UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 

FORM 10-Q

 

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

 

For the Quarter Ended June 30, 2014

 

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

 

Commission File Number: 814-00899

 

TCP CAPITAL CORP.

(Exact Name of Registrant as Specified in Charter)

 

Delaware   56-2594706
(State or Other Jurisdiction   (IRS Employer
of Incorporation)   Identification No.)

 

2951 28 th Street, Suite 1000    
Santa Monica, California   90405
(Address of Principal Executive Offices)   (Zip Code)

 

Registrant’s telephone number, including area code (310) 566-1000

 

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

 

Common Stock, par value $0.001 per share   NASDAQ Global Select Market
(Title of each class)   (Name of each exchange where registered)

 

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

 

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

 

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

 

Large accelerated filer ¨   Accelerated filer                x
     
Non-accelerated filer   ¨   Smaller Reporting company ¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).

Yes ¨ No x

 

The number of shares of the Registrant’s common stock, $0.001 par value, outstanding as of August 7, 2014 was 41,600,130.

 

 
 

 

Table of Contents

TCP CAPITAL CORP.

 

FORM 10-Q FOR THE SIX MONTHS ENDED JUNE 30, 2014

 

TABLE OF CONTENTS

 

Part I. Financial Information  
     
Item 1. Financial Statements  
  Consolidated Statements of Assets and Liabilities as of June 30, 2014 (unaudited) and December 31, 2013 2
  Consolidated Statements of Investments as of June 30, 2014 (unaudited) and December 31, 2013 3
  Consolidated Statements of Operations for the three and six months ended June 30, 2014 (unaudited) and June 30, 2013 (unaudited) 13
  Consolidated Statements of Changes in Net Assets for the six months ended June 30, 2014 (unaudited) and year ended December 31, 2013 14
  Consolidated Statements of Cash Flows for the six months ended June 30, 2014 (unaudited) and June 30, 2013 (unaudited) 15
  Notes to Consolidated Financial Statements (unaudited) 16
  Consolidated Schedule of Changes in Investments in Affiliates for the six months ended June 30, 2014 (unaudited) and year ended December 31, 2013 33
  Consolidated Schedule of Restricted Securities of Unaffiliated Issuers as of June 30, 2014 (unaudited) and December 31, 2013 35
  Consolidating Statement of Assets and Liabilities as of June 30, 2014 (unaudited) and December 31, 2013 37
  Consolidating Statement of Operations for the six months ended June 30, 2014 (unaudited) and June 30, 2013 (unaudited) 39
     
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations 41
     
Item 3. Quantitative and Qualitative Disclosures About Market Risk 53
     
Item 4. Controls and Procedures 53
     
Part II. Other Information  
     
Item 1. Legal Proceedings 54
     
Item 1A. Risk Factors 54
     
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 55
     
Item 3. Defaults upon Senior Securities 55
     
Item 4. Mine Safety Disclosures 55
     
Item 5. Other Information 55
     
Item 6. Exhibits 55

 

1
 

 

TCP Capital Corp.

 

Consolidated Statements of Assets and Liabilities

 

   June 30, 2014   December 31, 2013 
   (unaudited)     
Assets          
Investments, at fair value:          
Companies less than 5% owned (cost of $825,953,904 and $684,569,508, respectively)  $827,560,564   $678,326,915 
Companies 5% to 25% owned (cost of $54,237,483 and $73,946,547, respectively)   50,409,131    69,068,808 
Companies more than 25% owned (cost of $41,400,990 and $42,588,724 respectively)   16,699,429    18,867,236 
Total investments (cost of $921,592,377 and $801,104,779, respectively)   894,669,124    766,262,959 
           
Cash and cash equivalents   29,379,532    22,984,182 
Receivable for investments sold   17,396,874    3,605,964 
Accrued interest income:          
Companies less than 5% owned   8,213,741    6,282,353 
Companies 5% to 25% owned   372,400    415,061 
Companies more than 25% owned   35,257    41,691 
Deferred debt issuance costs   7,351,121    2,969,085 
Options (cost $51,750)   1,855    14,139 
Prepaid expenses and other assets   1,185,503    753,768 
Total assets   958,605,407    803,329,202 
           
Liabilities          
Debt   250,500,788    95,000,000 
Payable for investments purchased   8,561,631    14,706,942 
Incentive allocation payable   3,613,830    3,318,900 
Payable to the Investment Manager   1,750,735    1,121,108 
Interest payable   882,820    430,969 
Unrealized depreciation on swaps   208,862    331,183 
Accrued expenses and other liabilities   2,598,420    3,136,010 
Total liabilities   268,117,086    118,045,112 
           
Commitments and contingencies (Note 5)          
           
Preferred equity facility          
Series A preferred limited partner interests in Special Value Continuation Partners, LP; $20,000/interest liquidation preference; 6,700 interests authorized, issued and outstanding   134,000,000    134,000,000 
Accumulated dividends on Series A preferred equity facility   494,140    504,252 
Total preferred limited partner interests   134,494,140    134,504,252 
           
Non-controlling interest          
General Partner interest in Special Value Continuation Partners, LP   1,602,199    1,168,583 
           
Net assets applicable to common shareholders  $554,391,982   $549,611,255 
           
Composition of net assets applicable to common shareholders          
Common stock, $0.001 par value; 200,000,000 shares authorized, 36,200,130 and 36,199,916 shares issued and outstanding as of June 30, 2014 and December 31, 2013, respectively   36,200    36,200 
Paid-in capital in excess of par   670,361,329    667,842,020 
Accumulated net investment income   24,543,049    24,016,095 
Accumulated net realized losses   (111,661,878)   (105,800,278)
Accumulated net unrealized depreciation   (27,284,519)   (35,314,199)
Non-controlling interest   (1,602,199)   (1,168,583)
Net assets applicable to common shareholders  $554,391,982   $549,611,255 
           
Net assets per share  $15.31   $15.18 

 

See accompanying notes.

 

2
 

 

TCP Capital Corp.

 

Consolidated Statement of Investments (Unaudited)

 

June 30, 2014

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (A)                                   
Accounting, Tax Preparation, Bookkeeping, and Payroll Services                              
Expert Global Solutions, LLC  First Lien Term Loan B  LIBOR (Q)  7.25%   1.25%  4/3/2018  $689,015   $697,904   $688,154    0.07%   
Expert Global Solutions, LLC  Second Lien Term Loan  LIBOR (Q)  11.00%   1.50%  10/3/2018  $7,434,877    7,243,959    7,241,571    0.78%   
                         7,941,863    7,929,725    0.85%   
Activities Related to Real Estate                                    
Greystone Select Holdings, LLC  First Lien Term Loan  LIBOR (Q)  8.00%   1.00%  3/26/2021  $16,552,744    16,325,144    16,602,402    1.80%   
                                        
Advertising, Public Relations, and Related Services                              
Doubleplay III Limited (United Kingdom)  First Lien Facility A1 Term Loan  EURIBOR (Q)  6.25%   1.25%  3/18/2018  €3,165,705    16,565,886    17,575,821    1.90%  D/I
                                        
Artificial Synthetic Fibers and Filaments Manufacturing                              
AGY Holding Corp.  Sr Secured Term Loan  Fixed  12.00%   -  9/15/2016  $2,056,927    2,056,927    2,056,927    0.22%  B
AGY Holding Corp.  Second Lien Notes  Fixed  11.00%   -  11/15/2016  $9,268,000    7,586,317    8,767,528    0.95%  B/E
                         9,643,244    10,824,455    1.17%   
Basic Chemical Manufacturing                                    
M&G Chemicals S.A. (Luxembourg)  Sr Secured Term Loan  LIBOR (Q)  7.50%   -  3/18/2016  $15,632,077    15,632,077    15,632,077    1.69%  I
PeroxyChem, LLC  First Lien Term Loan  LIBOR (Q)  6.50%   1.00%  2/28/2020  $8,977,500    8,806,735    9,067,275    0.98%   
                         24,438,812    24,699,352    2.67%   
Beverage Manufacturing                                    
Carolina Beverage Group, LLC  Secured Notes  Fixed  10.625%   -  8/1/2018  $7,780,000    7,780,000    8,421,850    0.91%  E/G
                                        
Business Support Services                                    
STG-Fairway Acquisitions, Inc.  Second Lien Term Loan  LIBOR (Q)  9.25%   1.25%  8/28/2019  $14,643,455    13,988,543    14,833,820    1.61%   
                                        
Chemical Manufacturing                                    
Archroma  Term Loan B  LIBOR (Q)  8.25%   1.25%  9/30/2018  $19,996,931    19,662,046    20,321,881    2.20%   
                                        
Communications Equipment Manufacturing                              
Globecomm Systems, Inc.  First Lien Term Loan  LIBOR (Q)  7.625%   1.25%  12/11/2018  $14,925,000    14,775,750    14,805,600    1.60%  B
                                        
Computer Equipment Manufacturing                              
ELO Touch Solutions, Inc.  Second Lien Term Loan  LIBOR (Q)  10.50%   1.50%  12/1/2018  $10,000,000    9,691,295    9,100,000    0.99%   
                                        
Computer Systems Design and Related Services                              
Autoalert, LLC  First Lien Term Loan  LIBOR (Q)  4.75% Cash + 4% PIK   0.25%  3/31/2019  $30,303,333    29,726,913    30,591,215    3.31%   
Blue Coat Systems, Inc.  First Lien Revolver  LIBOR (Q)  3.50%   1.00%  5/31/2018  $–    (834,605)   (455,460)   (0.05%)  L
Blue Coat Systems, Inc.  Second Lien Term Loan  LIBOR (Q)  8.50%   1.00%  6/28/2020  $15,000,000    14,878,125    15,275,025    1.65%   
MSC Software Corporation  Second Lien Term Loan  LIBOR (M)  7.50%   1.00%  5/29/2021  $11,993,035    11,873,105    12,112,966    1.31%   
OnX Enterprise Solutions, Ltd.  First Lien Term Loan B  LIBOR (Q)  8.00%   -  9/3/2018  $2,373,333    2,373,333    2,394,693    0.26%   
OnX Enterprise Solutions, Ltd.  First Lien Term Loan  LIBOR (Q)  7.00%   -  9/3/2018  $10,586,667    10,450,746    10,544,320    1.14%   
OnX USA, LLC  First Lien Term Loan B  LIBOR (Q)  8.00%   -  9/3/2018  $4,746,667    4,746,667    4,789,387    0.52%   
OnX USA, LLC  First Lien Term Loan  LIBOR (Q)  7.00%   -  9/3/2018  $5,293,333    5,229,107    5,272,160    0.57%   
Vistronix, LLC  First Lien Revolver  LIBOR (Q)  7.50%   1.00%  12/4/2018  $199,849    193,183    199,849    0.02%   
Vistronix, LLC  First Lien Term Loan  LIBOR (M)  7.50%   1.00%  12/4/2018  $6,680,650    6,602,060    6,650,587    0.72%   
Websense, Inc.  Second Lien Term Loan  LIBOR (Q)  7.25%   1.00%  12/27/2020  $7,200,000    7,164,000    7,263,000    0.78%   
                         92,402,634    94,637,742    10.23%   
Cut and Sew Apparel Manufacturing                                    
Jones Apparel, LLC  First Lien FILO Term Loan  LIBOR (M)  9.60%   1.00%  4/8/2019  $14,329,403    14,186,109    14,487,027    1.57%   
                                        
Data Processing, Hosting, and Related Services                                    
The Telx Group, Inc.  Senior Notes  Fixed  13.5% PIK   -  7/9/2021  $4,165,481    4,165,481    4,307,108    0.47%  E
                                        
Electric Power Generation, Transmission and Distribution                              
Panda Sherman Power, LLC  First Lien Term Loan  LIBOR (Q)  7.50%   1.50%  9/14/2018  $11,070,172    10,944,276    11,367,683    1.23%   
                                        
Electrical Equipment and Component Manufacturing                              
Palladium Energy, Inc.  First Lien Term Loan  LIBOR (Q)  9.00%   1.00%  12/26/2017  $16,153,317    15,912,128    16,395,617    1.77%   
                                        
Electrical Equipment Manufacturing                                    
API Technologies Corp.  First Lien Term Loan  LIBOR (Q)  7.50%   1.50%  2/6/2018  $6,860,745    6,792,137    6,857,314    0.74%   
                                        
Fabricated Metal Product Manufacturing                              
Constellation Enterprises, LLC  First Lien Notes  Fixed  10.625%   -  2/1/2016  $2,900,000    2,858,907    2,682,500    0.29%  E
                                        
Financial Investment Activities                                    
Institutional Shareholder Services, Inc.  Second Lien Term Loan  LIBOR (Q)  7.50%   1.00%  4/30/2022  $7,994,196    7,914,254    8,064,145    0.87%   
Marsico Capital Management  First Lien Term Loan  LIBOR (M)  5.00%   -  12/31/2022  $10,555,929    13,291,319    4,292,727    0.46%  J
                         21,205,573    12,356,872    1.33%   

 

3
 

 

 TCP Capital Corp.

 

Consolidated Statement of Investments (Unaudited) (Continued)

 

June 30, 2014

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (continued)                                       
Freight Transportation Arrangement                                    
Livingston International, Inc. (Canada)  Second Lien Term Loan  LIBOR (Q)  7.75%   1.25%  4/18/2020  $3,665,217   $3,601,696   $3,703,702    0.40%  I
                                        
Full-Service Restaurants                                       
RM Holdco, LLC  Subordinated Convertible Term Loan  Fixed  1.12% PIK   -  3/21/2018  $5,164,796    5,164,796    1,007,135    0.11%  B
RM OpCo, LLC  Convertible First Lien Term Loan Tranche B-1  Fixed  12% Cash + 7% PIK   -  3/21/2016  $1,491,872    1,467,184    1,491,872    0.16%  B
RM OpCo, LLC  First Lien Term Loan Tranche A  Fixed  11.00%   -  3/21/2016  $3,751,177    3,751,177    3,751,177    0.41%  B
RM OpCo, LLC  First Lien Term Loan Tranche B  Fixed  12% Cash + 7% PIK   -  3/21/2016  $7,433,488    7,433,488    7,433,488    0.80%  B
RM OpCo, LLC  First Lien Term Loan Tranche B-1  Fixed  12% Cash + 7% PIK   -  3/21/2016  $2,341,059    2,307,647    2,341,059    0.25%  B
                         20,124,292    16,024,731    1.73%   
Gaming Industries                                       
AP Gaming I, LLC  First Lien Revolver  LIBOR (Q)  8.25%   1.00%  12/20/2018  $2,500,000    2,827,878    3,000,000    0.32%   
AP Gaming I, LLC  First Lien Term Loan B  LIBOR (Q)  8.25%   1.00%  12/20/2020  $14,925,000    14,498,873    15,186,188    1.64%   
                         17,326,751    18,186,188    1.96%   
General Medical and Surgical Hospitals                                    
RegionalCare Hospital Partners, Inc.  Second Lien Term Loan  LIBOR (M)  9.50%   1.00%  10/23/2019  $21,017,525    20,707,525    20,925,678    2.26%   
                                        
Grocery Stores                                       
Bashas, Inc.  First Lien FILO Term Loan  LIBOR (M)  9.35%   1.50%  12/28/2015  $12,772,956    12,737,142    12,964,551    1.40%   
                                        
Insurance Carriers                                       
Acrisure, LLC  Second Lien Notes  LIBOR (Q)  10.50%   1.00%  3/7/2020  $680,363    571,794    718,115    0.08%   
Acrisure, LLC  Second Lien Notes  LIBOR (Q)  10.50%   1.00%  3/7/2020  $11,051,757    10,838,772    11,123,593    1.20%   
                         11,410,566    11,841,708    1.28%   
Insurance Related Activities                                    
Confie Seguros Holding II Co.  Second Lien Term Loan  LIBOR (M)  9.00%   1.25%  5/8/2019  $6,341,809    6,252,568    6,405,259    0.69%   
                                        
Lessors of Nonfinancial Intangible Assets                                    
ABG Intermediate Holdings 2, LLC  Second Lien Term Loan  LIBOR (S)  8.00%   1.00%  5/27/2022  $15,990,714    15,830,807    16,010,702    1.73%   
                                        
Lessors of Real Estate                                       
Hunt Companies, Inc.  Senior Secured Notes  Fixed  9.625%   -  3/1/2021  $13,084,000    12,926,643    13,738,200    1.49%  E/G
                                        
Merchant Wholesalers                                       
Envision Acquisition Company, LLC  Second Lien Term Loan  LIBOR (Q)  8.75%   1.00%  11/4/2021  $9,079,011    8,897,430    9,215,196    1.00%   
                                        
Motion Picture and Video Industries                                    
CORE Entertainment, Inc.  First Lien Term Loan  Fixed  9.00%   -  6/21/2017  $9,462,231    9,391,249    8,516,008    0.92%   
CORE Entertainment, Inc.  Second Lien Term Loan  Fixed  13.50%   -  6/21/2018  $7,569,785    7,509,764    6,933,923    0.75%   
                         16,901,013    15,449,931    1.67%   
Newspaper, Periodical, Book, and Directory Publishers                              
Hanley-Wood, LLC  First Lien FILO Term Loan  LIBOR (Q)  6.75%   1.25%  7/15/2018  $16,561,400    16,561,400    16,519,997    1.79%   
MediMedia USA, Inc.  First Lien Revolver  LIBOR (Q)  6.75%   -  5/20/2018  $5,890,000    4,960,524    5,492,658    0.59%   
MediMedia USA, Inc.  First Lien Term Loan  LIBOR (Q)  6.75%   1.25%  11/20/2018  $9,591,911    9,349,033    9,400,073    1.02%   
                         30,870,957    31,412,728    3.40%   
Nondepository Credit Intermediation                                    
Caribbean Financial Group (Cayman Islands)  Sr Secured Notes  Fixed  11.50%   -  11/15/2019  $10,000,000    9,834,804    10,950,000    1.19%  E/G/I
Trade Finance Funding I, Ltd. (Cayman Islands)  Secured Class B Notes  Fixed  10.75%   -  11/13/2018  $15,084,000    15,084,000    15,084,000    1.63%  E/I
                         24,918,804    26,034,000    2.82%   
Nonscheduled Air Transportation                                    
One Sky Flight, LLC  Second Lien Term Loan  Fixed  12% Cash + 3% PIK   -  6/3/2019  $18,379,293    17,130,833    18,379,293    1.99%   
                                        
Oil and Gas Extraction                                       
Willbros Group, Inc.  First Lien Term Loan  LIBOR (Q)  9.75%   1.25%  8/7/2019  $13,661,463    13,329,888    13,917,615    1.51%   
                                        
Other Information Services                                    
TCH-2 Holdings, LLC  Second Lien Term Loan  LIBOR (M)  7.75%   1.00%  11/6/2021  $19,988,392    19,688,567    19,788,509    2.14%   
                                        
Other Telecommunications                                    
Securus Technologies, Inc.  Second Lien Term Loan  LIBOR (Q)  7.75%   1.25%  4/30/2021  $14,000,000    13,860,000    14,230,440    1.54%   
                                        
Petroleum and Coal Products Manufacturing                                    
Boomerang Tube, LLC  Second Lien Term Loan  LIBOR (Q)  9.50%   1.50%  10/11/2017  $3,933,213    3,860,914    3,579,223    0.39%   

 

4
 

 

TCP Capital Corp.

 

Consolidated Statement of Investments (Unaudited) (Continued)

 

June 30, 2014

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (continued)                                       
Plastics Products Manufacturing                                    
Iracore International, Inc.  Sr Secured Notes  Fixed  9.50%   -  6/1/2018  $13,600,000   $13,600,000   $14,348,000    1.55%  E
                                        
Radio and Television Broadcasting                                    
SiTV, Inc.  First Lien Term Loan  LIBOR (M)  6% Cash  + 4% PIK   2.00%  8/3/2016  $7,032,138    6,709,167    7,418,905    0.80%   
SiTV, Inc.  Sr Secured Notes  Fixed  10.375%   -  7/1/2019  $7,312,000    7,312,000    7,503,940    0.81%  E/G
The Tennis Channel, Inc.  First Lien Term Loan  LIBOR (Q)  8.50%   -  5/29/2017  $17,946,954    17,549,375    18,027,715    1.95%   
                         31,570,542    32,950,560    3.56%   
Retail                                       
Kenneth Cole Productions, Inc.  First Lien FILO Term Loan  LIBOR (M)  10.40%   1.00%  9/25/2017  $10,863,636    10,675,504    10,917,954    1.18%   
Shopzilla, Inc.  Second Lien Term Loan  LIBOR (Q)  12.50%   -  3/31/2016  $6,710,057    6,615,475    6,699,991    0.73%   
Shop Holding, LLC  Convertible Promissory Note  Fixed  5.00%   -  8/5/2015  $73,140    73,140    66,045    0.01%  E
                         17,364,119    17,683,990    1.92%   
Satellite Telecommunications                                    
Avanti Communications Group, PLC (United Kingdom)  Sr Secured Notes  Fixed  10.00%   -  10/1/2019  $9,914,000    9,914,000    10,538,275    1.14%  E/G/I
                                        
Scheduled Air Transportation                                    
Aircraft Leased to Delta Air Lines, Inc.                                    
N913DL  Aircraft Secured Mortgage  Fixed  8.00%   -  3/15/2017  $247,913    247,913    255,000    0.03%  F
N918DL  Aircraft Secured Mortgage  Fixed  8.00%   -  8/15/2018  $351,588    351,588    362,440    0.04%  F
N954DL  Aircraft Secured Mortgage  Fixed  8.00%   -  3/20/2019  $472,542    472,542    485,860    0.05%  F
N955DL  Aircraft Secured Mortgage  Fixed  8.00%   -  6/20/2019  $493,042    493,042    506,600    0.06%  F
N956DL  Aircraft Secured Mortgage  Fixed  8.00%   -  5/20/2019  $491,365    491,365    504,900    0.05%  F
N957DL  Aircraft Secured Mortgage  Fixed  8.00%   -  6/20/2019  $497,355    497,355    511,020    0.06%  F
N959DL  Aircraft Secured Mortgage  Fixed  8.00%   -  7/20/2019  $503,294    503,294    517,140    0.06%  F
N960DL  Aircraft Secured Mortgage  Fixed  8.00%   -  10/20/2019  $525,171    525,171    539,580    0.06%  F
N961DL  Aircraft Secured Mortgage  Fixed  8.00%   -  8/20/2019  $517,785    517,785    532,100    0.06%  F
N976DL  Aircraft Secured Mortgage  Fixed  8.00%   -  2/15/2018  $352,091    352,091    362,780    0.04%  F
Aircraft Leased to United Airlines, Inc.
N510UA  Aircraft Secured Mortgage  Fixed  20.00%   -  10/26/2016  $281,584    281,584    336,205    0.04%  B
N512UA  Aircraft Secured Mortgage  Fixed  20.00%   -  10/26/2016  $288,287    288,287    346,275    0.04%  B
N545UA  Aircraft Secured Mortgage  Fixed  16.00%   -  8/29/2015  $177,520    177,520    190,855    0.02%  B
N659UA  Aircraft Secured Mortgage  Fixed  12.00%   -  2/28/2016  $2,161,944    2,161,944    2,318,999    0.25%  F
N661UA  Aircraft Secured Mortgage  Fixed  12.00%   -  5/4/2016  $2,350,477    2,350,477    2,551,735    0.28%  F
Mesa Air Group, Inc.  Acquisition Delayed Draw Loan  LIBOR (M)  7.25%   -  7/15/2022  $–    (271,500)   20,363    -   L
Mesa Air Group, Inc.  Acquisition Loan  LIBOR (M)  7.25%   -  7/15/2022  $18,100,000    8,688,000    9,077,150    0.98%   
                         18,128,458    19,419,002    2.12%   
Scientific Research and Development Services                                 
BPA Laboratories, Inc.  Senior Secured Notes  Fixed  12.25%   -  4/1/2017  $17,200,000    16,536,295    18,748,000    2.03%  E
                                        
Semiconductor and Other Electronic Component Manufacturing                                 
SunEdison, Inc.  Senior Secured Letters of Credit  LIBOR (Q)  3.75%   -  2/28/2017  $9,379,246    (1,031,717)   (937,925)   (0.10%)  K/L
                                        
Software Publishers                                       
Acronis International GmbH (Switzerland)  First Lien Revolver  LIBOR (Q)  9.50%   1.00%  2/21/2017  $563,407    563,407    540,871    0.06%  I
Acronis International GmbH (Switzerland)  First Lien Term Loan  LIBOR (Q)  9.50%   1.00%  2/21/2017  $25,000,000    24,754,319    24,900,000    2.70%  I
BlackLine Systems, Inc.  First Lien Term Loan  LIBOR (Q)  0.4% Cash + 7.6% PIK   1.50%  9/25/2018  $13,065,025    12,325,788    12,914,777    1.40%   
Coreone Technologies, LLC  First Lien Term Loan  LIBOR (Q)  3.75% Cash + 5% PIK   1.00%  9/4/2018  $13,899,746    13,632,684    13,830,247    1.50%   
Deltek, Inc.  Second Lien Term Loan  LIBOR (Q)  8.75%   1.25%  10/10/2019  $15,000,000    14,817,883    15,346,875    1.66%   
Edmentum, Inc.  Second Lien Term Loan  LIBOR (Q)  9.75%   1.50%  5/17/2019  $21,500,000    21,342,939    21,715,000    2.35%   
                         87,437,020    89,247,770    9.67%   
Specialty Hospitals                                       
UBC Healthcare Analytics, Inc.  First Lien Term Loan  LIBOR (Q)  9.00%   1.00%  7/1/2018  $4,933,947    4,909,278    4,958,617    0.54%   
                                        
Structured Note Funds                                       
Magnolia Finance V plc (Cayman Islands)  Asset-Backed Credit Linked Notes  Fixed  13.125%   -  8/2/2021  $15,000,000    15,000,000    15,231,000    1.65%  E/I

 

5
 

 

 TCP Capital Corp.

 

Consolidated Statement of Investments (Unaudited) (Continued)

 

June 30, 2014

 

Showing Percentage of Total Cash and Investments of the Company

 

                  Principal                
                  Amount or           %    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Shares   Cost   Value   Portfolio   Notes
                                   
Debt Investments (continued)                                       
Textile Furnishings Mills                                       
Lexmark Carpet Mills, Inc.  First Lien Term Loan  LIBOR (Q)  10.00%   1.00%  9/30/2018  $15,758,531   $15,415,095   $15,994,909    1.73%   
                                        
Wired Telecommunications Carriers                                       
Integra Telecom Holdings, Inc.  Second Lien Term Loan  LIBOR (Q)  8.50%   1.25%  2/22/2020  $15,000,000    14,718,767    15,325,050    1.66%   
                                        
Wireless Telecommunications Carriers                                    
Alpheus Communications, LLC  First Lien FILO Term Loan  LIBOR (Q)  6.92%   1.00%  5/31/2018  $–    (11,183)   (28,122)   0.00%  L
Alpheus Communications, LLC  First Lien FILO Term Loan  LIBOR (Q)  6.92%   1.00%  5/31/2018  $8,248,124    8,166,127    8,041,921    0.87%   
Globalive Wireless Management Corp. (Canada)  First Lien Term Loan  LIBOR (Q)  10.90%   -  4/30/2014  $3,037,292    2,933,872    3,067,665    0.33%  I
Gogo, LLC  First Lien Term Loan  LIBOR (Q)  9.75%   1.50%  6/21/2017  $19,335,284    18,588,807    20,592,078    2.23%   
                         29,677,623    31,673,542    3.43%   
                                        
Total Debt Investments                        852,895,704    865,195,213    93.63%   
                                        
Equity Securities                                       
Business Support Services                                       
Findly Talent, LLC  Membership Units                708,229    230,938    162,185    0.02%  C/E
STG-Fairway Holdings, LLC  Class A Units                841,479    943,287    2,015,174    0.22%  C/E
                         1,174,225    2,177,359    0.24%   
Communications Equipment Manufacturing                                    
Wasserstein Cosmos Co-Invest, L.P.  Limited Partnership Units                5,000,000    5,000,000    4,500,000    0.49%  B/C/E
                                        
Data Processing, Hosting, and Related Services                                    
Anacomp, Inc.  Class A Common Stock                1,255,527    26,711,048    929,090    0.10%  C/E/F
                                        
Depository Credit Intermediation                                       
Doral Financial Corporation  Common Stock                53,890    11,699,417    232,804    0.03%  C/K
                                        
Financial Investment Activities                                       
Marsico Holdings, LLC  Common Interest Units                168,698    172,694    4,234    -   C/E/J
                                        
Full-Service Restaurants                                       
RM Holdco, LLC  Membership Units                13,161,000    2,010,777    -    -   B/C/E
                                        
Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing                              
Precision Holdings, LLC  Class C Membership Interest                33    -    5,723    -   C/E
                                        
Nonmetallic Mineral Mining and Quarrying                                    
EPMC HoldCo, LLC  Membership Units                1,312,720    -    1,063,303    0.12%  B/E
                                        
Nonscheduled Air Transportation                                       
Flight Options Holdings I, Inc.  Warrants to Purchase Common Stock                1,843    1,274,000    1,339,035    0.15%  C/E
                                        
Radio and Television Broadcasting                                       
SiTV, Inc.  Warrants to Purchase Common Stock                233,470    300,322    177,624    0.02%  C/E
                                        
Retail                                       
Shop Holding, LLC  Class A Units                507,167    480,049    373,326    0.04%  C/E
Shop Holding, LLC  Warrants to Purchase Class A Units                326,691    -    -    -   C/E
                         480,049    373,326    0.04%   
Scheduled Air Transportation                                       
Aircraft Leased to Delta Air Lines, Inc.                                    
N913DL  Trust Beneficial Interests                865    91,495    121,720    0.01%  E/F
N918DL  Trust Beneficial Interests                724    101,682    139,414    0.02%  E/F
N954DL  Trust Beneficial Interests                682    120,984    70,380    0.01%  E/F
N955DL  Trust Beneficial Interests                661    120,890    112,200    0.01%  E/F
N956DL  Trust Beneficial Interests                666    120,865    107,780    0.01%  E/F
N957DL  Trust Beneficial Interests                661    121,648    108,800    0.01%  E/F
N959DL  Trust Beneficial Interests                656    122,429    109,480    0.01%  E/F
N960DL  Trust Beneficial Interests                643    125,518    108,800    0.01%  E/F
N961DL  Trust Beneficial Interests                652    124,720    103,360    0.01%  E/F
N976DL  Trust Beneficial Interests                766    104,403    102,691    0.01%  E/F
Aircraft Leased to United Airlines, Inc.                                    
N510UA  Trust Beneficial Interests                60    226,717    460,974    0.05%  B/E
N512UA  Trust Beneficial Interests                59    221,632    452,773    0.05%  B/E
N536UA  Trust Beneficial Interests                -    -    -    0.00%  B/E
N545UA  Trust Beneficial Interests                75    396,478    649,581    0.07%  B/E
N585UA  Trust Beneficial Interests                -    -    -    0.00%  B/E
United N659UA-767, LLC (N659UA)  Trust Beneficial Interests                467    2,306,488    2,609,590    0.28%  E/F
United N661UA-767, LLC (N661UA)  Trust Beneficial Interests                453    2,264,254    2,627,969    0.28%  E/F
                         6,570,203    7,885,512    0.84%   

  

6
 

 

TCP Capital Corp.

 

Consolidated Statement of Investments (Unaudited) (Continued)

 

June 30, 2014

 

Showing Percentage of Total Cash and Investments of the Company

  

                               % of    
Issuer  Instrument  Ref  Spread  Floor   Maturity  Shares   Cost   Value   Portfolio   Notes
                                    
Equity Securities (continued)                                        
Resin, Synthetic Rubber, and Artificial Synthetic Fibers and Filaments Manufacturing        
KAGY Holding Company, Inc.  Series A Preferred Stock                 9,778   $1,091,200   $754,378    0.08%  B/C/E
                                         
Semiconductor and Other Electronic Component Manufacturing                          
AIP/IS Holdings, LLC  Membership Units                 352    -    229,504    0.02%  C/E
                                         
Software Publishers                                        
SLS Breeze Intermediate Holdings, Inc.  Warrants to Purchase Common Stock                 1,232,731    522,678    653,841    0.07%  C/E
                                         
Wired Telecommunications Carriers                                     
Integra Telecom, Inc.  Common Stock                 1,274,522    8,433,884    5,206,677    0.56%  C/E
Integra Telecom, Inc.  Warrants                 346,939    19,920    199,386    0.02%  C/E
V Telecom Investment S.C.A. (Luxembourg)  Common Shares                 1,393    3,236,256    3,742,115    0.41%  C/D/E/I
                          11,690,060    9,148,178    0.99%   
                                         
Total Equity Securities                         68,696,673    29,473,911    3.19%   
                                         
Total Investments                         921,592,377    894,669,124    96.82%   
                                         
Cash and Cash Equivalents                                        
Wells Fargo & Company  Overnight Repurchase Agreement Collateralized by Freddie Mac Note  Fixed  0.05%   -   7/1/2014             8,548,755    0.93%   
Union Bank of California  Commercial Paper  Fixed  0.10%   -   7/1/2014             16,000,000    1.73%   
Cash Denominated in Foreign Currencies                              258,660    0.03%   
Cash Held on Account at Various Institutions                              4,572,117    0.49%   
Cash and Cash Equivalents                              29,379,532    3.18%   
                                         
Total Cash and Investments                             $924,048,656    100.00%  H

 

Notes to Statement of Investments:

 

(A)Investments in bank debt generally are bought and sold among institutional investors in transactions not subject to registration under the Securities Act of 1933. Such transactions are generally subject to contractual restrictions, such as approval of the agent or borrower.

 

(B)Non-controlled affiliate – as defined under the Investment Company Act of 1940 (ownership of between 5% and 25% of the outstanding voting securities of this issuer). See Consolidated Schedule of Changes in Investments in Affiliates.

 

(C)Non-income producing security.

 

(D)Principal amount denominated in foreign currency. Amortized cost and fair value converted from foreign currency to US dollars. (See Note 2)

 

(E)Restricted security. (See Note 2)

 

(F)Controlled issuer – as defined under the Investment Company Act of 1940 (ownership of 25% or more of the outstanding voting securities of this issuer). Investment is not more than 50% owned nor deemed to be a significant subsidiary. See Consolidated Schedule of Changes in Investments in Affiliates.

 

(G)Investment has been segregated to collateralize certain unfunded commitments.

 

(H)All cash and investments, except those referenced in Notes G above, are pledged as collateral under certain debt as described in Note 4 to the Consolidated Financial Statements.

 

(I)Non-U.S. company or principal place of business outside the U.S. and as a result is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(J)Exempt from the definition of investment company under Section 3(c) of the Investment Company Act and as a result is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(K)Publicly traded company with a market capitalization greater than $250 million and as a result is not a qualifying asset under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying asset unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company's total assets.

 

(L)Negative balances relate to an unfunded commitment that was acquired at a discount.

 

LIBOR or EURIBOR resets monthly (M), quarterly (Q), or semiannually (S).

 

Aggregate acquisitions and aggregate dispositions of investments, other than government securities, totaled $278,982,081, and $155,421,221 respectively for the six months ended June 30, 2014. Aggregate acquisitions includes investment assets received as payment in kind. Aggregate dispositions includes principal paydowns on and maturities of debt investments. The total value of restricted securities and bank debt as of June 30, 2014 was $894,436,320, or 96.8% of total cash and investments of the Company.  

 

Options and Swaps at June 30, 2014 were as follows:  

 

Investment  Notional
Amount		   Fair Value 
         
Interest Rate Cap, 4%, expires 5/15/2016  $25,000,000   $1,855 
Euro/US Dollar Cross-Currency Basis Swap, Pay Euros/Receive USD, Expires 3/31/17  $4,289,019   $(208,862)

  

See accompanying notes.

 

7
 

 

 TCP Capital Corp.

 

 Consolidated Statement of Investments

 

December 31, 2013

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (A)                                       
Accounting, Tax Preparation, Bookkeeping, and Payroll Services                                 
Expert Global Solutions, LLC  First Lien Term Loan  LIBOR (Q)  7.25%   1.25%  4/3/2018  $699,754   $701,280   $703,691    0.09%   
Expert Global Solutions, LLC  Second Lien Term Loan  LIBOR (Q)  11.00%   1.50%  10/3/2018  $7,434,877    7,228,004    7,382,833    0.94%   
                         7,929,284    8,086,524    1.03%   
Advertising, Public Relations, and Related Services                                    
Doubleplay III Limited (United Kingdom)  First Lien Facility A1
Term Loan		  EURIBOR (Q)  6.25%   1.25%  3/18/2018  €13,165,705    16,428,630    16,736,606    2.12%  D/J
                                        
Architectural, Engineering, and Related Services                                    
ESP Holdings, Inc.  Jr Unsecured Subordinated Promissory Notes  Fixed  6% Cash + 10% PIK   -  12/31/2019  $7,959,369    7,959,369    7,959,369    1.01%  B/E
                                        
Artificial Synthetic Fibers and Filaments Manufacturing                              
AGY Holding Corp.  Sr Secured Term Loan  Fixed  12.00%      9/15/2016  $2,056,927    2,056,927    2,056,927    0.26%  B
AGY Holding Corporation  Second Lien Term Loan  Fixed  11.00%   -  11/15/2016  $9,268,000    7,586,317    9,268,000    1.17%  B/E
                         9,643,244    11,324,927    1.43%   
Beverage Manufacturing                                       
Carolina Beverage Group, LLC  Secured Notes  Fixed  10.625%   -  8/1/2018  $7,780,000    7,780,000    8,207,900    1.04%  E
                                        
Business Support Services                                       
STG-Fairway Acquisitions, Inc.  Second Lien Term Loan  LIBOR (Q)  9.25%   1.25%  8/28/2019  $14,643,455    13,944,123    14,929,002    1.89%   
                                        
Chemical Manufacturing                                       
Archroma  Term Loan B  LIBOR (Q)  8.25%   1.25%  9/30/2018  $17,456,250    17,107,125    17,401,699    2.20%   
                                        
Communications Equipment Manufacturing                                    
Globecomm Systems Inc.  First Lien Term Loan  LIBOR (Q)  7.625%   1.25%  12/11/2018  $15,000,000    14,850,000    15,097,500    1.91%  B
                                        
Computer Equipment Manufacturing                                    
ELO Touch Solutions, Inc.  Second Lien Term Loan  LIBOR (Q)  10.50%   1.50%  12/1/2018  $10,000,000    9,666,672    9,100,000    1.15%   
                                        
Converted Paper Products Manufacturing                                    
Ranpak Corp.  Second Lien Term Loan  LIBOR (Q)  7.25%   1.25%  4/23/2020  $3,469,573    3,434,877    3,573,660    0.45%   
                                        
Computer Systems Design and Related Services                                    
Blue Coat Systems  First Lien Revolver  LIBOR (Q)  3.50%   1.00%  5/31/2018  $4,500,000    3,540,000    4,060,800    0.51%  L
Blue Coat Systems  Second Lien Term Loan  LIBOR (Q)  8.50%   1.00%  6/28/2020  $15,000,000    14,878,125    15,300,000    1.94%   
OnX Enterprise Solutions, Ltd.  First Lien Term Loan  LIBOR (Q)  7.00%   -  9/3/2018  $10,640,000    10,483,300    10,709,160    1.36%   
OnX USA, LLC  First Lien Term Loan  LIBOR (Q)  7.00%   -  9/3/2018  $5,320,000    5,244,790    5,354,580    0.68%   
Websense, Inc.  Second Lien Term Loan  LIBOR (Q)  7.25%   1.00%  12/27/2020  $7,200,000    7,164,000    7,218,000    0.91%   
                         41,310,215    42,642,540    5.40%   
Data Processing, Hosting, and Related Services                                    
The Telx Group, Inc.  Senior Unsecured Notes  Fixed  10% Cash  + 2% PIK   -  9/26/2019  $7,098,916    6,960,435    7,631,335    0.97%  E
                                        
Panda Sherman Power, LLC  First Lien Term Loan  LIBOR (Q)  7.50%   1.50%  9/14/2018  $11,070,172    10,932,474    11,402,277    1.44%   
Panda Temple Power II, LLC  First Lien Term Loan  LIBOR (Q)  6.00%   1.25%  4/3/2019  $5,892,970    5,834,041    6,069,759    0.77%   
                         16,766,515    17,472,036    2.21%   
Electrical Equipment and Component Manufacturing                                    
Palladium Energy, Inc.  First Lien Term Loan  LIBOR (Q)  9.00%   1.00%  12/26/2027  $16,500,317    16,225,541    16,426,066    2.08%   
                                        
Fabricated Metal Product Manufacturing                                    
Constellation Enterprises, LLC  First Lien Notes  Fixed  10.625%   -  2/1/2016  $12,500,000    12,322,875    10,875,000    1.38%  E/G
                                        
Financial Investment Activities                                       
Marsico Capital Management  First Lien Term Loan  LIBOR (M)  5.00%   -  12/31/2022  $10,637,623    13,394,183    3,882,732    0.49%  K
                                        
Freight Transportation Arrangement                                    
Livingston International, Inc. (Canada)  Second Lien Term Loan  LIBOR (Q)  7.75%   1.25%  4/18/2020  $3,665,217    3,597,620    3,756,848    0.48%  J
                                        
Full-Service Restaurants                                       
RM Holdco, LLC  Subordinated Convertible Term Loan  Fixed  1.12% PIK   -  3/21/2018  $5,164,796    5,164,796    2,197,621    0.28%  B
RM OpCo, LLC  Convertible First Lien Term Loan Tranche B-1  Fixed  12% Cash  + 7% PIK   -  3/21/2016  $1,370,199    1,339,883    1,370,199    0.17%  B
RM OpCo, LLC  First Lien Term Loan Tranche A  Fixed  11.00%   -  3/21/2016  $3,626,947    3,626,947    3,626,947    0.46%  B
RM OpCo, LLC  First Lien Term Loan Tranche B  Fixed  12% Cash  + 7% PIK   -  3/21/2016  $6,825,328    6,825,328    6,825,328    0.86%  B
RM OpCo, LLC  First Lien Term Loan Tranche B-1  Fixed  12% Cash  + 7% PIK   -  3/21/2016  $2,150,088    2,109,019    2,150,088    0.27%  B
                         19,065,973    16,170,183    2.04%   

 

8
 

 

TCP Capital Corp.

 

Consolidated Statement of Investments (Continued)

 

December 31, 2013

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (continued)                                       
Gaming Industries                                       
AP Gaming I, LLC  First Lien Term Loan B  LIBOR (Q)  8.25%   1.00%  12/20/2020  $15,000,000   $14,550,000   $14,737,500    1.87%   
                                        
Grocery Stores                                       
Bashas, Inc.  First Lien FILO Term Loan  LIBOR (M)  9.35%   1.50%  12/28/2015  $14,843,788    14,802,168    15,066,445    1.91%   
                                        
Inland Water Transportation                                       
US Shipping Corp  First Lien Term Loan B  LIBOR (Q)  7.75%   1.25%  4/30/2018  $12,603,333    12,477,300    12,965,679    1.64%   
                                        
Insurance Related Activities                                       
Confie Seguros Holding II Co.  Second Lien Term Loan  LIBOR (Q)  9.00%   1.25%  5/8/2019  $6,341,809    6,245,733    6,391,370    0.81%   
                                        
Merchant Wholesalers                                       
Envision Acquisition Company, LLC  Second Lien Term Loan  LIBOR (Q)  8.75%   1.00%  11/4/2021  $9,079,011    8,897,430    9,192,498    1.16%   
                                        
Metal Ore Mining                                       
St Barbara Ltd. (Australia)  First Priority Senior Secured Notes  Fixed  8.875%   -  4/15/2018  $7,359,000    7,326,651    6,144,765    0.78%  E
                                        
Motion Picture and Video Industries                                       
CORE Entertainment, Inc.  First Lien Term Loan  Fixed  9.00%   -  6/21/2017  $9,462,231    9,381,116    8,610,631    1.09%   
CORE Entertainment, Inc.  Second Lien Term Loan  Fixed  13.50%   -  6/21/2018  $7,569,785    7,502,054    6,858,225    0.88%   
                         16,883,170    15,468,856    1.97%   
Newspaper, Periodical, Book, and Directory Publishers                                 
Hanley-Wood, LLC  First Lien FILO Term Loan  LIBOR (Q)  6.75%   1.25%  7/15/2018  $16,707,600    16,707,600    16,699,246    2.13%   
MediMedia USA, Inc.  First Lien Revolver  LIBOR (M)  6.75%   -  5/20/2018  $4,960,000    3,797,500    4,523,908    0.57%   
MediMedia USA, Inc.  First Lien Term Loan  LIBOR (M)  6.75%   1.25%  11/20/2018  $9,701,250    9,433,029    9,458,719    1.20%   
                         29,938,129    30,681,873    3.90%   
Nondepository Credit Intermediation                                    
Caribbean Financial Group (Cayman Islands)  Senior Secured Notes  Fixed  11.50%   -  11/15/2019  $10,000,000    9,824,072    10,700,000    1.35%  E
Trade Finance Funding I, Ltd. (Cayman Islands)  Secured Class B Notes  Fixed  10.75%   -  11/13/2018  $15,000,000    15,000,000    14,962,500    1.90%  E/J
                         24,824,072    25,662,500    3.25%   
Nonresidential Building Construction                                    
NCM Group Holdings, LLC  First Lien Term Loan  LIBOR (Q)  11.50%   1.00%  8/29/2018  $10,000,000    9,620,619    9,875,000    1.25%   
                                        
Nonscheduled Air Transportation                                       
One Sky Flight, LLC  Second Lien Term Loan  Fixed  12% Cash
 + 3% PIK		   -  5/4/2019  $18,200,000    16,929,086    17,708,600    2.24%   
                                        
Oil and Gas Extraction                                       
Willbros Group, Inc.  First Lien Term Loan  LIBOR (Q)  9.75%   1.25%  8/7/2019  $15,426,118    15,051,713    15,657,510    1.98%   
                                        
Other Telecommunications                                       
Securus Technologies, Inc.  Second Lien Term Loan  LIBOR (Q)  7.75%   1.25%  4/30/2021  $14,000,000    13,860,000    13,925,660    1.76%   
                                        
Petroleum and Coal Products Manufacturing                                    
Boomerang Tube, LLC  Second Lien Term Loan  LIBOR (Q)  9.50%   1.50%  10/11/2017  $7,749,023    7,563,978    7,477,807    0.95%   
                                        
Plastics Products Manufacturing                                       
Iracore International, Inc.  Senior Secured Notes  Fixed  9.50%   -  6/1/2018  $13,600,000    13,600,000    14,426,622    1.83%  E
                                        
Professional, Scientific, and Technical Services                                    
Connolly, LLC  Second Lien Term Loan  LIBOR (Q)  9.25%   1.25%  7/15/2019  $12,000,000    11,829,534    12,270,000    1.55%   
ConvergeOne Holdings  First Lien Term Loan  LIBOR (Q)  8.00%   1.25%  5/8/2019  $12,654,643    12,464,823    12,570,236    1.59%   
                         24,294,357    24,840,236    3.14%   
Promoters of Performing Arts, Sports, and Similar Events                                    
Stadium Management Group  Second Lien Term Loan  LIBOR (M)  9.50%   1.25%  12/7/2018  $11,000,000    10,817,390    11,055,000    1.40%   
                                        
Radio and Television Broadcasting                                       
SiTV, Inc.  First Lien Term Loan  LIBOR (Q)  6% Cash
 + 4% PIK		   2.00%  8/3/2016  $6,995,124    6,648,634    6,774,778    0.86%   
The Tennis Channel, Inc.  First Lien Term Loan  LIBOR (Q)  8.50%   -  5/29/2017  $17,589,459    17,134,705    17,615,843    2.23%   
                         23,783,339    24,390,621    3.09%   
Retail                                       
Kenneth Cole Productions, Inc.  First Lien FILO Term Loan  LIBOR (M)  10.40%   1.00%  9/25/2017  $11,272,727    11,051,496    11,329,090    1.44%   
Shopzilla, Inc.  Second Lien Term Loan  LIBOR (Q)  9.50%   -  3/31/2016  $6,710,057    6,525,027    6,683,216    0.85%   
                         17,576,523    18,012,306    2.29%   
Satellite Telecommunications                                       
Avanti Communications Group, PLC (United Kingdom)  Senior Secured Notes  Fixed  10.00%   -  10/1/2019  $9,914,000    9,914,000    10,335,345    1.31%  E/H/J

 

9
 

 

TCP Capital Corp.

 

 Consolidated Statement of Investments (Continued)

 

December 31, 2013

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Principal   Cost   Value   Portfolio   Notes
                                   
Debt Investments (continued)                                       
Scheduled Air Transportation                                       
Aircraft Leased to Delta Air Lines, Inc.                                    
N913DL  Aircraft Secured Mortgage  Fixed  8.00%   -  3/15/2017  $289,048   $289,048   $296,820    0.04%  F
N918DL  Aircraft Secured Mortgage  Fixed  8.00%   -  8/15/2018  $388,001    388,001    397,290    0.05%  F
N954DL  Aircraft Secured Mortgage  Fixed  8.00%   -  3/20/2019  $514,375    514,375    524,620    0.07%  F
N955DL  Aircraft Secured Mortgage  Fixed  8.00%   -  6/20/2019  $533,283    533,283    543,320    0.07%  F
N956DL  Aircraft Secured Mortgage  Fixed  8.00%   -  5/20/2019  $532,275    532,275    542,640    0.07%  F
N957DL  Aircraft Secured Mortgage  Fixed  8.00%   -  6/20/2019  $537,947    537,947    548,250    0.07%  F
N959DL  Aircraft Secured Mortgage  Fixed  8.00%   -  7/20/2019  $543,573    543,573    553,520    0.07%  F
N960DL  Aircraft Secured Mortgage  Fixed  8.00%   -  10/20/2019  $564,855    564,855    574,430    0.07%  F
N961DL  Aircraft Secured Mortgage  Fixed  8.00%   -  8/20/2019  $558,427    558,427    568,310    0.07%  F
N976DL  Aircraft Secured Mortgage  Fixed  8.00%   -  2/15/2018  $394,360    394,360    404,600    0.05%  F
Aircraft Leased to United Airlines, Inc.
N510UA  Aircraft Secured Mortgage  Fixed  20.00%   -  10/26/2016  $328,848    328,848    404,605    0.05%  B
N512UA  Aircraft Secured Mortgage  Fixed  20.00%   -  10/26/2016  $334,535    334,535    414,010    0.05%  B
N536UA  Aircraft Secured Mortgage  Fixed  16.00%   -  9/29/2014  $108,845    108,845    114,000    0.01%  B
N545UA  Aircraft Secured Mortgage  Fixed  16.00%   -  8/29/2015  $249,695    249,695    275,405    0.03%  B
N585UA  Aircraft Secured Mortgage  Fixed  20.00%   -  10/25/2016  $392,794    392,794    486,115    0.06%  B
N659UA  Aircraft Secured Mortgage  Fixed  12.00%   -  2/28/2016  $2,708,150    2,708,150    2,948,986    0.37%  F
N661UA  Aircraft Secured Mortgage  Fixed  12.00%   -  5/4/2016  $2,880,186    2,880,186    3,171,026    0.40%  F
                         11,859,197    12,767,947    1.60%   
Scientific Research and Development Services                                    
BPA Laboratories, Inc.  Senior Secured Notes  Fixed  12.25%   -  4/1/2017  $17,200,000    16,536,295    17,630,000    2.23%  E
                                        
Semiconductor and Other Electronic Component Manufacturing                              
Isola USA Corporation  Senior Secured Term Loan B  LIBOR (Q)  8.25%   1.00%  11/29/2018  $14,583,333    14,366,560    14,729,167    1.87%   
                                        
Software Publishers                                       
BlackLine Systems, Inc.  First Lien Term Loan  LIBOR (Q)  0.4% Cash
 + 7.6% PIK		   1.50%  9/25/2018  $12,579,747    11,811,044    12,183,485    1.56%   
Coreone Technologies, LLC  First Lien Term Loan  LIBOR (Q)  3.75% Cash
 +5% PIK		   1.00%  9/14/2018  $13,556,801    13,243,533    13,455,125    1.72%   
Deltek, Inc.  Second Lien Term Loan  LIBOR (Q)  8.75%   1.25%  10/10/2019  $15,000,000    14,805,253    15,300,000    1.94%   
Edmentum, Inc.  Second Lien Term Loan  LIBOR (Q)  9.75%   1.50%  5/17/2019  $15,000,000    14,748,486    15,112,500    1.91%   
                         54,608,316    56,051,110    7.13%   
                                        
Specialty Hospitals                                       
UBC Healthcare Analytics, Inc.  First Lien Term Loan  LIBOR (Q)  9.00%   1.00%  7/1/2018  $5,526,021    5,498,391    5,559,177    0.70%   
Vantage Oncology, LLC  Senior Secured Notes  Fixed  9.50%   -  6/15/2017  $5,000,000    5,000,000    5,137,500    0.65%  E
                         10,498,391    10,696,677    1.35%   
Structured Note Funds                                       
Magnolia Finance V plc (Cayman Islands)  Asset-Backed Credit Linked Notes  Fixed  13.125%   -  8/2/2021  $15,000,000    15,000,000    15,000,000    1.90%  E/J
                                        
Textile Furnishings Mills                                       
Lexmark Carpet Mills, Inc.  First Lien Term Loan  LIBOR (Q)  10.00%   1.00%  9/30/2018  $16,351,467    15,942,680    16,392,346    2.08%   
                                        
Wired Telecommunications Carriers                                       
Integra Telecom Holdings, Inc.  Second Lien Term Loan  LIBOR (Q)  8.50%   1.25%  2/22/2020  $15,000,000    14,701,027    15,459,375    1.96%   
                                        
Wireless Telecommunications Carriers                                    
Alpheus Communications, LLC  First Lien Delayed FILO Term Loan  LIBOR (Q)  6.92%   1.00%  5/31/2018  $–    (11,183)   (8,437)   -   M
Alpheus Communications, LLC  First Lien FILO Term Loan  LIBOR (Q)  6.92%   1.00%  5/31/2018  $8,248,124    8,166,127    8,186,263    1.04%   
Globalive Wireless Management Corp.
(Canada)		  First Lien Term Loan  LIBOR (Q)  10.90%   -  4/30/2014  $3,037,292    2,933,872    3,067,665    0.39%  J
Gogo, LLC  First Lien Term Loan  LIBOR (Q)  9.75%   1.50%  6/21/2017  $19,587,428    18,707,700    21,252,360    2.69%   
                         29,796,516    32,497,851    4.12%   
                                        
Total Debt Investments                        720,651,321    726,514,593    92.05%   

 

10
 

 

TCP Capital Corp.

 

Consolidated Statement of Investments (Continued)

 

December 31, 2013

 

Showing Percentage of Total Cash and Investments of the Company

 

                              % of    
Issuer  Instrument  Ref  Spread  Floor  Maturity  Shares   Cost   Value   Portfolio   Notes
                                   
Equity Securities                                       
Architectural, Engineering, and Related Services                                    
ESP Holdings, Inc.  Cumulative Preffered 15%               20,297   $2,249,930   $3,947,862    0.51%  B/C/E
ESP Holdings, Inc., Common Stock  Common Stock                88,670    9,311,782    2,856,346    0.36%  B/C/E
                         11,561,712    6,804,208    0.87%   
                                        
Business Support Services                                       
STG-Fairway Holdings  Class A Units                841,479    1,174,225    1,722,508    0.22%  C/E
Wasserstein Cosmos Co-Invest, L.P.  Limited Partnership Units                5,000,000    5,000,000    5,000,000    0.64%  B/C/E
                         6,174,225    6,722,508    0.86%   
Data Processing, Hosting, and Related Services                                    
Anacomp, Inc.  Class A Common Stock                1,255,527    26,711,048    1,004,422    0.13%  B/C/E
                                        
Depository Credit Intermediation                                       
Doral Financial Corporation  Common Stock                53,890    11,699,417    843,913    0.11%  C/L
                                        
Financial Investment Activities                                       
Marsico Holdings, LLC  Common Interest Units                168,698    172,694    4,302    -   C/E/K
                                        
Full-Service Restaurants                                       
RM Holdco, LLC  Membership Units                13,161,000    2,010,777    -    -   B/C/E
                                        
Machine Shops; Turned Product; and Screw, Nut, and Bolt Manufacturing                                 
Precision Holdings, LLC  Class C Membership Interests                33    -    41,645    0.01%  C/E
                                        
Nonmetallic Mineral Mining and Quarrying                                    
EPMC HoldCo, LLC  Membership Units                1,312,720    -    1,562,137    0.20%  B/E
                                        
Nonscheduled Air Transportation                                       
Flight Options Holdings I, Inc.  Warrants to Purchase Common Stock                1,843    1,274,000    1,268,904    0.16%  C/E
                                        
Radio and Television Broadcasting                                       
SiTV, Inc.  Warrants to Purchase Common Stock                233,470    300,322    354,874    0.04%  C/E
                                        
Retail                                       
Shop Holding, LLC  Class A Unit                490,037    462,576    532,919    0.07%  C/E
Shop Holding, LLC  Warrants to Purchase Class A Unit                326,691    -    38,258    -   C/E
                         462,576    571,177    0.07%   
Scheduled Air Transportation                                       
Aircraft Leased to Delta Air Lines, Inc.
N913DL  Trust Beneficial Interests                727    97,376    125,970    0.02%  E/F
N918DL  Trust Beneficial Interests                623    109,938    142,970    0.02%  E/F
N954DL  Trust Beneficial Interests                591    133,027    68,000    0.01%  E/F
N955DL  Trust Beneficial Interests                576    133,868    113,560    0.01%  E/F
N956DL  Trust Beneficial Interests                580    133,907    108,800    0.01%  E/F
N957DL  Trust Beneficial Interests                576    134,785    109,650    0.01%  E/F
N959DL  Trust Beneficial Interests                573    135,658    110,500    0.01%  E/F
N960DL  Trust Beneficial Interests                563    139,173    109,650    0.01%  E/F
N961DL  Trust Beneficial Interests                570    138,350    103,870    0.01%  E/F
N976DL  Trust Beneficial Interests                654    113,413    103,033    0.01%  E/F
Aircraft Leased to United Airlines, Inc.
N510UA  Trust Beneficial Interests                54    197,409    465,625    0.06%  B/E
N512UA  Trust Beneficial Interests                53    193,046    458,277    0.06%  B/E
N536UA  Trust Beneficial Interests                81    396,289    656,766    0.08%  B/E
N545UA  Trust Beneficial Interests