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Section 1: 10-K/A (10-K/A)

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

_______________________

FORM 10-K/A

(Amendment No. 1)

_______________________

x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2017

OR 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

FOR THE TRANSITION PERIOD FROM          TO         

COMMISSION FILE NUMBER: 814-00638

_______________________

TICC CAPITAL CORP.

(Exact name of registrant as specified in its charter)

_______________________

Maryland

 

20-0188736

(State of Incorporation)

 

 

(I.R.S. Employer Identification Number)

 

8 Sound Shore Drive, Suite 255

Greenwich, CT 06830

(Address of principal executive offices) (Zip Code)

Registrant’s telephone number, including area code: (203) 983-5275

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

Title of Each Class

 

Name of Each Exchange On Which Registered

Common Stock, par value $0.01 per share

 

NASDAQ Global Select Market

6.50% Notes due 2024

 

NASDAQ Global Select Market

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 x.

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ¨ No x.

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 (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x 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 (§232.405 of this chapter) 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 if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K (§ 229.405 of this chapter) is not contained herein, and will not be contained, to the best of Registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. x

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

Large accelerated filer ¨

 

Accelerated filer x

Non-accelerated filer ¨

 

Smaller reporting company ¨

(Do not check if a 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 any 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 Act).  Yes ¨ No x.

The aggregate market value of common stock held by non-affiliates of the Registrant on June 30, 2017, based on the closing price on that date of $6.34 on the NASDAQ Global Select Market, was $307,121,781. For the purposes of calculating this amount only, all directors and executive officers of the Registrant have been treated as affiliates. There were 51,190,017 shares of the Registrant’s common stock outstanding as of February 27, 2018.

 

EXPLANATORY NOTE

TICC Capital Corp. (“TICC” or “the Company”) is filing this Amendment No. 1 to the Annual Report on Form 10-K/A for the purpose of correcting a typographical error in the PricewaterhouseCoopers LLP’s Report of Independent Registered Public Accounting Firm (“Auditor’s Report”) corresponding to the consolidated statements of assets and liabilities, including the consolidated schedules of investments, of TICC and its subsidiaries as of December 31, 2017 and December 31, 2016, the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2017, including the related notes and financial statement schedule listed in the index appearing under Item 15(c) of the 2017 Annual Report on Form 10-K (collectively referred to as the “consolidated financial statements”) and the Company's internal control over financial reporting as of December 31, 2017.

The typographical error that was corrected concerns the date of the Auditor’s Report. The auditors’ opinion on the Company’s consolidated financial statements, financial statement schedule, and internal control effectiveness remained unchanged. The Auditor’s Report was included in our 2017 Annual Report on Form 10-K as originally filed with the Securities and Exchange Commission (the “SEC”) on March 1, 2018 (the “Original Filing”). Except for the aforementioned correction to the Auditor’s Report, this Amendment does not amend, modify or update the Original Filing in any respect. Information included in this Amendment is stated as of December 31, 2017 and does not reflect events that have occurred subsequent to the filing of the Original Filing and, accordingly, this Amendment should be read in conjunction with our Original Filing made with the SEC.

This Annual Report on Form 10-K/A consists of a cover page, this explanatory note, Item 8 (as amended) of the 2017 Annual Report on Form 10-K (including our consolidated financial statements and the corrected Auditor’s Report), Item 15 of the 2017 Annual Report on Form 10-K, the signature page and the required certifications of TICC’s chief executive officer and the chief financial officer.

 

Item 8. Consolidated Financial Statements and Supplementary Data

Index to Consolidated Financial Statements

 

 

Page

Management’s Report on Internal Control Over Financial Reporting

 

F-1

Report of Independent Registered Public Accounting Firm

 

F-2

Consolidated Statements of Assets and Liabilities as of December 31, 2017 and December 31, 2016

 

F-4

Consolidated Schedule of Investments as of December 31, 2017

 

F-5

Consolidated Schedule of Investments as of December 31, 2016

 

F-12

Consolidated Statements of Operations for the years ended December 31, 2017, December 31, 2016 and
December 31, 2015

 

F-20

Consolidated Statements of Changes in Net Assets for the years ended December 31, 2017, December 31, 2016 and
December 31, 2015

 

F-22

Consolidated Statements of Cash Flows for the years ended December 31, 2017, December 31, 2016 and
December 31, 2015

 

F-23

Notes to Consolidated Financial Statements

 

F-24

1

MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING

Management is responsible for establishing and maintaining adequate internal control over financial reporting, and for performing an assessment of the effectiveness of internal control over financial reporting as of December 31, 2017. Internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Management performed an assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017 based upon criteria in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (“COSO”). Based on our assessment, management determined that the Company’s internal control over financial reporting was effective as of December 31, 2017 based on the criteria in Internal Control — Integrated Framework issued by COSO. PricewaterhouseCoopers LLP, our independent registered public accounting firm, has issued an attestation report on the effectiveness of the Company’s internal control over financial reporting as of December 31, 2017, as stated in its report, which is included herein.

F-1

Report of Independent Registered Public Accounting Firm

To the Board of Directors and Shareholders of TICC Capital Corp.:

Opinions on the Consolidated Financial Statements and Internal Control over Financial Reporting

We have audited the accompanying consolidated statements of assets and liabilities, including the consolidated schedules of investments, of TICC Capital Corp. and its subsidiaries as of December 31, 2017 and December 31, 2016, and the related consolidated statements of operations, changes in net assets and cash flows for each of the three years in the period ended December 31, 2017, including the related notes and financial statement schedule listed in the index appearing under item 15(c) (collectively referred to as the “consolidated financial statements”).  We also have audited the Company’s internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO). 

In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Company as of December 31, 2017 and December 31, 2016, and the results of their operations, changes in  their net assets and their cash flows for each of the three years in the period ended December 31, 2017 in conformity with accounting principles generally accepted in the United States of America. Also in our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2017, based on criteria established in Internal Control — Integrated Framework (2013) issued by the COSO.

Basis for Opinions

The Company’s management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control over Financial Reporting. Our responsibility is to express opinions on the Company’s consolidated financial statements and on the Company’s internal control over financial reporting based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (“PCAOB”) and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.

Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks.  Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements.  Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.  Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our procedures included confirmation of securities owned as of December 31, 2017 and December 31, 2016 by correspondence with the custodians and transfer agent.  Our audits also included performing such other procedures as we considered necessary in the circumstances.  We believe that our audits provide a reasonable basis for our opinions.

F-2

Definition and Limitations of Internal Control over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles.  A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ PricewaterhouseCoopers LLP

New York, New York

March 1, 2018

We have served as the Company’s auditor since 2003.

F-3

TICC CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

 

December 31,
2017

 

December 31,
2016

ASSETS

 

 

 

 

 

 

 

 

Non-affiliated/non-control investments (cost: $ 418,990,080 @ 12/31/17;
$616,542,612 @ 12/31/16)

 

$

400,223,439

 

 

$

578,297,069

 

Affiliated investments (cost: $10,528,740 @ 12/31/17; $7,497,229 @ 12/31/16)

 

 

18,218,787

 

 

 

11,626,007

 

Cash and cash equivalents

 

 

30,013,842

 

 

 

8,261,698

 

Restricted cash

 

 

 

 

 

3,451,636

 

Interest and distributions receivable

 

 

5,085,494

 

 

 

9,682,672

 

Securities sold not settled

 

 

 

 

 

7,406

 

Other assets

 

 

579,694

 

 

 

1,130,018

 

Total assets

 

$

454,121,256

 

 

$

612,456,506

 

LIABILITIES

 

 

 

 

 

 

 

 

Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs

 

$

62,340,159

 

 

$

 

Base management fee and net investment income incentive fee payable to affiliate

 

 

2,706,099

 

 

 

3,673,381

 

Accrued interest payable

 

 

11,621

 

 

 

1,731,111

 

Accrued expenses

 

 

644,735

 

 

 

1,089,043

 

Notes payable – TICC CLO 2012-1 LLC, net of discount and deferred
issuance costs

 

 

 

 

 

125,853,720

 

Notes payable – Convertible Notes, net of deferred issuance costs

 

 

 

 

 

94,116,753

 

Total liabilities

 

 

65,702,614

 

 

 

226,464,008

 

COMMITMENTS AND CONTINGENCIES (Note 10)

 

 

 

 

 

 

 

 

NET ASSETS

 

 

 

 

 

 

 

 

Common stock, $0.01 par value, 100,000,000 shares authorized; 51,479,409 and 51,479,409 shares issued and outstanding, respectively

 

 

514,794

 

 

 

514,794

 

Capital in excess of par value

 

 

529,297,749

 

 

 

562,050,722

 

Net unrealized depreciation on investments

 

 

(11,076,594

)

 

 

(34,116,765

)

Accumulated net realized losses on investments

 

 

(100,007,929

)

 

 

(95,605,057

)

Accumulated realized losses on extinguishment of debt

 

 

(5,237,116

)

 

 

(3,228,079

)

Distributions in excess of net investment income

 

 

(25,072,262

)

 

 

(43,623,117

)

Total net assets

 

 

388,418,642

 

 

 

385,992,498

 

Total liabilities and net assets

 

$

454,121,256

 

 

$

612,456,506

 

Net asset value per common share

 

$

7.55

 

 

$

7.50

 

See Accompanying Notes.

F-4

TICC CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS

December 31, 2017

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR VALUE(2)

 

% of Net
Assets

Senior Secured Notes

 

 

 

 

 

 

 

 

 

 

 

 

Aerospace and Defense

 

 

 

 

 

 

 

 

 

 

 

 

Novetta, LLC

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 6.70%  (LIBOR + 5.00%), (1.00% floor) due October 16, 2022(4)(5)(6)(15)

 

$

 5,586,000

 

$

 5,534,900

 

$

 5,399,819

 

 

 

Total Aerospace and Defense

 

 

 

 

$

 5,534,900

 

$

 5,399,819

 

1.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Business Services

 

 

 

 

 

 

 

 

 

 

 

 

Imagine! Print Solutions, LLC

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 10.45% (LIBOR + 8.75%), (1.00% floor) due June 21, 2023(4)(5)(15)

 

$

 15,000,000

 

$

 14,815,027

 

$

 14,400,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Intralinks, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 5.70% (LIBOR + 4.00%), (1.00% floor) due November 14, 2024(4)(5)(15)

 

 

5,000,000

 

 

4,975,253

 

 

4,968,750

 

 

 

second lien senior secured notes, 9.70% (LIBOR + 8.00%), (1.00% floor) due November 14, 2025(4)(5)(6)(15)

 

 

10,560,000

 

 

10,492,764

 

 

10,494,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Polycom, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 11.52% (LIBOR + 10.00%),
(1.00% floor) due September 27, 2024(4)(5)(16)

 

 

13,000,000

 

 

12,759,617

 

 

12,983,750

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Premiere Global Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

senior secured notes, 7.90% (LIBOR + 6.50%), (1.00% floor) due
December 8, 2021(4)(5)(6)(14)(15)

 

 

15,605,055

 

 

14,450,063

 

 

15,312,460

 

 

 

second lien senior secured notes, 10.85% (LIBOR + 9.50%), (1.00% floor) due June 6, 2022(4)(5)(14)(16)

 

 

10,000,000

 

 

9,739,241

 

 

9,341,700

 

 

 

Total Business Services

 

 

 

 

$

 67,231,965

 

$

 67,500,660

 

17.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

Jackson Hewitt Tax Service, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 8.38% (LIBOR + 7.00%), (1.00% floor) due July 30, 2020(4)(5)(6)(15)

 

$

 19,601,471

 

$

 19,318,775

 

$

 19,282,947

 

 

 

Total Consumer Services

 

 

 

 

$

 19,318,775

 

$

 19,282,947

 

4.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Diversified Insurance

 

 

 

 

 

 

 

 

 

 

 

 

AmeriLife Group LLC

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 6.32% (LIBOR + 4.75%), (1.00% floor) due July 10, 2022(4)(5)(6)(16)

 

$

 15,408,145

 

$

 15,294,886

 

$

 15,177,023

 

 

 

Total Diversified Insurance

 

 

 

 

$

 15,294,886

 

$

 15,177,023

 

3.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Education

 

 

 

 

 

 

 

 

 

 

 

 

Edmentum, Inc. (f/k/a Plato, Inc.)

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 7.88% (LIBOR + 4.50%), (1.00% floor) Cash, 2.00% PIK due
June 10, 2019(3)(4)(5)(6)(15)

 

$

 5,765,441

 

$

 5,745,684

 

$

 4,473,002

 

 

 

Total Education

 

 

 

 

$

 5,745,684

 

$

 4,473,002

 

1.2

%

 (continued on next page)

See Accompanying Notes.

F-5

TICC CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS — (continued)

December 31, 2017

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR VALUE(2)

 

% of Net
Assets

Senior Secured Notes – (continued)

 

 

 

 

 

 

 

 

 

 

 

 

Financial Intermediaries

 

 

 

 

 

 

 

 

 

 

 

 

First American Payment Systems

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 11.89% (LIBOR + 10.50%),
(1.00% floor) due July 5, 2024(4)(5)(16)

 

$

 1,500,000

 

$

 1,458,866

 

$

 1,492,515

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Lighthouse Network, LLC

 

 

 

 

 

 

 

 

 

 

 

 

senior secured notes, 6.07% (LIBOR + 4.50%), (1.00% floor)
due November 30, 2024(4)(5)(16)

 

 

3,500,000

 

 

3,482,683

 

 

3,506,580

 

 

 

second lien senior secured notes, 10.07% (LIBOR + 8.50%), (1.00% floor) due November 30, 2025(4)(5)(16)

 

 

12,000,000

 

 

11,880,523

 

 

11,940,000

 

 

 

Total Financial Intermediaries

 

 

 

 

$

 16,822,072

 

$

 16,939,095

 

4.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Healthcare

 

 

 

 

 

 

 

 

 

 

 

 

Keystone Acquisition Corp.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 6.94% (LIBOR + 5.25%), (1.00% floor) due May 1, 2024(4)(5)(6)(15)

 

$

 2,992,500

 

$

 2,935,933

 

$

 3,003,722

 

 

 

second lien senior secured notes, 10.94% (LIBOR + 9.25%), (1.00% floor) due May 1, 2025(4)(5)(6)(15)

 

 

10,000,000

 

 

9,805,957

 

 

9,950,000

 

 

 

Total Healthcare

 

 

 

 

$

 12,741,890

 

$

 12,953,722

 

3.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

IT Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Unitek Global Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured tranche B term loan, 10.20% (LIBOR + 8.50%), (1.00% floor) due
January 13, 2019(4)(5)(15)

 

$

 2,638,748

 

$

 2,627,442

 

$

 2,665,135

 

 

 

Total IT Consulting

 

 

 

 

$

 2,627,442

 

$

 2,665,135

 

0.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Logistics

 

 

 

 

 

 

 

 

 

 

 

 

Capstone Logistics Acquisition, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 6.07% (LIBOR + 4.50%), (1.00% floor) due October 7, 2021(4)(5)(6)(16)

 

$

 10,573,496

 

$

 10,555,951

 

$

 10,406,118

 

 

 

Total Logistics

 

 

 

 

$

 10,555,951

 

$

 10,406,118

 

2.7

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Printing and Publishing

 

 

 

 

 

 

 

 

 

 

 

 

Merrill Communications, LLC

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 6.63% (LIBOR + 5.25%), (1.00% floor ) due June 01, 2022(4)(5)(6)(15)

 

$

 11,374,901

 

$

 11,300,971

 

$

 11,431,776

 

 

 

Total Printing and Publishing

 

 

 

 

$

 11,300,971

 

$

 11,431,776

 

2.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Software

 

 

 

 

 

 

 

 

 

 

 

 

ECI Software Solutions, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 9.69% (LIBOR + 8.00%), (1.00% floor) due September 29, 2025(4)(5)(15)

 

$

 15,000,000

 

$

 14,898,256

 

$

 14,925,000

 

 

 

Help/Systems Holdings, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 11.19% (LIBOR + 9.50%), (1.00% floor) due October 8, 2022(4)(5)(15)

 

 

10,000,000

 

 

9,719,036

 

 

9,841,700

 

 

 

Total Software

 

 

 

 

$

 24,617,292

 

$

 24,766,700

 

6.4

%

 (continued on next page)

See Accompanying Notes.

F-6

TICC CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS — (continued)

December 31, 2017

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR VALUE(2)

 

% of Net
Assets

Senior Secured Notes – (continued)

 

 

 

 

 

 

 

 

 

 

 

 

Telecommunications Services

 

 

 

 

 

 

 

 

 

 

 

 

Aricent Technologies, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 9.97% (LIBOR + 8.50%), (1.00% floor) due April 14, 2022(4)(5)(16)

 

$

 14,000,000

 

$

 14,007,813

 

$

 14,077,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Birch Communications, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

first lien senior secured notes, 8.60% (LIBOR + 7.25%), (1.00% floor) due July 17, 2020(4)(5)(6)(14)(15)

 

 

21,171,285

 

 

20,571,906

 

 

20,112,721

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Global Tel Link Corp

 

 

 

 

 

 

 

 

 

 

 

 

second lien senior secured notes, 9.94% (LIBOR + 8.25%), (1.25% floor) due November 23, 2020(4)(5)(15)

 

 

17,000,000

 

 

16,906,033

 

 

16,978,750

 

 

 

Total Telecommunication Services

 

 

 

 

$

 51,485,752

 

$

 51,168,471

 

13.2

%

Total Senior Secured Notes

 

 

 

 

$

 243,277,580

 

$

 242,164,468

 

62.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Subordinated Debt

 

 

 

 

 

 

 

 

 

 

 

 

IT Consulting

 

 

 

 

 

 

 

 

 

 

 

 

Unitek Global Services, Inc.

 

 

 

 

 

 

 

 

 

 

 

 

Holdco PIK Debt Cash 0.00%, 15.00% PIK, due July 13, 2019(3)(5)

 

$

 778,766

 

$

 776,917

 

$

 786,554

 

 

 

Total IT Consulting

 

 

 

 

$

 776,917

 

$

 786,554

 

0.2

%

Total Subordinated Debt

 

 

 

 

$

 776,917

 

$

 786,554

 

0.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Loan Obligation – Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

Structured Finance

 

 

 

 

 

 

 

 

 

 

 

 

Catamaran CLO 2012-1 Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

CLO secured class F notes, 7.88% (LIBOR + 6.25%), due December 20, 2023(4)(5)(11)(12)(15)

 

$

 1,250,000

 

$

 1,185,390

 

$

 1,250,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jamestown CLO V Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

CLO secured class F notes, 7.20% (LIBOR + 5.85%), due January 17, 2027(4)(5)(11)(12)(15)

 

 

4,000,000

 

 

3,308,060

 

 

3,470,000

 

 

 

Total Structured Finance

 

 

 

 

$

 4,493,450

 

$

 4,720,000

 

1.2

%

Total Collateralized Loan Obligation – Debt Investments

 

 

 

 

$

 4,493,450

 

$

 4,720,000

 

1.2

%

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized Loan Obligation – Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

Structured Finance

 

 

 

 

 

 

 

 

 

 

 

 

AMMC CLO XI, Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 5.02% due October 30, 2023(9)(11)(12)(17)

 

$

 6,000,000

 

$

 3,677,571

 

$

 3,180,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AMMC CLO XII, Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 15.85% due November 10, 2030(9)(11)(12)(17)

 

 

12,921,429

 

 

6,771,090

 

 

6,848,357

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ares XXV CLO Ltd.

 

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 0.00% due January 17, 2024(9)(10)(11)(12)(17)

 

 

15,500,000

 

 

317,125

 

 

 

 

 

 (continued on next page)

See Accompanying Notes.

F-7

TICC CAPITAL CORP.

CONSOLIDATED SCHEDULE OF INVESTMENTS — (continued)

December 31, 2017

COMPANY/INVESTMENT(1)(20)

 

PRINCIPAL
AMOUNT

 

COST

 

FAIR VALUE(2)

 

% of Net
Assets

Collateralized Loan Obligation – Equity Investments – (continued)

 

 

 

 

 

 

 

 

 

 

 

Structured Finance – (continued)

 

 

 

 

 

 

 

 

 

 

 

Ares XXVI CLO Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 0.60% due April 15, 2025(9)(10)(11)(12)(17)

 

$

17,630,000

 

$

3,939,835

 

$

1,969,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Carlyle Global Market Strategies CLO 2013-2, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 21.86% due January 18, 2029(9)(11)(12)(17)

 

 

9,250,000

 

 

5,714,900

 

 

6,485,378

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Catamaran CLO 2012-1 Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield -3.04% due December 20, 2023(9)(11)(12)(17)

 

 

23,000,000

 

 

9,100,628

 

 

4,140,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cedar Funding II CLO, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 14.01% due March 09, 2025(9)(11)(12)(17)

 

 

18,000,000

 

 

13,720,760

 

 

13,320,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cedar Funding VI CLO, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 13.91% due October 20, 2028(9)(11)(12)(17)

 

 

7,700,000

 

 

6,979,156

 

 

6,776,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CIFC Funding 2012-1, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 0.00% due August 14, 2024(9)(10)(11)(12)(17)

 

 

12,750,000

 

 

213,307

 

 

223,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CIFC Funding 2014-3, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 11.67% due July 22, 2026(9)(11)(12)(17)

 

 

10,000,000

 

 

6,865,057

 

 

6,200,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Galaxy XVII CLO, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 35.05% due July 15, 2026(9)(11)(12)(17)

 

 

2,000,000

 

 

887,235

 

 

815,304

 

 

 

 

 

 

 

 

 

 

 

 

 

 

GoldenTree Loan Opportunities VII, Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield 12.95% due April 25, 2025(9)(11)(12)(17)

 

 

4,670,000

 

 

2,567,366

 

 

2,521,800

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Hull Street CLO Ltd.

 

 

 

 

 

 

 

 

 

 

 

CLO subordinated notes, estimated yield -4.73% due October 18, 2026(9)(11)(12)(17)

 

 

5,000,000

 

 

2,710,747

 

 

1,500,000