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Investments
 9 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
Investments

4. INVESTMENTS

 

For the three and nine months ended June 30, 2023 purchases of investments, including PIK interest totaled $80.3 million and $231.5 million, respectively. For the same periods in the prior year, purchases of investments, including PIK interest, totaled $105.1 million and $554.3 million, respectively. For the three and nine months ended June 30, 2023 sales and repayments of investments totaled $132.4 million and $258.1 million, respectively. For the same periods in the prior year, sales and repayments of investments totaled $55.0 million and $397.2 million, respectively.

Investments and cash and cash equivalents consisted of the following:

 

($ in thousands)

 

June 30, 2023

 

 

September 30, 2022

 

Investment Classification

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

First lien

 

$

758,292

 

 

$

740,156

 

 

$

838,842

 

 

$

819,461

 

First lien in PSSL

 

 

210,088

 

 

 

210,088

 

 

 

190,181

 

 

 

190,181

 

Second lien

 

 

1,113

 

 

 

149

 

 

 

1,113

 

 

 

147

 

Equity

 

 

80,903

 

 

 

106,931

 

 

 

65,715

 

 

 

105,031

 

Equity interests in PSSL

 

 

90,038

 

 

 

47,941

 

 

 

81,506

 

 

 

49,434

 

Total investments

 

 

1,140,434

 

 

 

1,105,265

 

 

 

1,177,357

 

 

 

1,164,254

 

Cash and cash equivalents

 

 

59,092

 

 

 

59,092

 

 

 

47,917

 

 

 

47,880

 

Total investments and cash and cash equivalents

 

$

1,199,526

 

 

$

1,164,357

 

 

$

1,225,274

 

 

$

1,212,134

 

 

The table below describes investments by industry classification and enumerates the percentage, by fair value, of the total portfolio assets (excluding cash and cash equivalents) in such industries:

 

Industry Classification

 

June 30, 2023 (1)

 

 

September 30, 2022 (1)

 

Media

 

 

8

 

%

 

7

 

Personal Products

 

 

8

 

 

 

7

 

Professional Services

 

 

7

 

 

 

9

 

IT Services

 

 

7

 

 

 

6

 

Commercial Services & Supplies

 

 

6

 

 

 

5

 

Media: Diversified and Production

 

 

5

 

 

 

5

 

Aerospace and Defense

 

 

5

 

 

 

4

 

High Tech Industries

 

 

4

 

 

 

5

 

Capital Equipment

 

 

4

 

 

 

4

 

Healthcare Technology

 

 

4

 

 

 

4

 

Diversified Consumer Services

 

 

3

 

 

 

4

 

Electronic Equipment, Instruments, and Components

 

 

3

 

 

 

3

 

Healthcare Providers and Services

 

 

3

 

 

 

3

 

Construction and Building

 

 

3

 

 

 

3

 

Insurance

 

 

3

 

 

 

2

 

Consumer Services

 

 

3

 

 

 

2

 

Distributors

 

 

2

 

 

 

2

 

Chemicals, Plastics and Rubber

 

 

2

 

 

 

2

 

Healthcare Equipment and Supplies

 

 

2

 

 

 

2

 

Business Services

 

 

2

 

 

 

3

 

Automobiles

 

 

2

 

 

 

1

 

Diversified Financial Services

 

 

1

 

 

 

2

 

Hotels, Restaurants and Leisure

 

 

1

 

 

 

1

 

Energy Equipment and Services

 

 

1

 

 

 

1

 

Financial Services

 

 

1

 

 

 

1

 

Textiles, Apparel and Luxury Goods

 

 

1

 

 

 

1

 

Leisure Products

 

 

1

 

 

 

1

 

Construction & Engineering

 

 

1

 

 

 

—

 

Air Freight and Logistics

 

 

1

 

 

 

1

 

Banking, Finance, Insurance & Real Estate

 

 

1

 

 

 

1

 

Food Products

 

 

1

 

 

 

1

 

Wholesale

 

 

1

 

 

 

1

 

Media: Broadcasting and Subscription

 

 

—

 

 

 

2

 

Building Products

 

 

—

 

 

 

1

 

All Other

 

 

3

 

 

 

3

 

Total

 

 

100

%

 

 

100

%

 

(1)
Excludes investments in PSSL.

 

PennantPark Senior Secured Loan Fund I LLC

 

In May 2017, we and Kemper formed PSSL, an unconsolidated joint venture. PSSL invests primarily in middle-market and other corporate debt securities consistent with our strategy. PSSL was formed as a Delaware limited liability company. As of June 30, 2023 and September 30, 2022, PSSL had total assets of $848.4 million and $796.8 million, respectively, and its investment portfolio consisted of debt investments in 105 and 95 portfolio companies, respectively. As of June 30, 2023, at fair value, the largest investment in a single portfolio company in PSSL was $17.7 million and the five largest investments totaled $83.7 million. As of September 30, 2022, at fair value, the largest investment in a single portfolio company in PSSL was $19.3 million and the five largest investments totaled $86.9 million. PSSL invests in portfolio companies in the same industries in which we may directly invest.

 

We and Kemper provide capital to PSSL in the form of first lien secured debt and equity interests. As of June 30, 2023 and September 30, 2022, we and Kemper owned 87.5% and 12.5%, respectively, of each of the outstanding first lien secured debt and equity interests. As of the same dates, our investment in PSSL consisted of first lien secured debt of $210.1 million (zero remaining unfunded) and $190.2 million (additional $19.9 million unfunded), respectively, and equity interests of $90.0 million (zero remaining unfunded) and $81.5 million (additional $8.5 million unfunded), respectively.

 

We and Kemper each appointed two members to PSSL’s four-person board of directors and investment committee. All material decisions with respect to PSSL, including those involving its investment portfolio, require unanimous approval of a quorum of the board of directors or investment committee. Quorum is defined as (i) the

presence of two members of the board of directors or investment committee, provided that at least one individual is present that was elected, designated or appointed by each member; (ii) the presence of three members of the board of directors or investment committee, provided that the individual that was elected, designated or appointed by the member with only one individual present shall be entitled to cast two votes on each matter; and (iii) the presence of four members of the board of directors or investment committee shall constitute a quorum, provided that two individuals are present that were elected, designated or appointed by each member.

 

In May 2022 PSSL entered into a $325.0 million (increased from $225.0 million in May 2022) senior secured revolving credit facility which bears interest at daily simple SOFR plus 260 basis points (including a spread adjustment) with Ally Bank through its wholly-owned subsidiary, PennantPark Senior Secured Loan Facility LLC II, or PSSL Subsidiary II, subject to leverage and borrowing base restrictions.

 

In January 2021, PSSL completed a $300.7 million debt securitization in the form of a collateralized loan obligation, or the “2032 Asset-Backed Debt”. The 2032 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO II, Ltd., a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2032 Asset-Backed Debt is scheduled to mature in January 2032. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO II, Ltd. of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO II, Ltd. transferred to PSSL 100% of the Preferred Shares of PennantPark CLO II, Ltd. and 100% of the Class E Notes issued by PennantPark CLO II, Ltd.

 

In April 2023, PSSL completed a $297.8 million debt securitization in the form of a collateralized loan obligation, or the “2035 Asset-Backed Debt”. The 2035 Asset-Backed Debt is secured by a diversified portfolio of PennantPark CLO VI, LLC, a wholly-owned and consolidated subsidiary of PSSL, consisting primarily of middle market loans and participation interests in middle market loans. The 2035 Asset-Backed Debt is scheduled to mature in April 2035. On the closing date of the transaction, in consideration of PSSL’s transfer to PennantPark CLO VI, LLC of the initial closing date loan portfolio, which included loans distributed to PSSL by certain of its wholly owned subsidiaries and us, PennantPark CLO VI, LLC transferred to PSSL 100% of the Subordinated Notes CLO VI, LLC

 

Below is a summary of PSSL’s portfolio at fair value:

 

($ in thousands)

 

June 30, 2023

 

 

September 30, 2022

 

Total investments

 

$

805,217

 

 

$

754,722

 

Weighted average cost yield on income producing investments

 

 

12.0

%

 

 

9.6

%

Number of portfolio companies in PSSL

 

 

105

 

 

 

95

 

Largest portfolio company investment

 

$

17,697

 

 

$

19,250

 

Total of five largest portfolio company investments

 

$

83,746

 

 

$

86,872

 

 

 

Below is a listing of PSSL’s individual investments as of June 30, 2023 (Par and $ in thousands):

 

Issuer Name

 

Maturity

 

Industry

 

Current
 Coupon

 

 

Basis Point
Spread Above
Index (1)

 

Par

 

 

Cost

 

 

Fair Value (2)

 

First Lien Secured Debt - 1,464.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A1 Garage Merger Sub, LLC

 

12/22/2028

 

Commercial Services & Supplies

 

 

11.84

%

 

SOFR+650

 

$

2,940

 

 

$

2,885

 

 

$

2,910

 

Ad.net Acquisition, LLC

 

5/7/2026

 

Media

 

 

11.50

%

 

SOFR+600

 

 

8,820

 

 

 

8,739

 

 

 

8,754

 

Alpine Acquisition Corp II

 

11/30/2026

 

Containers and Packaging

 

 

11.07

%

 

SOFR+600

 

 

12,885

 

 

 

12,548

 

 

 

12,370

 

Altamira Technologies, LLC

 

7/24/2025

 

Business Services

 

 

10.70

%

 

SOFR+600

 

 

4,841

 

 

 

4,758

 

 

 

4,841

 

Anteriad, LLC (f/k/a MeritDirect, LLC)

 

5/23/2024

 

Media: Advertising, Printing & Publishing

 

 

10.89

%

 

SOFR+550

 

 

5,072

 

 

 

5,030

 

 

 

4,945

 

Anteriad Holdings Inc (fka MeritDirect) March 2023 Lot

 

5/23/2024

 

Media: Advertising, Printing & Publishing

 

 

11.89

%

 

SOFR+650

 

 

4,938

 

 

 

4,857

 

 

 

4,863

 

Any Hour Services

 

7/21/2027

 

Professional Services

 

 

10.77

%

 

SOFR+525

 

 

7,529

 

 

 

7,359

 

 

 

7,322

 

Apex Service Partners, LLC

 

7/31/2025

 

Diversified Consumer Services

 

 

10.52

%

 

SOFR+525

 

 

1,002

 

 

 

1,002

 

 

 

997

 

Apex Service Partners, LLC Term Loan B

 

7/31/2025

 

Diversified Consumer Services

 

 

10.75

%

 

SOFR+550

 

 

2,187

 

 

 

2,187

 

 

 

2,176

 

Apex Service Partners, LLC Term Loan C

 

7/31/2025

 

Diversified Consumer Services

 

 

10.50

%

 

SOFR+525

 

 

11,013

 

 

 

10,966

 

 

 

10,958

 

Applied Technical Services, LLC

 

12/29/2026

 

Commercial Services & Supplies

 

 

11.14

%

 

SOFR+575

 

 

9,409

 

 

 

9,301

 

 

 

9,221

 

Arcfield Acquisition Corp.

 

3/7/2028

 

Aerospace and Defense

 

 

11.07

%

 

SOFR+575

 

 

4,641

 

 

 

4,559

 

 

 

4,595

 

Beta Plus Technologies, Inc.

 

7/1/2029

 

Business Services

 

 

10.99

%

 

SOFR+525

 

 

4,963

 

 

 

4,873

 

 

 

4,541

 

BioDerm, Inc.

 

1/31/2028

 

Healthcare and Pharmaceuticals

 

 

11.67

%

 

SOFR+650

 

 

9,000

 

 

 

8,894

 

 

 

8,865

 

Blackhawk Industrial Distribution, Inc.

 

9/17/2024

 

Distributors

 

 

11.64

%

 

SOFR+500

 

 

15,171

 

 

 

14,963

 

 

 

14,792

 

Broder Bros., Co.

 

12/2/2022

 

Consumer Products

 

 

11.16

%

 

SOFR+600

 

 

2,364

 

 

 

2,364

 

 

 

2,364

 

Burgess Point Purchaser Corporation

 

9/26/2029

 

Automotive

 

 

10.45

%

 

SOFR+525

 

 

448

 

 

 

418

 

 

 

424

 

By Light Professional IT Services, LLC

 

5/16/2024

 

High Tech Industries

 

 

12.30

%

 

SOFR+625

 

 

13,973

 

 

 

13,947

 

 

 

13,728

 

Cadence Aerospace, LLC

 

11/14/2023

 

Aerospace and Defense

 

 

13.91

%

 

SOFR+850

 

 

3,994

 

 

 

3,991

 

 

 

3,994

 

 

 

 

 

 

 

(PIK 2.00%)

 

 

 

 

 

 

 

 

-

 

 

 

 

Cartessa Aesthetics, LLC

 

6/14/2028

 

Distributors

 

 

11.24

%

 

SOFR+600

 

 

9,661

 

 

 

9,528

 

 

 

9,612

 

CF512, Inc.

 

8/20/2026

 

Media

 

 

11.50

%

 

SOFR+600

 

 

6,838

 

 

 

6,733

 

 

 

6,769

 

CHA Holdings, Inc.

 

4/10/2025

 

Construction and Engineering

 

 

10.00

%

 

SOFR+450

 

 

5,513

 

 

 

5,463

 

 

 

5,513

 

Challenger Performance Optimization, Inc.

 

8/31/2023

 

Business Services

 

 

12.01

%

 

SOFR+675

 

 

9,147

 

 

 

9,142

 

 

 

8,827

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

-

 

 

 

 

Connatix Buyer, Inc.

 

7/13/2027

 

Media

 

 

10.65

%

 

SOFR+550

 

 

3,825

 

 

 

3,769

 

 

 

3,672

 

Crane 1 Services, Inc.

 

8/16/2027

 

Commercial Services & Supplies

 

 

10.41

%

 

SOFR+575

 

 

2,094

 

 

 

2,071

 

 

 

2,073

 

Dr. Squatch, LLC

 

8/31/2027

 

Personal Products

 

 

11.09

%

 

SOFR+600

 

 

14,750

 

 

 

14,518

 

 

 

14,602

 

DRI Holding Inc.

 

12/21/2028

 

Media

 

 

10.45

%

 

SOFR+525

 

 

2,634

 

 

 

2,418

 

 

 

2,357

 

DRS Holdings III, Inc.

 

11/3/2025

 

Consumer Goods: Durable

 

 

11.63

%

 

SOFR+575

 

 

14,586

 

 

 

14,527

 

 

 

14,193

 

Duraco Specialty Tapes LLC

 

6/30/2024

 

Containers and Packaging

 

 

11.75

%

 

SOFR+550

 

 

10,933

 

 

 

10,847

 

 

 

10,747

 

ECL Entertainment, LLC

 

5/1/2028

 

Hotels, Restaurants and Leisure

 

 

12.72

%

 

SOFR+750

 

 

7,588

 

 

 

7,567

 

 

 

7,607

 

EDS Buyer, LLC

 

1/10/2029

 

Professional Services

 

 

11.49

%

 

SOFR+625

 

 

8,978

 

 

 

8,851

 

 

 

8,753

 

Electro Rent Corporation

 

1/17/2024

 

Electronic Equipment, Instruments, and Components

 

 

10.83

%

 

SOFR+550

 

 

2,225

 

 

 

2,190

 

 

 

2,128

 

Exigo Intermediate II, LLC

 

3/15/2027

 

Software

 

 

10.95

%

 

SOFR+575

 

 

12,708

 

 

 

12,524

 

 

 

12,453

 

ETE Intermediate II, LLC - Term Loan

 

5/29/2029

 

Diversified Consumer Services

 

 

11.69

%

 

SOFR+650

 

 

12,404

 

 

 

12,160

 

 

 

12,031

 

Fairbanks Morse Defense

 

6/17/2028

 

Aerospace and Defense

 

 

10.25

%

 

SOFR+475

 

 

10,221

 

 

 

10,167

 

 

 

9,940

 

Gantech Acquisition Corp.

 

5/14/2026

 

IT Services

 

 

11.50

%

 

SOFR+625

 

 

14,413

 

 

 

14,241

 

 

 

13,909

 

Global Holdings InterCo LLC

 

3/16/2026

 

Diversified Financial Services

 

 

11.76

%

 

SOFR+600

 

 

3,746

 

 

 

3,733

 

 

 

3,549

 

Graffiti Buyer, Inc.

 

8/10/2027

 

Trading Companies & Distributors

 

 

11.04

%

 

SOFR+575

 

 

2,351

 

 

 

2,317

 

 

 

2,327

 

Hancock Roofing and Construction L.L.C.

 

12/31/2026

 

Insurance

 

 

10.70

%

 

SOFR+550

 

 

2,250

 

 

 

2,214

 

 

 

2,205

 

Holdco Sands Intermediate, LLC

 

11/23/2028

 

Aerospace and Defense

 

 

11.21

%

 

SOFR+600

 

 

4,925

 

 

 

4,847

 

 

 

4,876

 

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

10.93

%

 

SOFR+500

 

 

3,014

 

 

 

2,983

 

 

 

2,968

 

Icon Partners III, LP

 

5/11/2028

 

Automobiles

 

 

9.77

%

 

SOFR+450

 

 

2,310

 

 

 

2,016

 

 

 

1,528

 

IDC Infusion Services, Inc.

 

12/30/2026

 

Healthcare Equipment and Supplies

 

 

11.89

%

 

SOFR+650

 

 

9,875

 

 

 

9,685

 

 

 

9,875

 

Imagine Acquisitionco, LLC

 

11/15/2027

 

Software

 

 

10.67

%

 

SOFR+550

 

 

9,272

 

 

 

9,085

 

 

 

9,040

 

Inception Fertility Ventures, LLC

 

12/7/2023

 

Healthcare Providers and Services

 

 

12.51

%

 

SOFR+700

 

 

16,537

 

 

 

16,309

 

 

 

16,371

 

Infinity Home Services Holdco, Inc.

 

12/28/2028

 

Commercial Services & Supplies

 

 

12.09

%

 

SOFR+685

 

 

6,106

 

 

 

5,990

 

 

 

6,106

 

Integrative Nutrition, LLC

 

9/29/2023

 

Diversified Consumer Services

 

 

12.39

%

 

SOFR+450

 

 

11,079

 

 

 

11,075

 

 

 

10,525

 

Integrity Marketing Acquisition, LLC

 

8/27/2025

 

Insurance

 

 

11.41

%

 

SOFR+575

 

 

5,921

 

 

 

5,860

 

 

 

5,862

 

ITI Holdings, Inc.

 

3/3/2028

 

IT Services

 

 

10.58

%

 

SOFR+550

 

 

3,950

 

 

 

3,894

 

 

 

3,851

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

13.20

%

 

SOFR+800

 

 

17,697

 

 

 

17,643

 

 

 

17,697

 

Kinetic Purchaser, LLC

 

11/10/2027

 

Personal Products

 

 

11.39

%

 

SOFR+600

 

 

16,704

 

 

 

16,372

 

 

 

16,453

 

Lash OpCo, LLC

 

2/18/2027

 

Personal Products

 

 

12.13

%

 

SOFR+700

 

 

14,246

 

 

 

14,008

 

 

 

14,033

 

LAV Gear Holdings, Inc.

 

10/31/2024

 

Capital Equipment

 

 

11.64

%

 

SOFR+625

 

 

15,168

 

 

 

15,113

 

 

 

14,971

 

Lightspeed Buyer Inc.

 

2/3/2026

 

Healthcare Providers and Services

 

 

10.50

%

 

SOFR+575

 

 

12,087

 

 

 

11,924

 

 

 

11,905

 

LJ Avalon Holdings, LLC

 

1/31/2030

 

Environmental Industries

 

 

11.51

%

 

SOFR+665

 

 

2,592

 

 

 

2,542

 

 

 

2,540

 

Loving Tan Intermediate II, Inc.

 

5/28/2028

 

Consumer Products

 

 

12.26

%

 

SOFR+700

 

 

7,500

 

 

 

7,352

 

 

 

7,350

 

Lucky Bucks, LLC (4)

 

7/20/2027

 

Hotel, Gaming and Leisure

 

 

0.00

%

 

 

 

 

4,489

 

 

 

4,207

 

 

 

1,194

 

Lucky Bucks. LLC - OpCo DIP Loans

 

10/20/2023

 

Hotel, Gaming and Leisure

 

 

15.15

%

 

SOFR+1000

 

 

115

 

 

 

102

 

 

 

101

 

Magenta Buyer, LLC

 

7/31/2028

 

Software

 

 

10.03

%

 

SOFR+500

 

 

3,014

 

 

 

2,845

 

 

 

2,259

 

Marketplace Events, LLC - Super Priority First Lien Term Loan

 

9/30/2025

 

Media: Diversified and Production

 

 

10.43

%

 

SOFR+525

 

 

647

 

 

 

647

 

 

 

647

 

Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan

 

9/30/2025

 

Media: Diversified and Production

 

 

 

 

 

 

 

589

 

 

 

-

 

 

 

-

 

Marketplace Events, LLC

 

9/30/2026

 

Media: Diversified and Production

 

 

10.43

%

 

SOFR+525

 

 

4,837

 

 

 

3,715

 

 

 

4,837

 

Mars Acquisition Holdings Corp.

 

5/14/2026

 

Media

 

 

10.89

%

 

SOFR+550

 

 

11,617

 

 

 

11,494

 

 

 

11,501

 

MBS Holdings, Inc.

 

4/16/2027

 

Internet Software and Services

 

 

11.00

%

 

SOFR+575

 

 

7,350

 

 

 

7,255

 

 

 

7,277

 

MDI Buyer, Inc.

 

7/25/2028

 

Chemicals, Plastics and Rubber

 

 

11.13

%

 

SOFR+600

 

 

6,396

 

 

 

6,283

 

 

 

6,260

 

 

 

Issuer Name

 

Maturity

 

 

Industry

 

Current
 Coupon

 

 

Basis Point
 Spread
 Above
 Index (1)

 

 

Par /
 Shares

 

 

Cost

 

 

Fair Value (2)

 

Meadowlark Acquirer, LLC

 

12/10/2027

 

 

Professional Services

 

 

10.89

%

 

SOFR+550

 

 

$

2,378

 

 

$

2,340

 

 

$

2,330

 

Mission Critical Electronics, Inc.

 

3/28/2024

 

 

Capital Equipment

 

 

10.39

%

 

SOFR+500

 

 

 

5,794

 

 

 

5,787

 

 

 

5,748

 

Municipal Emergency Services, Inc.

 

9/28/2027

 

 

Distributors

 

 

10.89

%

 

SOFR+500

 

 

 

3,439

 

 

 

3,387

 

 

 

3,318

 

NBH Group LLC

 

8/19/2026

 

 

Healthcare, Education & Childcare

 

 

10.44

%

 

SOFR+525

 

 

 

10,738

 

 

 

10,590

 

 

 

10,631

 

Neptune Flood Incorporated - Term Loan

 

5/9/2029

 

 

Insurance

 

 

11.57

%

 

SOFR+650

 

 

 

5,235

 

 

 

5,158

 

 

 

5,157

 

New Milani Group LLC

 

6/6/2024

 

 

Consumer Goods: Non-Durable

 

 

10.70

%

 

SOFR+650

 

 

 

14,250

 

 

 

14,227

 

 

 

14,179

 

One Stop Mailing, LLC

 

5/7/2027

 

 

Air Freight and Logistics

 

 

10.24

%

 

SOFR+625

 

 

 

15,895

 

 

 

15,620

 

 

 

15,895

 

ORL Acquisitions, Inc.

 

9/3/2027

 

 

Consumer Finance

 

 

10.84

%

 

SOFR+525

 

 

 

2,228

 

 

 

2,207

 

 

 

2,117

 

Output Services Group, Inc. (4)

 

6/27/2026

 

 

Business Services

 

 

0.00

%

 

 

—

 

 

 

7,729

 

 

 

7,689

 

 

 

1,932

 

Owl Acquisition, LLC

 

2/4/2028

 

 

Professional Services

 

 

10.80

%

 

SOFR+575

 

 

 

3,893

 

 

 

3,830

 

 

 

3,815

 

Ox Two, LLC

 

5/18/2026

 

 

Construction and Building

 

 

12.75

%

 

SOFR+725

 

 

 

4,345

 

 

 

4,303

 

 

 

4,258

 

Peaquod Merger Sub, Inc.

 

12/2/2026

 

 

Diversified Financial Services

 

 

11.64

%

 

SOFR+640

 

 

 

11,503

 

 

 

11,282

 

 

 

11,273

 

PH Beauty Holdings III, Inc.

 

9/29/2025

 

 

Wholesale

 

 

10.48

%

 

SOFR+500

 

 

 

9,518

 

 

 

9,268

 

 

 

7,638

 

PL Acquisitionco, LLC

 

11/9/2027

 

 

Textiles, Apparel and Luxury Goods

 

 

12.20

%

 

SOFR+650

 

 

 

7,499

 

 

 

7,396

 

 

 

6,824

 

PlayPower, Inc.

 

5/8/2026

 

 

Consumer Goods: Durable

 

 

10.57

%

 

SOFR+550

 

 

 

2,565

 

 

 

2,500

 

 

 

2,399

 

Pragmatic Institute, LLC

 

7/6/2028

 

 

Education

 

 

11.01

%

 

SOFR+575

 

 

 

11,166

 

 

 

11,022

 

 

 

10,998

 

Quantic Electronics, LLC

 

11/19/2026

 

 

Aerospace and Defense

 

 

11.24

%

 

SOFR+600

 

 

 

2,811

 

 

 

2,775

 

 

 

2,768

 

Quantic Electronics, LLC - Unfunded Term Loan (3)

 

11/19/2026

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

1,104

 

 

 

-

 

 

 

(6

)

Rancho Health MSO, Inc.

 

12/18/2025

 

 

Healthcare Providers and Services

 

 

10.94

%

 

SOFR+575

 

 

 

1,032

 

 

 

1,032

 

 

 

1,032

 

Reception Purchaser, LLC

 

2/28/2028

 

 

Air Freight and Logistics

 

 

11.39

%

 

SOFR+600

 

 

 

4,938

 

 

 

4,874

 

 

 

4,728

 

Recteq, LLC

 

1/29/2026

 

 

Leisure Products

 

 

12.39

%

 

SOFR+625

 

 

 

4,888

 

 

 

4,833

 

 

 

4,692

 

Research Now Group, LLC and Dynata, LLC

 

12/20/2024

 

 

Diversified Consumer Services

 

 

10.80

%

 

SOFR+550

 

 

 

12,647

 

 

 

12,329

 

 

 

8,791

 

Sales Benchmark Index LLC

 

1/3/2025

 

 

Professional Services

 

 

11.44

%

 

SOFR+600

 

 

 

9,522

 

 

 

9,465

 

 

 

9,475

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

 

Wholesale

 

 

12.77

%

 

SOFR+750

 

 

 

5,211

 

 

 

5,187

 

 

 

5,133

 

Schlesinger Global, Inc.

 

7/14/2025

 

 

Business Services

 

 

12.20

%

 

SOFR+700

 

 

 

11,810

 

 

 

11,796

 

 

 

11,368

 

 

 

 

 

 

 

 

(PIK 0.50%)

 

 

 

 

 

 

 

 

 

-

 

 

 

 

Seaway Buyer, LLC

 

6/13/2029

 

 

Chemicals, Plastics and Rubber

 

 

11.09

%

 

SOFR+605

 

 

 

4,963

 

 

 

4,895

 

 

 

4,838

 

Sigma Defense Systems, LLC

 

12/18/2025

 

 

Aerospace and Defense

 

 

13.87

%

 

SOFR+850

 

 

 

14,432

 

 

 

14,193

 

 

 

14,179

 

Smile Brands Inc.

 

10/14/2025

 

 

Healthcare and Pharmaceuticals

 

 

9.65

%

 

SOFR+450

 

 

 

11,826

 

 

 

11,734

 

 

 

10,873

 

Solutionreach, Inc.

 

1/17/2024

 

 

Healthcare and Pharmaceuticals

 

 

10.90

%

 

SOFR+575

 

 

 

4,582

 

 

 

4,574

 

 

 

4,536

 

Spendmend Holdings LLC

 

3/1/2028

 

 

Healthcare Technology

 

 

10.86

%

 

SOFR+575

 

 

 

4,122

 

 

 

4,055

 

 

 

4,011

 

STV Group Incorporated

 

12/11/2026

 

 

Construction and Building

 

 

10.45

%

 

SOFR+525

 

 

 

9,075

 

 

 

9,021

 

 

 

9,030

 

Summit Behavioral Healthcare, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.24

%

 

SOFR+475

 

 

 

1,791

 

 

 

1,697

 

 

 

1,782

 

System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)

 

8/16/2027

 

 

Aerospace and Defense

 

 

11.24

%

 

SOFR+600

 

 

 

14,775

 

 

 

14,561

 

 

 

14,494

 

Team Services Group, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.41

%

 

SOFR+500

 

 

 

347

 

 

 

333

 

 

 

336

 

Teneo Holdings LLC

 

7/18/2025

 

 

Business Services

 

 

10.45

%

 

SOFR+525

 

 

 

2,268

 

 

 

2,266

 

 

 

2,263

 

The Aegis Technologies Group, LLC

 

10/31/2025

 

 

Aerospace and Defense

 

 

11.86

%

 

SOFR+600

 

 

 

5,616

 

 

 

5,570

 

 

 

5,504

 

The Bluebird Group LLC

 

7/27/2026

 

 

Professional Services

 

 

12.64

%

 

SOFR+700

 

 

 

5,427

 

 

 

5,355

 

 

 

5,383

 

The Vertex Companies, LLC

 

8/30/2027

 

 

Construction and Engineering

 

 

10.45

%

 

SOFR+550

 

 

 

5,536

 

 

 

5,450

 

 

 

5,436

 

TPC Canada Parent, Inc. and TPC US Parent, LLC

 

11/24/2025

 

 

Consumer Goods: Non-Durable

 

 

10.76

%

 

SOFR+550

 

 

 

8,677

 

 

 

8,569

 

 

 

8,608

 

TVC Enterprises, LLC

 

3/26/2026

 

 

Diversified Consumer Services

 

 

10.95

%

 

SOFR+600

 

 

 

14,604

 

 

 

14,492

 

 

 

14,385

 

TWS Acquisition Corporation

 

6/16/2025

 

 

Diversified Consumer Services

 

 

11.65

%

 

SOFR+625

 

 

 

5,468

 

 

 

5,455

 

 

 

5,468

 

Tyto Athene, LLC (New Issue)

 

4/1/2028

 

 

IT Services

 

 

10.54

%

 

SOFR+550

 

 

 

14,670

 

 

 

14,562

 

 

 

13,555

 

UBEO, LLC

 

4/3/2024

 

 

Capital Equipment

 

 

9.95

%

 

SOFR+450

 

 

 

17,204

 

 

 

17,162

 

 

 

16,774

 

Urology Management Holdings, Inc.

 

6/15/2026

 

 

Healthcare and Pharmaceuticals

 

 

11.36

%

 

SOFR+665

 

 

 

6,910

 

 

 

6,783

 

 

 

6,768

 

Walker Edison Furniture Company LLC

 

3/31/2027

 

 

Wholesale

 

 

12.02

%

 

SOFR+635

 

 

 

3,331

 

 

 

3,331

 

 

 

3,331

 

Walker Edison Furniture Company LLC - Junior Revolving Credit Facility

 

3/31/2027

 

 

Wholesale

 

 

11.44

%

 

SOFR+625

 

 

 

1,667

 

 

 

1,667

 

 

 

1,667

 

Walker Edison Furniture Company LLC - DDTL - Unfunded (3)

 

3/31/2027

 

 

Wholesale

 

 

 

 

 

 

 

 

333

 

 

 

-

 

 

 

-

 

Wildcat Buyerco, Inc.

 

2/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

11.14

%

 

SOFR+575

 

 

 

10,592

 

 

 

10,511

 

 

 

10,354

 

Zips Car Wash, LLC

 

3/1/2024

 

 

Automobiles

 

 

12.45

%

 

SOFR+725

 

 

 

16,830

 

 

 

16,714

 

 

 

16,452

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

823,714

 

 

 

802,474

 

Equity Securities - 0.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New MPE Holdings, LLC

 

 

—

 

 

Media: Diversified and Production

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

306

 

Walker Edison Furniture - Common Equity

 

 

—

 

 

Wholesale

 

 

 

 

 

 

 

 

36

 

 

 

3,393

 

 

 

2,437

 

Total Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,393

 

 

 

2,743

 

Total Investments - 1,469.6%

 

 

 

 

 

 

 

 

 

 

 

827,107

 

 

 

805,217

 

Cash and Cash Equivalents - 69.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,943

 

 

 

37,943

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

37,943

 

 

 

37,943

 

Total Investments and Cash Equivalents —1,329.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

865,050

 

 

$

843,161

 

Liabilities in Excess of Other Assets — (1,229.0)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(788,371

)

Members' Equity—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

54,790

 

cash a

(1)
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable LIBOR or “L”, Secured Overnight Financing Rate or "SOFR", or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day LIBOR rate (1M L, 2M L, 3M L, or 6M L, respectively), at the borrower’s option. All securities arpennante subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
(2)
Valued based on PSSL’s accounting policy.
(3)
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

 

 

Below is a listing of PSSL’s individual investments as of September 30, 2022 (Par and $ in thousands)

Issuer Name

 

Maturity

 

Industry

 

Current
 Coupon

 

 

Basis Point
Spread Above
Index (1)

 

Par

 

 

Cost

 

 

Fair Value (2)

 

First Lien Secured Debt - 1,330.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ad.net Acquisition, LLC

 

5/6/2026

 

Media

 

 

9.67

%

 

3M L+600

 

$

8,888

 

 

$

8,788

 

 

$

8,821

 

Alpine Acquisition Corp II

 

11/30/2026

 

Containers and Packaging

 

 

8.22

%

 

SOFR+600

 

 

9,975

 

 

 

9,790

 

 

 

9,576

 

Altamira Technologies, LLC

 

7/24/2025

 

Business Services

 

 

10.81

%

 

3M L+800

 

 

5,225

 

 

 

5,113

 

 

 

5,042

 

American Insulated Glass, LLC

 

12/21/2023

 

Building Products

 

 

7.79

%

 

3M L+550

 

 

4,883

 

 

 

4,851

 

 

 

4,883

 

Anteriad, LLC (f/k/a MeritDirect, LLC)

 

5/23/2024

 

Media: Advertising, Printing & Publishing

 

 

9.67

%

 

3M L+550

 

 

5,284

 

 

 

5,208

 

 

 

5,284

 

Any Hour Services

 

7/21/2027

 

Professional Services

 

 

8.33

%

 

3M L+525

 

 

3,510

 

 

 

3,441

 

 

 

3,440

 

Apex Service Partners, LLC

 

7/31/2025

 

Diversified Consumer Services

 

 

6.72

%

 

1M L+525

 

 

1,010

 

 

 

1,010

 

 

 

1,005

 

Apex Service Partners, LLC Term Loan B

 

7/31/2025

 

Diversified Consumer Services

 

 

9.67

%

 

3M L+625

 

 

2,202

 

 

 

2,202

 

 

 

2,191

 

Apex Service Partners, LLC Term Loan C

 

7/31/2025

 

Diversified Consumer Services

 

 

7.86

%

 

3M L+525

 

 

11,115

 

 

 

11,050

 

 

 

11,059

 

Applied Technical Services, LLC

 

12/29/2026

 

Commercial Services & Supplies

 

 

8.76

%

 

3M L+575

 

 

8,421

 

 

 

8,317

 

 

 

8,211

 

Arcfield Acquisition Corp.

 

3/7/2028

 

Aerospace and Defense

 

 

8.99

%

 

SOFR + 575

 

 

4,677

 

 

 

4,588

 

 

 

4,583

 

Beta Plus Technologies, Inc.

 

7/1/2029

 

Business Services

 

 

7.76

%

 

SOFR + 525

 

 

5,000

 

 

 

4,903

 

 

 

4,900

 

Blackhawk Industrial Distribution, Inc.

 

9/17/2024

 

Distributors

 

 

8.62

%

 

SOFR + 500

 

 

15,293

 

 

 

15,102

 

 

 

14,956

 

Broder Bros., Co.

 

12/2/2022

 

Consumer Products

 

 

7.39

%

 

3M L+600

 

 

2,417

 

 

 

2,417

 

 

 

2,417

 

By Light Professional IT Services, LLC

 

5/16/2024

 

High Tech Industries

 

 

9.20

%

 

1M L+662

 

 

14,822

 

 

 

14,771

 

 

 

14,674

 

Cadence Aerospace, LLC

 

11/14/2023

 

Aerospace and Defense

 

 

11.31

%

 

3M L+325

 

 

12,412

 

 

 

12,385

 

 

 

12,288

 

 

 

 

 

 

 

(PIK 11.31%)

 

 

 

 

 

 

 

 

 

 

 

-

 

Cartessa Aesthetics, LLC

 

5/13/2028

 

Distributors

 

 

9.55

%

 

SOFR + 600

 

 

6,484

 

 

 

6,359

 

 

 

6,386

 

CF512, Inc.

 

8/20/2026

 

Media

 

 

9.08

%

 

3M L+600

 

 

4,950

 

 

 

4,866

 

 

 

4,876

 

CHA Holdings, Inc.

 

4/10/2025

 

Construction and Engineering

 

 

8.17

%

 

3M L+450

 

 

5,557

 

 

 

5,487

 

 

 

5,557

 

Challenger Performance Optimization, Inc.

 

8/31/2023

 

Business Services

 

 

9.27

%

 

1M L+575

 

 

9,271

 

 

 

9,247

 

 

 

8,993

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

 

 

 

-

 

Connatix Buyer, Inc.

 

7/13/2027

 

Media

 

 

8.42

%

 

3M L+550

 

 

3,907

 

 

 

3,842

 

 

 

3,810

 

Crane 1 Services, Inc.

 

8/16/2027

 

Commercial Services & Supplies

 

 

9.39

%

 

3M L+575

 

 

2,110

 

 

 

2,084

 

 

 

2,089

 

Douglas Products and Packaging Company LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

8.87

%

 

3M L+575

 

 

8,655

 

 

 

8,653

 

 

 

8,655

 

Douglas Sewer Intermediate, LLC

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

8.87

%

 

3M L+575

 

 

7,248

 

 

 

7,246

 

 

 

7,248

 

Dr. Squatch, LLC

 

8/31/2027

 

Personal Products

 

 

9.42

%

 

3M L+575

 

 

14,862

 

 

 

14,610

 

 

 

14,639

 

DRI Holding Inc.

 

12/21/2028

 

Media

 

 

8.37

%

 

1M L+525

 

 

1,832

 

 

 

1,680

 

 

 

1,643

 

DRS Holdings III, Inc.

 

11/3/2025

 

Consumer Goods: Durable

 

 

8.87

%

 

1M L+575

 

 

15,179

 

 

 

15,103

 

 

 

14,693

 

Duraco Specialty Tapes LLC

 

6/30/2024

 

Containers and Packaging

 

 

8.62

%

 

1M L+550

 

 

10,278

 

 

 

10,151

 

 

 

10,031

 

ECL Entertainment, LLC

 

5/1/2028

 

Hotels, Restaurants and Leisure

 

 

10.62

%

 

3M L+750

 

 

2,621

 

 

 

2,598

 

 

 

2,581

 

ECM Industries, LLC

 

12/23/2025

 

Electronic Equipment, Instruments, and Components

 

 

7.82

%

 

3M L+475

 

 

4,974

 

 

 

4,974

 

 

 

4,738

 

Exigo Intermediate II, LLC

 

3/15/2027

 

Software

 

 

8.87

%

 

1M L+575

 

 

12,935

 

 

 

12,759

 

 

 

12,644

 

Fairbanks Morse Defense

 

6/17/2028

 

Aerospace and Defense

 

 

8.39

%

 

3M L+475

 

 

10,300

 

 

 

10,238

 

 

 

9,528

 

Gantech Acquisition Corp.

 

5/14/2026

 

IT Services

 

 

9.37

%

 

1M L+625

 

 

14,638

 

 

 

14,427

 

 

 

14,199

 

Global Holdings InterCo LLC

 

3/16/2026

 

Diversified Financial Services

 

 

8.74

%

 

3M L+600

 

 

3,904

 

 

 

3,888

 

 

 

3,728

 

Graffiti Buyer, Inc.

 

8/10/2027

 

Trading Companies & Distributors

 

 

9.17

%

 

3M L+550

 

 

2,369

 

 

 

2,320

 

 

 

2,274

 

Hancock Roofing and Construction L.L.C.

 

12/31/2026

 

Insurance

 

 

8.67

%

 

1M L+500

 

 

2,392

 

 

 

2,347

 

 

 

2,356

 

Holdco Sands Intermediate, LLC

 

11/23/2028

 

Aerospace and Defense

 

 

10.17

%

 

3M L+600

 

 

4,963

 

 

 

4,874

 

 

 

4,863

 

HW Holdco, LLC

 

12/10/2024

 

Media

 

 

6.00

%

 

6M L+575

 

 

3,052

 

 

 

3,006

 

 

 

3,014

 

Icon Partners III, LP

 

5/11/2028

 

Automobiles

 

 

7.55

%

 

3M L+450

 

 

2,327

 

 

 

1,997

 

 

 

1,701

 

IDC Infusion Services, Inc.

 

12/30/2026

 

Healthcare Equipment and Supplies

 

 

10.20

%

 

SOFR+700

 

 

9,950

 

 

 

9,833

 

 

 

9,502

 

Imagine Acquisitionco, LLC

 

11/15/2027

 

Software

 

 

8.42

%

 

1M L+550

 

 

5,364

 

 

 

5,261

 

 

 

5,230

 

Inception Fertility Ventures, LLC

 

12/7/2023

 

Healthcare Providers and Services

 

 

8.55

%

 

SOFR+700

 

 

16,620

 

 

 

16,309

 

 

 

16,454

 

Integrative Nutrition, LLC

 

9/29/2023

 

Diversified Consumer Services

 

 

8.42

%

 

3M L+475

 

 

11,187

 

 

 

11,168

 

 

 

10,963

 

Integrity Marketing Acquisition, LLC

 

8/27/2025

 

Insurance

 

 

7.58

%

 

1M L+550

 

 

5,966

 

 

 

5,885

 

 

 

5,906

 

ITI Holdings, Inc.

 

3/3/2028

 

IT Services

 

 

8.67

%

 

SOFR + 550

 

 

3,980

 

 

 

3,917

 

 

 

3,900

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

Chemicals, Plastics and Rubber

 

 

11.12

%

 

1M L+800

 

 

19,250

 

 

 

19,103

 

 

 

19,250

 

Kinetic Purchaser, LLC

 

11/10/2027

 

Personal Products

 

 

9.67

%

 

3M L+600

 

 

16,830

 

 

 

16,451

 

 

 

16,494

 

Lash OpCo, LLC

 

2/18/2027

 

Personal Products

 

 

11.17

%

 

3M L+700

 

 

14,355

 

 

 

14,074

 

 

 

14,068

 

LAV Gear Holdings, Inc.

 

10/31/2024

 

Capital Equipment

 

 

9.70

%

 

3M L+550

 

 

10,578

 

 

 

10,539

 

 

 

10,335

 

 

 

 

 

 

 

(PIK 2.00%)

 

 

 

 

 

 

 

 

 

 

 

-

 

Lightspeed Buyer Inc.

 

2/3/2026

 

Healthcare Providers and Services

 

 

9.04

%

 

3M L+575

 

 

10,598

 

 

 

10,428

 

 

 

10,254

 

Lucky Bucks, LLC

 

7/20/2027

 

Hotel, Gaming and Leisure

 

 

8.31

%

 

3M L+550

 

 

4,331

 

 

 

4,258

 

 

 

3,183

 

Magenta Buyer, LLC

 

7/31/2028

 

Software

 

 

7.87

%

 

1M L+475

 

 

2,695

 

 

 

2,539

 

 

 

2,425

 

Marketplace Events, LLC - Super Priority First Lien Term Loan

 

9/30/2025

 

Media: Diversified and Production

 

 

8.19

%

 

1M L+525

 

 

647

 

 

 

647

 

 

 

647

 

Marketplace Events, LLC - Super Priority First Lien Unfunded Term Loan (3)

 

9/30/2025

 

Media: Diversified and Production

 

 

 

 

 

 

 

589

 

 

 

-

 

 

 

-

 

Marketplace Events, LLC

 

9/30/2026

 

Media: Diversified and Production

 

 

8.19

%

 

1M L+525

 

 

4,837

 

 

 

3,527

 

 

 

4,837

 

Mars Acquisition Holdings Corp.

 

5/14/2026

 

Media

 

 

8.62

%

 

1M L+550

 

 

9,900

 

 

 

9,782

 

 

 

9,851

 

MBS Holdings, Inc.

 

4/16/2027

 

Internet Software and Services

 

 

8.56

%

 

3M L+575

 

 

7,406

 

 

 

7,296

 

 

 

7,332

 

MDI Buyer, Inc.

 

7/25/2028

 

Chemicals, Plastics and Rubber

 

 

8.98

%

 

3M L+500

 

 

5,000

 

 

 

4,902

 

 

 

4,900

 

Meadowlark Acquirer, LLC

 

12/10/2027

 

Professional Services

 

 

9.17

%

 

3M L+650

 

 

2,396

 

 

 

2,353

 

 

 

2,372

 

Mission Critical Electronics, Inc.

 

3/28/2024

 

Capital Equipment

 

 

8.70

%

 

SOFR+500

 

 

5,829

 

 

 

5,817

 

 

 

5,759

 

Municipal Emergency Services, Inc.

 

9/28/2027

 

Distributors

 

 

8.67

%

 

3M L+500

 

 

3,465

 

 

 

3,405

 

 

 

3,264

 

NBH Group LLC

 

8/19/2026

 

Healthcare, Education & Childcare

 

 

7.80

%

 

1M L+550

 

 

10,820

 

 

 

10,641

 

 

 

10,820

 

New Milani Group LLC

 

6/6/2024

 

Consumer Goods: Non-Durable

 

 

7.75

%

 

3M L+500

 

 

14,363

 

 

 

14,319

 

 

 

14,111

 

OIS Management Services, LLC

 

7/9/2026

 

Healthcare Equipment and Supplies

 

 

8.40

%

 

SOFR+475

 

 

5,060

 

 

 

4,991

 

 

 

5,060

 

One Stop Mailing, LLC

 

5/7/2027

 

Air Freight and Logistics

 

 

9.37

%

 

1M L+625

 

 

14,598

 

 

 

14,353

 

 

 

14,160

 

Output Services Group, Inc.

 

3/27/2024

 

Business Services

 

 

9.80

%

 

3M L+425

 

 

7,682

 

 

 

7,676

 

 

 

5,838

 

Owl Acquisition, LLC

 

2/4/2028

 

Professional Services

 

 

8.41

%

 

3M L+575

 

 

3,990

 

 

 

3,918

 

 

 

3,890

 

Ox Two, LLC

 

5/18/2026

 

Construction and Building

 

 

9.81

%

 

3M L+600

 

 

4,925

 

 

 

4,866

 

 

 

4,827

 

PH Beauty Holdings III, Inc.

 

9/29/2025

 

Wholesale

 

 

8.07

%

 

1M L+500

 

 

9,593

 

 

 

9,234

 

 

 

7,674

 

PL Acquisitionco, LLC

 

11/9/2027

 

Textiles, Apparel and Luxury Goods

 

 

9.62

%

 

1M L+650

 

 

8,238

 

 

 

8,111

 

 

 

8,032

 

Plant Health Intermediate, Inc.

 

10/19/2022

 

Chemicals, Plastics and Rubber

 

 

8.87

%

 

3M L+575

 

 

1,562

 

 

 

1,561

 

 

 

1,562

 

PlayPower, Inc.

 

5/8/2026

 

Consumer Goods: Durable

 

 

9.17

%

 

3M L+550

 

 

2,580

 

 

 

2,500

 

 

 

2,309

 

Pragmatic Institute, LLC

 

7/6/2028

 

Education

 

 

9.30

%

 

SOFR+575

 

 

11,250

 

 

 

11,056

 

 

 

11,138

 

Quantic Electronics, LLC

 

11/19/2026

 

Aerospace and Defense

 

 

8.41

%

 

1M L+625

 

 

4,845

 

 

 

4,755

 

 

 

4,729

 

Quantic Electronics, LLC - Unfunded Term Loan (3)

 

11/19/2026

 

Aerospace and Defense

 

 

 

 

 

 

 

1,888

 

 

 

-

 

 

 

-

 

Reception Purchaser, LLC

 

2/28/2028

 

Air Freight and Logistics

 

 

9.13

%

 

SOFR+600

 

 

4,975

 

 

 

4,904

 

 

 

4,751

 

Recteq, LLC

 

1/29/2026

 

Leisure Products

 

 

9.92

%

 

3M L+600

 

 

4,925

 

 

 

4,856

 

 

 

4,753

 

Research Now Group, LLC and Dynata, LLC

 

12/20/2024

 

Diversified Consumer Services

 

 

8.84

%

 

3M L+550

 

 

12,564

 

 

 

12,354

 

 

 

11,291

 

 

 

 

 

Issuer Name

 

Maturity

 

 

Industry

 

Current
 Coupon

 

 

Basis Point
 Spread
 Above
 Index (1)

 

 

Par /
 Shares

 

 

Cost

 

 

Fair Value (2)

 

Sales Benchmark Index LLC

 

1/3/2025

 

 

Professional Services

 

 

9.67

%

 

3M L+600

 

 

$

5,013

 

 

$

4,960

 

 

$

4,963

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

 

Wholesale

 

 

8.62

%

 

3M L+550

 

 

 

5,240

 

 

 

5,202

 

 

 

5,187

 

Schlesinger Global, Inc.

 

7/14/2025

 

 

Business Services

 

 

10.27

%

 

SOFR+500

 

 

 

11,847

 

 

 

11,829

 

 

 

11,551

 

 

 

 

 

 

 

 

(PIK 0.50%)

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Sigma Defense Systems, LLC

 

12/18/2025

 

 

Aerospace and Defense

 

 

12.17

%

 

1M L+850

 

 

 

14,716

 

 

 

14,411

 

 

 

14,421

 

Smile Brands Inc.

 

10/14/2025

 

 

Healthcare and Pharmaceuticals

 

 

7.05

%

 

3M L+450

 

 

 

11,917

 

 

 

11,807

 

 

 

11,470

 

Solutionreach, Inc.

 

1/17/2024

 

 

Healthcare and Pharmaceuticals

 

 

8.87

%

 

1M L+575

 

 

 

5,647

 

 

 

5,625

 

 

 

5,511

 

Spendmend Holdings LLC

 

3/1/2028

 

 

Healthcare Technology

 

 

8.63

%

 

SOFR+575

 

 

 

2,956

 

 

 

2,916

 

 

 

2,873

 

STV Group Incorporated

 

12/11/2026

 

 

Construction and Building

 

 

8.37

%

 

3M L+525

 

 

 

9,075

 

 

 

9,011

 

 

 

8,985

 

System Planning and Analysis, Inc. (f/k/a Management Consulting & Research, LLC)

 

8/16/2027

 

 

Aerospace and Defense

 

 

8.73

%

 

SOFR+600

 

 

 

14,888

 

 

 

14,623

 

 

 

14,649

 

Teneo Holdings LLC

 

7/18/2025

 

 

Business Services

 

 

8.38

%

 

3M L+625

 

 

 

2,786

 

 

 

2,757

 

 

 

2,623

 

The Aegis Technologies Group, LLC

 

10/31/2025

 

 

Aerospace and Defense

 

 

9.55

%

 

3M L+500

 

 

 

5,659

 

 

 

5,600

 

 

 

5,603

 

The Bluebird Group LLC

 

7/27/2026

 

 

Professional Services

 

 

10.67

%

 

1M L+700

 

 

 

1,707

 

 

 

1,679

 

 

 

1,724

 

The Infosoft Group, LLC

 

9/16/2024

 

 

Media: Broadcasting and Subscription

 

 

8.47

%

 

3M L+525

 

 

 

12,957

 

 

 

12,952

 

 

 

12,859

 

The Vertex Companies, LLC

 

8/30/2027

 

 

Construction and Engineering

 

 

8.62

%

 

1M L+550

 

 

 

5,578

 

 

 

5,479

 

 

 

5,550

 

TPC Canada Parent, Inc. and TPC US Parent, LLC

 

11/24/2025

 

 

Consumer Goods: Non-Durable

 

 

8.30

%

 

3M L+475

 

 

 

8,744

 

 

 

8,604

 

 

 

8,482

 

TVC Enterprises, LLC

 

3/26/2026

 

 

Diversified Consumer Services

 

 

8.87

%

 

3M L+550

 

 

 

14,952

 

 

 

14,871

 

 

 

14,578

 

TWS Acquisition Corporation

 

6/16/2025

 

 

Diversified Consumer Services

 

 

8.76

%

 

3M L+625

 

 

 

5,468

 

 

 

5,450

 

 

 

5,441

 

Tyto Athene, LLC (New Issue)

 

4/1/2028

 

 

IT Services

 

 

7.76

%

 

3M L+550

 

 

 

15,550

 

 

 

15,421

 

 

 

14,446

 

UBEO, LLC

 

4/3/2024

 

 

Capital Equipment

 

 

8.17

%

 

3M L+450

 

 

 

17,390

 

 

 

17,305

 

 

 

17,129

 

Unique Indoor Comfort, LLC

 

5/24/2027

 

 

Home and Office Furnishings, Housewares

 

 

8.95

%

 

SOFR+525

 

 

 

4,975

 

 

 

4,880

 

 

 

4,866

 

Walker Edison Furniture Company LLC

 

3/31/2027

 

 

Wholesale

 

 

12.42

%

 

3M L+575

 

 

 

12,684

 

 

 

12,438

 

 

 

8,473

 

 

 

 

 

 

 

 

(PIK 3.0%)

 

 

 

 

 

 

 

 

 

 

 

 

-

 

Wildcat Buyerco, Inc.

 

2/27/2026

 

 

Electronic Equipment, Instruments, and Components

 

 

9.45

%

 

SOFR+550

 

 

 

8,546

 

 

 

8,506

 

 

 

8,261

 

Zips Car Wash, LLC

 

3/1/2024

 

 

Automobiles

 

 

10.35

%

 

3M L+725

 

 

 

16,957

 

 

 

16,711

 

 

 

16,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

767,316

 

 

 

751,628

 

Second Lien Secured Debt - 5.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventus Power, Inc.

 

9/29/2024

 

 

Consumer Goods: Durable

 

 

12.17

%

 

3M L+850

 

 

 

3,000

 

 

 

2,963

 

 

 

2,955

 

Total Second Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,963

 

 

 

2,955

 

Equity Securities - 0.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New MPE Holdings, LLC

 

 

—

 

 

Media: Diversified and Production

 

 

—

 

 

 

—

 

 

 

—

 

 

 

—

 

 

 

139

 

Total Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

 

 

139

 

Total Investments - 1,335.9%

 

 

 

 

 

 

 

 

 

 

 

770,280

 

 

 

754,722

 

Cash and Cash Equivalents - 59.7%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,725

 

 

 

33,705

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

33,725

 

 

 

33,705

 

Total Investments and Cash Equivalents —1,395.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

804,005

 

 

$

788,427

 

Liabilities in Excess of Other Assets — (1,295.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(731,931

)

Members' Equity—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

56,496

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable LIBOR or “L”, Secured Overnight Financing Rate or "SOFR", or Prime rate or “P”. The spread may change based on the type of rate used. The terms in the Schedule of Investments disclose the actual interest rate in effect as of the reporting period. LIBOR loans are typically indexed to a 30-day, 60-day, 90-day or 180-day LIBOR rate (1M L, 2M L, 3M L, or 6M L, respectively), at the borrower’s option. All securities are subject to a LIBOR or Prime rate floor where a spread is provided, unless noted. The spread provided includes PIK interest and other fee rates, if any.
(2)
Valued based on PSSL’s accounting policy.
(3)
Represents the purchase of a security with delayed settlement or a revolving line of credit that is currently an unfunded investment. This security does not earn a basis point spread above an index while it is unfunded.

 

 

 

Below are the consolidated statements of assets and liabilities for PSSL ($ in thousands):

 

 

 

 

 

 

 

 

 

 

June 30, 2023

 

 

 

 

 

 

 

(Unaudited)

 

 

 

September 30, 2022

 

Assets

 

 

 

 

 

 

 

Investments at fair value (amortized cost—$827,107 and $770,280, respectively)

$

 

805,217

 

 

$

 

754,722

 

Cash and cash equivalents (cost—$37,943 and $33,725, respectively)

 

 

37,943

 

 

 

 

33,705

 

Interest receivable

 

 

4,556

 

 

 

 

3,025

 

Receivable for investment sold

 

 

—

 

 

 

 

3,637

 

Prepaid expenses and other assets

 

 

724

 

 

 

 

1,722

 

Total assets

 

 

848,440

 

 

 

 

796,811

 

Liabilities

 

 

 

 

 

 

 

Credit facility payable

 

 

41,300

 

 

 

 

259,500

 

2032 Asset-backed debt, net (par—$246,000)

 

 

243,821

 

 

 

 

243,365

 

2035 Asset-backed debt, net (par—$246,000)

 

 

243,370

 

 

 

 

—

 

Notes payable to members

 

 

240,100

 

 

 

 

217,350

 

Payable for investments purchased

 

 

8,950

 

 

 

 

10,414

 

Interest payable on notes to members

 

 

6,363

 

 

 

 

4,719

 

Interest payable on Credit facility and asset backed debt

 

 

9,000

 

 

 

 

3,817

 

Accrued expenses

 

 

746

 

 

 

 

1,150

 

Total liabilities

 

 

793,650

 

 

 

 

740,315

 

Commitments and contingencies(1)

 

 

 

 

 

 

 

Members' equity

 

 

54,790

 

 

 

 

56,496

 

Total liabilities and members' equity

$

 

848,440

 

 

$

 

796,811

 

 

(1)
As of June 30, 2023 and September 30, 2022, PSSL had unfunded commitments to fund investments of $2.0 million and $2.5 million, respectively.

 

Below are the consolidated statements of operations for PSSL ($ in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended June 30,

 

 

Nine months ended June 30,

 

 

 

2023

 

 

 

2022

 

 

2023

 

 

2022

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

23,373

 

 

 

$

13,535

 

 

$

64,282

 

 

$

36,467

 

Other income

 

 

373

 

 

 

 

65

 

 

 

930

 

 

 

1,084

 

Total investment income

 

 

23,746

 

 

 

 

13,600

 

 

 

65,212

 

 

 

37,551

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and expense on credit facility and asset-backed debt

 

 

12,094

 

 

 

 

4,667

 

 

 

30,413

 

 

 

11,514

 

Interest expense on notes to members

 

 

7,986

 

 

 

 

4,510

 

 

 

22,159

 

 

 

11,704

 

Administration fees

 

 

529

 

 

 

 

300

 

 

 

1,553

 

 

 

900

 

General and administrative expenses

 

 

193

 

 

 

 

289

 

 

 

773

 

 

 

867

 

Total expenses

 

 

20,802

 

 

 

 

9,766

 

 

 

54,898

 

 

 

24,985

 

Net investment income

 

 

2,944

 

 

 

 

3,834

 

 

 

10,314

 

 

 

12,566

 

Realized and unrealized gain (loss) on investments and credit facility foreign currency translation:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

93

 

 

 

 

(24

)

 

 

(5,852

)

 

 

(14,956

)

Credit facility foreign currency translation

 

 

—

 

 

 

 

—

 

 

 

(10

)

 

 

—

 

Net change in unrealized appreciation (depreciation) on:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments

 

 

(4,442

)

 

 

 

(5,232

)

 

 

(6,308

)

 

 

6,325

 

Net change in unrealized appreciation (depreciation) on investments and credit facility foreign currency translation

 

 

(4,442

)

 

 

 

(5,232

)

 

 

(6,308

)

 

 

6,325

 

Net realized and unrealized gain (loss) from investments and credit facility foreign currency translation

 

 

(4,349

)

 

 

 

(5,256

)

 

 

(12,170

)

 

 

(8,631

)

Net increase (decrease) in members' equity resulting from operations

 

$

(1,405

)

 

 

$

(1,422

)

 

$

(1,856

)

 

$

3,935

 

 

(*) No management or incentive fees are payable by PSSL. If any fees were to be charged, they would be separately disclosed in the Statement of Operations.