XML 22 R12.htm IDEA: XBRL DOCUMENT
v3.22.4

Investments | 3 Months Ended
--- | ---
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investments | Note 3. Investments The composition of our investments as of December 31, 2022 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):
|  | Amortized Cost |  |  | Percentage |  |  | Fair Value |  |  | Percentage |
Senior Secured First Lien Term Loans |  | $ | 129,910 |  |  |  | 51.6 | % |  | $ | 88,691 |  |  |  | 48.4 | %
Senior Secured Notes |  |  | 2,252 |  |  |  | 0.9 |  |  |  | 1,617 |  |  |  | 0.9 |
Unsecured Debt |  |  | 182 |  |  |  | 0.1 |  |  |  | - |  |  |  | - |
Equity/Warrants |  |  | 119,127 |  |  |  | 47.4 |  |  |  | 92,963 |  |  |  | 50.7 |
Total Investments |  | $ | 251,471 |  |  |  | 100.0 | % |  | $ | 183,271 |  |  |  | 100.0 | %
The composition of our investments as of September 30, 2022 as a percentage of our total portfolio, at amortized cost and fair value were as follows (dollars in thousands):
|  | Amortized Cost |  |  | Percentage |  |  | Fair Value |  |  | Percentage |
Senior Secured First Lien Term Loans |  | $ | 128,482 |  |  |  | 48.7 | % |  | $ | 88,248 |  |  |  | 45.6 | %
Senior Secured Second Lien Term Loans |  |  | 2,603 |  |  |  | 1.0 |  |  |  | 2,607 |  |  |  | 1.4 |
Senior Secured Notes |  |  | 2,252 |  |  |  | 0.9 |  |  |  | 1,659 |  |  |  | 0.9 |
Unsecured Debt |  |  | 182 |  |  |  | 0.1 |  |  |  | - |  |  |  | - |
Equity/Warrants |  |  | 129,929 |  |  |  | 49.3 |  |  |  | 100,443 |  |  |  | 52.1 |
Total Investments |  | $ | 263,448 |  |  |  | 100.0 | % |  | $ | 192,957 |  |  |  | 100.0 | %
In connection with certain of the Company’s investments, the Company receives warrants that are obtained for the objective of increasing the total investment returns and are not held for hedging purposes. At December 31, 2022 and September 30, 2022, the total fair value of warrants was $0.0 and $62.6 thousand, respectively, and were included in investments at fair value on the Consolidated Statements of Assets and Liabilities. During the three months ended December 31, 2022, the Company did not acquire any additional warrants in an existing portfolio company. During the three months ended December 31, 2021, the Company did not acquire any additional warrants in an existing portfolio company. For the three months ended December 31, 2022, there was no unrealized appreciation/(depreciation) related to warrants. For the three months ended December 31, 2021, there was no unrealized appreciation/(depreciation) related to warrants. The warrants are received in connection with individual investments and are not subject to master netting arrangements. The following table shows the portfolio composition by industry grouping at fair value at December 31, 2022 (dollars in thousands):
|  | Fair Value |  |  | Percentage |
Services: Business |  | $ | 42,167 |  |  |  | 23.0 | %
Banking, Finance, Insurance & Real Estate |  |  | 35,012 |  |  |  | 19.1 |
Hotel, Gaming & Leisure |  |  | 32,073 |  |  |  | 17.5 |
Services: Consumer |  |  | 17,618 |  |  |  | 9.6 |
Construction & Building |  |  | 17,404 |  |  |  | 9.4 |
Media: Broadcasting & Subscription |  |  | 10,356 |  |  |  | 5.7 |
Automotive |  |  | 7,514 |  |  |  | 4.1 |
High Tech Industries |  |  | 5,342 |  |  |  | 2.9 |
Consumer Discretionary |  |  | 4,916 |  |  |  | 2.7 |
Energy: Oil & Gas |  |  | 4,755 |  |  |  | 2.6 |
Packaging |  |  | 3,353 |  |  |  | 1.8 |
Metals & Mining |  |  | 2,640 |  |  |  | 1.4 |
Retail |  |  | 121 |  |  |  | 0.1 |
Total |  | $ | 183,271 |  |  |  | 100.0 | %
The following table shows the portfolio composition by industry grouping at fair value at September 30, 2022 (dollars in thousands):
|  | Fair Value |  |  | Percentage |
Services: Business |  | $ | 52,851 |  |  |  | 27.4 | %
Hotel, Gaming & Leisure |  |  | 31,947 |  |  |  | 16.6 |
Banking, Finance, Insurance & Real Estate |  |  | 31,910 |  |  |  | 16.5 |
Services: Consumer |  |  | 21,243 |  |  |  | 11.0 |
Construction & Building |  |  | 17,724 |  |  |  | 9.1 |
Automotive |  |  | 8,075 |  |  |  | 4.2 |
Consumer Discretionary |  |  | 6,208 |  |  |  | 3.2 |
High Tech Industries |  |  | 5,465 |  |  |  | 2.8 |
Media: Broadcasting & Subscription |  |  | 4,220 |  |  |  | 2.2 |
Energy: Oil & Gas |  |  | 4,152 |  |  |  | 2.2 |
Packaging |  |  | 3,361 |  |  |  | 1.7 |
Metals & Mining |  |  | 3,073 |  |  |  | 1.6 |
Aerospace & Defense |  |  | 2,607 |  |  |  | 1.4 |
Retail |  |  | 121 |  |  |  | 0.1 |
Total |  | $ | 192,957 |  |  |  | 100.0 | %
The Company invests in portfolio companies principally located in North America. The geographic composition is determined by the location of the corporate headquarters of the portfolio company, which may not be indicative of the primary source of the portfolio company’s business. The following table shows the portfolio composition by geographic location at fair value at December 31, 2022 (dollars in thousands):
|  | Fair Value |  |  | Percentage |
Northeast |  | $ | 85,952 |  |  |  | 46.9 | %
Southeast |  |  | 51,451 |  |  |  | 28.1 |
West |  |  | 19,453 |  |  |  | 10.6 |
Midwest |  |  | 14,869 |  |  |  | 8.1 |
Southwest |  |  | 6,049 |  |  |  | 3.3 |
Mid-Atlantic |  |  | 162 |  |  |  | 0.1 |
Other(1) |  |  | 5,335 |  |  |  | 2.9 |
Total |  | $ | 183,271 |  |  |  | 100.0 | %
| (1) | As of December 31, 2022, comprised of our investments in foreign investments.
The following table shows the portfolio composition by geographic location at fair value at September 30, 2022 (dollars in thousands):
|  | Fair Value |  |  | Percentage |
Northeast |  | $ | 92,939 |  |  |  | 48.2 | %
Southeast |  |  | 51,797 |  |  |  | 26.8 |
West |  |  | 20,196 |  |  |  | 10.5 |
Midwest |  |  | 16,023 |  |  |  | 8.3 |
Southwest |  |  | 6,288 |  |  |  | 3.3 |
Mid-Atlantic |  |  | 265 |  |  |  | 0.1 |
Other(1) |  |  | 5,449 |  |  |  | 2.8 |
Total |  | $ | 192,957 |  |  |  | 100.0 | %
(1) | As of September 30, 2022, comprised of our investments in foreign investments.
Transactions With Affiliated/Controlled Companies The Company had investments in portfolio companies designated as Affiliated Investments and Controlled Investments under the 1940 Act. Transactions with Affiliated Investments and Controlled Investments during the three months ended December 31, 2022 and 2021 were as follows:
Name of Investment(1)(2) |  | Type of Investment |  | Fair Value at September 30, 2022 |  |  | Purchases/ (Sales) of or Advances/ (Distributions) |  |  | Transfers In/(Out) of Affiliates |  |  | Unrealized Gain/(Loss) |  |  | Realized Gain/(Loss) |  |  | Fair Value at December 31, 2022 |  |  | Earned Income |
Affiliated Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1888 Industrial Services, LLC |  | Senior Secured First Lien Term Loan C |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 123,193 |  |  | $ | - |  |  | $ | 123,193 |  |  | $ | 27,308 |
|  | Revolving Credit Facility |  |  | 4,151,562 |  |  |  | 215,622 |  |  |  | - |  |  |  | 264,993 |  |  |  | - |  |  |  | 4,632,177 |  |  |  | 97,647 |
Black Angus Steakhouses, LLC |  | Senior Secured First Lien Delayed Draw Term Loan |  |  | 758,929 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 758,929 |  |  |  | 24,693 |
|  | Senior Secured First Lien Term Loan |  |  | 1,547,918 |  |  |  | - |  |  |  | - |  |  |  | 117,776 |  |  |  | - |  |  |  | 1,665,694 |  |  |  | - |
|  | Senior Secured First Lien Super Priority DDTL |  |  | 1,500,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,500,000 |  |  |  | 48,805 |
Kemmerer Operations, LLC |  | Senior Secured First Lien Term Loan |  |  | 2,378,510 |  |  |  | (813,559 | ) |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,564,951 |  |  |  | 89,743 |
|  | Equity |  |  | 694,702 |  |  |  | - |  |  |  | - |  |  |  | 380,742 |  |  |  | - |  |  |  | 1,075,444 |  |  |  | - |
US Multifamily, LLC |  | Equity |  |  | 1,282,571 |  |  |  | - |  |  |  | - |  |  |  | (171,167 | ) |  |  | - |  |  |  | 1,111,404 |  |  |  | - |
Total Affiliated Investments |  |  |  | $ | 12,314,192 |  |  | $ | (597,937 | ) |  | $ | - |  |  | $ | 715,537 |  |  | $ | - |  |  | $ | 12,431,792 |  |  | $ | 288,196 |
Name of Investment(1)(2) |  | Type of Investment |  | Fair Value at September 30, 2022 |  |  | Purchases/(Sales) of or Advances/ (Distributions) |  |  | Transfers In/(Out) of Affiliates |  |  | Unrealized Gain/(Loss) |  |  | Realized Gain/(Loss) |  |  | Fair Value at December 31, 2022 |  |  | Earned Income |
Controlled Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FlexFIN, LLC |  | Equity Interest |  | $ | 47,136,146 |  |  | $ | (10,467,262 | ) |  | $ | - |  |  | $ | 1,627 |  |  | $ | - |  |  | $ | 36,670,511 |  |  | $ | 1,210,200 |
NVTN LLC |  | Senior Secured First Lien Delayed Draw Term Loan |  |  | 7,192,927 |  |  |  | - |  |  |  | - |  |  |  | 51,169 |  |  |  | - |  |  |  | 7,244,096 |  |  |  | 194,627 |
|  | Senior Secured First Lien Term Loan B |  |  | 3,697,109 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,697,109 |  |  |  | - |
Total Controlled Investments |  |  |  | $ | 58,026,182 |  |  | $ | (10,467,262 | ) |  | $ | - |  |  | $ | 52,796 |  |  | $ | - |  |  | $ | 47,611,716 |  |  | $ | 1,404,827 |
Name of Investment(1)(2) |  |  | Type of Investment |  | Fair Value at September 30, 2021 |  |  | Purchases/(Sales) of or Advances/ (Distributions) |  |  | Transfers In/(Out) of Affiliates |  |  | Unrealized Gain/(Loss) |  |  | Realized Gain/(Loss) |  |  | Fair Value at December 31, 2021 |  |  | Earned Income |
Affiliated Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
1888 Industrial Services, LLC |  |  | Senior Secured First Lien Term Loan B |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 19,468,870 |  |  | $ | (19,468,870 | ) |  | $ | - |  |  | $ | - |
|  |  | Senior Secured First Lien Term Loan C |  |  | 24,639 |  |  |  | - |  |  |  | - |  |  |  | (24,639 | ) |  |  | - |  |  |  | - |  |  |  | - |
|  |  | Revolving Credit Facility |  |  | 3,554,069 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 3,554,069 |  |  |  | - |
Black Angus Steakhouses, LLC |  |  | Senior Secured First Lien Delayed Draw Term Loan |  |  | 758,929 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 758,929 |  |  |  | 19,395 |
|  |  | Senior Secured First Lien Term Loan |  |  | 2,279,814 |  |  |  | - |  |  |  | - |  |  |  | (529,994 | ) |  |  | - |  |  |  | 1,749,820 |  |  |  | - |
|  |  | Senior Secured First Lien Super Priority DDTL |  |  | 1,500,000 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 1,500,000 |  |  |  | 38,333 |
Caddo Investors Holdings 1 LLC |  |  | Equity |  |  | 3,454,786 |  |  |  | (3,448,219 | ) |  |  | - |  |  |  | (925,960 | ) |  |  | 919,393 |  |  |  | - |  |  |  | - |
Dynamic Energy Services International LLC |  |  | Senior Secured First Lien Term Loan |  |  | - |  |  |  | (4,910,671 | ) |  |  | - |  |  |  | 7,328,568 |  |  |  | (2,417,897 | ) |  |  | - |  |  |  | - |
JFL-NGS Partners, LLC |  |  | Equity |  |  | 26,862,813 |  |  |  | (26,807,520 | ) |  |  | - |  |  |  | (26,805,513 | ) |  |  | 26,750,220 |  |  |  | - |  |  |  | - |
JFL-WCS Partners, LLC |  |  | Equity |  |  | 8,099,949 |  |  |  | (8,084,639 | ) |  |  | - |  |  |  | (7,970,361 | ) |  |  | 7,955,051 |  |  |  | - |  |  |  | - |
Kemmerer Operations, LLC |  |  | Senior Secured First Lien Term Loan |  |  | 2,360,547 |  |  |  | 91,309 |  |  |  | - |  |  |  | 4,125 |  |  |  | - |  |  |  | 2,455,981 |  |  |  | 91,347 |
|  |  | Senior Secured First Lien Delayed Draw Term Loan |  |  | 162,441 |  |  |  | (129,875 | ) |  |  | - |  |  |  | (4,442 | ) |  |  | - |  |  |  | 28,124 |  |  |  | 5,665 |
|  |  | Equity |  |  | 553,746 |  |  |  | - |  |  |  | - |  |  |  | (62,347 | ) |  |  | - |  |  |  | 491,399 |  |  |  | - |
Path Medical, LLC |  |  | Senior Secured First Lien Term Loan A |  |  | 2,249,835 |  |  |  | - |  |  |  | - |  |  |  | (31,984 | ) |  |  | - |  |  |  | 2,217,851 |  |  |  | - |
URT Acquisition Holdings Corporation |  |  | Warrants |  |  | 920,000 |  |  |  | (1,000,000 | ) |  |  | - |  |  |  | (920,000 | ) |  |  | 1,000,000 |  |  |  | - |  |  |  | - |
US Multifamily, LLC |  |  | Senior Secured First Lien Term Loan |  |  | 2,577,416 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 2,577,416 |  |  |  | 64,435 |
|  |  | Equity |  |  | 2,236,261 |  |  |  | - |  |  |  | - |  |  |  | (166 | ) |  |  | - |  |  |  | 2,236,095 |  |  |  | - |
Total Affiliated Investments |  |  |  |  | $ | 57,595,245 |  |  | $ | (44,289,615 | ) |  | $ | - |  |  | $ | (10,473,843 | ) |  | $ | 14,737,897 |  |  | $ | 17,569,684 |  |  | $ | 219,175 |
Name of Investment(1)(2) |  | Type of Investment |  |  | Fair Value at September 30, 2021 |  |  | Purchases/(Sales) of or Advances/ (Distributions) |  |  | Transfers In/(Out) of Affiliates |  |  | Unrealized Gain/(Loss) |  |  | Realized Gain/(Loss) |  |  | Fair Value at December 31, 2021 |  |  | Earned Income |
Controlled Investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
FlexFIN, LLC |  | Equity Interest |  |  | $ | 2,500,000 |  |  | $ | 28,000,000 |  |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | 30,500,000 |  |  | $ | 398,844 |
NVTN LLC |  | Senior Secured First Lien Delayed Draw Term Loan |  |  |  | 6,414,860 |  |  |  | - |  |  |  | - |  |  |  | 6,566 |  |  |  | - |  |  |  | 6,421,426 |  |  |  | - |
|  | Super Priority Senior Secured First Lien Term Loan |  |  |  | 977,000 |  |  |  | (500,000 | ) |  |  | - |  |  |  | 11,075 |  |  |  | 925 |  |  |  | 489,000 |  |  |  | 154,794 |
Total Controlled Investments |  |  |  |  | $ | 9,891,860 |  |  | $ | 27,500,000 |  |  | $ | - |  |  | $ | 17,641 |  |  | $ | 925 |  |  | $ | 37,410,426 |  |  | $ | 553,638 |
(1) | The par amount and additional detail are shown in the Consolidated Schedule of Investments.
(2) | Securities with a zero value at the beginning and end of the period, and those that had no transaction activity were excluded from the roll forward.
Purchases/(sales) of or advances to/(distributions) from Affiliated Investments and Controlled Investments represent the proceeds from sales and settlements of investments, purchases, originations and participations, investment increases due to PIK interest as well as net amortization of premium/(discount) on investments and are included in the purchases and sales presented on the Consolidated Statements of Cash Flows for the three months ended December 31, 2022 and 2021. Transfers in/(out) of Affiliated Investments and Controlled Investments represent the fair value for the month an investment became or was removed as an Affiliated Investment or a Controlled Investment. Income received from Affiliated Investments and Controlled Investments is included in total investment income on the Consolidated Statements of Operations for the three months ended December 31, 2022 and 2021. Unconsolidated Significant Subsidiaries In accordance with the SEC’s Regulation S-X and GAAP, the Company evaluated and determined that it had one subsidiary, FlexFIN, LLC, that is deemed to be a “significant subsidiary” as of December 31, 2022 for which summarized financial information is presented below (dollars in thousands):
Balance Sheet |  | December 31, 2022 (Unaudited) |  |  | September 30, 2022 (Audited) |
Total Assets |  | $ | 36,670 |  |  | $ | 47,168 |
Total Liabilities |  |  | 54 |  |  |  | 12 |
Income Statement |  | For the Three Months Ended December 31, 2022 (Unaudited) |  |  | For the Year Ended September 30, 2022 (Audited) |
Total Income |  | $ | 1,085 |  |  | $ | 3,855 |
Total Expenses |  |  | 75 |  |  |  | 202 |
Net Income |  | $ | 1,010 |  |  | $ | 3,653 |

X
- Definition The entire disclosure for investment holdings. This includes the information required in the supplementary schedule applicable to management investment companies listing holdings of unaffiliated investments. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 + Details
Name: | us-gaap_InvestmentHoldingsScheduleOfInvestmentsTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration