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Investments
 6 Months Ended
Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract]  
Investments

4. INVESTMENTS

 

For the three and six months ended March 31, 2024, purchases of investments, including PIK interest totaled $339.1 million and $642.5 million, respectively. For the same periods in the prior year, purchases of investments, including PIK interest, totaled $85.6 million and $151.2 million, respectively. Sales and repayments of investments for the three and six months ended March 31, 2024 totaled $144.8 million and $248.7 million, respectively. For the three and six months ended March 31, 2023, sales and repayments of investments totaled $62.6 million and $125.6 million, respectively.

Investments and cash and cash equivalents consisted of the following:

 

($ in thousands)

 

March 31, 2024

 

 

September 30, 2023

 

Investment Classification

 

Cost

 

 

Fair Value

 

 

Cost

 

 

Fair Value

 

First lien

 

$

1,080,800

 

 

$

1,074,820

 

 

$

708,452

 

 

$

696,078

 

First lien in PSSL

 

 

210,088

 

 

 

210,088

 

 

 

210,088

 

 

 

210,088

 

Second lien

 

 

148

 

 

 

150

 

 

 

1,113

 

 

 

149

 

Subordinate debt

 

 

18

 

 

 

18

 

 

 

—

 

 

 

—

 

Equity

 

 

108,587

 

 

 

139,695

 

 

 

83,188

 

 

 

109,978

 

Equity interests in PSSL

 

 

90,038

 

 

 

53,112

 

 

 

90,038

 

 

 

50,881

 

Total investments

 

 

1,489,679

 

 

 

1,477,883

 

 

 

1,092,878

 

 

 

1,067,174

 

Cash and cash equivalents

 

 

125,246

 

 

 

125,252

 

 

 

100,555

 

 

 

100,555

 

Total investments and cash and cash equivalents

 

$

1,614,925

 

 

$

1,603,135

 

 

$

1,193,433

 

 

$

1,167,729

 

 

 

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

 

March 31, 2024 (1)

 

 

September 30, 2023 (1)

 

Professional Services

 

 

10

 

%

 

7

 

Aerospace and Defense

 

 

9

 

 

 

6

 

Media

 

 

8

 

 

 

9

 

Healthcare Providers and Services

 

 

7

 

 

 

9

 

Electronic Equipment, Instruments, and Components

 

 

7

 

 

 

3

 

Construction & Engineering

 

 

7

 

 

 

1

 

Personal Products

 

 

6

 

 

 

8

 

IT Services

 

 

5

 

 

 

4

 

Distributors

 

 

4

 

 

 

3

 

Media: Diversified and Production

 

 

4

 

 

 

6

 

Healthcare Technology

 

 

3

 

 

 

4

 

High Tech Industries

 

 

3

 

 

 

5

 

Commercial Services & Supplies

 

 

2

 

 

 

4

 

Construction and Building

 

 

2

 

 

 

3

 

Insurance

 

 

2

 

 

 

3

 

Capital Equipment

 

 

2

 

 

 

2

 

Air Freight and Logistics

 

 

1

 

 

 

1

 

Auto Components

 

 

1

 

 

 

—

 

Automobiles

 

 

1

 

 

 

2

 

Business Services

 

 

1

 

 

 

2

 

Chemicals, Plastics and Rubber

 

 

1

 

 

 

2

 

Consumer Services

 

 

1

 

 

 

2

 

Diversified Consumer Services

 

 

1

 

 

 

3

 

Diversified Financial Services

 

 

1

 

 

 

1

 

Energy Equipment and Services

 

 

1

 

 

 

1

 

Financial Services

 

 

1

 

 

 

1

 

Food Products

 

 

1

 

 

 

1

 

Healthcare Equipment and Supplies

 

 

1

 

 

 

1

 

Hotels, Restaurants and Leisure

 

 

1

 

 

 

2

 

Internet Software and Services

 

 

1

 

 

 

1

 

Leisure Products

 

 

1

 

 

 

1

 

Metals and Mining

 

 

1

 

 

 

—

 

Textiles, Apparel and Luxury Goods

 

 

1

 

 

 

1

 

All Other

 

 

2

 

 

 

1

 

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 March 31, 2024 and September 30, 2023, PSSL had total assets of $941.0 million and $869.4 million, respectively, and its investment portfolio consisted of investments in 106 and 105 portfolio companies, respectively. As of March 31, 2024, at fair value, the largest investment in a single portfolio company in PSSL was $21.4 million and the five largest investments totaled $95.6 million. As of September 30, 2023, at fair value, the largest investment in a single portfolio company in PSSL was $18.5 million and the five largest investments totaled $83.4 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 March 31, 2024 and September 30, 2023, 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 (additional $27.6 million unfunded) and $210.1 million (additional $27.6 million unfunded), respectively, and equity interests of $90.0 million (additional $11.8 million unfunded) and $90.0 million (additional $11.8 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 August 2023 PSSL entered into a $260.0 million (decreased from $325.0 million) senior secured revolving credit facility which bears interest at 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 Preferred Shares of CLO VI, LLC.

 

 

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

 

($ in thousands)

 

March 31, 2024

 

 

September 30, 2023

 

Total investments

 

$

869,684

 

 

$

785,859

 

Weighted average cost yield on income producing investments

 

 

12.0

%

 

 

12.1

%

Number of portfolio companies in PSSL

 

 

106

 

 

 

105

 

Largest portfolio company investment

 

$

21,381

 

 

$

18,463

 

Total of five largest portfolio company investments

 

$

95,589

 

 

$

83,365

 

 

Below is a listing of PSSL’s individual investments as of March 31, 2024 (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 - 1,425.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A1 Garage Merger Sub, LLC

 

12/22/2028

 

 

Commercial Services & Supplies

 

 

11.68

%

 

SOFR+660

 

 

 

2,925

 

 

$

2,875

 

 

$

2,925

 

ACP Avenu Buyer, LLC

 

10/2/2029

 

 

Business Services

 

 

11.65

%

 

SOFR+625

 

 

 

9,975

 

 

 

9,810

 

 

 

9,726

 

ACP Falcon Buyer, Inc.

 

8/1/2029

 

 

Business Services

 

 

11.83

%

 

SOFR+650

 

 

 

18,856

 

 

 

18,509

 

 

 

18,875

 

Ad.net Acquisition, LLC

 

5/7/2026

 

 

Media

 

 

11.57

%

 

SOFR+626

 

 

 

8,753

 

 

 

8,695

 

 

 

8,753

 

Aeronix, Inc

 

12/18/2028

 

 

Aerospace and Defense

 

 

10.81

%

 

SOFR+550

 

 

 

15,960

 

 

 

15,731

 

 

 

15,800

 

Alpine Acquisition Corp II

 

11/30/2026

 

 

Containers and Packaging

 

 

11.43

%

 

SOFR+600

 

 

 

12,787

 

 

 

12,508

 

 

 

12,276

 

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

 

6/30/2026

 

 

Media: Advertising, Printing & Publishing

 

 

11.23

%

 

SOFR+575

 

 

 

4,859

 

 

 

4,837

 

 

 

4,835

 

Anteriad, LLC (f/k/a MeritDirect, LLC) - Incremental Term Loan

 

6/30/2026

 

 

Media: Advertising, Printing & Publishing

 

 

11.00

%

 

SOFR+575

 

 

 

4,750

 

 

 

4,708

 

 

 

4,726

 

Any Hour Services

 

7/21/2027

 

 

Professional Services

 

 

11.00

%

 

SOFR+585

 

 

 

7,472

 

 

 

7,328

 

 

 

7,397

 

Applied Technical Services, LLC

 

12/29/2026

 

 

Commercial Services & Supplies

 

 

11.20

%

 

SOFR+615

 

 

 

11,213

 

 

 

11,104

 

 

 

10,990

 

Arcfield Acquisition Corp.

 

8/3/2029

 

 

Aerospace and Defense

 

 

11.54

%

 

SOFR+625

 

 

 

11,171

 

 

 

11,021

 

 

 

11,060

 

Beta Plus Technologies, Inc.

 

7/1/2029

 

 

Business Services

 

 

11.10

%

 

SOFR+575

 

 

 

4,925

 

 

 

4,847

 

 

 

4,790

 

BioDerm, Inc.

 

1/31/2028

 

 

Healthcare and Pharmaceuticals

 

 

11.83

%

 

SOFR+650

 

 

 

8,933

 

 

 

8,837

 

 

 

8,843

 

Blackhawk Industrial Distribution, Inc.

 

9/17/2026

 

 

Distributors

 

 

11.70

%

 

SOFR+625

 

 

 

15,053

 

 

 

14,854

 

 

 

14,978

 

BlueHalo Financing Holdings, LLC

 

10/31/2025

 

 

Aerospace and Defense

 

 

10.42

%

 

SOFR+490

 

 

 

5,575

 

 

 

5,545

 

 

 

5,491

 

Broder Bros., Co.

 

12/4/2025

 

 

Consumer Products

 

 

11.61

%

 

SOFR+626

 

 

 

2,305

 

 

 

2,305

 

 

 

2,305

 

Burgess Point Purchaser Corporation

 

9/26/2029

 

 

Automotive

 

 

10.68

%

 

SOFR+525

 

 

 

444

 

 

 

417

 

 

 

423

 

By Light Professional IT Services, LLC

 

5/16/2025

 

 

High Tech Industries

 

 

12.37

%

 

SOFR+688

 

 

 

13,387

 

 

 

13,350

 

 

 

13,253

 

Cartessa Aesthetics, LLC

 

6/14/2028

 

 

Distributors

 

 

11.06

%

 

SOFR+575

 

 

 

9,587

 

 

 

9,470

 

 

 

9,587

 

CF512, Inc.

 

8/20/2026

 

 

Media

 

 

11.53

%

 

SOFR+619

 

 

 

6,785

 

 

 

6,704

 

 

 

6,684

 

Challenger Performance Optimization, Inc.

 

8/31/2024

 

 

Business Services

 

 

13.18

%

 

SOFR+775

 

 

 

9,119

 

 

 

9,109

 

 

 

8,800

 

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Confluent Health, LLC

 

10/28/2028

 

 

Healthcare and Pharmaceuticals

 

 

9.44

%

 

SOFR+400

 

 

 

6,743

 

 

 

6,522

 

 

 

6,659

 

Connatix Buyer, Inc.

 

7/13/2027

 

 

Media

 

 

11.09

%

 

SOFR+576

 

 

 

3,795

 

 

 

3,749

 

 

 

3,643

 

Crane 1 Services, Inc.

 

8/16/2027

 

 

Commercial Services & Supplies

 

 

10.81

%

 

SOFR+525

 

 

 

2,078

 

 

 

2,059

 

 

 

2,078

 

Dr. Squatch, LLC

 

8/31/2027

 

 

Personal Products

 

 

11.16

%

 

SOFR+585

 

 

 

14,637

 

 

 

14,455

 

 

 

14,637

 

DRI Holding Inc.

 

12/21/2028

 

 

Media

 

 

10.68

%

 

SOFR+525

 

 

 

2,614

 

 

 

2,419

 

 

 

2,442

 

DRS Holdings III, Inc.

 

11/3/2025

 

 

Consumer Goods: Durable

 

 

11.71

%

 

SOFR+640

 

 

 

14,149

 

 

 

14,114

 

 

 

14,036

 

Duraco Specialty Tapes LLC

 

6/30/2024

 

 

Containers and Packaging

 

 

12.43

%

 

SOFR+710

 

 

 

10,849

 

 

 

10,821

 

 

 

10,816

 

ECL Entertainment, LLC

 

8/31/2030

 

 

Hotel, Gaming and Leisure

 

 

10.08

%

 

SOFR+475

 

 

 

4,975

 

 

 

4,894

 

 

 

4,989

 

EDS Buyer, LLC

 

1/10/2029

 

 

Electronic Equipment, Instruments, and Components

 

 

11.56

%

 

SOFR+625

 

 

 

8,910

 

 

 

8,801

 

 

 

8,732

 

Exigo Intermediate II, LLC

 

3/15/2027

 

 

Software

 

 

11.43

%

 

SOFR+610

 

 

 

12,611

 

 

 

12,463

 

 

 

12,358

 

ETE Intermediate II, LLC

 

5/29/2029

 

 

Diversified Consumer Services

 

 

11.84

%

 

SOFR+650

 

 

 

12,342

 

 

 

12,113

 

 

 

12,465

 

Fairbanks Morse Defense

 

6/17/2028

 

 

Aerospace and Defense

 

 

10.32

%

 

SOFR+475

 

 

 

10,143

 

 

 

10,094

 

 

 

10,143

 

Global Holdings InterCo LLC

 

3/16/2026

 

 

Diversified Financial Services

 

 

11.45

%

 

SOFR+610

 

 

 

3,716

 

 

 

3,707

 

 

 

3,530

 

Graffiti Buyer, Inc.

 

8/10/2027

 

 

Trading Companies & Distributors

 

 

10.90

%

 

SOFR+560

 

 

 

2,333

 

 

 

2,310

 

 

 

2,310

 

Hancock Roofing and Construction L.L.C.

 

12/31/2026

 

 

Insurance

 

 

10.90

%

 

SOFR+560

 

 

 

2,153

 

 

 

2,126

 

 

 

2,024

 

Hills Distribution, Inc

 

11/8/2029

 

 

Business Services

 

 

11.32

%

 

SOFR+600

 

 

 

9,002

 

 

 

8,875

 

 

 

8,867

 

HW Holdco, LLC

 

5/10/2026

 

 

Media

 

 

11.72

%

 

SOFR+640

 

 

 

3,513

 

 

 

3,491

 

 

 

3,460

 

Imagine Acquisitionco, LLC

 

11/15/2027

 

 

Software

 

 

10.43

%

 

SOFR+510

 

 

 

9,201

 

 

 

9,052

 

 

 

9,109

 

Inception Fertility Ventures, LLC

 

12/31/2024

 

 

Healthcare Providers and Services

 

 

12.64

%

 

SOFR+725

 

 

 

16,370

 

 

 

16,196

 

 

 

16,370

 

Infinity Home Services Holdco, Inc.

 

12/28/2028

 

 

Commercial Services & Supplies

 

 

12.16

%

 

SOFR+685

 

 

 

6,060

 

 

 

5,958

 

 

 

6,060

 

Integrative Nutrition, LLC

 

1/31/2025

 

 

Diversified Consumer Services

 

 

12.46

%

 

SOFR+715

 

 

 

11,156

 

 

 

11,144

 

 

 

10,375

 

 

 

 

 

 

 

 

(PIK 2.25%)

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Integrity Marketing Acquisition, LLC

 

8/27/2026

 

 

Insurance

 

 

11.49

%

 

SOFR+615

 

 

 

5,880

 

 

 

5,840

 

 

 

5,821

 

Inventus Power, Inc.

 

6/30/2025

 

 

Consumer Goods: Durable

 

 

12.94

%

 

SOFR+761

 

 

 

8,205

 

 

 

8,094

 

 

 

8,041

 

ITI Holdings, Inc.

 

3/3/2028

 

 

IT Services

 

 

10.97

%

 

SOFR+560

 

 

 

3,920

 

 

 

3,869

 

 

 

3,881

 

Kinetic Purchaser, LLC

 

11/10/2027

 

 

Personal Products

 

 

11.46

%

 

SOFR+615

 

 

 

16,578

 

 

 

16,303

 

 

 

16,578

 

Lash OpCo, LLC

 

2/18/2027

 

 

Personal Products

 

 

13.23

%

 

SOFR+775

 

 

 

14,359

 

 

 

14,175

 

 

 

14,215

 

LAV Gear Holdings, Inc.

 

10/31/2025

 

 

Capital Equipment

 

 

11.72

%

 

SOFR+640

 

 

 

14,970

 

 

 

14,950

 

 

 

14,760

 

Lightspeed Buyer Inc.

 

2/3/2026

 

 

Healthcare Providers and Services

 

 

10.68

%

 

SOFR+535

 

 

 

11,375

 

 

 

11,280

 

 

 

11,375

 

LJ Avalon Holdings, LLC

 

1/31/2030

 

 

Environmental Industries

 

 

11.67

%

 

SOFR+640

 

 

 

2,572

 

 

 

2,528

 

 

 

2,547

 

Loving Tan Intermediate II, Inc.

 

5/31/2028

 

 

Consumer Products

 

 

12.31

%

 

SOFR+700

 

 

 

7,444

 

 

 

7,316

 

 

 

7,295

 

Lucky Bucks, LLC - First-Out Term Loan

 

10/2/2028

 

 

Hotel, Gaming and Leisure

 

 

12.97

%

 

SOFR+765

 

 

 

261

 

 

 

261

 

 

 

261

 

Lucky Bucks, LLC - Last-Out Term Loan

 

10/2/2029

 

 

Hotel, Gaming and Leisure

 

 

12.97

%

 

SOFR+765

 

 

 

522

 

 

 

522

 

 

 

522

 

MAG DS Corp

 

4/1/2027

 

 

Aerospace and Defense

 

 

10.90

%

 

SOFR+550

 

 

 

2,079

 

 

 

2,001

 

 

 

1,983

 

Magenta Buyer, LLC

 

7/31/2028

 

 

Software

 

 

10.57

%

 

SOFR+500

 

 

 

2,991

 

 

 

2,844

 

 

 

1,759

 

Marketplace Events, LLC - Super Priority First Lien Term Loan

 

9/30/2025

 

 

Media: Diversified and Production

 

 

10.72

%

 

SOFR+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

 

 

10.72

%

 

SOFR+525

 

 

 

4,837

 

 

 

3,921

 

 

 

4,837

 

Mars Acquisition Holdings Corp.

 

5/14/2026

 

 

Media

 

 

10.96

%

 

SOFR+565

 

 

 

11,529

 

 

 

11,443

 

 

 

11,529

 

MBS Holdings, Inc.

 

4/16/2027

 

 

Internet Software and Services

 

 

11.23

%

 

SOFR+585

 

 

 

8,373

 

 

 

8,274

 

 

 

8,261

 

MDI Buyer, Inc.

 

7/25/2028

 

 

Chemicals, Plastics and Rubber

 

 

10.87

%

 

SOFR+550

 

 

 

6,348

 

 

 

6,250

 

 

 

6,260

 

Meadowlark Acquirer, LLC

 

12/10/2027

 

 

Professional Services

 

 

11.20

%

 

SOFR+565

 

 

 

2,360

 

 

 

2,328

 

 

 

2,312

 

Medina Health, LLC

 

10/20/2028

 

 

Healthcare and Pharmaceuticals

 

 

11.56

%

 

SOFR+625

 

 

 

19,296

 

 

 

18,985

 

 

 

19,103

 

Mission Critical Electronics, Inc.

 

3/31/2025

 

 

Capital Equipment

 

 

11.20

%

 

SOFR+590

 

 

 

5,739

 

 

 

5,736

 

 

 

5,739

 

MOREGroup Holdings, Inc

 

1/16/2030

 

 

Business Services

 

 

11.08

%

 

SOFR+590

 

 

 

13,132

 

 

 

12,946

 

 

 

13,001

 

Municipal Emergency Services, Inc.

 

9/28/2027

 

 

Distributors

 

 

10.45

%

 

SOFR+515

 

 

 

3,413

 

 

 

3,368

 

 

 

3,413

 

NBH Group LLC

 

8/19/2026

 

 

Healthcare, Education & Childcare

 

 

11.18

%

 

SOFR+575

 

 

 

10,657

 

 

 

10,538

 

 

 

10,177

 

Neptune Flood Incorporated

 

5/9/2029

 

 

Insurance

 

 

11.40

%

 

SOFR+600

 

 

 

4,809

 

 

 

4,747

 

 

 

4,809

 

NORA Acquisition, LLC

 

8/31/2029

 

 

Healthcare Providers and Services

 

 

11.68

%

 

SOFR+635

 

 

 

21,381

 

 

 

21,001

 

 

 

21,381

 

One Stop Mailing, LLC

 

5/7/2027

 

 

Air Freight and Logistics

 

 

11.69

%

 

SOFR+636

 

 

 

15,765

 

 

 

15,535

 

 

 

15,765

 

ORL Acquisitions, Inc.

 

9/3/2027

 

 

Consumer Finance

 

 

14.75

%

 

SOFR+940

 

 

 

2,076

 

 

 

2,058

 

 

 

1,619

 

Output Services Group, Inc - First-Out Term Loan

 

11/30/2028

 

 

Business Services

 

 

13.82

%

 

SOFR+843

 

 

 

821

 

 

 

821

 

 

 

821

 

Output Services Group, Inc - Last-Out Term Loan

 

5/30/2028

 

 

Business Services

 

 

12.07

%

 

SOFR+668

 

 

 

1,667

 

 

 

1,667

 

 

 

1,667

 

Owl Acquisition, LLC

 

2/4/2028

 

 

Professional Services

 

 

10.68

%

 

SOFR+550

 

 

 

3,893

 

 

 

3,839

 

 

 

3,834

 

Ox Two, LLC

 

5/18/2026

 

 

Construction and Building

 

 

12.82

%

 

SOFR+751

 

 

 

4,345

 

 

 

4,315

 

 

 

4,345

 

Pacific Purchaser, LLC

 

9/30/2028

 

 

Business Services

 

 

11.43

%

 

SOFR+625

 

 

 

11,998

 

 

 

11,792

 

 

 

11,998

 

Issuer Name

 

Maturity

 

 

Industry

 

Current
 Coupon

 

 

Basis Point
Spread Above
Index (1)

 

 

Par

 

 

Cost

 

 

Fair Value (2)

 

PH Beauty Holdings III, Inc.

 

9/29/2025

 

 

Wholesale

 

 

10.72

%

 

SOFR+500

 

 

 

9,443

 

 

$

9,293

 

 

$

9,254

 

PL Acquisitionco, LLC

 

11/9/2027

 

 

Textiles, Apparel and Luxury Goods

 

 

12.43

%

 

SOFR+710

 

 

 

7,700

 

 

 

7,612

 

 

 

6,815

 

 

 

 

 

 

 

 

(PIK 4.00%)

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

PlayPower, Inc.

 

5/8/2026

 

 

Consumer Goods: Durable

 

 

10.98

%

 

SOFR+565

 

 

 

2,544

 

 

 

2,495

 

 

 

2,493

 

Pragmatic Institute, LLC

 

7/6/2028

 

 

Education

 

 

11.09

%

 

SOFR+575

 

 

 

11,081

 

 

 

10,956

 

 

 

9,474

 

Quantic Electronics, LLC

 

11/19/2026

 

 

Aerospace and Defense

 

 

11.66

%

 

SOFR+635

 

 

 

2,789

 

 

 

2,770

 

 

 

2,733

 

Rancho Health MSO, Inc.

 

12/18/2025

 

 

Healthcare Providers and Services

 

 

10.92

%

 

SOFR+585

 

 

 

1,024

 

 

 

1,024

 

 

 

1,024

 

Reception Purchaser, LLC

 

2/28/2028

 

 

Air Freight and Logistics

 

 

11.45

%

 

SOFR+615

 

 

 

4,913

 

 

 

4,860

 

 

 

4,176

 

Recteq, LLC

 

1/29/2026

 

 

Leisure Products

 

 

12.46

%

 

SOFR+715

 

 

 

4,850

 

 

 

4,812

 

 

 

4,729

 

Research Now Group, LLC and Dynata, LLC

 

12/20/2024

 

 

Diversified Consumer Services

 

 

11.07

%

 

SOFR+576

 

 

 

12,366

 

 

 

12,304

 

 

 

10,511

 

Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)

 

6/15/2029

 

 

High Tech Industries

 

 

11.43

%

 

SOFR+625

 

 

 

3,730

 

 

 

3,662

 

 

 

3,674

 

Sales Benchmark Index LLC

 

1/3/2025

 

 

Professional Services

 

 

11.51

%

 

SOFR+620

 

 

 

9,268

 

 

 

9,243

 

 

 

9,268

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

 

Wholesale

 

 

12.93

%

 

SOFR+760

 

 

 

5,079

 

 

 

5,066

 

 

 

5,079

 

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Schlesinger Global, Inc.

 

7/14/2025

 

 

Business Services

 

 

12.68

%

 

SOFR+715

 

 

 

11,830

 

 

 

11,825

 

 

 

11,594

 

 

 

 

 

 

 

 

(PIK 0.50%)

 

 

 

 

 

 

 

 

 

-

 

 

 

-

 

Seaway Buyer, LLC

 

6/13/2029

 

 

Chemicals, Plastics and Rubber

 

 

11.46

%

 

SOFR+615

 

 

 

4,925

 

 

 

4,863

 

 

 

4,777

 

Sigma Defense Systems, LLC

 

12/18/2027

 

 

Aerospace and Defense

 

 

12.46

%

 

SOFR+715

 

 

 

12,573

 

 

 

12,402

 

 

 

12,447

 

Simplicity Financial Marketing Group Holdings, Inc

 

12/2/2026

 

 

Diversified Financial Services

 

 

11.70

%

 

SOFR+640

 

 

 

11,416

 

 

 

11,237

 

 

 

11,302

 

Skopima Consilio Parent, LLC

 

5/17/2028

 

 

Business Services

 

 

9.94

%

 

SOFR+450

 

 

 

1,297

 

 

 

1,273

 

 

 

1,289

 

Smartronix, LLC

 

11/23/2028

 

 

Aerospace and Defense

 

 

11.57

%

 

SOFR+635

 

 

 

4,888

 

 

 

4,821

 

 

 

4,888

 

Smile Brands Inc.

 

10/14/2025

 

 

Healthcare and Pharmaceuticals

 

 

9.91

%

 

SOFR+450

 

 

 

11,736

 

 

 

11,707

 

 

 

10,468

 

Solutionreach, Inc.

 

7/17/2025

 

 

Healthcare and Pharmaceuticals

 

 

12.46

%

 

SOFR+700

 

 

 

4,582

 

 

 

4,554

 

 

 

4,577

 

Spendmend Holdings LLC

 

3/1/2028

 

 

Healthcare Technology

 

 

10.95

%

 

SOFR+565

 

 

 

4,091

 

 

 

4,032

 

 

 

4,091

 

Summit Behavioral Healthcare, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.35

%

 

SOFR+501

 

 

 

1,777

 

 

 

1,694

 

 

 

1,777

 

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

 

8/16/2027

 

 

Aerospace and Defense

 

 

11.08

%

 

SOFR+590

 

 

 

14,663

 

 

 

14,495

 

 

 

14,648

 

Team Services Group, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.49

%

 

SOFR+500

 

 

 

345

 

 

 

333

 

 

 

344

 

The Bluebird Group LLC

 

7/27/2026

 

 

Professional Services

 

 

11.96

%

 

SOFR+665

 

 

 

8,553

 

 

 

8,449

 

 

 

8,553

 

The Vertex Companies, LLC

 

8/31/2027

 

 

Construction and Engineering

 

 

11.42

%

 

SOFR+610

 

 

 

7,676

 

 

 

7,565

 

 

 

7,676

 

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

 

11/24/2025

 

 

Consumer Goods: Non-Durable

 

 

10.94

%

 

SOFR+565

 

 

 

16,617

 

 

 

16,434

 

 

 

16,601

 

Transgo, LLC

 

12/29/2028

 

 

Automotive

 

 

11.33

%

 

SOFR+600

 

 

 

19,826

 

 

 

19,547

 

 

 

19,628

 

TWS Acquisition Corporation

 

6/16/2025

 

 

Diversified Consumer Services

 

 

11.73

%

 

SOFR+640

 

 

 

3,418

 

 

 

3,417

 

 

 

3,418

 

Tyto Athene, LLC

 

4/1/2028

 

 

IT Services

 

 

10.98

%

 

SOFR+565

 

 

 

14,670

 

 

 

14,579

 

 

 

13,745

 

Urology Management Holdings, Inc.

 

6/15/2026

 

 

Healthcare and Pharmaceuticals

 

 

11.68

%

 

SOFR+665

 

 

 

6,858

 

 

 

6,757

 

 

 

6,775

 

Walker Edison Furniture Company LLC (4)

 

3/1/2029

 

 

Wholesale

 

 

0.00

%

 

 

 

 

 

4,645

 

 

 

4,465

 

 

 

3,437

 

Walker Edison Furniture Company LLC - Junior Revolving Credit Facility (4)

 

3/1/2029

 

 

Wholesale

 

 

0.00

%

 

 

 

 

 

1,667

 

 

 

1,667

 

 

 

1,667

 

Walker Edison Furniture Company LLC - DDTL - Unfunded (3)(4)

 

3/1/2029

 

 

Wholesale

 

 

 

 

 

 

 

 

604

 

 

 

-

 

 

 

(157

)

Watchtower Buyer, LLC

 

12/3/2029

 

 

Diversified Consumer Services

 

 

11.31

%

 

SOFR+600

 

 

 

12,250

 

 

 

12,057

 

 

 

12,152

 

Wildcat Buyerco, Inc.

 

2/27/2027

 

 

Electronic Equipment, Instruments, and Components

 

 

11.06

%

 

SOFR+575

 

 

 

16,097

 

 

 

15,971

 

 

 

16,016

 

Zips Car Wash, LLC

 

12/31/2024

 

 

Automobiles

 

 

12.68

%

 

SOFR+735

 

 

 

16,743

 

 

 

16,699

 

 

 

16,368

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

873,061

 

 

 

865,487

 

Equity Securities - 6.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lucky Bucks, LLC

 

 

—

 

 

Hotel, Gaming and Leisure

 

 

—

 

 

 

—

 

 

 

74

 

 

 

2,062

 

 

 

2,104

 

New MPE Holdings, LLC

 

 

—

 

 

Media: Diversified and Production

 

 

—

 

 

 

—

 

 

 

-

 

 

 

-

 

 

 

1,030

 

Output Services Group, Inc

 

 

—

 

 

Business Services

 

 

—

 

 

 

—

 

 

 

126

 

 

 

1,012

 

 

 

1,063

 

Walker Edison Furniture - Common Equity

 

 

—

 

 

Wholesale

 

 

—

 

 

 

—

 

 

 

36

 

 

 

3,393

 

 

 

-

 

Total Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,467

 

 

 

4,197

 

Total Investments - 1,432.8%

 

 

 

 

 

 

 

 

 

 

 

879,528

 

 

 

869,684

 

Cash and Cash Equivalents - 103.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,892

 

 

 

62,892

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

62,892

 

 

 

62,892

 

Total Investments and Cash Equivalents —1,536.4%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

942,420

 

 

$

932,576

 

Liabilities in Excess of Other Assets — (1,436.4)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(871,877

)

Members' Equity—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

60,699

 

 

(1)
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable 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 Consolidated 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 SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR 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 a 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.
(4)
Security currently on interest non-accrual status.

 

Below is a listing of PSSL’s individual investments as of September 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 - 1,347.5%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

A1 Garage Merger Sub, LLC

 

12/22/2028

 

 

Commercial Services & Supplies

 

 

11.84

%

 

SOFR+660

 

 

 

2,940

 

 

$

2,886

 

 

$

2,925

 

Ad.net Acquisition, LLC

 

5/7/2026

 

 

Media

 

 

11.65

%

 

SOFR+626

 

 

 

8,798

 

 

 

8,723

 

 

 

8,754

 

Alpine Acquisition Corp II

 

11/30/2026

 

 

Containers and Packaging

 

 

11.24

%

 

SOFR+600

 

 

 

12,852

 

 

 

12,535

 

 

 

12,338

 

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

 

5/23/2024

 

 

Media: Advertising, Printing & Publishing

 

 

11.04

%

 

SOFR+550

 

 

 

5,001

 

 

 

4,971

 

 

 

4,913

 

Anteriad Holdings Inc (fka MeritDirect) March 2023

 

5/23/2024

 

 

Media: Advertising, Printing & Publishing

 

 

12.04

%

 

SOFR+650

 

 

 

4,875

 

 

 

4,817

 

 

 

4,814

 

Any Hour Services

 

7/21/2027

 

 

Professional Services

 

 

11.59

%

 

SOFR+585

 

 

 

7,510

 

 

 

7,348

 

 

 

7,360

 

Apex Service Partners, LLC

 

7/31/2025

 

 

Diversified Consumer Services

 

 

10.52

%

 

SOFR+525

 

 

 

1,002

 

 

 

1,002

 

 

 

1,000

 

Apex Service Partners, LLC Term Loan B

 

7/31/2025

 

 

Diversified Consumer Services

 

 

11.04

%

 

SOFR+550

 

 

 

2,187

 

 

 

2,187

 

 

 

2,181

 

Apex Service Partners, LLC Term Loan C

 

7/31/2025

 

 

Diversified Consumer Services

 

 

10.69

%

 

SOFR+525

 

 

 

11,013

 

 

 

10,972

 

 

 

10,985

 

Applied Technical Services, LLC

 

12/29/2026

 

 

Commercial Services & Supplies

 

 

11.54

%

 

SOFR+615

 

 

 

9,579

 

 

 

9,475

 

 

 

9,387

 

Applied Technical Services, LLC - DDTL Unfunded (3)

 

12/29/2026

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

194

 

 

 

-

 

 

 

(2

)

Arcfield Acquisition Corp.

 

8/3/2029

 

 

Aerospace and Defense

 

 

11.62

%

 

SOFR+625

 

 

 

9,218

 

 

 

9,093

 

 

 

9,126

 

Beta Plus Technologies, Inc.

 

7/1/2029

 

 

Business Services

 

 

11.14

%

 

SOFR+575

 

 

 

4,950

 

 

 

4,863

 

 

 

4,604

 

BioDerm, Inc.

 

1/31/2028

 

 

Healthcare and Pharmaceuticals

 

 

11.83

%

 

SOFR+650

 

 

 

8,978

 

 

 

8,874

 

 

 

8,933

 

Blackhawk Industrial Distribution, Inc.

 

9/17/2026

 

 

Distributors

 

 

11.79

%

 

SOFR+640

 

 

 

15,132

 

 

 

14,928

 

 

 

14,905

 

Broder Bros., Co.

 

12/4/2025

 

 

Consumer Products

 

 

11.50

%

 

SOFR+626

 

 

 

2,349

 

 

 

2,349

 

 

 

2,349

 

Burgess Point Purchaser Corporation

 

9/26/2029

 

 

Automotive

 

 

10.67

%

 

SOFR+525

 

 

 

447

 

 

 

418

 

 

 

420

 

By Light Professional IT Services, LLC

 

5/16/2025

 

 

High Tech Industries

 

 

12.43

%

 

SOFR+688

 

 

 

13,821

 

 

 

13,778

 

 

 

13,579

 

Cadence Aerospace, LLC

 

11/14/2023

 

 

Aerospace and Defense

 

 

12.07

%

 

SOFR+665

 

 

 

4,011

 

 

 

4,010

 

 

 

4,011

 

 

 

 

 

 

 

 

(PIK 2.00%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Cartessa Aesthetics, LLC

 

6/14/2028

 

 

Distributors

 

 

11.39

%

 

SOFR+600

 

 

 

9,636

 

 

 

9,509

 

 

 

9,636

 

CF512, Inc.

 

8/20/2026

 

 

Media

 

 

11.60

%

 

SOFR+619

 

 

 

6,820

 

 

 

6,722

 

 

 

6,684

 

CHA Holdings, Inc.

 

4/10/2025

 

 

Construction and Engineering

 

 

10.15

%

 

SOFR+476

 

 

 

5,499

 

 

 

5,455

 

 

 

5,499

 

Challenger Performance Optimization, Inc.

 

8/31/2024

 

 

Business Services

 

 

12.18

%

 

SOFR+675

 

 

 

9,232

 

 

 

9,201

 

 

 

8,955

 

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Confluent Health, LLC

 

10/28/2028

 

 

Healthcare and Pharmaceuticals

 

 

9.32

%

 

SOFR+400

 

 

 

6,797

 

 

 

6,559

 

 

 

6,445

 

Connatix Buyer, Inc.

 

7/13/2027

 

 

Media

 

 

11.16

%

 

SOFR+576

 

 

 

3,815

 

 

 

3,762

 

 

 

3,681

 

Crane 1 Services, Inc.

 

8/16/2027

 

 

Commercial Services & Supplies

 

 

10.90

%

 

SOFR+551

 

 

 

2,089

 

 

 

2,067

 

 

 

2,079

 

Dr. Squatch, LLC

 

8/31/2027

 

 

Personal Products

 

 

11.24

%

 

SOFR+585

 

 

 

14,712

 

 

 

14,511

 

 

 

14,712

 

DRI Holding Inc.

 

12/21/2028

 

 

Media

 

 

10.67

%

 

SOFR+525

 

 

 

2,627

 

 

 

2,418

 

 

 

2,394

 

DRS Holdings III, Inc.

 

11/3/2025

 

 

Consumer Goods: Durable

 

 

11.79

%

 

SOFR+640

 

 

 

14,429

 

 

 

14,376

 

 

 

14,256

 

Duraco Specialty Tapes LLC

 

6/30/2024

 

 

Containers and Packaging

 

 

11.89

%

 

SOFR+650

 

 

 

10,904

 

 

 

10,838

 

 

 

10,740

 

ECL Entertainment, LLC

 

8/31/2030

 

 

Hotel, Gaming and Leisure

 

 

10.07

%

 

SOFR+475

 

 

 

5,000

 

 

 

4,900

 

 

 

4,985

 

EDS Buyer, LLC

 

1/10/2029

 

 

Electronic Equipment, Instruments, and Components

 

 

11.64

%

 

SOFR+625

 

 

 

8,955

 

 

 

8,833

 

 

 

8,821

 

Electro Rent Corporation

 

1/17/2024

 

 

Electronic Equipment, Instruments, and Components

 

 

11.00

%

 

SOFR+550

 

 

 

2,219

 

 

 

2,200

 

 

 

2,171

 

Exigo Intermediate II, LLC

 

3/15/2027

 

 

Software

 

 

11.17

%

 

SOFR+585

 

 

 

12,675

 

 

 

12,505

 

 

 

12,422

 

ETE Intermediate II, LLC

 

5/29/2029

 

 

Diversified Consumer Services

 

 

11.89

%

 

SOFR+650

 

 

 

12,404

 

 

 

12,154

 

 

 

12,193

 

Fairbanks Morse Defense

 

6/17/2028

 

 

Aerospace and Defense

 

 

10.40

%

 

SOFR+475

 

 

 

10,195

 

 

 

10,143

 

 

 

10,114

 

Global Holdings InterCo LLC

 

3/16/2026

 

 

Diversified Financial Services

 

 

11.96

%

 

SOFR+660

 

 

 

3,736

 

 

 

3,724

 

 

 

3,549

 

Graffiti Buyer, Inc.

 

8/10/2027

 

 

Trading Companies & Distributors

 

 

10.99

%

 

SOFR+575

 

 

 

2,345

 

 

 

2,316

 

 

 

2,322

 

Hancock Roofing and Construction L.L.C.

 

12/31/2026

 

 

Insurance

 

 

10.92

%

 

SOFR+560

 

 

 

2,250

 

 

 

2,217

 

 

 

2,194

 

Holdco Sands Intermediate, LLC

 

11/23/2028

 

 

Aerospace and Defense

 

 

11.32

%

 

SOFR+585

 

 

 

4,913

 

 

 

4,838

 

 

 

4,913

 

HW Holdco, LLC

 

12/10/2024

 

 

Media

 

 

11.75

%

 

SOFR+640

 

 

 

3,014

 

 

 

2,988

 

 

 

2,968

 

Imagine Acquisitionco, LLC

 

11/15/2027

 

 

Software

 

 

10.72

%

 

SOFR+535

 

 

 

9,248

 

 

 

9,075

 

 

 

9,110

 

Inception Fertility Ventures, LLC

 

12/31/2024

 

 

Healthcare Providers and Services

 

 

12.51

%

 

SOFR+715

 

 

 

16,453

 

 

 

16,257

 

 

 

16,453

 

Infinity Home Services Holdco, Inc.

 

12/28/2028

 

 

Commercial Services & Supplies

 

 

12.24

%

 

SOFR+685

 

 

 

6,090

 

 

 

5,979

 

 

 

6,090

 

Integrated Data Services

 

8/1/2029

 

 

Business Services

 

 

11.87

%

 

SOFR+650

 

 

 

18,904

 

 

 

18,532

 

 

 

18,463

 

Integrative Nutrition, LLC

 

1/31/2025

 

 

Diversified Consumer Services

 

 

12.54

%

 

SOFR+700

 

 

 

11,105

 

 

 

11,083

 

 

 

10,439

 

 

 

 

 

 

 

 

(PIK 2.25%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Integrity Marketing Acquisition, LLC

 

8/27/2026

 

 

Insurance

 

 

11.57

%

 

SOFR+575

 

 

 

5,906

 

 

 

5,851

 

 

 

5,847

 

Inventus Power, Inc.

 

6/30/2025

 

 

Consumer Goods: Durable

 

 

12.93

%

 

SOFR+761

 

 

 

8,246

 

 

 

8,104

 

 

 

8,080

 

ITI Holdings, Inc.

 

3/3/2028

 

 

IT Services

 

 

11.06

%

 

SOFR+560

 

 

 

3,940

 

 

 

3,886

 

 

 

3,861

 

K2 Pure Solutions NoCal, L.P.

 

12/20/2023

 

 

Chemicals, Plastics and Rubber

 

 

13.42

%

 

SOFR+810

 

 

 

15,509

 

 

 

15,487

 

 

 

15,509

 

Kinetic Purchaser, LLC

 

11/10/2027

 

 

Personal Products

 

 

11.54

%

 

SOFR+615

 

 

 

16,662

 

 

 

16,346

 

 

 

16,412

 

Lash OpCo, LLC

 

2/18/2027

 

 

Personal Products

 

 

12.13

%

 

SOFR+675

 

 

 

14,210

 

 

 

13,989

 

 

 

14,068

 

LAV Gear Holdings, Inc.

 

10/31/2024

 

 

Capital Equipment

 

 

11.74

%

 

SOFR+643

 

 

 

15,042

 

 

 

14,997

 

 

 

14,862

 

Lightspeed Buyer Inc.

 

2/3/2026

 

 

Healthcare Providers and Services

 

 

10.70

%

 

SOFR+535

 

 

 

12,056

 

 

 

11,911

 

 

 

11,935

 

LJ Avalon Holdings, LLC

 

1/31/2030

 

 

Environmental Industries

 

 

11.77

%

 

SOFR+640

 

 

 

2,585

 

 

 

2,537

 

 

 

2,534

 

Loving Tan Intermediate II, Inc.

 

5/26/2028

 

 

Consumer Products

 

 

12.39

%

 

SOFR+700

 

 

 

7,481

 

 

 

7,337

 

 

 

7,369

 

Lucky Bucks, LLC (4)

 

7/20/2027

 

 

Hotel, Gaming and Leisure

 

 

0.00

%

 

 

 

 

 

4,489

 

 

 

4,207

 

 

 

1,182

 

Lucky Bucks. LLC - OpCo DIP Loans

 

9/30/2025

 

 

Hotel, Gaming and Leisure

 

 

15.33

%

 

SOFR+1000

 

 

 

160

 

 

 

158

 

 

 

160

 

MAG DS Corp

 

4/1/2027

 

 

Aerospace and Defense

 

 

10.99

%

 

SOFR+550

 

 

 

2,097

 

 

 

2,007

 

 

 

1,986

 

Magenta Buyer, LLC

 

7/31/2028

 

 

Software

 

 

10.63

%

 

SOFR+500

 

 

 

3,006

 

 

 

2,845

 

 

 

2,228

 

Marketplace Events, LLC - Super Priority First Lien Term Loan

 

9/30/2025

 

 

Media: Diversified and Production

 

 

10.94

%

 

SOFR+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

 

 

10.94

%

 

SOFR+525

 

 

 

4,837

 

 

 

3,782

 

 

 

4,837

 

Mars Acquisition Holdings Corp.

 

5/14/2026

 

 

Media

 

 

11.04

%

 

SOFR+565

 

 

 

11,588

 

 

 

11,476

 

 

 

11,472

 

MBS Holdings, Inc.

 

4/16/2027

 

 

Internet Software and Services

 

 

11.17

%

 

SOFR+585

 

 

 

7,859

 

 

 

7,758

 

 

 

7,749

 

MDI Buyer, Inc.

 

7/25/2028

 

 

Chemicals, Plastics and Rubber

 

 

11.32

%

 

SOFR+600

 

 

 

6,380

 

 

 

6,271

 

 

 

6,244

 

Meadowlark Acquirer, LLC

 

12/10/2027

 

 

Professional Services

 

 

11.04

%

 

SOFR+565

 

 

 

2,372

 

 

 

2,336

 

 

 

2,312

 

Mission Critical Electronics, Inc.

 

3/28/2024

 

 

Capital Equipment

 

 

11.29

%

 

SOFR+515

 

 

 

5,769

 

 

 

5,763

 

 

 

5,740

 

Municipal Emergency Services, Inc.

 

9/28/2027

 

 

Distributors

 

 

11.04

%

 

SOFR+565

 

 

 

3,430

 

 

 

3,380

 

 

 

3,355

 

NBH Group LLC

 

8/19/2026

 

 

Healthcare, Education & Childcare

 

 

10.93

%

 

SOFR+525

 

 

 

10,711

 

 

 

10,572

 

 

 

10,497

 

Neptune Flood Incorporated

 

5/9/2029

 

 

Insurance

 

 

11.97

%

 

SOFR+650

 

 

 

5,042

 

 

 

4,970

 

 

 

5,042

 

New Milani Group LLC

 

6/6/2024

 

 

Consumer Goods: Non-Durable

 

 

10.92

%

 

SOFR+550

 

 

 

14,213

 

 

 

14,194

 

 

 

14,213

 

One Stop Mailing, LLC

 

5/7/2027

 

 

Air Freight and Logistics

 

 

11.68

%

 

SOFR+636

 

 

 

15,849

 

 

 

15,588

 

 

 

15,849

 

ORL Acquisitions, Inc.

 

9/3/2027

 

 

Consumer Finance

 

 

12.84

%

 

SOFR+725

 

 

 

2,223

 

 

 

2,202

 

 

 

2,023

 

Output Services Group, Inc. (4)

 

6/27/2026

 

 

Business Services

 

 

0.00

%

 

 

—

 

 

 

7,759

 

 

 

7,689

 

 

 

1,513

 

Owl Acquisition, LLC

 

2/4/2028

 

 

Professional Services

 

 

10.80

%

 

SOFR+575

 

 

 

3,893

 

 

 

3,832

 

 

 

3,834

 

Ox Two, LLC

 

5/18/2026

 

 

Construction and Building

 

 

12.90

%

 

SOFR+751

 

 

 

4,345

 

 

 

4,306

 

 

 

4,269

 

Peaquod Merger Sub, Inc.

 

12/2/2026

 

 

Diversified Financial Services

 

 

11.79

%

 

SOFR+640

 

 

 

11,474

 

 

 

11,267

 

 

 

11,244

 

PH Beauty Holdings III, Inc.

 

9/29/2025

 

 

Wholesale

 

 

10.68

%

 

SOFR+500

 

 

 

9,493

 

 

 

9,282

 

 

 

7,974

 

PL Acquisitionco, LLC

 

11/9/2027

 

 

Textiles, Apparel and Luxury Goods

 

 

12.42

%

 

SOFR+710

 

 

 

7,565

 

 

 

7,467

 

 

 

6,809

 

 

 

 

 

 

 

 

(PIK 4.00%)

 

 

 

 

 

 

 

 

 

 

 

 

 

PlayPower, Inc.

 

5/8/2026

 

 

Consumer Goods: Durable

 

 

10.57

%

 

SOFR+565

 

 

 

2,551

 

 

 

2,491

 

 

 

2,436

 

Issuer Name

 

Maturity

 

 

Industry

 

Current
 Coupon

 

 

Basis Point
Spread Above
Index (1)

 

 

Par

 

 

Cost

 

 

Fair Value (2)

 

Pragmatic Institute, LLC

 

7/6/2028

 

 

Education

 

 

11.17

%

 

SOFR+575

 

 

 

11,138

 

 

$

10,999

 

 

$

10,636

 

Quantic Electronics, LLC

 

11/19/2026

 

 

Aerospace and Defense

 

 

11.74

%

 

SOFR+635

 

 

 

2,803

 

 

 

2,776

 

 

 

2,761

 

Rancho Health MSO, Inc.

 

12/18/2025

 

 

Healthcare Providers and Services

 

 

11.22

%

 

SOFR+585

 

 

 

1,029

 

 

 

1,029

 

 

 

1,029

 

Reception Purchaser, LLC

 

2/28/2028

 

 

Air Freight and Logistics

 

 

11.54

%

 

SOFR+600

 

 

 

4,938

 

 

 

4,876

 

 

 

4,740

 

Recteq, LLC

 

1/29/2026

 

 

Leisure Products

 

 

12.54

%

 

SOFR+700

 

 

 

4,875

 

 

 

4,825

 

 

 

4,729

 

Research Now Group, LLC and Dynata, LLC

 

12/20/2024

 

 

Diversified Consumer Services

 

 

11.13

%

 

SOFR+576

 

 

 

12,432

 

 

 

12,322

 

 

 

10,878

 

Rural Sourcing Holdings, Inc. (HPA SPQ Merger Sub, Inc.)

 

6/15/2029

 

 

High Tech Industries

 

 

11.52

%

 

SOFR+625

 

 

 

3,749

 

 

 

3,676

 

 

 

3,692

 

Sales Benchmark Index LLC

 

1/3/2025

 

 

Professional Services

 

 

11.59

%

 

SOFR+620

 

 

 

9,522

 

 

 

9,474

 

 

 

9,475

 

Sargent & Greenleaf Inc.

 

12/20/2024

 

 

Wholesale

 

 

12.92

%

 

SOFR+760

 

 

 

5,167

 

 

 

5,148

 

 

 

5,116

 

 

 

 

 

 

 

 

(PIK 1.00%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Schlesinger Global, Inc.

 

7/14/2025

 

 

Business Services

 

 

12.52

%

 

SOFR+715

 

 

 

11,791

 

 

 

11,777

 

 

 

11,407

 

 

 

 

 

 

 

 

(PIK 0.50%)

 

 

 

 

 

 

 

 

 

 

 

 

 

Seaway Buyer, LLC

 

6/13/2029

 

 

Chemicals, Plastics and Rubber

 

 

11.54

%

 

SOFR+615

 

 

 

4,950

 

 

 

4,884

 

 

 

4,802

 

Sigma Defense Systems, LLC

 

12/18/2025

 

 

Aerospace and Defense

 

 

14.04

%

 

SOFR+865

 

 

 

13,787

 

 

 

13,579

 

 

 

13,580

 

Skopima Consilio Parent, LLC

 

5/17/2028

 

 

Business Services

 

 

9.93

%

 

SOFR+450

 

 

 

1,300

 

 

 

1,274

 

 

 

1,272

 

Smile Brands Inc.

 

10/14/2025

 

 

Healthcare and Pharmaceuticals

 

 

9.70

%

 

SOFR+450

 

 

 

11,796

 

 

 

11,739

 

 

 

10,598

 

Solutionreach, Inc.

 

7/17/2025

 

 

Healthcare and Pharmaceuticals

 

 

12.37

%

 

SOFR+700

 

 

 

4,582

 

 

 

4,577

 

 

 

4,563

 

Spendmend Holdings LLC

 

3/1/2028

 

 

Healthcare Technology

 

 

11.04

%

 

SOFR+565

 

 

 

4,112

 

 

 

4,047

 

 

 

4,022

 

STV Group Incorporated

 

12/11/2026

 

 

Construction and Building

 

 

10.67

%

 

SOFR+535

 

 

 

9,075

 

 

 

9,025

 

 

 

8,894

 

Summit Behavioral Healthcare, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.43

%

 

SOFR+475

 

 

 

1,786

 

 

 

1,696

 

 

 

1,779

 

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

 

8/16/2027

 

 

Aerospace and Defense

 

 

11.49

%

 

SOFR+600

 

 

 

14,738

 

 

 

14,540

 

 

 

14,575

 

Team Services Group, LLC

 

11/24/2028

 

 

Healthcare and Pharmaceuticals

 

 

10.75

%

 

SOFR+500

 

 

 

346

 

 

 

333

 

 

 

339

 

Teneo Holdings LLC

 

7/18/2025

 

 

Business Services

 

 

10.67

%

 

SOFR+535

 

 

 

2,262

 

 

 

2,261

 

 

 

2,259

 

The Aegis Technologies Group, LLC

 

10/31/2025

 

 

Aerospace and Defense

 

 

12.04

%

 

SOFR+665

 

 

 

5,602

 

 

 

5,560

 

 

 

5,518

 

The Bluebird Group LLC

 

7/27/2026

 

 

Professional Services

 

 

12.79

%

 

SOFR+700

 

 

 

5,403

 

 

 

5,336

 

 

 

5,382

 

The Vertex Companies, LLC

 

8/31/2027

 

 

Construction and Engineering

 

 

11.72

%

 

SOFR+635

 

 

 

7,716

 

 

 

7,591

 

 

 

7,656

 

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

 

11/24/2025

 

 

Consumer Goods: Non-Durable

 

 

10.95

%

 

SOFR+565

 

 

 

8,654

 

 

 

8,556

 

 

 

8,654

 

TWS Acquisition Corporation

 

6/16/2025

 

 

Diversified Consumer Services

 

 

11.80

%

 

SOFR+625

 

 

 

4,316

 

 

 

4,310

 

 

 

4,316

 

Tyto Athene, LLC

 

4/1/2028

 

 

IT Services

 

 

10.90

%

 

SOFR+550

 

 

 

14,670

 

 

 

14,565

 

 

 

13,379

 

Urology Management Holdings, Inc.

 

6/15/2026

 

 

Healthcare and Pharmaceuticals

 

 

11.79

%

 

SOFR+665

 

 

 

6,892

 

 

 

6,775

 

 

 

6,749

 

Walker Edison Furniture Company LLC

 

3/31/2027

 

 

Wholesale

 

 

12.18

%

 

SOFR+685

 

 

 

3,521

 

 

 

3,521

 

 

 

3,521

 

Walker Edison Furniture Company LLC - Junior Revolving Credit Facility

 

3/31/2027

 

 

Wholesale

 

 

11.68

%

 

SOFR+635

 

 

 

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

 

 

10.54

%

 

SOFR+515

 

 

 

10,565

 

 

 

10,491

 

 

 

10,460

 

Zips Car Wash, LLC

 

3/1/2024

 

 

Automobiles

 

 

12.67

%

 

SOFR+735

 

 

 

16,732

 

 

 

16,660

 

 

 

16,188

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total First Lien Secured Debt

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

801,215

 

 

 

783,598

 

Equity Securities - 3.9%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

New MPE Holdings, LLC

 

 

—

 

 

Media: Diversified and Production

 

 

—

 

 

 

—

 

 

 

-

 

 

 

-

 

 

 

495

 

Walker Edison Furniture - Common Equity

 

 

—

 

 

Wholesale

 

 

 

 

 

 

 

 

36

 

 

 

3,393

 

 

 

1,766

 

Total Equity Securities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,393

 

 

 

2,261

 

Total Investments - 1,351.4%

 

 

 

 

 

 

 

 

 

 

 

804,608

 

 

 

785,859

 

Cash and Cash Equivalents - 133.2%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

BlackRock Federal FD Institutional 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

77,446

 

 

 

77,446

 

Total Cash and Cash Equivalents

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

77,446

 

 

 

77,446

 

Total Investments and Cash Equivalents —1,484.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

882,054

 

 

$

863,305

 

Liabilities in Excess of Other Assets — (1,384.6)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(805,155

)

Members' Equity—100.0%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$

58,150

 

 

 

 

 

(1)
Represents floating rate instruments that accrue interest at a predetermined spread relative to an index, typically the applicable 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 Consolidated 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 SOFR rate (1M S, 2M S, 3M S, or 6M S, respectively), at the borrower’s option. All securities are subject to a SOFR 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 a 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.
(4)
Security currently on interest non-accrual status.

 

 

 

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

 

 

 

 

 

 

 

 

 

 

March 31, 2024

 

 

 

 

 

 

 

(Unaudited)

 

 

 

September 30, 2023

 

Assets

 

 

 

 

 

 

 

Investments at fair value (amortized cost—$879,528 and $804,608, respectively)

$

 

869,684

 

 

$

 

785,859

 

Cash and cash equivalents (cost—$62,892 and $77,446, respectively)

 

 

62,892

 

 

 

 

77,446

 

Interest receivable

 

 

6,303

 

 

 

 

5,179

 

Due from affiliate

 

 

104

 

 

 

 

436

 

Prepaid expenses and other assets

 

 

1,983

 

 

 

 

490

 

Total assets

 

 

940,966

 

 

 

 

869,410

 

Liabilities

 

 

 

 

 

 

 

Credit facility payable

 

 

135,600

 

 

 

 

48,600

 

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

 

 

244,277

 

 

 

 

243,973

 

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

 

 

243,708

 

 

 

 

243,483

 

Notes payable to members

 

 

240,100

 

 

 

 

240,100

 

Interest payable on Credit facility and asset backed debt

 

 

9,406

 

 

 

 

14,291

 

Payable for investments purchased

 

 

—

 

 

 

 

13,466

 

Interest payable on notes to members

 

 

6,395

 

 

 

 

6,488

 

Accrued expenses

 

 

781

 

 

 

 

859

 

Total liabilities

 

 

880,267

 

 

 

 

811,260

 

Commitments and contingencies(1)

 

 

 

 

 

 

 

Members' equity

 

 

60,699

 

 

 

 

58,150

 

Total liabilities and members' equity

$

 

940,966

 

 

$

 

869,410

 

 

(1)
As of March 31, 2024 and September 30, 2023, PSSL had unfunded commitments to fund investments of $1.2 million and $1.1 million, respectively.

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three months ended March 31,

 

 

Six months ended March 31,

 

 

 

2024

 

 

 

2023

 

 

2024

 

 

2023

 

Investment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest

 

$

26,916

 

 

 

$

21,292

 

 

$

52,964

 

 

$

40,908

 

Other income

 

 

388

 

 

 

 

447

 

 

 

565

 

 

 

557

 

Total investment income

 

 

27,304

 

 

 

 

21,739

 

 

 

53,529

 

 

 

41,465

 

Expenses(1):

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest and expense on credit facility and asset-backed debt

 

 

13,784

 

 

 

 

9,678

 

 

 

27,181

 

 

 

18,319

 

Interest expense on notes to members

 

 

8,095

 

 

 

 

7,363

 

 

 

16,316

 

 

 

14,173

 

Administration fees

 

 

577

 

 

 

 

516

 

 

 

1,135

 

 

 

1,024

 

General and administrative expenses

 

 

231

 

 

 

 

280

 

 

 

493

 

 

 

580

 

Total expenses

 

 

22,687

 

 

 

 

17,837

 

 

 

45,125

 

 

 

34,096

 

Net investment income

 

 

4,617

 

 

 

 

3,902

 

 

 

8,404

 

 

 

7,369

 

Realized and unrealized gain (loss) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) on investments

 

 

(90

)

 

 

 

(5,886

)

 

 

(6,510

)

 

 

(5,956

)

Net change in unrealized appreciation (depreciation) on investments

 

 

847

 

 

 

 

3,934

 

 

 

8,905

 

 

 

(1,865

)

Net realized and unrealized gain (loss) on investments

 

 

757

 

 

 

 

(1,952

)

 

 

2,395

 

 

 

(7,821

)

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

 

$

5,374

 

 

 

$

1,950

 

 

$

10,799

 

 

$

(452

)

 

(1) No management or incentive fees are payable by PSSL. If any fees were to be charged, they would be separately disclosed in the consolidated statement of operations.