tcrd-10q_20190331.htm

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended March 31, 2019

OR

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

For the transition period from                       to                     

Commission file number 814-00789

 

THL CREDIT, INC.

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

 

Delaware

 

27-0344947

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

 

 

 

100 Federal St., 31st Floor, Boston, MA

 

02110

(Address of Principal Executive Offices)

 

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 800-450-4424

 

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, as amended, during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  

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

 

Large accelerated filer

 

 

Accelerated filer

 

 

 

 

 

 

 

 

Non-Accelerated filer

 

  

 

Smaller reporting company

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).    Yes      No  

Securities registered pursuant to 12(b) of the Act:

 

Title of Each Class

Trading Symbols

 

Name of Each Exchange on Which Registered

Common Stock, par value $0.001 per share

TCRD

 

NASDAQ Global Select Market

6.75% Senior Notes due 2022

TCRZ

 

The New York Stock Exchange

6.125% Senior Notes due 2023

TCRW

 

The New York Stock Exchange

The number of shares of the registrant’s common stock, $0.001 par value per share, outstanding as of May 8, 2019 was 31,808,878.

 

 

 

 


THL CREDIT, INC.

FORM 10-Q FOR THE QUARTER ENDED March 31, 2019

Table of Contents

 

 

 

 

 

 

PART I.

  

FINANCIAL INFORMATION

  

 

 

 

 

 

 

Item 1.

 

Financial Statements

 

 

 

 

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of March 31, 2019 (unaudited) and December 31, 2018

 

4

 

 

 

 

 

 

 

Consolidated Statements of Operations for the three months ended March 31, 2019 and 2018 (unaudited)

 

5

 

 

 

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2019 and 2018 (unaudited)

 

6

 

 

 

 

 

 

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2019 and 2018 (unaudited)

 

7

 

 

 

 

 

 

 

Consolidated Schedules of Investments as of March 31, 2019 (unaudited) and December 31, 2018

 

8

 

 

 

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

 

27

 

 

 

 

 

Item 2.

 

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

 

70

 

 

 

 

 

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk

 

99

 

 

 

 

 

Item 4.

 

Controls and Procedures

 

99

 

 

 

 

 

PART II.

 

OTHER INFORMATION

 

100

 

 

 

 

 

Item 1.

 

Legal Proceedings

 

100

 

 

 

 

 

Item 1A.

 

Risk Factors

 

100

 

 

 

 

 

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds

 

100

 

 

 

 

 

Item 3.

 

Defaults Upon Senior Securities

 

100

 

 

 

 

 

Item 4.

 

Mine Safety Disclosures

 

100

 

 

 

 

 

Item 5.

 

Other Information

 

100

 

 

 

 

 

Item 6.

 

Exhibits

 

101

 

 

 

 

 

SIGNATURES

 

102

2

 


CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This report, and other statements that we may make, may contain forward-looking statements with respect to future financial or business performance, strategies or expectations, anticipated share repurchases or lack thereof, our plans and expectations about future investments and the future liquidity of the company. Forward-looking statements are typically identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “potential,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made, and we assume no duty to and do not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously identified elsewhere in this filing, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance:

 

the introduction, withdrawal, success and timing of business initiatives and strategies;

 

changes in political, economic or industry conditions, the interest rate environment or financial and capital markets, which could result in changes in the value of our assets;

 

the relative and absolute investment performance and operations of our investment adviser;

 

the impact of increased competition;

 

the impact of future acquisitions and divestitures;

 

the unfavorable resolution of legal proceedings;

 

our business prospects and the prospects of our portfolio companies;

 

the impact, extent and timing of technological changes and the adequacy of intellectual property protection;

 

the impact of legislative and regulatory actions and reforms and regulatory, supervisory or enforcement actions of government agencies relating to us or THL Credit Advisors LLC, the Advisor;

 

the ability of the Advisor to identify suitable investments for us and to monitor and administer our investments;

 

our contractual arrangements and relationships with third parties;

 

any future financings by us;

 

the ability of the Advisor to attract and retain highly talented professionals;

 

fluctuations in foreign currency exchange rates;

 

the impact of changes to tax legislation and, generally, our tax position;

 

our ability to exit a control investment in a timely manner; and

 

the ability to fund Logan JV’s unfunded commitments to the extent approved by each member of the Logan JV investment committee.

 

3


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

(in thousands, except per share data)

(unaudited)

 

 

March 31, 2019

 

 

December 31, 2018

 

Assets:

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

Non-controlled, non-affiliated  investments (cost of $342,246 and $333,023,

   respectively)

$

311,919

 

 

$

313,377

 

Controlled investments (cost of $180,339 and $181,325, respectively)

 

172,659

 

 

 

167,733

 

Non-controlled, affiliated investments  (cost of $25,292 and $25,292, respectively)

 

12,986

 

 

 

12,543

 

Cash

 

2,510

 

 

 

6,860

 

Escrow receivable

 

7,965

 

 

 

7,306

 

Interest, dividends, and fees receivable

 

6,030

 

 

 

5,480

 

Deferred tax assets

 

2,046

 

 

 

2,056

 

Deferred financing costs

 

2,005

 

 

 

2,314

 

Due from affiliate

 

981

 

 

 

377

 

Prepaid expenses and other assets

 

503

 

 

 

198

 

Distributions receivable

 

311

 

 

 

207

 

Total assets

$

519,915

 

 

$

518,451

 

Liabilities:

 

 

 

 

 

 

 

Loans payable (Note 7)

$

117,224

 

 

$

107,657

 

Notes payable ($111,607 and $111,607 face amounts, respectively, reported net of

   deferred financing costs of $3,342 and $3,541, respectively)

 

108,265

 

 

 

108,067

 

Base management fees payable

 

1,910

 

 

 

2,112

 

Deferred tax liability

 

1,855

 

 

 

1,972

 

Accrued expenses and other payables

 

1,710

 

 

 

1,633

 

Accrued incentive fees

 

677

 

 

 

677

 

Accrued interest and fees

 

481

 

 

 

633

 

Other deferred liabilities

 

9

 

 

 

19

 

Total liabilities

 

232,131

 

 

 

222,770

 

Commitments and contingencies (Note 8)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets:

 

 

 

 

 

 

 

Common stock, par value $.001 per share, 100,000 common shares authorized, 32,119

   and 32,318 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively

 

32

 

 

 

32

 

Paid-in capital in excess of par

 

430,038

 

 

 

431,361

 

Accumulated deficit

 

(142,286

)

 

 

(135,712

)

Total net assets

$

287,784

 

 

$

295,681

 

Total liabilities and net assets

$

519,915

 

 

$

518,451

 

Net asset value per share attributable to THL Credit, Inc.

$

8.96

 

 

$

9.15

 

 

See accompanying notes to these consolidated financial statements.

4


 

THL Credit, Inc. and Subsidiaries

Consolidated Statements of Operations

(in thousands, except per share data)

(unaudited)

 

 

 

For the three months ended

March 31,

 

 

 

2019

 

 

2018

 

Investment Income:

 

 

 

 

 

 

 

 

From non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

Interest income

 

$

8,413

 

 

$

12,206

 

Other income

 

 

454

 

 

 

119

 

From non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

Interest income

 

 

34

 

 

 

 

Other income

 

 

197

 

 

 

255

 

From controlled investments:

 

 

 

 

 

 

 

 

Interest income

 

 

1,349

 

 

 

1,404

 

Dividend income

 

 

3,706

 

 

 

2,613

 

Other income

 

 

38

 

 

 

91

 

Total investment income

 

 

14,191

 

 

 

16,688

 

Expenses:

 

 

 

 

 

 

 

 

Interest and fees on borrowings

 

 

3,398

 

 

 

3,566

 

Base management fees

 

 

1,910

 

 

 

2,319

 

Administrator expenses

 

 

449

 

 

 

591

 

Other general and administrative expenses

 

 

373

 

 

 

422

 

Amortization of deferred financing costs

 

 

695

 

 

 

308

 

Professional fees

 

 

397

 

 

 

337

 

Directors' fees

 

 

188

 

 

 

194

 

Total expenses

 

 

7,410

 

 

 

7,737

 

Income tax provision, excise and other taxes

 

 

77

 

 

 

124

 

Net investment income

 

 

6,704

 

 

 

8,827

 

Realized Gain (Loss) and Change in Unrealized Appreciation (Depreciation) on Investments:

 

 

 

 

 

 

 

 

Net realized (loss) gain on investments:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(2,417

)

 

 

(13,212

)

Controlled investments

 

 

442

 

 

 

96

 

Foreign currency transactions

 

 

3

 

 

 

(1

)

Net realized loss on investments

 

 

(1,972

)

 

 

(13,117

)

Net change in unrealized (depreciation) appreciation on investments:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(10,681

)

 

 

10,571

 

Non-controlled, affiliated investments

 

 

443

 

 

 

 

Controlled investments

 

 

5,911

 

 

 

(321

)

Translation of assets and liabilities in foreign currencies

 

 

(318

)

 

 

660

 

Net change in unrealized (depreciation) appreciation on investments

 

 

(4,645

)

 

 

10,910

 

Net change in unrealized depreciation attributable to non-controlling interests

 

 

 

 

 

(247

)

Net realized and unrealized loss from investments

 

 

(6,617

)

 

 

(2,454

)

Benefit (provision) for taxes on unrealized gain/loss on investments

 

 

107

 

 

 

(32

)

Net increase in net assets resulting from operations

 

$

194

 

 

$

6,341

 

Net investment income per common share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.21

 

 

$

0.27

 

Net increase in net assets resulting from operations per common share:

 

 

 

 

 

 

 

 

Basic and diluted

 

$

0.01

 

 

$

0.19

 

Weighted average shares of common stock outstanding:

 

 

 

 

 

 

 

 

Basic and diluted

 

 

32,289

 

 

 

32,674

 

 

See accompanying notes to these consolidated financial statements.

 

5


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Changes in Net Assets

(in thousands)

(unaudited)

 

 

 

For the three months ended March 31,

 

 

 

2019

 

 

2018

 

Increase in net assets from operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

6,704

 

 

$

8,827

 

Net realized (loss) on investments

 

 

(1,972

)

 

 

(13,117

)

Net change in unrealized (depreciation) appreciation on investments

 

 

(4,645

)

 

 

10,910

 

Net change in unrealized (depreciation) attributable to

   non-controlling interests

 

 

 

 

 

(247

)

Benefit (provision) for taxes on unrealized (loss) gain on investments

 

 

107

 

 

 

(32

)

Net increase in net assets resulting from operations

 

 

194

 

 

 

6,341

 

Distributions to stockholders:

 

 

 

 

 

 

 

 

Distributions to stockholders from net investment income

 

 

(6,768

)

 

 

(8,822

)

Total distributions to stockholders

 

 

(6,768

)

 

 

(8,822

)

Capital share transactions:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(1,323

)

 

 

 

Net decrease in net assets from capital share transactions

 

 

(1,323

)

 

 

 

Total decrease in net assets

 

 

(7,897

)

 

 

(2,481

)

Net assets at beginning of period

 

 

295,681

 

 

 

344,029

 

Net assets at end of period

 

$

287,784

 

 

$

341,548

 

Common shares outstanding at end of period

 

 

32,119

 

 

 

32,674

 

Capital share activity:

 

 

 

 

 

 

 

 

Shares repurchased

 

 

198

 

 

 

 

 

See accompanying notes to these consolidated financial statements.

6


THL Credit, Inc. and Subsidiaries

Consolidated Statements of Cash Flows

(in thousands)

(unaudited)

 

 

 

For the three months ended

March 31,

 

 

 

2019

 

 

2018

 

Cash flows from operating activities:

 

 

 

 

 

 

 

 

Net increase in net assets resulting from operations

 

$

194

 

 

$

6,341

 

Adjustments to reconcile net increase in net assets resulting from operations to net cash (used in) provided by operating activities:

 

 

 

 

 

 

 

 

Net change in unrealized depreciation (appreciation) on investments

 

 

4,645

 

 

 

(10,662

)

Net realized loss on investments

 

 

1,466

 

 

 

13,235

 

Net realized (gain) loss on foreign exchange currency transactions

 

 

(3

)

 

 

1

 

Increase in investments due to interest paid-in-kind

 

 

(675

)

 

 

(211

)

Amortization of deferred financing costs

 

 

695

 

 

 

308

 

Accretion of discounts on investments and other fees

 

 

(249

)

 

 

(674

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Purchases of investments

 

 

(34,280

)

 

 

(11,992

)

Proceeds from sale and paydown of investments

 

 

25,525

 

 

 

10,411

 

(Increase) decrease in interest, dividends and fees receivable

 

 

(550

)

 

 

1,262

 

(Increase) decrease in due from affiliates

 

 

(604

)

 

 

61

 

Increase in prepaid expenses and other assets

 

 

(836

)

 

 

(18

)

Decrease in deferred tax asset

 

 

10

 

 

 

541

 

Decrease in accrued expenses and other payables

 

 

(57

)

 

 

(1,214

)

Decrease in accrued credit facility fees and interest

 

 

(152

)

 

 

(187

)

Decrease in deferred tax liability

 

 

(117

)

 

 

(527

)

Decrease in base management fees payable

 

 

(202

)

 

 

(237

)

Decrease in other deferred liabilities

 

 

(10

)

 

 

(48

)

Net cash (used in) provided by operating activities

 

 

(5,200

)

 

 

6,390

 

Cash flows from financing activities:

 

 

 

 

 

 

 

 

Repurchase of common stock

 

 

(1,323

)

 

 

 

Borrowings under credit facility

 

 

18,000

 

 

 

13,500

 

Repayments under credit facility

 

 

(8,750

)

 

 

(11,400

)

Distributions paid to stockholders

 

 

(6,768

)

 

 

(8,822

)

Financing costs paid

 

 

(309

)

 

 

(35

)

Net cash provided by (used in) financing activities

 

 

850

 

 

 

(6,757

)

Net decrease in cash

 

 

(4,350

)

 

 

(367

)

Cash, beginning of period

 

 

6,860

 

 

 

3,617

 

Cash, end of period

 

$

2,510

 

 

$

3,250

 

Supplemental Disclosure of Cash Flow Information:

 

 

 

 

 

 

 

 

Cash interest paid

 

$

3,229

 

 

$

3,486

 

PIK income earned

 

$

697

 

 

$

209

 

 

Non-cash Operating Activities:

See Note 5 in the notes to consolidated financial statements for non-cash restructurings.

See accompanying notes to these consolidated financial statements.

 

 

7


THL Credit, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2019

(dollar amounts in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Initial

 

Maturity/

 

Principal(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition

 

Dissolution

 

No. of Shares /

 

 

 

 

 

 

 

 

 

Type of Investment/Portfolio company (1)(2)(3)

 

Industry

 

Interest Rate(4)

 

 

Date

 

Date

 

No. of Units

 

 

Amortized Cost

 

 

Fair Value (6)

 

Non-controlled/non-affiliated investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—108.39% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First lien senior secured debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—95.34% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Canada

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—5.18% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairstone Financial Inc. (7)(22)

 

Financial services

 

9.0% (CDOR + 7.0%)

 

 

3/31/2017

 

3/31/2023

 

$

14,971

 

 

$

15,001

 

 

$

14,896

 

 

 

 

 

 

 

 

 

 

 

Subtotal Canada

 

$

14,971

 

 

$

15,001

 

 

$

14,896

 

Midwest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—7.06% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1-800 Hansons, LLC

 

Consumer products and services

 

10.1% (LIBOR + 7.5%) (9.1% Cash  + 1.0% PIK)

 

 

10/19/2017

 

10/19/2022

 

$

3,755

 

 

$

3,706

 

 

$

3,531

 

1-800 Hansons, LLC (9)

 

Consumer products and services

 

10.1% (LIBOR + 7.5%) (9.1% Cash  + 1.0% PIK)

 

 

10/19/2017

 

10/19/2022

 

 

116

 

 

 

112

 

 

 

109

 

IRC Opco LLC

 

Healthcare

 

8.0% (LIBOR+ 5.5%)

 

 

1/4/2019

 

1/4/2024

 

 

5,441

 

 

 

5,391

 

 

 

5,386

 

IRC Opco LLC (9) (10)

 

Healthcare

 

8.0% (LIBOR+ 5.5%)

 

 

1/4/2019

 

1/4/2024

 

 

 

 

 

(8

)

 

 

 

Matilda Jane Holdings, Inc.

 

Consumer products and services

 

11.0% (LIBOR + 8.5%)

 

 

4/28/2017

 

4/28/2022

 

 

11,408

 

 

 

11,248

 

 

 

11,294

 

 

 

 

 

 

 

 

 

 

 

Subtotal midwest

 

$

20,720

 

 

$

20,449

 

 

$

20,320

 

Northeast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—16.21% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anexinet Corp.

 

IT services

 

9.0% (LIBOR + 6.5%)

 

 

7/28/2017

 

7/28/2022

 

 

16,304

 

 

 

16,085

 

 

 

15,896

 

Certify, Inc.

 

IT services

 

8.5% (LIBOR + 6%)

 

 

2/28/2019

 

2/28/2024

 

 

1,544

 

 

 

1,521

 

 

 

1,521

 

Certify, Inc. (9) (10)

 

IT services

 

8.5% (LIBOR + 6%)

 

 

2/28/2019

 

2/28/2024

 

 

 

 

 

(2

)

 

 

 

Certify, Inc. (9) (10)

 

IT services

 

8.5% (LIBOR + 6%)

 

 

2/28/2019

 

2/28/2024

 

 

 

 

 

(1

)

 

 

 

HealthDrive Corporation

 

Healthcare

 

8.3% (LIBOR + 5.8%)

 

 

12/21/2018

 

12/21/2023

 

 

9,975

 

 

 

9,881

 

 

 

9,875

 

HealthDrive Corporation (9) (10)

 

Healthcare

 

8.3% (LIBOR + 5.8%)

 

 

12/21/2018

 

12/21/2023

 

 

704

 

 

 

688

 

 

 

704

 

smarTours, LLC

 

Consumer products and services

 

9.4% (LIBOR + 6.8%)

 

 

10/31/2017

 

10/31/2022

 

 

5,794

 

 

 

5,710

 

 

 

5,794

 

smarTours, LLC (9)(10)

 

Consumer products and services

 

9.4% (LIBOR + 6.8%)

 

 

10/31/2017

 

10/31/2022

 

 

 

 

 

(11

)

 

 

 

Urology Management Associates, LLC

 

Healthcare

 

7.5% (LIBOR+ 5.0%)

 

 

8/31/2018

 

8/31/2024

 

 

5,059

 

 

 

4,979

 

 

 

4,972

 

Women's Health USA, Inc.

 

Healthcare

 

8.2% (LIBOR + 5.8%)

 

 

10/9/2018

 

10/9/2023

 

 

7,921

 

 

 

7,900

 

 

 

7,881

 

Women's Health USA, Inc.(9) (10)

 

Healthcare

 

8.2% (LIBOR + 5.8%)

 

 

10/9/2018

 

10/9/2023

 

 

 

 

 

(17

)

 

 

 

Women's Health USA, Inc. (9)

 

Healthcare

 

8.2% (LIBOR + 5.8%)

 

 

10/9/2018

 

10/9/2023

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Subtotal northeast

 

$

47,301

 

 

$

46,733

 

 

$

46,643

 

Southeast

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—9.16% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

See accompanying notes to these consolidated financial statements.

 

8


THL Credit, Inc. and Subsidiaries

Consolidated Schedules of Investments

March 31, 2019

(dollar amounts in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

Initial

 

Maturity/

 

Principal(5)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acquisition

 

Dissolution

 

No. of Shares /

 

 

 

 

 

 

 

 

 

Type of Investment/Portfolio company (1)(2)(3)

 

Industry

 

Interest Rate(4)

 

 

Date

 

Date

 

No. of Units

 

 

Amortized Cost

 

 

Fair Value (6)

 

Virtus Pharmaceuticals, LLC

 

Healthcare

 

12.2% (8)

 

 

7/17/2014

 

7/17/2019

 

$

24,013

 

 

$

23,972

 

 

$

23,893

 

Whitney, Bradley & Brown, Inc.

 

Business services

 

11.5% (LIBOR + 9.0%)

 

 

10/18/2017

 

10/18/2022

 

 

2,444

 

 

 

2,409

 

 

 

2,468

 

 

 

 

 

 

 

 

 

 

 

Subtotal southeast

 

$

26,457

 

 

$

26,381

 

 

$

26,361

 

Southwest

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—35.10% of net asset value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allied Wireline Services, LLC

 

Energy / utilities

 

12.0% (LIBOR + 9.5%)

 

 

2/28/2014

 

6/30/2020

 

$

9,768

 

 

$

9,768

 

 

$

9,621

 

Hart InterCivic, Inc.

 

IT services

 

13.3% (LIBOR + 10.5%)

 

 

3/31/2016

 

6/28/2019

 

 

24,717

 

 

 

24,717

 

 

 

24,717

 

Holland Intermediate Acquisition Corp.

 

Energy / utilities

 

11.6% (LIBOR + 9.0%)

 

 

5/29/2013

 

5/29/2020

 

 

21,323

 

 

 

21,323

 

 

 

19,191

 

Holland Intermediate Acquisition Corp. (9)

 

Energy / utilities

 

11.6% (LIBOR + 9.0%)

 

 

5/29/2013

 

5/29/2020

 

 

 

 

 

 

 

 

 

Igloo Products Corp.

 

Consumer products and services

 

13.1% (LIBOR+ 10.3%)

 

 

3/28/2014

 

3/28/2020

 

 

24,636

 

 

 

24,532

 

 

 

23,651

 

LAI International, Inc. (20)

 

Industrials and manufacturing

 

10.2% (LIBOR + 7.7%)

 

 

10/22/2014

 

10/22/2019

 

 

22,193

 

 

 

21,464

 

 

 

6,864

 

LAI International, Inc. (20)

 

Industrials and manufacturing

 

10.2% (LIBOR + 7.7%)

 

 

10/22/2014

 

10/22/2019

 

 

4,553

 

 

 

4,396

 

 

 

1,408

 

LAI International, Inc. (20)

 

Industrials and manufacturing

 

10.2% (LIBOR + 7.7%)

 

 

4/24/2017

 

10/22/2019

 

 

4,052

 

 

 

3,900

 

 

 

1,253

 

LAI International, Inc.

 

Industrials and manufacturing

 

10.2% (LIBOR + 10.0% PIK)

 

 

2/15/2019

 

4/30/2021

 

 

10,124