The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. This discussion and analysis contains forward-looking statements that involve risks, uncertainties and assumptions. Our actual results could differ materially from those contained in or implied by the forward-looking statements. See "Cautionary Statement Regarding Forward-Looking Statements" following the Table of Contents for further information regarding forward-looking statements. Certain amounts and percentages in this discussion and analysis have been rounded for convenience of presentation. Unless otherwise noted, the figures in the following discussions are unaudited.
Overview
First Eagle Alternative Capital BDC, Inc. (formerly known asTHL Credit, Inc. ), or we, us, our or the Company, was organized as aDelaware corporation onMay 26, 2009 and initially funded onJuly 23, 2009 . We commenced principal operations onApril 21, 2010 . OnJanuary 31, 2020 ,First Eagle Alternative Credit, LLC , formerly known asTHL Credit Advisors LLC , the investment advisor (the "Advisor") toTHL Credit , andFirst Eagle Investment Management, LLC ("First Eagle") completed its acquisition of the Advisor (the "Transaction") and, in conjunction with the completion of the Transaction, the Advisor's name was changed toFirst Eagle Alternative Credit, LLC . Our investment activities are managed byFirst Eagle Alternative Credit, LLC "FEAC" and supervised by our board of directors, a majority of whom are independent of FEAC and its affiliates. Our investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated investments in debt and equity securities of middle market companies. As ofJune 30, 2020 , we, together with our credit-focused affiliates, collectively had$22.7 billion of assets under management. This amount included our assets, assets of the managed funds and a separate account managed by us, and assets of the collateralized loan obligations (CLOs), separate accounts and various fund formats, as managed by the investment professionals of the Advisor or its consolidated subsidiary. We are a direct lender to middle market companies and invest primarily in directly originated first lien senior secured loans, including unitranche investments. In certain instances, we also make second lien, subordinated, or mezzanine, debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity investments. Our first lien senior secured loans may be structured as traditional first lien senior secured loans or as unitranche loans. Unitranche structures combine characteristics of traditional first lien senior secured as well as second lien and subordinated loans and our unitranche loans will expose us to the risks associated with second lien and subordinated loans to the extent we invest in the "last-out" tranche or subordinated tranche (or piece) of the unitranche loan. We may also provide advisory services to managed funds. We are an externally managed, non-diversified, closed-end investment company that has elected to be regulated as a business development company, or BDC, under the Investment Company Act of 1940 Act, as amended, or the 1940 Act. As a BDC, we are required to comply with certain regulatory requirements. For instance, we generally have to invest at least 70% of our total assets in "qualifying assets," including securities of private or thinly traded publicU.S. companies, cash, cash equivalents,U.S. Government securities and high-quality debt investments that mature in one year or less. As a BDC, we must not acquire any assets other than "qualifying assets" specified in the 1940 Act unless, at the time the acquisition is made, at least 70% of our total assets are qualifying assets (with certain limited exceptions). Qualifying assets include investments in "eligible portfolio companies." Under the relevantU.S. Securities and Exchange Commission , orSEC , rules the term "eligible portfolio company" includes all private companies, companies whose securities are not listed on a national securities exchange, and certain public companies that have listed their securities on a national securities exchange and have a market capitalization of less than$250 million , in each case organized inthe United States .
We are also registered as an investment adviser under the Investment Advisers Act of 1940, as amended.
SinceApril 2010 , after we completed our initial public offering and commenced principal operations, throughJune 30, 2020 , we have been responsible for making, on behalf of ourselves, our managed funds and separately managed account, over$2.3 billion in aggregate commitments into 131 separate portfolio companies through a combination of both initial and follow-on investments. SinceApril 2010 throughJune 30, 2020 , we, along with our managed funds and separately managed account, have received$1.8 billion of gross proceeds from the realization of investments. The Company alone has received$1.5 billion of gross proceeds from the realization of its investments during this same time period. As ofJune 30, 2020 , our managed funds,THL Credit Greenway, LLC , or Greenway, andTHL Credit Greenway II, LLC , or Greenway II, and its separately managed account, collectively Greenway II, have received$190.8 million , or 127.2% of committed capital, and$207.6 million , or 111.0% of the committed capital, respectively. We have elected to be treated for tax purposes as a regulated investment company, or RIC, under Subchapter M of the Internal Revenue Code of 1986, as amended, or the Code. To qualify as a RIC, we must, among other things, meet certain source of income and asset diversification requirements. As a RIC, we generally will not have to pay corporate-level income taxes on any income we distribute to our stockholders. 68 --------------------------------------------------------------------------------
COVID-19 Developments During the first half of 2020, there was a global outbreak of COVID-19, which has spread to over 100 countries, includingthe United States , and has spread to every state inthe United States . TheWorld Health Organization has designated COVID-19 as a pandemic, and numerous countries, includingthe United States , have declared national emergencies with respect to COVID-19. The global impact of the outbreak has been rapidly evolving, and as cases of COVID-19 have continued to be identified in additional countries, many countries have reacted by instituting quarantines and restrictions on travel, closing financial markets and/or restricting trading, and limiting operation of non-essential businesses. Such actions are creating disruption in global supply chains and adversely impacting many industries. The outbreak could have a continued adverse impact on economic and market conditions and trigger a period of global economic slowdown. We have enhanced our portfolio monitoring practices to include a potential threat assessment of the impact of COVID-19 on our portfolio companies, and we are maintaining frequent contact with our borrowers, sponsors and co-lenders. We have continued to fund our existing debt commitments. We expect the impacts of COVID-19 are likely to continue to some extent as the outbreak persists, and potentially even longer. The rapid development and fluidity of this situation precludes any prediction as to the ultimate adverse impact of COVID-19 on economic and market conditions, and, as a result, present material uncertainty and risk with respect to us and the performance of our portfolio companies. The full extent of the impact and effects of COVID-19 will depend on future developments, including, among other factors, the duration and spread of the outbreak, along with related travel advisories, quarantines and restrictions, the recovery time of the disrupted supply chains and industries, the impact of labor market interruptions, the impact of government interventions, and uncertainty with respect to the duration of a global economic slowdown. Depending on the duration and extent of the disruptions to the operations of our portfolio companies, we expect that some of our portfolio companies may curtail business operations, reduce employee workforces or defer capital expenditures if subjected to prolonged financial distress, which could impair their business on a permanent basis. These impairments could possibly lead to defaults on their financial obligations to us and other capital providers. These developments may result in further losses and/or restructurings that may lead to decreased investment income. Our net asset value for the quarter endedMarch 31, 2020 was significantly reduced compared to our net asset value as ofDecember 31, 2019 , primarily as a result of the impact of COVID-19. The decrease in net asset value as ofMarch 31, 2020 primarily resulted from an increase in the aggregate unrealized depreciation of our investment portfolio resulting from decreases in the fair value of some of our portfolio company investments primarily due to the immediate adverse economic effects of COVID-19 and associated uncertainties of its long-term impact, as well as the re-pricing of credit risk and increased volatility in the broadly syndicated credit market. During the second quarter of 2020, our net asset value increased as compared toMarch 31, 2020 resulting from a decrease in the aggregate unrealized depreciation of our investment portfolio. The decrease in unrealized depreciation during the three months endedJune 30, 2020 is primarily attributable to reduced volatility and stabilization in the broadly syndicated market. The financial results for the six months endedJune 30, 2020 do not reflect the full anticipated impact of COVID-19 on our operations as many of the preventative measures utilized in theU.S. , including quarantines and travel restrictions, were generally instituted in the second half ofMarch 2020 and are ongoing. We will continue to monitor the rapidly evolving situation in relation to COVID-19, and the resulting impacts on our portfolio companies' operations. Given the dynamic nature, coupled with the significant uncertainties of the situation, we cannot reasonably estimate the impact of COVID-19 on our financial condition, results of operations or cash flows in the future. However, to the extent our portfolio companies are adversely impacted by the effects of COVID-19 and the current financial, economic and capital markets environment, and future developments in these and other areas, it may have a material adverse impact on our performance, financial condition, results of operations and ability to pay distributions.
Portfolio Composition and Investment Activity
Portfolio Composition As ofJune 30, 2020 , we had$331.0 million of portfolio investments (at fair value), which represents a$53.1 million , or 13.8% decrease from the$384.1 million (at fair value) as ofDecember 31, 2019 . Our portfolio consisted of 44 investments, including Greenway, and Greenway II, as ofJune 30, 2020 , compared to 52 portfolio investments, including Greenway and Greenway II, as ofDecember 31, 2019 . As ofJune 30, 2020 , we had$111.1 million of controlled portfolio investments (at fair value) in four portfolio companies, which represents a$30.8 million , or 21.7%, decrease from$141.9 million (at fair value) as ofDecember 31, 2019 in four portfolio companies. The decrease in controlled portfolio companies was largely the result of a decrease in fair value ofOEM Group, LLC and a market reduction ofTHL Credit Logan JV LLC (the "Logan JV"). Our average controlling equity position atJune 30, 2020 was approximately$44.5 million and$27.8 million at cost and fair value, respectively. Our investment in the Logan JV represented 17.4% and 21.7% of our portfolio investments at fair value as ofJune 30, 2020 andDecember 31, 2019 , respectively. We are currently limiting new investments in new portfolio companies to 2.5% of our investment portfolio based upon the most recent fair market value. 69
-------------------------------------------------------------------------------- The Following table shows certain portfolio highlights based on cost and fair value (in millions). As of June 30, 2020 December 31, 2019 Cost Fair Value Cost Fair Value Largest portfolio company investment - Logan JV$ 92.3 $ 57.7 $ 97.1 $ 83.4 Largest portfolio company investment - excluding Logan JV, Greenway I and II, investments where we hold controlling 23.2 19.1 23.1 20.9 equity position and investments where we hold equity only Average portfolio company investment 9.5 7.5 8.5 7.4 Average portfolio company investment - excluding Logan JV, Greenway I and II, investments where we hold controlling equity 7.6 7.0 6.7 6.2 position and investments where we hold equity only Total investments where we hold controlling equity position and investments where we 97.2 63.8 91.1 66.4 hold equity only, including Greenway I and II AtJune 30, 2020 and atDecember 31, 2019 , based upon fair value, 100.0% of our debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR. The following table shows the weighted average yield by investment category at their current cost. As of June 30, Description: 2020 December 31, 2019
First lien senior secured debt (1) 5.8 % 8.0 % Second lien debt 11.8 % 12.8 % Income-producing equity securities (2) 0.0 % 0.0 % Debt and income-producing investments (1)(3) 6.1 % 8.2 % Logan JV (4) 9.0 % 10.5 % All investments including Logan JV (1)(4) 6.8 % 8.7 %
(1) Includes all loans on non-accrual status.
(2) Includes income from debt-like equity securities where there is a stated rate
and amounts are due on a fixed payment schedule.
(3) Includes yields on controlled investments, but excludes the yield on the
Logan JV.
(4) As of
of
and
10.5%, respectively, based on average capital invested. We expect the
dividend yield to fluctuate as a result of the timing of additional capital
invested, the changes in asset yields in the underlying portfolio and the
overall performance of the Logan JV investment portfolio.
The weighted average yield of our debt investments is not the same as a return on investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our fees and expenses. The weighted average yield was computed using the effective interest rates as ofJune 30, 2020 , including accretion of original issue discount and loan origination fees. This weighted average yield reflects the impact of loans on non-accrual status. There can be no assurance that the weighted average yield will remain at its current level. As ofJune 30, 2020 andDecember 31, 2019 , 2.8% and 1.7%, respectively, of our investment portfolio at fair value was comprised of non-income producing equity and warrant investments. We intend to continue to reduce our non-income producing investments in 2020 and beyond. No assurance can be given that we will be successful in achieving this target. As ofJune 30, 2020 andDecember 31, 2019 , portfolio investments, in which we have debt investments, had a median adjusted earnings before interest, taxes, depreciation and amortization, or EBITDA, of approximately$18.5 million and$16.0 million , respectively, based on the latest available financial information provided by the portfolio companies for each of these periods. As ofJune 30, 2020 andDecember 31, 2019 , our median attachment point in the capital structure of our debt investments in portfolio companies is approximately 5.2 times and 4.6 times the portfolio company's EBITDA, respectively, based on our latest available financial information for each of these periods. 70 -------------------------------------------------------------------------------- We expect the percentage of our portfolio investments in unsponsored investments to decrease significantly over time as we work through restructurings, which may include providing additional liquidity through revolving loans, and ultimately exit our unsponsored investments. However, these portfolio investments may require follow-on capital as we work through restructurings, which will increase our exposure to these investments. Going forward, we expect unsponsored investments we make, if any, would only be in first lien senior secured investments. As ofJune 30, 2020 , our portfolio of unsponsored debt investments included two investments, excluding our investment inWheels Up Partners, LLC , which is a non-income producing equity security. One is performing at or above our expectations and has an Investment Score of 1. The other unsponsored investment has an Investment Score of 5. As ofDecember 31, 2019 , our portfolio of unsponsored debt investments included four investments, excluding our investment inWheels Up Partners, LLC , which is a non-income producing equity security. Two were performing at or above our expectations and have an Investment Score of 1 or 2. The other unsponsored investment had an Investment Score of 3.
As of
The following table summarizes sponsored and unsponsored investments based on amortized cost and fair value (in millions).
As of June 30, 2020 As of December 31, 2019 Fair Fair Value Value Amortized Fair as % of Amortized Fair as % of Cost Value Total Cost Value Total Sponsored Investments (1)$ 254.7 $ 225.9 82.6 %$ 272.9 $ 241.4 80.3 % Unsponsored Investments (1) 70.3 47.5 17.4 % 72.3 59.3 19.7 % Total$ 325.0 $ 273.4 100.0 %$ 345.2 $ 300.7 100.0 %
(1)
The following table summarizes the amortized cost and fair value of investments
as of
Amortized Percentage of Percentage of Description Cost Total Fair Value (1) Total First lien senior secured debt$ 274.3 65.7 % $ 234.1 70.8 % Investment in Logan JV 92.2 22.1 % 57.7 17.4 % Equity investments 35.4 8.5 % 24.9 7.5 % Second lien debt 12.0 2.9 % 11.5 3.5 % Investments in funds 3.4 0.8 % 2.8 0.8 % Total investments$ 417.3 100.0 % $ 331.0 100.0 %
(1) All investments are categorized as Level 3 in the fair value hierarchy,
except for investments in funds and the Logan JV, which are excluded from the
fair value hierarchy in accordance with ASU 2015-07. These assets are valued
at net asset value.
The following table summarizes the amortized cost and fair value of investments
as of
Amortized Percentage of Percentage of Description Cost Total Fair Value (1) Total First lien senior secured debt$ 295.8 66.9 % $ 263.6 68.7 % Investment in Logan JV 97.1 22.0 % 83.4 21.7 % Equity investments 33.8 7.6 % 21.5 5.6 % Second lien debt 11.9 2.7 % 12.0 3.1 % Investments in funds 3.4 0.8 % 3.6 0.9 % Warrants 0.2 0.0 % - 0.0 % Total investments$ 442.2 100.0 % $ 384.1 100.0 %
(1) All investments are categorized as Level 3 in the fair value hierarchy,
except for: 1) certain broadly syndicated loans which are categorized as
Level 2 in the fair value hierarchy and noted as such on the Consolidated
Schedule of Investments as of
and the Logan JV, which are excluded from the fair value hierarchy in
accordance with ASU 2015-07; these assets are valued at net asset value.
71 -------------------------------------------------------------------------------- We expect the percent of our core assets, which we define as first lien senior secured loans and the Logan JV, to continue to increase as a percent of total investments as we exit non-qualifying BDC assets as defined under the 1940 Act and our controlled equity investments, through sales or repayments, and redeploy these proceeds. We intend to continue our efforts to reposition the portfolio towards these core assets, which we believe will reduce our exposure to portfolio company risks and potential changes in interest rates.
The following is a summary of the industry classification in which we invest as
of
Amortized % of Total % of Net Industry Cost Fair Value Portfolio Assets Investment funds and vehicles$ 92.2 $ 57.6 17.42 % 29.51 % Healthcare 59.2 55.6 16.79 % 28.42 % Consumer products and services 66.7 53.3 16.10 % 27.26 % Business services 43.2 42.3 12.77 % 21.61 % Financial services 32.0 29.8 9.01 % 15.26 % Industrials and manufacturing 56.1 29.7 8.97 % 15.19 % IT services 26.8 26.3 7.94 % 13.45 % Retail & grocery 13.2 15.7 4.74 % 8.02 % Energy / utilities 21.4 13.1 3.97 % 6.72 % Media, entertainment and leisure 5.5 5.5 1.66 % 2.81 % Transportation 1.0 2.1 0.63 % 1.06 % Total Investments$ 417.3 $ 331.0 100.00 % 169.31 %
The following is a summary of the industry classification in which we invest as
of
Amortized % of Total % of Net Industry Cost Fair Value Portfolio Assets Investment funds and vehicles$ 97.1 $ 83.3 21.71 % 36.34 % Consumer products and services 61.8 55.0 14.32 % 23.98 % Healthcare 54.3 54.2 14.10 % 23.60 % Business services 44.5 44.9 11.70 % 19.58 % Industrials and manufacturing 52.7 35.1 9.14 % 15.31 % IT services 35.5 33.9 8.82 % 14.77 % Financial services 23.7 24.2 6.29 % 10.52 % Energy / utilities 47.5 23.8 6.19 % 10.36 % Retail & grocery 15.7 17.7 4.61 % 7.72 % Media, entertainment and leisure 8.4 8.5 2.21 % 3.71 % Transportation 1.0 3.5 0.91 % 1.52 % Total Investments$ 442.2 $ 384.1 100.00 % 167.41 % 72
--------------------------------------------------------------------------------
Investment Activity
The following is a summary of our investment activity, presented on a cost
basis, for the three and six months ended
Three months ended June 30, Six months ended June 30, 2020 2019 2020 2019 New portfolio investments $ -$ 31.9 $ 17.6 $ 45.7 Existing portfolio investments: Follow-on investments (1) 0.4 9.7 0.4 27.2 Delayed draw and revolver investments
4.3
(1) 5.0 20.6 7.6 Total existing portfolio investments 5.4 14.0 21.0 34.8
Total portfolio investment activity $ 5.4
- 7 3 10 Number of follow-on investments 5 9 16 9 First lien senior secured debt $ 5.4$ 41.9 $ 38.6 $ 76.3 Investment in Logan JV - 4.0 - 4.0 Equity investments - - - 0.2 Total portfolio investments $ 5.4$ 45.9 $ 38.6 $ 80.5 Weighted average yield of new debt 7.0 % 7.7 % 7.0 % 9.5 %
investments
Weighted average yield, including all 7.0 % 8.6 % 7.0 % 10.0 %
new income-producing investments
(1) Includes follow-on investments in controlled investments. Refer to Schedule
12-14 for additional detail.
For the three and six months endedJune 30, 2020 , we had prepayments and sales of our investments, including any prepayment premiums, totaling$4.0 million and$42.2 million , respectively. For the three and six months endedJune 30, 2019 , we had prepayments and sales of our investments, including any prepayment premiums, totaling$59.1 million and$84.7 million , respectively. Please refer to "Results of Operations- Net Realized Gains and Losses on Investments, net of income tax provision" for additional details surrounding certain investments that were sold.
The following are proceeds received from notable prepayments, sales and other activity related to our investments (in millions):
For the six months ended
• Proceeds of
syndicated investments made in
net realized gain;
• Sale of a first lien senior secured term loan in
with proceeds received of
• Repayment of a first lien senior secured term loan on Holland Intermediate
receivable accrual of
recorded which was offset by a corresponding reversal of unrealized
depreciation.
For the six months ended
• Sale of a first lien senior secured term loan in
proceeds received of
• Repayment of a first lien senior secured term loan in
resulted in proceeds of
• Repayment of a first lien senior secured term loan in
at par, which resulted in proceeds of
• Sale of a first lien senior secured term loan in
Inc. with proceeds received of$7.7 million ; and • Repayment of the first lien senior secured term loans in LAI
and an additional$4.4 million in expected proceeds reflected as a receivable. The realized loss of$22.7 million was largely offset by a corresponding change in unrealized appreciation and a$1.5 million exit fee recorded as income. 73
-------------------------------------------------------------------------------- Our level of investment activity can vary substantially from period to period depending on many factors, including the amount of debt and equity capital available to middle market companies, the level of merger and acquisition activity, the general economic environment and the competitive environment for the types of investments we make. The frequency and volume of any prepayments may fluctuate significantly from period to period. The future adverse impact of COVID-19 on the broader markets in which we invest cannot currently be accurately predicted and future investment activity of the Company will be subject to these effects and related uncertainties.
Aggregate Cash Flow Realized Gross Internal Rate of Return
SinceApril 2010 , after we completed our initial public offering and commenced principal operations, throughJune 30, 2020 , our fully exited investments have resulted in an aggregate cash flow realized gross internal rate of return to us of 10.7% (based on cash invested of$1.5 billion and total proceeds from these exited investments of$1.9 billion ). 78.9% of these exited investments resulted in an aggregate cash flow realized gross internal rate of return to us of 10% or greater. Internal rate of return, or IRR, is a measure of our discounted cash flows (inflows and outflows). Specifically, IRR is the discount rate at which the net present value of all cash flows is equal to zero. That is, IRR is the discount rate at which the present value of total cash invested in our investments is equal to the present value of all realized returns from the investments. Our IRR calculations are unaudited.
Investment Risk
The value of our investments will generally fluctuate with, among other things, changes in prevailing interest rates, federal tax rates, counterparty risk, general economic conditions, the condition of certain financial markets, developments or trends in any particular industry and the financial condition of the issuer. During periods of limited liquidity and higher price volatility, our ability to dispose of investments at a price and time that we deem advantageous may be impaired. Lower-quality debt securities involve greater risk of default or price changes due to changes in the credit quality of the issuer. The value of lower-quality debt securities often fluctuates in response to company, political, or economic developments and can decline significantly over short periods of time or during periods of general or regional economic difficulty. Lower-quality debt securities can be thinly traded or have restrictions on resale, making them difficult to sell at an acceptable price. The default rate for lower-quality debt securities is likely to be higher during economic recessions or periods of high interest rates. Logan JV OnDecember 3, 2014 , we entered into an agreement withPerspecta Trident LLC , an affiliate ofPerspecta Trust LLC , or Perspecta, to createTHL Credit Logan JV LLC , or Logan JV, a joint venture, which invests primarily in senior secured first lien term loans. All Logan JV investment decisions must be unanimously approved by the Logan JV investment committee consisting of one representative from each of us and Perspecta. We have determined that Logan JV is an investment company under ASC 946, however, in accordance with such guidance, we will generally not consolidate our investment in a company other than a substantially owned investment company subsidiary or a controlled operating company whose business consists of providing services to us. Accordingly, we do not consolidate our non-controlling interest in Logan JV. Logan JV is capitalized with equity contributions which are generally called from its members, on a pro-rata basis based on their equity commitments, as transactions are completed. Any decision by the Logan JV to call down on capital commitments requires the explicit authorization of us, coupled with that of Perspecta, and we may withhold such authorization for any reason in our sole discretion. As ofJune 30, 2020 andDecember 31, 2019 , Logan JV had the following commitments, contributions and unfunded commitments from its members (in millions). As of June 30, 2020 Total Contributed Return of Capital Unfunded Member Commitments Capital (not recallable) Commitments THL Credit, Inc.$ 200.0 $ 92.6 $ 8.0$ 99.4 Perspecta Trident LLC 50.0 23.2 2.0$ 24.8 Total Investments$ 250.0 $ 115.8 $ 10.0$ 124.2 74
--------------------------------------------------------------------------------
As of December 31, 2019 Return of Total Contributed Capital (not Unfunded Member Commitments Capital recallable) Commitments THL Credit, Inc.$ 200.0 $ 97.4 $ 3.2$ 99.4 Perspecta Trident LLC 50.0 24.4 0.8$ 24.8 Total Investments$ 250.0 $ 121.8 $ 4.0$ 124.2 Logan JV has a senior credit facility, or the Logan JV Credit Facility, with Deutsche Bank AG and other banks. As ofJune 30, 2020 andDecember 31, 2019 , the Logan JV Credit Facility had$275.0 million of commitments subject to leverage and borrowing base restrictions with an interest rate of three month LIBOR (with no LIBOR floor) plus 2.20%. The final maturity date of the Logan JV Credit Facility isJanuary 12, 2023 with the revolving loan period ending onJanuary 12, 2021 . As ofJune 30, 2020 andDecember 31, 2019 , Logan JV had$165.6 million and$236.1 million of outstanding borrowings under the credit facility, respectively. AtJune 30, 2020 , the effective interest rate on the Logan JV Credit Facility was 3.46% per annum. As ofJune 30, 2020 andDecember 31, 2019 , Logan JV had total investments at fair value of$229.7 million and$332.2 million , respectively. As ofJune 30, 2020 andDecember 31, 2019 , Logan JV's portfolio was comprised of senior secured first lien and second lien loans to 100 and 131 different borrowers, respectively. As ofJune 30, 2020 , there is one loan on non-accrual status with an amortized cost basis and fair value of$2.3 million $1.2 million , respectively. As ofDecember 31, 2019 , there were three loans from two issuers on non-accrual status with an amortized cost and fair value of$5.3 million and$2.2 million , respectively. As ofJune 30, 2020 andDecember 31, 2019 , Logan JV had unfunded commitments to fund revolver and delayed draw loans to its portfolio companies totaling$1.8 million and$3.9 million , respectively. The portfolio companies in Logan JV's portfolio are in industries similar to those in which we may invest directly.
Below is a summary of Logan JV's portfolio, followed by a listing of the
individual loans in Logan JV's portfolio as of
As of As of December June 30, 31, 2020 2019 First lien secured debt, at par$ 250,153 $
338,439
Second lien debt, at par 7,811
8,529
Total debt investments, at par$ 257,964 $
346,968
Weighted average yield on first lien secured loans (1) 5.8 % 6.6 % Weighted average yield on second lien loans (1) 8.9 % 9.7 % Weighted average yield on all loans (1) 5.9 % 6.7 % Number of borrowers in Logan JV 100
131
Largest loan to a single borrower (2)$ 5,000 $
5,000
Total of five largest loans to borrowers (2)$ 24,787 $ 24,906
(1) Weighted average yield at their current cost.
(2) At current principal amount.
The weighted average yield of Logan JV's debt investments is not the same as a return on Logan JV investment for our stockholders but, rather, relates to a portion of our investment portfolio and is calculated before the payment of our expenses. The weighted average yield was computed using the effective interest rates as ofJune 30, 2020 andDecember 31, 2019 , respectively, but excluding the effective rates on investments on non-accrual status, if any. There can be no assurance that the weighted average yield will remain at its current level. 75 -------------------------------------------------------------------------------- For the three and six months endedJune 30, 2020 , our share of income from distributions declared related to ourLogan JV LLC equity interest was$1.6 million and$3.9 million , respectively, which amounts are included in dividend income from controlled investments in the Consolidated Statement of Operations and reduction of cost basis on the Consolidated Statement of Assets and Liabilities. For the three and six months endedJune 30, 2019 , our share of income from distributions declared related to ourLogan JV LLC equity interest was$2.6 million and$5.2 million , respectively, which amounts are included in dividend income and realized gains from controlled investments in the Consolidated Statements of Operations. As ofJune 30, 2020 andDecember 31, 2019 ,$1.8 million and$2.6 million , respectively, of income related to the Logan JV was included in interest, dividends and fees receivable on the Consolidated Statements of Assets and Liabilities. As ofJune 30, 2020 , the distributions declared and earned of$8.6 million for the twelve months endedJune 30, 2020 , represented a dividend yield to the Company of 9.0% based upon average capital invested. As ofDecember 31, 2019 , distributions declared and earned of$9.8 million for the twelve months endedDecember 31, 2019 , represented a dividend yield to the Company of 10.5% based upon average capital invested. As ofJune 30, 2020 andDecember 31, 2019 ,$0.3 million and$0.3 million , respectively, of return of capital associated with distributions declared was included in the Distributions receivable on our Consolidated Statements of Assets and Liabilities. We expect the dividend yield to fluctuate as a result of the timing of additional capital invested, the changes in asset yields in the underlying portfolio and the overall performance of the Logan JV investment portfolio. 76
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of June 30, 2020 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (10) Industry (1) Date Date Principal Cost Value (2) Senior Secured First Lien Term Loans Australia Ticketek Pty Ltd Services: Consumer 4.75% (LIBOR 11/22/2019 11/26/2026 1,496$ 1,482 $ 1,309 +4%) Total Australia$ 1,482 $ 1,309 Canada Avison Young Canada Services: Business 6.45% (LIBOR 03/07/2019
+5%)
PNI Canada Acquireco
10/31/2025 1,653 1,647 1,587 Corp +4.5%) Total Canada$ 5,526 $ 5,229 Germany Rhodia Acetow Consumer goods: 7.42% (LIBOR 04/21/2017 05/31/2023 970$ 963 $ 834 Non-Durable +5.5%) VAC Germany Holding Metals & Mining 5.45% (LIBOR 02/26/2018 02/26/2025 2,933 2,923 2,126 GmbH +4%) Total Germany$ 3,886 $ 2,960 Luxembourg Connect Finco SARL Telecommunications 5.5% (LIBOR 09/23/2019
+4.5%)
Travelport Finance Services: Consumer 6.07% (LIBOR
05/30/2026 2,978 2,927 1,986 +5%) Total Luxembourg$ 4,329 $ 3,335 United Kingdom Auxey Bidco Ltd. Services: Consumer 6.06% (LIBOR 08/07/2018 06/16/2025 5,000$ 4,851 $ 3,937 +5%) EG Group Retail 5.07% (LIBOR 03/23/2018 02/07/2025 2,802 2,793 2,639 +4%) Total United Kingdom$ 7,644 $ 6,576 United States of America 1A Smart Start LLC Services: Consumer 5.57% (LIBOR 08/28/2015
+4.5%)
08/10/2024 3,890 3,879 3,559 Printing & +3.75%) Publishing A10 Capital, LLC Banking, Finance, 7.5% (LIBOR 04/25/2018 05/01/2023 5,000 4,971 4,750 Insurance & Real +6.5%) Estate
Achilles Acquisition Banking, Finance, 4.19% (LIBOR
10/03/2025 3,950 3,943 3,779 LLC Insurance & Real +4%) Estate Acproducts Inc Construction & 7.5% (LIBOR 02/14/2020 08/13/2025 497 506 489 Building +6.5%) Advanced Integration Aerospace & Defense 5.75% (LIBOR 07/15/2016 04/03/2023 1,925 1,916 1,608 Technology LP +4.75%)
Advisor Group Holdings Banking, Finance, 5.18% (LIBOR
07/31/2026 3,198 3,180 2,982 Inc Insurance & Real +5%) Estate
AG Parent Holdings LLC
07/31/2026 2,653 2,630 2,615 +5%) AgroFresh Inc. Chemicals, Plastics 5.75% (LIBOR 12/01/2015 07/31/2021 1,905 1,902 1,870 & Rubber +4.75%) Alcami Carolinas Corp Healthcare & 5.84% (LIBOR 07/09/2018 07/06/2025 3,930 3,916 3,242 Pharmaceuticals +4.25%) Alchemy US Holdco 1 Chemicals, Plastics 5.69% (LIBOR 10/01/2018 10/10/2025 1,925 1,903 1,814 LLC & Rubber +5.5%) Allen Media LLC Media: Broadcasting 5.82% (LIBOR 02/06/2020 02/05/2027 2,992 2,978 2,867 & Subscription +5.5%) AMCP Clean Acquisition Wholesale 5.32% (LIBOR 07/10/2018 07/10/2025 2,371 2,362 1,660 Co LLC +4.25%) 77
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of June 30, 2020 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (10) Industry (1) Date Date Principal Cost Value (2) AMCP Clean Acquisition Wholesale 5.32% (LIBOR 07/10/2018 07/10/2025 574 572 402 Co LLC +4.25%) Ansira Holdings, Inc. Media: Diversified & 7.52% (LIBOR 04/17/2018 12/20/2022 609 607 456 Production +6.5%) Ansira Holdings, Inc. Media: Diversified & 7.5% (LIBOR 12/20/2016
12/20/2022 1,828 1,818 1,371 Production +6.5%) AP Gaming I LLC Hotel, Gaming & 4.95% (LIBOR 06/06/2016 02/15/2024 2,426 2,422 2,133 Leisure +3.5%) APC Aftermarket (3) Automotive 10% (LIBOR 06/02/2020 09/30/2020 67 39 39 +0%) APC Aftermarket Automotive 6.72% (LIBOR 11/11/2019 05/09/2025 185 144 122 +5%) APC Aftermarket Automotive 6.72% (LIBOR 11/12/2019 05/10/2024 328 245 28 +5%)
APFS Staffing Holdings Services: Consumer 4.93% (LIBOR
04/15/2026 1,980 1,947 1,926 Inc +4.75%) AQA Acquisition High Tech Industries 5.7% (LIBOR 10/01/2018 05/24/2023 1,965 1,965 1,915 Holding, Inc. +4.25%) Ascend Performance Chemicals, Plastics & 6.7% (LIBOR 08/16/2019 08/27/2026 875 860 861 Materials Operations Rubber +5.25%) LLC
BCP Qualtek Merger Sub Telecommunications 7.25% (LIBOR
07/18/2025 3,825 3,770 3,468 LLC +6.25%) Brand Energy & Energy: Oil & Gas 5.7% (LIBOR 06/16/2017 06/21/2024 2,910 2,893 2,675 Infrastructure +4.25%)Services, Inc. California Cryobank Healthcare & 5.45% (LIBOR 08/03/2018 08/06/2025 3,152 3,141 2,947 LLC Pharmaceuticals +4%)
12/18/2025 1,970 1,892 1,888 +4.5%)
Canister
12/21/2026 1,995 1,977 1,925 Group Inc Paper +4.75%) CC Amulet Healthcare & 5.75% (LIBOR 06/18/2018 04/30/2024 284 283 257 Intermediate, LLC Pharmaceuticals +4.75%) CC Amulet Healthcare & 5.75% (LIBOR 05/01/2020 04/30/2024 1,254 554 435 Intermediate, LLC (4) Pharmaceuticals +4.75%) CC Amulet Healthcare & 5.75% (LIBOR 06/18/2018 04/30/2024 3,392 3,370 3,070 Intermediate, LLC Pharmaceuticals +4.75%) Clarity Telecom, LLC Telecommunications 4.43% (LIBOR 06/27/2019 08/31/2026 786 779 753 +4.25%) Clear Balance Banking, Finance, 7.2% (LIBOR 07/07/2015 10/05/2023 4,759 4,747 4,616 Holdings, LLC Insurance & Real +5.75%) Estate
07/07/2024 1,895 1,890 1,856 Merger Sub Inc Tobacco +3.75%) CT Technologies Healthcare & 5.7% (LIBOR 02/11/2015 12/01/2021 1,891 1,893 1,759 Intermediate Holdings, Pharmaceuticals +4.25%) Inc Discovery Practice Healthcare & 5.5% (LIBOR 07/22/2019 06/15/2024 4,950 4,930 4,429 Management, Inc. Pharmaceuticals +4.5%) Drilling Info Inc. High Tech Industries 4.43% (LIBOR 07/27/2018 07/30/2025 4,421 4,405 4,055 +4.25%) DXP Enterprises, Inc. Wholesale 5.75% (LIBOR 08/16/2017 08/29/2023 1,369 1,362 1,303 +4.75%) E2open, LLC Transportation: Cargo 6.75% (LIBOR 06/21/2019 11/26/2024 4,963 4,921 4,937 +5.75%) Eliassen Group, LLC Services: Business 4.68% (LIBOR 10/19/2018 11/05/2024 4,632 4,614 4,377 +4.5%) Empower Payments Services: Business 5.7% (LIBOR 10/05/2018 10/05/2025 3,940 3,932 3,743 Acquisition +4.25%) Evo Payments Banking, Finance, 3.44% (LIBOR 12/08/2016 12/22/2023 2,555 2,542 2,494 International, LLC Insurance & Real +3.25%) Estate Gold Standard Baking, Wholesale 7.5% (LIBOR 05/19/2015 07/23/2022 2,577 2,320 1,160 Inc. (11) +6.5%)
Golden West Packaging Containers, Packaging 5.93% (LIBOR
06/20/2023 4,573 4,559 4,253 Group LLC & Glass +5.75%) Granite Holdings US Capital Equipment 6.32% (LIBOR 09/25/2019 09/30/2026 2,911 2,833 2,562 Acquisition Co +5.25%)
Great Dane Merger Sub
05/21/2025 2,940 2,930 2,822 Inc +3.5%) Gruden Acquisition Transportation: Cargo 6.95% (LIBOR 06/21/2017 08/18/2022 1,939 1,919 1,806 Inc. +5.5%) Hoffman Southwest Environmental 5.95% (LIBOR 05/16/2019 08/14/2023 1,610 1,598 1,513 Corporation Industries +4.5%) Hornblower Sub LLC Hotel, Gaming & 5.95% (LIBOR 03/08/2019 04/28/2025 1,771 1,764 1,430 Leisure +4.5%) Institutional Services: Business 5.95% (LIBOR 03/04/2019 02/26/2026 1,975 1,959 1,936
Shareholder Services, +4.5%) Inc. International Textile Consumer goods: 6.43% (LIBOR 04/20/2018 04/19/2024 950 947 546 Group Inc Durable +5%) Isagenix International Services: Consumer 6.75% (LIBOR 04/26/2018
06/14/2025 1,797 1,785 716 LLC +5.75%) LifeScan Global Corp Healthcare & 7.45% (LIBOR 06/19/2018 10/01/2024 2,014 1,971 1,835 Pharmaceuticals +6%) LSCS Holdings Inc. Healthcare & 5.32% (LIBOR 03/09/2018 03/17/2025 463 462 438 Pharmaceuticals +4.25%) LSCS Holdings Inc. Healthcare & 5.32% (LIBOR 03/09/2018 03/17/2025 1,796 1,789 1,697 Pharmaceuticals +4.25%)
Merrill Communications Media: Advertising, 6.2% (LIBOR
09/25/2026 1,990 1,972 1,960 LLC Printing & Publishing +5%)
Miller's Ale House Inc Hotel, Gaming & 5.97% (LIBOR
05/21/2025 2,352 2,344 1,584 Leisure +4.75%) 78
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of June 30, 2020 (dollar amounts in thousands) Type of Investment/ Initial Portfolio company Interest Acquisition Maturity Amortized Fair (10) Industry Rate (1) Date Date Principal Cost Value (2) MRI SOFTWARE LLC (5) Construction & 6.5% (LIBOR 01/31/2020 02/10/2026 104 - (4 ) Building +5.5%) MRI Software LLC Construction & 6.57% (LIBOR 01/31/2020 02/10/2026 1,392 1,386 1,340 Building +5.5%) New Constellis Aerospace & Defense 8.5% (LIBOR 03/27/2020 03/27/2024 331 306 290 Borrower LLC +7.5%)
New Insight Holdings Services: Business 6.5% (LIBOR
1,888 1,811 Inc +5.5%) NextCare, Inc. (6) Healthcare & 5.5% (LIBOR 02/13/2018 06/30/2024 630 (4 ) (88 ) (9) Pharmaceuticals +4.5%) NextCare, Inc. Healthcare & 5.5% (LIBOR 02/13/2018 06/30/2024 3,797 3,773 3,266 Pharmaceuticals +4.5%) Northern Star Utilities: Electric 5.57% (LIBOR 03/28/2018 03/28/2025 4,154 4,139 3,843 Holdings Inc. +4.5%)
2,905 2,750 LLC Insurance & Real +5.25%) Estate OB Hospitalist Group Healthcare & 5.24% (LIBOR 08/08/2017 08/01/2024 2,192 2,185 2,126 Inc Pharmaceuticals +4%)
Odyssey Logistics & Transportation: 5.07% (LIBOR
1,934 1,783 Technology Cargo +4%) Corporation Orion Business High Tech Industries 5.96% (LIBOR 10/18/2018 10/19/2024 557 553 535 Innovations +4.5%) Orion Business High Tech Industries 5.96% (LIBOR 03/04/2019 10/21/2024 823 817 790 Innovations +4.5%) Orion Business High Tech Industries 5.96% (LIBOR 10/18/2018 10/19/2024 1,906 1,893 1,830 Innovations +4.5%) OSM MSO, LLC Healthcare & 6.45% (LIBOR 10/16/2018 08/09/2023 3,878 3,853 3,296 Pharmaceuticals +5%) Output Services Group Services: Business 5.5% (LIBOR 03/26/2018 03/21/2024 4,401 4,386 3,198 Inc +4.5%) Parts Town Beverage, Food & 6.95% (LIBOR 11/07/2019 10/15/2025 995 991 896 Tobacco +5.5%)
3,428 3,352 Cargo +5.25%) PH Beauty Holdings Containers, 6.07% (LIBOR 10/04/2018 09/28/2025 2,948 2,925 2,358 III, Inc. Packaging & Glass +5%) Pivotal Payments Services: Business 6% (LIBOR 09/27/2018 09/29/2025 3,719 3,698 3,692 +5%) PLH Group Inc Energy: Oil & Gas 6.47% (LIBOR 08/01/2018 07/25/2023 3,778 3,720 3,212 +6%)
1,967 1,834 LLC Tobacco +5.5%) Premise Health Healthcare & 3.8% (LIBOR 08/14/2018 07/10/2025 71 - (3 ) Holding Corp (7) (9) Pharmaceuticals +3.5%) Premise Health Healthcare & 4.95% (LIBOR 08/14/2018 07/10/2025 885 881 849 Holding Corp Pharmaceuticals +3.5%) Project Leopard High Tech Industries 5.95% (LIBOR 10/06/2017 07/07/2023 1,702 1,700 1,664 Holdings Inc +4.5%) PSC Industrial Chemicals, Plastics 4.98% (LIBOR 10/05/2017 10/11/2024 1,950 1,938 1,761 Outsourcing, LP & Rubber +3.75%) Pure Fishing Inc Consumer goods: 4.67% (LIBOR 12/20/2018 11/30/2025 1,185 1,147 975 Non-Durable +4.5%)
Quidditch Acquisition Beverage, Food & 8.45% (LIBOR
998 985 892 Inc Tobacco +7%)
1,996 1,907 Printing & +2.5%) Publishing Silverback Merger Sub High Tech Industries 4.5% (LIBOR 08/11/2017 08/21/2024 1,167 1,165 1,011 Inc +3.5%) SoClean, Inc Healthcare & 7.43% (LIBOR 02/13/2018 12/20/2022 1,839 1,829 1,775 Pharmaceuticals +6%) SoClean, Inc Healthcare & 7.43% (LIBOR 02/13/2018 12/20/2022 229 228 221 Pharmaceuticals +6%) SoClean, Inc Healthcare & 7.43% (LIBOR 02/13/2018 12/20/2022 2,679 2,664 2,585 Pharmaceuticals +6%) Starfish- V Merger High Tech Industries 7% (LIBOR 11/06/2019 08/16/2024 995 925 971 Sub Inc +6%)
Starfish- V Merger
1,209 1,125Sub Inc +6.25%)
2,158 2,130 +5.25%) Titan Sub LLC Aerospace & Defense 5.18% (LIBOR 09/19/2019 09/21/2026 2,239 2,219 2,172 +5%)
2,161 2,046 Cargo +3.75%) Unified Physician Healthcare & 6.2% (LIBOR 12/12/2019 11/27/2023 2,363 2,343 2,269
4.68% (LIBOR 10/24/2019 11/20/2026 2,926 2,913 2,736 Pharmaceuticals +4.5%) US Shipping Corp Utilities: Oil & Gas 5.25% (LIBOR 03/09/2016 06/26/2021 206 204 179 +4.25%) W3 Topco LLC Energy: Oil & Gas 7% (LIBOR 08/13/2019 08/16/2025 1,925 1,810 1,679 +6%) Women's Care Florida Healthcare & 5.5% (LIBOR 08/18/2017 09/29/2023 4,875 4,859 4,387 LLP Pharmaceuticals +4.5%) Yak Access LLC Energy: Oil & Gas 6.45% (LIBOR 06/29/2018 07/11/2025 2,813 2,751 2,278 +5%) Zenith American Services: Business 6.7% (LIBOR 03/11/2019 12/13/2024 3,928 3,920 3,771 Holding, Inc. +5.25%) 79
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of June 30, 2020 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (10) Industry (1) Date Date Principal Cost Value (2) Zenith American Services: Business 6.7% (LIBOR 03/11/2019 12/13/2024 496 191 175 Holding, Inc. (8) +5.25%) Total United States of$ 222,962 $ 203,379 America Total Senior Secured$ 245,829 $ 222,788 First Lien Term Loans Second Lien Term Loans United States of America AQA Acquisition High Tech Industries 9.45% (LIBOR 10/01/2018 05/24/2024 1,000$ 993 $ 975 Holding, Inc. +8%)
06/02/2025 2,000 1,987 1,880 Inc Durable +7.5%) Gruden Acquisition Transportation: 9.95% (LIBOR 07/31/2015 08/18/2023 500 490 446 Inc. Cargo +8.5%) Midwest Physician Healthcare & 7.75% (LIBOR 08/11/2017 08/15/2025 979 973 827 Administrative Pharmaceuticals +7%)Services, LLC New Constellis Aerospace & Defense 12% (LIBOR 03/27/2020 03/27/2025 282 47 51 Borrower LLC +11%) Park Place High Tech Industries 9% (LIBOR 03/22/2018 03/29/2026 700 695 662 Technologies, LLC +8%) TKC Holdings Inc Services: Business 9% (LIBOR 01/31/2017
+8%)
Wash Multifamily Services: Consumer 8% (LIBOR
05/15/2023 425 424 379 Acquisition Inc. +7%)
Wash Multifamily Services: Consumer 8% (LIBOR
05/12/2023 75 74 66 Acquisition Inc. +7%) Total United States of$ 7,525 $ 6,859 America Total Second Lien Term$ 7,525 $ 6,859 Loans Equity Investments United States of America New Constellis Aerospace & Defense 03/27/2020 20 204 7 Borrower LLC Total United States of$ 204 $ 7 America Total Equity$ 204 $ 7 Investments Total Investments$ 253,558 $ 229,654 Cash equivalents Dreyfus Government 7,309 7,309Cash Management Fund Other cash accounts 400 400 Total Cash equivalents$ 7,709 $ 7,709
(1) Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR
rates, at the borrower's option. LIBOR rates are subject to interest rate
floors. As of
rates were 0.16%, 0.23%, 0.30% and 0.37%, respectively.
(2) Represents fair value in accordance with ASC Topic 820.
80 --------------------------------------------------------------------------------
Logan JV Loan Portfolio as ofJune 30, 2020 (dollar amounts in thousands)
(3) Represents a delayed draw commitment of
unfunded as of
have a lower rate than the contractual fully funded rate. Issuer does not pay
unfunded commitment fee on delayed draw term loan and/or revolving loan
facilities.
(4) Represents a delayed draw commitment of
unfunded as of
have a lower rate than the contractual fully funded rate. Issuer pays 1.00%
unfunded commitment fee on delayed draw term loan and/or revolving loan
facilities.
(5) Represents a delayed draw commitment of
loan and/or revolving loan facilities.
(6) Represents a delayed draw commitment of
loan and/or revolving loan facilities.
(7) Represents a delayed draw commitment of
loan and/or revolving loan facilities.
(8) Represents a delayed draw commitment of
unfunded as of
have a lower rate than the contractual fully funded rate. Issuer pays 1.00%
unfunded commitment fee on delayed draw term loan and/or revolving loan
facilities.
(9) Unfunded amount will start to accrue interest when the position is funded.
Three Month Libor as of
possible projected interest rate.
(10) All investments are pledged as collateral for loans payable unless otherwise
noted.
(11) Loan was on non-accrual as of
81
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of December 31, 2019 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (11) Industry (1) Date Date Principal Cost Value (2) Senior Secured First Lien Term Loans Australia Ticketek Pty Ltd (9) Services: Consumer 6.16% (LIBOR 11/22/2019 11/23/2026 1,500$ 1,485 $ 1,500 +4.25%) Total Australia$ 1,485 $ 1,500 Canada
+5%) PNI Canada Acquireco High Tech Industries 6.3% (LIBOR 10/31/2018 10/31/2025 1,716 1,709 1,697 Corp +4.5%) Total Canada$ 5,602 $ 5,600 Germany Rhodia Acetow Consumer goods: 7.42% (LIBOR 04/21/2017 05/31/2023 975$ 967 $ 887 Non-Durable +5.5%) VAC Germany Holding Metals & Mining 5.94% (LIBOR 02/26/2018 3/8/2025 2,948 2,936 2,520 GmbH +4%) Total Germany$ 3,903 $ 3,407 Luxembourg Travelport Finance Services: Consumer 6.94% (LIBOR 03/18/2019 05/30/2026 2,993$ 2,937 $ 2,807 +5%) Total Luxembourg$ 2,937 $ 2,807
+5%) Connect Finco SARL (9) Telecommunications 6.41% (LIBOR 09/23/2019 12/11/2026 1,432 1,403 1,442 +4.5%) EG Group Retail 5.96% (LIBOR 03/23/2018 02/07/2025 2,816 2,806 2,811 +4%) Total United Kingdom$ 9,045 $ 9,103 United States of America 1A Smart Start, LLC Services: Consumer 6.3% (LIBOR 08/28/2015 02/21/2022 4,302$ 4,291 $ 4,302 (13) +4.5%)
3,897 3,851 Printing & +3.75%) Publishing
4,967 4,950 Insurance & Real +6.5%) Estate
Achilles Acquisition, Banking, Finance, 5.81% (LIBOR
3,962 4,017 LLC Insurance & Real +4%) Estate
Advanced Integration Aerospace & Defense 6.55% (LIBOR
1,925 1,904 Technology, LP +4.75%) Advisor Group Banking, Finance, 6.8% (LIBOR 07/31/2019 07/31/2026 1,714 1,698 1,705 Holdings, Inc. Insurance & Real +5%) Estate
2,642 2,649 LLC +5%) AgroFresh Inc. Chemicals, Plastics 6.55% (LIBOR 12/01/2015 07/31/2021 1,915 1,911 1,637 & Rubber +4.75%) Air Medical Group Healthcare & 6.05% (LIBOR 09/26/2017 03/14/2025 2,205 2,193 2,144 Holdings, Inc. Pharmaceuticals +4.25%) Alcami Carolinas Corp Healthcare & 6.05% (LIBOR 07/09/2018 07/06/2025 3,950 3,934 3,634 Pharmaceuticals +4.25%)
Alchemy US Holdco 1, Chemicals, Plastics 7.29% (LIBOR
1,926 1,921 LLC & Rubber +5.5%) AMCP Clean Acquisition Wholesale 6.19% (LIBOR 07/10/2018 6/16/2025 2,383 2,374 2,329 Co, LLC +4.25%) AMCP Clean Acquisition Wholesale 6.19% (LIBOR 07/10/2018 6/16/2025 577 574 564 Co, LLC +4.25%) American Sportsman Retail 6.8% (LIBOR 11/22/2016 09/25/2024 3,910 3,874 3,906 Holdings Co +5%)
609 401 341 (3) Production +5.75%) Ansira Holdings, Inc. Media: Diversified & 7.55% (LIBOR 12/20/2016 12/20/2022 1,831 1,822 1,648 (13) Production +5.75%) 82
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of December 31, 2019 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (11) Industry (1) Date Date Principal Cost Value (2) AP Gaming I, LLC Hotel, Gaming & 5.3% (LIBOR 06/06/2016 02/15/2024 2,438 2,434 2,450 Leisure +3.5%) APC Aftermarket Automotive 6.91% (LIBOR 11/11/2019 05/09/2025 184 140 173 +5%) APC Aftermarket Automotive 6.9% (LIBOR 11/12/2019 05/10/2024 329 237 158 +5%) APFS Staffing Holdings Services: Consumer 6.79% (LIBOR 04/04/2019 4/15/2026 1,990 1,954 1,990 Inc . +5%) AQA Acquisition High Tech Industries 6.19% (LIBOR 10/01/2018 05/24/2023 1,975 1,975 1,965 Holdings, Inc. +4.25%) Ascend Performance Chemicals, Plastics & 7.19% (LIBOR 08/16/2019 08/27/2026 1,147 1,125 1,159 Materials Operations, Rubber +5.25%) LLC Avaya, Inc. Telecommunications 5.99% (LIBOR 11/09/2017 12/15/2024 2,345 2,327 2,308 +4.25%) Axiom Global, Inc. Services: Business 6.85% (LIBOR 09/25/2019 10/01/2026 3,000 2,971 2,989 +4.75%) Barbri, Inc. Media: Diversified & 6.46% (LIBOR 12/01/2017 12/01/2023 3,122 3,111 3,075 Production +4.25%) BCP Qualtek Merger Sub, Telecommunications 8.18% (LIBOR 07/16/2018 07/18/2025 3,875 3,813 3,788 LLC +6.25%) Big Ass Fans, LLC Capital Equipment 5.69% (LIBOR 11/07/2017 05/21/2024 2,450 2,441 2,463 +3.75%) Big River Steel, LLC Metals & Mining 6.94% (LIBOR 08/15/2017 08/23/2023 1,955 1,943 1,959 +5%) BI-LO, LLC Retail 9.89% (LIBOR 05/15/2018 05/31/2024 1,478 1,434 1,370 +8%) Brand Energy & Energy: Oil & Gas 6.12% (LIBOR 06/16/2017 06/21/2024 2,925 2,906 2,921 Infrastructure +4.25%) Services, Inc. California Cryobank LLC Healthcare & 5.94% (LIBOR 08/03/2018 08/06/2025 3,168 3,156 3,149 Pharmaceuticals +4%) Cambium Learning Inc. Services: Consumer 6.3% (LIBOR 12/18/2018 12/18/2025 1,980 1,894 1,921 +4.5%) Canister International Forest Products & 6.51% (LIBOR 12/18/2019 12/21/2026 2,000 1,980 2,009 Group, Inc. Paper +4.75%) CC Amulet Intermediate, Healthcare & 6.66% (LIBOR 06/18/2018 04/30/2020 1,538 (3 ) (4 ) LLC (4) (10) Pharmaceuticals +4.75%) CC Amulet Intermediate, Healthcare & 6.55% (LIBOR 06/18/2018 04/30/2024 3,410 3,384 3,401 LLC (13) Pharmaceuticals +4.75%) Cengage Learning Media: Advertising, 6.05% (LIBOR 11/07/2019 06/07/2023 2,992 2,774 2,869 Acquisitions, Inc. Printing & Publishing +4.25%) Clarity Telecom, LLC Telecommunications 6.3% (LIBOR 06/27/2019 08/31/2026 3,990 3,952 4,020 +4.5%) Clarkson Eyecare, LLC Healthcare & 8.05% (LIBOR 08/21/2019 04/02/2021 2,095 2,060 2,063 Pharmaceuticals +6.25%) Clarkson Eyecare, LLC Healthcare & 8.05% (LIBOR 08/21/2019 04/02/2021 1,397 1,374 1,376 Pharmaceuticals +6.25%) Clear Balance Holdings, Banking, Finance, 7.69% (LIBOR 07/07/2015 10/05/2023 4,783 4,769 4,783 LLC (13) Insurance & Real +5.75%) Estate Commercial Barge Line Transportation: Cargo 10.68% (LIBOR 11/06/2015 11/12/2020 1,238 1,227 644 Co +8.75%) Constellis Holdings, Aerospace & Defense 11.74% (LIBOR 12/16/2019 12/16/2020 364 364 364 LLC (13) +10%) Constellis Holdings, Aerospace & Defense 6.93% (LIBOR 04/18/2017 04/21/2024 1,955 1,943 831 LLC (12) +5%) Conyers Park Parent Beverage, Food & 5.73% (LIBOR 06/21/2017 07/07/2024 1,955 1,949 1,977 Merger Sub, Inc. Tobacco +3.75%) CT Technologies Healthcare & 6.05% (LIBOR 02/11/2015 12/01/2021 1,900 1,903 1,798 Intermediate Holdings, Pharmaceuticals +4.25%) Inc. Deerfield Holdings Corp Banking, Finance, 5.05% (LIBOR 12/06/2017 02/13/2025 246 245 245 Insurance & Real +3.25%) Estate Discovery Practice Healthcare & 6.3% (LIBOR 07/22/2019 06/15/2024 4,975 4,952 4,913 Management, Inc. (13) Pharmaceuticals +4.5%) Drilling Info, Inc. High Tech Industries 6.05% (LIBOR 07/27/2018 07/30/2025 4,443 4,425 4,421 +4.25%) DXP Enterprises, Inc. Wholesale 6.55% (LIBOR 08/16/2017 08/29/2023 1,466 1,457 1,472 +4.75%) E2open, LLC (13) Transportation: Cargo 7.66% (LIBOR 06/21/2019 11/26/2024 4,988 4,942 4,938 +5.75%) Eliassen Group, LLC Services: Business 6.3% (LIBOR 10/19/2018 11/05/2024 4,644 4,625 4,621 (13) +4.5%) Empower Payments Services: Business 5.94% (LIBOR 10/05/2018 10/05/2025 3,960 3,952 3,965 Acquisition +4%) Evo Payments Banking, Finance, 5.06% (LIBOR 12/08/2016 12/22/2023 2,568 2,553 2,588 International, LLC Insurance & Real +3.25%) Estate Gold Standard Baking, Wholesale 6.5% (LIBOR 05/19/2015 07/23/2022 2,528 2,391 1,239 Inc. (12) +4.5%) Golden West Packaging Containers, Packaging 7.55% (LIBOR 02/09/2018 06/20/2023 4,619 4,604 4,607 Group, LLC & Glass +5.75%) Granite Holdings US Capital Equipment 7.21% (LIBOR 09/25/2019 09/30/2026 2,926 2,841 2,941 Acquisition Co +5.25%) Great Dane Merger Sub, High Tech Industries 5.3% (LIBOR 05/02/2018 05/21/2025 2,955 2,944 2,914 Inc. +3.5%) Gruden Acquisition, Transportation: Cargo 7.44% (LIBOR 06/21/2017 08/18/2022 1,949 1,924 1,954 Inc. +5.5%) Higginbotham Insurance Banking, Finance, 5.8% (LIBOR 12/14/2017 12/19/2024 4,900 4,882 4,778 Agency, Inc. Insurance & Real +4%) Estate Hoffman Southwest Environmental 6.44% (LIBOR 05/16/2019 08/14/2023 1,610 1,596 1,594 Corporation (13) Industries +4.5%) 83
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of December 31, 2019 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (11) Industry (1) Date Date Principal Cost Value (2) Hornblower Sub, LLC Hotel, Gaming & 6.44% (LIBOR 03/08/2019 04/27/2025 1,771 1,763 1,780 Leisure +4.5%) Idera, Inc. High Tech Industries 6.3% (LIBOR 06/27/2017 06/28/2024 2,308 2,293 2,320 +4.5%) Infoblox, Inc. High Tech Industries 6.3% (LIBOR 11/03/2016 11/07/2023 2,114 2,086 2,126 +4.5%) Institutional Services: Business 6.44% (LIBOR 03/04/2019 3/5/2026 1,985 1,967 1,955 Shareholder Services, +4.5%) Inc. Intermedia Holdings, Telecommunications 7.8% (LIBOR 07/13/2018 07/11/2025 2,970 2,946 2,977 Inc. +6%) International Textile Consumer goods: 6.69% (LIBOR 04/20/2018 5/1/2024 963 959 799 Group, Inc. Durable +5%) Isagenix International, Services: Consumer 7.7% (LIBOR 04/26/2018 06/14/2025 1,849 1,834 1,329 LLC +5.75%) Liaison Services: Business 6.41% (LIBOR 12/13/2019 12/20/2026 2,500 2,494 2,506 +4.5%) LifeScan Global Corp Healthcare & 8.06% (LIBOR 06/19/2018 10/01/2024 2,093 2,043 2,004 Pharmaceuticals +6%) LSCS Holdings, Inc. Healthcare & 6.31% (LIBOR 03/09/2018 03/17/2025 2,270 2,262 2,248 Pharmaceuticals +4.25%) MAG DS Corp. Aerospace & Defense 6.55% (LIBOR 06/01/2018 05/30/2025 2,955 2,932 2,940 +4.75%) Mavenir Systems, Inc. Telecommunications 7.91% (LIBOR 05/01/2018 5/8/2025 1,970 1,940 1,960 +6%) MDVIP, Inc. Healthcare & 6.05% (LIBOR 11/10/2017 11/14/2024 2,219 2,215 2,207 Pharmaceuticals +4.25%) Merrill Communications, Media: Advertising, 7.09% (LIBOR 09/26/2019 09/25/2026 2,000 1,981 2,020 LLC Printing & Publishing +5%) Miller's Ale House, Hotel, Gaming & 6.96% (LIBOR 05/24/2018 05/21/2025 2,364 2,355 2,163 Inc. Leisure +4.75%) Nasco Healthcare, Inc. Healthcare & 6.7% (LIBOR 07/13/2015 06/30/2021 4,443 4,437 4,443 (13) Pharmaceuticals +4.5%) National Seating & Healthcare & 7.19% (LIBOR 11/12/2019 11/16/2026 2,313 2,290 2,307 Mobility, Inc. Pharmaceuticals +5.25%) New Insight Holdings, Services: Business 7.41% (LIBOR 12/08/2017 12/20/2024 1,960 1,890 1,963 Inc. +5.5%) NextCare, Inc. (5) (10) Healthcare & 6.41% (LIBOR 02/13/2018 06/30/2024 630 (5 ) (6 ) Pharmaceuticals +4.5%) NextCare, Inc. (13) Healthcare & 6.3% (LIBOR 02/13/2018 06/30/2024 3,817 3,789 3,779 Pharmaceuticals +4.5%) Northern Star Holdings Utilities: Electric 6.56% (LIBOR 03/28/2018 3/28/2025 4,176 4,160 4,113 Inc. +4.5%) Oak Point Partners, LLC Banking, Finance, 6.99% (LIBOR 09/13/2017 09/13/2023 2,925 2,902 2,896 (13) Insurance & Real +5.25%) Estate OB Hospitalist Group, Healthcare & 5.95% (LIBOR 08/08/2017 08/01/2024 2,192 2,184 2,170 Inc. Pharmaceuticals +4%) Odyssey Logistics & Transportation: Cargo 5.8% (LIBOR 10/06/2017 10/12/2024 1,943 1,936 1,921 Technology Corporation +4%) Orion Business High Tech Industries 6.45% (LIBOR 03/04/2019 10/21/2024 827 820 823 Innovations (13) +4.5%) Orion Business High Tech Industries 6.45% (LIBOR 10/18/2018 10/19/2024 2,476 2,457 2,464 Innovations (13) +4.5%) OSM MSO, LLC (13) Healthcare & 6.94% (LIBOR 10/16/2018 08/09/2023 3,898 3,869 3,742 Pharmaceuticals +5%) Output Services Group, Services: Business 6.3% (LIBOR 03/26/2018 03/21/2024 4,425 4,407 3,749 Inc. +4.5%) Park Place High Tech Industries 5.8% (LIBOR 03/22/2018 03/22/2025 2,305 2,296 2,297 Technologies, LLC +4%) Parts Town Beverage, Food & 7.45% (LIBOR 11/07/2019 10/15/2025 1,000 995 998 Tobacco +5.5%) Patriot Rail Co, LLC Transportation: Cargo 7.22% (LIBOR 10/15/2019 10/11/2026 3,500 3,432 3,526 +5.25%) PH Beauty Holdings III, Containers, Packaging 6.8% (LIBOR 10/04/2018 09/28/2025 2,963 2,938 2,829 Inc. & Glass +5%) Pivotal Payments Services: Business 6.8% (LIBOR 09/27/2018 09/29/2025 3,719 3,696 3,747 +5%) PLH Group, Inc. Energy: Oil & Gas 7.89% (LIBOR 08/01/2018 07/25/2023 3,910 3,839 3,787 +6%) Polar US Borrower Chemicals, Plastics & 6.79% (LIBOR 08/21/2018 10/15/2025 2,970 2,871 2,962 Rubber +4.75%) Portillo's Holdings, Beverage, Food & 7.44% (LIBOR 11/27/2019 08/02/2024 1,995 1,975 1,995 LLC Tobacco +5.5%) Premise Health Holding Healthcare & 5.41% (LIBOR 08/14/2018 07/10/2025 71 - (1 ) Corp (6) (10) Pharmaceuticals +3.5%) Premise Health Holding Healthcare & 5.44% (LIBOR 08/14/2018 07/10/2025 889 886 880 Corp Pharmaceuticals +3.5%) Project Leopard High Tech Industries 6.3% (LIBOR 06/21/2017 07/07/2023 1,711 1,708 1,726 Holdings, Inc. +4.5%) PSC Industrial Chemicals, Plastics & 5.49% (LIBOR 10/05/2017 10/11/2024 1,960 1,947 1,952 Outsourcing, LP Rubber +3.75%) Pure Fishing, Inc. Consumer goods: 6.3% (LIBOR 12/20/2018 11/30/2025 1,191 1,150 1,116 Non-Durable +4.5%) QuickBase, Inc. Services: Business 5.8% (LIBOR 03/29/2019 04/03/2026 2,090 2,080 2,087 +4%) Quidditch Acquisition Beverage, Food & 8.8% (LIBOR 03/16/2018 03/21/2025 1,003 988 1,013 Inc. Tobacco +7%) Red Ventures, LLC Media: Advertising, 4.8% (LIBOR 10/18/2017 11/08/2024 2,018 2,004 2,035 Printing & Publishing +3%) 84
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of December 31, 2019 (dollar amounts in thousands) Initial Type of Investment/ Interest Rate Acquisition Maturity Amortized Fair Portfolio company (11) Industry (1) Date
Date Principal Cost Value (2)
+4.25%)
Silverback Merger Sub,
+3.5%) SMS Systems High Tech Industries 6.8% (LIBOR
+5%)
Inc.
SoClean, Inc. (13) Healthcare & 7.91% (LIBOR
Pharmaceuticals +6%)
Starfish- V Merger
+6.25%)
Starfish- V Merger
999 921 955 Sub, Inc. +6%)
+5.25%)
+4%) Titan Sub, LLC Aerospace & Defense 6.8% (LIBOR
+5%) TOMS Shoes, LLC (13) Retail 7.29% (LIBOR 12/20/2019 09/30/2025 310 310 310 +5.5%) TOMS Shoes, LLC (13) Retail 6.96% (LIBOR 12/27/2019 12/31/2025 655 655 622 +5%)
Cargo +3.75%)
Uber Technologies, Services: Consumer 5.74% (LIBOR
+4%) Unified Physician Healthcare & 6.24% (LIBOR
+4.5%) Upstream Newco, Inc. Healthcare & 6.3% (LIBOR
Pharmaceuticals +4.5%)
206 203 182 +4.25%) Utility One Source Construction & 7.3% (LIBOR 04/07/2017 04/18/2023 975 970 985 L.P. Building +5.5%) Vertiv Group Capital Equipment 5.93% (LIBOR 09/30/2016 11/30/2023 1,504 1,478 1,504 Corporation +4%) Vistage Worldwide, Services: Consumer 5.8% (LIBOR 02/06/2018 02/10/2025 2,476 2,471 2,464 Inc. +4%) W3 Topco LLC Energy: Oil & Gas 7.9% (LIBOR 08/13/2019 08/16/2025 1,975 1,845 1,876 +6%)
Weight Watchers Services: Consumer 6.72% (LIBOR
+4.75%) Women's Care Florida, Healthcare & 6.3% (LIBOR
Pharmaceuticals +4.5%) Wrench Group, LLC Construction & 6.19% (LIBOR
Building +4.25%) Wrench Group, LLC (7) Construction & 4.25% (LIBOR 04/15/2019 4/30/2026 1,042 (9 ) 3 (10) Building +2.125%)
+5%)
Zenith American Services: Business 7.19% (LIBOR
+5.25%) Zenith American Services: Business 7.19% (LIBOR 03/11/2019 12/13/2024 497 120 119 Holding, Inc. (8) +5.25%) Total United States of$ 308,072 $ 302,398 America Total Senior Secured$ 331,044 $ 324,815 First Lien Term Loans Second Lien Term Loans United States of America AQA Acquisition High Tech Industries 10.09% (LIBOR 10/01/2018 05/24/2024 1,000$ 992 $ 995 Holdings, Inc. +8%)
990 105 LLC (12) +9%)
Durable +7.5%)
500 489 497 Inc. Cargo +8.5%) Midwest Physician Healthcare & 8.8% (LIBOR 08/11/2017 08/15/2025 979 972 955 Administrative Pharmaceuticals +7%)Services, LLC Park Place High Tech Industries 9.8% (LIBOR 03/22/2018 03/29/2026 700 695 695 Technologies, LLC +8%) TKC Holdings, Inc. Services: Business 9.8% (LIBOR 01/31/2017 02/01/2024 1,850 1,841 1,683 +8%) 85
-------------------------------------------------------------------------------- Logan JV Loan Portfolio as of December 31, 2019 (dollar amounts in thousands) Type of Investment/ Initial Portfolio company Acquisition Maturity Amortized Fair (11) Industry Interest Rate (1) Date
Date Principal Cost Value (2)
Wash Multifamily Services: Consumer 8.8% (LIBOR +7%)
425 424 406Acquisition, Inc. Wash Multifamily Services: Consumer 8.8% (LIBOR +7%) 05/04/2015 05/12/2023 75 74 71 Acquisition, Inc. Total United States$ 8,463 $ 7,367 of America Total Second Lien$ 8,463 $ 7,367 Term Loans Equity Investments United States of America TOMS Shoes, LLC (13) Retail 12/27/2019 9 576 - Total United States$ 576 $ - of America Total Equity$ 576 $ - Investments Total Investments$ 340,083 $ 332,182 Cash equivalents Dreyfus Government 10,596 10,596Cash Management Fund Other cash accounts 964 964 Total Cash$ 11,560 $ 11,560 equivalents
(1) Variable interest rates indexed to 30-day, 60-day, 90-day or 180-day LIBOR
rates, at the borrower's option. LIBOR rates are subject to interest rate
floors. As of
rates were 1.76%, 1.83%, 1.91% and 1.91%, respectively.
(2) Represents fair value in accordance with ASC Topic 820.
(3) Represents a delayed draw commitment of
unfunded as of
have a lower rate than the contractual fully funded rate. Issuer pays 1.00%
unfunded commitment fee on delayed draw term loan and/or revolving loan
facilities.
(4) Represents a delayed draw commitment of
term loan and/or revolving loan facilities.
(5) Represents a delayed draw commitment of
term loan and/or revolving loan facilities.
(6) Represents a delayed draw commitment of
term loan and/or revolving loan facilities.
(7) Represents a delayed draw commitment of
term loan and/or revolving loan facilities.
(8) Represents a delayed draw commitment of
unfunded as of
have a lower rate than the contractual fully funded rate. Issuer pays 1.00%
unfunded commitment fee on delayed draw term loan and/or revolving loan facilities. 86
--------------------------------------------------------------------------------
Logan JV Loan Portfolio as ofDecember 31, 2019 (dollar amounts in thousands)
(9) Unsettled trade that interest will start to accrue on when the trade settles.
Three month LIBOR as of
projected interest rate.
(10) Unfunded amount will start to accrue interest when the position is funded.
Three month LIBOR as of
projected interest rate.
(11) All investments are pledged as collateral for loans payable unless otherwise
noted.
(12) Loan was on non-accrual as of
(13) Investments are valued using significant unobservable inputs.
87
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Below is certain summarized financial information for Logan JV as ofJune 30, 2020 andDecember 31, 2019 and for the three and six months endedJune 30, 2020 and 2019:
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