity interest in SLF  41,067   7.9   39,284   7.2 
Equity securities  27,616   5.3   23,899   4.4 
Total $521,379   100.0% $547,039   100.0%

 

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, 2021  December 31, 2020 
Amortized Cost:                
  International $ 28,909   5.1% $19,276   3.2%
Midwest   144,718   25.6   149,468   25.1 
Northeast   127,036   22.5   139,553   23.4 
Southeast   129,177   22.8   142,721   24.0 
Southwest   25,434   4.5   23,857   4.0 
West   110,547   19.5   121,228   20.3 
Total $565,821   100.0% $596,103   100.0%

 

  March 31, 2021  December 31, 2020 
Fair Value:                
  International $ 29,440   5.6% $20,008   3.7%
Midwest   142,285   27.3   144,261   26.4 
Northeast   112,437   21.6   123,349   22.5 
Southeast   126,011   24.2   138,406   25.3 
Southwest   27,535   5.3   25,557   4.7 
West   83,671   16.0   95,458   17.4 
Total $521,379   100.0% $547,039   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, 2021  December 31, 2020 
Amortized Cost:                
Automotive $ 9,471   1.7% $9,495   1.6%
Banking, Finance, Insurance & Real Estate   74,799   13.2   70,779   11.9 
Beverage, Food & Tobacco   26,392   4.7   26,308   4.4 
Capital Equipment   13,527   2.4   13,603   2.3 
Chemicals, Plastics & Rubber   29,178   5.1   28,723   4.8 
Construction & Building   16,695   3.0   16,651   2.8 
Consumer Goods: Durable   6,203   1.1   24,410   4.1 
Consumer Goods: Non-Durable   26,227   4.6   26,030   4.3 
Containers, Packaging & Glass        4,926   0.8 
Environmental Industries   12,970   2.3   12,996   2.2 
Healthcare & Pharmaceuticals   46,771   8.3   42,857   7.2 
High Tech Industries   84,811   15.0   81,845   13.7 
Hotels, Gaming & Leisure   2,590   0.5   1,771   0.3 
Investment Funds & Vehicles   42,150   7.4   42,150   7.1 
Media: Advertising, Printing & Publishing   29,108   5.1   30,764   5.1 
Media: Broadcasting & Subscription   2,326   0.4   2,190   0.4 
Media: Diversified & Production   6,709   1.2   6,707   1.1 
Retail   32,985   5.8   32,017   5.4 
Services: Business   62,353   11.0   79,768   13.4 
Services: Consumer   25,540   4.5   29,697   5.0 
Telecommunications   1,100   0.2   1,100   0.2 
Wholesale   13,916   2.5   11,316   1.9 
Total $565,821   100.0% $596,103   100.0%

 

24

 

 

  March 31, 2021  December 31, 2020 
Fair Value:                
Automotive $ 9,603   1.9% $9,637   1.8%
Banking, Finance, Insurance & Real Estate   77,959   15.0    72,627   13.3 
Beverage, Food & Tobacco   21,767   4.2   20,676   3.8 
Capital Equipment   13,890   2.7   13,750   2.5 
Chemicals, Plastics & Rubber   28,879   5.5   27,754   5.1 
Construction & Building   16,855   3.2   16,809   3.0 
Consumer Goods: Durable   475   0.1   18,893   3.4 
Consumer Goods: Non-Durable   9,061   1.7   13,027   2.4 
Containers, Packaging & Glass        4,997   0.9 
Environmental Industries   13,218   2.5   13,168   2.4 
Healthcare & Pharmaceuticals   42,179   8.1   37,815   6.9 
High Tech Industries   84,886   16.3   81,417   14.9 
Hotels, Gaming & Leisure   2,651   0.5   1,771   0.3 
Investment Funds & Vehicles   41,067   7.9    39,284   7.2 
Media: Advertising, Printing & Publishing   31,623   6.1   31,553   5.8 
Media: Broadcasting & Subscription   2,335   0.4   2,227   0.4 
Media: Diversified & Production   6,889   1.3    6,811   1.2 
Retail   19,404   3.7   18,443   3.4 
Services: Business   62,071   11.9   78,584   14.4 
Services: Consumer   21,363   4.1   25,306   4.6 
Telecommunications   1,102   0.2   1,100   0.2 
Wholesale   14,102   2.7   11,390   2.1 
Total $521,379   100.0% $547,039   100.0%

 

MRCC Senior Loan Fund I, LLC

 

The Company co-invests with Life Insurance Company of the Southwest (“LSW”) in senior secured loans through SLF, an unconsolidated Delaware LLC. SLF is capitalized as underlying investment transactions are completed, taking into account available debt and equity commitments available for funding these investments. All portfolio and investment decisions in respect to SLF must be approved by the SLF investment committee, consisting of one representative from the Company and one representative from LSW. SLF may cease making new investments upon notification of either member but operations will continue until all investments have been sold or paid-off in the normal course of business. Investments held by SLF are measured at fair value using the same valuation methodologies as described in Note 4. The Company’s investment is illiquid in nature as SLF does not allow for withdrawal from the LLC or the sale of a member’s interest unless approved by the board members of SLF. The full withdrawal of a member would result in an orderly wind-down of SLF.

  

SLF’s profits and losses are allocated to the Company and LSW in accordance with their respective ownership interests. As of both March 31, 2021 and December 31, 2020, the Company and LSW each owned 50.0% of the LLC equity interests of SLF. As of both March 31, 2021 and December 31, 2020, SLF had $100,000 in equity commitments from its members (in the aggregate), of which $84,300 was funded.

 

As of both March 31, 2021 and December 31, 2020, the Company had committed to fund $50,000 of LLC equity interest subscriptions to SLF. As of both March 31, 2021 and December 31, 2020, $42,150 of the Company’s LLC equity interest subscriptions to SLF had been called and contributed, net of return of capital distributions subject to recall.

 

For the three months ended March 31, 2021 and 2020, the Company received $1,200 and $1,150 of dividend income from its LLC equity interest in SLF, respectively.

 

SLF has a senior secured revolving credit facility (as amended, the “SLF Credit Facility”) with Capital One, N.A., through its wholly-owned subsidiary MRCC Senior Loan Fund I Financing SPV, LLC (“SLF SPV”), which as of March 31, 2021 allowed SLF SPV to borrow up to $170,000 at any one time, subject to leverage and borrowing base restrictions. Borrowings under the SLF Credit Facility bear interest at an annual rate of LIBOR (three-month) plus 2.25%. The maturity date on the SLF Credit Facility is March 22, 2023.

 

SLF does not pay any fees to MC Advisors or its affiliates; however, SLF has entered into an administration agreement with Monroe Capital Management Advisors, LLC (“MC Management”), pursuant to which certain loan servicing and administrative functions are delegated to MC Management. SLF may reimburse MC Management for its allocable share of overhead and other expenses incurred by MC Management. For the three months ended March 31, 2021 and 2020, SLF incurred $58 and $56, of allocable expenses, respectively. There are no agreements or understandings by which the Company guarantees any SLF obligations.

  

As of March 31, 2021 and December 31, 2020, SLF had total assets at fair value of $202,560 and $209,666, respectively. As of March 31, 2021 and December 31, 2021, SLF had one portfolio company investment on non-accrual status with a fair value of $1,076 and $1,031, respectively. The portfolio companies in SLF are in industries and geographies similar to those in which the Company may invest directly. Additionally, as of March 31, 2021 and December 31, 2020, SLF had $563 and $839, respectively, in outstanding commitments to fund investments under undrawn revolvers and delayed draw commitments.

 

Below is a summary of SLF’s portfolio, followed by a listing of the individual investments in SLF’s portfolio as of March 31, 2021 and December 31, 2020:

 

  As of 
  March 31, 2021  December 31, 2020 
Senior secured loans (1)  203,382   214,389 
Weighted average current interest rate on senior secured loans (2)  5.9%  5.8%
Number of borrowers in SLF  55   57 
Largest portfolio company investment (1)  6,772   6,790 
Total of five largest portfolio company investments (1)  27,037   27,064 

 

 

(1)Represents outstanding principal amount, excluding unfunded commitments.
(2)Computed as the (a) annual stated interest rate on accruing senior secured loans divided by (b) total senior secured loans at outstanding principal amount.

 

25

 

 

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

March 31, 2021

 

Portfolio Company (a) Spread Above Index (b)  Interest Rate (b)  Maturity  Principal  Fair Value 
Non-Controlled/Non-Affiliate Company Investments                    
Senior Secured Loans                    
Aerospace & Defense                    
Bromford Industries Limited (c)  L+5.25%   6.25%  11/5/2025   2,765  $2,707 
Bromford Industries Limited (c)  L+5.25%   6.25%  11/5/2025   1,843   1,805 
Trident Maritime SH, Inc.  L+5.50%   6.50%  2/26/2027   2,485   2,481 
Trident Maritime SH, Inc. (Revolver) (d)  L+5.50%   6.50%  2/26/2027   265   41 
               7,358   7,034 
Automotive                    
Truck-Lite Co., LLC  L+6.25%   7.25%  12/14/2026   1,722   1,720 
Truck-Lite Co., LLC  L+6.25%   7.25%  12/14/2026   255   255 
Wheel Pros, LLC  L+5.25%   6.25%  11/10/2027   2,993   2,993 
               4,970   4,968 
Banking, Finance, Insurance & Real Estate                    
Avison Young (USA), Inc. (c)  L+5.00%   5.20%  1/30/2026   4,888   4,881 
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)  L+5.25%   6.25%  12/13/2024   4,641   4,576 
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)  L+5.25%   6.25%  12/13/2024   103   102 
Lightbox Intermediate, L.P.  L+5.00%   5.20%  5/11/2026   4,913   4,863 
Minotaur Acquisition, Inc.  L+5.00%   5.11%  3/27/2026   2,940   2,941 
               17,485   17,363 
Beverage, Food & Tobacco                    
CBC Restaurant Corp.  n/a   5.00% PIK(e)   4/28/2022   1,116   1,076 
SW Ingredients Holdings, LLC  L+4.00%   5.00%  7/3/2025   3,647   3,645 
               4,763   4,721 
Capital Equipment                    
Analogic Corporation  L+5.25%   6.25%  6/24/2024   4,788   4,788 
               4,788   4,788 
Chemicals, Plastics & Rubber                    
Polymer Solutions Group  L+7.00%   8.00%  6/30/2021   1,206   1,177 
               1,206   1,177 
Construction & Building                    
The Cook & Boardman Group, LLC  L+5.75%   6.75%  10/20/2025   2,933   2,864 
               2,933   2,864 
Consumer Goods: Durable                    
International Textile Group, Inc.  L+5.00%   5.26%  5/1/2024   1,746   1,646 
               1,746   1,646 
Consumer Goods: Non-Durable                    
PH Beauty Holdings III, Inc.  L+5.00%   5.19%  9/26/2025   2,436   2,328 
               2,436   2,328 
Containers, Packaging & Glass                    
Liqui-Box Holdings, Inc.  L+4.50%   5.50%  2/26/2027   4,301   4,107 
Polychem Acquisition, LLC  L+5.00%   5.11%  3/17/2025   2,940   2,936 
Port Townsend Holdings Company, Inc.  L+6.75%   5.75% Cash/
2.00% PIK
   4/3/2024   4,716   4,291 
PVHC Holding Corp.  L+4.75%   5.75%  8/5/2024   3,242   2,837 
               15,199   14,171 
Energy: Oil & Gas                    
Drilling Info Holdings, Inc.  L+4.25%   4.36%  7/30/2025   4,551   4,483 
Offen, Inc.  L+5.00%   5.11%  6/22/2026   2,406   2,384 
Offen, Inc.  L+5.00%   5.11%  6/22/2026   883   875 
               7,840   7,742 

 

26

 

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS – (continued)

(unaudited)

March 31, 2021

 

Portfolio Company (a)   Spread Above
Index (b)
 
   Interest Rate (b)    Maturity    Principal    Fair Value  
Healthcare & Pharmaceuticals                    
LSCS Holdings, Inc.  L+4.25%   4.45%  3/17/2025   2,293  $2,270 
LSCS Holdings, Inc.  L+4.25%   4.45%  3/17/2025   592   586 
Radiology Partners, Inc.  L+4.25%   4.36%  7/9/2025   4,760   4,731 
               7,645   7,587 
High Tech Industries                    
Corel, Inc. (c)   L+5.00%   5.19%  7/2/2026   3,875   3,863 
LW Buyer, LLC  L+5.00%   5.11%  12/30/2024   4,912   4,888 
TGG TS Acquisition Company  L+6.50%   6.61%  12/12/2025   3,679   3,698 
               12,466   12,449 
Hotels, Gaming & Leisure                    
Excel Fitness Holdings, Inc.  L+5.25%   6.25%  10/7/2025   4,197   4,020 
North Haven Spartan US Holdco, LLC  L+5.00%   6.00%  6/6/2025   2,315   1,998 
Tait, LLC  L+5.00%   5.20%  3/28/2025   4,157   3,695 
Tait, LLC (Revolver)  P+4.00%   7.25%  3/28/2025   769   715 
               11,438   10,428 
Media: Advertising, Printing & Publishing                    
Cadent, LLC  L+5.25%   6.25%  9/11/2023   4,728   4,716 
Cadent, LLC (Revolver) (d)  L+5.25%   6.25%  9/11/2023   167    
Digital Room Holdings, Inc.  L+5.00%   5.20%  5/21/2026   4,351   4,284 
Monotype Imaging Holdings, Inc.  L+5.50%   6.50%  10/9/2026   4,875   4,865 
               14,121   13,865 
Media: Diversified & Production                    
Research Now Group, Inc. and Survey Sampling International, LLC  L+5.50%   6.50%  12/20/2024   6,772   6,723 
Stats Intermediate Holding, LLC  L+5.25%   5.45%  7/10/2026   4,937   4,937 
The Octave Music Group, Inc.  L+6.00%   6.25% Cash/
0.75% PIK
   5/29/2025   4,828   4,580 
               16,537   16,240 
Services: Business                    
AQ Carver Buyer, Inc.  L+5.00%   6.00%  9/23/2025   4,938   4,925 
CHA Holdings, Inc.  L+4.50%   5.50%  4/10/2025   1,997   1,867 
CHA Holdings, Inc.  L+4.50%   5.50%  4/10/2025   421   394 
Eliassen Group, LLC  L+4.25%   4.36%  11/5/2024   3,013   2,968 
Engage2Excel, Inc.  L+8.00%   7.00% Cash/
2.00% PIK
   3/7/2023   4,309   4,285 
Engage2Excel, Inc.  L+8.00%   7.00% Cash/
2.00% PIK
   3/7/2023   777   773 
Engage2Excel, Inc. (Revolver) (d)  L+8.00%   7.00% Cash/
2.00% PIK
   3/7/2023   550   373 
GI Revelation Acquisition, LLC  L+5.00%   5.11%  4/16/2025   1,362   1,366 
Legility, LLC  L+6.00%   7.00%  12/17/2025   4,875   4,719 
Orbit Purchaser, LLC  L+4.50%   5.50%  10/21/2024   2,450   2,460 
Orbit Purchaser, LLC  L+4.50%   5.50%  10/21/2024   1,892   1,900 
Orbit Purchaser, LLC  L+4.50%   5.50%  10/21/2024   553   555 
Output Services Group, Inc.  L+4.50%   5.50%  3/27/2024   4,852   4,124 
SIRVA Worldwide, Inc.  L+5.50%   5.70%  8/4/2025   1,887   1,746 
Teneo Holdings, LLC  L+5.25%   6.25%  7/11/2025   4,925   4,929 
The Kleinfelder Group, Inc.  L+5.25%   6.25%  11/29/2024   2,444   2,444 
               41,245   39,828 
Services: Consumer                    
Cambium Learning Group, Inc.  L+4.50%   5.25%  12/18/2025   4,516   4,527 
LegalZoom.com, Inc.  L+4.50%   4.61%  11/21/2024   2,687   2,688 
               7,203   7,215 
Telecommunications                    
Intermedia Holdings, Inc.  L+6.00%   7.00%  7/21/2025   1,792   1,796 
Mavenir Systems, Inc.  L+6.00%   7.00%  5/8/2025   3,890   3,897 
               5,682   5,693 
Transportation: Cargo                    
GlobalTranz Enterprises, LLC  L+5.00%   5.11%  5/15/2026   3,254   3,129 
               3,254   3,129 
Utilities: Oil & Gas                    
NGS US Finco, LLC  L+4.25%   5.25%  10/1/2025   1,708   1,640 
NGS US Finco, LLC  L+5.25%   6.25%  10/1/2025   249   245 
               1,957   1,885 
Wholesale                    
BMC Acquisition, Inc.  L+5.25%   6.25%  12/30/2024   4,837   4,816 
HALO Buyer, Inc.  L+4.50%   5.50%  6/30/2025   4,862   4,704 
PT Intermediate Holdings III, LLC  L+5.50%   6.50%  10/15/2025   1,975   1,958 
               11,674   11,478 
                     
TOTAL INVESTMENTS                 $198,599 

 

 

(a)All investments are U.S. companies unless otherwise noted.
(b)The majority of investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”) or Prime (“P”) which reset daily, monthly, quarterly or semiannually. For each such investment, the Company has provided the spread over LIBOR or Prime and the current contractual rate of interest in effect at March 31, 2021. Certain investments are subject to a LIBOR or Prime interest rate floor, or rate cap.
(c)This is an international company.
(d)All or a portion of this commitment was unfunded as of March 31, 2021. As such, interest is earned only on the funded portion of this commitment. Principal reflects the commitment outstanding.
(e)This position was on non-accrual status as of March 31, 2021, meaning that the Company has ceased accruing interest income on the position.

 

27

 

  

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2020

 

Portfolio Company (a) Spread Above
Index (b)
  Interest Rate (b)  Maturity  Principal  Fair Value 
Non-Controlled/Non-Affiliate Company Investments                    
Senior Secured Loans                    
Aerospace & Defense                    
Bromford Industries Limited (c)  L+5.25%  6.25%  11/5/2025   2,772  $2,685 
Bromford Industries Limited (c)  L+5.25%  6.25%  11/5/2025   1,848   1,790 
Trident Maritime SH, Inc.  L+4.75%  5.75%  6/4/2024   4,401   4,363 
Trident Maritime SH, Inc. (Revolver) (d)  L+4.75%  5.75%  6/4/2024   340    
               9,361   8,838 
Automotive                    
Truck-Lite Co., LLC  L+6.25%  7.25%  12/14/2026   1,726   1,716 
Truck-Lite Co., LLC  L+6.25%  7.25%  12/14/2026   256   254 
Wheel Pros, LLC  L+5.25%  6.25%  11/10/2027   3,000   2,961 
               4,982   4,931 
Banking, Finance, Insurance & Real Estate                    
Avison Young (USA), Inc. (c)  L+5.00%  5.25%  1/30/2026   4,900   4,659 
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.)  L+5.25%  6.25%  12/13/2024   4,653   4,585 
Harbour Benefit Holdings, Inc. (fka Zenith Merger Sub, Inc.) (Delayed Draw) (d)  L+5.25%  6.25%  12/13/2024   264   102 
Lightbox Intermediate, L.P.  L+5.00%  5.15%  5/11/2026   4,925   4,777 
Minotaur Acquisition, Inc.  L+5.00%  5.15%  3/27/2026   2,947   2,900 
               17,689   17,023 
Beverage, Food & Tobacco                    
CBC Restaurant Corp.  n/a   5.00% PIK(e)  4/28/2022   1,117   1,031 
SW Ingredients Holdings, LLC  L+4.00%  5.00%  7/3/2025   3,656   3,647 
               4,773   4,678 
Capital Equipment                    
Analogic Corporation  L+5.25%  6.25%  6/24/2024   4,800   4,800 
               4,800   4,800 
Chemicals, Plastics & Rubber                    
Polymer Solutions Group  L+7.00%  8.00%  6/30/2021   1,216   1,189 
               1,216   1,189 
Construction & Building                    
ISC Purchaser, LLC  L+4.00%  5.00%  7/11/2025   4,937   4,896 
The Cook & Boardman Group, LLC  L+5.75%  6.75%  10/20/2025   2,940   2,811 
               7,877   7,707 
Consumer Goods: Durable                    
International Textile Group, Inc.  L+5.00%  5.37%  5/1/2024   1,758   1,597 
               1,758   1,597 
Consumer Goods: Non-Durable                    
PH Beauty Holdings III, Inc.  L+5.00%  5.23%  9/26/2025   2,442   2,149 
               2,442   2,149 
Containers, Packaging & Glass                    
Liqui-Box Holdings, Inc.  L+4.50%  5.50%  2/26/2027   4,312   3,848 
Polychem Acquisition, LLC  L+5.00%  5.15%  3/17/2025   2,948   2,948 
Port Townsend Holdings Company, Inc.  L+6.75%  5.75% Cash/
2.00% PIK
   4/3/2024   4,683   4,263 
PVHC Holding Corp.  L+4.75%  5.75%  8/5/2024   3,250   2,844 
               15,193   13,903 
Energy: Oil & Gas                    
Drilling Info Holdings, Inc.  L+4.25%  4.40%  7/30/2025   4,563   4,429 
Offen, Inc.  L+5.00%  5.15%  6/22/2026   2,412   2,343 
Offen, Inc.  L+5.00%  5.15%  6/22/2026   885   860 
               7,860   7,632 
Healthcare & Pharmaceuticals                    
LSCS Holdings, Inc.  L+4.25%  4.51%  3/17/2025   2,299   2,253 
LSCS Holdings, Inc.  L+4.25%  4.51%  3/17/2025   593   582 
Radiology Partners, Inc.  L+4.25%  4.40%  7/9/2025   4,760   4,692 
               7,652   7,527 

 

28

 

MRCC SENIOR LOAN FUND I, LLC

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

December 31, 2020

 

Portfolio Company (a)  Spread Above
Index (b) 
   Interest Rate (b)    Maturity    Principal    Fair Value  
High Tech Industries                    
AQA Acquisition Holding, Inc.  L+4.25%  5.25%  5/24/2023   3,257  $3,257 
Corel, Inc. (c)   L+5.00%  5.23%  7/2/2026   3,900   3,844 
LW Buyer, LLC  L+5.00%  5.15%  12/30/2024   4,925   4,900 
TGG TS Acquisition Company  L+6.50%  6.65%  12/12/2025   3,753   3,720 
               15,835   15,721 
Hotels, Gaming & Leisure                    
Excel Fitness Holdings, Inc.  L+5.25%  6.25%  10/7/2025   4,207   3,878 
North Haven Spartan US Holdco, LLC  L+5.00%  6.00%  6/6/2025   2,321   1,979 
Tait, LLC  L+5.00%  5.23%  3/28/2025   4,167   3,669 
Tait, LLC (Revolver)  P+4.00%  7.25%  3/28/2025   769   711 
               11,464   10,237 
Media: Advertising, Printing & Publishing                    
Cadent, LLC  L+5.50%  6.50%  9/11/2023   4,728   4,622 
Cadent, LLC (Revolver) (d)  L+5.50%  6.50%  9/11/2023   167    
Digital Room Holdings, Inc.  L+5.00%  5.27%  5/21/2026   4,362   4,133 
Monotype Imaging Holdings, Inc.  L+5.50%  6.50%  10/9/2026   4,906   4,653 
               14,163   13,408 
Media: Diversified & Production                    
Research Now Group, Inc. and Survey Sampling International, LLC  L+5.50%  6.50%  12/20/2024   6,790   6,708 
Stats Intermediate Holding, LLC  L+5.25%  5.47%  7/10/2026   4,950   4,909 
The Octave Music Group, Inc.  L+6.00%  6.25% Cash/
0.75% PIK
   5/29/2025   4,871   4,335 
               16,611   15,952 
Services: Business                    
AQ Carver Buyer, Inc.  L+5.00%  6.00%  9/23/2025   4,937   4,888 
CHA Holdings, Inc.