bkcc-10q_20180930.htm

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

(Mark One)

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

For the quarterly period ended September 30, 2018

OR

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

For the transition period from                  to                 

Commission file number 814-00712

BLACKROCK CAPITAL INVESTMENT CORPORATION

(Exact Name of Registrant as Specified in Its Charter)

 

 

 

 

Delaware

20-2725151

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

 

 

40 East 52nd Street, New York, NY

10022

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s Telephone Number, Including Area Code: 212-810-5800

 

      

 

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      No  

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

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

Large accelerated filer     Accelerated filer     Non-Accelerated filer     

Smaller reporting company     Emerging growth company

 

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

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

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at October 31, 2018 was 69,734,523.

 

 

 


 

BLACKROCK CAPITAL INVESTMENT CORPORATION

FORM 10-Q FOR THE QUARTER ENDED SEPTEMBER 30, 2018

Table of Contents

 

 

INDEX

PAGE NO.

 

 

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

CONSOLIDATED FINANCIAL STATEMENTS

 

 

 

 

 

Consolidated Statements of Assets and Liabilities as of September 30, 2018 and December 31,
2017 (unaudited)

3

 

 

 

 

Consolidated Statements of Operations for the three and nine months ended September 30, 2018 and 2017 (unaudited)

4

 

 

 

 

Consolidated Statements of Changes in Net Assets for the nine months ended September 30, 2018 and
2017 (unaudited)

5

 

 

 

 

Consolidated Statements of Cash Flows for the nine months ended September 30, 2018 and
2017 (unaudited)

6

 

 

 

 

Consolidated Schedules of Investments as of September 30, 2018 and December 31, 2017 (unaudited)

7

 

 

 

 

Notes to Consolidated Financial Statements (unaudited)

21

 

 

 

Item 2.

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

47

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

58

 

 

 

Item 4.

Controls and Procedures

58

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

60

 

 

 

Item 1A.

Risk Factors

60

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

60

 

 

 

Item 3.

Defaults Upon Senior Securities

61

 

 

 

Item 4.

Mine Safety Disclosures

61

 

 

 

Item 5.

Other Information

61

 

 

 

Item 6.

Exhibits

62

 

 

SIGNATURES

63

 

2


 

PART I. FINANCIAL INFORMATION

In this Quarterly Report, “Company”, “we”, “us” and “our” refer to BlackRock Capital Investment Corporation unless the context states otherwise.

Item 1. Consolidated Financial Statements

BlackRock Capital Investment Corporation

Consolidated Statements of Assets and Liabilities

(Unaudited)

 

 

 

September 30,

2018

 

 

December 31,

2017

 

Assets

 

 

 

 

 

 

 

 

Investments at fair value:

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments (cost of $254,620,448 and $311,938,762)

 

$

228,781,869

 

 

$

261,683,202

 

Non-controlled, affiliated investments (cost of $140,570,979 and $195,354,637)

 

 

173,468,776

 

 

 

215,779,077

 

Controlled investments (cost of $391,897,996 and $321,999,526)

 

 

378,396,463

 

 

 

280,478,528

 

Total investments at fair value (cost of $787,089,423 and $829,292,925)

 

 

780,647,108

 

 

 

757,940,807

 

Cash and cash equivalents

 

 

4,462,864

 

 

 

29,014,645

 

Receivable for investments sold

 

 

1,312,840

 

 

 

1,344,918

 

Interest, dividends and fees receivable

 

 

10,177,605

 

 

 

8,342,780

 

Prepaid expenses and other assets

 

 

2,872,380

 

 

 

3,236,819

 

Total Assets

 

$

799,472,797

 

 

$

799,879,969

 

Liabilities

 

 

 

 

 

 

 

 

Debt (net of deferred financing costs of $3,463,658 and $4,209,445)

 

$

232,959,766

 

 

$

206,661,272

 

Interest and credit facility fees payable

 

 

2,259,432

 

 

 

1,820,971

 

Distributions payable

 

 

12,782,869

 

 

 

13,152,924

 

Deferred tax liability (See Note 2)

 

 

2,220,156

 

 

 

 

Base management fees payable

 

 

3,481,000

 

 

 

3,734,655

 

Payable for investments purchased

 

 

311,334

 

 

 

479,297

 

Accrued administrative services

 

 

355,238

 

 

 

114,995

 

Other accrued expenses and payables

 

 

1,948,431

 

 

 

2,815,923

 

Total Liabilities

 

 

256,318,226

 

 

 

228,780,037

 

Commitments and Contingencies (See Note 9)

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

 

 

Common stock, par value $.001 per share, 200,000,000 common shares authorized, 77,861,287

   and 77,723,764 issued and 70,907,812 and 72,946,910 outstanding

 

77,861

 

 

 

77,723

 

Paid-in capital in excess of par

 

 

858,904,233

 

 

 

858,087,822

 

Undistributed / (Distributions in excess of) net investment income

 

 

(16,988,281

)

 

 

(13,918,838

)

Accumulated net realized loss on investments and extinguishment of debt

 

 

(237,591,277

)

 

 

(162,723,790

)

Net unrealized appreciation (depreciation), net of tax

 

 

(10,207,250

)

 

 

(72,688,483

)

Treasury stock at cost, 6,953,475 and 4,776,854 shares held

 

 

(51,040,715

)

 

 

(37,734,502

)

Total Net Assets

 

 

543,154,571

 

 

 

571,099,932

 

Total Liabilities and Net Assets

 

$

799,472,797

 

 

$

799,879,969

 

Net Asset Value Per Share

 

$

7.66

 

 

$

7.83

 

 

The accompanying notes are an integral part of these consolidated financial statements.

3


 

BlackRock Capital Investment Corporation

Consolidated Statements of Operations

(Unaudited)

 

 

 

Three months ended

September 30, 2018

 

 

Three months ended

September 30, 2017

 

 

Nine months

ended

September 30, 2018

 

 

Nine months

ended

September 30, 2017

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash interest income

 

$

6,355,510

 

 

$

9,312,179

 

 

$

21,680,075

 

 

$

32,845,636

 

PIK interest income

 

 

285,387

 

 

 

146,950

 

 

 

285,387

 

 

 

3,137,866

 

Cash dividend income

 

 

 

 

 

 

 

 

 

 

 

404,780

 

PIK dividend income

 

 

 

 

 

 

 

 

 

 

 

65,944

 

Fee income

 

 

314,103

 

 

 

164,464

 

 

 

1,062,810

 

 

 

505,141

 

Total investment income from non-controlled, non-affiliated investments

 

 

6,955,000

 

 

 

9,623,593

 

 

 

23,028,272

 

 

 

36,959,367

 

Non-controlled, affiliated investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash interest income

 

 

2,341,479

 

 

 

2,598,036

 

 

 

7,464,526

 

 

 

7,585,744

 

PIK interest income

 

 

719,007

 

 

 

952,864

 

 

 

1,409,967

 

 

 

3,067,974

 

PIK dividend income

 

 

193,227

 

 

 

1,613,379

 

 

 

573,379

 

 

 

2,079,524

 

Fee income

 

 

 

 

 

 

 

 

35,000

 

 

 

349,916

 

Total investment income from non-controlled, affiliated investments

 

 

3,253,713

 

 

 

5,164,279

 

 

 

9,482,872

 

 

 

13,083,158

 

Controlled investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash interest income

 

 

6,608,904

 

 

 

4,979,940

 

 

 

17,425,381

 

 

 

14,595,478

 

PIK interest income

 

 

191,253

 

 

 

143,484

 

 

 

1,474,466

 

 

 

1,319,917

 

Cash dividend income

 

 

3,678,572

 

 

 

2,849,738

 

 

 

10,295,858

 

 

 

6,358,240

 

PIK dividend income

 

 

 

 

 

 

 

 

731,516

 

 

 

 

Fee income

 

 

321,463

 

 

 

 

 

 

711,788

 

 

 

25,000

 

Total investment income from controlled investments

 

 

10,800,192

 

 

 

7,973,162

 

 

 

30,639,009

 

 

 

22,298,635

 

Other income

 

 

 

 

 

 

 

 

 

 

 

590,429

 

Total investment income

 

 

21,008,905

 

 

 

22,761,034

 

 

 

63,150,153

 

 

 

72,931,589

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Base management fees

 

 

3,481,000

 

 

 

3,993,673

 

 

 

10,644,268

 

 

 

12,656,877

 

Incentive management fees

 

 

2,497,266

 

 

 

1,493,619

 

 

 

6,153,967

 

 

 

5,076,662

 

Interest and credit facility fees

 

 

3,743,694

 

 

 

4,808,533

 

 

 

11,441,909

 

 

 

14,056,698

 

Professional fees

 

 

212,430

 

 

 

323,949

 

 

 

1,564,350

 

 

 

1,681,342

 

Administrative services

 

 

355,238

 

 

 

292,767

 

 

 

1,326,216

 

 

 

924,226

 

Director fees

 

 

181,000

 

 

 

157,500

 

 

 

546,000

 

 

 

475,249

 

Investment advisor expenses

 

 

87,500

 

 

 

87,504

 

 

 

262,500

 

 

 

262,505

 

Other

 

 

461,711

 

 

 

957,192

 

 

 

1,717,928

 

 

 

2,300,180

 

Total expenses, before incentive management fee waiver

 

 

11,019,839

 

 

 

12,114,737

 

 

 

33,657,138

 

 

 

37,433,739

 

Incentive management fee waiver (See Note 3)

 

 

(2,497,266

)

 

 

(1,493,619

)

 

 

(6,153,967

)

 

 

(5,076,662

)

Expenses, net of incentive management fee waiver

 

 

8,522,573

 

 

 

10,621,118

 

 

 

27,503,171

 

 

 

32,357,077

 

Net Investment Income

 

 

12,486,332

 

 

 

12,139,916

 

 

 

35,646,982

 

 

 

40,574,512

 

Realized and Unrealized Gain (Loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

488,772

 

 

 

28,990

 

 

 

(46,107,825

)

 

 

(53,954,609

)

Controlled investments

 

 

(2,644,230

)

 

 

 

 

 

(28,759,662

)

 

 

2,375,535

 

Net realized gain (loss)

 

 

(2,155,458

)

 

 

28,990

 

 

 

(74,867,487

)

 

 

(51,579,074

)

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(4,724,274

)

 

 

(22,325,607

)

 

 

24,416,981

 

 

 

31,678,241

 

Non-controlled, affiliated investments

 

 

1,795,922

 

 

 

19,838,552

 

 

 

16,952,593

 

 

 

23,375,933

 

Controlled investments

 

 

12,895,555

 

 

 

(17,130,664

)

 

 

23,540,227

 

 

 

(20,411,338

)

Foreign currency translation

 

 

116,642

 

 

 

268,222

 

 

 

(208,413

)

 

 

486,793

 

Net change in unrealized appreciation (depreciation)

 

 

10,083,845

 

 

 

(19,349,497

)

 

 

64,701,388

 

 

 

35,129,629

 

Net realized and unrealized gain (loss) before taxes

 

 

7,928,387

 

 

 

(19,320,507

)

 

 

(10,166,099

)

 

 

(16,449,445

)

Deferred taxes (See Note 2)

 

 

(409,765

)

 

 

(5,257,916

)

 

 

(2,220,156

)

 

 

(5,257,916

)

Net realized and unrealized gain (loss) after taxes

 

 

7,518,622

 

 

 

(24,578,423

)

 

 

(12,386,255

)

 

 

(21,707,361

)

Realized losses on extinguishment of debt (See Note 7)

 

 

 

 

 

(1,312,719

)

 

 

 

 

 

(1,312,719

)

Net Increase (Decrease) in Net Assets Resulting from Operations

 

$

20,004,954

 

 

$

(13,751,226

)

 

$

23,260,727

 

 

$

17,554,432

 

Net Investment Income Per Share—basic

 

$

0.18

 

 

$

0.17

 

 

$

0.50

 

 

$

0.56

 

Earnings (Loss) Per Share—basic

 

$

0.28

 

 

$

(0.19

)

 

$

0.32

 

 

$

0.24

 

Average Shares Outstanding—basic

 

 

71,008,615

 

 

 

73,049,648

 

 

 

71,892,278

 

 

 

72,928,772

 

Net Investment Income Per Share—diluted

 

$

0.17

 

 

$

0.16

 

 

$

0.48

 

 

$

0.54

 

Earnings (Loss) Per Share—diluted

 

$

0.25

 

 

$

(0.19

)

 

$

0.32

 

 

$

0.24

 

Average Shares Outstanding—diluted (See Note 4)

 

 

88,002,352

 

 

 

73,049,648

 

 

 

88,886,015

 

 

 

72,928,772

 

Distributions Declared Per Share

 

$

0.18

 

 

$

0.18

 

 

$

0.54

 

 

$

0.54

 

 

The accompanying notes are an integral part of these consolidated financial statements.

4


 

BlackRock Capital Investment Corporation

Consolidated Statements of Changes in Net Assets

(Unaudited)

 

 

 

Nine months ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

Net Increase (Decrease) in Net Assets Resulting from Operations:

 

 

 

 

 

 

 

 

Net investment income

 

$

35,646,982

 

 

$

40,574,512

 

Net realized gain (loss)

 

 

(74,867,487

)

 

 

(51,579,074

)

Net change in unrealized appreciation (depreciation) before taxes

 

 

64,701,388

 

 

 

35,129,629

 

Deferred taxes

 

 

(2,220,156

)

 

 

(5,257,916

)

Realized losses on extinguishment of debt

 

 

 

 

 

(1,312,719

)

Net increase (decrease) in net assets resulting from operations

 

 

23,260,727

 

 

 

17,554,432

 

Distributions to Stockholders from(1):

 

 

 

 

 

 

 

 

Net investment income

 

 

(38,716,424

)

 

 

(39,382,540

)

Capital Share Transactions:

 

 

 

 

 

 

 

 

Share issuance - distribution reinvestment

 

 

816,549

 

 

 

2,648,095

 

Equity component of convertible notes

 

 

 

 

 

4,337,631

 

Purchases of treasury stock

 

 

(13,306,213

)

 

 

 

Net increase (decrease) in net assets resulting from capital share transactions

 

 

(12,489,664

)

 

 

6,985,726

 

Total Increase (Decrease) in Net Assets

 

 

(27,945,361

)

 

 

(14,842,382

)

Net assets at beginning of period

 

 

571,099,932

 

 

 

596,320,369

 

Net assets at end of period

 

$

543,154,571

 

 

$

581,477,987

 

Capital Share Activity:

 

 

 

 

 

 

 

 

Shares issued from reinvestment of distributions

 

 

137,523

 

 

 

376,019

 

Purchases of treasury stock

 

 

(2,176,621

)

 

 

 

Net increase (decrease) in shares outstanding

 

 

(2,039,098

)

 

 

376,019

 

 

(1)

Sources of distribution to stockholders will be adjusted on an annual basis, if necessary, and calculated in accordance with federal income tax regulations.

 

The accompanying notes are an integral part of these consolidated financial statements.

5


 

BlackRock Capital Investment Corporation

Consolidated Statements of Cash Flows

(Unaudited)

 

 

 

Nine months ended

 

 

 

September 30, 2018

 

 

September 30, 2017

 

Operating Activities:

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

23,260,727

 

 

$

17,554,432

 

Adjustments to reconcile net increase (decrease) in net assets resulting from operations:

 

 

 

 

 

 

 

 

PIK interest, dividends and fees

 

 

(4,474,715

)

 

 

(9,671,225

)

Net amortization on investments

 

 

(1,350,710

)

 

 

(2,182,675

)

Amortization of debt issuance costs and discount

 

 

1,838,980

 

 

 

2,063,014

 

Net change in unrealized (appreciation) depreciation on investments before taxes

 

 

(64,909,801

)

 

 

(34,642,836

)

Net change in unrealized (appreciation) depreciation on foreign currency translation

 

 

208,413

 

 

 

(486,793

)

Deferred taxes

 

 

2,220,156

 

 

 

5,257,916

 

Net realized (gain) loss on investments

 

 

74,867,487

 

 

 

51,579,074

 

Realized losses on extinguishment of debt

 

 

 

 

 

1,312,719

 

Changes in operating assets:

 

 

 

 

 

 

 

 

Purchase of investments

 

 

(272,098,527

)

 

 

(168,848,829

)

Proceeds from disposition of investments

 

 

243,774,902

 

 

 

262,067,895

 

Change in receivable for investments sold

 

 

1,268,982

 

 

 

(165,939

)

Change in interest, dividends and fees receivable

 

 

(1,795,079

)

 

 

(2,001,407

)

Change in prepaid expenses and other assets

 

 

(135,046

)

 

 

67,938

 

Changes in operating liabilities:

 

 

 

 

 

 

 

 

Change in payable for investments purchased

 

 

(167,963

)

 

 

 

Change in interest and credit facility fees payable

 

 

438,461

 

 

 

(485,869

)

Change in base management fees payable

 

 

(253,655

)

 

 

(866,941

)

Change in accrued administrative services

 

 

240,243

 

 

 

318,686

 

Change in other accrued expenses and payables

 

 

(867,492

)

 

 

230,986

 

Net cash provided by (used in) operating activities

 

 

2,065,363

 

 

 

121,100,146

 

Financing Activities:

 

 

 

 

 

 

 

 

Distributions paid in cash

 

 

(38,269,931

)

 

 

(38,847,047

)

Proceeds from debt

 

 

277,000,000

 

 

 

313,412,368

 

Repayments of debt

 

 

(252,041,000

)

 

 

(405,791,087

)

Equity components of convertible notes

 

 

 

 

 

4,337,631

 

Purchase of treasury stock

 

 

(13,306,213

)

 

 

 

Net cash provided by (used in) financing activities

 

 

(26,617,144

)

 

 

(126,888,135

)

Net increase (decrease) in cash and cash equivalents

 

 

(24,551,781

)

 

 

(5,787,989

)

Cash and cash equivalents, beginning of period

 

 

29,014,645

 

 

 

10,707,834

 

Cash and cash equivalents, end of period

 

$

4,462,864

 

 

$

4,919,845

 

Supplemental disclosure of cash flow information and non-cash activities:

 

 

 

 

 

 

 

 

Cash paid during period for:

 

 

 

 

 

 

 

 

Interest

 

$

7,863,905

 

 

$

11,640,832

 

Taxes

 

$

176,464

 

 

$

145,456

 

Non-cash activities:

 

 

 

 

 

 

 

 

Interest and dividends receivable — PIK

 

$

(39,746

)

 

$

1,464,546

 

Receivable for investments sold — escrow receivable

 

$

1,236,903

 

 

$

918,677

 

Share issuance — distribution reinvestment

 

$

816,549

 

 

$

2,648,095

 

Prepaid expenses and other assets

 

$

499,485

 

 

$

522,841

 

 

The accompanying notes are an integral part of these consolidated financial statements.

6


 

BlackRock Capital Investment Corporation

Consolidated Schedules of Investments

September 30, 2018

(Unaudited)

 

Portfolio Company(r)

 

Industry(s)

 

Interest Rate

 

 

Maturity

 

Principal

Amount or

Number of

Shares/Units

 

 

Cost(a)

 

 

Fair

Value(b)

 

Senior Secured Notes—4.51%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc.,

   Second Lien(d)(f)(j)(t)

 

Capital Equipment

 

19.34% (L + 700,  1.00% Floor Cash  / 10.00% PIK)

 

 

10/4/23

 

$

6,390,001

 

 

$

2,181,306

 

 

$

1,533,600

 

AGY Holding Corp., Second Lien(g)(j)

 

Chemicals, Plastics, & Rubber

 

11.00%

 

 

11/15/20

 

 

22,959,438

 

 

 

22,860,360

 

 

 

22,959,438

 

Total Senior Secured Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

25,041,666

 

 

 

24,493,038

 

Unsecured Debt—22.36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CB-HDT Holdings, Inc.(d)(j)

 

Aerospace & Defense

 

12.00% PIK

 

 

12/15/19

 

 

7,654,305

 

 

 

7,654,305

 

 

 

7,654,305

 

Gordon Brothers Finance

   Company(g)(p)

 

Finance

 

13.12% (L + 1100, 1.00% Floor)

 

 

10/31/21

 

 

113,796,013

 

 

 

113,796,013

 

 

 

113,796,013

 

Total Unsecured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

121,450,318

 

 

 

121,450,318

 

Subordinated Debt—7.36%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Boston Construction Holdings,

   LLC(d)(g)(k)(v)

 

Finance

 

12.00%

 

 

2/23/23

 

 

40,000,000

 

 

 

40,000,000

 

 

 

40,000,000

 

Total Subordinated Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

40,000,000

 

 

 

40,000,000

 

Senior Secured Loans—66.80%(e)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Advanced Lighting Technologies, Inc.,

   First Lien(f)

 

Capital Equipment

 

9.84% (L + 750, 1.00% Floor)

 

 

10/4/22

 

 

5,154,114

 

 

 

5,071,529

 

 

 

5,154,114

 

AGY Holding Corp., First Lien(g)

 

Chemicals, Plastics, & Rubber

 

12.00%

 

 

9/15/20

 

 

24,021,390

 

 

 

24,021,390

 

 

 

24,021,390

 

K2 Pure Solutions Nocal, L.P., First

   Lien

 

Chemicals, Plastics, & Rubber

 

11.24% (L + 900, 1.00% Floor)

 

 

2/19/21

 

 

12,875,000

 

 

 

12,804,821

 

 

 

12,939,375

 

MBS OpCo LLC, First Lien(f)

 

Services: Business

 

11.40% (L + 900, 1.00% Floor)

 

 

12/29/22

 

 

14,887,500

 

 

 

14,887,500

 

 

 

14,887,500

 

Midwest Physician Administrative

   Services, LLC, Second Lien

 

Healthcare & Pharmaceuticals

 

9.17% (L + 700, 0.75% Floor)

 

 

8/15/25

 

 

15,000,000

 

 

 

14,870,833

 

 

 

15,000,000

 

NorthStar Financial Services Group,

   LLC, Second Lien

 

Services: Business

 

9.56% (L + 750, 0.75% Floor)

 

 

5/25/26

 

 

14,000,000

 

 

 

13,932,830

 

 

 

13,930,000

 

Paragon Films, Inc., Second Lien

 

Containers, Packaging, & Glass

 

12.15% (L + 1000, 1.00% Floor)

 

 

6/9/23

 

 

25,000,000

 

 

 

24,913,876

 

 

 

25,375,000

 

 

The accompanying notes are an integral part of these consolidated financial statements.

7


 

BlackRock Capital Investment Corporation

Consolidated Schedules of Investments—(Continued)

September 30, 2018  

(Unaudited)

 

Portfolio Company(r)

 

Industry(s)

 

Interest Rate

 

 

Maturity

 

Principal

Amount or

Number of

Shares/Units

 

 

Cost(a)

 

 

Fair

Value(b)

 

Pathway Partners Vet Management

   Company, LLC, Second Lien

 

Services: Consumer

 

10.24% (L + 800, 1.00% Floor)

 

 

10/10/25

 

$

18,993,056

 

 

$

18,822,942

 

 

$

18,898,090

 

Pathway Partners Vet Management

   Company LLC, Delayed Draw Term

   Loan(v)

 

Services: Consumer

 

10.24% (L + 800, 1.00% Floor)

 

 

10/10/25

 

 

7,699,253

 

 

 

7,624,093

 

 

 

7,660,757

 

PharmaLogic Holdings Corp., Second

   Lien(v)

 

Healthcare & Pharmaceuticals

 

10.24% (L + 800)

 

 

12/11/23

 

 

6,409,565

 

 

 

6,379,180

 

 

 

6,377,517

 

Red Apple Stores Inc., Second

   Lien(g)(h)(k)

 

Retail

 

10.00%

 

 

7/24/20

 

 

23,050,000

 

 

 

23,050,000

 

 

 

19,131,500

 

St. George Warehousing & Trucking

   Co. of California, Inc., First Lien

 

Transportation: Cargo

 

11.58% (L + 925, 1.00% Floor)

 

 

4/28/22

 

 

32,954,240

 

 

 

32,954,240

 

 

 

30,482,672

 

St. George Warehousing & Trucking

   Co. of California, Inc., Delayed Draw

   Term Loan

 

Transportation: Cargo

 

11.58% (L + 925, 1.00% Floor)

 

 

4/28/22

 

 

6,752,497