Form N-CSRS THL Credit Senior Loan For: Jun 30
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number 811-22874
THL CREDIT SENIOR LOAN FUND
(Exact name of registrant as specified in charter)
227 West Monroe Street, Suite 3200
Chicago, IL 60606
(Address of principal executive offices) (Zip code)
Sabrina Rusnak-Carlson
100 Federal St., 31st Floor
Boston, MA 02110
(Name and address of agent for service)
Copies of Communications to:
Stephen H. Bier
Dechert LLP
1095 Avenue of the Americas
New York, NY 10036
Registrant's telephone number, including area code: (312) 702-8199
Date of fiscal year end: December 31
Date of reporting period: June 30, 2019
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
Item 1. Reports to Stockholders.
The Report to Shareholders is attached herewith.
Contents
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President, THL Credit Senior Loan Fund
Senior Managing Director/Co-Head, Tradable Credit
Performance & Statistics (unaudited) June 30, 2019
| Weighted Average Loan Spread(4) | | | | | 4.27% | | |
| Weighted Average Days to Reset | | | | | 42 | | |
| Weighted Average Coupon Rate | | | | | 6.76% | | |
| Weighted Average Duration (Years) | | | | | 0.17 | | |
| Weighted Average Maturity (Years) | | | | | 5.03 | | |
| Number of Positions | | | | | 144 | | |
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6
Month |
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1
Year |
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3
Year(5) |
| |
5
Year(5) |
| |
Since
Inception(5)(6) |
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TSLF | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
NAV(7)
|
| | | | 3.63% | | | | | | 0.64% | | | | | | 6.10% | | | | | | 4.54% | | | | | | 5.28% | | |
Market Price
|
| | | | 6.71% | | | | | | (4.83)% | | | | | | 5.51% | | | | | | 3.95% | | | | | | 2.73% | | |
CS Leveraged
Loan Index(8) |
| | | | 5.42% | | | | | | 4.15% | | | | | | 5.43% | | | | | | 3.85% | | | | | | 4.10% | | |
|
Avaya, Inc.,
Tranche B Term Loan – First Lien |
| | | | 2.91% | | |
|
First Data Corporation,
2024A New Dollar Term Loan – First Lien |
| | | | 2.20% | | |
|
Scientific Games International Inc. (aka SGMS),
Initial Term Loan B-5 – First Lien |
| | | | 1.91% | | |
|
Gruden Acquisitions, Inc. (Quality Distribution LLC),
Incremental Term Loan – First Lien |
| | | | 1.83% | | |
|
Red Ventures LLC,
Term Loan B-1 – First Lien |
| | | | 1.66% | | |
|
Rackspace Hosting (Inception Merger Sub, Inc.),
2017 Term Loan B – First Lien |
| | | | 1.51% | | |
|
Inovalon Holdings, Inc.,
Term Loan B – First Lien |
| | | | 1.51% | | |
|
Berry Global Group, Inc.,
Term Loan U – First Lien |
| | | | 1.37% | | |
|
Cvent, Inc.,
Term Loan B – First Lien |
| | | | 1.34% | | |
|
HGIM Corp. (Harvey Gulf),
Term Loan (Exit) – First Lien |
| | | | 1.34% | | |
| High Tech Industries | | | | | 25.12% | | |
| Services: Business | | | | | 13.51% | | |
| Telecommunications | | | | | 6.11% | | |
| Banking, Finance, Insurance & Real Estate | | | | | 4.99% | | |
| Hotel, Gaming & Leisure | | | | | 4.31% | | |
Schedule of Investments† (unaudited)June 30, 2019
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) – 131.2% (92.9% of Total Investments) | | | | | | | | | | | | | |
Aerospace & Defense – 3.9% | | | | | | | | | | | | | |
Advanced Integration Technology LP, Term B-1 Loan – First Lien, 7.152% (1-Month USD LIBOR + 4.750%, 1.000% Floor), 04/03/23(b)
|
| | | $ | 1,458,919 | | | | | $ | 1,453,448 | | |
Constellis Holdings LLC, Term Loan B – First Lien, 7.583% (3-Month USD LIBOR + 5.000%, 1.000% Floor), 04/22/24
|
| | | | 2,259,237 | | | | | | 1,733,964 | | |
Constellis Holdings LLC, Term Loan B – Second Lien, 11.583% (3-Month USD LIBOR + 9.000%, 1.000% Floor), 04/21/25(b)
|
| | | | 1,257,500 | | | | | | 877,106 | | |
WP CPP Holdings (Consolidated Precision), Initial Term Loan – First Lien, 6.340% (3-Month USD LIBOR + 3.750%, 0.000% Floor), 04/30/25
|
| | | | 992,500 | | | | | | 992,500 | | |
Total Aerospace & Defense
|
| | | | | | | | | | 5,057,018 | | |
Automotive – 3.9% | | | | | | | | | | | | | |
APC Aftermarket (AP Exhaust Acquisition/CWD, LLC), Initial Term Loan –
First Lien, 7.528% (3-Month USD LIBOR + 5.000%, 1.000% Floor), 05/10/24(b) |
| | | | 1,011,013 | | | | | | 879,581 | | |
Jason Incorporated, Initial Term Loan – First lien, 6.830% (3-Month USD LIBOR + 4.500%, 1.000% Floor), 06/30/21
|
| | | | 1,190,488 | | | | | | 1,123,970 | | |
Navistar, Inc., Tranche B Term Loan – First Lien, 5.910% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 11/06/24
|
| | | | 1,975,000 | | | | | | 1,973,459 | | |
Panther BF Aggregator 2 LP (Power Solutions), Term Loan B – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 04/30/26
|
| | | | 1,071,429 | | | | | | 1,065,070 | | |
Total Automotive
|
| | | | | | | | | | 5,042,080 | | |
Banking, Finance, Insurance & Real Estate – 7.0% | | | | | | | | | | | | | |
Alliant Holdings Intermediate LLC (Alliant Holdings I LLC), 2018 Initial
Term Loan – First Lien, 5.404% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 05/09/25 |
| | | | 1,608,750 | | | | | | 1,566,697 | | |
Aretec Group, Inc. (Cetera Financial Group), Term Loan – First Lien, 6.652% (1-Month USD LIBOR + 4.250%, 0.000% Floor), 10/01/25
|
| | | | 796,000 | | | | | | 778,090 | | |
AssuredPartners Capital, Inc., 2017 September Refinancing Term Loan – First Lien, 5.902% (1-Month USD LIBOR + 3.250%, 0.000% Floor), 10/22/24
|
| | | | 490,765 | | | | | | 486,778 | | |
Asurion LLC (Asurion Delivery and Installation Services, Inc.), Term Loan
B-6 – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 11/03/23 |
| | | | 1,533,901 | | | | | | 1,532,667 | | |
Asurion LLC (Asurion Delivery and Installation Services, Inc.), Term Loan
B-7 – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 11/03/24 |
| | | | 495,000 | | | | | | 494,621 | | |
Avision Young Canada, Inc., Term Loan – First Lien, 7.467% (2-Month and 3-Month USD LIBOR + 5.000%, 0.000% Floor), 02/01/26
|
| | | | 1,492,500 | | | | | | 1,470,113 | | |
Kestra Advisor Services Holdings A, Inc. (Kestra Financial),Term Loan – First Lien, 6.780% (3-Month USD LIBOR + 4.250%, 0.000% Floor), 06/03/26
|
| | | | 825,000 | | | | | | 821,733 | | |
Sedgwick Claims Management Services, Inc., Term Loan B – First Lien, 5.652% (1-Month USD LIBOR + 3.250%, 0.000% Floor), 12/31/25
|
| | | | 460,188 | | | | | | 454,557 | | |
USI, Inc., Term Loan B – First Lien, 5.330% (3-Month USD LIBOR + 3.000%, 0.000% Floor), 05/16/24
|
| | | | 1,473,750 | | | | | | 1,439,404 | | |
Total Banking, Finance, Insurance & Real Estate
|
| | | | | | | | | | 9,044,660 | | |
|
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
Beverage, Food & Tobacco – 1.8% | | | | | | | | | | | | | |
CHG PPC Parent LLC, Term Loan B – First Lien, 5.152% (1-Month USD LIBOR + 2.750%, 0.000% Floor), 03/31/25
|
| | | $ | 866,250 | | | | | $ | 861,382 | | |
Flavors Holdings, Inc., Tranche B Term Loan – First Lien, 8.080% (3-Month
USD LIBOR + 5.750%, 1.000% Floor), 04/03/20(b) |
| | | | 723,571 | | | | | | 678,348 | | |
Flavors Holdings, Inc., Initial Term Loan – Second Lien, 12.330% (3-Month USD LIBOR + 10.000%, 1.000% Floor), 10/03/21(b)
|
| | | | 1,000,000 | | | | | | 825,000 | | |
Total Beverage, Food & Tobacco
|
| | | | | | | | | | 2,364,730 | | |
Capital Equipment – 2.3% | | | | | | | | | | | | | |
Big Ass Fans LLC, Term Loan – First Lien, 6.080% (3-Month USD LIBOR + 3.750%, 1.000% Floor), 05/21/24
|
| | | | 997,444 | | | | | | 998,690 | | |
Blount International, Inc., 2018 Term Loan B – First Lien, 6.152% (1-Month
USD LIBOR + 3.750%, 1.000% Floor), 04/12/23 |
| | | | 990,025 | | | | | | 990,649 | | |
Vertiv Group Corp., Term Loan B – First Lien, 6.330% (3-Month USD LIBOR + 4.000%, 1.000% Floor), 11/30/23
|
| | | | 1,002,155 | | | | | | 954,553 | | |
Total Capital Equipment
|
| | | | | | | | | | 2,943,892 | | |
Chemicals, Plastics & Rubber – 1.5% | | | | | | | | | | | | | |
Polar US Borrower (SI Group, Inc.), Term Loan – First Lien, 7.341% (3-Month USD LIBOR + 4.750%, 0.000% Floor), 10/15/25(b)
|
| | | | 1,990,000 | | | | | | 1,967,612 | | |
Construction & Building – 1.2% | | | | | | | | | | | | | |
Westinghouse (Brookfield WEC Holdings, Inc.), Term Loan – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 0.750% Floor), 08/01/25
|
| | | | 1,492,500 | | | | | | 1,492,396 | | |
Consumer Products: Durable – 1.5% | | | | | | | | | | | | | |
Serta Simmons Bedding, LLC, Term Loan – First Lien, 5.908% (1-Month USD LIBOR + 3.500%, 1.000% Floor), 11/08/23
|
| | | | 1,888,879 | | | | | | 1,233,088 | | |
Serta Simmons Bedding, LLC, Term Loan – Second Lien, 10.394% (1-Month
USD LIBOR + 8.000%, 1.000% Floor), 11/08/24 |
| | | | 1,450,000 | | | | | | 658,300 | | |
Total Consumer Products: Durable
|
| | | | | | | | | | 1,891,388 | | |
Consumer Products: Non Durable – 3.9% | | | | | | | | | | | | | |
ABG Intermediate Holdings 2 LLC, Term Loan 2017 – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 1.000% Floor), 09/27/24
|
| | | | 967,161 | | | | | | 946,609 | | |
Fossil Group, Inc., Term Loan – First Lien, 10.390% (1-Week USD LIBOR +
8.000%, 0.000% Floor), 12/31/20 |
| | | | 1,149,000 | | | | | | 1,151,390 | | |
International Textile Group, Inc., Term Loan – First Lien, 7.440% (1-Month USD LIBOR + 5.000%, 0.000% Floor), 05/01/24(b)
|
| | | | 187,005 | | | | | | 173,915 | | |
Pure Fishing, Inc. (SP PF Buyer), Term Loan – First Lien, 6.830% (3-Month USD LIBOR + 4.500%, 0.000% Floor), 12/21/25
|
| | | | 997,500 | | | | | | 951,365 | | |
Varsity Brands, Inc. (Hercules Achievement), Initial Term Loan – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 1.000% Floor), 12/16/24
|
| | | | 985,010 | | | | | | 968,077 | | |
ZEP, Inc. (Acuity Special Products), Initial Term Loan – First Lien, 6.330% (3-Month USD LIBOR + 4.000%, 1.000% Floor), 08/12/24
|
| | | | 982,500 | | | | | | 803,194 | | |
Total Consumer Products: Non Durable
|
| | | | | | | | | | 4,994,550 | | |
Containers, Packaging & Glass – 2.8% | | | | | | | | | | | | | |
Berry Global Group, Inc. (fka Berry Plastics Corp.),Term Loan U – First Lien, (LIBOR + 2.500%, 0.000% Floor), 05/15/26(c)
|
| | | | 2,500,000 | | | | | | 2,485,937 | | |
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
Containers, Packaging & Glass – 2.8% (continued) | | | | ||||||||||
Fortress Merger Sub, Inc. (Fort Dearborn), Initial Term Loan – Second Lien,
11.102% (3-Month USD LIBOR + 8.500%, 1.000% Floor), 10/21/24(b) |
| | | $ | 1,140,000 | | | | | $ | 1,083,000 | | |
Total Containers, Packaging & Glass
|
| | | | | | | | | | 3,568,937 | | |
Energy: Oil & Gas – 4.4% | | | | | | | | | | | | | |
Delek US Holdings, Inc., Term Loan B – First Lien, 4.580% (3-Month USD LIBOR + 2.250%, 0.000% Floor), 03/30/25
|
| | | | 740,630 | | | | | | 730,913 | | |
HGIM Corp. (Harvey Gulf), Term Loan (Exit) – First Lien, 8.743% (3-Month USD LIBOR + 6.000%, 1.000% Floor), 07/03/23
|
| | | | 2,529,969 | | | | | | 2,426,670 | | |
Lower Cadence Holdings LLC (Oryx Midstream),Term Loan B – First Lien, 6.404% (1-Month USD LIBOR + 4.000%, 0.000% Floor), 05/10/26
|
| | | | 833,333 | | | | | | 830,383 | | |
PSS Industrial Group (Pipeline Supply & Service), Term Loan – First Lien, 8.200% (3-Month USD LIBOR + 6.000%, 1.500% Floor), 04/10/25
|
| | | | 437,030 | | | | | | 432,114 | | |
W3 Topco LLC (Total Safety), Initial Term Loan – First Lien, 8.402% (1-Month and 3-Month USD LIBOR + 6.000%, 1.000% Floor), 03/08/22
|
| | | | 1,228,015 | | | | | | 1,218,805 | | |
Total Energy: Oil & Gas
|
| | | | | | | | | | 5,638,885 | | |
Environmental Industries – 0.7% | | | | | | | | | | | | | |
EnergySolutions (Energy Capital Partners), Term Loan B – First Lien, 6.080% (3-Month USD LIBOR + 3.750%, 1.000% Floor), 05/09/25(b)
|
| | | | 990,000 | | | | | | 950,400 | | |
Healthcare & Pharmaceuticals – 4.9% | | | | | | | | | | | | | |
Alvogen Pharma US, Inc., Term Loan B – First Lien, 7.150% (1-Month USD
LIBOR + 4.750%, 1.000% Floor), 04/01/22 |
| | | | 2,324,072 | | | | | | 2,143,956 | | |
Civitas Solutions, Inc. (National Mentor Holding), Term Loan – First Lien, 6.660% (1-Month USD LIBOR + 4.250%, 0.000% Floor), 03/09/26
|
| | | | 939,167 | | | | | | 944,356 | | |
Civitas Solutions, Inc. (National Mentor Holding), Term Loan C – First Lien,
6.660% (1-Month USD LIBOR + 4.250%, 0.000% Floor), 03/09/26 |
| | | | 58,480 | | | | | | 58,803 | | |
LifeScan Global Corp., Term Loan – First Lien, 8.660% (3-Month USD LIBOR + 6.000%, 0.000% Floor), 10/01/24
|
| | | | 1,097,688 | | | | | | 1,051,036 | | |
Midwest Physician Administrative Services, LLC (ACOF V DP Acquiror LLC
aka Dupage Medical Group), Initial Term Loan – Second Lien, 9.402% (1-Month USD LIBOR + 7.000%, 0.750% Floor), 08/15/25(b) |
| | | | 734,282 | | | | | | 719,596 | | |
RegionalCare Hospital Partners Holdings, Inc. (Lifepoint Health), Term Loan
B – First Lien, 6.904% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 11/14/25 |
| | | | 1,399,219 | | | | | | 1,393,342 | | |
Total Healthcare & Pharmaceuticals
|
| | | | | | | | | | 6,311,089 | | |
High Tech Industries – 35.5% | | | | | | | | | | | | | |
Almonde, Inc. (Misys/Finastra), Dollar Term Loan – Second Lien, 9.652% (1-Month USD LIBOR + 7.250%, 1.000% Floor), 06/13/25
|
| | | | 500,000 | | | | | | 497,293 | | |
AppLovin Corp., Term Loan B – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 08/15/25
|
| | | | 2,055,305 | | | | | | 2,055,315 | | |
Aptean, Inc., Term Loan – First Lien, 6.580% (3-Month USD LIBOR + 4.250%, 0.000% Floor), 03/27/26
|
| | | | 847,875 | | | | | | 847,349 | | |
Banff Merger Sub, Inc. (BMC), Term Loan B – First Lien, 6.580% (3-Month
USD LIBOR + 4.250%, 0.000% Floor), 10/02/25 |
| | | | 1,492,500 | | | | | | 1,416,009 | | |
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
High Tech Industries – 35.5% (continued) | | | | ||||||||||
Bomgar Corp. (Brave Parent Holdings), Initial Term Loan – First Lien, 6.583% (3-Month USD LIBOR + 4.000%, 0.000% Floor), 04/18/25
|
| | | $ | 1,485,000 | | | | | $ | 1,474,798 | | |
Canyon Valor Cos. (GTCR Valor Cos., Inc. (aka Cision AB)), Initial Dollar
Term Loan – First Lien, 5.080% (3-Month USD LIBOR + 2.750%, 0.000% Floor), 06/16/23 |
| | | | 1,868,382 | | | | | | 1,860,207 | | |
Datto, Inc., Term Loan – First Lien, 6.580% (3-Month USD LIBOR + 4.250%, 0.000% Floor), 04/02/26(b)
|
| | | | 1,250,000 | | | | | | 1,257,813 | | |
DigiCert, Inc. (Unipeg Merger Corp.), Term Loan B2 2017 – First Lien, 6.402% (1-Month USD LIBOR + 4.000%, 1.000% Floor), 10/31/24
|
| | | | 990,019 | | | | | | 987,856 | | |
DigiCert, Inc. (Unipeg Merger Corp.), Term Loan – Second Lien, 10.402% (1-Month USD LIBOR + 8.000%, 1.000% Floor), 10/31/25
|
| | | | 600,000 | | | | | | 597,000 | | |
Drilling Info, Inc., Term Loan – First Lien, 6.652% (1-Month USD LIBOR +
4.250%, 0.000% Floor), 07/30/25(b) |
| | | | 496,181 | | | | | | 494,320 | | |
Dynatrace LLC, Term Loan – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 08/25/25
|
| | | | 1,215,270 | | | | | | 1,214,815 | | |
Ellie Mae, Inc., Term Loan – First Lien, 6.525% (3-Month USD LIBOR + 4.000%, 0.000% Floor), 04/02/26
|
| | | | 1,125,000 | | | | | | 1,123,121 | | |
First Data Corp., 2024A New Dollar Term Loan – First Lien, 4.404% (1-Month USD LIBOR + 2.000%, 0.000% Floor), 04/26/24
|
| | | | 4,000,000 | | | | | | 4,000,000 | | |
Help/Systems Holdings, Inc., Term Loan – First Lien, 6.080% (3-Month USD
LIBOR + 3.750%, 0.000% Floor), 03/28/25(b) |
| | | | 660,000 | | | | | | 655,875 | | |
Infoblox, Inc., New Term Loan – First Lien, 6.902% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 11/07/23
|
| | | | 2,124,932 | | | | | | 2,129,352 | | |
Infoblox, Inc., Term Loan – Second Lien, 11.152% (1-Month USD LIBOR +
8.750%, 1.000% Floor), 11/07/24 |
| | | | 1,000,000 | | | | | | 1,004,165 | | |
Inovalon Holdings, Inc., Term Loan B – First Lien, 5.938% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 04/02/25
|
| | | | 2,729,375 | | | | | | 2,731,941 | | |
MH Sub I, LLC and Micro Holding Corp. (Internet Brands), Amendment No
2 Initial Term Loan – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 09/16/24 |
| | | | 1,906,887 | | | | | | 1,876,616 | | |
MTS System Corp., Term Loan B 2017 – First Lien, 5.660% (1-Month USD LIBOR + 3.250%, 0.750% Floor), 07/05/23(b)
|
| | | | 1,265,107 | | | | | | 1,263,531 | | |
Plantronics, Inc., Term Loan B – First Lien, 4.902% (1-Month USD LIBOR + 2.500%, 0.000% Floor), 07/02/25
|
| | | | 1,608,370 | | | | | | 1,601,004 | | |
PNI Canada Acquireco Corp. (Sandvine), Term Loan – First Lien, 6.902% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 10/31/25(b)
|
| | | | 431,167 | | | | | | 427,394 | | |
Project Alpha Intermediate Holding, Inc. (Qlik), Term Loan B – First Lien, 6.370% (3-Month USD LIBOR + 3.500%, 1.000% Floor), 04/26/24(b)
|
| | | | 1,960,000 | | | | | | 1,906,100 | | |
QuickBase, Inc., Term Loan – First Lien, 6.440% (1-Month USD LIBOR + 4.000%, 0.000% Floor), 04/03/26(b)
|
| | | | 1,050,000 | | | | | | 1,048,688 | | |
Rocket Software, Inc., Term Loan – First Lien, 6.652% (1-Month USD LIBOR + 4.250%, 0.000% Floor), 11/28/25
|
| | | | 1,974,219 | | | | | | 1,934,734 | | |
SCS Holdings, Inc. (Sirius Computer Solutions), New Tranche B Term Loan – First Lien, 6.652% (1-Month USD LIBOR + 4.250%, 1.000% Floor), 10/30/22
|
| | | | 1,170,489 | | | | | | 1,178,536 | | |
SCS Holdings, Inc. (Sirius Computer Solutions), Term Loan B – First Lien (LIBOR + 4.250%, 0.000% Floor), 07/03/26(c)
|
| | | | 1,500,000 | | | | | | 1,500,308 | | |
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
High Tech Industries – 35.5% (continued) | | | | ||||||||||
SonicWALL, Inc., Term Loan – First Lien, 6.020% (3-Month USD LIBOR +
3.500%, 0.000% Floor), 05/16/25(b) |
| | | $ | 1,326,667 | | | | | $ | 1,240,433 | | |
SonicWALL, Inc., Term Loan – Second Lien, 10.020% (3-Month USD LIBOR + 7.500%, 0.000% Floor), 05/18/26(b)
|
| | | | 900,000 | | | | | | 831,375 | | |
Starfish – V Merger Sub, Inc. (Syncsort/Vero), Term Loan B – First Lien, 6.902% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 08/16/24
|
| | | | 982,575 | | | | | | 980,733 | | |
TriTech Software Systems (Superion/SuperMoose), Term Loan – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 08/29/25
|
| | | | 1,326,667 | | | | | | 1,313,957 | | |
VeriFone Systems, Inc., Delayed Draw Term Loan – First Lien, 6.446% (3-Month USD LIBOR + 4.000%, 0.000% Floor), 08/20/25
|
| | | | 1,000,000 | | | | | | 981,250 | | |
VeriFone Systems, Inc., Term Loan – First Lien, 6.520% (3-Month USD LIBOR + 4.000%, 0.000% Floor), 08/20/25
|
| | | | 955,200 | | | | | | 928,932 | | |
Verscend Holding Corp., Term Loan B – First Lien, 6.902% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 08/27/25
|
| | | | 1,302,656 | | | | | | 1,306,121 | | |
Web.Com Group, Inc., Term Loan B – First Lien, 6.161% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 10/10/25
|
| | | | 908,676 | | | | | | 897,508 | | |
Total High Tech Industries
|
| | | | | | | | | | 45,564,449 | | |
Hotel, Gaming & Leisure – 6.1% | | | | | | | | | | | | | |
AP Gaming I LLC (American Gaming Systems), 2018 Term Loan B – First Lien, 5.902% (1-Month USD LIBOR + 3.500%, 1.000% Floor), 02/15/24
|
| | | | 1,071,978 | | | | | | 1,071,307 | | |
Miller’s Ale House, Inc., Term Loan – First Lien, 7.169% (1-Month USD LIBOR + 4.750%, 0.000% Floor), 05/30/25(b)
|
| | | | 1,191,000 | | | | | | 1,161,225 | | |
PCI Gaming Authority, Term Loan – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 05/15/26
|
| | | | 798,254 | | | | | | 800,497 | | |
Scientific Games International, Inc. (aka SGMS), Initial Term Loan B-5 –
First Lien, 5.216% (1-Month and 2-Month USD LIBOR + 2.750%, 0.000% Floor), 08/14/24 |
| | | | 3,518,289 | | | | | | 3,469,666 | | |
Steak n Shake Operations, Inc., Term Loan – First Lien, 6.160% (1-Month USD LIBOR + 3.750%, 1.000% Floor), 03/19/21(b)
|
| | | | 1,659,982 | | | | | | 1,319,686 | | |
Total Hotel, Gaming & Leisure
|
| | | | | | | | | | 7,822,381 | | |
Media: Advertising, Printing & Publishing – 0.6% | | | | | | | | | | | | | |
Harland Clarke Hldgs, Initial Term Loan – First Lien, 7.080% (3-Month USD
LIBOR + 4.750%, 1.000% Floor), 11/03/23 |
| | | | 906,723 | | | | | | 785,449 | | |
Media: Broadcasting & Subscription – 4.3% | | | | | | | | | | | | | |
Nexstar Broadcasting, Inc., Term Loan B – First Lien (LIBOR + 2.750%, 0.000% Floor), 06/19/26(c)
|
| | | | 1,350,000 | | | | | | 1,346,625 | | |
Radiate Holdco LLC (RCN Grande), Closing Date Term Loan – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.750% Floor), 02/01/24
|
| | | | 1,964,761 | | | | | | 1,922,892 | | |
Tribune Co., Term Loan C – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.750% Floor), 01/26/24
|
| | | | 947,371 | | | | | | 947,769 | | |
Urban One (Radio One, Inc.), Initial Term Loan – First Lien, 6.410% (1-Month USD LIBOR + 4.000%, 1.000% Floor), 04/18/23
|
| | | | 1,384,650 | | | | | | 1,337,489 | | |
Total Media: Broadcasting & Subscription
|
| | | | | | | | | | 5,554,775 | | |
|
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
Media: Diversified & Production – 1.5% | | | | | | | | | | | | | |
Abe Investment Holdings, Inc. (Getty Images, Inc.), Term Loan B – First Lien, 6.938% (1-Month USD LIBOR + 4.500%, 0.000% Floor), 02/12/26
|
| | | $ | 1,492,500 | | | | | $ | 1,487,522 | | |
SESAC Holdco II LLC, Term Loan – Second Lien, 9.652% (1-Month USD LIBOR + 7.250%, 1.000% Floor), 02/24/25(b)
|
| | | | 500,000 | | | | | | 495,000 | | |
Total Media: Diversified & Production
|
| | | | | | | | | | 1,982,522 | | |
Metals & Mining – 1.3% | | | | | | | | | | | | | |
ASP Prince Merger Sub, Inc.(aka PMHC II), Term Loan – First Lien, 6.104%
(3-Month USD LIBOR + 3.500%, 1.000% Floor), 03/31/25 |
| | | | 740,625 | | | | | | 676,438 | | |
Big River Steel LLC (BRS Finance), Closing Date Term Loan – First Lien, 7.330% (3-Month USD LIBOR + 5.000%, 1.000% Floor), 08/23/23(b)
|
| | | | 982,500 | | | | | | 989,869 | | |
Total Metals & Mining
|
| | | | | | | | | | 1,666,307 | | |
Retail – 5.0% | | | | | | | | | | | | | |
American Sportsman Holdings Co. (Bass Pro), Initial Term Loan – First Lien,
7.402% (1-Month USD LIBOR + 5.000%, 0.750% Floor), 09/25/24 |
| | | | 1,969,962 | | | | | | 1,885,825 | | |
BI-LO LLC (Southeastern Grocers), Initial Term Loan – First Lien, 10.542%
(3-Month USD LIBOR + 8.000%, 1.000% Floor), 05/31/24 |
| | | | 893,250 | | | | | | 858,266 | | |
Charming Charlie LLC, Converted Tranche A Term Loan – First Lien, 12.580% (3-Month USD LIBOR + 5.000%, 0.000% Floor, Plus 5.00% PIK), 04/24/23(b)(d)(e)
|
| | | | 416,467 | | | | | | 118,277 | | |
Charming Charlie LLC, Converted Tranche B Term Loan – First Lien, 12.580% (3-Month USD LIBOR + 1.000%, 0.000% Floor, Plus 9.00% PIK), 04/24/23(b)(d)(e)
|
| | | | 509,910 | | | | | | 144,814 | | |
Charming Charlie LLC, VPF Facility Term Loan 2018 – First Lien, 20.000% (0.000% Floor), 04/24/23(b)(d)(e)
|
| | | | 22,886 | | | | | | 22,886 | | |
CWGS Group LLC, Term Loan – First Lien, 5.190% (1-Month USD LIBOR
+ 2.750%, 0.750% Floor), 11/08/23 |
| | | | 2,399,566 | | | | | | 2,219,598 | | |
Wand NewCo 3, Inc. (Caliber Collision/ABRA Auto Body), Term Loan B – First Lien, 5.919% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 01/24/26
|
| | | | 1,125,000 | | | | | | 1,126,935 | | |
Total Retail
|
| | | | | | | | | | 6,376,601 | | |
Services: Business – 19.1% | | | | | | | | | | | | | |
ATS Consolidated, Inc. (American Traffic Solutions), Term Loan B – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 02/28/25
|
| | | | 617,188 | | | | | | 620,014 | | |
Brand Energy & Infrastructure Services, Inc., Term Loan – First Lien, 6.788%
(2-Month and 3-Month USD LIBOR + 4.250%, 1.000% Floor), 06/21/24 |
| | | | 689,722 | | | | | | 668,168 | | |
CT Technologies Intermediate Holdings, Inc. (HealthPort), New Term Loan –
First Lien, 6.652% (1-Month USD LIBOR + 4.250%, 1.000% Floor), 12/01/21 |
| | | | 2,366,194 | | | | | | 2,023,095 | | |
Cvent, Inc., Term Loan B – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 1.000% Floor), 11/29/24
|
| | | | 2,456,406 | | | | | | 2,431,842 | | |
EAB (Education Advisory Board/Avatar Purchaser, Inc.), Term Loan – First Lien, 6.381% (3-Month USD LIBOR + 3.750%, 1.000% Floor), 11/15/24
|
| | | | 1,333,125 | | | | | | 1,323,960 | | |
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
Services: Business – 19.1% (continued) | | | | ||||||||||
EagleView Technology Corp., Term Loan – First Lien, 5.904% (1-Month USD LIBOR + 3.500%, 0.000% Floor), 08/14/25
|
| | | $ | 995,000 | | | | | $ | 956,857 | | |
Enterprise Merger Sub, Inc. (Envision Healthcare), Term Loan – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 10/10/25
|
| | | | 895,500 | | | | | | 793,637 | | |
Garda World Security Corp. (GW Horos Security Corp.), Term Loan B – First Lien, 6.025% (3-Month USD LIBOR + 3.500%, 1.000% Floor), 05/24/24 (Canada)
|
| | | | 587,534 | | | | | | 584,716 | | |
I-Logic Technologies Bidco Ltd. (Dealogic), Term Loan – First Lien, 5.901% (3-Month USD LIBOR + 3.250%, 1.000% Floor), 12/21/24
|
| | | | 1,324,640 | | | | | | 1,286,556 | | |
Mavenir Systems, Inc., Term Loan B – First Lien, 8.420% (1-Month USD LIBOR + 6.000%, 1.000% Floor), 05/08/25(b)
|
| | | | 990,000 | | | | | | 989,381 | | |
Mitchell International, Inc., Term Loan – First Lien, 5.652% (1-Month USD LIBOR + 3.250%, 0.000% Floor), 11/29/24
|
| | | | 992,462 | | | | | | 949,752 | | |
Mitchell International, Inc., Initial Term Loan – Second Lien, 9.652% (1-Month USD LIBOR + 7.250%, 0.000% Floor), 12/01/25
|
| | | | 666,667 | | | | | | 647,500 | | |
New Insight Holdings, Inc. (Research Now), Initial Term Loan – First Lien, 8.083% (3-Month USD LIBOR + 5.500%, 1.000% Floor), 12/20/24
|
| | | | 2,016,999 | | | | | | 2,014,478 | | |
North American Lifting Holdings, Inc. (TNT Crane), Term Loan – First Lien, 6.830% (3-Month USD LIBOR + 4.500%, 1.000% Floor), 11/27/20
|
| | | | 2,408,950 | | | | | | 2,287,756 | | |
North American Lifting Holdings, Inc. (TNT Crane), Initial Term Loan – Second Lien, 11.330% (3-Month USD LIBOR + 9.000%, 1.000% Floor), 11/26/21
|
| | | | 1,018,631 | | | | | | 854,377 | | |
Red Ventures LLC, Term Loan B-1 – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 0.000% Floor), 11/08/24(c)
|
| | | | 3,016,009 | | | | | | 3,013,084 | | |
Shutterfly, Inc., Incremental Term Loan – First Lien, 4.910% (1-Month USD
LIBOR + 2.500%, 0.000% Floor), 08/17/24 |
| | | | 468,015 | | | | | | 468,366 | | |
Trader Corp., 2017 Refinancing Term Loan – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 1.000% Floor), 09/28/23
|
| | | | 916,519 | | | | | | 914,228 | | |
Travel Leaders Group, LLC, New Term Loan B – First Lien, 6.383% (1-Month USD LIBOR + 4.000%, 0.000% Floor), 01/25/24
|
| | | | 990,000 | | | | | | 993,297 | | |
USIC Holdings, Inc., New Term Loan – First Lien, 5.402% (1-Month USD LIBOR + 3.000%, 1.000% Floor), 12/08/23
|
| | | | 688,093 | | | | | | 683,603 | | |
Total Services: Business
|
| | | | | | | | | | 24,504,667 | | |
Services: Consumer – 4.3% | | | | | | | | | | | | | |
Cambium Learning, Inc., Term Loan – First Lien, 7.083% (3-Month USD LIBOR + 4.500%, 0.000% Floor), 12/18/25(b)
|
| | | | 995,000 | | | | | | 986,294 | | |
Heartland Dental LLC, Initial Term Loan – First Lien, 6.152% (1-Month USD LIBOR + 3.750%, 0.000% Floor), 04/30/25
|
| | | | 1,090,069 | | | | | | 1,035,571 | | |
Pre-Paid Legal Services, Inc. (Legalshield), Term Loan – First Lien, 5.652% (1-Month USD LIBOR + 3.250%, 0.000% Floor), 05/01/25
|
| | | | 915,000 | | | | | | 915,000 | | |
TruGreen LP, Term Loan B – First Lien, 6.161% (1-Month USD LIBOR + 3.750%, 1.000% Floor), 03/12/26
|
| | | | 997,500 | | | | | | 1,001,245 | | |
Weight Watchers International, Inc., 2017 Term Loan B – First Lien, 7.350% (3-Month USD LIBOR + 4.750%, 0.750% Floor), 11/29/24
|
| | | | 1,606,558 | | | | | | 1,582,123 | | |
Total Services: Consumer
|
| | | | | | | | | | 5,520,233 | | |
|
Investments
|
| |
Principal
|
| |
Value
|
| ||||||
SENIOR LOANS(a) (continued) | | | | ||||||||||
Telecommunications – 8.1% | | | | | | | | | | | | | |
Avaya, Inc., Tranche B Term Loan – First Lien, 6.651% (1-Month and 2-Month USD LIBOR + 4.250%, 0.000% Floor), 12/16/24
|
| | | $ | 5,511,962 | | | | | $ | 5,284,593 | | |
Rackspace Hosting (Inception Merger Sub, Inc.), 2017 Term Loan B – First Lien, 5.576% (3-Month USD LIBOR + 3.000%, 1.000% Floor), 11/03/23
|
| | | | 2,964,723 | | | | | | 2,745,155 | | |
Sprint Communications, Inc., 2018 Incremental Term Loan – First Lien, 5.438% (1-Month USD LIBOR + 3.000%, 0.750% Floor), 02/02/24
|
| | | | 2,342,396 | | | | | | 2,324,828 | | |
Total Telecommunications
|
| | | | | | | | | | 10,354,576 | | |
Transportation: Cargo – 4.2% | | | | | | | | | | | | | |
Commercial Barge Line Co. (American Commercial Lines), Initial Term Loan
– First Lien, 11.152% (1-Month USD LIBOR + 8.750%, 1.000% Floor), 11/12/20 |
| | | | 2,220,821 | | | | | | 1,510,159 | | |
Gruden Acquisition, Inc. (Quality Distribution LLC), Incremental Term Loan
– First Lien, 7.830% (3-Month USD LIBOR + 5.500%, 1.000% Floor), 08/18/22(b) |
| | | | 3,343,495 | | | | | | 3,326,777 | | |
Gruden Acquisition, Inc. (Quality Distribution LLC), Term Loan – Second Lien, 10.830% (3-Month USD LIBOR + 8.500%, 1.000% Floor),
08/18/23(b) |
| | | | 500,000 | | | | | | 497,500 | | |
Total Transportation: Cargo
|
| | | | | | | | | | 5,334,436 | | |
Wholesale – 1.4% | | | | | | | | | | | | | |
4L Technologies, Inc. (Clover Technologies Group LLC), Term Loan – First Lien, 6.902% (1-Month USD LIBOR + 4.500%, 1.000% Floor),
05/08/20(b) |
| | | | 790,828 | | | | | | 772,046 | | |
United Natural Foods, Term Loan B – First Lien, 6.652% (1-Month USD LIBOR + 4.250%, 0.000% Floor), 10/22/25
|
| | | | 1,194,000 | | | | | | 1,006,542 | | |
Total Wholesale
|
| | | | | | | | | | 1,778,588 | | |
Total Senior Loans
(Cost $174,336,988) |
| | | | | | | | |
|
168,512,621
|
| |
CORPORATE BONDS – 2.2% (1.6% of Total Investments) | | | | | | | | | | | | | |
Energy: Electricity – 0.1% | | | | | | | | | | | | | |
TerraForm Power Operating LLC, 4.250%, 01/31/23(f)
|
| | | | 99,000 | | | | | | 99,247 | | |
Media: Broadcasting & Subscription – 1.5% | | | | | | | | | | | | | |
Urban One, Inc., 7.375%, 04/15/22(f)
|
| | | | 2,000,000 | | | | | | 2,011,875 | | |
Telecommunications – 0.6% | | | | | | | | | | | | | |
GTT Communications, Inc., 7.875%, 12/31/24(f)
|
| | | | 325,000 | | | | | | 265,688 | | |
Rackspace Hosting, Inc., 8.625%, 11/15/24(f)
|
| | | | 508,000 | | | | | | 469,159 | | |
Total Telecommunications
|
| | | | | | | | | | 734,847 | | |
Total Corporate Bonds
(Cost $2,876,548) |
| | | | | | | | |
|
2,845,969
|
| |
|
Investments
|
| |
Shares
|
| |
Value
|
| ||||||
COMMON STOCKS – 0.3% (0.2% of Total Investments) | | | | | | | | | | | | | |
Capital Equipment – 0.3% | | | | | | | | | | | | | |
Project Investor Holdings, LLC*(b)(d)
|
| | | | 69,365 | | | | | $ | 694 | | |
Proppants Holdings, LLC*(b)(d)
|
| | | | 69,365 | | | | | | 346,825 | | |
Total Capital Equipment
|
| | | | | | | | | | 347,519 | | |
Energy: Oil & Gas – 0.0%(g) | | | | | | | | | | | | | |
HGIM Corp. (Harvey Gulf)*(b)
|
| | | | 2,717 | | | | | | 40,755 | | |
Retail – 0.0%(g) | | | | | | | | | | | | | |
Charming Charlie LLC*(b)(d)
|
| | | | 4,376,711 | | | | | | 0 | | |
Total Common Stocks
(Cost $1,243,680) |
| | | | | | | | |
|
388,274
|
| |
WARRANT – 0.2% (0.1% of Total Investments) | | | | | | | | | | | | | |
Energy: Oil & Gas – 0.2% | | | | | | | | | | | | | |
HGIM Corp. (Harvey Gulf), Expiration date: 07/02/23*(b)
(Cost $472,615) |
| | | | 12,139 | | | | | | 182,085 | | |
MONEY MARKET FUND – 7.4% (5.2% of Total Investments) | | | | | | | | | | | | | |
Morgan Stanley Institutional Liquidity Treasury Portfolio – Institutional Share Class, 2.19%(h)
(Cost $9,493,553) |
| | | | 9,493,553 | | | | | | 9,493,553 | | |
Total Investments in Securities – 141.3%
(Cost $188,423,384) |
| | | | | | | | |
|
181,422,502
|
| |
Line of Credit Payable (Cost $48,000,000) – (37.4)%
|
| | | | | | | | | | (48,000,000) | | |
Liabilities in Excess of Other Assets – (3.9)%
|
| | | | | | | | | | (4,980,920) | | |
Net Assets – 100.0%
|
| | | | | | | | | $ | 128,441,582 | | |
Schedule of Investments (unaudited) (concluded)June 30, 2019
SUMMARY OF SCHEDULE OF INVESTMENTS
|
| |
% of Net Assets
|
| |||
Aerospace & Defense
|
| | | | 3.9% | | |
Automotive
|
| | | | 3.9 | | |
Banking, Finance, Insurance & Real Estate
|
| | | | 7.0 | | |
Beverage, Food & Tobacco
|
| | | | 1.8 | | |
Capital Equipment
|
| | | | 2.6 | | |
Chemicals, Plastics & Rubber
|
| | | | 1.5 | | |
Construction & Building
|
| | | | 1.2 | | |
Consumer Products: Durable
|
| | | | 1.5 | | |
Consumer Products: Non Durable
|
| | | | 3.9 | | |
Containers, Packaging & Glass
|
| | | | 2.8 | | |
Energy: Electricity
|
| | | | 0.1 | | |
Energy: Oil & Gas
|
| | | | 4.6 | | |
Environmental Industries
|
| | | | 0.7 | | |
Healthcare & Pharmaceuticals
|
| | | | 4.9 | | |
High Tech Industries
|
| | | | 35.5 | | |
Hotel, Gaming & Leisure
|
| | | | 6.1 | | |
Media: Advertising, Printing & Publishing
|
| | | | 0.6 | | |
Media: Broadcasting & Subscription
|
| | | | 5.8 | | |
Media: Diversified & Production
|
| | | | 1.5 | | |
Metals & Mining
|
| | | | 1.3 | | |
Retail
|
| | | | 5.0 | | |
Services: Business
|
| | | | 19.1 | | |
Services: Consumer
|
| | | | 4.3 | | |
Telecommunications
|
| | | | 8.7 | | |
Transportation: Cargo
|
| | | | 4.2 | | |
Wholesale
|
| | | | 1.4 | | |
Money Market Fund
|
| | | | 7.4 | | |
Total Investments
|
| | | | 141.3 | | |
Line of Credit Payable
|
| | | | (37.4) | | |
Liabilities in Excess of Other Assets
|
| | | | (3.9) | | |
Net Assets
|
| | | | 100.0% | | |
THL Credit Senior Loan Fund Statement of Assets and Liabilities |
| |
June 30, 2019
(unaudited) |
| |||
ASSETS | | | | | | | |
Investments, at value (cost $188,423,384)
|
| | | $ | 181,422,502 | | |
Cash
|
| | | | 364,226 | | |
Receivable for investments sold
|
| | | | 387,077 | | |
Interest receivable
|
| | | | 668,769 | | |
Due from advisor (Note 5)
|
| | | | 128,832 | | |
Prepaid and other expenses
|
| | | | 28,855 | | |
Total Assets
|
| | | | 183,000,261 | | |
LIABILITIES | | | | | | | |
Borrowings (Note 4)
|
| | | | 48,000,000 | | |
Payable for securities purchased
|
| | | | 6,322,750 | | |
Advisory fee payable (Note 5)
|
| | | | 116,440 | | |
Net unrealized depreciation on delayed draw loan commitments
|
| | | | 1,100 | | |
Other accrued expenses
|
| | | | 118,389 | | |
Total Liabilities
|
| | | | 54,558,679 | | |
Commitments and Contingencies (Note 9) | | | | | | | |
Net Assets
|
| | | $ | 128,441,582 | | |
COMPONENTS OF NET ASSETS | | | | | | | |
Paid-in-capital
|
| | | $ | 141,296,153 | | |
Total distributable loss
|
| | | | (12,854,571) | | |
Net Assets
|
| | | $ | 128,441,582 | | |
Common Shares Outstanding (unlimited shares authorized; $0.001 per share par value)
|
| | | | 7,418,990 | | |
Net Asset Value Per Share
|
| | | $ | 17.31 | | |
THL Credit Senior Loan Fund Statement of Operations |
| |
For the
Six Months Ended June 30, 2019 (unaudited) |
| |||
INVESTMENT INCOME: | | | | | | | |
Interest
|
| | | $ | 6,791,575 | | |
Total Investment Income
|
| | | | 6,791,575 | | |
EXPENSES: | | | | | | | |
Interest expense & fees on borrowings (Note 4)
|
| | | | 874,308 | | |
Advisory fees (Note 5)
|
| | | | 704,863 | | |
Professional fees
|
| | | | 118,098 | | |
Trustees’ fees and expenses (Note 5)
|
| | | | 70,190 | | |
Administration fees
|
| | | | 61,821 | | |
Insurance expense
|
| | | | 38,549 | | |
Printing and mailing expense
|
| | | | 19,167 | | |
Custodian fees
|
| | | | 12,397 | | |
NYSE listing fee
|
| | | | 11,981 | | |
Transfer Agent fees
|
| | | | 10,936 | | |
Other expenses
|
| | | | 61,674 | | |
Total Expenses
|
| | | | 1,983,984 | | |
Less expense waivers and reimbursements (Note 5)
|
| | | | (124,321) | | |
Net Expenses
|
| | | | 1,859,663 | | |
Net Investment Income
|
| | | | 4,931,912 | | |
NET REALIZED AND CHANGE IN UNREALIZED GAIN (LOSS) ON INVESTMENTS AND DELAYED DRAW LOAN COMMITMENTS:
|
| | | | | | |
Net realized loss on investments
|
| | | | (3,073,811) | | |
Net change in unrealized appreciation on investments
|
| | | | 2,826,914 | | |
Net change in unrealized appreciation on delayed draw loan commitments
|
| | | | 2,068 | | |
Net realized and change in unrealized loss on investments and on delayed draw loan commitments
|
| | | | (244,829) | | |
Net Increase in Net Assets from Operations
|
| | | $ | 4,687,083 | | |
THL Credit Senior Loan Fund Statement of Changes in Net Assets |
| |
Six Months
Ended June 30, 2019 (unaudited) |
| |
Year Ended
December 31, 2018 |
| ||||||
OPERATIONS | | | | | | | | | | | | | |
Net investment income
|
| | | $ | 4,931,912 | | | | | $ | 9,397,430 | | |
Net realized loss on investments
|
| | | | (3,073,811) | | | | | | (3,324,798) | | |
Net change in unrealized appreciation (depreciation) on investments and delayed draw loan commitments
|
| | | | 2,828,982 | | | | | | (5,537,060) | | |
Net increase in net assets from operations
|
| | | | 4,687,083 | | | | | | 535,572 | | |
Distributions to shareholders(1)
|
| | | | (4,495,908) | | | | | | (8,583,771) | | |
Net Increase (Decrease) in Net Assets
|
| | | | 191,175 | | | | | | (8,048,199) | | |
NET ASSETS: | | | | | | | | | | | | | |
Beginning of period
|
| | | $ | 128,250,407 | | | | | $ | 136,298,606 | | |
End of period
|
| | | $ | 128,441,582 | | | | | $ | 128,250,407 | | |
THL Credit Senior Loan Fund Statement of Cash Flows |
| |
For the Six Months
Ended June 30, 2019 |
| |||
Cash Flows From Operating Activities: | | | | | | | |
Net increase in net assets from operations
|
| | | $ | 4,687,083 | | |
Adjustments to reconcile net increase in net assets from operations to net cash provided by operating activities:
|
| | | | | | |
Purchases of investments
|
| | | | (34,747,639) | | |
Proceeds from sales of investments
|
| | | | 34,684,603 | | |
Net increase in money market funds
|
| | | | (112,652) | | |
Net change in unrealized appreciation on investments
|
| | | | (2,826,914) | | |
Net change in unrealized depreciation on delayed draw loan commitments
|
| | | | (2,068) | | |
Net accretion/amortization of premium or discount
|
| | | | (289,036) | | |
Net increase in realized gains from principal paydowns
|
| | | | (260,696) | | |
Net realized loss on investments
|
| | | | 3,073,811 | | |
Decrease in receivable for investments sold
|
| | | | 1,185,790 | | |
Increase in interest receivable
|
| | | | (1,480) | | |
Increase in prepaid expenses
|
| | | | (4,127) | | |
Decrease in due from advisor
|
| | | | 14,264 | | |
Increase in payable for investments purchased
|
| | | | 1,249,333 | | |
Decrease in advisory fee payable
|
| | | | (11,764) | | |
Decrease in other accrued expenses
|
| | | | (112,154) | | |
Net cash provided by operating activities
|
| | | | 6,526,354 | | |
Cash Flows from Financing Activities: | | | | | | | |
Proceeds from borrowings
|
| | | | 4,000,000 | | |
Repayment of borrowings
|
| | | | (6,000,000) | | |
Distributions paid
|
| | | | (4,495,908) | | |
Net cash used by financing activities
|
| | | | (6,495,908) | | |
Net increase in cash
|
| | | | 30,446 | | |
Cash, beginning of period
|
| | |
|
333,780
|
| |
Cash, end of period
|
| | | $ | 364,226 | | |
Supplemental disclosure of cash flow information: | | | | | | | |
Cash paid for interest on borrowings
|
| | | $ | 874,308 | | |
THL Credit Senior Loan Fund Financial Highlights |
| |
For the
Six Months Ended June 30, 2019 (unaudited) |
| |
Year Ended
December 31, 2018 |
| |
Year Ended
December 31, 2017 |
| |
Year Ended
December 31, 2016 |
| |
Year Ended
December 31, 2015 |
| |
Year Ended
December 31, 2014 |
| ||||||||||||||||||
Common Shares | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Per Share Operating Performance | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Asset Value, beginning of period
|
| | | $ | 17.29 | | | | | $ | 18.37 | | | | | $ | 18.64 | | | | | $ | 17.25 | | | | | $ | 18.74 | | | | | $ | 19.42 | | |
Operations: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income(1)
|
| | | | 0.66 | | | | | | 1.27 | | | | | | 1.26 | | | | | | 1.37 | | | | | | 1.36 | | | | | | 1.25 | | |
Net realized and change in unrealized gain (loss) on investments and delayed draw loan
commitments(2) |
| | | | (0.03) | | | | | | (1.19) | | | | | | (0.31) | | | | | | 1.29 | | | | | | (1.50) | | | | | | (0.50) | | |
Total income (loss) from operations
|
| | | | 0.63 | | | | | | 0.08 | | | | | | 0.95 | | | | | | 2.66 | | | | | | (0.14) | | | | | | 0.75 | | |
Distributions to shareholders from: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net investment income
|
| | | | (0.61) | | | | | | (1.16) | | | | | | (1.22) | | | | | | (1.27) | | | | | | (1.27) | | | | | | (1.32) | | |
Net realized gains
|
| | | | — | | | | | | — | | | | | | — | | | | | | — | | | | | | (0.08) | | | | | | (0.11) | | |
Total distributions to shareholders
|
| | | | (0.61) | | | | | | (1.16) | | | | | | (1.22) | | | | | | (1.27) | | | | | | (1.35) | | | | | | (1.43) | | |
Net assets value per share, end of period
|
| | | $ | 17.31 | | | | | $ | 17.29 | | | | | $ | 18.37 | | | | | $ | 18.64 | | | | | $ | 17.25 | | | | | $ | 18.74 | | |
Market price per share, end of period
|
| | | $ | 15.25 | | | | | $ | 14.86 | | | | | $ | 16.86 | | | | | $ | 18.74 | | | | | $ | 15.86 | | | | | $ | 17.06 | | |
Total return:(3) | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net asset value
|
| | | | 3.63% | | | | | | 0.24% | | | | | | 5.23% | | | | | | 15.99% | | | | | | (0.96)% | | | | | | 3.87% | | |
Market value
|
| | | | 6.71% | | | | | | (5.55)% | | | | | | (3.65)% | | | | | | 27.75% | | | | | | 0.69% | | | | | | 0.58% | | |
Ratios/Supplemental Data: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Net Assets, end of period (000’s)
|
| | | $ | 128,442 | | | | | $ | 128,250 | | | | | $ | 136,299 | | | | | $ | 138,258 | | | | | $ | 127,955 | | | | | $ | 139,025 | | |
Ratio of expenses, including interest on borrowings,
to average net assets |
| | | | 2.88%(4) | | | | | | 3.13% | | | | | | 3.03% | | | | | | 2.65% | | | | | | 2.63% | | | | | | 2.38% | | |
Ratio of net investment income, including interest on
borrowings, to average net assets |
| | | | 7.64%(4) | | | | | | 6.89% | | | | | | 6.76% | | | | | | 7.72% | | | | | | 7.37% | | | | | | 6.44% | | |
Portfolio turnover rate
|
| | | | 20% | | | | | | 57% | | | | | | 59% | | | | | | 41% | | | | | | 34% | | | | | | 93% | | |
Borrowings: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Aggregate principal amount, end of period (000s)
|
| | | $ | 48,000 | | | | | $ | 50,000 | | | | | $ | 58,000 | | | | | $ | 52,000 | | | | | $ | 52,000 | | | | | $ | 49,000 | | |
Average borrowings outstanding during the period (000s)
|
| | | $ | 47,293 | | | | | $ | 57,978 | | | | | $ | 57,329 | | | | | $ | 52,929 | | | | | $ | 56,099 | | | | | $ | 41,834 | | |
Asset coverage, end of period per $1,000 of debt(5)
|
| | | $ | 3,676 | | | | | $ | 3,565 | | | | | $ | 3,350 | | | | | $ | 3,658 | | | | | $ | 3,461 | | | | | $ | 3,837 | | |
Notes to Financial Statements (unaudited)June 30, 2019
Notes to Financial Statements (unaudited) (continued)June 30, 2019
Notes to Financial Statements (unaudited) (continued)June 30, 2019
Asset Type
|
| |
Level 1
|
| |
Level 2
|
| |
Level 3
|
| |
Total
|
| ||||||||||||
Senior Loans | | | | | | | | | | | | | | | | | | | | | | | | | |
Aerospace & Defense
|
| | | $ | — | | | | | $ | 2,726,464 | | | | | $ | 2,330,554 | | | | | $ | 5,057,018 | | |
Automotive
|
| | | | — | | | | | | 4,162,499 | | | | | | 879,581 | | | | | | 5,042,080 | | |
Banking, Finance, Insurance & Real Estate
|
| | | | — | | | | | | 9,044,660 | | | | | | — | | | | | | 9,044,660 | | |
Beverage, Food & Tobacco
|
| | | | — | | | | | | 861,382 | | | | | | 1,503,348 | | | | | | 2,364,730 | | |
Capital Equipment
|
| | | | — | | | | | | 2,943,892 | | | | | | — | | | | | | 2,943,892 | | |
Chemicals, Plastics & Rubber
|
| | | | — | | | | | | — | | | | | | 1,967,612 | | | | | | 1,967,612 | | |
Construction & Building
|
| | | | — | | | | | | 1,492,396 | | | | | | — | | | | | | 1,492,396 | | |
Consumer Products: Durable
|
| | | | — | | | | | | 1,891,388 | | | | | | — | | | | | | 1,891,388 | | |
Consumer Products: Non Durable
|
| | | | — | | | | | | 4,820,635 | | | | | | 173,915 | | | | | | 4,994,550 | | |
Containers, Packaging & Glass
|
| | | | — | | | | | | 2,485,937 | | | | | | 1,083,000 | | | | | | 3,568,937 | | |
Energy: Oil & Gas
|
| | | | — | | | | | | 5,638,885 | | | | | | — | | | | | | 5,638,885 | | |
Environmental Industries
|
| | | | — | | | | | | — | | | | | | 950,400 | | | | | | 950,400 | | |
Healthcare & Pharmaceuticals
|
| | | | — | | | | | | 5,591,493 | | | | | | 719,596 | | | | | | 6,311,089 | | |
High Tech Industries
|
| | | | — | | | | | | 36,438,920 | | | | | | 9,125,529 | | | | | | 45,564,449 | | |
Hotel, Gaming & Leisure
|
| | | | — | | | | | | 5,341,470 | | | | | | 2,480,911 | | | | | | 7,822,381 | | |
Media: Advertising, Printing & Publishing
|
| | | | — | | | | | | 785,449 | | | | | | — | | | | | | 785,449 | | |
Media: Broadcasting & Subscription
|
| | | | — | | | | | | 5,554,775 | | | | | | — | | | | | | 5,554,775 | | |
Media: Diversified & Production
|
| | | | — | | | | | | 1,487,522 | | | | | | 495,000 | | | | | | 1,982,522 | | |
Metals & Mining
|
| | | | — | | | | | | 676,438 | | | | | | 989,869 | | | | | | 1,666,307 | | |
Retail
|
| | | | — | | | | | | 6,090,624 | | | | | | 285,977 | | | | | | 6,376,601 | | |
Services: Business
|
| | | | — | | | | | | 23,515,286 | | | | | | 989,381 | | | | | | 24,504,667 | | |
Services: Consumer
|
| | | | — | | | | | | 4,533,939 | | | | | | 986,294 | | | | | | 5,520,233 | | |
Telecommunications
|
| | | | — | | | | | | 10,354,576 | | | | | | — | | | | | | 10,354,576 | | |
Transportation: Cargo
|
| | | | — | | | | | | 1,510,159 | | | | | | 3,824,277 | | | | | | 5,334,436 | | |
Wholesale
|
| | | | — | | | | | | 1,006,542 | | | | | | 772,046 | | | | | | 1,778,588 | | |
Corporate Bonds*
|
| | | | — | | | | | | 2,845,969 | | | | | | — | | | | | | 2,845,969 | | |
Common Stocks*
|
| | | | — | | | | | | — | | | | | | 388,274 | | | | | | 388,274 | | |
Warrant*
|
| | | | — | | | | | | — | | | | | | 182,085 | | | | | | 182,085 | | |
Money Market Fund
|
| | | | 9,493,553 | | | | | | — | | | | | | — | | | | | | 9,493,553 | | |
Total Investments
|
| | | $ | 9,493,553 | | | | | $ | 141,801,300 | | | | | $ | 30,127,649 | | | | | $ | 181,422,502 | | |
Notes to Financial Statements (unaudited) (continued)June 30, 2019
| | |
Senior Loans
|
| |
Common Stocks
|
| |
Warrants
|
| |
Total
|
| ||||||||||||
Balance as of December 31, 2018
|
| | | $ | 36,736,956 | | | | | $ | 126,187 | | | | | $ | 503,768 | | | | | $ | 37,366,911 | | |
Realized loss
|
| | | | (1,904,259) | | | | | | — | | | | | | — | | | | | | (1,904,259) | | |
Change in unrealized appreciation/(depreciation)
|
| | | | 1,616,362 | | | | | | (242,596) | | | | | | (321,683) | | | | | | 1,052,083 | | |
Amortization (accretion)
|
| | | | (227,316) | | | | | | — | | | | | | — | | | | | | (227,316) | | |
Purchases
|
| | | | 2,791,026 | | | | | | — | | | | | | — | | | | | | 2,791,026 | | |
Sales and principal paydowns
|
| | | | (7,109,202) | | | | | | — | | | | | | — | | | | | | (7,109,202) | | |
Transfers into Level 3
|
| | | | 12,759,268 | | | | | | 504,683 | | | | | | — | | | | | | 13,263,951 | | |
Transfers out of Level 3
|
| | | | (15,105,545) | | | | | | — | | | | | | — | | | | | | (15,105,545) | | |
Balance as of June 30, 2019
|
| | | $ | 29,557,290 | | | | | $ | 388,274 | | | | | $ | 182,085 | | | | | $ | 30,127,649 | | |
Net change in unrealized depreciation attributable to level 3 investments held at June 30, 2019
|
| | | $ | (220,908) | | | | | $ | (242,596) | | | | | $ | (321,684) | | | | | $ | (785,188) | | |
| | |
Fair Value
|
| |
Valuation Technique
|
| |
Unobservable Inputs
|
| |
Range
|
| |
Direction Change in
Fair Value Resulting from Increase in Unobservable Inputs(1) |
| | | |||||||
Senior Loans
|
| | | $ | 29,271,313 | | | |
Third-party vendor
pricing service |
| |
Broker quotes
|
| |
N/A
|
| |
Increase
|
| | | ||||
Senior Loans
|
| | | | 285,977 | | | |
Recoverability
|
| |
EBITDA
|
| |
$11.3m
|
| |
Increase
|
| | | ||||
| | | | | | | | | | | |
EV Multiple
|
| |
3.4x
|
| |
Increase
|
| | | ||||
| | | | | | | | | | | |
Liquidation proceeds
|
| |
$28.7m
|
| |
Increase
|
| | | ||||
Common Stock
|
| | | | 387,580 | | | |
Third-party vendor
pricing service |
| |
Broker quotes
|
| |
N/A
|
| |
Increase
|
| | | ||||
Common Stock
|
| | | | 694 | | | |
Market comparable
companies(2) |
| |
EBITDA
|
| |
$43.0m
|
| |
Increase
|
| | | ||||
| | | | | | | | | | | |
EV Multiple
|
| |
5.0x
|
| |
Increase
|
| | | | | | |
Common Stock
|
| | | | — | | | |
Recoverability
|
| |
EBITDA
|
| |
$11.3m
|
| |
Increase
|
| | | ||||
| | | | | | | | | | | |
EV Multiple
|
| |
3.4x
|
| |
Increase
|
| | | ||||
| | | | | | | | | | | |
Liquidation proceeds
|
| |
$28.7m
|
| |
Increase
|
| | | ||||
Warrants
|
| | | | 182,085 | | | |
Third-party vendor
pricing service |
| |
Broker quotes
|
| |
N/A
|
| |
Increase
|
| | |
Notes to Financial Statements (unaudited) (continued)June 30, 2019
Notes to Financial Statements (unaudited) (continued)June 30, 2019
Notes to Financial Statements (unaudited) (continued)June 30, 2019
Notes to Financial Statements (unaudited) (continued)June 30, 2019
|
Shares of common stock, beginning of period
|
| | | | 7,418,990 | | |
|
Change in shares of common stock outstanding
|
| | | | — | | |
|
Shares of common stock, end of period
|
| | | | 7,418,990 | | |
Notes to Financial Statements (unaudited) (continued)June 30, 2019
| | |
Ordinary
Income |
| |
Long-Term
Capital Gain |
| ||||||
2017
|
| | | $ | 9,080,482 | | | | | $ | — | | |
2018
|
| | | $ | 8,583,771 | | | | | $ | — | | |
|
Short-Term
|
| |
Long-Term
|
| |
Total
|
|
|
$ —
|
| |
$4,069,575
|
| |
$4,069,575
|
|
|
Undistributed Net
Investment Income |
| |
Accumulated Net
Realized Loss on Investments |
| |
Net Unrealized
Depreciation on Investments |
|
|
$854,794
|
| |
$4,069,575
|
| |
$9,830,965
|
|
Notes to Financial Statements (unaudited) (concluded)June 30, 2019
Loan
|
| |
Principal
Amount |
| |
Cost
|
| |
Value
|
| |
Net Unrealized
Depreciation |
| ||||||||||||
Charming Charlie LLC, Second Amendment Delayed Draw Term Loan – First Lien
|
| | | $ | 129,689 | | | | | $ | 129,689 | | | | | $ | 129,689 | | | | | $ | — | | |
Charming Charlie LLC, Vendor Payment Financing Facility – First Lien
|
| | | | 152,575 | | | | | | 152,575 | | | | | | 152,575 | | | | | | — | | |
Heartland Dental LLC, Delayed Draw Term Loan – First Lien
|
| | | | 24,457 | | | | | | 24,334 | | | | | | 23,234 | | | | | | 1,100 | | |
Shareholder
|
| |
Percent of Ownership
|
| |||
Advisors Asset Management Inc.
|
| | | | 18.0% | | |
Supplemental Information (unaudited)June 30, 2019
Supplemental Information (unaudited) (continued)June 30, 2019
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 5,205,287 | | | | | | 75.36% | | |
Withheld
|
| | | | 1,701,846 | | | | | | 24.64% | | |
Total
|
| | | | 6,907,133 | | | | | | 100.00% | | |
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 6,840,103 | | | | | | 99.03% | | |
Withheld
|
| | | | 67,030 | | | | | | 0.97% | | |
Total
|
| | | | 6,907,133 | | | | | | 100.00% | | |
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 6,827,033 | | | | | | 98.84% | | |
Withheld
|
| | | | 80,100 | | | | | | 1.16% | | |
Total
|
| | | | 6,907,133 | | | | | | 100.00% | | |
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 4,052,072 | | | | | | 98.00% | | |
Against
|
| | | | 50,949 | | | | | | 1.23% | | |
Abstain
|
| | | | 32,006 | | | | | | 0.77% | | |
Total
|
| | | | 4,135,027 | | | | | | 100.00% | | |
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 2,703,831 | | | | | | 65.39% | | |
Against
|
| | | | 1,380,905 | | | | | | 33.39% | | |
Abstain
|
| | | | 50,391 | | | | | | 1.22% | | |
Total
|
| | | | 4,135,127 | | | | | | 100.00% | | |
Supplemental Information (unaudited) (continued)June 30, 2019
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 6,719,921 | | | | | | 95.90% | | |
Against
|
| | | | 45,084 | | | | | | 0.70% | | |
Abstain
|
| | | | 269,686 | | | | | | 3.40% | | |
Total
|
| | | | 7,034,691 | | | | | | 100.00% | | |
| | |
Number of Shares
|
| |
% of Shares Voted
|
| ||||||
For
|
| | | | 6,778,186 | | | | | | 96.35% | | |
Against
|
| | | | 24,377 | | | | | | 0.35% | | |
Abstain
|
| | | | 232,128 | | | | | | 3.30% | | |
Total
|
| | | | 7,034,691 | | | | | | 100.00% | | |
Supplemental Information (unaudited) (continued)June 30, 2019
Supplemental Information (unaudited) (concluded)June 30, 2019
Additional Information (unaudited)June 30, 2019
| Trustees | |
| Brian Good | |
| Robert J. Hickey | |
| Joseph L. Morea*# | |
| Laurie A. Hesslein*# | |
| Ronald J. Burton*# | |
| Michael Perino*# | |
| Officers | |
| Brian Good | |
| Jennifer Wilson | |
| Andrew Morris | |
| Sabrina Rusnak-Carlson | |
| Investment Adviser | |
| THL Credit Advisors LLC | |
| Administrator, Custodian & Accounting Agent | |
| The Bank of New York Mellon | |
| Transfer Agent, Dividend Paying Agent and Registrar | |
| American Stock Transfer and Trust Company | |
| Independent Registered Public Accounting Firm | |
| RSM US LLP | |
| Legal Counsel | |
| Dechert LLP | |