BAIN CAPITAL SPECIALTY FINANCE, INC. The following discussion and other parts of this report contain forward-looking information that involves risks and uncertainties. The discussion and analysis contained in this section refers to our financial condition, results of operations and cash flows. The information contained in this section should be read in conjunction with the consolidated financial statements and notes thereto appearing elsewhere in this report. Please see "Forward-Looking Statements" for a discussion of the uncertainties, risks and assumptions associated with this discussion and analysis. Our actual results could differ materially from those anticipated by such forward-looking information due to factors discussed under "Forward-Looking Statements" appearing elsewhere in this report. Overview
Bain Capital Specialty Finance, Inc. (the "Company", "we", "our" and "us") is an externally managed specialty finance company focused on lending to middle market companies. We have elected to be regulated as a business development company (a "BDC") under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the "1940 Act"). We are managed byBCSF Advisors, LP (our "Advisor" or "BCSF Advisors "), a subsidiary ofBain Capital Credit, LP ("Bain Capital Credit"). Our Advisor is registered as an investment adviser with theSEC under the Investment Advisers Act of 1940, as amended (the "Advisers Act"). Our Advisor also provides the administrative services necessary for us to operate (in such capacity, our "Administrator" or "BCSF Advisors "). Since we commenced operations onOctober 13, 2016 throughMarch 31, 2022 , we have invested approximately$5,322.3 million in aggregate principal amount of debt and equity investments prior to any subsequent exits or repayments. We seek to generate current income and, to a lesser extent, capital appreciation through direct originations of secured debt, including first lien, first lien/last-out, unitranche and second lien debt, investments in strategic joint ventures, equity investments and, to a lesser extent, corporate bonds. OnNovember 19, 2018 , we closed our initial public offering (the "IPO") issuing 7,500,000 shares of our common stock at a public offering price of$20.25 per share. Shares of common stock of the Company began trading on theNew York Stock Exchange under the symbol "BCSF" onNovember 15, 2018 . Our primary focus is capitalizing on opportunities within our Senior Direct Lending strategy, which seeks to provide risk-adjusted returns and current income to our stockholders by investing primarily in middle-market companies with between$10.0 million and$150.0 million in annual earnings before interest, taxes, depreciation and amortization ("EBITDA"). However, we may, from time to time, invest in larger or smaller companies. We generally seek to retain effective voting control in respect of the loans or particular classes of securities in which we invest through maintaining affirmative voting positions or negotiating consent rights that allow us to retain a blocking position. We focus on senior investments with a first or second lien on collateral and strong structures and documentation intended to protect the lender. We may also invest in mezzanine debt and other junior securities, including common and preferred equity, on an opportunistic basis, and in secondary purchases of assets or portfolios but such investments are not the principal focus of our investment strategy. In addition, we may invest, from time to time, in distressed debt, debtor-in-possession loans, structured products, structurally subordinate loans, investments with deferred interest features, zero-coupon securities and defaulted securities. We generate revenues primarily through receipt of interest income from the investments we hold. In addition, we generate income from various loan origination and other fees, dividends on direct equity investments and capital gains on the sales of investments. The companies in which we invest use our capital for a variety of reasons, including to support organic growth, to fund changes of control, to fund acquisitions, to make capital investments and for refinancing and recapitalizations. Investments Our level of investment activity may 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 for such companies, the level of investment and capital expenditures of such companies, the general economic environment, the amount of capital we have available to us and the competitive environment for the type of investments we make. Due to the impact of COVID-19 and related measures taken to contain its spread, the future duration and breadth of the adverse impact of COVID-19 on the broader markets in which the Company invests cannot currently be accurately predicted and future investment activity of the Company will be subject to these effects and the related uncertainty. As a BDC, we may 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." Pursuant to rules adopted by theSEC , "eligible portfolio companies" include certain companies that do not have any securities listed on a national securities exchange and public companies whose securities are listed on a national securities exchange but whose market capitalization is less than$250 million . 71
As a BDC, we may also invest up to 30% of our portfolio opportunistically in
"non-qualifying" portfolio investments, such as investments in non-
Revenues
We primarily generate revenue in the form of interest income on debt investments
and distributions on equity investments and, to a lesser extent, capital gains,
if any, on equity securities that we may acquire in portfolio companies. Some of
our investments may provide for deferred interest payments or payment-in-kind
("PIK") interest. The principal amount of the debt investments and any accrued
but unpaid interest generally becomes due at the maturity date. In addition, we
may generate revenue in the form of commitment, origination, structuring or
diligence fees, fees for providing managerial assistance and consulting fees.
Loan origination fees, original issue discount and market discount or premium
are capitalized, and we accrete or amortize such amounts into or against income
over the life of the loan. We record contractual prepayment premiums on loans
and debt securities as interest income.
Our debt investment portfolio consists of primarily floating rate loans. As of
March 31, 2022 and December 31, 2021 , 96.3% and 97.8%, respectively, of our debt
investments, based on fair value, bore interest at floating rates, which may be
subject to interest rate floors. Variable-rate investments subject to a floor
generally reset periodically to the applicable floor, only if the floor exceeds
the index. Trends in base interest rates, such as LIBOR, may affect our net
investment income over the long term. In addition, our results may vary from
period to period depending on the interest rates of new investments made during
the period compared to investments that were sold or repaid during the period;
these results reflect the characteristics of the particular portfolio companies
that we invested in or exited during the period and not necessarily any trends
in our business or macroeconomic trends.
Dividend income on preferred equity investments is recorded on an accrual basis
to the extent that such amounts are payable by the portfolio company and are
expected to be collected. Dividend income on common equity investments is
recorded on the record date for private portfolio companies and on the
ex-dividend date for publicly traded portfolio companies.
Expenses
Our primary operating expenses include the payment of fees to our Advisor under
the Amended Advisory Agreement, our allocable portion of overhead expenses under
the administration agreement (the "Administration Agreement") and other
operating costs, including those described below. The Base Management Fee and
Incentive Fee compensate our Advisor for its work in identifying, evaluating,
negotiating, closing and monitoring our investments. We bear all other
out-of-pocket costs and expenses of our operations and transactions, including:
• our operational and organizational cost;
• the costs of any public offerings of our common stock and other
securities, including registration and listing fees;
• costs of calculating our net asset value (including the cost and
expenses of any third-party valuation services);
• fees and expenses payable to third parties relating to evaluating,
making and disposing of investments, including our Advisor's or its
affiliates' travel expenses, research costs and out-of-pocket fees and
expenses associated with performing due diligence and reviews of
prospective investments, monitoring our investments and, ifnecessary,
enforcing our rights;
• interest payable on debt and other borrowing costs, if any, incurred to
finance our investments;
• costs of effecting sales and repurchases of our common stock and other
securities;
• distributions on our common stock;
• transfer agent and custody fees and expenses;
• the allocated costs incurred by the Administrator in providing
managerial assistance to those portfolio companies that request
it;
• other expenses incurred by BCSF Advisors or us in connection with
administering our business, including payments made tothird-party
providers of goods or services;
72
• brokerage fees and commissions;
• federal and state registration fees;
• U.S. federal, state and local taxes;
• Independent Director fees and expenses;
• costs associated with our reporting and compliance obligations under
the 1940 Act and applicable U.S. federal and state securities laws;
• costs of any reports, proxy statements or other notices to our
stockholders, including printing costs;
• costs of holding stockholder meetings;
• our fidelity bond;
• directors' and officers' errors and omissions liability insurance, and
any other insurance premiums;
• litigation, indemnification and other non-recurring or extraordinary
expenses;
• direct costs and expenses of administration and operation, including
printing, mailing, long distance telephone, staff, audit, compliance,
tax and legal costs;
• fees and expenses associated with marketing efforts;
• dues, fees and charges of any trade association of which we are a member; and
• all other expenses reasonably incurred by us or the Administrator in
connection with administering our business.
To the extent that expenses to be borne by us are paid byBCSF Advisors , we will generally reimburseBCSF Advisors for such expenses. To the extent the Administrator outsources any of its functions, the Company will pay the fees associated with such functions on a direct basis without profit to the Administrator. We will also reimburse the Administrator for its costs and expenses and our allocable portion of overhead incurred by it in performing its obligations under the Administration Agreement, including certain rent and compensation paid to or compensatory distributions received by our officers (including our Chief Compliance Officer and Chief Financial Officer) and any of their respective staff who provide services to us, operations staff who provide services to us, internal audit staff, if any, to the extent internal audit performs a role in our Sarbanes-Oxley internal control assessment and fees paid to third-party providers for goods or services. Our allocable portion of overhead will be determined by the Administrator, which expects to use various methodologies such as allocation based on the percentage of time certain individuals devote, on an estimated basis, to our business and affairs, and will be subject to oversight by our Board of Directors (our "Board"). We incurred expenses related to the Administrator of$0.0 million and$0.0 million for the three months endedMarch 31, 2022 and 2021, respectively, which is included in other general and administrative expenses on the consolidated statements of operations. The sub-administrator is paid its compensation for performing its sub-administrative services under the sub-administration agreement. We incurred expenses related to the sub-administrator of$0 . 2 million and$0.1 million for the three months endedMarch 31, 2022 and 2021, respectively which is included in other general and administrative expenses on the consolidated statements of operations.BCSF Advisors will not be reimbursed to the extent that such reimbursements would cause any distributions to our stockholders to constitute a return of capital. All of the foregoing expenses are ultimately borne by our stockholders. Leverage We may borrow money from time to time. However, our ability to incur indebtedness (including by issuing preferred stock), is limited by applicable regulations such that our asset coverage, as defined in the 1940 Act, must equal at least 150%. In determining whether to borrow money, we will analyze the maturity, covenant package and rate structure of the proposed borrowings as well as the risks of such borrowings compared to our investment outlook. As ofMarch 31, 2022 , the Company's asset coverage was 201%. 73 Recent Events OnFebruary 24, 2022 ,Russia launched a full-scaled military invasion ofUkraine . In response, countries worldwide, includingthe United States , have imposed sanctions againstRussia on certain businesses and individuals, including, but not limited to, those in the banking, import and export sectors. This invasion has led, is currently leading, and for an unknown period of time will continue to lead to disruptions in local, regional, national, and global markets and economies affected thereby. These disruptions caused by the invasion have included, and may continue to include, political, social, and economic disruptions and uncertainties that may affect our business operations or the business operations of our portfolio companies. Investment Decision Process
The Advisor's investment process can be broken into four processes: (1) Sourcing
and Idea Generation, (2) Investment Diligence & Recommendation, (3)
Sourcing and Idea Generation The investment decision-making process begins with sourcing ideas.Bain Capital Credit's Private Credit Group interacts with over 1,500 global contacts as a means to generate middle market investment opportunities. Our Advisor also seeks to leverage the contacts ofBain Capital Credit's industry groups, Trading Desk,Portfolio Group and Restructuring team, including private equity firms, banks and a variety of advisors and other intermediaries.
Investment Diligence & Recommendation
Our Advisor utilizesBain Capital Credit's bottom-up approach to investing, and it starts with the due diligence performed by itsPrivate Credit Group . The group works with the close support ofBain Capital Credit's industry groups. This diligence process typically begins with a detailed review of an offering memorandum as well asBain Capital Credit's own independent diligence efforts, including in-house materials and expertise, third-party independent research and interviews, and hands-on field checks where appropriate. For deals that progress beyond an initial stage, the team will usually schedule one or more meetings with company management, facilities visits and also meetings with the sponsor in order to ask more detailed questions and to better understand the sponsor's view of the business and plans for it going forward. The team's diligence work is summarized in investment memoranda and accompanying credit packs. Work product also includes full models and covenant analysis. 74
If the reviewing team deems an investment worthy of serious consideration, it generally must be presented to the credit committee, which is comprised of at least three experienced credit professionals, who are selected based on strategy and geography. A portfolio manager leads the decision making process for each investment and engages the credit committee throughout the investment process in order to prioritize and direct the underwriting of each potential investment opportunity. For middle market holdings, the path to exit an investment is often discussed at credit committee meetings, including restructurings, acquisitions and sale to strategic buyers. Since most middle market investments are illiquid, exits are driven by a sale of the portfolio company or a refinancing of the
portfolio company's debt. Portfolio & Risk Management Our Advisor utilizesBain Capital Credit's Private Credit Group for the daily monitoring of its respective credits after an investment has been made. Our Advisor believes that the ongoing monitoring of financial performance and market developments of portfolio investments is critical to successful investment management. Accordingly, our Advisor is actively involved in an on-going portfolio review process and attends board meetings. To the extent a portfolio investment is not meeting our Advisor's expectations, our Advisor takes corrective action when it deems appropriate, which may include raising interest rates, gaining a more influential role on its board, taking warrants and, where appropriate, restructuring the balance sheet to take control of the company. Our Advisor will utilize theBain Capital Credit Risk and Oversight Committee .The Risk and Oversight Committee is responsible for monitoring and reviewing risk management, including portfolio risk, counterparty risk and firm-wide risk issues. In addition to the methods noted above, there are a number of proprietary methods and tools used through all levels ofBain Capital Credit to manage portfolio risk.
Environmental, Social and Governance
Our Advisor believes that environmental, social, and governance (ESG) management helps to create lasting impact for all of its stakeholder groups, including investors, portfolio companies, employees and communities. ESG risks can have a negative impact on an issuer's ability to meet its financial obligations. Therefore, strong ESG management aligns with our Advisor's goal to seek and generate attractive risk-adjusted returns with the capital it invests. Our Advisor considers ESG factors throughout its investment decision-making process. These factors include, but are not limited to, applying a negative screen to avoid investing in companies with outsized ESG risks; examining the impact a company has on society and the environment during the diligence process; seeking to consider ESG factors from a company-specific and sector-wide perspective; and engaging companies via proxy voting, corporate actions and board seats, where applicable.
Portfolio and Investment Activity
During the three months endedMarch 31, 2022 , we invested$374.9 million , including PIK, in 48 portfolio companies, and had$521.0 million in aggregate amount of principal repayments and sales, resulting in a net decrease in investments of$146.1 million for the period. Of the$374.9 million invested during the three months endedMarch 31, 2022 ,$25.8 million was related to drawdowns on delayed draw term loans and revolvers of our portfolio companies. During the three months endedMarch 31, 2021 , we invested$386.3 million , including PIK, in 30 portfolio companies, and had$549.4 million in aggregate amount of principal repayments and sales, resulting in a net increase in investments of$163.1 million for the period. Of the$386.3 million invested during the three months endedMarch 31, 2021 ,$25.7 million was related to drawdowns on delayed draw term loans and revolvers of our portfolio companies. 75
The following table shows the composition of the investment portfolio and
associated yield data as of
As of March 31, 2022
Weighted Average
Yield (1)
at
Percentage of Percentage of Amortized Market
Amortized Cost Total Portfolio Fair Value Total Portfolio Cost Value
First Lien Senior
Secured Loans $ 1,557,724 71.8 % $ 1,517,163 70.4 % 7.4 % 7.6 %
Equity Interest 199,422 9.2 204,417 9.5 8.9 9.9
Subordinated Note
Investment Vehicles
(2) 169,412 7.8 169,412 7.9 9.2 9.2
Second Lien Senior
Secured Loans 112,625 5.2 111,126 5.2 9.9 10.0
Preferred Equity 43,443 2.0 60,980 2.8 10.0 9.7
Equity Interest
Investment Vehicles
(1) 47,703 2.2 51,855 2.4 11.4 10.4
Subordinated Debt 38,325 1.8 39,117 1.8 11.5 11.3
Warrants 478 0.0 592 0.0 N/A N/A
Preferred Equity
Interest in
Investment Vehicles
(2) 10 0.0 10 0.0 N/A N/A
Total $ 2,169,142 100.0 % $ 2,154,672 100.0 % 7.9 % 8.1 %
(1) Weighted average yields are computed as (a) the annual stated interest rate
or yield earned on the relevant accruing debt and other income producing
securities, divided by (b) the total relevant investments at amortized cost
or at fair value, as applicable. The weighted average yield does not
represent the total return to our stockholders. (2) Represents debt and equity investment in ISLP and SLP.
The following table shows the composition of the investment portfolio and
associated yield data as of
As of December 31, 2021
Weighted Average
Yield (1)
at
Percentage of Percentage of Amortized Market
Amortized Cost Total Portfolio Fair Value Total Portfolio Cost Value
First Lien Senior
Secured Loans $ 1,807,805 78.2 % $ 1,774,675 77.5 % 7.3 % 7.4 %
Equity Interest 156,399 6.8 151,844 6.6 7.9 9.7
Subordinated Note
Investment Vehicles
(2) 125,437 5.5 125,437 5.5 9.0 9.0
Second Lien Senior
Secured Loans 120,058 5.2 118,561 5.2 9.8 9.9
Preferred equity 42,452 1.8 53,991 2.4 10.0 9.5
Equity Interest in
Investment Vehicles
(2) 39,596 1.7 44,444 1.9 8.4 7.5
Subordinated Debt 19,635 0.8 20,027 0.9 11.4 11.2
Warrants 2 0.0 126 0.0 N/A N/A
Total $ 2,311,384 100.0 % $ 2,289,105 100.0 % 7.6 % 7.8 %
(1) Weighted average yields are computed as (a) the annual stated interest rate
or yield earned on the relevant accruing debt and other income producing
securities, divided by (b) the total relevant investments at amortized cost
or at fair value, as applicable. The weighted average yield does not
represent the total return to our stockholders. (2) Represents debt and equity investment in ISLP.
76
The following table presents certain selected information regarding our
investment portfolio as of
As of
March 31, 2022
Number of portfolio companies 115
Percentage of debt bearing a floating rate (1) 96.3 %
Percentage of debt bearing a fixed rate (1) 3.7 %
(1) Measured on a fair value basis.
The following table presents certain selected information regarding our
investment portfolio as of
As of
December 31, 2021
Number of portfolio companies 106
Percentage of debt bearing a floating rate (1) 97.8 %
Percentage of debt bearing a fixed rate (1) 2.2 %
(1) Measured on a fair value basis.
The following table shows the amortized cost and fair value of our performing
and non-accrual investments as of
As of March 31, 2022
Percentage at
Amortized Percentage at
Amortized Cost Cost Fair Value Fair Value
Performing $ 2,169,142 100.0 % $ 2,154,672 100.0 %
Non-accrual - 0.0 - 0.0
Total $ 2,169,142 100.0 % $ 2,154,672 100.0 %
The following table shows the amortized cost and fair value of our performing
and non-accrual investments as of
As of December 31, 2021
Percentage at
Amortized Percentage at
Amortized Cost Cost Fair Value Fair Value
Performing $ 2,311,384 100.0 % $ 2,289,105 100.0 %
Non-accrual - 0.0 - 0.0
Total $ 2,311,384 100.0 % $ 2,289,105 100.0 %
Loans or debt securities are placed on non-accrual status when there is
reasonable doubt that principal or interest will be collected. Accrued interest
generally is reversed when a loan or debt security is placed on non-accrual
status. Interest payments received on non-accrual loans or debt securities may
be recognized as income or applied to principal depending upon management's
judgment. Non-accrual loans and debt securities are restored to accrual status
when past due principal and interest is paid and, in management's judgment, are
likely to remain current. We may make exceptions to this treatment if the loan
has sufficient collateral value and is in the process of collection. As of March
31, 2022 , there were no loans placed on non-accrual in the Company's portfolio.
As of December 31, 2021 , there were no loans placed on non-accrual in the
Company's portfolio.
77
The following table shows the amortized cost and fair value of the investment
portfolio, cash and cash equivalents and foreign cash as of March 31, 2022
(dollars in thousands):
As of March 31, 2022
Percentage of Percentage of
Amortized Cost Total Fair Value TotalCash and cash equivalents $ 55,963 2.5 %$ 55,963 2.5 % Foreign cash 24,844 1.1 24,844 1.1 Restricted cash 34,032 1.5 34,032 1.5 First Lien Senior Secured Loans 1,557,724 68.2 1,517,163 66.8 Equity Interest 199,422 8.7 204,417 9.0 Subordinated Note in Investment Vehicles (1) 169,412 7.4 169,412 7.5 Second Lien Senior Secured Loans 112,625 4.9 111,126 4.9 Preferred Equity 47,703 2.1 60,980 2.7 Equity Interest Investment Vehicles (1) 43,443 1.9 51,855 2.3 Subordinated Debt 38,325 1.7 39,117 1.7 Warrants 478 0.0 592 0.0 Preferred Equity Interests in Investment Vehicles (1) 10 0.0 10 0.0 Total$ 2,283,981 100.0 %$ 2,269,511 100.0 %
(1) Represents debt and equity investment in ISLP and SLP
The following table shows the amortized cost and fair value of the investment portfolio, cash and cash equivalents and foreign cash as ofDecember 31, 2021 (dollars in thousands): As of December 31, 2021 Percentage of Percentage of Amortized Cost Total Fair Value Total
Cash and cash equivalents$ 87,443 3.5 %$ 87,443 3.5 % Foreign cash 30,877 1.2 29,979 1.2 Restricted cash and cash equivalents 86,159 3.4 86,159 3.5 First Lien Senior Secured Loans 1,807,805 71.9 1,774,675 71.2 Equity Interest 156,399 6.1 151,844 6.1
Subordinated Note Investment Vehicles
(1) 125,437 5.0 125,437 5.0 Second Lien Senior Secured Loans 120,058 4.8 118,561 4.7 Preferred Equity 42,452 1.7 53,991 2.2 Equity Interest Investment Vehicles (1) 39,596 1.6 44,444 1.8 Subordinated Debt 19,635 0.8 20,027 0.8 Warrants 2 0.0 126 0.0 Total$ 2,515,863 100.0 %$ 2,492,686 100.0 %
(1) Represents debt and equity investment in ISLP
78
The following table shows the composition of the investment portfolio by
industry, at amortized cost and fair value as of March 31, 2022 (with
corresponding percentage of total portfolio investments) (dollars in thousands):
As of March 31, 2022
Percentage of Percentage of
Amortized Cost Total Portfolio Fair Value Total Portfolio
Aerospace & Defense $ 317,801 14.8 % $ 299,223 13.8 %
Services: Business 252,382 11.6 249,548 11.5
Investment Vehicles (2) 217,125 10.0 221,277 10.3
High Tech Industries 190,399 8.8 190,481 8.8
Consumer Goods: Non-Durable 139,213 6.4 141,217 6.6
Transportation: Cargo 85,257 3.9 89,140 4.1
Automotive 83,261 3.8 82,738 3.8
Healthcare & Pharmaceuticals 82,673 3.8 80,994 3.8
Consumer Goods: Durable 81,927 3.8 76,386 3.5
Transportation: Consumer 81,494 3.8 71,221 3.3
Energy: Oil & Gas 54,672 2.5 69,769 3.2
Wholesale 62,627 2.9 66,522 3.1
Hotel, Gaming & Leisure 65,457 3.0 64,079 3.0
Retail 61,329 2.8 60,910 2.8
Construction & Building 60,712 2.8 58,504 2.7
FIRE: Insurance (1) 51,862 2.4 52,408 2.4
FIRE: Finance (1) 46,879 2.2 47,052 2.2Media: Diversified & Production 40,315 1.9 38,911 1.8 Media: Advertising, Printing & Publishing 51,287
2.4 37,911 1.8 Telecommunications 33,421 1.5 34,047 1.6 Services: Consumer 30,729 1.4 31,255 1.5 Beverage, Food & Tobacco 7,563 0.3 19,740 0.9 Capital Equipment 18,601 0.9 18,487 0.9
Chemicals, Plastics & Rubber 13,922 0.6 14,391 0.7 Containers, Packaging & Glass 13,807
0.6 14,139 0.7 Consumer Goods: Wholesale 8,847 0.4 8,008 0.4 Banking 7,759 0.4 7,917 0.4 Hospitality Holdings 5,000 0.2 5,587 0.3
Media: Broadcasting and Subscription 2,821
0.1 2,810 0.1 Total$ 2,169,142 100.0 %$ 2,154,672 100.0 %
(1) Finance, Insurance, and Real Estate ("FIRE").
(2) Represents debt and equity investment in ISLP and SLP.
79
The following table shows the composition of the investment portfolio by
industry, at amortized cost and fair value as of December 31, 2021 (with
corresponding percentage of total portfolio investments) (dollars in thousands):
As of December 31, 2021
Percentage of Percentage of
Amortized Cost Total Portfolio Fair Value Total Portfolio
Aerospace & Defense $ 309,458 13.4 % $ 282,598 12.3 %
Services: Business 226,035 9.8 225,437 9.8
High Tech Industries 182,811 7.9 183,069 8.0
Consumer Goods: Non-Durable 179,733 7.8 182,063 8.0
Investment Vehicles (2) 165,033 7.1 169,881 7.4
Transportation: Cargo 103,012 4.5 106,458 4.7
Healthcare & Pharmaceuticals 102,116 4.4 100,771 4.4
Automotive 87,597 3.8 88,555 3.9
Retail 83,036 3.6 83,064 3.6
Wholesale 77,737 3.4 80,070 3.5
Energy: Oil & Gas 69,588 3.0 79,548 3.5
Consumer Goods: Durable 83,903 3.6 76,575 3.3
Transportation: Consumer 80,027 3.5 69,040 3.0
Construction & Building 70,256 3.0 68,570 3.0
Capital Equipment 65,129 2.8 64,841 2.8
FIRE: Insurance 62,165 2.7 63,123 2.8
Hotel, Gaming & Leisure 53,232 2.3 51,956 2.3Media: Diversified & Production 46,420
2.0 44,835 2.0 Telecommunications 40,938 1.8 41,570 1.8 Services: Consumer 40,467 1.8 41,236 1.8
Media: Advertising, Printing & Publishing 50,389 2.2 39,459 1.7 Containers, Packaging & Glass 27,379 1.2 27,378 1.2 Chemicals, Plastics & Rubber 26,135
1.1 26,863 1.2 FIRE: Finance (1) 24,245 1.0 24,452 1.1 Beverage, Food & Tobacco 7,563 0.3 19,755 0.9 Banking 18,370 0.8 18,690 0.8 Consumer Goods: Wholesale 14,870 0.6 14,827 0.6
Media: Broadcasting and Subscription 8,740
0.4 8,979 0.4 Hospitality Holdings 5,000 0.2 5,442 0.2 Total$ 2,311,384 100.0 %$ 2,289,105 100.0 %
(1) Finance, Insurance, and Real Estate ("FIRE").
(2) Represents debt and equity investment in ISLP.
80
Our Advisor monitors our portfolio companies on an ongoing basis. It monitors
the financial trends of each portfolio company to determine if they are meeting
their respective business plans and to assess the appropriate course of action
for each company. The Advisor has several methods of evaluating and monitoring
the performance and fair value of our investments, which may include the
following:
• assessment of success in adhering to the portfolio company's business
plan and compliance with covenants;
• periodic or regular contact with portfolio company management and, if
appropriate, the financial or strategic sponsor to discuss financial
position, requirements and accomplishments;
• comparisons to our other portfolio companies in the industry, if any;
• attendance at and participation in board meetings or presentations by
portfolio companies; and
• review of monthly and quarterly financial statements and financial
projections of portfolio companies.
Our Advisor rates the investments in our portfolio at least quarterly and it is
possible that the rating of a portfolio investment may be reduced or increased
over time. For investments rated 3 or 4, our Advisor enhances its level of
scrutiny over the monitoring of such portfolio company. Our internal performance
ratings do not constitute any rating of investments by a nationally recognized
statistical rating organization or represent or reflect any third-party
assessment of any of our investments.
• An investment is rated 1 if, in the opinion of our Advisor, it is
performing above underwriting expectations, and the businesstrends and
risk factors are generally favorable, which may include the performance
of the portfolio company or the likelihood of a potential exit.
• An investment is rated 2 if, in the opinion of our Advisor, it is
performing as expected at the time of our underwriting and there are
generally no concerns about the portfolio company's performance or
ability to meet covenant requirements, interest payments orprincipal
amortization, if applicable. All new investments or acquired
investments in new portfolio companies are initially given a rating of
2.
• An investment is rated 3 if, in the opinion of our Advisor, the
investment is performing below underwriting expectations andthere may
be concerns about the portfolio company's performance or trends in the
industry, including as a result of factors such as declining
performance, non-compliance with debt covenants or delinquency in loan
payments (but generally not more than 180 days past due).
• An investment is rated 4 if, in the opinion of our Advisor, the
investment is performing materially below underwritingexpectations.
For debt investments, most of or all of the debt covenants are out of
compliance and payments are substantially delinquent.Investments rated
4 are not anticipated to be repaid in full, if applicable, and there is
significant risk that we may realize a substantial loss on our
investment.
The following table shows the composition of our portfolio on the 1 to 4 rating
scale as of
As of March 31, 2022
Fair Percentage of Number of Percentage ofInvestment Performance Rating Value Total
Companies(1) Total
1 $ 30,836 1.5 % 3 2.6 %
2 1,939,645 90.0 105 91.3
3 184,191 8.5 7 6.1
4 - 0.0 - 0.0
Total $ 2,154,672 100.0 % 115 100.0 %
(1) Number of investment rated companies may not agree to total portfolio
companies due to investments across investment types and structures.
81
The following table shows the composition of our portfolio on the 1 to 4 rating
scale as of
As of December 31, 2021
Fair Percentage of Number of Percentage ofInvestment Performance Rating Value Total
Companies(1) Total
1 $ 42,233 1.9 % 4 3.8 %
2 2,017,059 88.1 95 89.6
3 229,813 10.0 7 6.6
4 - 0.0 - 0.0
Total $ 2,289,105 100.0 % 106 100.0 %
(1) Number of investment rated companies may not agree to total portfolio
companies due to investments across investment types and structures.
OnFebruary 9, 2021 , the Company and Pantheon ("Pantheon"), a leading global alternative private markets manager, formed theInternational Senior Loan Program, LLC ("ISLP"), an unconsolidated joint venture. ISLP invests primarily in non-US first lien senior secured loans. ISLP was formed as aDelaware limited liability company. The Company and Pantheon committed to initially provide$138.3 million of debt and$46.1 million of equity capital, to ISLP. Equity contributions will be called from each member on a pro-rata basis, based on their equity commitments. Pursuant to the terms of the transaction, Pantheon invested$50.0 million to acquire a 29.5% stake in ISLP. The Company contributed debt investments of$317.1 million for a 70.5% stake in ISLP, and received a one-time gross distribution of$190.2 million in cash in consideration of contributing such investments. As ofMarch 31, 2022 , the Company's investment in ISLP consisted of subordinated notes of$133.6 million , and equity interests of$46.3 million . As ofDecember 31, 2021 , the Company's investment in ISLP consisted of subordinated notes of$125.4 million , and equity interests of$44.4 million As ofMarch 31, 2022 , the Company had commitments with respect to their equity and subordinated note interests of ISLP in the aggregate amount of$249.3 million . The Company has contributed$178.2 million in capital and has$71.1 million in unfunded capital contributions. As ofMarch 31, 2022 , Pantheon had commitments with respect to their equity and subordinated note interests of ISLP in the aggregate amount of$103.9 million . Pantheon has contributed$69.2 million in capital and has$34.7 million in unfunded capital contributions. As ofDecember 31, 2021 , the Company had commitments with respect to their equity and subordinated note interests of ISLP in the aggregate amount of$189.5 million . The Company has contributed$165.7 million in capital and has$23.8 million in unfunded capital contributions. As ofMarch 31, 2022 , Pantheon had commitments with respect to their equity and subordinated note interests of ISLP in the aggregate amount of$78.9 million . Pantheon has contributed$69.8 million in capital and has$9.1 million in unfunded capital contributions. 82 In future periods, the Company may sell certain of its investments or a participating interest in certain of its investments to ISLP. Since inception, the Company has sold$607.2 million of its investments to ISLP. The sale of the investments met the criteria set forth in ASC 860, Transfers and Servicing
for treatment as a sale. The Company has determined that ISLP is an investment company under ASC, Topic 946, Financial Services-Investment Companies; however, in accordance with such guidance, the Company will generally not consolidate its investment in a company other than a wholly or substantially owned investment company subsidiary, which is an extension of the operations of the Company, or a controlled operating company whose business consists of providing services to the Company. The Company does not consolidate its investments in ISLP as it is not a substantially wholly owned investment company subsidiary. In addition, the Company does not control ISLP due to the allocation of voting rights among ISLP members. The Company measures the fair value of ISLP in accordance with ASC Subtopic 820, Fair Value Measurements and Disclosures, using the net asset value (or its equivalent) as a practical expedient. The Company and Pantheon each appointed two members to ISLP's four-person Member Designees' Committee. All material decisions with respect to ISLP, including those involving its investment portfolio, require unanimous approval of a quorum of Member Designees' Committee.
As of
Additionally, ISLP, through a wholly-owned subsidiary, has entered into a$300.0 million senior secured revolving credit facility which bears interest at LIBOR (or an alternative risk-free interest rate index) plus 225 basis points with JP Morgan through its wholly-owned subsidiary, subject to leverage and borrowing base restrictions (the "ISLP Credit Facility"). The maturity date of the ISLP Credit Facility isFebruary 9, 2026 . OnFebruary 4, 2022 , ISLP entered into the second amended and restated credit agreement, which among other things increased the financing limit from$300.0 million to$350.0 million . As ofMarch 31, 2022 , the ISLP Credit Facility had$304.9 million of outstanding debt under the credit facility. As ofDecember 31, 2021 the ISLP Credit Facility had$272.1 million of outstanding debt under the credit facility. As ofMarch 31, 2022 , the effective rate on the ISLP Credit Facility was 2.5% per annum. As ofDecember 31, 2021 , the effective rate on the ISLP Credit Facility was 2.5%
per
annum.
83
Below is a summary of ISLP's portfolio at fair value:
As of As of
March 31, December 31,
2022 2021
Total investments $ 519,752 $ 501,545 Weighted average yield on investments 6.5 % 6.5 % Number of borrowers in ISLP 27 27 Largest portfolio company investment$ 43,787 $ 40,071 Total of five largest portfolio company investments$ 171,531
$ 171,291 Unfunded commitments$ 4,502 $ 105 84
Below is a listing of ISLP's individual investments as of:
International Senior Loan Program, LLC
Consolidated Schedule of Investments
As of March 31, 2022
(unaudited)
Currency Industry Portfolio Company Investment Type Spread Above Index Interest Rate Maturity Date Currency Principal/Shares Cost Market Value % of Members Equity
Australian Dollar
Healthcare & Datix Bidco First Lien Senior
Pharmaceuticals Limited Secured Loan BBSW+ 4.00% 4.25 % 4/28/2025 AUD 4,169 3,290 3,125
Healthcare &
Pharmaceuticals
Total 3,290 3,125 4.8 %
Media:
Advertising,
Printing & TGI Sport Bidco First Lien Senior
Publishing Pty Ltd Secured Loan BBSY+ 7.00% 7.50 % 4/30/2026 AUD 9,610 6,898 6,843
Media:
Advertising,
Printing &
Publishing
Total 6,898 6,843 10.6 %
Services: Zeppelin BidCo First Lien Senior
Consumer Pty Limited Secured Loan BBSY+ 5.00% 5.19 % 6/28/2024 AUD 20,415 16,057 15,303
Services:
Consumer Total 16,057 15,303
23.7 %
Australian
Dollar Total 26,245 25,271 39.1 %
British Pound
Healthcare & Datix Bidco Second Lien Senior
Pharmaceuticals Limited Secured Loan L+ 7.75% 8.21 % 4/27/2026 £ 12,013 16,916 15,783
First Lien Senior
Datix Bidco Secured Loan -
Limited Revolver SONIA+ 4.50% 4.96 % 10/28/2024 £ 963 1,323 1,265
Healthcare &
Pharmaceuticals
Total 18,239 17,048 26.4 %
High Tech Armstrong Bidco First Lien Senior
Industries Limited Secured Loan SONIA+ 5.25% 6.06 % 4/30/2025 £ 5,602 7,711 7,361
High Tech
Industries
Total 7,711 7,361 11.4 %
International
Media: Entertainment
Diversified & Investments First Lien Senior
Production Limited Secured Loan SONIA+ 4.75% 5.06 % 5/31/2023 £ 8,734 12,255 11,440
Media:
Diversified &
Production
Total 12,255 11,440 17.7 %
Services: Comet Bidco First Lien Senior
Business Limited Secured Loan SONIA+ 5.25% 5.42 % 9/30/2024 £ 7,362 9,528 8,970
Brook Bidco First Lien Senior
Facility B Secured Loan L+ 6.00% 6.31 % 7/7/2028 £ 21,167 28,821 27,811
Brook Bidco I T/L
Capex and First Lien Senior
Acquisition 1 Secured Loan SONIA+ 6.00% 6.75 % 7/7/2028 £ 4,600 6,168 6,044
Brook Bidco I T/L
Capex and First Lien Senior
Acquisition 2 Secured Loan SONIA+ 6.00% 6.75 % 7/7/2028 £ 6,400 8,582 8,409
First Lien Senior
Opus2 Secured Loan SONIA+ 5.50% 5.55 % 5/5/2028 £ 12,151 16,341 15,966
Parcel2Go
Acquisition First Lien Senior
Facility Secured Loan SONIA+ 5.75% 6.20 % 7/15/2028 £ 6,554 5,085 4,982
Parcel2Go First Lien Senior
Facility B Secured Loan SONIA+ 5.75% 6.44 % 7/15/2028 £ 12,395 16,634 16,204
Services:
Business Total 91,159 88,386 136.9 %
Services: Surrey Bidco First Lien Senior
Consumer Limited Secured Loan SONIA+ 6.00% PIK 6.50 % 5/11/2026 £ 5,179 6,745 5,726
Services:
Consumer Total 6,745 5,726 8.9 %
British Pound
Total 136,109 129,961 201.3 %
Canadian Dollar
Media: First Lien Senior
Diversified & 9 Story Media Secured Loan -
Production Group Inc. Revolver - - 4/30/2026 CAD - -
9 Story Media First Lien Senior
Group Inc. Secured Loan CDOR+ 5.50% 6.25 % 4/30/2026 CAD 6,851 5,439 5,489
Media:
Diversified &
Production
Total 5,439 5,489 8.5 %
New Look Vision First Lien Senior
Retail Group Secured Loan CDOR+ 5.25% 6.25 % 5/26/2028 CAD 18,011 14,723 14,429
Retail Total 14,723 14,429 22.3 %
Canadian Dollar
Total 20,162 19,918 30.8 %
Danish Krone
High Tech First Lien Senior
Industries VPARK BIDCO AB Secured Loan CIBOR+ 4.00% 4.75 % 3/10/2025 DKK 56,429 9,231 8,407
High Tech
Industries
Total 9,231 8,407 13.0 %
Danish Krone
Total 9,231 8,407 13.0 %
European Currency
First Lien Senior
FIRE: Insurance MRHT Facility A Secured Loan EURIBOR+ 5.50% 5.50 % 7/26/2028 € 21,335 24,529 23,643
FIRE: Insurance
Total 24,529 23,643 36.6 %
Healthcare & First Lien Senior
Pharmaceuticals Mertus 522. GmbH Secured Loan EURIBOR+ 6.25% 6.25 % 5/28/2026 € 12,999 15,686 14,406
First Lien Senior
Mertus 522. GmbH Secured Loan EURIBOR+ 6.25% 6.25 % 5/28/2026 € 22,244 26,841 24,650
Pharmathen Bidco First Lien Senior
B.V. Secured Loan EURIBOR+ 5.75% 5.75 % 10/25/2028 € 13,492 14,933 14,578
Pharmathen Bidco First Lien Senior
B.V. Secured Loan EURIBOR+ 5.75% 5.75 % 10/25/2028 € 2,453 2,713 2,651
Healthcare &
Pharmaceuticals
Total 60,173 56,285 87.2 %
Media:
Diversified & 9 Story Media First Lien Senior
Production Group Inc. Secured Loan EURIBOR+ 5.25% 5.25 % 4/30/2026 € 3,693 4,492 4,092
First Lien Senior
Aptus 1724 Gmbh Secured Loan EURIBOR+ 6.00% 6.25 % 2/23/2028 € 35,000 40,992 38,787
Media:
Diversified &
Production
Total 45,484 42,879 66.4 %
Services: iBanFirst First Lien Senior
Business Facility B Secured Loan EURIBOR+ 8.50% 10.00 % 7/13/2028 € 10,572 11,986 11,716
SumUp Holdings
Luxembourg First Lien Senior
S.à.r.l. Secured Loan EURIBOR+ 8.50% 10.00 % 2/17/2026 € 24,000 28,430 26,597
Services:
Business Total 40,416 38,313 59.3 %
European
Currency Total 170,602 161,120 249.5 %
Norwegian Krone
High Tech First Lien Senior
Industries VPARK BIDCO AB Secured Loan NIBOR+ 4.00% 5.42 % 3/10/2025 NOK 73,280 8,651 8,361
High Tech
Industries
Total 8,651 8,361 12.9 %
Norwegian Krone
Total 8,651 8,361 12.9 %
U.S. Dollar
First Lien Senior
Automotive CST Buyer Company Secured Loan
L+ 5.55% 6.50 % 10/3/2025 $ 14,927 14,927 14,927
First Lien Senior
Cardo Secured Loan L+ 6.00% 6.50 % 5/12/2028 $ 9,653 9,564 9,653
Automotive
Total 24,491 24,580 38.1 %
Chemicals,
Plastics & V Global Holdings First Lien Senior
Rubber LLC Secured Loan SOFR+ 5.25% 6.00 % 12/22/2027 $ 23,634 23,634 23,634
Chemicals,
Plastics &
Rubber Total 23,634 23,634 36.6 %
Healthcare & Golden State First Lien Senior
Pharmaceuticals Buyer, Inc. Secured Loan L+ 4.75% 5.50 % 6/22/2026 $ 14,772 14,707 14,569
Healthcare &
Pharmaceuticals
Total 14,707 14,569 22.6 %
CB Nike First Lien Senior
High Tech IntermediateCo Secured Loan -
Industries Ltd Revolver - - 10/31/2025 $ - -
CB Nike
IntermediateCo First Lien Senior
Ltd Secured Loan L+ 4.75% 5.75 % 10/31/2025 $ 34,279 34,279 34,279
First Lien Senior
Utimaco, Inc. Secured Loan L+ 4.00% 4.36 % 8/9/2027 $ 14,701 14,701 14,701
High Tech
Industries
Total 48,980 48,980 75.9 %
Media:
Broadcasting
and
Subscription Lightning Finco First Lien Senior
Industry Limited Secured Loan L+ 5.75% 6.50 % 7/14/2028 $ 23,907 23,704 23,907
Lightning Finco First Lien Senior
Limited Secured Loan L+ 5.75% 6.50 % 7/14/2028 $ 2,619 2,619 2,619
Media:
Broadcasting
and
Subscription
Industry Total 26,323 26,526 41.1 %
Media:
Diversified & First Lien Senior
Production Aptus 1724 Gmbh Secured Loan L+ 6.25% 6.50 % 2/23/2028 $ 5,000 5,000 5,000
Media:
Diversified &
Production
Total 5,000 5,000 7.7 %
Services: Chamber Bidco First Lien Senior
Business Limited Secured Loan L+ 6.00% 6.50 % 6/7/2028 $ 23,423 23,207 23,425
Services:
Business Total 23,207 23,425 36.3 %
U.S. Dollar
Total 166,342 166,714 258.3 %
Total 537,342 519,752 804.9 %
Forward Foreign Currency Exchange Contracts
Unrealized
AppreciationCurrency Purchased Currency Sold Counterparty Settlement Date (Depreciation)EURO 1,830 AUSTRALIAN DOLLARS 2,862 Morgan Stanley 4/21/2022 $(113 ) EURO 729 CANADIAN DOLLARS 1,035 Standard Chartered 4/21/2022(16 ) EURO 874 DANISH KRONE 6,502 Standard Chartered 4/21/2022(0 ) EURO 8,404 BRITISH POUNDS 7,000 Morgan Stanley 4/21/2022140 EURO 847 NORWEGIANKRONE 8,444 Standard Chartered 4/21/2022(23 ) EURO 21,723 US DOLLARS 24,710 Morgan Stanley 4/21/2022(529 ) EURO 1,440 US DOLLARS 1,631 Morgan Stanley 4/21/2022(28 ) EURO 644 US DOLLARS 720 Morgan Stanley 4/21/2022(4 ) EURO 3,175 US DOLLARS 3,518 Goldman Sachs 7/21/202232 US DOLLARS 8,051 AUSTRALIAN DOLLARS 11,078 Morgan Stanley 4/21/2022(270 ) US DOLLARS 3,208 CANADIAN DOLLARS 4,005 Standard Chartered 4/21/20223 US DOLLARS 3,840 DANISH KRONE 25,168 Standard Chartered 4/21/202273 US DOLLARS 2,450 EURO 2,209 Goldman Sachs 7/21/2022(20 ) US DOLLARS 39,834 EURO 35,050 Morgan Stanley 4/21/2022817 US DOLLARS 510 EURO 448 Standard Chartered 4/21/202211 US DOLLARS 720 EURO 633 Morgan Stanley 4/21/202216 US DOLLARS 36,943 BRITISH POUNDS 27,100 Goldman Sachs 4/21/20221,270 US DOLLARS 3,724 NORWEGIANKRONE 32,686 Standard Chartered 4/21/2022 (13 ) $ 1,346 85
Below is a listing of ISLP's individual investments as of:
International Senior Loan Program, LLC
Consolidated Schedule of Investments
As of December 31, 2021
(in thousands)
% of
Spread Above Interest Maturity Market Members'
Currency Industry Portfolio Company Investment Type Index Rate Date Currency Principal/Shares Cost Value Equity
Australian Dollar
Healthcare &
Pharmaceuticals Datix Bidco Limited First Lien Senior Secured Loan BBSW+ 4.00% 4.25 % 4/28/2025 AUD 4,169 3,289 3,028
Healthcare & Pharmaceuticals
Total 3,289 3,028 4.9 %
Information
Technology Services LEAP Legal Software PTY Ltd First Lien Senior Secured Loan BBSY+ 5.75% 6.75 % 3/12/2025 AUD 30,093 22,867 21,856
Information Technology Services
Total 22,867 21,856 35.1 %
Media: Advertising,
Printing &
Publishing TGI Sport Bidco Pty Ltd First Lien Senior Secured Loan BBSY+ 7.00% 7.50 % 4/30/2026 AUD 9,610 6,886 6,631
Media: Advertising, Printing &
Publishing Total 6,886 6,631 10.6 %
Services: Consumer Zeppelin BidCo Pty Limited First Lien Senior Secured Loan BBSY+ 6.00% 5.12 % 6/28/2024 AUD 20,415 16,045 14,827
Services: Consumer Total 16,045 14,827 23.8 %
Australian Dollar Total 49,087 46,342 74.4 %
British Pound
Healthcare &
Pharmaceuticals Datix Bidco Limited Second Lien Senior Secured Loan L+ 7.75% 8.21 % 4/27/2026 £ 963 1,323 1,303
First Lien Senior Secured Loan-
Datix Bidco Limited Revolver L+ 4.50% 4.96 %10/28/2024 £ 12,013 16,916 16,255 Healthcare & Pharmaceuticals Total 18,239 17,558 28.2 %High Tech Industries Armstrong Bidco Limited First Lien Senior Secured Loan SONIA+ 4.75% 5.00 %4/30/2025 £ 5,602 7,711 7,581 High Tech Industries Total 7,711 7,581 12.2 % Media: Diversified & International EntertainmentProduction Investments Limited First Lien Senior Secured Loan GBP LIBOR+ 4.75% 5.06 %5/31/2023 £ 8,734 12,255 11,782 Media: Diversified & Production Total 12,255 11,782 18.9 % Services: BusinessComet Bidco Limited First Lien Senior Secured Loan GBP LIBOR+ 5.25% 5.42 %9/27/2024 £ 7,362 9,460 9,249 Learning Pool Facility B First Lien Senior Secured Loan L+ 6.00% 6.09 %7/7/2028 £ 21,000 28,584 28,417 Opus2 First Lien Senior Secured Loan SONIA+ 5.50% 5.55 %5/5/2028 £ 12,151 16,326 16,443 Parcel2Go Facility B First Lien Senior Secured Loan SONIA+ 5.75% 5.80 %7/15/2028 £ 12,395 16,619 16,689 Services: Business Total 70,989 70,798 113.7 % Services: ConsumerSurrey Bidco Limited First Lien Senior Secured Loan GBP LIBOR+ 7.00% 7.50 %5/11/2026 £ 4,979 6,732 5,929 Services: Consumer Total 6,732 5,929 9.5 % British Pound Total 115,926 113,648 182.5 % Canadian Dollar Media: Diversified &
First Lien Senior Secured Loan-
Production 9 Story Media Group Inc. Revolver CDOR+ 5.50% 6.25 % 4/30/2026 CAD 16 13 13
9 Story Media Group Inc. First Lien Senior Secured Loan CDOR+ 5.50% 6.25 % 4/30/2026 CAD 7,164 5,688 5,669
86
% of
Spread Above Interest Maturity Members'
Currency Industry Portfolio Company Investment Type Index Rate Date Currency Principal/Shares Cost Market Value Equity
Media: Diversified & Production Total 5,701 5,682 9.1 %
First Lien Senior Secured Loan-
Retail New Look Vision Group Delayed Draw CDOR+ 5.25% 6.25 % 5/26/2028 CAD 18,056 14,752 14,288
Retail Total 14,752 14,288 22.9 %
Canadian Dollar Total 20,453 19,970 32.0 %
Danish Krone
High Tech
Industries VPARK BIDCO AB First Lien Senior Secured Loan CIBOR+ 4.00% 4.75 % 3/10/2025 DKK 56,429 9,231 8,628
High Tech Industries Total 9,231 8,628 13.9 %
Danish Krone Total 9,231 8,628 13.9 %
European Currency
FIRE: Insurance MRHT Facility A First Lien Senior Secured Loan EURIBOR+ 5.50% 5.50 % 7/26/2028 € 21,335 24,521 24,257
FIRE: Insurance Total 24,521 24,257 39.0 %
Healthcare & First Lien Senior Secured
Pharmaceuticals Mertus 522. GmbH Loan-Delayed Draw EURIBOR+ 6.25% 6.25 % 5/28/2026 € 12,999 15,680 14,780
Mertus 522. GmbH First Lien Senior Secured Loan EURIBOR+ 6.25% 6.25 % 5/28/2026 € 22,244 26,830 25,291
Healthcare & Pharmaceuticals Total 42,510 40,071 64.4 %
Media:
Diversified & 9 Story Media Group
Production Inc. First Lien Senior Secured Loan EURIBOR+ 5.25% 5.25 % 4/30/2026 € 3,859 4,694 4,388
Aptus 1724 Gmbh First Lien Senior Secured Loan EURIBOR+ 6.00% 6.25 % 2/23/2028 € 35,000 40,944 39,795
Media: Diversified & Production Total 45,638 44,183 71.0 %
Services:
Business iBanFirst Facility B First Lien Senior Secured Loan EURIBOR+ 8.50% 10.00 % 7/13/2028 € 10,058 11,387 11,437
SumUp Holdings
Luxembourg S.à.r.l. First Lien Senior Secured Loan EURIBOR+ 8.50% 10.00 % 2/17/2026 € 21,000 25,038 23,877
Services: Business Total 36,425 35,314 56.7 %
European Currency Total 149,094 143,825 231.1 %
Norwegian Krone
High Tech
Industries VPARK BIDCO AB First Lien Senior Secured Loan NIBOR+ 4.00% 4.75 % 3/10/2025 NOK 73,280 8,651 8,310
High Tech Industries Total 8,651 8,310 13.3 %
Norwegian Krone Total 8,651 8,310 13.3 %
U.S. Dollar
Automotive CST Buyer Company First Lien Senior Secured Loan L+ 5.55% 6.50 % 10/3/2025 $ 14,927 14,927 14,927
Cardo First Lien Senior Secured Loan L+ 6.00% 6.50 % 5/12/2028 $ 9,653 9,560 9,653
Automotive Total 24,487 24,580 39.5 %
Chemicals,
Plastics &
Rubber V Global Holdings LLC First Lien Senior Secured Loan L+ 6.00% 7.00 % 12/22/2027 $ 23,634 23,634 23,634
Chemicals, Plastics & Rubber Total 23,634 23,634 38.0 %
Healthcare & Golden State Buyer,
Pharmaceuticals Inc. First Lien Senior Secured Loan L+ 4.75% 5.50 % 6/22/2026 $ 14,779 14,709 14,733
Healthcare & Pharmaceuticals Total 14,709 14,733 23.7 %
High Tech CB Nike First Lien Senior Secured
Industries IntermediateCo Ltd Loan-Revolver L+ 4.75% 5.75 % 10/31/2025 $ 4,384 4,384 4,384
CB Nike
IntermediateCo Ltd First Lien Senior Secured Loan L+ 4.75% 5.75 % 10/31/2025 $ 34,367 34,367 34,367
87
% of
Spread Above Interest Maturity Market Members'
Currency Industry Portfolio Company Investment Type Index Rate Date Currency Principal/Shares Cost Value Equity
First Lien Senior
Utimaco, Inc. Secured Loan L+ 4.00% 4.10 % 8/9/2027 $ 14,701 14,701 14,701
High Tech Industries Total 53,452 53,452 85.8 %
Media: Broadcasting and Lightning Finco First Lien Senior
Subscription Industry Limited Secured Loan L+ 5.75% 6.50 % 7/14/2028 $ 21,000 20,790 21,000
Media: Broadcasting and
Subscription Total 20,790 21,000 33.7 %
Chamber Bidco First Lien Senior
Services: Business Limited Secured Loan L+ 6.00% 6.50 % 6/7/2028 $ 23,423 23,198 23,423
Services: Business Total 23,198 23,423 37.6 %
U.S. Dollar Total 160,270 160,822 258.3 %
Total 512,712 501,545 805.5 %
88
Below is the financial information for ISLP (dollars in thousands):
© Edgar Online, source
