Close

Form 10-Q BlackRock Private Credit For: Jun 30

August 15, 2022 6:27 AM EDT

Get instant alerts when news breaks on your stocks. Claim your 1-week free trial to StreetInsider Premium here.

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

 

FORM 10-Q

 

 

Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

For the Quarter Ended June 30, 2022

 

Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Commission File Number: 814-01485

 

 

BLACKROCK PRIVATE CREDIT FUND

(Exact Name of Registrant as Specified in Charter)

 

 

Delaware

87-4655020

(State or Other Jurisdiction of Incorporation)

(IRS Employer Identification No.)

 

 

40 East 52nd Street

 

New York, New York

10022

(Address of Principal Executive Offices)

(Zip Code)

 

(212) 810-5300

(Registrant’s telephone number, including area code)

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

 

None

 

Not applicable

 

Not applicable

(Title of each class)

 

(Trading Symbol(s) )

 

(Name of each exchange where registered)

 

Securities registered pursuant to Section 12(g) of the Act: None

 

 

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act: Yes No

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

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):

 

Large accelerated filer

Accelerated filer

Non-accelerated filer

Smaller Reporting company

Emerging growth company

 

 

 

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

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

The number of shares of Registrant’s Common Stock, $0.001 par value per share, outstanding as of August 12, 2022 was 2,851,426, 0 and 0 of Class I, Class S and Class D common shares, respectively.

 

 

 


 

 

BLACKROCK PRIVATE CREDIT FUND

FORM 10-Q

FOR THE PERIOD ENDED JUNE 30, 2022

TABLE OF CONTENTS

 

Part I.

Financial Information

 

 

 

 

Item 1.

Consolidated Financial Statements

 

 

 

 

 

Consolidated Statement of Assets and Liabilities as of June 30, 2022 (Unaudited)

3

 

 

 

 

Consolidated Statements of Operations for the three months ended June 30, 2022 and for the period from March 18, 2022 (Inception) to June 30, 2022 (Unaudited)

4

 

 

 

 

Consolidated Statements of Changes in Net Assets for the three months ended June 30, 2022 and for the period from March 18, 2022 (Inception) to June 30, 2022 (Unaudited)

5

 

 

 

 

Consolidated Statement of Cash Flows for the period from March 18, 2022 (Inception) to June 30, 2022 (Unaudited)

6

 

 

 

 

Consolidated Schedule of Investments as of June 30, 2022 (Unaudited)

7

 

 

 

 

Notes to Consolidated Financial Statements (Unaudited)

11

 

 

 

Item 2.

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

21

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

31

 

 

 

Item 4.

Controls and Procedures

32

 

 

 

Part II.

Other Information

 

 

 

 

Item 1.

Legal Proceedings

33

 

 

 

Item 1A.

Risk Factors

33

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

33

 

 

 

Item 3.

Defaults upon Senior Securities

33

 

 

 

Item 4.

Mine Safety Disclosures

33

 

 

 

Item 5.

Other Information

33

 

 

 

Item 6.

Exhibits

33

 

 

 

2


 

 

BlackRock Private Credit Fund

Consolidated Statement of Assets and Liabilities (Unaudited)

 

 

 

June 30, 2022

 

Assets

 

 

 

 

Investments, at fair value:

 

 

 

 

Non-controlled, non-affiliated investments (cost of $107,728,132)

 

$

104,674,986

 

Total investments (cost of $107,728,132)

 

 

104,674,986

 

 

 

 

 

 

Cash and cash equivalents

 

 

29,305,958

 

Deferred debt issuance costs

 

 

1,874,766

 

Interest, dividends and fees receivable

 

 

154,675

 

Receivable for investments sold

 

 

23,431

 

Prepaid expenses and other assets

 

 

82,859

 

Total assets

 

 

136,116,675

 

 

 

 

 

 

Liabilities

 

 

 

 

Payable for investments purchased

 

 

88,897,983

 

Reimbursements due to the Advisor

 

 

11,050

 

Accrued expenses and other liabilities

 

 

234,831

 

Total liabilities

 

$

89,143,864

 

 

 

 

 

 

Commitments and contingencies (Note 5)

 

 

 

 

 

 

 

 

 

Net assets

 

$

46,972,811

 

 

 

 

 

 

Composition of net assets applicable to common shareholders

 

 

 

 

Common stock, $0.001 par value; 2,000,000 shares issued and outstanding as of June 30, 2022

 

$

2,000

 

Paid-in capital in excess of par

 

 

49,998,000

 

Distributable earnings (loss)

 

 

(3,027,189

)

Total net assets

 

 

46,972,811

 

Total liabilities and net assets

 

$

136,116,675

 

 

 

 

 

 

Net assets per share

 

$

23.49

 

See accompanying notes to the consolidated financial statements.

 

3


 

BlackRock Private Credit Fund

Consolidated Statements of Operations (Unaudited)

 

 

 

Three Months Ended June 30, 2022

 

 

For the Period from March 18, 2022

(Inception) to June 30, 2022

 

Investment income

 

 

 

 

 

 

 

 

Interest income (excluding PIK):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

202,934

 

 

$

202,934

 

Total investment income

 

 

202,934

 

 

 

202,934

 

 

 

 

 

 

 

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

Administrative expenses

 

 

52,604

 

 

 

52,604

 

Professional fees

 

 

50,714

 

 

 

50,714

 

Director fees

 

 

25,125

 

 

 

25,125

 

Insurance expense

 

 

14,548

 

 

 

14,548

 

Interest and other debt expenses

 

 

13,960

 

 

 

13,960

 

Custody fees

 

 

8,469

 

 

 

8,469

 

Other operating expenses

 

 

11,557

 

 

 

11,557

 

Total operating expenses

 

 

176,977

 

 

 

176,977

 

 

 

 

 

 

 

 

 

 

Net investment income

 

 

25,957

 

 

 

25,957

 

 

 

 

 

 

 

 

 

 

Realized and unrealized gain (loss) on investments and foreign currency

 

Net realized gain (loss):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

 

 

 

 

Net realized gain (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net change in unrealized appreciation (depreciation):

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

(3,053,146

)

 

 

(3,053,146

)

Net change in unrealized appreciation (depreciation)

 

 

(3,053,146

)

 

 

(3,053,146

)

 

 

 

 

 

 

 

 

 

Net realized and unrealized gain (loss)

 

 

(3,053,146

)

 

 

(3,053,146

)

 

 

 

 

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(3,027,189

)

 

$

(3,027,189

)

 

 

 

 

 

 

 

 

 

Basic and diluted earnings (loss) per share (1)

 

$

(1.51

)

 

$

(1.51

)

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average common shares outstanding

 

 

2,000,000

 

 

 

2,000,000

 

______________________

(1) Computed based on the actual number of shares outstanding and capital activity during the time periods such earnings occurred.

See accompanying notes to the consolidated financial statements.

 

4


 

BlackRock Private Credit Fund

Consolidated Statements of Changes in Net Assets (Unaudited)

 

 

 

Common Stock

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shares

 

 

Par Amount

 

 

Paid in Capital

in Excess of Par

 

 

Distributable

earnings (loss)

 

 

Total Net

Assets

 

Balance at March 18, 2022 (Inception)

 

 

4,000

 

 

$

4

 

 

$

99,996

 

 

$

 

 

$

100,000

 

Balance at March 31, 2022

 

 

4,000

 

 

$

4

 

 

$

99,996

 

 

$

 

 

$

100,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock

 

 

1,996,000

 

 

 

1,996

 

 

 

49,898,004

 

 

 

 

 

 

49,900,000

 

Net investment income

 

 

 

 

 

 

 

 

 

 

 

25,957

 

 

 

25,957

 

Net realized and unrealized gain (loss)

 

 

 

 

 

 

 

 

 

 

 

(3,053,146

)

 

 

(3,053,146

)

Balance at June 30, 2022

 

 

2,000,000

 

 

$

2,000

 

 

$

49,998,000

 

 

$

(3,027,189

)

 

$

46,972,811

 

 

See accompanying notes to the consolidated financial statements.

 

5


 

BlackRock Private Credit Fund

Consolidated Statement of Cash Flows (Unaudited)

 

 

 

For the Period from March 18, 2022 (Inception) to June 30, 2022

 

Operating activities

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

(3,027,189

)

Adjustments to reconcile net increase (decrease) in net assets resulting

   from operations to net cash provided by (used in) operating activities:

 

 

 

 

Net realized (gain) loss

 

 

 

Change in net unrealized (appreciation) depreciation of investments

 

 

3,053,146

 

Net amortization of investment discounts and premiums

 

 

(3,965

)

Amortization of deferred debt issuance costs

 

 

13,960

 

Changes in assets and liabilities:

 

 

 

 

Purchases of investments

 

 

(107,747,598

)

Proceeds from disposition of investments

 

 

23,431

 

Decrease (increase) in interest, dividends and fees receivable

 

 

(154,675

)

Decrease (increase) in receivable for investments sold

 

 

(23,431

)

Decrease (increase) in prepaid expenses and other assets

 

 

(82,859

)

Increase (decrease) in payable for investments purchased

 

 

88,897,983

 

Increase (decrease) in reimbursements due to the Advisor

 

 

11,050

 

Increase (decrease) in accrued expenses and other liabilities

 

 

234,831

 

Net cash provided by (used in) operating activities

 

 

(18,805,316

)

 

 

 

 

 

Financing activities

 

 

 

 

Proceeds from shares of common stock sold

 

 

50,000,000

 

Payments of debt issuance costs

 

 

(1,888,726

)

Net cash provided by (used in) financing activities

 

 

48,111,274

 

 

 

 

 

 

Net increase (decrease) in cash and cash equivalents (including restricted cash)

 

 

29,305,958

 

Cash and cash equivalents (including restricted cash) at beginning of period

 

 

 

Cash and cash equivalents (including restricted cash) at end of period

 

$

29,305,958

 

See accompanying notes to the consolidated financial statements.

 

6


 

BlackRock Private Credit Fund

Consolidated Schedule of Investments (Unaudited)

June 30, 2022

Issuer(F)

 

Instrument

 

Ref(B)

 

Floor

 

 

Spread

 

 

Total Coupon

 

 

Maturity

 

Principal

 

 

Cost

 

 

Fair

Value

 

 

% of Total Cash and Investment

 

 

Notes

Debt Investments(A)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace & Defense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Peraton Corp.

 

First Lien Term Loan

 

LIBOR(M)

 

 

0.75

%

 

 

3.75

%

 

 

5.42

%

 

2/1/2028

 

$

1,077,223

 

 

$

1,058,371

 

 

$

1,014,512

 

 

 

0.76

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auto Components

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Clarios Global, LP

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.25

%

 

 

4.92

%

 

4/30/2026

 

$

1,230,000

 

 

 

1,208,475

 

 

 

1,151,588

 

 

 

0.86

%

 

C

USI, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

3.00

%

 

 

5.25

%

 

5/16/2024

 

$

1,655,654

 

 

 

1,633,303

 

 

 

1,590,985

 

 

 

1.19

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,841,778

 

 

 

2,742,573

 

 

 

2.05

%

 

 

Chemicals

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Momentive Performance Materials, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.25

%

 

 

4.92

%

 

5/15/2024

 

$

718,149

 

 

 

709,335

 

 

 

696,009

 

 

 

0.52

%

 

 

W. R. Grace Holdings LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.50

%

 

 

3.75

%

 

 

6.06

%

 

9/22/2028

 

$

867,820

 

 

 

859,141

 

 

 

825,947

 

 

 

0.62

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,568,476

 

 

 

1,521,956

 

 

 

1.14

%

 

 

Commercial Services & Supplies

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asurion, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.13

%

 

 

4.79

%

 

11/3/2023

 

$

1,880,000

 

 

 

1,851,799

 

 

 

1,811,653

 

 

 

1.35

%

 

 

Creative Artists Agency, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

3.75

%

 

 

5.42

%

 

11/26/2026

 

$

1,010,000

 

 

 

999,900

 

 

 

962,404

 

 

 

0.72

%

 

 

Dealer Tire, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

4.25

%

 

 

5.92

%

 

12/12/2025

 

$

787,980

 

 

 

780,100

 

 

 

757,280

 

 

 

0.57

%

 

 

Ensemble RCM, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

3.75

%

 

 

4.99

%

 

8/3/2026

 

$

648,333

 

 

 

643,341

 

 

 

628,747

 

 

 

0.47

%

 

 

Verscend Holding Corp.

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

4.00

%

 

 

5.67

%

 

8/27/2025

 

$

1,879,007

 

 

 

1,864,914

 

 

 

1,803,847

 

 

 

1.34

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

6,140,054

 

 

 

5,963,931

 

 

 

4.45

%

 

 

Construction & Engineering

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Northstar Group Services, Inc.

 

First Lien Term Loan

 

LIBOR(Q)

 

 

1.00

%

 

 

5.50

%

 

 

6.56

%

 

11/12/2026

 

$

2,500,000

 

 

 

2,456,250

 

 

 

2,409,375

 

 

 

1.80

%

 

 

Solmax U.S. LP

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.75

%

 

 

4.75

%

 

 

6.35

%

 

5/29/2028

 

$

2,500,000

 

 

 

2,343,750

 

 

 

2,260,425

 

 

 

1.69

%

 

C

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4,800,000

 

 

 

4,669,800

 

 

 

3.49

%

 

 

Construction Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Filtration Group Corporation

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.00

%

 

 

4.67

%

 

3/29/2025

 

$

1,007,264

 

 

 

984,097

 

 

 

956,180

 

 

 

0.71

%

 

 

Tamko Building Products LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

 

 

 

3.00

%

 

 

4.24

%

 

5/29/2026

 

$

648,333

 

 

 

632,125

 

 

 

609,433

 

 

 

0.46

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,616,222

 

 

 

1,565,613

 

 

 

1.17

%

 

 

Containers & Packaging

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Charter Next Generation, Inc.

 

First Lien Term Loan

 

LIBOR(M)

 

 

0.75

%

 

 

3.75

%

 

 

5.42

%

 

12/1/2027

 

$

1,147,089

 

 

 

1,118,297

 

 

 

1,083,282

 

 

 

0.81

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amentum Government Services Holdings LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.75

%

 

 

5.42

%

 

1/31/2027

 

$

580,000

 

 

 

568,400

 

 

 

553,903

 

 

 

0.41

%

 

 

Ascend Learning, LLC

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.50

%

 

 

3.50

%

 

 

4.56

%

 

12/10/2028

 

$

870,000

 

 

 

838,680

 

 

 

805,838

 

 

 

0.60

%

 

 

Sotheby's

 

First Lien Term Loan

 

LIBOR(Q)

 

 

0.50

%

 

 

4.50

%

 

 

5.54

%

 

1/15/2027

 

$

550,000

 

 

 

542,472

 

 

 

528,228

 

 

 

0.40

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,949,552

 

 

 

1,887,969

 

 

 

1.41

%

 

 

Diversified Financial Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acuris Finance US, Inc.

 

First Lien Term Loan

 

SOFR(Q)

 

 

0.50

%

 

 

4.00

%

 

 

4.77

%

 

2/16/2028

 

$

660,000

 

 

 

646,800

 

 

 

624,251

 

 

 

0.47

%

 

 

Alchemy Copyrights, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

0.50

%

 

 

3.00

%

 

 

4.06

%

 

3/10/2028

 

$

1,366,532

 

 

 

1,346,034

 

 

 

1,322,119

 

 

 

0.99

%

 

E

AlixPartners, LLP

 

First Lien Term Loan

 

LIBOR(M)

 

 

0.50

%

 

 

2.75

%

 

 

4.42

%

 

2/4/2028

 

$

937,626

 

 

 

916,530

 

 

 

894,111

 

 

 

0.67

%

 

 

KKR Apple Bidco, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

0.50

%

 

 

2.75

%

 

 

4.54

%

 

9/23/2028

 

$

867,820

 

 

 

844,793

 

 

 

821,717

 

 

 

0.61

%

 

 

VS Buyer, LLC

 

First Lien Term Loan

 

LIBOR(M)

 

 

 

 

 

3.00

%

 

 

4.67

%

 

2/28/2027

 

$

718,163

 

 

 

706,493

 

 

 

677,767

 

 

 

0.51

%

 

 

White Cap Supply Holdings, LLC

 

First Lien Term Loan

 

SOFR(M)

 

 

0.50

%

 

 

3.75

%

 

 

4.78

%

 

10/19/2027

 

$

650,000

 

 

 

625,300

 

 

 

600,844

 

 

 

0.44

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

5,085,950

 

 

 

4,940,809

 

 

 

3.69

%

 

 

Diversified Telecommunication Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cincinnati Bell, Inc.

 

First Lien Term Loan

 

SOFR(Q)

 

 

0.50

%