10-Q 1 tm2029591d1_10q.htm FORM 10-Q

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

Form 10-Q

 

(Mark One)

 

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

 

For the quarterly period ended September 30, 2020

 

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: 814-00967

 

WHITEHORSE FINANCE, INC.

(Exact Name of Registrant as Specified in its Charter)

 

Delaware 45-4247759
(State or Other Jurisdiction of (I.R.S. Employer
Incorporation or Organization) Identification No.)
   
1450 Brickell Avenue, 31st Floor  
Miami, Florida 33131
(Address of Principal Executive Offices) (Zip Code)

 

(305) 381-6999

(Registrant’s Telephone Number, Including Area Code)

 

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

 

Title of Each Class Trading Symbol(s) Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share WHF The Nasdaq Stock Market LLC
    (Nasdaq Global Select Market)
6.50% Notes due 2025 WHFBZ The Nasdaq Stock Market LLC
    (Nasdaq Global Select Market)

 

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

 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ¨ 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 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 x
       
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 x

 

As of November 6, 2020 the Registrant had 20,546,032 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

 

WHITEHORSE FINANCE, INC.

 

TABLE OF CONTENTS

 

    Page  
Part I. Financial Information 3  
Item 1. Financial Statements 3  
  Consolidated Statements of Assets and Liabilities as of September 30, 2020 (Unaudited) and December 31, 2019 3  
  Consolidated Statements of Operations for the three and nine months ended September 30, 2020 (Unaudited) and 2019 (Unaudited) 4  
  Consolidated Statements of Changes in Net Assets for the three and nine months ended September 30, 2020 (Unaudited) and 2019 (Unaudited) 5  
  Consolidated Statements of Cash Flows for the nine months ended September 30, 2020 (Unaudited) and 2019 (Unaudited) 7  
  Consolidated Schedules of Investments as of September 30, 2020 (Unaudited) and December 31, 2019 8  
  Notes to the Consolidated Financial Statements (Unaudited) 18  
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 45  
Item 3. Quantitative and Qualitative Disclosures about Market Risk 60  
Item 4. Controls and Procedures 60  
Part II. Other Information 61  
Item 1. Legal Proceedings 61  
Item 1A. Risk Factors 61  
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 64  
Item 3. Defaults Upon Senior Securities 64  
Item 4. Mine Safety Disclosures 64  
Item 5. Other Information 64  
Item 6. Exhibits 64  

 

2

 

 

Part I. Financial Information

 

Item 1. Financial Statements

 

WhiteHorse Finance, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands, except share and per share data)

 

   September 30,   December 31, 
   2020   2019 
   (Unaudited)     
Assets          
Investments, at fair value          
Non-controlled/non-affiliate company investments  $535,387   $546,744 
Non-controlled affiliate company investments   9,520    9,651 
Controlled affiliate company investments   50,388    33,293 
Total investments, at fair value (amortized cost $598,477 and $597,725, respectively)   595,295    589,688 
Cash and cash equivalents   8,863    4,294 
Restricted cash and cash equivalents   13,830    23,252 
Restricted foreign currency (cost of $233)   231     
Interest and dividend receivable   6,145    6,010 
Amounts receivable on unsettled investment transactions   815    360 
Prepaid expenses and other receivables   627    7,620 
Total assets  $625,806   $631,224 
           
Liabilities          
Debt  $291,924   $298,924 
Distributions payable   7,294    7,294 
Management fees payable   3,069    3,060 
Incentive fees payable   7,029    5,230 
Interest payable   853    1,674 
Accounts payable and accrued expenses   1,035    1,944 
Advances received from unfunded credit facilities   39    143 
Total liabilities   311,243    318,269 
           
Commitments and contingencies (See Note 8)          
           
Net assets          
Common stock, 20,546,032 and 20,546,032 shares issued and outstanding, par value $0.001 per share, respectively, and 100,000,000 authorized     21       21  
Paid-in capital in excess of par   300,744    300,744 
Accumulated earnings    13,798    12,190 
Total net assets   314,563    312,955 
Total liabilities and total net assets  $625,806   $631,224 
           
Number of shares outstanding   20,546,032    20,546,032 
Net asset value per share  $15.31   $15.23 

 

See notes to the consolidated financial statements

 

3

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Operations (Unaudited)

(in thousands, except share and per share data)

 

   Three months ended
September 30,
   Nine months ended
September 30,
 
   2020   2019   2020   2019 
Investment income                    
From non-controlled/non-affiliate company investments                    
Interest income  $14,222   $14,865   $39,506   $42,104 
Fee income   741    2,246    1,571    6,328 
Dividend income   21    -    101    - 
From non-controlled affiliate company investments                    
Dividend income   263    301    800    888 
From controlled affiliate company investments                    
Interest income   682    343    1,913    343 
Dividend income   568    -    961    - 
Total investment income   16,497    17,755    44,852    49,663 
                     
Expenses                    
Interest expense   2,770    3,495    9,661    9,744 
Base management fees   3,069    2,834    9,110    8,240 
Performance-based incentive fees   3,819    1,714    5,571    5,520 
Administrative service fees   171    159    512    475 
General and administrative expenses   601    660    2,212    1,875 
Total expenses, before fees waived   10,430    8,862    27,066    25,854 
Base management fee waived   -    -    -    (397)
Total expenses, net of fees waived   10,430    8,862    27,066    25,457 
Net investment income before excise tax   6,067    8,893    17,786    24,206 
Excise tax   137    238    513    712 
Net investment income after excise tax   5,930    8,655    17,273    23,494 
                     
Realized and unrealized gains (losses) on investments and foreign currency transactions                    
Net realized gains (losses)                    
Non-controlled/non-affiliate company investments   635    (2)   1,069    (2,020)
Foreign currency transactions   (1)   -    66    - 
Foreign currency forward contracts   (25)   -    (25)   - 
Net realized gains (losses)   609    (2)   1,110    (2,020)
Net change in unrealized appreciation (depreciation)                    
Non-controlled/non-affiliate company investments   12,659    (1,882)   6,303    1,042 
Non-controlled affiliate company investments   999    28    (131)   (492)
Controlled affiliate company investments   1,526    56    (1,316)   56 
Translation of assets and liabilities in foreign currencies   (92)   -    251    - 
Foreign currency forward contracts   3    -    -    - 
Net change in unrealized appreciation (depreciation)   15,095    (1,798)   5,107    606 
Net realized and unrealized gains (losses) on investments   15,704    (1,800)   6,217    (1,414)
Net increase in net assets resulting from operations  $21,634   $6,855   $23,490   $22,080 
                     
Per Common Share Data                    
Basic and diluted earnings per common share  $1.06   $0.34   $1.15   $1.08 
Dividends and distributions declared per common share  $0.36   $0.36   $1.07   $1.07 
Basic and diluted weighted average common shares outstanding     20,546,032        20,546,032     20,546,032       20,546,032  

 

See notes to the consolidated financial statements

 

4

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Changes in Net Assets (Unaudited)

(in thousands, except share and per share data)

 

           Paid-in   Accumulated     
           Capital in   Undistributed     
   Common Stock   Excess of   (Overdistributed)   Total Net 
   Shares   Par amount   Par   Earnings   Assets 
Balance at June 30, 2019   20,546,032   $21   $301,557   $14,354   $315,932 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    8,655    8,655 
Net realized gains (losses) on investments   -    -    -    (2)   (2)
Net change in unrealized appreciation
(depreciation) on investments
   -    -    -    (1,798)   (1,798)
Distributions declared   -    -    -    (7,293)   (7,293)
Balance at September 30, 2019   20,546,032   $21   $301,557   $13,916   $315,494 
                          
Balance at June 30, 2020   20,546,032   $21   $300,744   $(543)  $300,222 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    5,930    5,930 
Net realized gains (losses) on investments   -    -    -    609    609 
Net change in unrealized appreciation (depreciation) on investments   -    -    -    15,095    15,095 
Distributions declared   -    -    -    (7,293)   (7,293)
Balance at September 30, 2020   20,546,032   $21   $300,744   $13,798   $314,563 

 

See notes to the consolidated financial statements

5

 

 

WhiteHorse Finance, Inc.

Consolidated Statements of Changes in Net Assets (Unaudited)

(in thousands, except share and per share data)

 

           Paid-in   Accumulated     
           Capital in   Undistributed     
   Common Stock   Excess of   (Overdistributed)   Total Net 
   Shares   Par amount   Par   Earnings   Assets 
Balance at December 31, 2018   20,546,032   $21   $301,557   $13,718   $315,296 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    23,494    23,494 
Net realized gains (losses) on investments   -    -    -    (2,020)   (2,020)
Net change in unrealized appreciation (depreciation) on investments   -    -    -    606    606 
Distributions declared   -    -    -    (21,882)   (21,882)
Balance at September 30, 2019   20,546,032   $21   $301,557   $13,916   $315,494 
                          
Balance at December 31, 2019   20,546,032   $21   $300,744   $12,190   $312,955 
Net increase in net assets resulting from operations:                         
Net investment income after excise tax   -    -    -    17,273    17,273 
Net realized gains (losses) on investments   -    -    -    1,110    1,110 
Net change in unrealized appreciation (depreciation) on investments   -    -    -    5,107    5,107 
Distributions declared   -    -    -    (21,882)   (21,882)
Balance at September 30, 2020   20,546,032   $21   $300,744   $13,798    314,563 

 

See notes to the consolidated financial statements

6

 

WhiteHorse Finance, Inc.

Consolidated Statements of Cash Flows (Unaudited)

(in thousands)

 

   Nine months ended 
   September 30, 
   2020   2019 
Cash flows from operating activities          
Net increase in net assets resulting from operations  $23,490   $22,080 
Adjustments to reconcile net increase in net assets resulting from operations to net cash provided by (used in) operating activities:          
Paid-in-kind income   (681)   (1,922)
Net realized (gains) losses on investments   (1,069)   2,020 
Net unrealized (appreciation) depreciation on investments   (4,856)   (606)
Net unrealized appreciation on translation of assets and liabilities in foreign currencies   (251)   - 
Accretion of discount   (2,169)   (3,346)
Amortization of deferred financing costs   767    746 
Acquisition of investments   (126,255)   (207,756)
Proceeds from principal payments and sales of portfolio investments   81,438    121,619 
Proceeds for sales of portfolio investments to STRS JV   47,985    32,011 
Net changes in operating assets and liabilities:          
Interest and dividend receivable   (135)   (1,344)
Prepaid expenses and other receivables   6,993    417 
Amounts receivable on unsettled investment transactions   (455)   (4,603)
Amounts payable on unsettled investment transactions   -    (445)
Management fees payable   1,808    (3,765)
Incentive fees payable   (725)   289 
Accounts payable and accrued expenses   -    95 
Interest payable   (821)   (495)
Advances received from unfunded credit facilities   (104)   49 
Net cash provided by (used in) operating activities   24,960    (44,956)
           
Cash flows from financing activities          
Borrowings   133,695    107,400 
Repayments of debt   (141,393)   (52,100)
Deferred financing costs   -    (32)
Distributions paid to common stockholders, net of distributions reinvested   (21,882)   (21,882)
Net cash provided by (used in) financing activities   (29,580)   33,386 
Effect of exchange rate changes on cash   (2)   - 
Net change in cash, cash equivalents and restricted cash   (4,622)   (11,570)
Cash, cash equivalents and restricted cash at beginning of period   27,546    33,732 
Cash, cash equivalents and restricted cash at end of period  $22,924   $22,162 
           
Supplemental disclosure of cash flow information:          
Interest paid  $9,728   $9,492 
Non-cash exchanges of investments   18,411    24,355 

 

The following table provides a reconciliation of cash, cash equivalents and restricted cash reported within the consolidated statements of assets and liabilities that sum to the total of the same amounts presented in the consolidated statements of cash flows:

 

   September 30, 
   2020   2019 
Cash and cash equivalents  $8,863   $9,827 
Restricted cash and restricted foreign currency   14,061    12,335 
           
Total cash, cash equivalents and restricted cash presented in consolidated statements of cash flows  $22,924   $22,162 

 

See notes to the consolidated financial statements

7

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited)

September 30, 2020

(in thousands)

 

Investment Type(1)  Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition
Date(10)
  Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
North America                           
Debt Investments                           
Advertising                           
Fluent, LLC                           
First Lien Secured Term Loan  L+ 7.00%  7.50%  03/26/18  03/27/23  7,609  $7,609  $7,609  2.42%
   (0.50% Floor)                        
SmartSign Holdings LLC                           
First Lien Secured Term Loan  L+ 7.50%  8.50%  08/21/20  10/11/24  7,763   7,612   7,763  2.47 
   (1.00% Floor)           15,372   15,221   15,372  4.89 
Agricultural & Farm Machinery                           
Bad Boy Mowers Acquisition, LLC                           
First Lien Secured Term Loan  L+ 5.75%  6.75%  12/19/19  12/06/25  10,307   10,037   10,152  3.23 
   (1.00% Floor)                        
Air Freight & Logistics                           
Access USA Shipping, LLC                           
First Lien Secured Term Loan  L+ 8.00%  9.00%  02/08/19  02/08/24  5,432   5,378   5,398  1.72 
   (1.50% Floor)                        
Application Software                           
Connexity, Inc.                           
First Lien Secured Term Loan  L+ 8.50%  10.00%  05/21/20  05/21/25  10,931   10,627   10,771  3.42 
   (1.50% Floor)                        
Newscycle Solutions, Inc.                           
First Lien Secured Term Loan  L+ 7.00%  8.00%  06/14/19  12/29/22  5,114   5,050   4,774  1.52 
   (1.00% Floor)                        
First Lien Secured Revolving Loan  L+ 7.00%  8.00%  06/14/19  12/29/22  301   298   281  0.09 
   (1.00% Floor)           16,346   15,975   15,826  5.03 
Automotive Retail                           
Team Car Care Holdings, LLC                           
First Lien Secured Term Loan(12)  base rate+ 7.99%  9.01%  02/26/18  02/23/23  16,330   16,154   15,953  5.07 
   (1.00% Floor)                        
BW Gas & Convenience Holdings, LLC                           
First Lien Secured Term Loan  L+ 6.25%  6.40%  11/15/19  11/18/24  8,181   7,908   8,181  2.60 
   (0.00% Floor)           24,511   24,062   24,134  7.67 
Broadcasting                           
Alpha Media, LLC                           
First Lien Secured Term Loan  P+ 7.50%  10.75%  08/14/18  02/25/22  5,075   5,010   4,849  1.54 
   (2.00% Floor)                        
Building Products                           
LHS Borrower, LLC                           
First Lien Secured Term Loan  L+ 6.75%  7.75%  09/30/20  09/30/25  19,499   19,063   19,062  6.06 
   (1.00% Floor)                        
First Lien Secured Revolving Loan(7)  L+ 6.75%  7.75%  09/30/20  09/30/25  -   -   -  - 
   (1.00% Floor)           19,499   19,063   19,062  6.06 
Cable & Satellite                           
Bulk Midco, LLC                           
First Lien Secured Term Loan(15)  L+7.19%  8.19%  06/08/18  06/08/23  15,000   14,879   14,250  4.53 
   (1.00% Floor)                        
Communications Equipment                           
Ribbon Communications Operating Company, Inc.(5)                           
First Lien Secured Term Loan  L+ 7.50%  7.65%  08/14/20  03/03/26  12,469   12,011   12,011  3.82 
   (0.00% Floor)                        
Sorenson Communications, LLC                           
First Lien Secured Term Loan  L+ 6.50%  6.72%  03/15/19  04/29/24  3,971   3,886   3,950  1.26 
   (0.00% Floor)           16,440   15,897   15,961  5.08 
Construction & Engineering                           
Atlas Intermediate Holdings LLC                           
First Lien Secured Term Loan  L+ 6.25%  7.25%  05/26/20  02/13/26  15,269   14,404   14,810  4.71 
   (1.00% Floor)                        
Data Processing & Outsourced Services                           
FPT Operating Company, LLC/                           
TLabs Operating Company, LLC                           
First Lien Secured Term Loan  L+ 8.75%  9.75%  12/23/16  06/07/24  24,441   24,200   23,431  7.45 
   (1.00% Floor)  (0.50%PIK)                     
Geo Logic Systems Ltd. (5)                           
First Lien Secured Term Loan (13)  C +6.25%  7.25%  12/19/19  12/19/24  6,752   5,062   4,903  1.56 
   (1.00% Floor)                        
First Lien Secured Revolving Loan (7)(13)  C +6.25%  7.25%  12/19/19  12/19/24  -   -   (4) - 
   (1.00% Floor)  `        31,193   29,262   28,330  9.01 
Department Stores                           
Mills Fleet Farm Group, LLC                           
First Lien Secured Term Loan  L+ 6.25%  7.25%  10/24/18  10/24/24  13,543   13,280   13,272  4.22 
   (1.00% Floor)                        
Distributors                           
Crown Brands, LLC                           
First Lien Secured Term Loan  L+ 8.00%  9.50%  01/28/19  01/25/24  5,727   5,632   4,868  1.55 
   (1.50% Floor)                        
First Lien Secured Delayed Draw Loan  L+ 8.00%  9.50%  06/10/20  01/25/24  850   850   723  0.23 
   (1.50% Floor)           6,577   6,482   5,591  1.78 
Diversified Chemicals                           
Sklar Holdings, Inc.                           
First Lien Secured Term Loan  L+ 6.00%  8.00%  11/13/19  05/13/23  8,903   8,726   8,790  2.79 
   (1.00% Floor)                        

 

See notes to the consolidated financial statements

 

8

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2020

(in thousands)

 

Diversified Support Services                           
ImageOne Industries, LLC                           
First Lien Secured Term Loan  L+ 10.00%  11.00%  01/11/18  01/11/23  6,497  $6,355  $6,444  2.05%
   (1.00% Floor)  (4.00%PIK)                     
First Lien Secured Revolving Loan(4)(7)  L+ 10.00%  11.00%  07/22/19  12/12/22  731   731   731  0.23 
   (1.00% Floor)  (4.00%PIK)                     
NNA Services, LLC                           
First Lien Secured Term Loan  L+ 7.00%  8.50%  10/16/18  10/16/23  13,442   13,249   13,308 4.23
   (1.50% Floor)           20,670   20,335   20,483 6.51  
Education Services                           
EducationDynamics, LLC                           
First Lien Secured Term Loan  L+ 7.75%  8.75%  11/26/19  11/26/24  13,936   13,697   13,936 4.43
   (1.00% Floor)                        
Food Retail                           
AG Kings Holdings, Inc.                           
First Lien Secured Term Loan(4)(8)  P+ 11.00%  14.25%  08/10/16  08/10/21  21,644   8,612   8,541  2.72 
   (0.75% Floor)  (2.00%PIK)                     
Superpriority Secured Debtor-In-Possession Term Loan(4)(18)  L+ 10.00%  11.00%  08/26/20  08/10/21  14,222   5,663   14,222  4.52 
   (1.00% Floor)           35,866   14,275   22,763  7.24 
Health Care Facilities                           
Grupo HIMA San Pablo, Inc.                           
First Lien Secured Term Loan A  L+ 9.00%  9.25%  05/15/19  04/30/19  3,855   3,855   2,621  0.83 
                            
First Lien Secured Term Loan B  L+ 9.00%  10.50%  02/01/13  04/30/19  13,511   13,511   9,188  2.92 
   (1.50% Floor)                        
Second Lien Secured Term Loan(8)  N/A  15.75%  02/01/13  07/31/18  1,028   1,024   -  - 
      (2.00%PIK)        18,394   18,390   11,809  3.75 
Health Care Services                           
CHS Therapy, LLC                           
First Lien Secured Term Loan A  L+ 7.75%  9.25%  06/14/19  06/14/24  7,470   7,365   7,470  2.37 
   (1.50% Floor)                        
Lab Logistics, LLC                           
First Lien Secured Term Loan  L+ 6.50%  7.50%  10/16/19  09/25/23  106   105   106  0.03 
   (1.00% Floor)                        
First Lien Secured Delayed Draw Loan  L+ 6.50%  7.73%  10/16/19  09/25/23  5,249   5,219   5,249  1.67 
   (1.00% Floor)           12,825   12,689   12,825  4.07 
Home Furnishings                           
Sure Fit Home Products, LLC                           
First Lien Secured Term Loan(8)  L+ 9.75%  10.75%  10/26/18  07/13/22  5,228   5,111   3,778  1.20 
   (1.00% Floor)                        
Interactive Media & Services                           
What If Media Group, LLC                           
First Lien Secured Term Loan  L+ 6.50%  7.50%  10/02/19  10/02/24  12,675   12,472   12,675  4.03 
   (1.00% Floor)                        
Internet & Direct Marketing Retail                           
BBQ Buyer, LLC                           
First Lien Secured Term Loan  L+ 8.00%  9.50%  08/28/20  08/28/25  10,696   10,434   10,432  3.32 
   (1.50% Floor)                        
First Lien Secured Revolving Loan (7)  L+ 8.00%  9.50%  08/28/20  02/28/21  -   -   -  - 
   (1.50% Floor)                        
Potpourri Group, Inc.                           
First Lien Secured Term Loan  L+ 8.25%  9.75%  07/03/19  07/03/24  18,034   17,732   17,855  5.68 
   (1.50% Floor)           28,730   28,166   28,287  9.00 
Investment Banking & Brokerage                           
Arcole Acquisition Corp(5)                           
First Lien Secured Term Loan A(4)(8)(19)  L+ 10.25%  11.25%  11/29/18  11/30/23  5,231   5,159   4,708  1.50 
   (1.00% Floor)                        
First Lien Secured Term Loan B(4)(8)(19)  L+ 16.50%  17.50%  11/29/18  11/30/23  1,826   1,785   1,643  0.52 
   (1.00% Floor)  (1.50%PIK)                     
Subordinated Unsecured Term Loan(4)  L+ 9.00%  10.00%  07/31/20  10/31/20  291   291   291  0.09 
   (1.00% Floor)                        
JVMC Holdings Corp. (f/k/a RJO Holdings Corp)                           
First Lien Secured Term Loan  L+ 6.50%  7.50%  02/28/19  02/28/24  13,815   13,721   13,815  4.39 
   (1.00% Floor)           21,163   20,956   20,457  6.50 
IT Consulting & Other Services                           
AST-Applications Software Technology LLC                           
First Lien Secured Term Loan  L+ 8.00%  9.00%  01/10/17  01/10/23  4,034   3,999   4,034  1.28 
   (1.00% Floor)  (1.00%PIK)                     
Leisure Facilities                           
Honors Holdings, LLC                           
First Lien Secured Term Loan (16)  L+ 7.97%  8.97%  09/06/19  09/06/24  9,414   9,265   8,284  2.63 
   (1.00% Floor)  (0.50%PIK)                     
First Lien Secured Delayed Draw Loan(16)  L+ 7.61%  8.61%  09/06/19  09/06/24  4,638   4,591   4,081  1.30 
   (1.00% Floor)  (0.50%PIK)                     
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.)     `                     
First Lien Secured Term Loan A  L+ 3.25%  4.25%  06/29/20  06/29/25  5,659   5,576   5,571  1.77 
   (1.00% Floor)                        
First Lien Secured Term Loan B  N/A  9.50%  06/29/20  06/29/25  1,136   1,109   1,107  0.35 
      (9.50%PIK)                     
First Lien Secured Term Loan C (9)  N/A  9.50%  06/29/20  N/A  1,268   1,265   1,265  0.40 
      (9.50%PIK)        22,115   21,806   20,308  6.45 
Office Services & Supplies                           
Empire Office, Inc.                           
First Lien Secured Term Loan  L+ 6.75%  8.25%  04/12/19  04/12/24  10,895   10,741   10,644  3.38 
   (1.50% Floor)                        
Packaged Foods & Meats                           
Lenny & Larry's, LLC                           
First Lien Secured Term Loan(17)  L+ 7.94%  8.94%  05/15/18  05/15/23  11,271   11,155   10,779  3.43 
   (1.00% Floor)  (1.17%PIK)                     
Property & Casualty Insurance                           
Policy Services Company, LLC (5)                           
First Lien Secured Term Loan  L+ 6.00%  7.00%  03/06/20  05/31/24  6,256   5,983   6,131  1.95 
   (1.00% Floor)                        

 

See notes to the consolidated financial statements

 

9

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2020

(in thousands)

 

Research & Consulting Services                           
Nelson Worldwide, LLC                           
First Lien Secured Term Loan  L+ 9.25%  10.25%  01/09/18  01/09/23  12,708  $12,563  $12,453  3.96%
   (1.00% Floor)                        
ALM Media, LLC                           
First Lien Secured Term Loan  L+ 6.50%  7.50%  11/25/19  11/25/24  15,159   14,908   14,401  4.58 
   (1.00% Floor)           27,867   27,471   26,854  8.54 
Restaurants                           
LS GFG Holdings Inc.                           
First Lien Secured Term Loan  P+ 5.00%  8.25%  11/30/18  11/19/25  10,159   9,934   8,534  2.71 
                           
Specialized Consumer Services                           
True Blue Car Wash, LLC                           
First Lien Secured Term Loan  L+ 7.12%  8.12%  10/17/19  10/17/24  4,377   4,306   4,377  1.39 
   (1.00% Floor)                        
First Lien Secured Delayed Draw Loan  L+ 7.12%  8.12%  10/17/19  10/17/24  2,018   2,000   2,018  0.64 
   (1.00% Floor)           6,395   6,306   6,395  2.03 
Specialized Finance                           
Golden Pear Funding Assetco, LLC(5)                           
Second Lien Secured Term Loan  L+ 10.50%  11.50%  09/20/18  03/20/24  17,500   17,279   17,500  5.56 
   (1.00% Floor)                        
Oasis Legal Finance, LLC(5)                           
Second Lien Secured Term Loan  L+ 10.75%  11.75%  09/09/16  03/09/22  12,500   12,435   12,500  3.97 
   (1.00% Floor)                        
WHF STRS Ohio Senior Loan Fund LLC                           
Subordinated Note(4)(5)(7)(9)(14)  L+ 6.50%  6.66%  07/19/19  N/A  41,073   41,073   41,073  13.06 
               71,073   70,787   71,073  22.59 
Specialty Chemicals                           
Flexitallic Group SAS                           
First Lien Secured Term Loan  L+ 6.50%  7.50%  10/28/19  10/29/26  11,662   11,407   10,846  3.45 
   (1.00% Floor)                        
Systems Software                           
Vero Parent, Inc.                           
First Lien Secured Term Loan  L+ 6.00%  7.00%  11/06/19  08/16/24  16,428   15,061   16,267  5.17 
   (1.00% Floor)                        
Technology Hardware, Storage & Peripherals                           
Source Code Midco, LLC                           
First Lien Secured Term Loan  L+ 8.25%  9.25%  05/04/18  05/04/23  22,634   22,295   22,633  7.19 
   (1.00% Floor)                        
Trading Companies & Distributors                           
Vessco Holdings, LLC                           
First Lien Secured Term Loan  L+ 7.25%  8.75%  08/22/19  08/22/24  8,835   8,696   8,922  2.84 
   (1.50% Floor)                        
                            
Total Debt Investments              602,578   569,408   566,230  180.00 
                            
Equity Investments                           
Diversified Support Services                           
Quest Events, LLC Preferred Units(4)  N/A  N/A  12/28/18  12/08/25  317   317   -  - 
ImageOne Industries, LLC Common A Units(4)  N/A  N/A  09/20/19  N/A  225   -   169  0.05 
Health Care Services                           
Lab Logistics Preferred Units (4)  N/A  N/A  10/29/19  N/A  2   857   857  0.27 
Internet & Direct Marketing Retail                           
BBQ Buyer, LLC Shares(4)  N/A  N/A  08/28/20  N/A  1,100   1,100   1,199  0.38 
Leisure Facilities                           
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Class A Common Stock (4)  N/A  N/A  06/29/20  N/A  2   1,955   282  0.09 
Lift Brands, Inc. (aka Snap Fitness Holdings, Inc.) Warrants(4)  N/A  N/A  06/29/20  06/28/28  1   793   114  0.04 
               3   2,748   396  0.13 
Other Diversified Financial Services                           
RCS Creditor Trust Class B Units(4)(6)  N/A  N/A  10/01/17  N/A  143   -   -  - 
SFS Global Holding Company Warrants(4)  N/A  N/A  06/28/18  12/28/25  -   -   -  - 
Sigue Corporation Warrants(4)  N/A  N/A  06/28/18  12/28/25  22   2,890   3,490  1.11 
               165   2,890   3,490  1.11 
Specialized Finance                           
NMFC Senior Loan Program I LLC Units (4)(5)(6)  N/A  N/A  08/13/14  08/31/22  10,000   10,029   9,520  3.03 
WHF STRS Ohio Senior Loan Fund LLC Interests (4)(5)(7)(14)  N/A  N/A  07/19/19  N/A  10,268   10,268   9,315  2.96 
               20,268   20,297   18,835  5.99 
Trading Companies & Distributors                           
Vessco Holdings, LLC Units(4)  N/A  N/A  08/22/19  N/A  506   860   4,090  1.30 
Trucking                           
Europcar Mobility Group Earnout (4)(5)  N/A  N/A  10/31/19  12/31/22  -   -   29  0.01 
                            
Total Equity Investments              22,586   29,069   29,065  9.24 
                            
Total Investments              625,164  $598,477  $595,295  189.24%

 

See notes to the consolidated financial statements

 

10

 

 

WhiteHorse Finance, Inc.

Consolidated Schedule of Investments (Unaudited) - (continued)

September 30, 2020

(in thousands)

 

(1)Except as otherwise noted, all investments are non-controlled/non-affiliate investments as defined by the Investment Company Act of 1940, as amended (the “1940 Act”), and provide collateral for the Company’s credit facility.

 

(2)The investments bear interest at a rate that may be determined by reference to the London Interbank Offered Rate (“LIBOR” or “L”), which resets monthly, quarterly or semiannually, the Canadian Dollar Offered Rate (“CDOR” or “C”) or the U.S. Prime Rate as published by the Wall Street Journal (“Prime” or “P”). The one, three and six-month LIBOR were 0.1%, 0.2% and 0.3%, respectively, as of September 30, 2020. The Prime was 3.25% as of September 30, 2020. The CDOR was 0.5% as of September 30, 2020.

 

(3)The interest rate is the “all-in-rate” including the current index and spread, the fixed rate, and the payment-in-kind (“PIK”) interest rate, as the case may be.

 

(4)The investment or a portion of the investment does not provide collateral for the Company’s credit facility.

 

(5)Not a qualifying asset under Section 55(a) of the 1940 Act. Under the 1940 Act, the Company may not acquire any non-qualifying asset unless, at the time the acquisition is made, qualifying assets represent at least 70% of total assets. Qualifying assets represented 81% of total assets as of the date of the consolidated schedule of investments.

 

(6)Investment is a non-controlled/affiliate investment as defined by the 1940 Act.

 

(7)The investment has an unfunded commitment in addition to any amounts presented in the consolidated schedule of investments as of September 30, 2020. See Note 8.

 

(8)The investment is on non-accrual status.

 

(9)Security is perpetual with no defined maturity date.

 

(10)Except as otherwise noted, all of the Company’s portfolio company investments, which as of the date of the consolidated schedule of investments represented 189% of the Company’s net assets or 95% of the Company’s total assets, are subject to legal restrictions on sales.

 

(11)The fair value of each investment was determined using significant unobservable inputs. See Note 5.

 

(12)The investment was comprised of two contracts, which were indexed to different base rates, L and P, respectively. The Spread Above Index and Interest Rate presented represent the weighted average of both contracts.

 

(13)Principal amount is denominated in Canadian dollars.

 

(14)Investment is a controlled affiliate investment as defined by the 1940 Act. On January 14, 2019, the Company entered into an agreement (as described in Note 4 hereto) with State Teachers Retirement System of Ohio, a public pension fund established under Ohio law (“STRS Ohio”), to create WHF STRS Ohio Senior Loan Fund, LLC (“STRS JV”), a joint venture, which invests primarily in senior secured first and second lien term loans.

 

(15)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 2.75% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(16)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(17)In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.00% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

(18)In August 2020, in conjunction with the AG Kings Holdings, Inc. bankruptcy, the Company converted approximately $14.2 million of its existing first lien secured term loan into a new superpriority secured debtor-in-possession term loan.

 

(19)On October 1, 2020, as part of a restructuring agreement between the Company and Arcole Acquisition Corp, the Company’s investments in first lien secured term loans to Arcole Acquisition Corp were equitized into common shares of Arcole Holding Corp.

 

See notes to consolidated financial statements

 

11

 

 

WhiteHorse Finance, Inc. 

Consolidated Schedule of Investments

December 31, 2019 

(in thousands)

 

Investment Type(1)   Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition
Date(10)
  Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
North America                                  
Debt Investments                                  
Advertising                                  
Fluent, LLC                                  
First Lien Secured Term Loan   L+ 7.00%   8.80 % 03/26/18   03/26/24   9,337   $ 9,337   $ 9,337   2.98 %
    (0.50% Floor)                              
Agricultural & Farm Machinery                                  
Bad Boy Mowers Acquisition, LLC                                  
First Lien Secured Term Loan   L+ 5.75%   7.38 % 12/19/19   12/06/25   10,385   10,073   10,073   3.22  
    (1.00% Floor)                              
Air Freight & Logistics                                  
Access USA Shipping, LLC                                  
First Lien Secured Term Loan   L+ 8.00%   9.80 % 02/08/19   02/08/24   5,651   5,581   5,600   1.79  
    (1.00% Floor)                              
Application Software                                  
Newscycle Solutions, Inc.                                  
First Lien Secured Term Loan   L+ 7.00%   8.80 % 06/14/19   12/29/22   5,263   5,174   5,136   1.64  
    (1.00% Floor)                              
First Lien Secured Revolving Loan(7)   L+ 6.50%   9.77 % 06/14/19   12/29/22   265   262   259   0.08  
    (1.00% Floor)                              
                    5,528   5,436   5,395   1.72  
Automotive Retail                                  
Team Car Care Holdings, LLC                                  
First Lien Secured Term Loan(12)   base rate+   10.05 % 02/26/18   02/26/23   16,722   16,485   16,722   5.34  
    7.99%                              
    (1.00% Floor)                              
BW Gas & Convenience Holdings, LLC                                  
First Lien Secured Term Loan   L+ 6.25%   8.00 % 11/15/19   11/18/24   8,500   8,164   8,168   2.61  
    (1.00% Floor)                              
                    25,222   24,649   24,890   7.95  
Broadcasting                                  
Alpha Media, LLC                                  
First Lien Secured Term Loan   L+ 6.00%   7.87 % 08/14/18   02/25/22   5,405   5,299   5,405   1.73  
    (1.50% Floor)                              
Rural Media Group, Inc.                                  
First Lien Secured Term Loan   L+ 7.71%   9.64 % 12/29/17   12/29/22   7,133   7,050   6,991   2.23  
    (1.00% Floor)                              
                    12,538   12,349   12,396   3.96  
Cable & Satellite                                  
Bulk Midco, LLC                                  
First Lien Secured Term Loan   P+ 6.27%   11.02 % 06/08/18   06/08/23   15,000   14,845   14,250   4.45  
    (2.25% Floor)                              
Communications Equipment                                  
Sorenson Communications, LLC                                  
First Lien Secured Term Loan   L+ 6.50%   8.44 % 03/15/19   04/29/24   4,875   4,749   4,857   1.55  
    (0.00% Floor)                              
Data Processing & Outsourced Services                                  
FPT Operating Company, LLC/ TLabs                                  
Operating Company, LLC                                  
First Lien Secured Term Loan   L+ 8.25%   9.94 % 06/07/19   06/07/24   24,907   24,685   24,284   7.76  
    (1.00% Floor)                              
Geo Logic Systems Ltd.(5)                                  
First Lien Secured Term Loan(13)   C+ 6.25%   8.26 % 12/19/19   12/19/24   21,718   16,231   16,415   5.25  
    (1.00% Floor)                              
First Lien Secured Revolving Loan(7)(13)   C+ 6.25%                              
    (1.00% Floor)   8.26 % 12/19/19   12/19/24   -   -   -   -  
                    46,625   40,916   40,699   13.01  

 

See notes to consolidated financial statements

 

12

 

  

Whitehorse Finance, Inc.

Consolidated Schedule of Investments - (Continued) 

December 31, 2019

(in thousands)

 

Investment Type(1)   Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition
Date(10)
  Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
Department Stores                                  
Mills Fleet Farm Group, LLC                                  
First Lien Secured Term Loan   L+ 7.00%   9.04%   10/24/18   10/24/24   14,883   $ 14,591   $ 13,544   4.33 %
    (1.00% Floor)   (0.75%PIK)                          
Distributors                                  
Crown Brands, LLC                                  
First Lien Secured Term Loan   L+ 8.00%   9.80%   01/28/19   01/25/24   5,727   5,610   5,596   1.79  
    (1.50% Floor)                              
First Lien Secured Delayed Draw Loan(7)   L+ 8.00%   9.80%   01/28/19   01/25/24       (2 )  
    (1.50% Floor)                              
                    5,727   5,610   5,594   1.79  
Diversified Chemicals                                  
Sklar Holdings, Inc.                                  
First Lien Secured Term Loan   L+ 6.00%   7.99%   11/13/19   05/13/23   8,902   8,731   8,731   2.79  
    (1.00% Floor)   (1.00%PIK)                          
First Lien Secured Revolving Loan(7)   L+ 6.00%   7.99%   11/13/19   05/13/20       2    
    (1.00% Floor)   (1.00%PIK)                          
                    8,902   8,731   8,733   2.79  
Diversified Support Services                                  
ImageOne Industries, LLC                                  
First Lien Secured Term Loan   L+ 10.00%   11.80%   01/11/18   01/11/23   7,261   7,097   6,898   2.20  
    (1.00% Floor)   (4.00%PIK)                          
First Lien Secured Revolving Loan(4)   L+ 10.00%   11.94%   07/22/19   12/12/22   525   525   525   0.17  
    (1.00% Floor)   (4.00%PIK)                          
NNA Services, LLC                                  
First Lien Secured Term Loan   L+ 7.00%   8.84%   10/16/18   10/16/23   9,889   9,739   9,889   3.16  
    (1.50% Floor)                              
                    17,675   17,361   17,312   5.53  
Education Services                                  
EducationDynamics, LLC                                  
First Lien Secured Term Loan   L+ 7.50%   9.42%   11/26/19   11/26/24   11,750   11,520   11,519   3.68  
    (1.00% Floor)                              
Environmental & Facilities Services                                  
WH Lessor Corp.                                  
First Lien Secured Term Loan   L+ 6.00%   7.79%   12/26/19   12/26/24   6,458   6,330   6,329   2.02  
    (1.00% Floor)                              
First Lien Secured Revolving Loan(7)   L+ 6.00%   7.79%   12/26/19   12/26/24          
    (1.00% Floor)                              
                    6,458   6,330   6,329   2.02  
Food Retail                                  
AG Kings Holdings, Inc.                                  
First Lien Secured Term Loan(8)   P+ 11.00%   15.75%   08/10/16   08/10/21   13,250   12,837   7,668   2.45  
    (2.25% Floor)   (2.00%PIK)                          
Health Care Facilities                                  
Grupo HIMA San Pablo, Inc.                                  
First Lien Secured Term Loan A   L+ 9.00%   10.94%   05/15/19   04/30/19   3,855   3,855   3,276   1.05  
    (1.50% Floor)                              
First Lien Secured Term Loan B   L+ 9.00%   10.94%   02/01/13   04/30/19   13,511   13,511   11,484   3.67  
    (1.50% Floor)                              
Second Lien Secured Term Loan(8)   N/A   15.75%   02/01/13   07/31/18   1,028   1,024      
        (2.00%PIK)                          
                    18,394   18,390   14,760   4.72  

 

See notes to consolidated financial statements

 

13

 

 

Whitehorse Finance, Inc. 

Consolidated Schedule of Investments - (Continued)

December 31, 2019 

(in thousands)

 

Investment Type(1)   Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition
Date(10)
  Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
Health Care Services                                  
CHS Therapy, LLC                                  
First Lien Secured Term Loan A   L+ 8.50%   10.44%   06/14/19   06/14/24   7,615   $ 7,486   $ 7,615   2.43 %
    (1.50% Floor)                              
Lab Logistics, LLC                                  
First Lien Secured Term Loan   L+ 6.50%   8.56%   10/16/19   09/25/23   107   106   106   0.03  
    (1.00% Floor)                              
First Lien Secured Delayed Draw   L+ 6.50%                              
Loan(7)   (1.00% Floor)   8.44%   10/16/19   09/25/23   5,289   5,251   5,251   1.68  
PMA Holdco, LLC                                  
First Lien Secured Term Loan   L+ 7.75%   9.69%   06/28/18   06/28/23   12,784   12,595   12,720   4.06  
    (1.00% Floor)   (2.00%PIK)                          
                    25,795   25,438   25,692   8.20  
Home Furnishings                                  
Sure Fit Home Products, LLC                                  
First Lien Secured Term Loan   L+ 9.75%   11.70%   10/26/18   07/13/22   5,250   5,178   5,040   1.61  
    (1.00% Floor)                              
Human Resources & Employment Services                                  
Pluto Acquisition Topco, LLC                                  
First Lien Secured Term Loan   L+ 6.31%   8.23%   01/31/19   01/31/24   12,354   12,152   12,354   3.95  
    (1.50% Floor)                              
Interactive Media & Services                                  
What If Media Group, LLC                                  
First Lien Secured Term Loan   L+ 7.00%   8.80%   10/02/19   10/02/24   12,919   12,673   12,673   4.05  
    (1.00% Floor)                              
Internet & Direct Marketing Retail                                  
Potpourri Group, Inc.                                  
First Lien Secured Term Loan   L+ 8.25%   9.94%   07/03/19   07/03/24   18,763   18,385   18,424   5.89  
    (1.50% Floor)                              
Investment Banking & Brokerage                                  
Arcole Acquisition Corp(5)                                  
First Lien Secured Term Loan A   L+ 8.25%   10.16%   11/29/18   11/30/23   5,231   5,156   4,968   1.59  
    (1.00% Floor)                              
First Lien Secured Term Loan B   L+ 14.50%   16.41%   11/29/18   11/30/23   1,805   1,779   1,777   0.57  
    (1.00% Floor)   (1.50%PIK)                          
JVMC Holdings Corp.                                  
(f/k/a RJO Holdings Corp)                                  
First Lien Secured Term Loan   L+ 6.50%   8.30%   02/28/19   02/28/24   16,190   16,055   16,190   5.17  
    (1.00% Floor)                              
                    23,226   22,990   22,935   7.33  
IT Consulting & Other Services                                  
AST-Applications Software Technology LLC                                  
First Lien Secured Term Loan   L+ 8.00%   9.80%   01/10/17   01/10/23   4,236   4,187   4,236   1.35  
    (1.00% Floor)   (1.00%PIK)                          
Leisure Facilities                                  
Honors Holdings, LLC                                  
First Lien Secured Term Loan   L+ 6.86%   8.74%   09/06/19   09/06/24   9,405   9,264   9,305   2.97  
    (1.00% Floor)                              
First Lien Secured Delayed Draw   L+ 6.00%   7.90%   09/06/19   09/06/24   4,662   4,616   4,612   1.47  
Loan   (1.00% Floor)                              
Lift Brands, Inc.                                  
First Lien Secured Term Loan   L+ 7.50%   9.44%   04/16/18   04/16/23   10,532   10,387   10,038   3.21  
    (1.00% Floor)   (0.50%PIK)                          
First Lien Secured Revolving   P+ 6.00%   10.75%   04/16/18   04/16/23   158   156   131   0.04  
Loan(7)   (2.76% Floor)                              
                    24,757   24,423   24,086   7.69  

 

See notes to consolidated financial statements

 

14

 

 

Whitehorse Finance, Inc. 

Consolidated Schedule of Investments - (Continued)

December 31, 2019

(in thousands)

 

Investment Type(1)   Spread
Above
Index(2)
  Interest
Rate(3)
  Acquisition
Date(10)
  Maturity
Date
  Principal/
Share
Amount
  Amortized
Cost
  Fair
Value(11)
  Fair Value
As A
Percentage
of Net
Assets
 
Office Services & Supplies                                  
Empire Office, Inc.                                  
First Lien Secured Term Loan   L+ 6.75%   8.55%   04/12/19   04/12/24   12,224   $ 12,015   $ 12,029   3.84 %
    (1.50% Floor)                              
Other Diversified Financial Services                                  
Sigue Corporation(4)                                  
Second Lien Secured Term   L+ 12.00%   13.94%   12/27/13   05/01/20   24,904   24,905   24,655   7.88  
Loan(4)   (1.00% Floor)                              
Packaged Foods & Meats                                  
Lenny & Larry’s, LLC                                  
First Lien Secured Term Loan   L+ 7.97%   9.71%   05/15/18   05/15/23   12,293   12,128   11,924   3.81  
    (1.00% Floor)   (1.18%PIK)                          
Research & Consulting Services                                  
Nelson Worldwide, LLC                                  
First Lien Secured Term Loan   L+ 9.25%   11.23%   01/09/18   01/09/23   13,603   13,397   13,263   4.24  
    (1.00% Floor)                              
ALM Media, LLC                                  
First Lien Secured Term Loan   L+ 6.50%   8.44%   11/25/19   11/25/24   15,750   15,441   15,441   4.93  
    (1.00% Floor)                              
                    29,353   28,838   28,704   9.17  
Restaurants