MONROE CAPITAL Corp (Form: 10-Q, Received: 08/06/2020 06:07:41)

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

(Mark One)

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

 

For the quarterly period ended June 30, 2020

 

OR

 

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

 

Commission file number: 814-00866

 

MONROE CAPITAL CORPORATION

(Exact Name of Registrant as Specified in its Charter)

 

Maryland 27-4895840
(State or Other Jurisdiction of
Incorporation or Organization)
(I.R.S. Employer
Identification No.)
   
311 South Wacker Drive, Suite 6400
Chicago, Illinois
60606
(Address of Principal Executive Office) (Zip Code)

 

(312) 258-8300

(Registrant’s Telephone Number, Including Area Code) 

 

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

 

Title of Each Class   Trading Symbol(s)   Name of Each Exchange on Which Registered
Common Stock, par value $0.001 per share
5.75% Notes due 2023
  MRCC
MRCCL
  The Nasdaq Global Select Market
The Nasdaq Global Select Market

 

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

 

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

 

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

 

Large accelerated filer ¨ Accelerated filer x
       
Non-accelerated filer ¨ Smaller reporting company ¨
       
Emerging growth company ¨    

 

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

 

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

 

As of August 4, 2020, the registrant had 21,303,540 shares of common stock, $0.001 par value, outstanding.

 

 

 

 

 

TABLE OF CONTENTS

 

    Page
PART I. FINANCIAL INFORMATION 3
     
Item 1. Consolidated Financial Statements 3
     
  Consolidated Statements of Assets and Liabilities as of June 30, 2020 (unaudited) and December 31, 2019 3
     
  Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 (unaudited) 4
     
  Consolidated Statements of Changes in Net Assets for the three and six months ended June 30, 2020 and 2019 (unaudited) 5
     
  Consolidated Statements of Cash Flows for the six months ended June 30, 2020 and 2019 (unaudited) 6
     
  Consolidated Schedules of Investments as of June 30, 2020 (unaudited) and December 31, 2019 7
     
  Notes to Consolidated Financial Statements (unaudited) 25
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 56
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 81
     
Item 4. Controls and Procedures 83
     
PART II. OTHER INFORMATION 84
     
Item 1. Legal Proceedings 84
     
Item 1A. Risk Factors 84
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 88
     
Item 3. Defaults Upon Senior Securities 88
     
Item 4. Mine Safety Disclosures 88
     
Item 5. Other Information 88
     
Item 6. Exhibits 88
     
Signatures   89

 

  2  

 

 

Part I. Financial Information

Item 1. Consolidated Financial Statements

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

    June 30, 2020     December 31, 2019  
    (unaudited)        
ASSETS                
Investments, at fair value:                
Non-controlled/non-affiliate company investments   $ 458,276     $ 513,959  
Non-controlled affiliate company investments     69,465       59,860  
Controlled affiliate company investments     35,555       42,412  
Total investments, at fair value (amortized cost of: $627,842 and $634,736, respectively)     563,296       616,231  
Cash     7,443       2,234  
Restricted cash     13,393       27,409  
Unrealized gain on foreign currency forward contracts     15        
Interest receivable     4,859       8,689  
Other assets     1,091       495  
Total assets     590,097       655,058  
                 
LIABILITIES                
Debt:                
Revolving credit facility     146,016       180,294  
2023 Notes     109,000       109,000  
SBA debentures payable     115,000       115,000  
    Total debt     370,016       404,294  
Less:  Unamortized deferred financing costs     (7,988 )     (8,053 )
    Total debt, less unamortized deferred financing costs     362,028       396,241  
Interest payable     2,683       2,763  
Unrealized loss on foreign currency forward contracts           59  
Management fees payable     2,434       2,751  
Incentive fees payable           1,374  
Accounts payable and accrued expenses     2,356       2,513  
Total liabilities     369,501       405,701  
Net assets   $ 220,596     $ 249,357  
                 
Commitments and contingencies (See Note 11)                
                 
ANALYSIS OF NET ASSETS                
Common stock, $0.001 par value, 100,000 shares authorized, 21,270 and 20,445 shares issued and outstanding, respectively   $ 21     $ 20  
Capital in excess of par value     295,116       288,850  
Accumulated undistributed (overdistributed) earnings     (74,541 )     (39,513 )
Total net assets   $ 220,596     $ 249,357  
                 
Net asset value per share   $ 10.37     $ 12.20  

 

See Notes to Consolidated Financial Statements.

  3  

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF OPERATIONS

(unaudited)

(in thousands, except per share data)

 

    Three months ended June 30,     Six months ended June 30,  
    2020     2019     2020     2019  
Investment income:                                
Non-controlled/non-affiliate company investments:                                
Interest income   $ 14,461     $ 13,743     $ 26,808     $ 26,573  
Payment-in-kind interest income     855       115       926       213  
Dividend income     (92 )     13       (76 )     26  
Fee income     2,823       60       3,021       629  
Total investment income from non-controlled/non-affiliate company investments     18,047       13,931       30,679       27,441  
Non-controlled affiliate company investments:                                
Interest income     45       767       235       1,690  
Payment-in-kind interest income     1,609       1,146       2,614       2,102  
Dividend income     41             66       — 
Total investment income from non-controlled affiliate company investments     1,695       1,913       2,915       3,792  
Controlled affiliate company investments:                                
Dividend income     900       875       2,050       1,645  
Total investment income from controlled affiliate company investments     900       875       2,050       1,645  
Total investment income     20,642       16,719       35,644       32,878  
                                 
Operating expenses:                                
Interest and other debt financing expenses     4,555       5,107       9,385       9,461  
Base management fees     2,434       2,723       4,985       5,244  
Incentive fees           1,168             2,768  
Professional fees     322       272       537       561  
Administrative service fees     314       319       652       666  
General and administrative expenses     214       285       445       512  
Directors' fees     40       40       75       75  
Expenses before incentive fee waiver     7,879       9,914       16,079       19,287  
Incentive fee waiver           (285 )           (566 )
Total expenses, net of incentive fee waiver     7,879       9,629       16,079       18,721  
Net investment income before income taxes     12,763       7,090       19,565       14,157  
Income taxes, including excise taxes     127       17       147       10  
Net investment income     12,636       7,073       19,418       14,147  
                                 
Net gain (loss):                                
Net realized gain (loss):                                
Non-controlled/non-affiliate company investments     2,461       35       2,555       35  
Foreign currency forward contracts     22       2       18       (6 )
Foreign currency and other transactions     (1 )     (1 )     (16 )     (2 )
Net realized gain (loss)     2,482       36       2,557       27  
                                 
Net change in unrealized gain (loss):                                
Non-controlled/non-affiliate company investments     (5,220 )     (2,749 )     (25,575 )     (461 )
Non-controlled affiliate company investments     98       (1,054 )     (13,609 )     (2,808 )
Controlled affiliate company investments     4,230       112       (6,857 )     435  
Foreign currency forward contracts     (24 )     72       74       7  
Foreign currency and other transactions     32       502       1,376       86  
Net change in unrealized gain (loss)     (884 )     (3,117 )     (44,591 )     (2,741 )
                                 
Net gain (loss)     1,598       (3,081 )     (42,034 )     (2,714 )
                                 
Net increase (decrease) in net assets resulting from operations   $ 14,234     $ 3,992     $ (22,616 )   $ 11,433  
                                 
Per common share data:                                
Net investment income per share - basic and diluted   $ 0.61     $ 0.35     $ 0.95     $ 0.69  
Net increase (decrease) in net assets resulting from operations per share - basic and diluted   $ 0.69     $ 0.20     $ (1.10 )   $ 0.56  
Weighted average common shares outstanding - basic and diluted     20,637       20,445       20,541       20,445  

 

See Notes to Consolidated Financial Statements.

  4  

 

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(unaudited)

(in thousands)

 

    Common Stock                          
    Number of
shares   
    Par
value
    Capital in
excess
of par value
    Accumulated
undistributed
(overdistributed)
earnings
    Total
net assets
 
Balances at March 31, 2019     20,445     $ 20     $ 288,911     $ (29,879 )   $ 259,052  
Net investment income                       7,073       7,073  
Net realized gain (loss)                       36       36  
Net change in unrealized gain (loss)                       (3,117 )     (3,117 )
Issuance of common stock, net of offering and underwriting costs                              
Distributions to stockholders                       (7,156 )     (7,156 )
Balances at June 30, 2019     20,445     $ 20     $ 288,911     $ (33,043 )   $ 255,888  
                                         
Balances at March 31, 2020     20,445     $ 20     $ 288,850     $ (83,518 )   $ 205,352  
Net investment income                       12,636       12,636  
Net realized gain (loss)                       2,482       2,482  
Net change in unrealized gain (loss)                       (884 )     (884 )
Issuance of common stock, net of offering and underwriting costs     825       1       6,266             6,267  
Distributions to stockholders                       (5,257 )     (5,257 )
Balances at June 30, 2020     21,270     $ 21     $ 295,116     $ (74,541 )   $ 220,596  

 

    Common Stock                          
    Number of
shares   
    Par
value
    Capital in
excess
of par value
    Accumulated
undistributed
(overdistributed)
earnings
    Total
net assets
 
Balances at December 31, 2018     20,445     $ 20     $ 288,911     $ (30,164 )   $ 258,767  
Net investment income                       14,147       14,147  
Net realized gain (loss)                       27       27  
Net change in unrealized gain (loss)                       (2,741 )     (2,741 )
Issuance of common stock, net of offering and underwriting costs                              
Distributions to stockholders                       (14,312 )     (14,312 )
Balances at June 30, 2019     20,445     $ 20     $ 288,911     $ (33,043 )   $ 255,888  
                                         
Balances at December 31, 2019     20,445     $ 20     $ 288,850     $ (39,513 )   $ 249,357  
Net investment income                       19,418       19,418  
Net realized gain (loss)                       2,557       2,557  
Net change in unrealized gain (loss)                       (44,591 )     (44,591 )
Issuance of common stock, net of offering and underwriting costs     825       1       6,266             6,267  
Distributions to stockholders                       (12,412 )     (12,412 )
Balances at June 30, 2020     21,270     $ 21     $ 295,116     $ (74,541 )   $ 220,596  

 

See Notes to Consolidated Financial Statements.  

 

  5  

 

MONROE CAPITAL CORPORATION

 

CONSOLIDATED STATEMENTS OF CASH FLOWS

(unaudited)

(in thousands)

 

    Six months ended June 30,  
    2020      2019   
Cash flows from operating activities:                
Net increase (decrease) in net assets resulting from operations   $ (22,616 )   $ 11,433  
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:                
Net realized (gain) loss on investments     (2,555 )     (35 )
Net realized (gain) loss on foreign currency forward contracts     (18 )     6  
Net realized (gain) loss on foreign currency and other transactions     16       2  
Net change in unrealized (gain) loss on investments     46,041       2,834  
Net change in unrealized (gain) loss on foreign currency forward contracts     (74 )     (7 )
Net change in unrealized (gain) loss on foreign currency and other transactions     (1,376 )     (86 )
Payment-in-kind interest income     (3,540 )     (2,315 )
Net accretion of discounts and amortization of premiums     (680 )     (819 )
Purchases of investments     (81,410 )     (130,651 )
Proceeds from principal payments, sales of investments and settlement of forward contracts     95,097       53,797  
Amortization of deferred financing costs     1,004       901  
Changes in operating assets and liabilities:                
Interest receivable     3,830       (2,556 )
Other assets     (596 )     155  
Interest payable     (80 )     131  
Management fees payable     (317 )     405  
Incentive fees payable     (1,374 )     883  
Accounts payable and accrued expenses     (157 )     115  
Net cash provided by (used in) operating activities     31,195       (65,807 )
                 
Cash flows from financing activities:                
Borrowings on revolving credit facility     55,200       264,450  
Repayments of revolving credit facility     (88,100 )     (211,750 )
Proceeds from 2023 Notes           40,000  
Payments of deferred financing costs     (939 )     (3,436 )
Proceeds from shares sold, net of offering and underwriting costs     6,267        
Stockholder distributions paid, net of stock issued under the dividend reinvestment plan of $0 and $0, respectively     (12,412 )     (14,312 )
Net cash provided by (used in) financing activities     (39,984 )     74,952  
                 
Net increase (decrease) in Cash and Restricted Cash     (8,789 )     9,145  
Effect of foreign currency exchange rates     (18 )     (2 )
Cash and Restricted Cash, beginning of period     29,643       17,726  
Cash and Restricted Cash, end of period   $ 20,836     $ 26,869  
                 
Supplemental disclosure of cash flow information:                
Cash interest paid during the period   $ 8,428     $ 8,391  
Cash paid (refund received) for excise taxes during the period   $ 85     $ (13 )

 

 

The following tables provide a reconciliation of cash and restricted cash reported on the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts on the Consolidated Statements of Cash Flows:
 
    June 30, 2020     December 31, 2019  
Cash   $ 7,443     $ 2,234  
Restricted cash     13,393       27,409  
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows   $ 20,836     $ 29,643  

 

    June 30, 2019     December 31, 2018  
Cash   $ 2,985     $ 3,744  
Restricted cash     23,884       13,982  
Total cash and restricted cash shown on the Consolidated Statements of Cash Flows   $ 26,869     $ 17,726  

 

See Notes to Consolidated Financial Statements.

  6  

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

  

Portfolio Company (a)  

Spread

Above
Index (b)

 

Interest

Rate

   

Acquisition

Date (c)

  Maturity     Principal    

Amortized

Cost

   

Fair

Value (d)

   

% of Net

Assets (e)

 
Non-Controlled/Non-Affiliate Company Investments                                                    
Senior Secured Loans                                                    
Automotive                                                    
Hastings Manufacturing Company    L+10.25%   9.25% Cash/ 2.00% PIK     4/24/2018   4/24/2023       2,876     $ 2,839     $ 2,740       1.2 %
Magneto & Diesel Acquisition, Inc.    L+5.50%   6.50 %   12/18/2018   12/18/2023       4,925       4,861       4,919       2.3 %
Magneto & Diesel Acquisition, Inc. (Revolver)    L+5.50%   6.50 %   12/18/2018   12/18/2023       500       500       500       0.2 %
                          8,301       8,200       8,159       3.7 %
Banking, Finance, Insurance & Real Estate                                                    
777 SPV I, LLC (Delayed Draw) (f) (g)    L+8.50%   10.25 %   4/15/2019   4/14/2023       5,025       4,979       5,032       2.3 %
Echelon Funding I, LLC (g)    L+10.25%   10.75 %   12/31/2019   1/11/2021       1,834       1,834       1,839       0.8 %
Echelon Funding I, LLC (Delayed Draw) (f) (g) (h)    L+10.25%   10.75 %   2/24/2017   1/11/2021       14,175       7,646       7,668       3.5 %
HFZ Capital Group, LLC (g)    L+12.50%   14.00 %   10/20/2017   11/25/2020       18,000       18,000       17,771       8.1 %
HFZ Member RB Portfolio, LLC (g)    L+12.00%   13.43 %   10/30/2018   10/29/2021       9,780       9,769       9,685       4.3 %
Kudu Investment Holdings, LLC (g)    L+6.25%   7.25 %   12/23/2019   12/23/2025       5,500       5,410       5,435       2.5 %
Kudu Investment Holdings, LLC (Delayed Draw) (f) (g) (h)    L+6.25%   7.25 %   12/23/2019   12/23/2025       3,667       1,640       1,621       0.7 %
Kudu Investment Holdings, LLC (Revolver) (g) (h)    L+6.25%   7.25 %   12/23/2019   12/23/2025       482                   0.0 %
Liftforward SPV II, LLC (g)    L+10.75%   11.25 %   11/10/2016   11/10/2020       2,337       2,335       2,331       1.1 %
TCP-NG (U.S.), LLC (g)    L+7.25%   8.75 %   8/23/2019   8/22/2024       2,775       2,736       2,685       1.2 %
TCP-NG (U.S.), LLC (Revolver) (g) (h)    L+7.25%   8.75 %   8/23/2019   8/22/2024       180                   0.0 %
                          63,755       54,349       54,067       24.5 %
Beverage, Food & Tobacco                                                    
California Pizza Kitchen, Inc.    L+6.00%   7.00 %(i)   8/19/2016   8/23/2022       6,755       6,727       1,979       0.9 %
LX/JT Intermediate Holdings, Inc. (j)    L+6.00%   7.50 %   3/11/2020   3/11/2025       9,911       9,723       9,668       4.3 %
LX/JT Intermediate Holdings, Inc. (Revolver) (h)    L+6.00%   7.50 %   3/11/2020   3/11/2025       833                   0.0 %
Toojay's Management, LLC    L+5.50%   6.50 %   10/26/2018   10/26/2022       3,465       3,421       3,226       1.5 %
Toojay's Management, LLC    L+5.50%   6.50 %   10/26/2018   10/26/2022       475       475       442       0.2 %
Toojay's Management, LLC (Revolver)    L+5.50%   6.50 %   10/26/2018   10/26/2022       159       159       148       0.1 %
                          21,598       20,505       15,463       7.0 %
Capital Equipment                                                    
MCP Shaw Acquisitionco, LLC (j)    L+6.50%   7.50 %   2/28/2020   11/28/2025       9,975       9,788       9,760       4.4 %
MCP Shaw Acquisitionco, LLC (Revolver)    L+6.50%   7.50 %   2/28/2020   11/28/2025       1,784       1,784       1,745       0.8 %
                          11,759       11,572       11,505       5.2 %
Chemicals, Plastics & Rubber                                                    
Midwest Composite Technologies, LLC (j)    L+6.75%   7.75 %   12/2/2019   8/31/2023       14,925       14,667       14,515       6.6 %
Midwest Composite Technologies, LLC    L+6.75%   7.75 %   8/31/2018   8/31/2023       887       874       862       0.4 %
Midwest Composite Technologies, LLC (Delayed Draw) (f) (h)    L+6.75%   7.75 %   8/31/2018   8/31/2023       509       59       58       0.0 %
Midwest Composite Technologies, LLC (Revolver)    L+6.75%   7.75 %   8/31/2018   8/31/2023       90       90       88       0.0 %
Valudor Products, LLC    L+7.50%   8.50 %   6/18/2018   6/19/2023       1,553       1,532       1,466       0.7 %
Valudor Products, LLC (k)    L+7.50%   8.50 %   6/18/2018   6/19/2023       211       207       198       0.1 %
Valudor Products, LLC (Revolver) (h)    L+9.50%   10.50 %   6/18/2018   6/19/2023       818       510       483       0.2 %
                          18,993       17,939       17,670       8.0 %
Construction & Building                                                    
Cali Bamboo, LLC    L+9.50%   8.00% Cash/ 2.50% PIK     7/10/2015   3/31/2022       7,814       7,812       7,562       3.4 %
Cali Bamboo, LLC (Revolver) (h)    L+9.50%   8.00% Cash/ 2.50% PIK     7/10/2015   3/31/2022       2,165       930       900       0.4 %
Dude Solutions Holdings, Inc.    L+7.50%   8.57 %   6/14/2019   6/13/2025       10,000       9,802       9,895       4.5 %
Dude Solutions Holdings, Inc. (Revolver) (h)    L+7.50%   8.57 %   6/14/2019   6/13/2025       1,304       348       344       0.2 %
                          21,283       18,892       18,701       8.5 %
Consumer Goods: Durable                                                    
Franchise Group Intermediate Holdco, LLC    L+8.00%   9.50 %   2/24/2020   2/14/2025       3,933       3,859       3,790       1.7 %
Nova Wildcat Amerock, LLC    L+5.75%   6.75 %   10/12/2018   10/12/2023       9,055       8,926       8,943       4.1 %
Nova Wildcat Amerock, LLC (Revolver) (h)    L+5.75%   6.75 %   10/12/2018   10/12/2023       931       373       368       0.2 %
Parterre Flooring & Surface Systems, LLC (j)    L+9.00%   10.00 %(i)   8/22/2017   8/22/2022       7,920       7,837       5,374       2.4 %
Parterre Flooring & Surface Systems, LLC (Revolver)    L+9.00%   10.00 %(i)   8/22/2017   8/22/2022       696       696       472       0.2 %
                          22,535       21,691       18,947       8.6 %

 

  7  

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a)  

Spread

Above
 Index (b)

 

Interest

Rate

    Acquisition
Date (c)
  Maturity     Principal     Amortized
Cost
    Fair
Value (d)
    % of Net
Assets (e)
 
Consumer Goods: Non-Durable                                                    
Quirch Foods Holdings, LLC    L+5.75%   5.93 %   2/14/2019   12/19/2025       1,970     $ 1,953     $ 1,940       0.9 %
                          1,970       1,953       1,940       0.9 %
Energy: Oil & Gas                                                    
BJ Services, LLC    L+7.00%   8.50 %   1/28/2019   1/3/2023       4,275       4,246       4,270       1.9 %
                          4,275       4,246       4,270       1.9 %
Environmental Industries                                                    
StormTrap, LLC    L+5.50%   6.50 %   12/10/2018   12/8/2023       7,900     7,798     7,529       3.4 %
StormTrap, LLC (Revolver) (h)    L+5.50%   6.50 %   12/10/2018   12/8/2023       432                   0.0 %
Synergy Environmental Corporation (j)    L+6.50%   7.00 %   4/29/2016   9/30/2021       2,893       2,876       2,858       1.3 %
Synergy Environmental Corporation (j)    L+6.50%   7.00 %   4/29/2016   9/30/2021       484       482       478       0.2 %
Synergy Environmental Corporation    L+6.50%   7.00 %   4/29/2016   9/30/2021       827       827       817       0.4 %
Synergy Environmental Corporation (Revolver) (h)    L+6.50%   7.00 %   4/29/2016   9/30/2021       671       270       266       0.1 %
                          13,207       12,253       11,948       5.4 %
Healthcare & Pharmaceuticals                                                    
American Optics Holdco, Inc. (g) (l)    L+7.00%   8.00 %   9/13/2017   9/13/2022       2,186       2,164       2,157       1.0 %
American Optics Holdco, Inc. (g) (l)    L+7.00%   8.00 %   9/13/2017   9/13/2022       1,637       1,618       1,615       0.7 %
American Optics Holdco, Inc. (Revolver) (g) (h) (l)    L+7.00%   8.00 %   9/13/2017   9/13/2022       220                   0.0 %
American Optics Holdco, Inc. (Revolver) (g) (h) (l)    L+7.00%   8.00 %   9/13/2017   9/13/2022       440                   0.0 %
Apotheco, LLC    L+6.75%   6.50% Cash/ 1.25% PIK     4/8/2019   4/8/2024       3,479       3,424       3,250       1.5 %
Apotheco, LLC (Revolver)    L+6.75%   6.50% Cash/ 1.25% PIK     4/8/2019   4/8/2024       911       911       850       0.4 %
Familia Dental Group Holdings, LLC (j)    L+10.75%   10.50% Cash/ 0.75% PIK     4/8/2016   4/8/2021       5,039       5,023       4,654       2.1 %
Familia Dental Group Holdings, LLC    L+10.75%   10.50% Cash/ 0.75% PIK     4/8/2016   4/8/2021       485       485       448       0.2 %
Familia Dental Group Holdings, LLC (Revolver)    L+10.75%   10.50% Cash/ 0.75% PIK     4/8/2016   4/8/2021       575       575       531       0.2 %
Rockdale Blackhawk, LLC    n/a   n/a (m)    3/31/2015   n/a (n)                  1,772       0.8 %
                          14,972       14,200       15,277       6.9 %
High Tech Industries                                                    
Mindbody, Inc.    L+8.50%   8.00% Cash/ 1.50% PIK     2/15/2019   2/14/2025       6,341       6,241       6,071       2.8 %
Mindbody, Inc. (Revolver)    L+8.00%   9.07 %   2/15/2019   2/14/2025       667       667       636       0.3 %
Newforma, Inc. (j)    L+5.50%   6.50 %   6/30/2017   6/30/2022       12,087       12,005       12,041       5.5 %
Newforma, Inc. (Revolver) (h)    L+5.50%   6.50 %   6/30/2017   6/30/2022       1,250                   0.0 %
Planful, Inc.    L+6.00%   7.00 %   12/28/2018   12/28/2023       9,500       9,358       9,310       4.2 %
Planful, Inc. (Revolver) (h)    L+6.00%   7.00 %   12/28/2018   12/28/2023       442                   0.0 %
Prototek Sheetmetal Fabrication, LLC    L+7.50%   8.50 %   6/27/2019   12/12/2022       1,588       1,564       1,559       0.7 %
Prototek Sheetmetal Fabrication, LLC    L+7.50%   8.50 %   12/11/2017   12/12/2022       3,343       3,306       3,281       1.4 %
Prototek Sheetmetal Fabrication, LLC    L+7.50%   8.50 %   12/11/2017   12/12/2022       2,275       2,275       2,233       1.0 %
Prototek Sheetmetal Fabrication, LLC (Revolver) (h)    L+7.50%   8.50 %   12/11/2017   12/12/2022       233       117       115       0.1 %
Recorded Future, Inc.    L+6.25%   7.25 %   7/3/2019   7/3/2025       7,333       7,204       7,480       3.4 %
Recorded Future, Inc. (Delayed Draw) (f) (h)    L+6.25%   7.25 %   7/3/2019   7/3/2025       587                   0.0 %
Recorded Future, Inc. (Revolver) (h)    L+6.25%   7.25 %   7/3/2019   7/3/2025       880       587       587       0.3 %
RPL Bidco Limited  (g) (l) (o)    L+7.50%   8.00 %   11/9/2017   11/9/2023       13,198       13,958       12,970       5.9 %
RPL Bidco Limited (g) (l) (o)    L+7.50%   8.00 %   5/22/2018   11/9/2023       1,612       1,639       1,583       0.7 %
RPL Bidco Limited (Revolver) (g) (l) (o)    L+7.50%   8.56 %   11/9/2017   11/9/2023       497       497       487       0.2 %
                          61,833       59,418       58,353       26.5 %
Media: Advertising, Printing & Publishing                                                    
AdTheorent Holding Company, LLC    L+8.50%   9.00 %   12/22/2016   12/22/2021       3,208       3,186       3,162       1.4 %
Destination Media, Inc. (j)    L+5.50%   6.50 %   4/7/2017   4/7/2022       4,525       4,496       4,478       2.0 %
Destination Media, Inc. (Revolver)    L+5.50%   6.50 %   4/7/2017   4/7/2022       542       542       536       0.3 %
MC Sign Lessor Corp.    L+7.00%   8.00 %   12/22/2017   8/30/2024       15,642       15,570       15,323       7.0 %
MC Sign Lessor Corp. (Revolver) (h)    L+7.00%   8.00 %   12/22/2017   8/30/2024       3,490       1,396       1,396       0.6 %
XanEdu Publishing, Inc.    L+6.50%   7.50 %   1/28/2020   1/28/2025       1,895       1,860       1,879       0.9 %
XanEdu Publishing, Inc. (Revolver) (h)    L+6.50%   7.50 %   1/28/2020   1/28/2025       495       494       489       0.2 %
                          29,797       27,544       27,263       12.4 %

 

  8  

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a)  

Spread

Above
 Index (b)

 

Interest

Rate

    Acquisition
Date (c)
  Maturity     Principal     Amortized
Cost
    Fair
Value (d)
    % of Net
Assets (e)
 
Media: Broadcasting & Subscription                                                    
Vice Group Holding, Inc.    L+12.00%   5.50% Cash/ 8.00% PIK     5/2/2019   11/2/2022       1,301     $ 1,292     $ 1,292       0.6 %
Vice Group Holding, Inc.    L+12.00%   5.50% Cash/ 8.00% PIK     11/4/2019   11/2/2022       250       246       248       0.1 %
Vice Group Holding, Inc.    L+12.00%   5.50% Cash/ 8.00% PIK     5/2/2019   11/2/2022       408       408       405       0.2 %
Vice Group Holding, Inc. (Delayed Draw) (f) (h)    L+12.00%   13.50 %   5/2/2019   11/2/2022       160                   0.0 %
                          2,119       1,946       1,945       0.9 %
Media: Diversified & Production                                            
Attom Intermediate Holdco, LLC    L+5.75%   6.75 %   1/4/2019   1/4/2024       1,970       1,941       1,923       0.9 %
Attom Intermediate Holdco, LLC    L+7.50%   8.75 %   6/25/2020   1/4/2024       480       470       494       0.2 %
Attom Intermediate Holdco, LLC (Revolver) (h)    L+5.75%   6.75 %   1/4/2019   1/4/2024       320       240       234       0.1 %
Crownpeak Technology, Inc.    L+6.25%   7.25 %   2/28/2019   2/28/2024       4,000       3,939       3,937       1.8 %
Crownpeak Technology, Inc.    L+6.25%   7.25 %   2/28/2019   2/28/2024       60       60       59       0.0 %
Crownpeak Technology, Inc. (Revolver) (h)    L+6.25%   7.25 %   2/28/2019   2/28/2024       167                   0.0 %
                          6,997       6,650       6,647       3.0 %
Retail                                                    
Bluestem Brands, Inc.    P+6.50%   9.75 %(i)   6/26/2015  

11/6/2020       2,275       2,270       1,149       0.5 %
Forman Mills, Inc. (j)    L+9.50%   8.50% Cash/ 2.00% PIK     1/14/2020   10/4/2021       1,308       1,308       1,282       0.6 %
Forman Mills, Inc. (j)    L+9.50%   8.50% Cash/ 2.00% PIK     10/4/2016   10/4/2021       744       739       729       0.3 %
Forman Mills, Inc. (j)    L+9.50%   8.50% Cash/ 2.00% PIK     10/4/2016   10/4/2021       7,459       7,414       5,848       2.7 %
LuLu's Fashion Lounge, LLC    L+9.50%   10.57 %   8/21/2017   8/29/2022       4,156       4,094       3,554       1.6 %
The Worth Collection, Ltd. (j)    L+8.50%   9.00 %(i)   9/29/2016   9/29/2021       10,587       10,248       178       0.1 %
                          26,529       26,073       12,740       5.8 %

 

  9  

 

MONROE CAPITAL CORPORATION

CONSOLIDATED SCHEDULE OF INVESTMENTS - (continued)

(unaudited)

June 30, 2020

(in thousands, except for shares and units)

 

Portfolio Company (a)   Spread
Above
Index (b)
  Interest
Rate
    Acquisition
Date (c)
  Maturity     Principal     Amortized
Cost
    Fair
Value (d)
    % of Net
Assets (e)
 
Services: Business                                                    
Arcserve (USA), LLC    L+5.50%   6.50 %   5/1/2019   5/1/2024       4,694     $ 4,618     $ 4,544       2.1 %
Atlas Sign Industries of FLA, LLC (j)    L+11.50%  

11.50% Cash/

1.00% PIK

    5/14/2018   5/15/2023       3,545       3,350       3,236       1.5 %
Burroughs, Inc. (j)    L+7.50%   8.50 %   12/22/2017   12/22/2022       5,726       5,675       5,447       2.5 %
Burroughs, Inc. (Revolver)    L+7.50%   8.50 %   12/22/2017   12/22/2022       1,220       1,220       1,160       0.5 %
Certify, Inc.    L+5.75%   6.75 %   2/28/2019   2/28/2024       9,000       8,894       8,958       4.1 %
Certify, Inc. (Delayed Draw) (f) (h)    L+5.75%   6.75 %   2/28/2019   2/28/2024       1,227       1,023       1,018       0.5 %
Certify, Inc. (Revolver) (h)    L+5.75%   6.75 %   2/28/2019   2/28/2024       409       61       61       0.0 %
HS4 Acquisitionco, Inc.    L+6.75%   7.75 %   7/9/2019   7/9/2025       10,050       9,874       9,814       4.4 %
HS4 Acquisitionco, Inc. (Revolver) (h)    L+6.75%   7.75 %   7/9/2019   7/9/2025       817       265       259       0.1 %
IT Global Holding, LLC    L+9.00%   10.00 %   11/15/2018   11/10/2023       10,106       9,956       9,493       4.3 %
IT Global Holding, LLC    L+9.00%   10.00 %   7/19/2019   11/10/2023       3,767       3,702       3,539       1.6 %
IT Global Holding, LLC (Revolver)    L+9.00%   10.00 %   11/15/2018   11/10/2023       875       875       822       0.4 %
Kaseya Traverse, Inc.    L+7.00%   5.09% Cash/ 3.00% PIK     5/3/2019   5/2/2025       6,520       6,411       6,361       2.9 %
Kaseya Traverse, Inc. (Delayed Draw) (f) (h)    L+7.00%   5.09% Cash/ 3.00% PIK     5/3/2019   5/2/2025       724       95       93       0.0 %
Kaseya Traverse, Inc. (Delayed Draw) (f) (h)    L+7.00%   5.09% Cash/ 3.00% PIK     3/4/2020   3/4/2022       289                   0.0 %
Kaseya Traverse, Inc. (Revolver) (h)    L+6.50%   7.50 %   5/3/2019   5/2/2025       506       501       489       0.2 %
Madison Logic, Inc. (j)    L+8.00%   8.50 %   11/30/2016   11/30/2021       9,500       9,434       9,329       4.2 %
Madison Logic, Inc. (Revolver) (h)    L+8.00%   8.50 %   11/30/2016   11/30/2021       988                   0.0 %
RedZone Robotics, Inc.    L+7.75%   7.75% Cash/ 1.00% PIK     6/1/2018   6/5/2023       620       612       552       0.2 %
RedZone Robotics, Inc. (Revolver) (h)    L+6.75%   7.75 %   6/1/2018   6/5/2023       158                   0.0 %
Security Services Acquisition Sub Corp. (j)    L+6.00%   7.00 %   2/15/2019   2/15/2024       3,456       3,405       3,437       1.6 %
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)    L+6.00%   7.00 %   2/15/2019   2/15/2024       2,482       1,753       1,743       0.8 %
Security Services Acquisition Sub Corp. (Delayed Draw) (f) (h) (j)    L+6.00%   7.00 %   2/15/2019   2/15/2024       2,182       1,063       1,057       0.5 %
Security Services Acquisition Sub Corp. (Revolver)    L+6.00%   7.00 %   2/15/2019   2/15/2024       1,563       1,563       1,554       0.7 %
TRP Construction Group, LLC (j)    L+7.00%   8.00 %   10/5/2017   10/5/2022       7,609       7,533       7,521       3.4 %
TRP Construction Group, LLC    L+7.00%   8.00