UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM 10-Q
(Mark One)
|
☒ |
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For The Quarterly Period Ended March 31, 2021
OR
|
☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Commission File Number: 814-00702
HERCULES CAPITAL, INC.
(Exact Name of Registrant as Specified in its Charter)
|
Maryland |
|
74-3113410 |
|
(State or Jurisdiction of Incorporation or Organization) |
|
(IRS Employer Identification Number) |
|
400 Hamilton Ave., Suite 310 Palo Alto, California (Address of Principal Executive Offices) |
|
94301 (Zip Code) |
|
|
(650) 289-3060
(Registrant’s Telephone Number, Including Area Code)
Securities registered pursuant to Section 12(b) of the Act:
|
Title of each class |
Trading Symbol(s) |
Name of each exchange on which registered |
|
Common Shares, par value $0.001 per share |
HTGC |
New York Stock Exchange |
|
5.25% Notes due 2025 |
HCXZ |
New York Stock Exchange |
|
6.25% Notes due 2033 |
HCXY |
New York Stock Exchange |
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 periods that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☐ No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer”, “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
|
Large accelerated filer |
|
☒ |
|
Accelerated filer |
|
☐ |
|
Non-accelerated filer |
|
☐ |
|
Smaller reporting company |
|
☐ |
|
Emerging growth company |
|
☐ |
|
|
|
|
|
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with a new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. |
|
☐ |
||||
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒
On April 22, 2021, there were 115,743,245 shares outstanding of the Registrant’s common stock, $0.001 par value.
HERCULES CAPITAL, INC.
FORM 10-Q TABLE OF CONTENTS
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3 |
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Item 1. |
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3 |
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3 |
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Consolidated Statements of Operations for the three months ended March 31, 2021 and 2020 (unaudited) |
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5 |
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6 |
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Consolidated Statements of Cash Flows for the three months ended March 31, 2021 and 2020 (unaudited) |
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7 |
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Consolidated Schedule of Investments as of March 31, 2021 (unaudited) |
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8 |
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Consolidated Schedule of Investments as of December 31, 2020 |
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19 |
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30 |
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Item 2. |
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Management’s Discussion and Analysis of Financial Condition and Results of Operations |
|
64 |
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Item 3. |
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81 |
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Item 4. |
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82 |
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83 |
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Item 1. |
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83 |
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Item 1A. |
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83 |
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Item 2. |
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85 |
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Item 3. |
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85 |
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Item 4. |
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85 |
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Item 5. |
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85 |
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Item 6. |
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86 |
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89 |
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2
In this Quarterly Report, the “Company,” “Hercules,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts, unless the context otherwise requires.
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(in thousands, except per share data)
|
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
||
|
|
|
(unaudited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Investments, at fair value: |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments (cost of $2,253,503 and $2,175,651, respectively) |
|
$ |
2,385,998 |
|
|
$ |
2,288,338 |
|
|
Control investments (cost of $74,849 and $65,257, respectively) |
|
|
68,693 |
|
|
|
57,400 |
|
|
Affiliate investments (cost of $75,450 and $74,450, respectively) |
|
|
9,664 |
|
|
|
8,340 |
|
|
Total investments, at fair value (cost of $2,403,802 and $2,315,358, respectively) |
|
|
2,464,355 |
|
|
|
2,354,078 |
|
|
Cash and cash equivalents |
|
|
74,987 |
|
|
|
198,282 |
|
|
Restricted cash |
|
|
11,829 |
|
|
|
39,340 |
|
|
Interest receivable |
|
|
20,597 |
|
|
|
19,077 |
|
|
Right of use asset |
|
|
8,666 |
|
|
|
9,278 |
|
|
Other assets |
|
|
3,417 |
|
|
|
3,942 |
|
|
Total assets |
|
$ |
2,583,851 |
|
|
$ |
2,623,997 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
Debt (net of debt issuance costs - Note 5) |
|
$ |
1,231,298 |
|
|
$ |
1,286,638 |
|
|
Accounts payable and accrued liabilities |
|
|
28,300 |
|
|
|
36,343 |
|
|
Operating lease liability |
|
|
8,859 |
|
|
|
9,312 |
|
|
Total liabilities |
|
$ |
1,268,457 |
|
|
$ |
1,332,293 |
|
|
|
|
|
|
|
|
|
|
|
|
Net assets consist of: |
|
|
|
|
|
|
|
|
|
Common stock, par value |
|
|
116 |
|
|
|
115 |
|
|
Capital in excess of par value |
|
|
1,160,519 |
|
|
|
1,158,198 |
|
|
Total distributable earnings |
|
|
154,759 |
|
|
|
133,391 |
|
|
Total net assets |
|
$ |
1,315,394 |
|
|
$ |
1,291,704 |
|
|
Total liabilities and net assets |
|
$ |
2,583,851 |
|
|
$ |
2,623,997 |
|
|
|
|
|
|
|
|
|
|
|
|
Shares of common stock outstanding ($0.001 par value and 200,000,000 authorized) |
|
|
115,768 |
|
|
|
114,726 |
|
|
Net asset value per share |
|
$ |
11.36 |
|
|
$ |
11.26 |
|
See notes to consolidated financial statements
3
The following table presents the assets and liabilities of our consolidated securitization trusts for the 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes (see “Note 5 - Debt”), which are variable interest entities, or VIEs. The assets of our securitization VIEs can only be used to settle obligations of our consolidated securitization VIEs, these liabilities are only the obligations of our consolidated securitization VIEs, and the creditors (or beneficial interest holders) do not have recourse to our general credit. These assets and liabilities are included in the Consolidated Statements of Assets and Liabilities above.
|
|
|
March 31, 2021 |
|
|
December 31, 2020 |
|
||
|
(Dollars in thousands) |
|
(unaudited) |
|
|
|
|
|
|
|
Assets |
|
|
|
|
|
|
|
|
|
Restricted Cash |
|
$ |
11,829 |
|
|
$ |
39,340 |
|
|
2027 Asset-Backed Notes, investments in securities, at value (cost of $233,864 and $267,657, respectively) |
|
|
235,476 |
|
|
|
269,551 |
|
|
2028 Asset-Backed Notes, investments in securities, at value (cost of $340,592 and $355,236, respectively) |
|
|
340,620 |
|
|
|
356,097 |
|
|
Total assets |
|
$ |
587,925 |
|
|
$ |
664,988 |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities |
|
|
|
|
|
|
|
|
|
2027 Asset-Backed Notes, net (principal of $131,545 and $180,988, respectively) (1) |
|
$ |
130,016 |
|
|
$ |
178,812 |
|
|
2028 Asset-Backed Notes, net (principal of $221,434 and $250,000, respectively) (1) |
|
|
219,413 |
|
|
|
247,647 |
|
|
Total liabilities |
|
$ |
349,429 |
|
|
$ |
426,459 |
|
|
(1) |
The Company’s 2027 Asset-Backed Notes and the 2028 Asset-Backed Notes are presented net of the associated debt issuance costs. See “Note 5 – Debt”. |
See notes to consolidated financial statements
4
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
(in thousands, except per share data)
|
|
|
Three Months Ended March 31, |
|
|||||
|
|
|
2021 |
|
|
2020 |
|
||
|
Investment income: |
|
|
|
|
|
|
|
|
|
Interest income |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
$ |
62,982 |
|
|
$ |
65,338 |
|
|
Control investments |
|
|
799 |
|
|
|
646 |
|
|
Affiliate investments |
|
|
1 |
|
|
|
220 |
|
|
Total interest income |
|
|
63,782 |
|
|
|
66,204 |
|
|
Fee income |
|
|
|
|
|
|
|
|
|
Commitment, facility and loan fee income |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
3,403 |
|
|
|
4,196 |
|
|
Control investments |
|
|
8 |
|
|
|
5 |
|
|
Affiliate investments |
|
|
— |
|
|
|
— |
|
|
Total commitment, facility and loan fee income |
|
|
3,411 |
|
|
|
4,201 |
|
|
One-time fee income |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
1,566 |
|
|
|
3,214 |
|
|
Total one-time fee income |
|
|
1,566 |
|
|
|
3,214 |
|
|
Total fee income |
|
|
4,977 |
|
|
|
7,415 |
|
|
Total investment income |
|
|
68,759 |
|
|
|
73,619 |
|
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Interest |
|
|
14,750 |
|
|
|
14,532 |
|
|
Loan fees |
|
|
2,800 |
|
|
|
1,794 |
|
|
General and administrative |
|
|
|
|
|
|
|
|
|
Legal expenses |
|
|
428 |
|
|
|
899 |
|
|
Tax expenses |
|
|
1,438 |
|
|
|
1,135 |
|
|
Other expenses |
|
|
3,168 |
|
|
|
4,025 |
|
|
Total general and administrative |
|
|
5,034 |
|
|
|
6,059 |
|
|
Employee compensation |
|
|
|
|
|
|
|
|
|
Compensation and benefits |
|
|
9,804 |
|
|
|
8,214 |
|
|
Stock-based compensation |
|
|
2,744 |
|
|
|
2,440 |
|
|
Total employee compensation |
|
|
12,548 |
|
|
|
10,654 |
|
|
Total gross operating expenses |
|
|
35,132 |
|
|
|
33,039 |
|
|
Expenses allocated to the Adviser Subsidiary |
|
|
(933 |
) |
|
|
— |
|
|
Total net operating expenses |
|
|
34,199 |
|
|
|
33,039 |
|
|
Net investment income |
|
|
34,560 |
|
|
|
40,580 |
|
|
Net realized and change in unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
|
Net realized gain (loss) on investments |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
7,770 |
|
|
|
6,967 |
|
|
Control investments |
|
|
— |
|
|
|
— |
|
|
Affiliate investments |
|
|
— |
|
|
|
— |
|
|
Total net realized gain (loss) on investments |
|
|
7,770 |
|
|
|
6,967 |
|
|
Net change in unrealized appreciation (depreciation) on investments |
|
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
18,022 |
|
|
|
(58,430 |
) |
|
Control investments |
|
|
1,702 |
|
|
|
(7,851 |
) |
|
Affiliate investments |
|
|
2,109 |
|
|
|
(9,989 |
) |
|
Total net change in unrealized appreciation (depreciation) on investments |
|
|
21,833 |
|
|
|
(76,270 |
) |
|
Total net realized and change in unrealized appreciation (depreciation) on investments: |
|
|
29,603 |
|
|
|
(69,303 |
) |
|
Net increase (decrease) in net assets resulting from operations |
|
$ |
64,163 |
|
|
$ |
(28,723 |
) |
|
|
|
|
|
|
|
|
|
|
|
Net investment income before investment gains and losses per common share: |
|
|||||||
|
Basic |
|
$ |
0.30 |
|
|
$ |
0.37 |
|
|
Change in net assets resulting from operations per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.56 |
|
|
$ |
(0.27 |
) |
|
Diluted |
|
$ |
0.55 |
|
|
$ |
(0.27 |
) |
|
Weighted average shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
|
114,304 |
|
|
|
108,955 |
|
|
Diluted |
|
|
114,803 |
|
|
|
108,955 |
|
|
Distributions paid per common share: |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.37 |
|
|
$ |
0.40 |
|
See notes to consolidated financial statements
5
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(unaudited)
(dollars and shares in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital in |
|
|
Distributable |
|
|
|
|
|
||
|
|
Common Stock |
|
|
excess |
|
|
Earnings |
|
|
Net |
|
||||||||
|
For the Three Months Ended March 31, 2021 |
Shares |
|
|
Par Value |
|
|
of par value |
|
|
(loss) |
|
|
Assets |
|
|||||
|
Balance as of December 31, 2020 |
|
114,726 |
|
|
$ |
115 |
|
|
$ |
1,158,198 |
|
|
$ |
133,391 |
|
|
$ |
1,291,704 |
|
|
Net increase (decrease) in net assets resulting from operations |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
64,163 |
|
|
|
64,163 |
|
|
Public offering, net of offering expenses |
|
— |
|
|
|
— |
|
|
|
(195 |
) |
|
|
— |
|
|
|
(195 |
) |
|
Issuance of common stock due to stock option exercises |
|
222 |
|
|
|
— |
|
|
|
2,745 |
|
|
|
— |
|
|
|
2,745 |
|
|
Retired shares from net issuance |
|
(50 |
) |
|
|
— |
|
|
|
(603 |
) |
|
|
— |
|
|
|
(603 |
) |
|
Issuance of common stock under restricted stock plan |
|
924 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
Retired shares for restricted stock vesting |
|
(121 |
) |
|
|
— |
|
|
|
(3,181 |
) |
|
|
— |
|
|
|
(3,181 |
) |
|
Distributions reinvested in common stock |
|
67 |
|
|
|
— |
|
|
|
1,040 |
|
|
|
— |
|
|
|
1,040 |
|
|
Distributions |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(42,795 |
) |
|
|
(42,795 |
) |
|
Stock-based compensation (1) |
|
— |
|
|
|
— |
|
|
|
2,516 |
|
|
|
— |
|
|
|
2,516 |
|
|
Balance as of March 31, 2021 |
|
115,768 |
|
|
$ |
116 |
|
|
$ |
1,160,519 |
|
|
$ |
154,759 |
|
|
$ |
1,315,394 |
|
|
(1) |
Stock-based compensation includes $25 of restricted stock and option expense related to director compensation for the three months ended March 31, 2021. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital in |
|
|
Distributable |
|
|
|
|
|
||
|
|
|
Common Stock |
|
|
excess |
|
|
Earnings |
|
|
Net |
|
||||||||
|
For the Three Months Ended March 31, 2020 |
|
Shares |
|
|
Par Value |
|
|
of par value |
|
|
(loss) |
|
|
Assets |
|
|||||
|
Balance as of December 31, 2019 |
|
|
107,364 |
|
|
$ |
108 |
|
|
$ |
1,145,106 |
|
|
$ |
(12,165 |
) |
|
$ |
1,133,049 |
|
|
Net increase (decrease) in net assets resulting from operations |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(28,723 |
) |
|
|
(28,723 |
) |
|
Public offering, net of offering expenses |
|
|
2,441 |
|
|
|
2 |
|
|
|
34,960 |
|
|
|
— |
|
|
|
34,962 |
|
|
Issuance of common stock due to stock option exercises |
|
|
29 |
|
|
|
— |
|
|
|
362 |
|
|
|
— |
|
|
|
362 |
|
|
Retired shares from net issuance |
|
|
(24 |
) |
|
|
— |
|
|
|
(376 |
) |
|
|
— |
|
|
|
(376 |
) |
|
Issuance of common stock under restricted stock plan |
|
|
749 |
|
|
|
1 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
Retired shares for restricted stock vesting |
|
|
(17 |
) |
|
|
— |
|
|
|
(880 |
) |
|
|
— |
|
|
|
(880 |
) |
|
Distributions reinvested in common stock |
|
|
59 |
|
|
|
— |
|
|
|
827 |
|
|
|
— |
|
|
|
827 |
|
|
Distributions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(44,223 |
) |
|
|
(44,223 |
) |
|
Stock-based compensation (1) |
|
|
— |
|
|
|
— |
|
|
|
2,082 |
|
|
|
— |
|
|
|
2,082 |
|
|
Balance as of March 31, 2020 |
|
|
110,601 |
|
|
$ |
111 |
|
|
$ |
1,182,080 |
|
|
$ |
(85,111 |
) |
|
$ |
1,097,080 |
|
|
(1) |
Stock-based compensation includes $21 of restricted stock and option expense related to director compensation for the three months ended March 31, 2020. |
See notes to consolidated financial statements
6
HERCULES CAPITAL, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(unaudited)
(dollars in thousands)
|
|
For the Three Months Ended March 31, |
|
|||||
|
|
2021 |
|
|
2020 |
|
||
|
Cash flows from operating activities: |
|
|
|
|
|
|
|
|
Net increase (decrease) in net assets resulting from operations |
$ |
64,163 |
|
|
$ |
(28,723 |
) |
|
Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities: |
|
|
|
|
|
|
|
|
Purchases of investments |
|
(355,333 |
) |
|
|
(233,612 |
) |
|
Purchases assigned to External Funds |
|
48,353 |
|
|
|
— |
|
|
Principal and fee payments received on investments |
|
209,747 |
|
|
|
167,511 |
|
|
Proceeds from the sale of investments |
|
12,973 |
|
|
|
17,076 |
|
|
Net unrealized (appreciation) depreciation on investments |
|
(21,833 |
) |
|
|
76,270 |
|
|
Net realized (gain) loss on investments |
|
(7,770 |
) |
|
|
(6,967 |
) |
|
Accretion of paid-in-kind principal |
|
(2,475 |
) |
|
|
(2,130 |
) |
|
Accretion of loan discounts |
|
(1,176 |
) |
|
|
(1,147 |
) |
|
Accretion of loan discount on convertible notes |
|
168 |
|
|
|
168 |
|
|
Accretion of loan exit fees |
|
(5,744 |
) |
|
|
(6,265 |
) |
|
Change in deferred loan origination revenue |
|
13,414 |
|
|
|
1,319 |
|
|
Unearned fees related to unfunded commitments |
|
(1,505 |
) |
|
|
(463 |
) |
|
Amortization of debt fees and issuance costs |
|
2,156 |
|
|
|
1,332 |
|
|
Depreciation |
|
94 |
|
|
|
126 |
|
|
Stock-based compensation and amortization of restricted stock grants (1) |
|
2,516 |
|
|
|
2,082 |
|
|
Change in operating assets and liabilities: |
|
|
|
|
|
|
|
|
Interest receivable |
|
(1,520 |
) |
|
|
1,070 |
|
|
Other assets |
|
1,849 |
|
|
|
(4,100 |
) |
|
Accounts payable |
|
— |
|
|
|
(16 |
) |
|
Accrued liabilities |
|
(8,496 |
) |
|
|
(8,233 |
) |
|
Net cash used in operating activities |
|
(50,419 |
) |
|
|
(24,702 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
|
|
Purchases of capital equipment |
|
(12 |
) |
|
|
(29 |
) |
|
Net cash used in investing activities |
|
(12 |
) |
|
|
(29 |
) |
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities: |
|
|
|
|
|
|
|
|
Issuance of common stock, net |
|
(195 |
) |
|
|
34,962 |
|
|
Retirement of employee shares |
|
(1,039 |
) |
|
|
(895 |
) |
|
Distributions paid |
|
(41,755 |
) |
|
|
(43,396 |
) |
|
Issuance of debt |
|
342,218 |
|
|
|
292,026 |
|
|
Repayments of debt |
|
(397,727 |
) |
|
|
(313,569 |
) |
|
Debt issuance costs |
|
(1,842 |
) |
|
|
(618 |
) |
|
Fees paid for credit facilities and debentures |
|
(35 |
) |
|
|
(2,433 |
) |
|
Net cash used in financing activities |
|
(100,375 |
) |
|
|
(33,923 |
) |
|
Net increase (decrease) in cash, cash equivalents, and restricted cash |
|
(150,806 |
) |
|
|
(58,654 |
) |
|
Cash, cash equivalents, and restricted cash at beginning of period |
|
237,622 |
|
|
|
114,996 |
|
|
Cash, cash equivalents, and restricted cash at end of period |
$ |
86,816 |
|
|
$ |
56,342 |
|
|
|
|
|
|
|
|
|
|
|
Supplemental disclosures of cash flow information and non-cash investing and financing activities: |
|
||||||
|
Interest paid |
$ |
17,359 |
|
|
$ |
17,491 |
|
|
Income tax, including excise tax, paid |
$ |
3,488 |
|
|
$ |
2,309 |
|
|
Distributions reinvested |
$ |
1,040 |
|
|
$ |
827 |
|
|
(1) |
Stock-based compensation includes $25 and $21 of restricted stock and option expense related to director compensation for the three months ended March 31, 2021 and 2020, respectively. |
The following table presents a reconciliation of cash, cash equivalents and restricted cash reported within the Consolidated Statements of Assets and Liabilities that sum to the total of the same such amounts in the Consolidated Statements of Cash Flows:
|
|
For the Three Months Ended March 31, |
|
|||||
|
(Dollars in thousands) |
2021 |
|
|
2020 |
|
||
|
Cash and cash equivalents |
$ |
74,987 |
|
|
$ |
34,282 |
|
|
Restricted cash |
|
11,829 |
|
|
|
22,060 |
|
|
Total cash, cash equivalents, and restricted cash presented in the Consolidated Statements of Cash Flows |
$ |
86,816 |
|
|
$ |
56,342 |
|
See “Note 2 – Summary of Significant Accounting Policies” for a description of restricted cash and cash equivalents.
See notes to consolidated financial statements
7
CONSOLIDATED SCHEDULE OF INVESTMENTS
March 31, 2021
(unaudited)
(dollars in thousands)
|
Portfolio Company |
Sub-Industry |
Type of Investment (1) |
Maturity Date |
Interest Rate and Floor (2) |
Principal Amount |
|
Cost (3) |
|
Value (4) |
|
|||
|
Debt Investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Communications & Networking |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cytracom Holdings LLC (11)(17)(18) |
Communications & Networking |
Senior Secured |
February 2025 |
Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25% |
$ |
7,000 |
|
$ |
6,828 |
|
$ |
7,000 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
6,828 |
|
|
7,000 |
|
|
|
Subtotal: Communications & Networking (0.53%)* |
|
|
|
|
|
|
6,828 |
|
|
7,000 |
|
||
|
Diversified Financial Services |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Greater than 5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gibraltar Business Capital, LLC (7) |
Diversified Financial Services |
Unsecured |
September 2026 |
Interest rate FIXED 14.50% |
$ |
15,000 |
|
|
14,628 |
|
|
14,112 |
|
|
|
Diversified Financial Services |
Unsecured |
September 2026 |
Interest rate FIXED 11.50% |
$ |
10,000 |
|
|
9,802 |
|
|
9,802 |
|
|
Total Gibraltar Business Capital, LLC |
|
|
|
|
$ |
25,000 |
|
|
24,430 |
|
|
23,914 |
|
|
Subtotal: Greater than 5 Years Maturity |
|
|
|
|
|
|
|
24,430 |
|
|
23,914 |
|
|
|
Subtotal: Diversified Financial Services (1.82%)* |
|
|
|
|
|
|
24,430 |
|
|
23,914 |
|
||
|
Drug Delivery |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Antares Pharma Inc. (10)(11)(15) |
Drug Delivery |
Senior Secured |
July 2022 |
Interest rate PRIME + 4.50% or Floor rate of 8.50%, 4.14% Exit Fee |
$ |
40,000 |
|
|
41,229 |
|
|
41,522 |
|
|
Subtotal: 1-5 Years Maturity |
|
|
|
|
|
|
|
41,229 |
|
|
41,522 |
|
|
|
Subtotal: Drug Delivery (3.16%)* |
|
|
|
|
|
|
41,229 |
|
|
41,522 |
|
||
|
Drug Discovery & Development |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Under 1 Year Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acacia Pharma Inc. (5)(10)(11) |
Drug Discovery & Development |
Senior Secured |
January 2022 |
Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee |
$ |
4,245 |
|
|
4,597 |
|
|
4,597 |
|
|
Mesoblast (5)(10)(11)(13) |
Drug Discovery & Development |
Senior Secured |
March 2022 |
Interest rate PRIME + 4.95% or Floor rate of 9.70%, 9.30% Exit Fee |
$ |
50,000 |
|
|
53,541 |
|
|
53,541 |
|
|
Petros Pharmaceuticals, Inc. (p.k.a. Metuchen Pharmaceuticals LLC) |
Drug Discovery & Development |
Senior Secured |
December 2021 |
Interest rate PRIME + 7.25% or Floor rate of 11.50%, 3.05% Exit Fee |
$ |
5,061 |
|
|
5,054 |
|
|
5,054 |
|
|
Stealth Bio Therapeutics Corp. (10)(11) |
Drug Discovery & Development |
Senior Secured |
July 2021 |
Interest rate PRIME + 5.50% or Floor rate of 9.50%, 7.69% Exit Fee |
$ |
7,245 |
|
|
7,416 |
|
|
7,416 |
|
|
TG Therapeutics, Inc. (10)(13) |
Drug Discovery & Development |
Senior Secured |
March 2022 |
Interest rate PRIME + 4.75% or Floor rate of 10.25%, 3.25% Exit Fee |
$ |
30,000 |
|
|
30,609 |
|
|
30,609 |
|
|
Subtotal: Under 1 Year Maturity |
|
|
|
|
|
|
|
101,217 |
|
|
101,217 |
|
|
|
1-5 Years Maturity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Albireo Pharma, Inc. (10)(11)(17) |
Drug Discovery & Development |
Senior Secured |
July 2024 |
Interest rate PRIME + 5.90% or Floor rate of 9.15%, 6.95% Exit Fee |
$ |
10,000 |
|
|
10,054 |
|
|
10,291 |
|
|
Aldeyra Therapeutics, Inc. (11) |
Drug Discovery & Development |
Senior Secured |
October 2023 |
Interest rate PRIME + 3.10% or Floor rate of 9.10%, 6.95% Exit Fee |
$ |
15,000 |
|
|
15,450 |
|
|
15,852 |
|
|
Applied Genetic Technologies Corporation (11) |
Drug Discovery & Development |
Senior Secured |
December 2023 |
Interest rate PRIME + 6.50% or Floor rate of 9.75%, 6.95% Exit Fee |
$ |
10,000 |
|
|
10,100 |
|
|
10,325 |
|
|
Aveo Pharmaceuticals, Inc. (11)(15) |
Drug Discovery & Development |
Senior Secured |
September 2023 |
Interest rate PRIME + 6.40% or Floor rate of 9.65%, 6.95% Exit Fee |
$ |
35,000 |
|
|
35,056 |
|
|
35,119 |
|
|
Axsome Therapeutics, Inc. (10)(17) |
Drug Discovery & Development |
Senior Secured |
October 2025 |
Interest rate PRIME + 5.90% or Floor rate of 9.15%, 4.85% Exit Fee |
$ |
50,000 |
|
|
49,216 |
|
|
51,355 |
|
|
Bicycle Therapeutics PLC (5)(10)(11) |
Drug Discovery & Development |
Senior Secured |
October 2024 |
Interest rate PRIME + 5.60% or Floor rate of 8.85%, 5.00% Exit Fee |
$ |
24,000 |
|
|
24,003 |
|
|
23,907 |
|
|
BridgeBio Pharma LLC (12)(13)(16) |
Drug Discovery & Development |
Senior Secured |
November 2023 |
Interest rate PRIME + 3.85% or Floor rate of 8.75%, 6.35% Exit Fee |
$ |
35,000 |
|
|
36,271 |
|
|
37,408 |
|
|
|
Drug Discovery & Development |
Senior Secured |
November 2023 |
Interest rate PRIME + 2.85% or Floor rate of 8.60%, 5.75% Exit Fee |
$ |
20,000 |
|
|
20,603 |
|
|
21,248 |
|
|
|
Drug Discovery & Development |
Senior Secured |
November 2023 |
Interest rate PRIME + 3.10% or Floor rate of 8.85%, 5.75% Exit Fee |
$ |
20,000 |
|
|
20,476 |
|
|
21,107 |
|
|
Total BridgeBio Pharma LLC |
|
|
|
|
$ |
75,000 |
|
|
77,350 |
|
|
||