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Section 1: 10-Q (10-Q)

Document
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
ý
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2018
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 Commission File Number: 814-00659 
PROSPECT CAPITAL CORPORATION
(Exact name of Registrant as specified in its charter)
Maryland
43-2048643
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
10 East 40th Street, 42nd Floor
 
New York, New York
10016
(Address of principal executive offices)
(Zip Code)
Registrant's telephone number, including area code: (212) 448-0702

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 ý    No o
Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate Website, 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 o    No o
Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.
Large accelerated filer ý
Accelerated filer o
Non-accelerated filer o
Smaller reporting company o
 (Do not check if a smaller reporting company)
Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes o    No ý
Indicate the number of shares outstanding of each of the issuer's classes of common stock as of the latest practicable date.
Class of Common Stock
 
Outstanding at November 6, 2018
$0.001 par value
 
365,480,989




Table of Contents
 
 
Page
 
PART I
FINANCIAL INFORMATION
 
 
 
 
 
 
 
 
PART II
OTHER INFORMATION
 
 
 




FORWARD-LOOKING STATEMENTS
This report contains information that may constitute “forward-looking statements.” Generally, the words “believe,” “expect,”
“intend,” “estimate,” “anticipate,” “project,” “will” and similar expressions identify forward-looking statements, which generally are not historical in nature. However, the absence of these words or similar expressions does not mean that a statement is not forward-looking. All statements that address operating performance, events or developments that we expect or anticipate will occur in the future—including statements relating to volume growth, share of sales and earnings per share growth, and statements expressing general views about future operating results—are forward-looking statements. Management believes that these forward-looking statements are reasonable as and when made. However, caution should be taken not to place undue reliance on any such forward-looking statements because such statements speak only as of the date when made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. In addition, forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from our historical experience and our present expectations or projections. These risks and uncertainties include, but are not limited to, those described in Part II, “Item 1A. Risk Factors” and elsewhere in this report and in our Annual Report on Form 10-K for the year ended June 30, 2018, and those described from time to time in our future reports filed with the Securities and Exchange Commission.

3


PART I
Item 1. Financial Statements
PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except share and per share data)
 
September 30, 2018
 
June 30, 2018
 
 
 
(Unaudited)
 
(Audited)
Assets
 
 
 

Investments at fair value:
 

 
 

Control investments (amortized cost of $2,331,620 and $2,300,526, respectively)
$
2,487,337

 
$
2,404,326

Affiliate investments (amortized cost of $175,235 and $55,637, respectively)
95,993

 
58,436

Non-control/non-affiliate investments (amortized cost of $3,532,959 and $3,475,295, respectively)
3,353,353

 
3,264,517

Total investments at fair value (amortized cost of $6,039,814 and $5,831,458, respectively)
5,936,683

 
5,727,279

Cash
120,052

 
83,758

Receivables for:
 
 
 
Interest, net
23,516

 
19,783

Other
1,359

 
1,867

Due from broker (Note 6)
102,834

 
3,029

Deferred financing costs on Revolving Credit Facility (Note 4)
8,202

 
2,032

Due from Affiliate (Note 13)
5,888

 
88

Prepaid expenses
948

 
984

Total Assets 
6,199,482

 
5,838,820

Liabilities 
 

 
 

Revolving Credit Facility (Notes 4 and 8)
404,000

 
37,000

Convertible Notes (less unamortized debt issuance costs of $12,009 and $13,074, respectively)
(Notes 5 and 8)
810,138

 
809,073

Prospect Capital InterNotes® (less unamortized debt issuance costs of $11,875 and $11,998,
respectively) (Notes 7 and 8)
757,012

 
748,926

Public Notes (less unamortized discount and debt issuance costs of $12,219 and $11,007,
respectively) (Notes 6 and 8)
687,706

 
716,810

Due to Prospect Capital Management (Note 13)
51,327

 
49,045

Interest payable
27,365

 
33,741

Dividends payable
21,914

 
21,865

Due to broker

 
6,159

Accrued expenses
4,535

 
5,426

Due to Prospect Administration (Note 13)
2,396

 
2,212

Other liabilities
2,145

 
1,516

Total Liabilities 
2,768,538

 
2,431,773

Commitments and Contingencies (Note 3)

 

Net Assets 
$
3,430,944

 
$
3,407,047

 
 
 
 
Components of Net Assets 
 

 
 

Common stock, par value $0.001 per share (1,000,000,000 common shares authorized; 365,225,139 and 364,409,938 issued and outstanding, respectively) (Note 9)
$
365

 
$
364

Paid-in capital in excess of par (Note 9)
4,027,305

 
4,021,541

Accumulated overdistributed net investment income
(25,689
)
 
(45,186
)
Accumulated net realized loss
(467,906
)
 
(465,493
)
Net unrealized loss
(103,131
)
 
(104,179
)
Net Assets 
$
3,430,944

 
$
3,407,047

 
 
 
 
Net Asset Value Per Share (Note 16) 
$
9.39

 
$
9.35


See notes to consolidated financial statements.
4


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(in thousands, except share and per share data)
(Unaudited)

 
Three Months Ended September 30,
 
2018
 
2017
Investment Income
 
 
 
Interest income:
 
 
 
Control investments
$
56,454

 
$
46,030

Affiliate investments
227

 
205

Non-control/non-affiliate investments
68,609

 
72,430

Structured credit securities
34,152

 
29,420

Total interest income
159,442

 
148,085

Dividend income:
 
 
 
Control investments
14,665

 

Non-control/non-affiliate investments
262

 
544

Total dividend income
14,927

 
544

Other income:
 
 
 
Control investments
2,791

 
2,091

Non-control/non-affiliate investments
3,262

 
7,859

Total other income (Note 10)
6,053

 
9,950

Total Investment Income
180,422

 
158,579

Operating Expenses
 
 
 
Base management fee (Note 13)
29,957

 
30,163

Income incentive fee (Note 13)
21,290

 
15,933

Interest and credit facility expenses
37,908

 
41,035

Allocation of overhead from Prospect Administration (Note 13)
3,365

 
3,528

Audit, compliance and tax related fees
393

 
1,088

Directors’ fees
79

 
113

Other general and administrative expenses
2,271

 
2,987

Total Operating Expenses
95,263

 
94,847

Net Investment Income
85,159

 
63,732

Net Realized and Net Change in Unrealized Gains (Losses) from Investments
 
 
 
Net realized gains
 
 
 
Control investments
1

 
9

Affiliate investments

 
846

Non-control/non-affiliate investments
1,040

 
582

Net realized gains
1,041

 
1,437

Net change in unrealized gains (losses)
 
 
 
Control investments
51,918

 
1,093

Affiliate investments
(13,755
)
 
5,193

Non-control/non-affiliate investments
(37,114
)
 
(59,037
)
Net change in unrealized gains (losses)
1,049

 
(52,751
)
Net Realized and Net Change in Unrealized Gains (Losses) from Investments
2,090

 
(51,314
)
Net realized losses on extinguishment of debt
(3,454
)
 
(445
)
Net Increase in Net Assets Resulting from Operations
$
83,795

 
$
11,973

Net increase in net assets resulting from operations per share
$
0.23

 
$
0.03

Dividends declared per share
$
(0.18
)
 
$
(0.23
)

See notes to consolidated financial statements.
5


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(in thousands, except share data)
(Unaudited)

 
Three Months Ended September 30,
 

2018
 
2017
Operations
 

 
 

Net investment income
$
85,159

 
$
63,732

Net realized (losses) gains
(2,413
)
 
992

Net change in net unrealized gains (losses)
1,049

 
(52,751
)
Net Increase in Net Assets Resulting from Operations 
83,795

 
11,973

 
 
 
 
Distributions to Shareholders
 
 
 
Distribution from net investment income
(65,693
)
 
(81,647
)
Net Decrease in Net Assets Resulting from Distributions to Shareholders
(65,693
)
 
(81,647
)
 
 
 
 
Common Stock Transactions 
 
 
 
Value of shares issued through reinvestment of dividends
5,795

 
1,713

Net Increase in Net Assets Resulting from Common Stock Transactions
5,795

 
1,713

 
 
 
 
Total Increase (Decrease) in Net Assets
23,897

 
(67,961
)
Net assets at beginning of period
3,407,047

 
3,354,952

Net Assets at End of Period (Accumulated Overdistributed Net Investment Income of $25,689 and $72,726, respectively)
$
3,430,944

 
$
3,286,991

 
 
 
 
Common Stock Activity
 
 
 
Shares issued through reinvestment of dividends
815,201

 
233,489

  Shares issued and outstanding at beginning of period
364,409,938

 
360,076,933

Shares Issued and Outstanding at End of Period
365,225,139

 
360,310,422

 


See notes to consolidated financial statements.
6


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, except share data)
(Unaudited)

 
Three Months Ended September 30,
 
2018
 
2017
Operating Activities
 
 
 
Net increase in net assets resulting from operations
$
83,795

 
$
11,973

Net realized losses on extinguishment of debt
3,454

 
445

Net realized gains on investments
(1,041
)
 
(1,437
)
Net change in net unrealized (gains) losses on investments
(1,049
)
 
52,751

Amortization of discounts and (accretion of premiums), net
(7,839
)
 
11,133

Accretion of discount on Public Notes (Note 6)
131

 
69

Amortization of deferred financing costs
2,716

 
3,166

Payment-in-kind interest
(9,325
)
 
(1,980
)
Structuring fees
(2,854
)
 
(2,285
)
Change in operating assets and liabilities:
 
 
 
Payments for purchases of investments
(242,463
)
 
(217,886
)
Proceeds from sale of investments and collection of investment principal
55,166

 
310,894

Decrease in due to broker
(6,159
)
 
(47,416
)
Increase (Decrease) in due to Prospect Capital Management
2,282

 
(1,936
)
Increase in interest receivable, net
(3,733
)
 
(11,714
)
Decrease in interest payable
(6,376
)
 
(5,306
)
Decrease in accrued expenses
(891
)
 
(1,093
)
Increase in due from broker
(99,805
)
 

Increase in other liabilities
629

 
614

Decrease (Increase) in other receivables
508

 
(174
)
Increase in due from Prospect Administration

 
(12
)
Increase in due from affiliate
(5,800
)
 
(4
)
Decrease in prepaid expenses
36

 
144

Increase in due to Prospect Administration
184

 

Net Cash (Used in) Provided by Operating Activities
(238,434
)
 
99,946

Financing Activities
 
 
 
Borrowings under Revolving Credit Facility (Note 4)
436,000

 

Principal payments under Revolving Credit Facility (Note 4)
(69,000
)
 

Issuances of Public Notes, net of original issue discount (Note 6)
125,644

 

Redemptions of Public Notes (Note 6)
(153,536
)
 

Issuances of Prospect Capital InterNotes® (Note 7)
39,757

 
27,402

Redemptions of Prospect Capital InterNotes®, net (Note 7)
(31,794
)
 
(91,864
)
Financing costs paid and deferred
(12,494
)
 
(729
)
Dividends paid
(59,849
)
 
(88,321
)
Net Cash Provided by (Used in) Financing Activities
274,728

 
(153,512
)
 
 
 
 
Net Increase (Decrease) in Cash
36,294

 
(53,566
)
Cash at beginning of period
83,758

 
318,083

Cash at End of Period
$
120,052

 
$
264,517

Supplemental Disclosures
 
 
 
Cash paid for interest
$
41,437

 
$
43,106

Non-Cash Financing Activities
 
 
 
Value of shares issued through reinvestment of dividends
$
5,795

 
$
1,713

Cost basis of investments written off as worthless
$

 
$
310


See notes to consolidated financial statements.
7


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS
(in thousands, except share data)





 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets



 







LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 



 







Control Investments (greater than 25.00% voting control)(47)
 
 
 
 
 



 







CCPI Inc.(19)
Electronic Equipment, Instruments & Components
Senior Secured Term Loan A (10.00%, due 12/31/2020)(3)
12/13/2012
$
2,825

$
2,825

$
2,825

0.1%
Senior Secured Term Loan B (12.00% plus 7.00% PIK, due 12/31/2020)(3)(46)
12/13/2012
17,651

17,651

17,651

0.5%
Common Stock (14,857 shares)(16)
12/13/2012


6,759

14,213

0.4%



 


27,235

34,689

1.0%
CP Energy Services Inc.(20)
Energy Equipment & Services
Senior Secured Term Loan (13.34% (LIBOR + 11.00% with 1.00% LIBOR floor), due 12/29/2022)(11)
12/29/2017
35,048

35,048

35,048

1.0%
Series B Convertible Preferred Stock (16.00%, 790 shares)(16)
10/30/2015


63,225

63,225

1.9%
Common Stock (102,924 shares)(16)
8/2/2013


81,203

44,367

1.3%



 


179,476

142,640

4.2%
Credit Central Loan Company, LLC(21)
Consumer Finance
Subordinated Term Loan (10.00% plus 10.00% PIK, due 6/26/2024)(14)(46)
6/24/2014
51,855

48,345

51,855

1.5%
Class A Units (10,640,642 units)(14)(16)
6/24/2014


13,731

17,477

0.5%
Net Revenues Interest (25% of Net Revenues)(14)(16)
1/28/2015



1,256

0.1%



 


62,076

70,588

2.1%
Echelon Transportation, LLC (f/k/a Echelon Aviation, LLC)
Aerospace & Defense
Senior Secured Term Loan (11.83% (LIBOR + 9.75% with 2.00% LIBOR floor) plus 2.25% PIK, due 3/31/2022)(13)(46)
3/31/2014
32,211

32,211

32,211

0.9%
Senior Secured Term Loan (11.08% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.00% PIK, due 12/7/2024)(13)(46)
12/9/2016
17,012

17,012

17,012

0.5%
Membership Interest (100%)(16)
3/31/2014


22,738

38,152

1.1%



 


71,961

87,375

2.5%
First Tower Finance Company LLC(23)
Consumer Finance
Subordinated Term Loan to First Tower, LLC (10.00% plus 10.00% PIK, due 6/24/2019)(14)(46)
6/24/2014
272,170

272,170

272,170

7.9%
Class A Units (95,709,910 units)(14)(16)
6/24/2014


81,146

173,571

5.1%



 


353,316

445,741

13.0%
Freedom Marine Solutions, LLC(24)
Energy Equipment & Services
Membership Interest (100%)(16)
10/1/2009


43,592

14,600

0.4%



 


43,592

14,600

0.4%
InterDent, Inc. (52)
Health Care Providers & Services
Senior Secured Term Loan A (7.74% (LIBOR + 5.50% with 0.75% LIBOR floor), due 9/5/2020)(13)
8/3/2012
77,994

77,994

77,994

2.3%
Senior Secured Term Loan B (16.00% PIK, due 9/5/2020)(13)(46)
8/3/2012
103,090

103,090

103,090

3.0%
Senior Secured Term Loan A/B (2.49% (LIBOR + 0.25% with 0.75% LIBOR floor), due 9/5/2020)(13)
8/1/2018
14,000

14,000

14,000

0.4%
Senior Secured Term Loan C (18.00% PIK, due 9/5/2020)(46)
3/22/2018
35,766

35,766

25,215

0.7%
Senior Secured Term Loan D (1.00% PIK, due 9/5/2020)(46)
9/19/2018
5,001

5,001


—%
Warrants (to purchase 99,900 shares of Common Stock, expires 9/19/2030)(16)
2/23/2018




—%



 


235,851

220,299

6.4%

See notes to consolidated financial statements.
8


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)




 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets



 







LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 



 







Control Investments (greater than 25.00% voting control)(47)
 
 
 
 
 



 







MITY, Inc.(25)
Commercial Services & Supplies
Senior Secured Note A (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor), due 1/30/2020)(3)(11)
9/19/2013
$
26,250

$
26,250

$
26,250

0.8%
Senior Secured Note B (10.00% (LIBOR + 7.00% with 3.00% LIBOR floor) plus 10.00% PIK, due 1/30/2020)(3)(11)(46)
6/23/2014
24,652

24,652

24,652

0.7%
Subordinated Unsecured Note to Broda Enterprises ULC (10.00%, due on demand)(14)
9/19/2013
5,702

7,200

5,702

0.2%
Common Stock (42,053 shares)(16)
9/19/2013


6,849

1,121

—%



 


64,951

57,725

1.7%
National Property REIT Corp.(26)
Equity Real Estate Investment Trusts (REITs) / Online Lending
Senior Secured Term Loan A (6.39% (LIBOR + 4.00% with 2.00% LIBOR floor) plus 10.50% PIK, due 4/1/2019)(11)(46)
4/1/2014
293,203

293,203

293,203

8.5%
Senior Secured Term Loan E (11.39% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 1.50% PIK, due 4/1/2019)(11)(46)
4/1/2014
217,960

217,960

217,960

6.4%
Common Stock (3,102,279 shares)
12/31/2013


317,809

453,313

13.2%
Net Operating Income Interest (5% of Net Operating Income)
12/31/2013



107,487

3.1%



 


828,972

1,071,963

31.2%
Nationwide Loan Company LLC(27)
Consumer Finance
Senior Subordinated Term Loan to Nationwide Acceptance LLC (10.00% plus 10.00% PIK, due 6/18/2019)(14)(46)
6/18/2014
17,410

17,410

17,410

0.5%
Class A Units (32,456,159 units)(14)
1/31/2013


21,962

15,307

0.4%



 


39,372

32,717

0.9%
NMMB, Inc.(28)
Media
Senior Secured Note (14.00%, due 5/6/2021)(3)
5/6/2011
3,714

3,714

3,714

0.1%
Senior Secured Note to Armed Forces Communications, Inc. (14.00%, due 5/6/2021)(3)
6/12/2014
3,900

3,900

3,900

0.1%
Series A Preferred Stock (7,200 shares)(16)
12/12/2013


7,200

6,971

0.2%
Series B Preferred Stock (5,669 shares)(16)
12/12/2013


5,669

5,489

0.2%



 


20,483

20,074

0.6%
Pacific World Corporation(40)
Personal Products
Revolving Line of Credit – $26,000 Commitment (9.46% (LIBOR + 7.25% with 1.00% LIBOR floor), due 9/26/2020)(13)(15)
9/26/2014
20,825

20,825

20,825

0.6%
Senior Secured Term Loan A (7.46% (LIBOR + 5.25% with 1.00% LIBOR floor), due 9/26/2020)(13)
12/31/2014
96,000

96,000

96,000

2.8%
Senior Secured Term Loan B (11.46% PIK (LIBOR + 9.25% with 1.00% LIBOR floor), in non-accrual status effective 5/21/2018, due 9/26/2020)(13)
12/31/2014
99,166

96,500

47,333

1.4%
Convertible Preferred Equity (100,000 shares)(16)
6/15/2018


15,000


—%
Common Stock (6,778,414 shares)(16)
9/29/2017




—%



 


228,325

164,158

4.8%
R-V Industries, Inc.
Machinery
Senior Subordinated Note (11.39% (LIBOR + 9.00% with 1.00% LIBOR floor), due 3/31/2022)(3)(11)
6/12/2013
28,622

28,622

24,782

0.7%
Common Stock (745,107 shares)(16)
6/26/2007


6,866


—%



 


35,488

24,782

0.7%
SB Forging Company II, Inc. (f/k/a Gulf Coast Machine & Supply Company)(29)
Energy Equipment & Services
Series A Convertible Preferred Stock (99,900 shares)(16)
11/8/2013



2,201

0.1%
Common Stock (100 shares)(16)
11/8/2013




—%



 



2,201

0.1%

See notes to consolidated financial statements.
9


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)




 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets



 







LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 



 







Control Investments (greater than 25.00% voting control)(47)
 
 
 
 
 



 







USES Corp.(30)
Commercial Services & Supplies
Senior Secured Term Loan A (9.00% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020)
3/31/2014
$
37,821

$
31,601

$
15,807

0.5%
Senior Secured Term Loan B (15.50% PIK, in non-accrual status effective 4/1/2016, due 7/22/2020)
3/31/2014
49,787

35,568


—%
Common Stock (268,962 shares)(16)
6/15/2016




—%



 


67,169

15,807

0.5%
Valley Electric Company, Inc.(31)
Construction & Engineering
Senior Secured Note to Valley Electric Co. of Mt. Vernon, Inc. (8.00% (LIBOR + 5.00% with 3.00% LIBOR floor) plus 2.50% PIK, due 12/31/2024)(3)(11)(46)
12/31/2012
10,430

10,430

10,430

0.3%
Senior Secured Note (8.00% plus 10.00% PIK, due 6/23/2024)(46)
6/24/2014
32,881

32,881

32,881

1.0%
Consolidated Revenue Interest (2.0%)(38)
6/22/2018



3,328

0.1%
Common Stock (50,000 shares)
12/31/2012


26,204

35,304

1.0%



 


69,515

81,943

2.4%
Wolf Energy, LLC(32)
Energy Equipment & Services
Membership Interest (100%)(16)
7/1/2014




—%
Membership Interest in Wolf Energy Services Company, LLC (100%)(16)
3/14/2017


3,838

22

—%
Net Profits Interest (8% of Equity Distributions)(4)(16)
4/15/2013



13

—%



 


3,838

35

—%
Total Control Investments (Level 3)
 
$
2,331,620

$
2,487,337

72.5%


See notes to consolidated financial statements.
10


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Affiliate Investments (5.00% to 24.99% voting control)(48)
 
 
 
 
 
 
 
 
 
 
 
 
 
Edmentum Ultimate Holdings, LLC(22)
Diversified Consumer Services
Second Lien Revolving Credit Facility to Edmentum, Inc. – $8,032 Commitment (5.00% PIK, due 12/9/2021)(15)(46)
6/9/2015
$
177

$
177

$
177

—%
Unsecured Senior PIK Note (8.50% PIK, due 12/9/2021)(46)
6/9/2015
7,683

7,683

7,683

0.2%
Unsecured Junior PIK Note (10.00% PIK, in non-accrual status effective 1/1/2017, due 12/9/2021)
6/9/2015
36,127

23,829

17,793

0.5%
Class A Units (370,964 units)(16)
6/9/2015


6,577


—%
 
 
 
 
 
38,266

25,653

0.7%
Nixon, Inc.(39)
Textiles, Apparel & Luxury Goods
Common Stock (857 units)(16)
5/12/2017




—%
 
 
 
 
 


—%
Targus Cayman HoldCo Limited(33)
Textiles, Apparel & Luxury Goods
Common Stock (7,383,395 shares)(16)
5/24/2011


9,878

19,670

0.6%
 
 
 
 
 
9,878

19,670

0.6%
United Sporting Companies, Inc.(18)
Distributors
Second Lien Term Loan (13.24% (LIBOR + 11.00% with 1.75% LIBOR floor) plus 2.00% PIK, in non-accrual status effective 4/1/2017, due 11/16/2019)(13)
9/28/2012
154,814

127,091

50,670

1.5%
Common Stock (218,941 shares)(16)
5/2/2017




—%
 
 
 
 
 
127,091

50,670

1.5%
Total Affiliate Investments (Level 3)
 
$
175,235

$
95,993

2.8%

See notes to consolidated financial statements.
11


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
ACE Cash Express, Inc.
Consumer Finance
Senior Secured Note (12.00%, due 12/15/2022)(8)(14)
12/15/2017
$
20,000

$
19,748

$
21,371

0.6%



 

19,748

21,371

0.6%
AgaMatrix, Inc.
Health Care Equipment & Supplies
Senior Secured Term Loan (11.39% (LIBOR + 9.00% with 1.25% LIBOR floor), due 9/29/2022)(3)(11)
9/29/2017
35,380

35,380

35,380

1.0%



 

35,380

35,380

1.0%
American Gilsonite Company(34)
Chemicals
Membership Interest (0.05%, 131 shares)(16)
3/14/2008




—%



 



—%
Apidos CLO IX
Structured Finance
Subordinated Notes (Residual Interest, current yield 0.00%, due 7/15/2023)(5)(14)(17)
7/11/2012
23,525

21

76

—%



 

21

76

—%
Apidos CLO XI
Structured Finance
Subordinated Notes (Residual Interest, current yield 7.90%, due 10/17/2028)(5)(14)
1/17/2013
40,500

32,510

25,231

0.7%



 

32,510

25,231

0.7%
Apidos CLO XII
Structured Finance
Subordinated Notes (Residual Interest, current yield 13.71%, due 4/15/2031)(5)(14)
4/18/2013
52,203

34,302

26,718

0.8%



 

34,302

26,718

0.8%
Apidos CLO XV
Structured Finance
Subordinated Notes (Residual Interest, current yield 12.85%, due 4/20/2031)(5)(14)
10/16/2013
48,515

35,499

27,161

0.8%



 

35,499

27,161

0.8%
Apidos CLO XXII
Structured Finance
Subordinated Notes (Residual Interest, current yield 11.34%, due 10/20/2027)(5)(6)(14)
10/14/2015
31,350

27,848

25,122

0.7%



 

27,848

25,122

0.7%
Ark-La-Tex Wireline Services, LLC
Energy Equipment & Services
Senior Secured Term Loan B (13.76% (LIBOR + 11.50% with 1.00% LIBOR floor), in non-accrual status effective 4/1/2016, due 4/8/2019)(13)
4/8/2014
25,595

1,145

787

—%



 

1,145

787

—%
Atlantis Health Care Group (Puerto Rico), Inc.
Health Care Providers & Services
Revolving Line of Credit – $7,000 Commitment (10.84% (LIBOR + 8.50% with 1.50% LIBOR floor), due 8/21/2019)(11)
2/21/2013
7,000

7,000

6,869

0.2%
Senior Term Loan (10.84% (LIBOR + 8.50% with 1.50% LIBOR floor), due 2/21/2020)(3)(11)
2/21/2013
77,509

77,509

76,063

2.2%



 

84,509

82,932

2.4%
ATS Consolidated, Inc.
Electronic Equipment, Instruments & Components
Second Lien Term Loan (9.99% (LIBOR + 7.75%), due 2/27/2026)(8)(13)
3/19/2018
15,000

14,860

15,300

0.5%



 

14,860

15,300

0.5%
Autodata, Inc./ Autodata Solutions, Inc.(9)
Software
Second Lien Term Loan (9.49% (LIBOR + 7.25%), due 12/12/2025)(3)(8)(13)
12/14/2017
6,000

5,973

5,973

0.2%



 

5,973

5,973

0.2%
Barings CLO 2018-III (f/k/a Babson CLO Ltd. 2014-III)
Structured Finance
Subordinated Notes (Residual Interest, current yield 11.98%, due 7/20/2029)(5)(6)(14)
6/14/2018
83,098

51,204

44,371

1.3%



 

51,204

44,371

1.3%
Broder Bros., Co.
Textiles, Apparel & Luxury Goods
Senior Secured Note (10.39% (LIBOR + 8.00% with 1.25% LIBOR floor), due 12/02/2022)(3)(11)
12/4/2017
272,618

272,618

272,618

7.9%



 

272,618

272,618

7.9%

See notes to consolidated financial statements.
12


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
Brookside Mill CLO Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 8.07%, due 1/18/2028)(5)(14)
5/23/2013
$
36,300

$
18,865

$
13,535

0.4%



 


18,865

13,535

0.4%
California Street CLO IX Ltd. (f/k/a Symphony CLO IX Ltd.)
Structured Finance
Preference Shares (Residual Interest, current yield 10.74%, due 10/16/2028)(5)(14)
5/8/2012
58,915

41,855

35,997

1.1%



 


41,855

35,997

1.1%
Candle-Lite Company, LLC
Household Products
Senior Secured Term Loan A (7.81% (LIBOR + 5.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11)
1/23/2018
12,375

12,375

12,375

0.3%
Senior Secured Term Loan B (11.81% (LIBOR + 9.50% with 1.25% LIBOR floor), due 1/23/2023)(3)(11)
1/23/2018
12,500

12,500

12,500

0.4%



 


24,875

24,875

0.7%
Capstone Logistics Acquisition, Inc.
Commercial Services & Supplies
Second Lien Term Loan (10.49% (LIBOR + 8.25% with 1.00% LIBOR floor), due 10/7/2022)(3)(8)(13)
10/7/2014
101,030

100,690

101,030

2.9%



 


100,690

101,030

2.9%
Carlyle Global Market Strategies CLO 2014-4-R, Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 21.10%, due 7/15/2030)(5)(6)(14)
6/29/2018
25,534

18,797

19,440

0.6%



 


18,797

19,440

0.6%
Carlyle Global Market Strategies CLO 2016-3, Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 17.37%, due 10/20/2029)(5)(6)(14)
9/13/2016
32,200

32,705

28,604

0.8%



 


32,705

28,604

0.8%
Carlyle C17 CLO Limited (f/k/a Cent CLO 17 Limited)
Structured Finance
Subordinated Notes (Residual Interest, current yield 18.32%, due 4/30/2031)(5)(14)
5/10/2018
24,870

15,850

15,386

0.5%



 


15,850

15,386

0.5%
Cent CLO 20 Limited
Structured Finance
Subordinated Notes (Residual Interest, current yield 14.96%, due 1/25/2026)(5)(14)
1/15/2014
40,275

30,792

28,127

0.8%



 


30,792

28,127

0.8%
Cent CLO 21 Limited
Structured Finance
Subordinated Notes (Residual Interest, current yield 14.61%, due 7/27/2030)(5)(6)(14)
6/18/2014
49,552

38,539

31,536

0.9%



 


38,539

31,536

0.9%
Cent CLO 21 Limited
Structured Finance
Class E Notes (10.99% (LIBOR + 8.65%), due 7/27/2030)(6)(11)(14)(37)
7/27/2018
10,591

9,971

10,866

0.3%



 


9,971

10,866

0.3%
Centerfield Media Holding Company(35)
IT Services
Senior Secured Term Loan A (9.34% (LIBOR + 7.00% with 2.00% LIBOR floor), due 1/17/2022)(3)(11)
1/17/2017
75,732

75,732

75,732

2.2%
Senior Secured Term Loan B (14.84% (LIBOR + 12.50% with 2.00% LIBOR floor), due 1/17/2022)(11)
1/17/2017
78,100

78,100

78,100

2.3%



 


153,832

153,832

4.5%
CIFC Funding 2013-III-R, Ltd. (f/k/a CIFC Funding 2013-III, Ltd.)
Structured Finance
Subordinated Notes (Residual Interest, current yield 14.53%, due 4/24/2031)(5)(14)
4/5/2018
44,100

28,368

25,184

0.7%



 


28,368

25,184

0.7%
CIFC Funding 2013-IV, Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 16.81%, due 4/28/2031)(5)(14)
11/14/2013
45,500

32,857

27,855

0.8%



 


32,857

27,855

0.8%

See notes to consolidated financial statements.
13


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
CIFC Funding 2014-IV Investor, Ltd.
Structured Finance
Income Notes (Residual Interest, current yield 8.31%, due 10/19/2026)(5)(6)(14)
9/3/2014
$
41,500

$
28,175

$
22,084

0.6%



 


28,175

22,084

0.6%
CIFC Funding 2014-V, Ltd.
Structured Finance
Class F Notes (10.88% (LIBOR + 8.50%), due 10/17/2031)(6)(11)(14)(37)
9/27/2018
10,250

9,943

9,942

0.3%



 


9,943

9,942

0.3%
CIFC Funding 2016-I, Ltd.
Structured Finance
Income Notes (Residual Interest, current yield 13.13%, due 10/21/2028)(5)(6)(14)
12/21/2016
34,000

31,247

28,351

0.8%



 


31,247

28,351

0.8%
Cinedigm DC Holdings, LLC
Entertainment
Senior Secured Term Loan (11.31% (LIBOR + 9.00% with 2.00% LIBOR floor) plus 2.50% PIK, due 3/31/2021)(11)(46)
2/28/2013
29,965

29,915

29,965

0.9%



 


29,915

29,965

0.9%
Class Appraisal, LLC
Real Estate Management & Development
Revolving Line of Credit – $1,500 Commitment (10.64% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/12/2020)(11)(15)
3/12/2018



—%
Senior Secured Term Loan (10.64% (LIBOR + 8.25% with 1.50% LIBOR floor), due 3/10/2023)(3)(11)
3/12/2018
41,580

41,580

41,580

1.2%



 


41,580

41,580

1.2%
Coverall North America, Inc.
Commercial Services & Supplies
Senior Secured Term Loan A (8.34% (LIBOR + 6.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11)
11/2/2015
16,225

16,225

16,225

0.5%
Senior Secured Term Loan B (13.34% (LIBOR + 11.00% with 1.00% LIBOR floor), due 11/02/2020)(3)(11)
11/2/2015
24,375

24,375

24,375

0.7%



 


40,600

40,600

1.2%
CP VI Bella Midco
IT Services
Second Lien Term Loan (8.99% (LIBOR + 6.75%, due 12/29/2025)(8)(13)
12/28/2017
5,500

5,486

5,486

0.2%



 


5,486

5,486

0.2%
Digital Room, LLC
Commercial Services & Supplies
First Lien Term Loan (7.25% (LIBOR + 5.00% with 1.00% LIBOR floor), due 12/29/2023)(3)(8)(13)
2/9/2018
9,925

9,836

9,925

0.3%
Second Lien Term Loan (11.00% (LIBOR + 8.75% with 1.00% LIBOR floor), due 12/29/2024)(3)(8)(13)
2/8/2018
57,100

56,326

57,100

1.7%





66,162

67,025

2.0%
Dunn Paper, Inc.
Paper & Forest Products
Second Lien Term Loan (10.99% (LIBOR + 8.75% with 1.00% LIBOR floor), due 8/26/2023)(3)(8)(13)
10/7/2016
11,500

11,337

11,337

0.3%





11,337

11,337

0.3%
Dynatrace, LLC
Software
Second Lien Term Loan (9.22% (LIBOR + 7.00%), due 8/23/2026)(8)(13)
8/23/2018
3,000

2,993

2,993

0.1%





2,993

2,993

0.1%
Easy Gardener Products, Inc.
Household Durables
Senior Secured Term Loan (12.34% (LIBOR + 10.00% with 0.25% LIBOR floor), due 09/30/2020)(3)(11)
10/2/2015
16,894

16,894

15,399

0.5%





16,894

15,399

0.5%
Engine Group, Inc.(7)
Media
Senior Secured Term Loan (7.39% (LIBOR + 5.00% with 1.00% LIBOR floor), due 9/15/2022)(8)(11)
9/25/2017
4,710

4,710

4,690

0.1%
Second Lien Term Loan (11.39% (LIBOR + 9.00% with 1.00% LIBOR floor), due 9/15/2023)(3)(8)(11)
9/25/2017
35,000

35,000

34,320

1.0%





39,710

39,010

1.1%

See notes to consolidated financial statements.
14


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
EXC Holdings III Corp
Technology Hardware, Storage & Peripherals
Second Lien Term Loan (10.04% (LIBOR + 7.50% with 1.00% LIBOR floor), due 12/01/2025)(8)(10)
12/5/2017
$
12,500

$
12,388

$
12,500

0.4%





12,388

12,500

0.4%
Fleetwash, Inc.
Commercial Services & Supplies
Senior Secured Term Loan B (11.34% (LIBOR + 9.00% with 1.00% LIBOR floor), due 4/30/2022)(3)(11)
4/30/2014
21,544

21,544

21,544

0.6%
Delayed Draw Term Loan – $15,000 Commitment (10.34% (LIBOR + 8.00% with 1.00% LIBOR floor), expires 4/30/2022)(11)(15)
4/30/2014



—%





21,544

21,544

0.6%
Galaxy XV CLO, Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 10.89%, due 10/15/2030)(5)(14)
3/14/2013
50,525

35,233

30,617

0.9%





35,233

30,617

0.9%
Galaxy XXVII CLO, Ltd. (f/k/a Galaxy XVI CLO, Ltd.)
Structured Finance
Subordinated Notes (Residual Interest, current yield 10.28%, due 5/16/2031)(5)(14)
4/17/2018
24,575

16,495

13,668

0.4%





16,495

13,668

0.4%
Galaxy XXVIII CLO, Ltd. (f/k/a Galaxy XVII CLO, Ltd.)
Structured Finance
Subordinated Notes (Residual Interest, current yield 10.85%, due 7/15/2031)(5)(6)(14)
6/27/2014
39,905

28,281

18,664

0.5%





28,281

18,664

0.5%
Galaxy XXVIII CLO, Ltd.
Structured Finance
Class F Junior Notes (10.82% (LIBOR + 8.48%), due 7/15/2031)(6)(11)(14)(37)
7/16/2018
6,658

6,171

6,616

0.2%





6,171

6,616

0.2%
H.I.G. ECI Merger Sub, Inc.
IT Services
Senior Secured Term Loan A (7.84% (LIBOR + 5.50% with 1.50% LIBOR floor), due 5/31/2023)(3)(11)
5/31/2018
44,576

44,576

44,576

1.3%
Senior Secured Term Loan B (12.84% (LIBOR + 10.50% with 1.50% LIBOR floor), due 5/31/2023)(3)(11)
5/31/2018
29,900

29,900

29,900

0.9%





74,476

74,476

2.2%
Halcyon Loan Advisors Funding 2012-1 Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2023)(5)(14)(17)
8/21/2012
23,188

3,844

4,665

0.1%





3,844

4,665

0.1%
Halcyon Loan Advisors Funding 2013-1 Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 0.00%, due 4/15/2025)(5)(14)(17)
3/28/2013
40,400

21,359

13,109

0.4%





21,359

13,109

0.4%
Halcyon Loan Advisors Funding 2014-1 Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 1.35%, due 4/18/2026)(5)(14)
3/6/2014
24,500

13,315

11,201

0.3%





13,315

11,201

0.3%
Halcyon Loan Advisors Funding 2014-2 Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 0.00%, due 4/28/2025)(5)(6)(14)(17)
4/28/2014
41,164

23,151

16,598

0.5%





23,151

16,598

0.5%
Halcyon Loan Advisors Funding 2015-3 Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 20.18%, due 10/18/2027)(5)(6)(14)
9/3/2015
39,598

34,437

32,319

0.9%





34,437

32,319

0.9%

See notes to consolidated financial statements.
15


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
Halyard MD OPCO, LLC
Media
Revolving Line of Credit – $2,000 Commitment (10.39% (LIBOR + 8.00%), due 2/6/2020)(11)(15)
8/6/2018
$

$

$

—%
First Lien Term Loan (10.39% (LIBOR + 8.00% with 2.00% LIBOR floor), due 8/6/2023)(11)
8/6/2018
11,925

11,925

11,925

0.4%
Delayed Draw Term Loan – $3,500 Commitment (10.39% (LIBOR + 8.00% with 2.00% LIBOR floor), due 8/6/2019)(11)(15)
8/6/2018



—%





11,925

11,925

0.4%
Harbortouch Payments, LLC
Commercial Services & Supplies
Escrow Receivable
3/31/2014



932

—%






932

—%
HarbourView CLO VII-R, Ltd. (f/k/a HarbourView CLO VII, Ltd.)
Structured Finance
Subordinated Notes (Residual Interest, current yield 18.02%, due 7/18/2031)(5)(6)(14)
6/10/2015
19,025

14,029

13,632

0.4%





14,029

13,632

0.4%
Help/Systems Holdings, Inc.
Software
Second Lien Term Loan (9.99% (LIBOR + 7.75%), due 3/27/2026)(3)(8)(13)
4/17/2018
11,293

11,246

11,293

0.3%





11,246

11,293

0.3%
Ingenio, LLC
Interactive Media & Services
Senior Secured Term Loan (9.91% (LIBOR + 7.50% with 1.25% LIBOR floor), due 9/26/2022)(3)(8)(11)
9/25/2017
9,647

9,647

9,647

0.3%



 

9,647

9,647

0.3%
Inpatient Care Management Company, LLC
Health Care Providers & Services
Senior Secured Term Loan (10.34% (LIBOR + 8.00% with 1.00% LIBOR floor), due 6/8/2021)(3)(11)
6/8/2016
21,713

21,713

21,713

0.6%



 

21,713

21,713

0.6%
Janus International Group, LLC
Building Products
Second Lien Term Loan (9.99% (LIBOR + 7.75% with 1.00% LIBOR floor), due 2/12/2026)(3)(8)(13)
2/22/2018
20,000

19,824

20,000

0.6%



 

19,824

20,000

0.6%
JD Power and Associates
Capital Markets
Second Lien Term Loan (10.74% (LIBOR + 8.50% with 1.00% LIBOR floor), due 9/7/2024)(3)(8)(13)
9/16/2016
26,675

26,531

26,675

0.8%



 

26,531

26,675

0.8%
Jefferson Mill CLO Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 11.66%, due 10/20/2031)(5)(6)(14)
7/28/2015
23,594

18,297

12,917

0.4%



 

18,297

12,917

0.4%
K&N Parent, Inc.
Auto Components
Second Lien Term Loan (11.14% (LIBOR + 8.75% with 1.00% LIBOR floor), due 10/21/2024)(3)(8)(11)
10/20/2016
25,887

25,388

24,851

0.7%



 

25,388

24,851

0.7%
Keystone Acquisition Corp.(36)
Health Care Providers & Services
Second Lien Term Loan (11.64% (LIBOR + 9.25% with 1.00% LIBOR floor), due 5/1/2025)(3)(8)(11)
5/18/2017
50,000

50,000

50,000

1.5%



 

50,000

50,000

1.5%
LCM XIV Ltd.
Structured Finance
Income Notes (Residual Interest, current yield 16.64%, due 7/21/2031)(5)(14)
7/11/2013
49,934

27,644

24,770

0.7%



 

27,644

24,770

0.7%
Madison Park Funding IX, Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 0.00%, due 8/15/2022)(5)(14)(17)
7/18/2012
43,110

1,994

1,624

0.1%



 

1,994

1,624

0.1%

See notes to consolidated financial statements.
16


PROSPECT CAPITAL CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULES OF INVESTMENTS (CONTINUED)
(in thousands, except share data)

 
 
 
 
September 30, 2018 (Unaudited)
Portfolio Company
Industry
Investments(1)(44)
Acquisition Date
Principal Value
Amortized Cost
Fair
Value(2)
% of Net Assets
 
 
 
 
 
 
 
 
LEVEL 3 PORTFOLIO INVESTMENTS
 
 
 
 
 
 
 
 
 
 
 
 
 
Non-Control/Non-Affiliate Investments (less than 5.00% voting control)
 
 
 
 
 
 
 
 
 
 
 
 
 
Maverick Healthcare Equity, LLC
Health Care Providers & Services
Preferred Units (10.00%, 1,250,000 units)(16)
10/31/2007


$
1,252

$
262

—%
Class A Common Units (1,250,000 units)(16)
10/31/2007




—%



 

1,252

262

—%
MedMark Services, Inc.(51)
Health Care Providers & Services
Second Lien Term Loan (10.35% (LIBOR + 8.25% with 1.00% LIBOR floor), due 3/1/2025)(3)(8)(13)
3/16/2018
$
7,000

6,935

6,935

0.2%



 

6,935

6,935

0.2%
Memorial MRI & Diagnostic, LLC
Health Care Providers & Services
Senior Secured Term Loan (10.89% (LIBOR + 8.50% with 1.00% LIBOR floor), due 3/16/2022)(11)
3/16/2017
36,735

36,735

36,735

1.1%



 

36,735

36,735

1.1%
Mobile Posse, Inc.
Media
First Lien Term Loan (10.89% (LIBOR + 8.50% with 2.00% LIBOR floor), due 4/3/2023)(3)(11)
4/3/2018
27,400

27,400

27,400

0.8%



 

27,400

27,400

0.8%
Mountain View CLO 2013-I Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 13.74%, due 10/15/2030)(5)(14)
5/1/2013
43,650

28,823

23,281

0.7%



 

28,823

23,281

0.7%
Mountain View CLO IX Ltd.
Structured Finance
Subordinated Notes (Residual Interest, current yield 18.61%, due 7/15/2031)(5)(6)(14)
6/25/2015
47,830

31,489

34,290

1.0%