þ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Maryland | 43-2048643 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
10 East 40th Street | ||
44th Floor | ||
New York, New York | 10016 | |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o | Smaller reporting company o | |||
(Do not check if a smaller reporting company) |
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Exhibit 31.1 | ||||||||
Exhibit 31.2 | ||||||||
Exhibit 32.1 | ||||||||
Exhibit 32.2 |
2
Item 1. | Financial Statements |
September 30, 2010 | June 30, 2010 | |||||||
(Unaudited) | (Audited) | |||||||
Assets (Note 11) |
||||||||
Investments at fair value: |
||||||||
Control investments (cost of $238,633 and $185,720, respectively) |
$ | 258,831 | $ | 195,958 | ||||
Affiliate investments (cost of $64,429 and $65,082, respectively) |
70,254 | 73,740 | ||||||
Non-control/Non-affiliate investments (cost of $503,333 and $477,957, respectively) |
501,092 | 478,785 | ||||||
Total investments at fair value (cost of $806,395 and $728,759,
respectively, Note 4) |
830,177 | 748,483 | ||||||
Investments in money market funds |
21,040 | 68,871 | ||||||
Cash |
1,062 | 1,081 | ||||||
Receivables for: |
||||||||
Interest, net |
5,898 | 5,356 | ||||||
Dividends |
1,751 | 1 | ||||||
Other |
679 | 419 | ||||||
Prepaid expenses |
297 | 371 | ||||||
Deferred financing costs, net |
7,359 | 7,579 | ||||||
Due from broker |
1,803 | | ||||||
Other assets |
534 | 534 | ||||||
Total Assets |
870,600 | 832,695 | ||||||
Liabilities |
||||||||
Credit facility payable (Note 11) |
46,600 | 100,300 | ||||||
Dividends payable |
7,889 | 6,909 | ||||||
Due to broker |
1,980 | | ||||||
Due to Prospect Administration (Note 8) |
407 | 294 | ||||||
Due to Prospect Capital Management (Note 8) |
6,818 | 9,006 | ||||||
Accrued expenses |
3,044 | 4,057 | ||||||
Other liabilities |
1,038 | 705 | ||||||
Total Liabilities |
67,776 | 121,271 | ||||||
Net Assets |
$ | 802,824 | $ | 711,424 | ||||
Components of Net Assets |
||||||||
Common stock, par value $0.001 per share (200,000,000 and 100,000,000
common shares authorized, respectively; 78,401,363 and 69,086,862 issued
and outstanding, respectively) (Note 6) |
$ | 78 | $ | 69 | ||||
Paid-in capital in excess of par (Note 6) |
894,568 | 805,918 | ||||||
Distributions in excess of net investment income |
(11,536 | ) | (9,692 | ) | ||||
Accumulated realized losses on investments |
(104,068 | ) | (104,595 | ) | ||||
Unrealized appreciation on investments |
23,782 | 19,724 | ||||||
Net Assets |
$ | 802,824 | $ | 711,424 | ||||
Net Asset Value Per Share |
$ | 10.24 | $ | 10.30 | ||||
3
For Three Months Ended September 30, | ||||||||
2010 | 2009 | |||||||
Investment Income |
||||||||
Interest income: (Note 4) |
||||||||
Control investments (Net of foreign withholding tax of $0 and $32, respectively) |
$ | 5,189 | $ | 4,591 | ||||
Affiliate investments |
2,950 | 849 | ||||||
Non-control/Non-affiliate investments |
20,782 | 9,395 | ||||||
Total interest income |
28,921 | 14,835 | ||||||
Dividend income: |
||||||||
Control investments |
1,750 | 6,200 | ||||||
Non-control/Non-affiliate investments |
440 | | ||||||
Money market funds |
4 | 18 | ||||||
Total dividend income |
2,194 | 6,218 | ||||||
Other income: (Note 5) |
||||||||
Control/affiliate investments |
1,771 | | ||||||
Affiliate investments |
147 | | ||||||
Non-control/Non-affiliate investments |
2,179 | 464 | ||||||
Total other income |
4,097 | 464 | ||||||
Total Investment Income |
35,212 | 21,517 | ||||||
Operating Expenses |
||||||||
Investment advisory fees: |
||||||||
Base management fee (Note 8) |
4,276 | 3,209 | ||||||
Income incentive fee (Note 8) |
5,249 | 3,080 | ||||||
Total investment advisory fees |
9,525 | 6,289 | ||||||
Interest and credit facility expenses |
2,261 | 1,374 | ||||||
Legal fees |
310 | | ||||||
Valuation services |
217 | 120 | ||||||
Audit, compliance and tax related fees |
216 | 262 | ||||||
Allocation of overhead from Prospect Administration (Note 8) |
800 | 840 | ||||||
Insurance expense |
71 | 63 | ||||||
Directors fees |
64 | 64 | ||||||
Other general and administrative expenses |
753 | 187 | ||||||
Total Operating Expenses |
14,217 | 9,199 | ||||||
Net Investment Income |
20,995 | 12,318 | ||||||
Net realized gain on investments (Note 4) |
527 | | ||||||
Net change in unrealized appreciation (depreciation) on investments (Note 4) |
4,058 | (18,696 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
$ | 25,580 | $ | (6,378 | ) | |||
Net increase (decrease) in net assets resulting from operations per share
(Note 7 and Note 9) |
$ | 0.34 | $ | (0.13 | ) | |||
Dividends declared per share |
$ | 0.30 | $ | 0.41 | ||||
4
For The Three Months Ended September 30, | ||||||||
2010 | 2009 | |||||||
Increase (Decrease) in Net Assets from Operations: |
||||||||
Net investment income |
$ | 20,995 | $ | 12,318 | ||||
Net realized gain on investments |
527 | | ||||||
Net change in unrealized appreciation (depreciation) on investments |
4,058 | (18,696 | ) | |||||
Net Increase (Decrease) in Net Assets Resulting from Operations |
25,580 | (6,378 | ) | |||||
Dividends to Shareholders |
(22,838 | ) | (19,548 | ) | ||||
Capital Share Transactions: |
||||||||
Net proceeds from capital shares sold |
86,435 | 98,833 | ||||||
Less: Offering costs of public share offerings |
(308 | ) | (1,158 | ) | ||||
Reinvestment of dividends |
2,531 | 2,901 | ||||||
Net Increase in Net Assets Resulting from Capital Share Transactions |
88,658 | 100,576 | ||||||
Total Increase in Net Assets |
91,400 | 74,650 | ||||||
Net assets at beginning of period |
711,424 | 532,596 | ||||||
Net Assets at End of Period |
$ | 802,824 | $ | 607,246 | ||||
Capital Share Activity: |
||||||||
Shares sold |
9,051,000 | 11,431,797 | ||||||
Shares issued through reinvestment of dividends |
263,501 | 297,274 | ||||||
Net increase in capital share activity |
9,314,501 | 11,729,071 | ||||||
Shares outstanding at beginning of period |
69,086,862 | 42,943,084 | ||||||
Shares Outstanding at End of Period |
78,401,363 | 54,672,155 | ||||||
5
For The Three Months Ended September 30, | ||||||||
2010 | 2009 | |||||||
Cash Flows from Operating Activities: |
||||||||
Net increase (decrease) in net assets resulting from operations |
$ | 25,580 | $ | (6,378 | ) | |||
Net realized gain on investments |
(527 | ) | | |||||
Net change in unrealized (appreciation) depreciation on investments |
(4,058 | ) | 18,696 | |||||
Accretion of purchase discount on investments |
(4,305 | ) | (501 | ) | ||||
Amortization of deferred financing costs |
990 | 823 | ||||||
Change in operating assets and liabilities |
||||||||
Payments for purchases of investments |
(137,797 | ) | (4,599 | ) | ||||
Payment-in-kind interest |
(3,154 | ) | (1,467 | ) | ||||
Proceeds from sale of investments and collection of investment
principal |
68,148 | 24,241 | ||||||
Purchases of cash equivalents |
| (124,998 | ) | |||||
Sales of cash equivalents |
| 124,998 | ||||||
Net investments in money market funds |
47,831 | 13,592 | ||||||
Increase in interest receivable |
(542 | ) | (1,090 | ) | ||||
(Increase) decrease in dividends receivable |
(1,750 | ) | 21 | |||||
(Increase) decrease in other receivables |
(260 | ) | 257 | |||||
Decrease (increase) in prepaid expenses |
74 | (712 | ) | |||||
Increase in due from broker |
(1,803 | ) | | |||||
Increase in due to broker |
1,980 | | ||||||
Increase (decrease) in due to Prospect Administration |
113 | (685 | ) | |||||
(Decrease) increase in due to Prospect Capital Management |
(2,188 | ) | 3 | |||||
Decrease in accrued expenses |
(1,013 | ) | (934 | ) | ||||
Increase in other liabilities |
333 | 236 | ||||||
Net Cash (Used In) Provided By Operating Activities |
(12,348 | ) | 41,503 | |||||
Cash Flows from Financing Activities: |
||||||||
Borrowings under credit facility |
93,200 | | ||||||
Payments under credit facility |
(146,900 | ) | (124,800 | ) | ||||
Financing costs paid and deferred |
(770 | ) | (653 | ) | ||||
Net proceeds from issuance of common stock |
86,435 | 98,833 | ||||||
Offering costs from issuance of common stock |
(308 | ) | (1,158 | ) | ||||
Dividends paid |
(19,328 | ) | (16,647 | ) | ||||
Net Cash Provided By (Used In) Financing Activities |
12,329 | (44,425 | ) | |||||
Total Decrease in Cash |
(19 | ) | (2,922 | ) | ||||
Cash balance at beginning of period |
1,081 | 9,942 | ||||||
Cash Balance at End of Period |
$ | 1,062 | $ | 7,020 | ||||
Cash Paid For Interest |
$ | 982 | $ | 348 | ||||
Non-Cash Financing Activity: |
||||||||
Amount of shares issued in connection with dividend reinvestment
plan |
$ | 2,531 | $ | 2,901 | ||||
6
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Control Investments (25.00% or greater of voting control) | ||||||||||||||||||||
AIRMALL USA, Inc.
|
Pennsylvania / Property Management | Senior
Secured Term Loan (12.00%, due 6/30/2015)(3), (4) |
$ | 30,000 | $ | 30,000 | $ | 30,000 | 3.7 | % | ||||||||||
Senior Subordinated Term Loan (12.00% plus 6.00% PIK,
due 12/31/2015)
|
12,631 | 12,631 | 12,631 | 1.6 | % | |||||||||||||||
Convertible Preferred Stock (9,919.684 shares)
|
9,920 | 9,920 | 1.2 | % | ||||||||||||||||
Common Stock (100 shares)
|
| 3,046 | 0.4 | % | ||||||||||||||||
52,551 | 55,597 | 6.9 | % | |||||||||||||||||
Ajax Rolled Ring & Machine, Inc.
|
South Carolina / Manufacturing | Senior Secured Note Tranche A (10.50%, due
4/01/2013)(3), (4)
|
20,937 | 20,937 | 20,937 | 2.6 | % | |||||||||||||
Subordinated Secured Note Tranche B (11.50% plus
6.00% PIK, due 4/01/2013)(3), (4)
|
13,840 | 13,840 | 10,046 | 1.3 | % | |||||||||||||||
Convertible Preferred Stock Series A (6,142.6
shares)
|
6,057 | | 0.0 | % | ||||||||||||||||
Unrestricted Common Stock (6 shares)
|
| | 0.0 | % | ||||||||||||||||
40,834 | 30,983 | 3.9 | % | |||||||||||||||||
AWCNC, LLC(20)
|
North Carolina / Machinery | Members Units Class A (1,800,000 units)
|
| | 0.0 | % | ||||||||||||||
Members Units Class B-1 (1 unit)
|
| | 0.0 | % | ||||||||||||||||
Members Units Class B-2 (7,999,999 units)
|
| | 0.0 | % | ||||||||||||||||
| | 0.0 | % | |||||||||||||||||
Borga, Inc.
|
California / Manufacturing | Revolving Line of Credit $1,000 Commitment (4.75%
plus 3.25% default interest, in non-accrual status
effective 03/02/2010, past due)(4), (26) |
1,000 | 945 | 850 | 0.1 | % | |||||||||||||
Senior Secured Term Loan B (8.25% plus 3.25% default
interest, in non-accrual status effective 03/02/2010,
past due)(4)
|
1,612 | 1,500 | 1,370 | 0.2 | % | |||||||||||||||
Senior Secured Term Loan C (12.00% plus 4.00% PIK
plus 3.00% default interest, in non-accrual status
effective 03/02/2010, past due)
|
8,713 | 707 | 18 | 0.0 | % | |||||||||||||||
Common Stock (100 shares)(22)
|
| | 0.0 | % | ||||||||||||||||
Warrants (33,750 warrants)(22)
|
| | 0.0 | % | ||||||||||||||||
3,152 | 2,238 | 0.3 | % | |||||||||||||||||
C&J Cladding LLC
|
Texas / Metal Services and Minerals | Membership Interest (400 units)(23)
|
580 | 4,958 | 0.6 | % | ||||||||||||||
580 | 4,958 | 0.6 | % | |||||||||||||||||
Change Clean Energy Holdings,
Inc. (CCEHI or
Biomass)(5)
|
Maine / Biomass Power | Common Stock (1,000 shares)
|
2,383 | | 0.0 | % | ||||||||||||||
2,383 | | 0.0 | % | |||||||||||||||||
Fischbein, LLC
|
North Carolina / Machinery | Senior Subordinated Debt (13.00% plus 5.50% PIK, due
5/01/2013)
|
2,441 | 2,273 | 2,441 | 0.3 | % | |||||||||||||
Membership Interest(25)
|
1,899 | 9,715 | 1.2 | % | ||||||||||||||||
4,172 | 12,156 | 1.5 | % | |||||||||||||||||
Freedom Marine Services LLC
|
Louisiana / Shipping Vessels | Subordinated Secured Note (16.00% PIK, due 12/31/2011)
|
10,399 | 10,359 | 3,506 | 0.4 | % | |||||||||||||
Net Profits Interest (22.50% payable on equity
distributions)(7)
|
| | 0.0 | % | ||||||||||||||||
10,359 | 3,506 | 0.4 | % |
7
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: |
||||||||||||||||||||
Control Investments (25.00% or greater of voting control) |
||||||||||||||||||||
Gas Solutions
Holdings, Inc.(8), (3)
|
Texas / Gas Gathering and Processing | Senior Secured Note (18.00%, due 12/11/2016)
|
$ | 25,000 | $ | 25,000 | $ | 25,000 | 3.1 | % | ||||||||||
Junior Secured Note (18.00%, due 12/12/2016)
|
12,000 | 12,000 | 12,000 | 1.5 | % | |||||||||||||||
Common Stock (100 shares)
|
5,003 | 60,596 | 7.5 | % | ||||||||||||||||
42,003 | 97,596 | 12.1 | % | |||||||||||||||||
Integrated Contract
Services, Inc.(9)
|
North Carolina / Contracting | Senior Demand Note (15.00%, past due)(10)
|
1,170 | 1,170 | 1,170 | 0.1 | % | |||||||||||||
Senior Secured Note (7.00% plus 7.00% PIK plus 6.00% default interest, in
non-accrual status effective 10/09/2007, past due)
|
960 | 660 | 566 | 0.1 | % | |||||||||||||||
Junior Secured Note (7.00% plus 7.00% PIK plus 6.00% default interest, in
non-accrual status effective 10/09/2007, past due)
|
14,003 | 14,003 | 1,642 | 0.2 | % | |||||||||||||||
Preferred Stock Series A (10 shares)
|
| | 0.0 | % | ||||||||||||||||
Common Stock (49 shares)
|
679 | | 0.0 | % | ||||||||||||||||
16,512 | 3,378 | 0.4 | % | |||||||||||||||||
Iron Horse Coiled
Tubing, Inc.(24)
|
Alberta, Canada / Production Services | Senior Secured Tranche 1 (Zero Coupon, in non-accrual status effective
1/01/2010, due 12/31/2016)
|
615 | 396 | 615 | 0.1 | % | |||||||||||||
Senior Secured Tranche 2 (Zero Coupon, in non-accrual status effective
1/01/2010, due 12/31/2016)
|
2,337 | 2,338 | 2,338 | 0.3 | % | |||||||||||||||
Senior Secured Tranche 3 (1.00%, in non-accrual status effective 1/01/2010, due
12/31/2016)
|
18,000 | 18,000 | 12,111 | 1.6 | % | |||||||||||||||
Common Stock (3,821 shares)
|
268 | | 0.0 | % | ||||||||||||||||
21,002 | 15,064 | 2.0 | % | |||||||||||||||||
Manx Energy,
Inc. (Manx)(12)
|
Kansas / Oil & Gas Production | Appalachian Energy Holdings, LLC (AEH) Senior Secured Note (8.00%, in
non-accrual status effective 1/19/2010, due 1/19/2013)
|
2,116 | 2,000 | 401 | 0.0 | % | |||||||||||||
Coalbed, LLC Senior Secured Note (8.00%, in non-accrual status effective
1/19/2010, due 1/19/2013)(6)
|
6,347 | 5,991 | 1,202 | 0.1 | % | |||||||||||||||
Manx Senior Secured Note (13.00%, in non-accrual status effective 1/19/2010,
due 1/19/2013)
|
2,800 | 2,800 | 2,800 | 0.3 | % | |||||||||||||||
Manx Preferred Stock (6,635 shares)
|
6,308 | | 0.0 | % | ||||||||||||||||
Manx Common Stock (3,416,335 shares)
|
1,171 | | 0.0 | % | ||||||||||||||||
18,270 | 4,403 | 0.4 | % | |||||||||||||||||
NRG Manufacturing, Inc.
|
Texas / Manufacturing | Senior Secured Note (16.50%, due 8/31/2011)(3), (4)
|
13,080 | 13,080 | 13,080 | 1.6 | % | |||||||||||||
Common Stock (800 shares)
|
2,317 | 4,494 | 0.6 | % | ||||||||||||||||
15,397 | 17,574 | 2.2 | % | |||||||||||||||||
Nupla Corporation
|
California / Home & Office Furnishings, Housewares & Durable | Revolving Line of Credit $2,000 Commitment (7.25% plus 2.00% default interest,
due 9/04/2012)(4), (26)
|
1,093 | 971 | 1,093 | 0.1 | % | |||||||||||||
Senior Secured Term Loan A (8.00% plus 2.00% default interest, due
9/04/2012)(4)
|
4,995 | 1,359 | 3,893 | 0.5 | % | |||||||||||||||
Senior Subordinated Debt (10.00% plus 5.00% PIK, in non-accrual status effective
4/01/2009, due 3/04/2013)
|
3,368 | | | 0.0 | % | |||||||||||||||
Preferred Stock Class A (2,850 shares)
|
| | 0.0 | % | ||||||||||||||||
Preferred Stock Class B (1,330 shares)
|
| | 0.0 | % | ||||||||||||||||
Common Stock (2,360,743 shares)
|
| | 0.0 | % | ||||||||||||||||
2,330 | 4,986 | 0.6 | % |
8
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Control Investments (25.00% or greater of voting control) | ||||||||||||||||||||
R-V Industries, Inc.
|
Pennsylvania / Manufacturing | Warrants (200,000 warrants, expiring 6/30/2017)
|
$ | 1,682 | $ | 1,380 | 0.2 | % | ||||||||||||
Common Stock (545,107 shares)
|
5,086 | 3,761 | 0.5 | % | ||||||||||||||||
6,768 | 5,141 | 0.7 | % | |||||||||||||||||
Sidumpr Trailer Company, Inc.
|
Nebraska / Automobile | Revolving Line of Credit $2,000 Commitment
(7.25%, in non-accrual status effective
11/01/2008, due 1/10/2011)(4), (26)
|
$ | 1,025 | 479 | 443 | 0.1 | % | ||||||||||||
Senior Secured Term Loan A (7.25%, in
non-accrual status effective 11/01/2008, due
1/10/2011)(4)
|
2,048 | 463 | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan B (8.75%,
in-non-accrual status effective 11/01/2008, due
1/10/2011)(4)
|
2,321 | | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan C (16.50% PIK, in
non-accrual status effective 9/27/2008, due
7/10/2011)
|
3,085 | | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan D (7.25%, in
non-accrual status effective 11/01/2008, due
7/10/2011)(4)
|
1,700 | | | 0.0 | % | |||||||||||||||
Preferred Stock (49,843 shares)
|
| | 0.0 | % | ||||||||||||||||
Common Stock (64,050 shares)
|
| | 0.0 | % | ||||||||||||||||
942 | 443 | 0.1 | % | |||||||||||||||||
Yatesville Coal
Holdings, Inc.(11)
|
Kentucky / Mining, Steel, Iron and Non-Precious Metals and Coal Production | Senior Secured Note (Non-accrual status
effective 1/01/2009, due
12/31/2010)(4)
|
10,000 | 1,035 | 808 | 0.1 | % | |||||||||||||
Junior Secured Note (Non-accrual status
effective 1/01/2009, due
12/31/2010)(4)
|
42,180 | 343 | | 0.0 | % | |||||||||||||||
Common Stock (1,000 shares)
|
| | 0.0 | % | ||||||||||||||||
1,378 | 808 | 0.1 | % | |||||||||||||||||
Total Control Investments
|
238,633 | 258,831 | 32.2 | % | ||||||||||||||||
Affiliate Investments (5.00% to 24.99% voting control) | ||||||||||||||||||||
Biotronic NeuroNetwork
|
Michigan / Healthcare | Senior Secured Note (11.50% plus 1.00% PIK, due
2/21/2013)(3), (4)
|
26,227 | 26,227 | 26,884 | 3.3 | % | |||||||||||||
Preferred Stock (9,925.455 shares)(13)
|
2,300 | 2,824 | 0.4 | % | ||||||||||||||||
28,527 | 29,708 | 3.7 | % | |||||||||||||||||
Boxercraft Incorporated
|
Georgia / Textiles & Leather | Senior Secured Term Loan A (9.50%, due
9/16/2013)(3), (4)
|
3,431 | 2,979 | 3,257 | 0.4 | % | |||||||||||||
Senior Secured Term Loan B (10.00%, due
9/16/2013)(3), (4)
|
4,794 | 3,876 | 4,478 | 0.6 | % | |||||||||||||||
Subordinated Secured Term Loan (12.00% plus
6.50% PIK, due 3/16/2014)(3)
|
7,356 | 5,942 | 6,857 | 0.9 | % | |||||||||||||||
Preferred Stock (1,000,000 shares)
|
| 243 | 0.0 | % | ||||||||||||||||
Common Stock (10,000 shares)
|
| | 0.0 | % | ||||||||||||||||
12,797 | 14,835 | 1.9 | % | |||||||||||||||||
9
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Affiliate Investments (5.00% to 24.99% voting control) | ||||||||||||||||||||
KTPS Holdings, LLC
|
Colorado / Textiles & Leather | Revolving Line of Credit $1,500 Commitment (10.50%, due
1/31/2012)(26), (27)
|
$ | 1,250 | $ | 1,250 | $ | 1,250 | 0.2 | % | ||||||||||
Senior Secured Term Loan A (10.50%, due 1/31/2012)(3), (4)
|
2,930 | 2,699 | 2,732 | 0.3 | % | |||||||||||||||
Senior Secured Term Loan B (12.00%, due 1/31/2012)(3)
|
430 | 380 | 403 | 0.1 | % | |||||||||||||||
Senior Secured Term Loan C (12.00% plus 12.75% PIK, due
3/31/2012)(3)
|
5,093 | 4,570 | 3,297 | 0.4 | % | |||||||||||||||
Membership Interest Class A (730 units)
|
| | 0.0 | % | ||||||||||||||||
Membership Interest Common (199,795 units)
|
| | 0.0 | % | ||||||||||||||||
8,899 | 7,682 | 1.0 | % | |||||||||||||||||
Smart, LLC(15)
|
New York / Diversified / Conglomerate Service | Membership Interest Class B (1,218 units)
|
| | 0.0 | % | ||||||||||||||
Membership Interest Class D (1 unit)
|
| | 0.0 | % | ||||||||||||||||
| | 0.0 | % | |||||||||||||||||
Sport Helmets
Holdings, LLC(15)
|
New York / Personal & Nondurable Consumer Products | Revolving Line of Credit $3,000 Commitment
(4.30%, due 12/14/2013)(26), (27)
|
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (4.30%, due
12/14/2013)(3), (4)
|
2,800 | 1,583 | 2,758 | 0.3 | % | |||||||||||||||
Senior Secured Term Loan B (4.80%, due
12/14/2013)(3), (4)
|
7,369 | 5,268 | 6,106 | 0.8 | % | |||||||||||||||
Senior Subordinated Debt Series A (12.00%
plus 3.00% PIK, due 6/14/2014)(3)
|
7,381 | 5,966 | 6,308 | 0.8 | % | |||||||||||||||
Senior Subordinated Debt Series B (10.00%
plus 5.00% PIK, due 6/14/2014)(3)
|
1,374 | 981 | 1,100 | 0.1 | % | |||||||||||||||
Common Stock (20,554 shares)
|
408 | 1,757 | 0.2 | % | ||||||||||||||||
14,206 | 18,029 | 2.2 | % | |||||||||||||||||
Total Affiliate Investments
|
64,429 | 70,254 | 8.8 | % | ||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
ADAPCO, Inc.
|
Florida / Ecological | Common Stock (5,000 shares)
|
141 | 318 | 0.0 | % | ||||||||||||||
141 | 318 | 0.0 | % | |||||||||||||||||
Aircraft Fasteners International, LLC
|
California / Machinery | Revolving Line of Credit $500 Commitment
(9.50%, due 11/01/2012)(26), (27)
|
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan
(9.50%, due 11/01/2012)(3), (4) |
4,451 | 4,451 | 4,188 | 0.5 | % | |||||||||||||||
Junior Secured Term Loan (12.00% plus 6.00%
PIK, due 5/01/2013)(3)
|
5,213 | 5,213 | 4,931 | 0.6 | % | |||||||||||||||
Convertible Preferred Stock (32,500 units)
|
396 | 143 | 0.0 | % | ||||||||||||||||
10,060 | 9,262 | 1.1 | % | |||||||||||||||||
American Gilsonite Company
|
Utah / Specialty Minerals | Senior Subordinated Note (12.00% plus 3.00%
PIK, due 3/14/2013)(3) |
14,783 | 14,783 | 14,931 | 1.9 | % | |||||||||||||
Membership Interest in AGC/PEP, LLC
(99.9999%)(16)
|
1,031 | 4,737 | 0.6 | % | ||||||||||||||||
15,814 | 19,668 | 2.5 | % | |||||||||||||||||
Arrowhead General
Insurance Agency, Inc.(17)
|
California / Insurance | Senior Secured Term Loan (8.50%, due 8/08/2012)
|
850 | 818 | 822 | 0.1 | % | |||||||||||||
Junior Secured Term Loan (10.25% plus 2.50%
PIK, due 2/08/2013)
|
6,217 | 5,123 | 5,103 | 0.6 | % | |||||||||||||||
5,941 | 5,925 | 0.7 | % | |||||||||||||||||
10
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Caleel +
Hayden, LLC (15)
|
Colorado / Personal & Nondurable Consumer Products | Membership Units (7,500 shares)
|
$ | 351 | $ | 794 | 0.1 | % | ||||||||||||
Options in Mineral Fusion Natural Brands, LLC (11,662
options)
|
| | 0.0 | % | ||||||||||||||||
351 | 794 | 0.1 | % | |||||||||||||||||
Castro Cheese Company, Inc.
|
Texas / Food Products | Subordinated Secured Note (11.00% plus 2.00% PIK, due
2/28/2013)(3)
|
$ | 7,732 | 7,644 | 7,809 | 1.0 | % | ||||||||||||
7,644 | 7,809 | 1.0 | % | |||||||||||||||||
Copernicus Group
|
North Carolina / Healthcare | Revolving Line of Credit $500 Commitment (10.00%, due
10/08/2013)(4), (26)
|
150 | 32 | 141 | 0.0 | % | |||||||||||||
Senior Secured Term Loan A (10.00%, due
10/08/2013)(3), (4)
|
5,650 | 4,950 | 5,307 | 0.7 | % | |||||||||||||||
Senior Subordinated Debt (10.00% plus 10.00% PIK, due
4/08/2014)
|
13,732 | 11,829 | 13,667 | 1.7 | % | |||||||||||||||
Preferred Stock Series A (1,000,000 shares)
|
67 | 223 | 0.0 | % | ||||||||||||||||
Preferred Stock Series C (212,121 shares)
|
212 | 265 | 0.0 | % | ||||||||||||||||
17,090 | 19,603 | 2.4 | % | |||||||||||||||||
Deb Shops, Inc.(17)
|
Pennsylvania / Retail | Second Lien Debt (14.00% PIK, in non-accrual status
effective 2/24/2009, due 10/23/2014)
|
18,190 | 14,606 | 1,295 | 0.2 | % | |||||||||||||
14,606 | 1,295 | 0.2 | % | |||||||||||||||||
Diamondback Operating, LP
|
Oklahoma / Oil & Gas Production | Net Profits Interest (15.00% payable on Equity
distributions)(7)
|
| 191 | 0.0 | % | ||||||||||||||
| 191 | 0.0 | % | |||||||||||||||||
EXL Acquisition Corporation
|
South Carolina / Electronics | Revolving Line of Credit $1,000 Commitment (7.75%, due
06/24/2015)(26), (27)
|
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (7.75%, due
6/24/2015)(3), (4)
|
11,744 | 11,744 | 11,816 | 1.5 | % | |||||||||||||||
Senior Secured Term Loan B (12.00% plus 2.00% PIK, due
12/24/2015)(3)
|
12,050 | 12,050 | 12,094 | 1.5 | % | |||||||||||||||
Common Stock Class A (2,475 shares)
|
437 | 415 | 0.1 | % | ||||||||||||||||
Common Stock Class B (25 shares)
|
252 | 4 | 0.0 | % | ||||||||||||||||
24,483 | 24,329 | 3.1 | % | |||||||||||||||||
Fairchild Industrial Products, Co.
|
North Carolina / Electronics | Preferred Stock Class A (285.1 shares)
|
377 | 655 | 0.1 | % | ||||||||||||||
Common Stock Class B (28 shares)
|
211 | 331 | 0.0 | % | ||||||||||||||||
588 | 986 | 0.1 | % | |||||||||||||||||
H&M Oil & Gas, LLC
|
Texas / Oil & Gas Production | Senior Secured Note (13.00% plus 3.00% PIK, due 9/30/2010)
|
59,561 | 59,561 | 44,593 | 5.6 | % | |||||||||||||
Net Profits Interest (8.00% payable on Equity
distributions)(7)
|
| 605 | 0.1 | % | ||||||||||||||||
59,561 | 45,198 | 5.7 | % | |||||||||||||||||
Hoffmaster Group, Inc.
|
Wisconsin / Durable Consumer Products | Second Lien Term Loan (13.50%, due 6/2/2017)(3)
|
20,000 | 20,000 | 20,400 | 2.5 | % | |||||||||||||
20,000 | 20,400 | 2.5 | % | |||||||||||||||||
Hudson Products Holdings, Inc.(17)
|
Texas / Manufacturing | Senior
Secured Term Loan (8.50%, due 8/24/2015)(3), (4) |
6,365 | 5,759 | 5,243 | 0.7 | % | |||||||||||||
5,759 | 5,243 | 0.7 | % | |||||||||||||||||
11
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
IEC Systems LP (IEC) /Advanced Rig
Services LLC (ARS)
|
Texas / Oilfield Fabrication | IEC Senior Secured Note (12.00% plus 3.00% PIK, due
11/20/2012)(3), (4)
|
$ | 18,407 | $ | 18,407 | $ | 18,407 | 2.3 | % | ||||||||||
ARS Senior Secured Note (12.00% plus 3.00% PIK, due
11/20/2012)(3), (4)
|
11,067 | 11,067 | 11,067 | 1.4 | % | |||||||||||||||
29,474 | 29,474 | 3.7 | % | |||||||||||||||||
Label Corp Holdings, Inc.
|
Nebraska / Printing & Publishing | Senior
Secured Term Loan (8.50%, due 8/08/2014)(3), (4) |
5,779 | 5,238 | 5,336 | 0.7 | % | |||||||||||||
5,238 | 5,336 | 0.7 | % | |||||||||||||||||
LHC Holdings Corp.(17)
|
Florida / Healthcare | Revolving Line of Credit $750 Commitment (9.00%, due
11/30/2012)(26), (27)
|
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (8.50%, due 11/30/2012)(3),
(4)
|
1,940 | 1,940 | 1,793 | 0.2 | % | |||||||||||||||
Senior Subordinated Debt (12.00% plus 2.50% PIK, due
5/31/2013)(3)
|
4,565 | 4,222 | 4,173 | 0.5 | % | |||||||||||||||
Membership Interest (125 units)
|
216 | 173 | 0.0 | % | ||||||||||||||||
6,378 | 6,139 | 0.7 | % | |||||||||||||||||
Mac & Massey Holdings, LLC
|
Georgia / Food Products | Senior Subordinated Debt (10.00% plus 5.75% PIK, due
2/10/2013)
|
8,799 | 7,563 | 8,703 | 1.1 | % | |||||||||||||
Membership Interest (250 units)
|
133 | 387 | 0.0 | % | ||||||||||||||||
7,696 | 9,090 | 1.1 | % | |||||||||||||||||
Maverick Healthcare, LLC
|
Arizona / Healthcare | Second Lien Debt (12.50% plus 3.50% PIK, due
4/30/2014)(3)
|
13,239 | 13,239 | 13,364 | 1.7 | % | |||||||||||||
Preferred Units (1,250,000 units)
|
1,252 | 1,896 | 0.2 | % | ||||||||||||||||
Common Units (1,250,000 units)
|
| | 0.0 | % | ||||||||||||||||
14,491 | 15,260 | 1.9 | % | |||||||||||||||||
Miller Petroleum, Inc.
|
Tennessee / Oil & Gas Production | Warrants, Common Stock (2,567,822 warrants, expiring
5/04/2010 to 3/31/2015) (14)
|
150 | 1,153 | 0.1 | % | ||||||||||||||
150 | 1,153 | 0.1 | % | |||||||||||||||||
Northwestern Management Services, LLC
|
Florida / Healthcare | Revolving Line of Credit $1,500 Commitment (10.50%, due
7/30/2015)(26)
|
| | | 0.0 | % | |||||||||||||
Senior Secured Term Loan A (10.50%, due 7/30/2015)(3),
(4)
|
18,750 | 18,750 | 18,750 | 2.3 | % | |||||||||||||||
Common Stock (50 shares)
|
371 | 631 | 0.1 | % | ||||||||||||||||
19,121 | 19,381 | 2.4 | % | |||||||||||||||||
Prince Mineral
Company, Inc. (3)
|
New York / Metal Services and Minerals | Junior
Secured Term Loan (9.00%, due 12/21/2012)(4) |
11,100 | 11,100 | 11,100 | 1.4 | % | |||||||||||||
Senior Subordinated Debt (13.00% plus 2.00%, due 7/21/2013)
|
12,322 | 1,540 | 12,322 | 1.5 | % | |||||||||||||||
12,640 | 23,422 | 2.9 | % | |||||||||||||||||
Progrexion
Holdings, LLC(3), (4)
|
Utah / Consumer Services | Senior Secured Term Loan (11.0%, due 12/31/2014)
|
35,910 | 35,910 | 35,910 | 4.5 | % | |||||||||||||
35,910 | 35,910 | 4.5 | % | |||||||||||||||||
12
September 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Qualitest Pharmaceuticals, Inc.(17)
|
Alabama / Pharmaceuticals | Second Lien Debt (8.03%, due 4/30/2015)(3), (4) | $ | 12,000 | $ | 11,957 | $ | 12,000 | 1.5 | % | ||||||||||
11,957 | 12,000 | 1.5 | % | |||||||||||||||||
R-O-M Corporation
|
Missouri / Automobile | Revolving Line of Credit $1,750 Commitment (4.50%, due
2/08/2013)(26), (27)
|
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A
(4.50%, due 2/08/2013)(3), (4)
|
4,240 | 3,729 | 4,173 | 0.6 | % | |||||||||||||||
Senior Secured Term Loan B
(8.00%, due 5/08/2013)(3), (4)
|
7,229 | 7,229 | 7,175 | 0.9 | % | |||||||||||||||
Senior Subordinated Debt (12.00% plus 3.00% PIK due
8/08/2013)(3)
|
7,118 | 6,818 | 6,566 | 0.8 | % | |||||||||||||||
17,776 | 17,914 | 2.3 | % | |||||||||||||||||
Seaton Corp
|
Illinois / Business Services | Subordinated Secured (12.50% plus 2.00% PIK, due
3/14/2014) (3), (4)
|
12,296 | 12,073 | 12,664 | 1.6 | % | |||||||||||||
12,073 | 12,664 | 1.6 | % | |||||||||||||||||
Shearers Foods, Inc.
|
Ohio / Food Products | Junior
Secured Debt (12.00% plus 3.00% PIK, due 3/31/2016)(3) |
35,536 | 35,536 | 37,073 | 4.6 | % | |||||||||||||
Membership Interest in Mistral Chip Holdings, LLC (2,000 units)(18) |
2,000 | 6,460 | 0.8 | % | ||||||||||||||||
Membership Interest in Mistral Chip Holdings, LLC 2 (595 units)(18) |
1,322 | 1,922 | 0.2 | % | ||||||||||||||||
38,858 | 45,455 | 5.6 | % | |||||||||||||||||
Skillsoft Public Limited Company
|
Ireland / Software & Computer Services | Subordinated Unsecured (11.125%, due 06/01/2018) | 15,000 | 14,904 | 15,000 | 1.9 | % | |||||||||||||
14,904 | 15,000 | 1.9 | % | |||||||||||||||||
SonicWALL, Inc.
|
California / Software & Computer Services |
Subordinated Secured (12.00%, due 1/23/2017) (4) | 23,000 | 22,980 | 23,000 | 2.9 | % | |||||||||||||
22,980 | 23,000 | 2.9 | % | |||||||||||||||||
Stryker Energy, LLC
|
Ohio / Oil & Gas Production | Subordinated Secured Revolving Credit Facility (12.00% plus
3.00% PIK, due 12/01/2012)(3), (4)
|
29,953 | 29,769 | 29,861 | 3.7 | % | |||||||||||||
Overriding Royalty Interests(19)
|
| 2,744 | 0.3 | % | ||||||||||||||||
29,769 | 32,605 | 4.0 | % | |||||||||||||||||
TriZetto Group(17)
|
California / Healthcare | Subordinated Unsecured Note (12.00% plus 1.50% PIK, due
10/01/2016)(3)
|
15,492 | 15,367 | 15,956 | 2.0 | % | |||||||||||||
15,367 | 15,956 | 2.0 | % | |||||||||||||||||
Unitek(17)
|
Pennsylvania / Technical Services | Second Lien Debt (13.08%, due 12/31/2013)(3), (4)
|
11,500 | 11,394 | 11,500 | 1.4 | % | |||||||||||||
11,394 | 11,500 | 1.4 | % | |||||||||||||||||
Wind River Resources Corp. and Wind River II
Corp.
|
Utah / Oil & Gas Production | Senior Secured Note (13.00% plus 3.00% default interest on
principal, 16.00% default interest on past due interest, in
non-accrual status effective 12/01/2008, past
due)(4)
|
15,000 | 15,000 | 8,701 | 1.1 | % | |||||||||||||
Net Profits Interest (5.00% payable on Equity
distributions)(7)
|
| | 0.0 | % | ||||||||||||||||
15,000 | 8,701 | 1.1 | % | |||||||||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3 Investments) | 503,214 | 500,981 | 62.4 | % | ||||||||||||||||
Total Level 3 Portfolio Investments | 806,276 | 830,066 | 103.4 | % | ||||||||||||||||
13
September 30, 2010 | ||||||||||||||||||
% of | ||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||
LEVEL 1 PORTFOLIO INVESTMENTS: | ||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||
Allied Defense Group, Inc.
|
Virginia / Aerospace & Defense | Common Stock (10,000 shares) | $ | 56 | $ | 24 | 0.0 | % | ||||||||||
56 | 24 | 0.0 | % | |||||||||||||||
Dover Saddlery, Inc.
|
Massachusetts / Retail | Common Stock (30,974 shares) | 63 | 87 | 0.0 | % | ||||||||||||
63 | 87 | 0.0 | % | |||||||||||||||
Total Non-Control/Non-Affiliate Investments (Level 1 Investments) | 119 | 111 | 0.0 | % | ||||||||||||||
Total Portfolio Investments | 806,395 | 830,177 | 103.4 | % | ||||||||||||||
SHORT TERM INVESTMENTS: Money Market Funds (Level 2 Investments) | ||||||||||||||||||
Fidelity Institutional Money Market Funds Government Portfolio (Class I) | 8,457 | 8,457 | 1.6 | % | ||||||||||||||
Fidelity Institutional Money Market Funds Government Portfolio (Class I)(3) | 12,582 | 12,582 | 1.1 | % | ||||||||||||||
Victory Government Money Market Funds | 1 | 1 | 0.0 | % | ||||||||||||||
Total Money Market Funds | 21,040 | 21,040 | 2.6 | % | ||||||||||||||
Total Investments | 827,435 | 851,217 | 106.0 | % | ||||||||||||||
14
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Control Investments (25.00% or greater of voting control) | ||||||||||||||||||||
Ajax Rolled Ring & Machine, Inc.
|
South Carolina / Manufacturing | Senior
Secured Note Tranche A (10.50%, due 4/01/2013)(3), (4) |
$ | 21,047 | $ | 21,047 | $ | 21,047 | 3.0 | % | ||||||||||
Subordinated Secured Note Tranche B (11.50%
plus 6.00% PIK, due 4/01/2013)(3),
(4)
|
16,306 | 16,306 | 9,857 | 1.3 | % | |||||||||||||||
Subordinated Secured Note Tranche B
(15.00%, due 10/30/2010)
|
500 | 500 | | 0.0 | % | |||||||||||||||
Convertible Preferred Stock Series A
(6,142.6 shares)
|
6,057 | | 0.0 | % | ||||||||||||||||
Unrestricted Common Stock (6 shares)
|
| | 0.0 | % | ||||||||||||||||
43,910 | 30,904 | 4.3 | % | |||||||||||||||||
AWCNC, LLC(20)
|
North Carolina / Machinery | Members Units Class A (1,800,000 units) | | | 0.0 | % | ||||||||||||||
Members Units Class B-1 (1 unit) | | | 0.0 | % | ||||||||||||||||
Members Units Class B-2 (7,999,999 units) | | | 0.0 | % | ||||||||||||||||
| | 0.0 | % | |||||||||||||||||
Borga, Inc.
|
California / Manufacturing | Revolving Line of Credit $1,000 Commitment
(4.75% plus 3.25% default interest, in
non-accrual status effective 03/02/2010, past
due)(4), (26)
|
1,000 | 945 | 850 | 0.1 | % | |||||||||||||
Senior Secured Term Loan B (8.25% plus 3.25%
default interest, in non-accrual status
effective 03/02/2010, past due)(4)
|
1,612 | 1,500 | 1,282 | 0.2 | % | |||||||||||||||
Senior Secured Term Loan C (12.00% plus 4.00%
PIK plus 3.00% default interest, in
non-accrual status effective 03/02/2010, past
due)
|
8,624 | 707 | | 0.0 | % | |||||||||||||||
Common Stock (100 shares)(22)
|
| | 0.0 | % | ||||||||||||||||
Warrants (33,750 warrants)(22)
|
| | 0.0 | % | ||||||||||||||||
3,152 | 2,132 | 0.3 | % | |||||||||||||||||
C&J Cladding LLC
|
Texas / Metal Services and Minerals | Membership Interest (400 units)(23)
|
580 | 4,128 | 0.6 | % | ||||||||||||||
580 | 4,128 | 0.6 | % | |||||||||||||||||
Change Clean Energy Holdings, Inc. (CCEHI or
Biomass)(5)
|
Maine / Biomass Power | Common Stock (1,000 shares) | 2,383 | | 0.0 | % | ||||||||||||||
2,383 | | 0.0 | % | |||||||||||||||||
Fischbein, LLC
|
North Carolina / Machinery | Senior Subordinated Debt (13.00% plus 5.50%
PIK, due 5/01/2013)
|
3,811 | 3,631 | 3,811 | 0.5 | % | |||||||||||||
Membership Interest(25) | 1,899 | 4,812 | 0.7 | % | ||||||||||||||||
5,530 | 8,623 | 1.2 | % | |||||||||||||||||
Freedom Marine Services LLC
|
Louisiana / Shipping Vessels | Subordinated Secured Note (16.00% PIK, due
12/31/2011)(3)
|
10,088 | 10,040 | 3,583 | 0.5 | % | |||||||||||||
Net Profits Interest (22.50% payable on
equity distributions)(3), (7) |
| | 0.0 | % | ||||||||||||||||
10,040 | 3,583 | 0.5 | % | |||||||||||||||||
Gas Solutions Holdings, Inc.(8), (3)
|
Texas / Gas Gathering and Processing | Senior Secured Note (18.00%, due 12/11/2016)
|
25,000 | 25,000 | 25,000 | 3.5 | % | |||||||||||||
Junior Secured Note (18.00%, due 12/12/2016)
|
7,500 | 7,500 | 7,500 | 1.1 | % | |||||||||||||||
Common Stock (100 shares)
|
5,003 | 60,596 | 8.5 | % | ||||||||||||||||
37,503 | 93,096 | 13.1 | % |
15
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Control Investments (25.00% or greater of voting control) | ||||||||||||||||||||
Integrated Contract Services, Inc.(9)
|
North Carolina / Contracting | Senior Demand Note (15.00%, past due)(10)
|
$ | 1,170 | $ | 1,170 | $ | 1,170 | 0.2 | % | ||||||||||
Senior Secured Note (7.00% plus 7.00% PIK plus 6.00% default
interest, in non-accrual status effective 10/09/2007, past
due)
|
1,100 | 800 | 1,100 | 0.2 | % | |||||||||||||||
Junior Secured Note (7.00% plus 7.00% PIK plus 6.00% default
interest, in non-accrual status effective 10/09/2007, past
due)
|
14,003 | 14,003 | 2,272 | 0.2 | % | |||||||||||||||
Preferred Stock Series A (10 shares)
|
| | 0.0 | % | ||||||||||||||||
Common Stock (49 shares)
|
679 | | 0.0 | % | ||||||||||||||||
16,652 | 4,542 | 0.6 | % | |||||||||||||||||
Iron Horse Coiled Tubing, Inc.(24)
|
Alberta, Canada / Production Services | Senior Secured Tranche 1 (Zero Coupon, in non-accrual status
effective 1/01/2010, due 12/31/2016) |
615 | 396 | 615 | 0.1 | % | |||||||||||||
Senior Secured Tranche 2 (Zero Coupon, in non-accrual status
effective 1/01/2010, due 12/31/2016) |
2,337 | 2,338 | 2,338 | 0.3 | % | |||||||||||||||
Senior Secured Tranche 3 (1.00%, in non-accrual status
effective 1/01/2010, due 12/31/2016)
|
18,000 | 18,000 | 9,101 | 1.3 | % | |||||||||||||||
Common Stock (3,821 shares)
|
268 | | 0.0 | % | ||||||||||||||||
21,002 | 12,054 | 1.7 | % | |||||||||||||||||
Manx Energy, Inc. (Manx)(12)
|
Kansas / Oil & Gas Production | Appalachian Energy Holdings, LLC (AEH) Senior Secured
Note (8.00%, in non-accrual status effective 1/19/2010, due
1/19/2013)
|
2,073 | 2,000 | 472 | 0.1 | % | |||||||||||||
Coalbed, LLC Senior Secured Note (8.00%, in non-accrual
status effective 1/19/2010, due 1/19/2013)(6)
|
6,219 | 5,991 | 1,414 | 0.2 | % | |||||||||||||||
Manx Senior Secured Note (13.00%, in non-accrual status
effective 1/19/2010, due 1/19/2013)
|
2,800 | 2,800 | 2,800 | 0.4 | % | |||||||||||||||
Manx Preferred Stock (6,635 shares)
|
6,308 | | 0.0 | % | ||||||||||||||||
Manx Common Stock (3,416,335 shares)
|
1,171 | | 0.0 | % | ||||||||||||||||
18,270 | 4,686 | 0.7 | % | |||||||||||||||||
NRG Manufacturing, Inc.
|
Texas / Manufacturing | Senior Secured Note (16.50%, due 8/31/2011)(3), (4)
|
13,080 | 13,080 | 13,080 | 1.8 | % | |||||||||||||
Common Stock (800 shares)
|
2,317 | 7,031 | 1.0 | % | ||||||||||||||||
15,397 | 20,111 | 2.8 | % | |||||||||||||||||
Nupla Corporation
|
California / Home & Office Furnishings, Housewares & Durable |
Revolving Line of Credit $2,000 Commitment (7.25% plus
2.00% default interest, due 9/04/2012)(4), (26)
|
1,093 | 958 | 1,093 | 0.1 | % | |||||||||||||
Senior Secured Term Loan A (8.00% plus 2.00% default
interest, due 9/04/2012)(4)
|
5,139 | 1,503 | 3,301 | 0.5 | % | |||||||||||||||
Senior Subordinated Debt (10.00% plus 5.00% PIK, in
non-accrual status effective 4/01/2009, due 3/04/2013)
|
3,368 | | | 0.0 | % | |||||||||||||||
Preferred Stock Class A (2,850 shares)
|
| | 0.0 | % | ||||||||||||||||
Preferred Stock Class B (1,330 shares)
|
| | 0.0 | % | ||||||||||||||||
Common Stock (2,360,743 shares) | | | 0.0 | % | ||||||||||||||||
2,461 | 4,394 | 0.6 | % | |||||||||||||||||
R-V Industries, Inc.
|
Pennsylvania / Manufacturing | Warrants (200,000 warrants, expiring 6/30/2017) | 1,682 | 1,697 | 0.2 | % | ||||||||||||||
Common Stock (545,107 shares) | 5,086 | 4,626 | 0.7 | % | ||||||||||||||||
6,768 | 6,323 | 0.9 | % | |||||||||||||||||
16
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Control Investments (25.00% or greater of voting control) | ||||||||||||||||||||
Sidumpr Trailer Company, Inc. |
Nebraska / Automobile | Revolving Line of Credit $2,000 Commitment (7.25%, in non-accrual status effective 11/01/2008, due 1/10/2011)(4), (26) |
$ | 1,025 | $ | 479 | $ | 574 | 0.1 | % | ||||||||||
Senior Secured Term Loan A (7.25%, in non-accrual status effective 11/01/2008, due 1/10/2011)(4) |
2,048 | 463 | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan B (8.75%, in-non-accrual status effective 11/01/2008, due 1/10/2011)(4) |
2,321 | | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan C (16.50% PIK, in non-accrual status effective 9/27/2008, due 7/10/2011) |
3,085 | | | 0.0 | % | |||||||||||||||
Senior Secured Term Loan D (7.25%, in non-accrual status effective 11/01/2008, due 7/10/2011)(4) |
1,700 | | | 0.0 | % | |||||||||||||||
Preferred Stock (49,843 shares) |
| | 0.0 | % | ||||||||||||||||
Common Stock (64,050 shares) |
| | 0.0 | % | ||||||||||||||||
942 | 574 | 0.1 | % | |||||||||||||||||
Yatesville Coal Holdings, Inc.(11) |
Kentucky / Mining, Steel, Iron and Non-Precious Metals and Coal Production | Senior Secured Note (Non-accrual status effective 1/01/2009, due 12/31/2010)(4) |
10,000 | 1,035 | 808 | 0.1 | % | |||||||||||||
Junior Secured Note (Non-accrual status effective 1/01/2009, due 12/31/2010)(4) |
41,931 | 95 | | 0.0 | % | |||||||||||||||
Common Stock (1,000 shares) |
| | 0.0 | % | ||||||||||||||||
1,130 | 808 | 0.1 | % | |||||||||||||||||
Total Control Investments |
185,720 | 195,958 | 27.5 | % | ||||||||||||||||
Affiliate Investments (5.00% to 24.99% voting control) | ||||||||||||||||||||
Biotronic NeuroNetwork |
Michigan / Healthcare | Senior Secured Note (11.50% plus 1.00% PIK, due 2/21/2013)(3), (4) |
26,227 | 26,227 | 26,744 | 3.8 | % | |||||||||||||
Preferred Stock (9,925.455 shares)(13) |
2,300 | 2,759 | 0.4 | % | ||||||||||||||||
28,527 | 29,503 | 4.2 | % | |||||||||||||||||
Boxercraft Incorporated |
Georgia / Textiles & Leather | Revolving Line of Credit $1,000 Commitment (9.00%, due 9/16/2013)(26), (27) |
1,000 | 1,000 | 1,000 | 0.1 | % | |||||||||||||
Senior Secured Term Loan A (9.50%, due 9/16/2013)(3), (4) |
3,843 | 3,330 | 3,577 | 0.5 | % | |||||||||||||||
Senior Secured Term Loan B (10.00%, due 9/16/2013)(3), (4) |
4,822 | 3,845 | 4,386 | 0.6 | % | |||||||||||||||
Subordinated Secured Term Loan (12.00% plus 6.50% PIK, due 3/16/2014)(3) |
7,235 | 5,775 | 6,717 | 1.0 | % | |||||||||||||||
Preferred Stock (1,000,000 shares) |
| 205 | 0.0 | % | ||||||||||||||||
Common Stock (10,000 shares) |
| | 0.0 | % | ||||||||||||||||
13,950 | 15,885 | 2.2 | % | |||||||||||||||||
KTPS Holdings, LLC |
Colorado / Textiles & Leather | Revolving Line of Credit $1,500 Commitment (10.50%, due 1/31/2012)(26), (27) |
1,000 | 1,000 | 1,000 | 0.1 | % | |||||||||||||
Senior Secured Term Loan A (10.50%, due 1/31/2012)(3), (4) |
3,130 | 2,847 | 2,916 | 0.4 | % | |||||||||||||||
Senior Secured Term Loan B (12.00%, due 1/31/2012)(3) |
435 | 377 | 409 | 0.1 | % | |||||||||||||||
Senior Secured Term Loan C (12.00% plus 6.00% PIK, due 3/31/2012)(3) |
4,932 | 4,345 | 4,796 | 0.7 | % | |||||||||||||||
Membership Interest Class A (730 units) |
| | 0.0 | % | ||||||||||||||||
Membership Interest Common (199,795 units) |
| | 0.0 | % | ||||||||||||||||
8,569 | 9,121 | 1.3 | % | |||||||||||||||||
17
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Affiliate Investments (5.00% to 24.99% voting control) | ||||||||||||||||||||
Smart, LLC(15) |
New York / Diversified / Conglomerate Service | Membership Interest Class B (1,218 units) |
$ | | $ | | 0.0 | % | ||||||||||||
Membership Interest Class D (1 unit) |
| | 0.0 | % | ||||||||||||||||
| | 0.0 | % | |||||||||||||||||
Sport Helmets Holdings, LLC(15) |
New York / Personal & Nondurable Consumer Products | Revolving Line of Credit $3,000 Commitment (4.54%, due 12/14/2013)(26), (27) |
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (4.54%, due 12/14/2013)(3), (4) |
$ | 3,025 | 1,658 | 2,993 | 0.4 | % | ||||||||||||||
Senior Secured Term Loan B (5.04%, due 12/14/2013)(3), (4) |
7,388 | 5,161 | 6,432 | 0.9 | % | |||||||||||||||
Senior Subordinated Debt Series A (12.00% plus 3.00% PIK, due 6/14/2014)(3) |
7,325 | 5,857 | 6,734 | 0.9 | % | |||||||||||||||
Senior Subordinated Debt Series B (10.00% plus 5.00% PIK, due 6/14/2014)(3) |
1,357 | 952 | 1,160 | 0.2 | % | |||||||||||||||
Common Stock (20,554 shares) |
408 | 1,912 | 0.3 | % | ||||||||||||||||
14,036 | 19,231 | 2.7 | % | |||||||||||||||||
Total Affiliate Investments |
65.082 | 73,740 | 10.4 | % | ||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
ADAPCO, Inc. |
Florida / Ecological | Common Stock (5,000 shares) |
141 | 340 | 0.0 | % | ||||||||||||||
141 | 340 | 0.0 | % | |||||||||||||||||
Aircraft Fasteners International, LLC |
California / Machinery | Revolving Line of Credit $500 Commitment (9.50%, due 11/01/2012)(26), (27) |
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan (9.50%, due 11/01/2012)(3), (4) |
4,565 | 4,565 | 4,248 | 0.6 | % | |||||||||||||||
Junior Secured Term Loan (12.00% plus 6.00% PIK, due 5/01/2013)(3) |
5,134 | 5,134 | 4,807 | 0.7 | % | |||||||||||||||
Convertible Preferred Stock (32,500 units) |
396 | 98 | 0.0 | % | ||||||||||||||||
10,095 | 9,153 | 1.3 | % | |||||||||||||||||
American Gilsonite Company |
Utah / Specialty Minerals | Senior Subordinated Note (12.00% plus 3.00% PIK, due 3/14/2013)(3) |
14,783 | 14,783 | 14,931 | 2.1 | % | |||||||||||||
Membership Interest in AGC/PEP, LLC (99.9999%)(16) |
1,031 | 3,532 | 0.5 | % | ||||||||||||||||
15,814 | 18,463 | 2.6 | % | |||||||||||||||||
Arrowhead General Insurance Agency, Inc.(17) |
California / Insurance | Senior Secured Term Loan (8.50%, due 8/08/2012) |
850 | 809 | 830 | 0.1 | % | |||||||||||||
Junior Secured Term Loan (10.25% plus 2.50% PIK, due 2/08/2013) |
6,179 | 5,002 | 5,122 | 0.7 | % | |||||||||||||||
5,811 | 5,952 | 0.8 | % | |||||||||||||||||
Caleel + Hayden, LLC (15) |
Colorado / Personal & Nondurable Consumer Products | Membership Units (7,500 shares) |
351 | 818 | 0.1 | % | ||||||||||||||
Options in Mineral Fusion Natural Brands, LLC (11,662 options) |
| | 0.0 | % | ||||||||||||||||
351 | 818 | 0.1 | % | |||||||||||||||||
18
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Castro Cheese Company, Inc. |
Texas / Food Products | Subordinated Secured Note (11.00% plus 2.00% PIK, due 2/28/2013)(3) |
$ | 7,692 | $ | 7,597 | $ | 7,769 | 1.1 | % | ||||||||||
7,597 | 7,769 | 1.1 | % | |||||||||||||||||
Copernicus Group |
North Carolina / Healthcare | Revolving Line of Credit $500 Commitment (10.00%, due 10/08/2013)(4), (26) |
150 | 22 | 150 | 0.0 | % | |||||||||||||
Senior Secured Term Loan A (10.00%, due 10/08/2013)(3), (4) |
5,850 | 5,058 | 5,416 | 0.8 | % | |||||||||||||||
Senior Subordinated Debt (10.00% plus 10.00% PIK, due 4/08/2014) |
13,390 | 11,421 | 12,677 | 1.8 | % | |||||||||||||||
Preferred Stock Series A (1,000,000 shares) |
67 | 104 | 0.0 | % | ||||||||||||||||
Preferred Stock Series C (212,121 shares) |
212 | 246 | 0.0 | % | ||||||||||||||||
16,780 | 18,593 | 2.6 | % | |||||||||||||||||
Deb Shops, Inc.(17) |
Pennsylvania / Retail | Second Lien Debt (14.00% PIK, in non-accrual status effective 2/24/2009, due 10/23/2014) |
17,562 | 14,606 | 2,051 | 0.3 | % | |||||||||||||
14,606 | 2,051 | 0.3 | % | |||||||||||||||||
Diamondback Operating, LP |
Oklahoma / Oil & Gas Production | Net Profits Interest (15.00% payable on Equity distributions)(7) |
| 193 | 0.0 | % | ||||||||||||||
| 193 | 0.0 | % | |||||||||||||||||
EXL Acquisition Corporation |
South Carolina / Electronics | Revolving Line of Credit $1,000 Commitment (7.75%, due 06/24/2015)(26), (27) |
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (7.75%, due 6/24/2015)(3), (4) |
12,250 | 12,250 | 12,250 | 1.7 | % | |||||||||||||||
Senior Secured Term Loan B (12.00% plus 2.00% PIK, due 12/24/2015)(3) |
12,250 | 12,250 | 12,250 | 1.7 | % | |||||||||||||||
Common Stock Class A (2,475 shares) |
437 | 363 | 0.1 | % | ||||||||||||||||
Common Stock Class B (25 shares) |
252 | 103 | 0.0 | % | ||||||||||||||||
25,189 | 24,966 | 3.5 | % | |||||||||||||||||
Fairchild Industrial Products, Co.(2) |
North Carolina / Electronics | Preferred Stock Class A (285.1 shares) |
377 | 435 | 0.1 | % | ||||||||||||||
Common Stock Class B (28 shares) |
211 | 228 | 0.0 | % | ||||||||||||||||
588 | 663 | 0.1 | % | |||||||||||||||||
H&M Oil & Gas, LLC |
Texas / Oil & Gas Production | Senior Secured Note (13.00% plus 3.00% PIK, due 9/30/2010) |
59,107 | 59,107 | 48,867 | 6.9 | % | |||||||||||||
Net Profits Interest (8.00% payable on Equity distributions)(7) |
| 827 | 0.1 | % | ||||||||||||||||
59,107 | 49,694 | 7.0 | % | |||||||||||||||||
Hoffmaster Group, Inc. |
Wisconsin / Durable Consumer Products | Second Lien Term Loan (13.50%, due 6/2/2017)(3) |
20,000 | 20,000 | 20,000 | 2.8 | % | |||||||||||||
20,000 | 20,000 | 2.8 | % | |||||||||||||||||
Hudson Products Holdings, Inc.(17) |
Texas / Manufacturing | Senior Secured Term Loan (8.00%, due 8/24/2015)(3), (4) |
6,365 | 5,734 | 5,314 | 0.7 | % | |||||||||||||
5,734 | 5,314 | 0.7 | % | |||||||||||||||||
IEC Systems LP (IEC) /Advanced Rig Services LLC (ARS) |
Texas / Oilfield Fabrication | IEC Senior Secured Note (12.00% plus 3.00% PIK, due 11/20/2012)(3), (4) |
19,008 | 19,008 | 19,008 | 2.7 | % | |||||||||||||
ARS Senior Secured Note (12.00% plus 3.00% PIK, due 11/20/2012)(3), (4) |
11,421 | 11,421 | 11,421 | 1.6 | % | |||||||||||||||
30,429 | 30,429 | 4.3 | % | |||||||||||||||||
19
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Impact Products, LLC |
Ohio / Home & Office Furnishings, Housewares & Durable | Junior Secured Term Loan (6.38%, due 9/09/2012)(4) |
$ | 7,300 | $ | 6,351 | $ | 7,290 | 1.0 | % | ||||||||||
Senior Subordinated Debt (10.00% plus 5.00% PIK, due 9/09/2012) |
5,548 | 5,300 | 5,548 | 0.8 | % | |||||||||||||||
11,651 | 12,838 | 1.8 | % | |||||||||||||||||
Label Corp Holdings, Inc. |
Nebraska / Printing & Publishing | Senior Secured Term Loan (8.50%, due 8/08/2014)(3), (4) |
5,794 | 5,222 | 5,284 | 0.7 | % | |||||||||||||
5,222 | 5,284 | 0.7 | % | |||||||||||||||||
LHC Holdings Corp.(17) |
Florida / Healthcare | Revolving Line of Credit $750 Commitment (9.00%, due 11/30/2012)(26), (27) |
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A (9.00%, due 11/30/2012)(3), (4) |
2,015 | 2,015 | 1,839 | 0.3 | % | |||||||||||||||
Senior Subordinated Debt (12.00% plus 2.50% PIK, due 5/31/2013)(3) |
4,565 | 4,199 | 4,220 | 0.6 | % | |||||||||||||||
Membership Interest (125 units) |
216 | 217 | 0.0 | % | ||||||||||||||||
6,430 | 6,276 | 0.9 | % | |||||||||||||||||
Mac & Massey Holdings, LLC |
Georgia / Food Products | Senior Subordinated Debt (10.00% plus 5.75% PIK, due 2/10/2013) |
8,671 | 7,351 | 8,643 | 1.2 | % | |||||||||||||
Membership Interest (250 units) |
145 | 390 | 0.1 | % | ||||||||||||||||
7,496 | 9,033 | 1.3 | % | |||||||||||||||||
Maverick Healthcare, LLC |
Arizona / Healthcare | Second Lien Debt (12.50% plus 3.50% PIK, due 4/30/2014)(3) |
13,122 | 13,122 | 13,247 | 1.9 | % | |||||||||||||
Preferred Units (1,250,000 units) |
1,252 | 2,025 | 0.2 | % | ||||||||||||||||
Common Units (1,250,000 units) |
| | 0.0 | % | ||||||||||||||||
14,374 | 15,272 | 2.1 | % | |||||||||||||||||
Miller Petroleum, Inc. |
Tennessee / Oil & Gas Production | Warrants, Common Stock (2,208,772 warrants, expiring 5/04/2010 to 3/31/2015)(14) |
150 | 1,244 | 0.2 | % | ||||||||||||||
150 | 1,244 | 0.2 | % | |||||||||||||||||
Northwestern Management Services, LLC |
Florida / Healthcare | Revolving Line of Credit $1,000 Commitment (4.36%, due 12/13/2012)(26), (27) |
350 | 350 | 350 | 0.0 | % | |||||||||||||
Senior Secured Term Loan A (4.36%, due 12/13/2012)(3), (4) |
4,309 | 3,516 | 3,578 | 0.5 | % | |||||||||||||||
Senior Secured Term Loan B (4.86%, due 12/13/2012)(3), (4) |
1,219 | 904 | 956 | 0.1 | % | |||||||||||||||
Subordinated Secured Term Loan (12.00% plus 3.00%, due 6/13/2013)(3) |
2,971 | 2,468 | 2,606 | 0.4 | % | |||||||||||||||
Common Stock (50 shares) |
371 | 564 | 0.1 | % | ||||||||||||||||
7,609 | 8,054 | 1.1 | % | |||||||||||||||||
Prince Mineral Company, Inc. |
New York / Metal Services and Minerals | Junior Secured Term Loan (9.00%, due 12/21/2012)(4) |
11,150 | 11,150 | 11,150 | 1.6 | % | |||||||||||||
Senior Subordinated Debt (13.00% plus 2.00%, due 7/21/2013) |
12,260 | 1,420 | 12,260 | 1.7 | % | |||||||||||||||
12,570 | 23,410 | 3.3 | % | |||||||||||||||||
Qualitest Pharmaceuticals, Inc.(17) |
Alabama / Pharmaceuticals | Second Lien Debt (7.79%, due 4/30/2015)(3), (4) |
12,000 | 11,955 | 12,000 | 1.7 | % | |||||||||||||
11,955 | 12,000 | 1.7 | % | |||||||||||||||||
20
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 3 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Regional Management Corporation |
South Carolina / Financial Services | Second Lien Debt (12.00% plus 2.00% PIK, due 6/29/2012)(3) |
$ | 25,814 | $ | 25,814 | $ | 25,592 | 3.6 | % | ||||||||||
25,814 | 25,592 | 3.6 | % | |||||||||||||||||
Roll Coater Acquisition Corp. |
Indiana / Metal Services and Minerals | Subordinated Secured Debt (10.25%, due 9/30/2010) |
6,268 | 6,102 | 6,082 | 0.9 | % | |||||||||||||
6,102 | 6,082 | 0.9 | % | |||||||||||||||||
R-O-M Corporation | Missouri / Automobile | Revolving Line of Credit $1,750 Commitment (4.50%, due 2/08/2013)(26), (27) |
| | 0.0 | % | ||||||||||||||
Senior Secured Term Loan A
(4.50%, due 2/08/2013)(3), (4) |
4,640 | 4,025 | 4,571 | 0.6 | % | |||||||||||||||
Senior Secured Term Loan B
(8.00%, due 5/08/2013)(3), (4) |
7,251 | 7,251 | 7,078 | 1.0 | % | |||||||||||||||
Senior Subordinated Debt (12.00% plus 3.00% PIK due 8/08/2013)(3) |
7,118 | 6,799 | 6,392 | 0.9 | % | |||||||||||||||
18,075 | 18,041 | 2.5 | % | |||||||||||||||||
Seaton Corp |
Illinois / Business Services | Subordinated Secured (12.50% plus 2.00% PIK, due 3/14/2011) |
12,296 | 12,060 | 12,132 | 1.7 | % | |||||||||||||
12,060 | 12,132 | 1.7 | % | |||||||||||||||||
Shearers Foods, Inc. |
Ohio / Food Products | Junior Secured Debt (12.00% plus 3.00% PIK, due 3/31/2016)(3) |
35,266 | 35,266 | 36,119 | 5.1 | % | |||||||||||||
Membership Interest in Mistral Chip Holdings, LLC (2,000 units)(18) |
2,560 | 6,136 | 0.9 | % | ||||||||||||||||
Membership Interest in Mistral Chip Holdings, LLC 2 (595 units)(18) |
762 | 1,825 | 0.2 | % | ||||||||||||||||
38,588 | 44,080 | 6.2 | % | |||||||||||||||||
Skillsoft Public Limited Company |
Ireland / Prepackaged Software | Subordinated Unsecured (11.125%, due 06/01/2018) |
15,000 | 14,903 | 15,000 | 2.2 | % | |||||||||||||
14,903 | 15,000 | 2.2 | % | |||||||||||||||||
Stryker Energy, LLC |
Ohio / Oil & Gas Production | Subordinated Secured Revolving Credit Facility (12.00%, due 12/01/2012)(3), (4) |
29,724 | 29,507 | 29,624 | 4.2 | % | |||||||||||||
Overriding Royalty Interests(19) |
| 2,768 | 0.4 | % | ||||||||||||||||
29,507 | 32,392 | 4.6 | % | |||||||||||||||||
TriZetto Group(17) |
California / Healthcare | Subordinated Unsecured Note (12.00% plus 1.50% PIK, due 10/01/2016)(3) |
15,434 | 15,306 | 15,895 | 2.2 | % | |||||||||||||
15,306 | 15,895 | 2.2 | % | |||||||||||||||||
Unitek(17) |
Pennsylvania / Technical Services | Second Lien Debt (13.08%, due 12/31/2013)(3), (4) |
11,500 | 11,387 | 11,615 | 1.7 | % | |||||||||||||
11,387 | 11,615 | 1.7 | % | |||||||||||||||||
Wind River Resources Corp. and Wind River II Corp. |
Utah / Oil & Gas Production | Senior Secured Note (13.00% plus 3.00% default interest, in non-accrual status effective 12/01/2008, due 7/31/2010)(4) |
15,000 | 15,000 | 8,779 | 1.2 | % | |||||||||||||
Net Profits Interest (5.00% payable on Equity distributions)(7) |
| | 0.0 | % | ||||||||||||||||
15,000 | 8,779 | 1.2 | % | |||||||||||||||||
Total Non-Control/Non-Affiliate Investments (Level 3 Investments) |
476,441 | 477,417 | 67.1 | % | ||||||||||||||||
Total Level 3 Portfolio Investments | 727,243 | 747,115 | 105.0 | % | ||||||||||||||||
21
June 30, 2010 | ||||||||||||||||||||
% of | ||||||||||||||||||||
Principal | Fair | Net | ||||||||||||||||||
Portfolio Company | Locale / Industry | Investments(1) | Value | Cost | Value(2) | Assets | ||||||||||||||
LEVEL 1 PORTFOLIO INVESTMENTS: | ||||||||||||||||||||
Non-control/Non-affiliate Investments (less than 5.00% of voting control) | ||||||||||||||||||||
Allied Defense Group, Inc. |
Virginia / Aerospace & Defense | Common Stock (10,000 shares) |
$ | 56 | $ | 38 | 0.0 | % | ||||||||||||
56 | 38 | 0.0 | % | |||||||||||||||||
Dover Saddlery, Inc. |
Massachusetts / Retail | Common Stock (30,974 shares) |
63 | 97 | 0.0 | % | ||||||||||||||
63 | 97 | 0.0 | % | |||||||||||||||||
LyondellBasell Industries N.V.(22) |
Netherlands / Chemical Company | Class A Common Stock (26,961 shares) |
874 | 435 | 0.2 | % | ||||||||||||||
Class B Common Stock (49,421 shares) |
523 | 798 | 0.0 | % | ||||||||||||||||
1,397 | 1,233 | 0.2 | % | |||||||||||||||||
Total Non-Control/Non-Affiliate Investments
(Level 1 Investments) |
1,516 | 1,368 | 0.2 | % | ||||||||||||||||
Total Portfolio Investments |
728,759 | 748,483 | 105.2 | % | ||||||||||||||||
SHORT TERM INVESTMENTS: Money Market Funds (Level 2 Investments) | ||||||||||||||||||||
Fidelity Institutional Money Market Funds Government Portfolio (Class I) | 62,183 | 62,183 | 8.8 | % | ||||||||||||||||
Fidelity Institutional Money Market Funds Government Portfolio (Class I)(3) | 6,687 | 6,687 | 0.9 | % | ||||||||||||||||
Victory Government Money Market Funds | 1 | 1 | 0.0 | % | ||||||||||||||||
Total Money Market Funds |
68,871 | 68,871 | 9.7 | % | ||||||||||||||||
Total Investments |
797,630 | 817,354 | 114.9 | % | ||||||||||||||||
22
(1) | The securities in which Prospect Capital Corporation (we,
us or our) has invested were acquired in transactions that
were exempt from registration under the Securities Act of 1933,
as amended, or the Securities Act. These securities may be
resold only in transactions that are exempt from registration
under the Securities Act. |
|
(2) | Fair value is determined by or under the direction of our Board
of Directors. As of September 30, 2010, two of our portfolio
investments, Allied Defense Group, Inc. (Allied) and Dover
Saddlery, Inc. (Dover) were publically traded and classified
as Level 1 within the valuation hierarchy established by
Accounting Standards Codification 820, Fair Value Measurements
and Disclosures (ASC 820). As of June 30, 2010, three of our
portfolio investments, Allied, Dover and LyondellBasel
Industries N.V., were publically traded and classified as Level
1 within the valuation hierarchy established by ASC 820. As of
September 30, 2010 and June 30, 2010, the fair value of our
remaining portfolio investments was determined using
significant unobservable inputs. ASC 820 classifies such inputs
used to measure fair value as Level 3 within the valuation
hierarchy. Our investments in money market funds are classified
as Level 2. See Note 3 and Note 4 within the accompanying
consolidated financial statements for further discussion. |
|
(3) | Security, or portion thereof, is held as collateral for the
revolving credit facility (see Note 11). The market values of
these investments at September 30, 2010 and June 30, 2010 were
$604,330 and $512,244, respectively; they represent 71.0% and
62.7% of total investments at fair value, respectively. |
|
(4) | Security, or portion thereof, has a floating interest rate.
Stated interest rate was in effect at September 30, 2010 and
June 30, 2010. |
|
(5) | There are several entities involved in the Biomass investment.
We own 100 shares of common stock in Worcester Energy Holdings,
Inc. (WEHI), representing 100% of the issued and outstanding
common stock. WEHI, in turn, owns 51 membership certificates in
Biochips LLC (Biochips), which represents a 51% ownership
stake.
|
|
We own 282 shares of common stock in Worcester Energy Co., Inc.
(WECO), which represents 51% of the issued and outstanding
common stock. We own directly 1,665 shares of common stock in
Change Clean Energy Inc. (CCEI), f/k/a Worcester Energy
Partners, Inc., which represents 51% of the issued and
outstanding common stock and the remaining 49% is owned by
WECO. CCEI owns 100 shares of common stock in Precision Logging
and Landclearing, Inc. (Precision), which represents 100% of
the issued and outstanding common stock.
|
||
During the quarter ended March 31, 2009, we created two new
entities in anticipation of the foreclosure proceedings against
the co-borrowers (WECO, CCEI and Biochips) Change Clean Energy
Holdings, Inc. (CCEHI) and DownEast Power Company, LLC
(DEPC). We own 1,000 shares of CCEHI, representing 100% of
the issued and outstanding stock, which in turn, owns a 100% of
the membership interests in DEPC.
|
||
On March 11, 2009, we foreclosed on the assets formerly held by
CCEI and Biochips with a successful credit bid of $6,000 to
acquire the assets. The assets were subsequently assigned to
DEPC. WECO, CCEI and Biochips are joint borrowers on the term
note issued to Prospect Capital. Effective July 1, 2008, this
loan was placed on non-accrual status.
|
||
Biochips, WECO, CCEI, Precision and WEHI currently have no
material operations and no significant assets. As of June 30,
2009, our Board of Directors assessed a fair value of $0 for
all of these equity positions and the loan position. We
determined that the impairment of both CCEI and CCEHI as of
June 30, 2009 was other than temporary and recorded a realized
loss for the amount that the amortized cost exceeds the fair
value at June 30, 2009. Our Board of Directors set no value for
the CCEHI investment as of September 30, 2010 and June 30,
2010. |
||
(6) | During the quarter ended December 31, 2009, we created two new
entities, Coalbed Inc. and Coalbed LLC, to foreclose on the
outstanding senior secured loan and assigned rights and
interests of Conquest Cherokee, LLC (Conquest), as a result
of the deterioration of Conquests financial performance and
inability to service debt payments. We own 1,000 shares of
common stock in Coalbed Inc., representing 100% of the issued
and outstanding common stock. Coalbed Inc., in turn owns 100%
of the membership interest in Coalbed LLC.
|
|
On October 21, 2009, Coalbed LLC foreclosed on the loan
formerly made to Conquest. On January 19, 2010, as part of the
Manx rollup, the Coalbed LLC assets and loan was assigned to
Manx, the holding company. As of September 30, 2010, our Board
of Directors assessed a fair value of $1,202 for the loan
position in Coalbed LLC, a decrease of $212 from the fair value
as of June 30, 2010. |
||
(7) | In addition to the stated returns, the net profits interest
held will be realized upon sale of the borrower or a sale of
the interests. |
|
(8) | Gas Solutions Holdings, Inc. is a wholly-owned investment of us. |
23
(9) | Entity was formed as a result of the debt restructuring of ESA Environmental Specialist, Inc. In early 2009, we
foreclosed on the two loans on non-accrual status and purchased the underlying personal and real property. We own
1,000 shares of common stock in The Healing Staff (THS), f/k/a Lisamarie Fallon, Inc. representing 100%
ownership. We own 1,500 shares of Vets Securing America, Inc. (VSA), representing 100% ownership. VSA is a
holding company for the real property of Integrated Contract Services, Inc. (ICS) purchased during the
foreclosure process. |
|
(10) | Loan is with THS an affiliate of ICS. |
|
(11) | On June 30, 2008, we consolidated our holdings in four coal companies into Yatesville Coal
Holdings, Inc. (Yatesville), and consolidated the operations under one management team. As part
of the transaction, the debt that we held of C&A Construction, Inc. (C&A), Genesis Coal Corp.
(Genesis), North Fork Collieries LLC (North Fork) and Unity Virginia Holdings LLC (Unity)
were exchanged for newly issued debt from Yatesville, and our ownership interests in C&A, E&L
Construction, Inc. (E&L), Whymore Coal Company Inc. (Whymore) and North Fork were exchanged
for 100% of the equity of Yatesville. This reorganization allows for a better utilization of the
assets in the consolidated group.
|
|
At September 30, 2010 and at June 30, 2010, Yatesville owned 100% of the membership interest of
North Fork. In addition, Yatesville held a $9,325 note receivable from North Fork as of those two
respective dates.
|
||
At September 30, 2010 and at June 30, 2010, we owned 96% and 87%, respectively, of the common
stock of Genesis and held a note receivable of $20,897 as of those two respective dates.
|
||
Yatesville held a note receivable of $4,261 from Unity at September 30, 2010 and at June 30, 2010.
|
||
There are several entities involved in Yatesvilles investment in Whymore at June 30, 2009. As of
June 30, 2009, Yatesville owned 10,000 shares of common stock or 100% of the equity and held a
$14,973 senior secured debt receivable from C&A, which owns the equipment. Yatesville owned
10,000 shares of common stock or 100% of the equity of E&L, which leases the equipment from C&A,
employs the workers, is listed as the operator with the Commonwealth of Kentucky, mines the coal,
receives revenues and pays all operating expenses. Yatesville owned 4,900 shares of common stock
or 49% of the equity of Whymore, which applies for and holds permits on behalf of E&L. Yatesville
also owned 4,285 Series A convertible preferred shares in each of C&A, E&L and Whymore. Whymore
and E&L are guarantors under the C&A credit agreement with Yatesville.
|
||
In August 2009, Yatesville sold its 49% ownership interest in the common shares of Whymore to the
51% holder of the Whymore common shares (Whymore Purchaser). All reclamation liability was
transferred to the Whymore Purchaser. In September 2009, Yatesville completed an auction for all
of its equipment.
|
||
Yatesville currently has no material operations. During the quarter ended December 31, 2009, our
Board of Directors determined that the impairment of Yatesville was other than temporary and we
recorded a realized loss for the amount that the amortized cost exceeds the fair value. Our Board
of Directors set the value of the remaining Yatesville investment at $808 as of September 30,
2010 and June 30, 2010. |
||
(12) | On January 19, 2010, we modified the terms of our senior secured debt in AEH and Coalbed in
conjunction with the formation of Manx Energy, a new entity consisting in the assets of AEH,
Coalbed and Kinley Exploration. The assets of the three companies were brought under new common
management. We funded $2,800 at closing to Manx to provide for working capital. A portion of our
loans to AEH and Coalbed was exchanged for Manx preferred equity, while our AEH equity interest
was converted into Manx common stock. There was no change to fair value at the time of
restructuring, and we continue to fully reserve any income accrued for Manx. |
|
(13) | On a fully diluted basis represents, 11.677% of voting common shares. |
|
(14) | Total common shares outstanding of 33,434,838 as of September 7, 2010 from Miller Petroleum,
Inc.s (Miller) Quarterly Report on Form 10-Q filed on September 13, 2010. Total common shares
outstanding of 33,389,383 as of July 22, 2010 from Millers Annual Report on Form 10-K filed on
July 28, 2010 as applicable to our June 30, 2010 reporting date. |
24
(15) | A portion of the positions listed were issued by an affiliate of the portfolio company. |
|
(16) | We own 99.9999% of AGC/PEP, LLC. AGC/PEP, LLC owns 2,037.65 out of a total of 83,818.69 shares (including 4,932
vested an unvested management options) of American Gilsonite Holding Company which owns 100% of American
Gilsonite Company. |
|
(17) | Syndicated investment which had been originated by another financial institution and broadly distributed. |
|
(18) | At September 30, 2010 and June 30, 2010, Mistral Chip Holdings, LLC owns 44,800 shares of Chip Holdings, Inc.
and Mistral Chip Holdings 2, LLC owns 11,975 shares in Chip Holdings, Inc. Chip Holdings, Inc. is the parent
company of Shearers Foods, Inc. and has 67,936 shares outstanding before adjusting for management options. |
|
(19) | The overriding royalty interests held receive payments at the stated rates based upon operations of the borrower. |
|
(20) | On December 31, 2009, we sold our investment in Aylward Enterprises, LLC. AWCNC, LLC is the remaining holding
company with zero assets and our remaining outstanding debt has no value of September 30, 2010 and June 30,
2010, respectively. |
|
(21) | There are several entities involved in the Appalachian Energy Holdings LLC (AEH) investment. We own warrants,
the exercise of which will permit us to purchase 37,090 Class A common units of AEH at a nominal cost and in
near-immediate fashion. We own 200 units of Series A preferred equity, 241 units of Series B preferred equity,
and 500 units of Series C preferred equity of AEH. The senior secured notes are with C&S Operating LLC and East
Cumberland L.L.C., both operating companies owned by AEH. |
|
(22) | We own warrants to purchase 33,750 shares of common stock in Metal Buildings Holding Corporation (Metal
Buildings), the former holding company of Borga, Inc. Metal Buildings Holding Corporation owned 100% of Borga,
Inc.
On March 8, 2010, we foreclosed on the stock in Borga, Inc. that was held by Metal Buildings, obtaining 100%
ownership of Borga, Inc. |
|
(23) | We own 100% of C&J Cladding Holding Company, Inc., which owns 40% of the membership interests in C&J Cladding,
LLC. |
|
(24) | On January 1, 2010, we restructured our senior secured and bridge loans investment in Iron Horse Coiled Tubing,
Inc. (Iron Horse) and we reorganized Iron Horses management structure. The senior secured loan and bridge
loan were replaced with three new tranches of senior secured debt. From June 30, 2009 to September 30, 2010, our
total ownership of Iron Horse decreased from 80.0% to 70.4%, respectively.
As of September 30, 2010 and June 30, 2010, our Board of Directors assessed a fair value in Iron Horse of
$15,064 and $12,054, respectively. |
|
(25) | We own 2,800,000 units in Class A Membership Interests and 372,094 units in Class A-1 Membership Interests. |
|
(26) | Undrawn committed revolvers incur a 0.50% commitment fee. As of September 30, 2010 and June 30, 2010, we have
$10,982 and $10,382 of undrawn revolver commitments to our portfolio companies, respectively. |
|
(27) | Stated interest rates are based on September 30, 2010 and June 30, 2010 one month LIBOR rates plus applicable
spreads based on the respective credit agreements. Interest rates are subject to change based on actual
elections by the borrower for a LIBOR rate contract or Base Rate contract when drawing on the revolver. |
25
26
Cash (to repay Patriot debt) |
$ | 107,313 | ||
Cash (to fund purchase of restricted stock from former Patriot employees) |
970 | |||
Common stock issued (1) |
92,800 | |||
Total purchase price |
201,083 | |||
Assets acquired: |
||||
Investments (2) |
207,126 | |||
Cash and cash equivalents |
1,697 | |||
Other assets |
3,859 | |||
Assets acquired |
212,682 | |||
Other liabilities assumed |
(2,967 | ) | ||
Net assets acquired |
209,715 | |||
Gain on Patriot acquisition (3) |
$ | 8,632 | ||
(1) | The value of the shares of common stock exchanged with the
Patriot common shareholders was based upon the closing price of our common
stock on December 2, 2009, the price immediately prior to the closing of
the transaction. |
|
(2) | The fair value of Patriots investments were determined by the
Board of Directors in conjunction with an independent valuation agent. This
valuation resulted in a purchase price which was $98,150 below the
amortized cost of such investments. For those assets which are performing,
Prospect will record the accretion to par value in interest income over the
remaining term of the investment. |
|
(3) | The gain has been determined after the final payments of certain
liabilities have been settled. |
Investment securities |
$ | 207,126 | ||
Cash and cash equivalents |
1,697 | |||
Other assets |
3,859 | |||
Total assets |
212,682 | |||
Other liabilities |
(2,967 | ) | ||
Final fair value of net assets acquired |
$ | 209,715 | ||
For the Three Months Ended | ||||
September 30, 2009 | ||||
Total Investment Income |
$ | 29,567 | ||
Net Investment Income |
13,677 | |||
Net Increase (Decrease) in Net Assets Resulting
from Operations |
(10,902 | ) | ||
Net Increase (Decrease) in Net Assets Resulting
from Operations per share |
$ | (0.19 | ) |
27
28
1) | Each portfolio company or investment is reviewed by our investment
professionals with the independent valuation firm; |
||
2) | the independent valuation firm engaged by our Board of Directors
conducts independent appraisals and makes their own independent
assessment; |
||
3) | the audit committee of our Board of Directors reviews and discusses
the preliminary valuation of our Investment Adviser and that of the
independent valuation firm; and |
||
4) | the Board of Directors discusses valuations and determines the fair
value of each investment in our portfolio in good faith based on the
input of our Investment Adviser, the respective independent valuation
firm and the audit committee. |
29
30
31
32
Significant | ||||||||||||||||
Quoted Prices in | Other | Significant | ||||||||||||||
Active Markets for | Observable | Unobservable | ||||||||||||||
Identical Securities | Inputs | Inputs | ||||||||||||||
(Level 1) | (Level 2) | (Level 3) | Total | |||||||||||||
Investments at fair value |
||||||||||||||||
Control investments |
$ | | $ | | $ | 258,831 | $ | 258,831 | ||||||||
Affiliate investments |
| | 70,254 | 70,254 | ||||||||||||
Non-control/non-affiliate investments |
111 | | 500,981 | 501,092 | ||||||||||||
111 | | 830,066 | 830,177 | |||||||||||||
Investments in money market funds |
| 21,040 | | 21,040 | ||||||||||||
Total assets reported at fair value |
$ | 111 | $ | 21,040 | $ | 830,066 | $ | 851,217 | ||||||||
33
Fair Value Measurements Using Unobservable Inputs (Level 3) | ||||||||||||||||
Non-Control/ | ||||||||||||||||
Control | Affiliate | Non-Affiliate | ||||||||||||||
Investments | Investments | Investments | Total | |||||||||||||
Fair value as of June 30, 2010 |
$ | 195,958 | $ | 73,740 | $ | 477,417 | $ | 747,115 | ||||||||
Total realized gains |
123 | | | 123 | ||||||||||||
Change in unrealized (depreciation) appreciation |
9,960 | (2,833 | ) | (2,264 | ) | 4,863 | (1) | |||||||||
Net realized and unrealized (loss) gain |
10,083 | (2,833 | ) | (2,264 | ) | 4,986 | ||||||||||
Purchases of portfolio investments |
57,168 | 250 | 71,181 | 128,599 | ||||||||||||
Payment-in-kind interest |
32 | 629 | 3,644 | 4,305 | ||||||||||||
Accretion of original issue discount |
982 | 355 | 1,817 | 3,154 | ||||||||||||
Dispositions of portfolio investments |
(5,392 | ) | (1,887 | ) | (50,814 | ) | (58,093 | ) | ||||||||
Transfers within Level 3 |
| | | | ||||||||||||
Transfers in (out) of Level 3 |
| | | | ||||||||||||
Fair value as of September 30, 2010 |
$ | 258,831 | $ | 70,254 | $ | 500,981 | $ | 830,066 | ||||||||
(1) | Relates to assets held at September 30, 2010 |
34
For The Three Months | ||||||||
Ended | ||||||||
September 30, | ||||||||
Income Source | 2010 | 2009 | ||||||
Structuring and amendment fees |
$ | 3,957 | $ | 405 | ||||
Overriding royalty interests |
48 | 44 | ||||||
Administrative agent fee |
92 | 15 | ||||||
Other Investment Income |
$ | 4,097 | $ | 464 | ||||
Number of | Gross | |||||||||||||||||||
Shares | Proceeds | Underwriting | Offering | Offering | ||||||||||||||||
Issuances of Common Stock | Issued | Raised | Fees | Expenses | Price | |||||||||||||||
September 29, 2010 - September 30, 2010(1) |
302,400 | $ | 2,986 | $ | 60 | $ | 203 | $ | 9.873 | |||||||||||
July 22, 2010 - September 28, 2010(2) |
6,000,000 | $ | 58,403 | $ | 1,156 | $ | 103 | $ | 9.734 | |||||||||||
July 1, 2010 - July 21, 2010(3) |
2,748,600 | $ | 26,799 | $ | 536 | $ | | $ | 9.749 | |||||||||||
September 24, 2009 (4) |
2,807,111 | $ | 25,264 | $ | | $ | 840 | $ | 9.000 | |||||||||||
August 20, 2009 (4) |
3,449,686 | $ | 29,322 | $ | | $ | 117 | $ | 8.500 | |||||||||||
July 7, 2009 |
5,175,000 | $ | 46,575 | $ | 2,329 | $ | 200 | $ | 9.000 |
(1) | On September 24, 2010, we established a new at-the-market program through
which we may sell, from time to time and at our sole discretion 6,000,000 shares of our common
stock. Through this program we issued 302,400 shares of our common stock at an average price of
$9.87 per share, raising $2,986 of gross proceeds, from September 29, 2010 through September 30,
2010. |
|
(2) | On July 19, 2010, we established a new at-the-market program through which we
sold 6,000,000 shares of our common stock at an average price of $9.73 per share, raising
$58,403 of gross proceeds, from July 22, 2010 through September 28, 2010. |
|
(3) | On March 17, 2010, we established an at-the-market program through which we sold
8,000,000 shares of our common stock. Through this program we issued 2,748,600 shares of our
common stock at an average price of $9.75 per share, raising $26,799 of gross proceeds, from
July 1, 2010 through July 21, 2010. |
|
(4) | Concurrent with the sale of these shares, we entered into a registration
rights agreement in which we granted the purchasers certain registration rights with respect to
the shares. We have filed with the SEC a post-effective amendment to the registration statement
on Form N-2 which has been declared effective by the SEC. |
35
| $0.100625 per share for September 2010 to holders of record on September 30, 2010 with a
payment date of October 29, 2010; |
||
| $0.100750 per share for October 2010 to holders of record on October 29, 2010 with a
payment date of November 30, 2010. |
For The Three Months Ended | ||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
Net increase (decrease) in net assets resulting from operations |
$ | 25,580 | $ | (6,378 | ) | |||
Weighted average common shares outstanding |
74,177,194 | 49,804,906 | ||||||
Net increase (decrease) in net assets resulting from
operations per common share |
$ | 0.34 | $ | (0.13 | ) | |||
36
| no incentive fee in any calendar quarter in which our pre-incentive fee net investment
income does not exceed the hurdle rate; |
||
| 100.00% of our pre-incentive fee net investment income with respect to that portion of
such pre-incentive fee net investment income, if any, that exceeds the hurdle rate but is
less than 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized
assuming a 7.00% annualized hurdle rate); and |
||
| 20.00% of the amount of our pre-incentive fee net investment income, if any, that
exceeds 125.00% of the quarterly hurdle rate in any calendar quarter (8.75% annualized
assuming a 7.00% annualized hurdle rate). |
37
38
For The Three Months Ended | ||||||||
September 30, | ||||||||
2010 | 2009 | |||||||
Per Share Data(1): |
||||||||
Net asset value at beginning of period |
$ | 10.30 | $ | 12.40 | ||||
Net investment income |
0.28 | 0.25 | ||||||
Net realized
gain |
0.01 | | ||||||
Net unrealized appreciation (depreciation ) |
0.05 | (0.38 | ) | |||||
Net decrease in net assets as a result of public offerings |
(0.09 | ) | (0.77 | ) | ||||
Dividends declared and paid |
(0.31 | ) | (0.39 | ) | ||||
Net asset value at end of period |
$ | 10.24 | $ | 11.11 | ||||
Per share market value at end of period |
$ | 9.71 | $ | 10.71 | ||||
Total return based on market value(2) |
3.74 | % | 20.84 | % | ||||
Total return based on net asset value(2) |
2.50 | % | (7.00 | %) | ||||
Shares outstanding at end of period |
78,401,363 | 54,672,155 | ||||||
Average weighted shares outstanding for period |
74,177,194 | 49,804,906 | ||||||
Ratio / Supplemental Data: |
||||||||
Net assets at end of period |
$ | 802,824 | $ | 607,246 | ||||
Annualized ratio of operating expenses to average net assets |
7.51 | % | 7.59 | % | ||||
Annualized ratio of net operating income to average net
assets |
11.09 | % | 10.02 | % |
39
Year | Year | Year | Year | Year | ||||||||||||||||
Ended | Ended | Ended | Ended | Ended | ||||||||||||||||
June 30, 2010 | June 30, 2009 | June 30, 2008 | June 30, 2007 | June 30, 2006 | ||||||||||||||||
Per Share Data(1): |
||||||||||||||||||||
Net asset value at beginning of period |
$ | 12.40 | $ | 14.55 | $ | 15.04 | $ | 15.31 | $ | 14.59 | ||||||||||
Costs related to the initial public offering |
| | | | 0.01 | |||||||||||||||
Costs related to the secondary public offering |
| | (0.07 | ) | (0.06 | ) | | |||||||||||||
Net investment income |
1.13 | 1.87 | 1.91 | 1.47 | 1.21 | |||||||||||||||
Realized (loss) gain |
(0.87 | ) | (1.24 | ) | (0.69 | ) | 0.12 | 0.04 | ||||||||||||
Net unrealized appreciation (depreciation) |
0.07 | 0.48 | (0.05 | ) | (0.52 | ) | 0.58 | |||||||||||||
Net (decrease) increase in net assets as a
result of public offering |
(0.85 | ) | (2.11 | ) | | 0.26 | | |||||||||||||
Net increase in net assets as a result of
shares issued for Patriot acquisition |
0.12 | | | | | |||||||||||||||
Dividends declared and paid |
(1.70 | ) | (1.15 | ) | (1.59 | ) | (1.54 | ) | (1.12 | ) | ||||||||||
Net asset value at end of period |
$ | 10.30 | $ | 12.40 | $ | 14.55 | $ | 15.04 | $ | 15.31 | ||||||||||
Per share market value at end of period |
$ | 9.65 | $ | 9.20 | $ | 13.18 | $ | 17.47 | $ | 16.99 | ||||||||||
Total return based on market value(2) |
17.66 | % | (18.60 | %) | (15.90 | %) | 12.65 | % | 44.90 | % | ||||||||||
Total return based on net asset value(2) |
(6.82 | %) | (0.61 | %) | 7.84 | % | 7.62 | % | 12.76 | % | ||||||||||
Shares outstanding at end of period |
69,086,862 | 42,943,084 | 29,520,379 | 19,949,065 | 7,069,873 | |||||||||||||||
Average weighted shares outstanding for period |
59,429,222 | 31,559,905 | 23,626,642 | 15,724,095 | 7,056,846 | |||||||||||||||
Ratio / Supplemental Data: |
||||||||||||||||||||
Net assets at end of period (in thousands) |
$ | 711,424 | $ | 532,596 | $ | 429,623 | $ | 300,048 | $ | 108,270 | ||||||||||
Annualized ratio of operating expenses to average net assets |
7.54 | % | 9.03 | % | 9.62 | % | 7.36 | % | 8.19 | % | ||||||||||
Annualized ratio of net investment income to average net
assets |
10.69 | % | 13.14 | % | 12.66 | % | 9.71 | % | 7.90 | % |
(1) | Financial highlights are based on weighted average shares. |
|
(2) | Total return based on market value is based on the change in market price per share between
the opening and ending market prices per share in each period and assumes that dividends are
reinvested in accordance with our dividend reinvestment plan. Total return based on net asset
value is based upon the change in net asset value per share between the opening and ending net
asset values per share in each period and assumes that dividends are reinvested in accordance
with our dividend reinvestment plan. |
40
41
Net Realized and | Net Increase (Decrease) | |||||||||||||||||||||||||||||||
Unrealized | in Net Assets from | |||||||||||||||||||||||||||||||
Investment Income | Net Investment Income | Gains (Losses) | Operations | |||||||||||||||||||||||||||||
Quarter Ended | Total | Per Share(1) | Total | Per Share(1) | Total | Per Share(1) | Total | Per Share(1) | ||||||||||||||||||||||||
September 30, 2007 |
15,391 | 0.77 | 7,865 | 0.39 | 685 | 0.04 | 8,550 | 0.43 | ||||||||||||||||||||||||
December 31, 2007 |
18,563 | 0.80 | 10,660 | 0.46 | (14,346 | ) | (0.62 | ) | (3,686 | ) | (0.16 | ) | ||||||||||||||||||||
March 31, 2008 |
22,000 | 0.92 | 12,919 | 0.54 | (14,178 | ) | (0.59 | ) | (1,259 | ) | (0.05 | ) | ||||||||||||||||||||
June 30, 2008 |
23,448 | 0.85 | 13,669 | 0.50 | 10,317 | 0.38 | 23,986 | 0.88 | ||||||||||||||||||||||||
September 30, 2008(2) |
35,799 | 1.21 | 23,502 | 0.80 | (9,504 | ) | (0.33 | ) | 13,998 | 0.47 | ||||||||||||||||||||||
December 31, 2008 |
22,213 | 0.75 | 11,960 | 0.40 | (5,436 | ) | (0.18 | ) | 6,524 | 0.22 | ||||||||||||||||||||||
March 31, 2009 |
20,669 | 0.69 | 11,720 | 0.39 | 3,611 | 0.12 | 15,331 | 0.51 | ||||||||||||||||||||||||
June 30, 2009 |
21,800 | 0.59 | 11,981 | 0.32 | (12,730 | ) | (0.34 | ) | (749 | ) | (0.02 | ) | ||||||||||||||||||||
September 30, 2009 |
21,517 | 0.43 | 12,318 | 0.25 | (18,696 | ) | (0.38 | ) | (6,378 | ) | (0.13 | ) | ||||||||||||||||||||
December 31, 2009(3) |
31,801 | 0.55 | 19,258 | 0.33 | (33,778 | ) | (0.59 | ) | (14,520 | ) | (0.25 | ) | ||||||||||||||||||||
March 31, 2010 |
32,005 | 0.50 | 18,974 | 0.30 | 6,966 | 0.11 | 25,940 | 0.41 | ||||||||||||||||||||||||
June 30, 2010 |
29,236 | 0.44 | 16,640 | 0.25 | (2,057 | ) | (0.03 | ) | 14,583 | 0.22 | ||||||||||||||||||||||
September 30, 2010 |
35,212 | 0.47 | 20,995 | 0.28 | 4,585 | 0.06 | 25,580 | 0.34 |
(1) | Per share amounts are calculated using weighted average shares during period. |
|
(2) | Additional income for this quarter was driven by other investment income from the
settlement of net profits interests on IEC Systems LP and Advanced Rig Services
LLC for $12,576. |
|
(3) | As adjusted for increase in gain from Patriot acquisition. See Note 2. |