Barings

Corporate Investors

 

 

 

 

 

 

Barings Corporate Investors

 

TO OUR SHAREHOLDERS

April 30, 2018

 

 

We are pleased to present the March 31, 2018 Quarterly Report of Barings Corporate Investors (the "Trust").

 

The Board of Trustees declared a quarterly dividend of $0.30 per share, payable on May 18, 2018 to shareholders of record on May 7, 2018. The Trust paid a $0.30 per share dividend for the preceding quarter. The Trust earned $0.31 per share of net investment income for the first quarter of 2018, compared to $0.32 per share, including $0.03 per share of non-recurring income, in the previous quarter.

 

During the first quarter, the net assets of the Trust increased to $304,788,145 or $15.26 per share compared to $303,527,308 or $15.22 per share on December 31, 2017. This translates into a 0.3% total return for the quarter, based on the change in the Trust's net assets assuming the reinvestment of all dividends. Longer term, the Trust returned 12.0%, 9.1%, 10.8%, 10.8%, and 13.3% for the 1, 3, 5, 10, and 25-year periods ended March 31, 2018, respectively, based on the change in the Trust's net assets assuming the reinvestment of all dividends.

 

The Trust's market price decreased 1.1% during the quarter, from $15.26 per share as of December 31, 2017 to $15.10 per share as of March 31, 2018. The Trust's market price of $15.10 per share equates to a 1.1% discount to the March 31, 2018 net asset value per share of $15.26. The Trust's average quarter-end premium for the 3, 5 and 10-year periods ended March 31, 2018 was 9.4%, 8.6% and 11.1%, respectively. U.S. small cap equity markets, as approximated by the Russell 2000 Index, decreased 0.1% for the quarter. U.S. high yield markets, as approximated by the Bloomberg Barclays U.S. Corporate High Yield Index, decreased 0.8% for the quarter.

 

The Trust closed five new private placement investments and three add-on investments to existing portfolio companies during the first quarter. The five new investments were in Clubessential LLC, Dohmen Life Science Services, MeTEOR Education LLC, New Mountain Learning, LLC and U.S. Retirement and Benefit Partners, Inc. The three add-on investments were in MES Partners, Inc., Polytex Holdings LLC and York Wall Holding Company. A brief description of these investments can be found in the Consolidated Schedule of Investments. The total amount invested by the Trust in these transactions was $16,197,988.

 

It was a good quarter for the Trust in terms of new investments. As noted above, the Trust closed five new investments and three add-on investments this quarter despite middle-market merger and acquisition activity getting off to a slower start in the first quarter of 2018. The expansion of the Trust's target investment criteria in late 2017 into a broader set of the middle market private debt market along with the expansion of the investment adviser's private debt platform have been key contributors to increasing the Trust's new investment volume. Overall, we believe market conditions remain extremely competitive, with purchase price and leverage multiples remaining at or near historical highs, and there continues to be a large supply of debt capital seeking middle-market investment opportunities. As always, we've continued to be selective in our investment choices and maintained our underwriting discipline.

 

The Trust's remaining portfolio remains in good condition. There were seven private debt investment exits during the quarter, five of which resulted in realized gains, while two long-time troubled investments (NetShape / Hawk and Church Services) resulted in realized losses. In addition, one company prepaid its subordinated debt held by the Trust. Several companies in which the Trust has outstanding investments are in the process of being sold and we are cautiously optimistic about realization activity from these investments over the next few quarters.

 

The Trust was able to maintain its $0.30 per share quarterly dividend in the first quarter. Notably, the Trust's recurring investment income was sufficient to cover this quarter's dividend. As discussed in prior reports, since 2013, recurring investment income alone has generally not been sufficient to fully fund the current dividend rate, principally due to the considerable reduction in the number of private debt securities in the portfolio resulting from the high level of exits and prepayment activity that occurred from 2013 through 2015, combined with generally lower investment returns available due to market and competitive dynamics over the past several years. As referenced above, the Trust's expansion of its target investment criteria in 2017 has allowed for increased private debt investment opportunities, and as a result, higher recurring investment income than the Trust has experienced over the past several years. The level of expected recurring investment income generated by the Trust in 2018, combined with the availability of earnings carry forwards and other non-recurring income, is expected to be sufficient to maintain the current dividend rate over the next several quarters. However, if recurring investment income fails to consistently equal the current dividend rate, there is the risk that the dividend may need to be reduced in the future.

 

(Continued)

 

 

---

1

Assets:
Investments (See Consolidated Schedule of Investments)
Corporate restricted securities at fair value (Cost - $230,739,392)		$	230,503,554
Corporate restricted securities at market value (Cost - $53,710,661)			53,793,491
Corporate public securities at market value (Cost - $36,470,313)			36,379,016
Total investments (Cost - $320,920,366)			320,676,061
Cash			14,623,104
Interest receivable			3,663,785
Receivable for investments sold			445,000
Other assets			28,138
Total assets			339,436,088
Liabilities:
Note payable			30,000,000
Payable for investments purchased			1,420,333
Deferred tax liability			983,173
Tax payable			965,329
Investment advisory fee payable			952,463
Interest payable			135,317
Accrued expenses			191,328
Total liabilities			34,647,943
Commitments and Contingencies (See Note 8)
Total net assets		$	304,788,145
Net Assets:
Common shares, par value $1.00 per share		$	19,975,363
Additional paid-in capital			110,208,390
Retained net realized gain on investments, prior years			155,501,181
Undistributed net investment gain			9,208,002
Accumulated net realized gain on investments			11,122,687
Net unrealized depreciation of investments			(1,227,478	)
Total net assets		$	304,788,145
Common shares issued and outstanding (28,054,782 authorized)			19,975,363
Net asset value per share		$	15.26

Investment Income:
Interest		$	7,500,413
Dividends			94,797
Other			9,287
Total investment income			7,604,497
Expenses:
Investment advisory fees			952,463
Interest			264,750
Trustees' fees and expenses			90,000
Professional fees			55,551
Reports to shareholders			28,500
Custodian fees			8,400
Other			31,300
Total expenses			1,430,964
Investment income - net			6,173,533
Net realized and unrealized loss on investments:
Net realized gain on investments before taxes			4,756,310
Income tax expense			(13,113	)
Net realized gain on investments after taxes			4,743,197
Net increase (decrease) in unrealized appreciation (depreciation) of investments before taxes			(10,746,054	)
Net (increase) decrease in deferred income tax expense			547,736
Net increase (decrease) in unrealized appreciation (depreciation) of investments after taxes			(10,198,318	)
Net loss on investments			(5,455,121	)
Net increase in net assets resulting from operations		$	718,412

Net increase in cash:
Cash flows from operating activities:
Purchases/Proceeds/Maturities from short-term portfolio securities, net		$	3,900,954
Purchases of portfolio securities			(27,717,453	)
Proceeds from disposition of portfolio securities			36,208,924
Interest, dividends and other income received			5,290,718
Interest expense paid			(264,750	)
Operating expenses paid			(1,139,435	)
Income taxes paid			(3,446,474	)
Net cash provided by operating activities			12,832,484
Cash flows from financing activities:
Cash dividends paid from net investment income			(5,981,959	)
Receipts for shares issued on reinvestment of dividends			542,425
Net cash used for financing activities			(5,439,534	)
Net increase in cash			7,392,950
Cash - beginning of year			7,230,154
Cash - end of period		$	14,623,104
Reconciliation of net increase in net assets to net cash provided by operating activities:
Net increase in net assets resulting from operations		$	718,412
Decrease in investments			15,823,091
Increase in interest receivable			(727,712	)
Increase in receivable for investments sold			(445,000	)
Increase in other assets			(2,322	)
Decrease in deferred tax liability			(547,736	)
Increase in payable for investments purchased			1,420,333
Increase in investment advisory fee payable			3,940
Decrease in tax payable			(3,433,361	)
Increase in accrued expenses			22,839
Total adjustments to net assets from operations			12,114,072
Net cash provided by operating activities		$	12,832,484

		For the three months ended 3/31/2018 (Unaudited)				For the year ended 12/31/2017
Increase in net assets:
Operations:
Investment income - net		$	6,173,533			$	25,253,347
Net realized gain on investments after taxes			4,743,197				5,710,317
Net change in unrealized (depreciation) / appreciation of investments after taxes			(10,198,318	)			12,615,454
Net increase in net assets resulting from operations			718,412				43,579,118
Increase from common shares issued on reinvestment of dividends
Common shares issued (2018 - 35,499; 2017 - 149,457)			542,425				2,240,339
Dividends to shareholders from:
Net investment income (2018 - $0.00 per share; 2017 - $1.20 per share)			—				(23,863,040	)
Total increase in net assets			1,260,837				21,956,417
Net assets, beginning of period/year			303,527,308				281,570,891
Net assets, end of period/year (including undistributed net investment income of $9,208,002 and $3,034,469, respectively)		$	304,788,145			$	303,527,308

		For the three months ended 03/31/2018 (Unaudited)				For the years ended December 31,
						2017				2016				2015				2014
Net asset value:
Beginning of period/year		$	15.22			$	14.23			$	14.03			$	14.34			$	13.85
Net investment income (a)			0.31				1.27				1.12				1.04				1.23
Net realized and unrealized gain (loss) on investments			(0.27	)			0.92				0.26				(0.16	)			0.45
Total from investment operations			0.04				2.19				1.38				0.88				1.68
Dividends from net investment income to common  shareholders			—				(1.20	)			(1.20	)			(1.20	)			(1.20	)
Dividends from net realized gain on investments to common  shareholders			—				—				—				—				—
(Decrease)/Increase from dividends reinvested			0.00				0.00				0.02				0.01				0.01
Total dividends			—				(1.20	)			(1.18	)			(1.19	)			(1.19	)
Net asset value: End of period/year		$	15.26			$	15.22			$	14.23			$	14.03			$	14.34
Per share market value:
End of period/year		$	15.10			$	15.26			$	15.48			$	17.25			$	15.89
Total investment return
Net asset value (b)			0.26%				15.72%				10.13%				6.20%				13.78%
Market value (b)			(1.05%	)			6.86%				(3.49%	)			17.01%				16.53%
Net assets (in millions):
End of period/year		$	304.79			$	303.53			$	281.57			$	275.92			$	280.13
Ratio of total expenses to average net assets			1.92%	(c)			3.63%				2.92%				2.56%				3.66%
Ratio of operating expenses to average net assets			1.55%	(c)			1.59%				1.56%				1.67%				1.65%
Ratio of interest expense to average net assets			0.35%	(c)			0.51%				0.56%				0.55%				0.57%
Ratio of income tax expense to average net assets			0.02%	(c)			1.53%				0.80%				0.34%				1.44%
Ratio of net investment income to average net assets			8.20%	(c)			8.49%				7.80%				7.12%				8.57%
Portfolio turnover			9%				25%				29%				29%				38%

Senior borrowings:
Total principal amount (in millions)		$	30			$	30			$	30			$	30			$	30
Asset coverage per $1,000 of indebtedness		$	11,160			$	11,118			$	10,386			$	10,197			$	10,338

Corporate Restricted Securities - 93.28%: (A)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Private Placement Investments - 75.63%: (C)
1A Smart Start, Inc.
A designer, distributor and lessor of ignition interlock devices ("IIDs"). IIDs are sophisticated breathalyzers wired to a vehicle's ignition system.
10.13% Second Lien Term Loan due 12/22/2022 (LIBOR + 8.250%)		$	3,500,000			12/21/17				$	3,434,110			$	3,442,483
ABC Industries, Inc.
A manufacturer of mine and tunneling ventilation products in the U.S.
13% Senior Subordinated Note due 07/31/2019		$	262,403			08/01/12					254,723				262,403
Preferred Stock Series A (B)	300,000 shs.					08/01/12					300,000				541,831
Warrant, exercisable until 2022, to purchase common stock at $.02 per share (B)	53,794 shs.					08/01/12					101,870				90,737
											656,593				894,971
Advanced Manufacturing Enterprises LLC
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
Limited Liability Company Unit (B)	4,669 uts.						*				498,983				58,775
* 12/07/12, 07/11/13 and 06/30/15.
AFC - Dell Holding Corporation
A distributor and provider of inventory management services for "C-Parts" used by OEMs in their manufacturing and production facilities.
12.5% (1% PIK) Senior Subordinated Note due 09/27/2020		$	2,472,211			03/27/15					2,446,374				2,472,211
Preferred Stock (B)	2,276 shs.					03/27/15					227,558				293,183
Common Stock (B)	703 shs.					03/27/15					703				—
											2,674,635				2,765,394
Airxcel Holdings
A leading manufacturer of a broad range of climate control solutions, including air-conditioners, heat pumps, cooking appliances, furnaces, powered vents, and water heaters.
Limited Liability Company Unit	583 uts.					11/18/14					583,000				1,828,452
AM Conservation Holding Corp
A supplier of energy efficiency ("EE") products, including lighting, shower heads and aerators, and weatherization products such as door seals and weather stripping.
11.5% (1.5% PIK) Senior Subordinated Note due 04/30/2023		$	3,181,818			10/31/16					3,129,044				3,160,105
11.5% (1.25% PIK) Senior Subordinated Note due 04/30/2023		$	418,049			10/06/17					410,226				414,251
Common Stock (B)	318,182 shs.					10/31/16					318,182				374,298
											3,857,452				3,948,654

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
AMS Holding LLC
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
Limited Liability Company Unit Class A Preferred (B) (F)		273 uts.				10/04/12				$	272,727			$	558,060
API Technologies Corp.
A designer, developer and manufacturer of electronic systems, subsystems, modules and secure communications for technically demanding defense, aerospace and commercial applications in the U.S. and internationally.
12% (1% PIK) Senior Subordinated Note due 04/22/2023		$	2,854,738			04/22/16					2,844,523				2,883,285
Limited Liability Company Unit (B)		0.90% int.				04/20/16					700,000				1,148,000
											3,544,523				4,031,285
ARI Holding Corporation
A leading national supplier of products used primarily by specialty contractors.
11.5% (0.5% PIK) Senior Subordinated Note due 02/01/2020		$	3,447,692				*				3,425,853				3,447,692
Limited Partnership Interest		1,048 uts.				08/01/14					1,047,900				1,968,061
* 05/21/13 and 08/01/14.											4,473,753				5,415,753
ASC Holdings, Inc.
A manufacturer of capital equipment used by corrugated box manufacturers.
13% (1% PIK) Senior Subordinated Note due 05/18/2021		$	1,538,294			11/19/15					1,518,578				1,476,958
Limited Liability Company Unit (B)		225,300 uts.				11/18/15					225,300				98,456
											1,743,878				1,575,414
Aurora Parts & Accessories LLC
A distributor of aftermarket over-the-road semi-trailer parts and accessories sold to customers across North America.
11% Senior Subordinated Note due 02/17/2022		$	3,074,700			08/17/15					3,033,969				2,994,180
Preferred Stock (B)		425 shs.				08/17/15					424,875				260,496
Common Stock (B)		425 shs.				08/17/15					425				—
											3,459,269				3,254,676
Avantech Testing Services LLC
A manufacturer of custom Non-Destructive Testing ("NDT") systems and provider of NDT and inspections services primarily to the oil country tubular goods market.
15% (3.75% PIK) Senior Subordinated Note due 03/21/2021 (D)		$	13,750			07/31/14					13,493				—
Limited Liability Company Unit (B) (F)		92,327 uts.					*				—				—
Limited Liability Company Unit Class C Preferred (B) (F)		158,988 uts.				09/29/17					983,201				—
* 07/31/14 and 10/14/15.											996,694				—

Corporate Restricted Securities: (A)  (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
BCC Software, Inc.
A provider of software and data solutions which enhance mail processing to help direct mail marketers realize discounts from the U.S. Postal Service, avoid penalties associated with mailing errors, and improve the accuracy and efficiency of marketing campaigns.
12% (1% PIK) Senior Subordinated Note due 04/11/2023		$	3,041,254				10/11/17			$	2,984,473			$	3,005,167
Preferred Stock Series A (B)		47 shs.					10/11/17				471,481				471,500
Common Stock Class A (B)		1,492 shs.					10/11/17				1,492				7,015
											3,457,446				3,483,682
BEI Precision Systems & Space Company, Inc.
A provider of advanced design, manufacturing, and testing for custom optical encoder-based positioning systems, precision accelerometers, and micro scanners.
12% (1% PIK) Senior Subordinated Note due 04/28/2024		$	2,967,194				04/28/17				2,913,594				2,960,864
Limited Liability Company Unit (B)		5,600 uts.					04/28/17				560,000				327,030
											3,473,594				3,287,894
Blue Wave Products, Inc.
A distributor of pool supplies.
10% Senior Secured Term Note due 09/30/2018		$	89,362				10/12/12				89,173				89,362
13% (1% PIK) Senior Subordinated Note due 09/30/2019		$	755,053				10/12/12				738,934				755,053
Common Stock (B)		114,894 shs.					10/12/12				114,894				832,242
Warrant, exercisable until 2022, to purchase common stock at $.01 per share (B)		45,486 shs.					10/12/12				45,486				329,481
											988,487				2,006,138
BlueSpire Holding, Inc.
A marketing services firm that integrates strategy, technology, and content to deliver customized marketing solutions for clients in the senior living, financial services and healthcare end markets.
12.5% (1.5% PIK) Senior Subordinated Note due 06/30/2021 (D)		$	3,217,730				06/30/15				3,167,754				—
Common Stock (B)		2,876 shs.					06/30/15				318,200				—
											3,485,954				—

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
CHG Alternative Education Holding Company
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
13.5% (1.5% PIK) Senior Subordinated Note due 06/19/2020		$	2,384,359			01/19/11				$	2,367,136			$	2,384,359
14% (2% PIK) Senior Subordinated Note due 06/19/2020		$	630,732			08/03/12					626,970				630,732
Common Stock (B)		1,125 shs.				01/19/11					112,500				112,965
Warrant, exercisable until 2021, to purchase common stock at $.01 per share (B)		884 shs.				01/19/11					87,750				88,797
											3,194,356				3,216,853
Clarion Brands Holding Corp.
A portfolio of six over-the-counter (OTC) pharmaceutical brands whose products are used to treat tinnitus or ringing of the ear, excessive sweating, urinary tract infections, muscle pain, and skin conditions.
12.5% (1.5% PIK) Senior Subordinated Note due 04/01/2021		$	4,183,088.13				*				4,132,968				4,185,553
Limited Liability Company Unit (B)		3,759 uts.				07/18/16					384,020				368,184
* 10/01/14 and 07/18/16.											4,516,988				4,553,737
Clough, Harbour and Associates
An engineering service firm that is located in Albany, NY.
Preferred Stock (B)		277 shs.				12/02/08					276,900				2,476,430
Clubessential LLC
A leading SaaS platform for private clubs and resorts.
7% (5% PIK) Senior Subordinated Note due 01/12/2024		$	3,535,972			01/16/18					3,467,505				3,475,878
Compass Chemical International LLC
A manufacturer and supplier of standard and specialty formulated chemicals, primarily phosphoric acid derivatives called phosphonates.
Limited Liability Company Unit (B) (F)		467 uts.				03/04/15					298,900				449,679
CORA Health Services, Inc.
A provider of outpatient rehabilitation therapy services.
12.75% (1.75% PIK) Senior Subordinated Note due 06/30/2023		$	1,586,276			06/30/16					1,561,041				1,618,001
Preferred Stock Series A (B)		1,538 shs.				06/30/16					146,154				181,724
Common Stock Class A (B)		7,692 shs.				06/30/16					7,692				48,547
											1,714,887				1,848,272

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
CTM Holding, Inc.
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
15% (3% PIK) Senior Subordinated Note due 11/22/2019		$	2,692,500			11/22/13				$	2,675,058			$	2,692,500
Common Stock (B)		180 shs.					*				1,028,568				1,165,004
* 11/22/13 and 09/16/16.											3,703,626				3,857,504
Del Real LLC
A manufacturer and distributor of fully-prepared fresh refrigerated Hispanic entrees as well as side dishes that are typically sold on a heat-and-serve basis at retail grocers.
11% Senior Subordinated Note due 04/06/2023		$	2,882,353			10/07/16					2,834,438				2,848,482
Limited Liability Company Unit (B) (F)		617,647 uts.				10/07/16					617,647				685,588
											3,452,085				3,534,070
Dohmen Life Science Services
A provider of drug commercialization services for pharmaceutical and biotech companies, beginning in the late clinical trial phases.
10.40% Second Lien Term Loan due 03/12/2026 (LIBOR + 8.250%)		$	3,500,000			03/09/18					2,785,151				2,828,636
DPL Holding Corporation
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
14% (2% PIK) Senior Subordinated Note due 11/04/2020		$	3,454,589			05/04/12					3,433,906				3,452,327
Preferred Stock (B)		61 shs.				05/04/12					605,841				600,721
Common Stock (B)		61 shs.				05/04/12					67,316				—
											4,107,063				4,053,048
Dunn Paper
A provider of specialty paper for niche product applications.
10.63% Second Lien Term Loan due 08/26/2023 (LIBOR + 8.750%)		$	3,500,000			09/28/16					3,444,910				3,482,500
Eagle Family Foods, Inc.
A producer of low-cost branded and private label canned milk.
11.35% Last Out Term Loan due 12/31/2021 (LIBOR + 9.050%)		$	3,500,000			12/22/15					3,467,187				3,489,093
11.35% Second Last Out Term Loan due 12/31/2021 (LIBOR + 9.050%)		$	359,951			09/07/17					356,814				358,829
											3,824,001				3,847,922

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
ECG Consulting Group
A healthcare management consulting company who provides strategic, financial, operational, and technology related consulting services to healthcare providers.
11.75% (0.75% PIK) Senior Subordinated Note due 11/21/2020		$	2,691,895				11/21/14			$	2,660,241			$	2,691,894
Limited Liability Company Unit (B) (F)		467 uts.					11/19/14				145,833				356,325
											2,806,074				3,048,219
Elite Sportswear Holding, LLC
A designer and manufacturer of gymnastics, competitive cheerleading and swimwear apparel in the U.S. and internationally.
11.5% (1% PIK) Senior Subordinated Note due 10/13/2021		$	3,223,328				10/14/16				3,180,824				2,917,788
Limited Liability Company Unit (B) (F)		204 uts.					10/14/16				324,074				138,618
											3,504,898				3,056,406
English Color & Supply LLC
A distributor of aftermarket automotive paint and related products to collision repair shops, auto dealerships and fleet customers through a network of stores in the Southern U.S.
11.5% (0.5% PIK) Senior Subordinated Note due 12/31/2023		$	2,703,196				06/30/17				2,653,947				2,674,122
Limited Liability Company Unit (B) (F)		806,916 uts.					06/30/17				806,916				871,469
											3,460,863				3,545,591
ERG Holding Company LLC
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
13.5% (1.5% PIK) Senior Subordinated Note due 10/04/2019		$	2,003,942				04/04/14				1,990,601				2,003,942
14% (2% PIK) Senior Subordinated Note due 10/04/2019		$	529,435				07/01/16				524,108				534,729
Common Stock (B)		0.64% int.					04/04/14				157,314				389,409
											2,672,023				2,928,080
F F C Holding Corporation
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
Limited Liability Company Unit Preferred (B)		512 uts.					09/27/10				175,035				267,578
Limited Liability Company Unit Common (B)		512 uts.					09/27/10				51,220				492,598
											226,255				760,176

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
F G I Equity LLC
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
Limited Liability Company Unit Preferred (B)		483,355 uts.					04/15/14			$	—			$	483,355
Limited Liability Company Unit Class B-1 (B)		394,737 uts.					12/15/10				394,737				2,340,183
Limited Liability Company Unit Class B-2 (B)		49,488 uts.					12/15/10				49,488				293,388
Limited Liability Company Unit Class B-3 (B)		39,130 uts.					08/30/12				90,000				242,157
Limited Liability Company Unit Class C (B)		9,449 uts.					12/20/10				96,056				382,178
											630,281				3,741,261
GD Dental Services LLC
A provider of convenient "onestop" general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
Limited Liability Company Unit Preferred (B)		182 uts.					10/05/12				182,209				10,537
Limited Liability Company Unit Common (B)		1,840 uts.					10/05/12				1,840				—
											184,049				10,537
gloProfessional Holdings, Inc.
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
14% (2% PIK) Senior Subordinated Note due 03/27/2019		$	3,001,985				03/27/13				2,989,615				2,701,787
Common Stock (B)		2,835 shs.					03/27/13				283,465				52,247
											3,273,080				2,754,034
Glynlyon Holding Companies, Inc.
A technology-enabled curriculum provider of K-12 and support services predominantly to small and medium public school districts.
Common Stock (B)		299 shs.					01/15/16				209,402				467,113
GlynnDevins Acquisition Corporation
A marketing communications agency that services senior living facilities.
Preferred Stock Series A (B)		695 shs.					06/19/15				143,414				174,429
Common Stock (B)		695 shs.					06/19/15				5,976				161,447
											149,390				335,876
Grakon Parent
The leading designer and manufacturer of highly-engineered and customized LED and incandescent lighting systems for transportation-based markets.
Common Stock (B)		355 shs.					10/31/14				354,730				476,527

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
GraphPad Software, Inc.
A provider of data analysis, statistics and graphing software solution for scientific research applications, with a focus on the life sciences and academic end-markets.
7.66% Term Loan due 12/21/2022 (LIBOR + 6.000%)		$	5,000,000			12/19/17				$	4,904,622			$	4,918,953
GTI Holding Company
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
12% Senior Subordinated Note due 05/22/2023		$	1,455,729			02/05/14					1,410,200				1,455,729
Common Stock (B)		2,093 shs.					*				209,271				273,197
Warrant, exercisable until 2027, to purchase common stock at $.01 per share (B)		795 shs.				02/05/14					73,633				103,771
* 02/05/14 and 11/22/17.											1,693,104				1,832,697
Handi Quilter Holding Company (Premier Needle Arts)
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
12% (1% PIK) Senior Subordinated Note due 06/19/2021		$	3,500,000				*				3,456,156				3,500,000
Limited Liability Company Unit Preferred (B)		754 uts.					**				754,061				920,074
Limited Liability Company Unit Common Class A (B)		7,292 uts.				12/19/14					—				61,967
* 12/19/14 and 02/21/17.											4,210,217				4,482,041
** 12/19/14 and 04/29/16.
Happy Floors Acquisition, Inc.
A wholesale importer and value-added distributor of premium European flooring tile to residential and commercial end markets.
12.5% (1% PIK) Senior Subordinated Note due 07/01/2022		$	3,253,030			07/01/16					3,203,457				3,276,210
Common Stock (B)		303 shs.				07/01/16					303,333				396,571
											3,506,790				3,672,781
Hartland Controls Holding Corporation
A manufacturer and distributor of electronic and electromechanical components.
14% (2% PIK) Senior Subordinated Note due 08/14/2020		$	2,301,511			02/14/14					2,283,643				2,301,511
12% Senior Subordinated Note due 08/14/2020		$	875,000			06/22/15					870,851				883,750
Common Stock (B)		1,666 shs.				02/14/14					1,667				566,931
											3,156,161				3,752,192
HHI Group, LLC
A developer, marketer, and distributor of hobby-grade radio control products.
14% (2% PIK) Senior Subordinated Note due 11/26/2020		$	3,318,289			01/17/14					3,293,104				3,318,289
Limited Liability Company Unit (B) (F)		203 uts.				01/17/14					203,125				77,535
											3,496,229				3,395,824

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Hollandia Produce LLC
A hydroponic greenhouse producer of branded root vegetables.
14.25% (2.75% PIK) Senior Subordinated Note due 12/11/2020		$	2,864,258				*			$	2,830,336			$	2,291,406
* 12/30/15 and 12/23/16.
HOP Entertainment LLC
A provider of post production equipment and services to producers of television shows and motion pictures.
Limited Liability Company Unit Class F (B) (F)		89 uts.				10/14/11					—				—
Limited Liability Company Unit Class G (B) (F)		215 uts.				10/14/11					—				—
Limited Liability Company Unit Class H (B) (F)		89 uts.				10/14/11					—				—
Limited Liability Company Unit Class I (B) (F)		89 uts.				10/14/11					—				—
											—				—
Hospitality Mints Holding Company
A manufacturer of individually-wrapped imprinted promotional mints.
12% Senior Subordinated Note due 10/01/2019		$	2,075,581			08/19/08					2,073,085				1,868,023
Common Stock (B)		474 shs.				08/19/08					474,419				—
Warrant, exercisable until 2018, to purchase common stock at $.01 per share (B)		123 shs.				08/19/08					113,773				—
											2,661,277				1,868,023
Impact Confections
An independent manufacturer and marketer of confectionery products including Warheads® brand sour candies, Melster® brand classic candies, and co-manufactured/private label classic candies.
15% (15% PIK) Senior Subordinated Note due 11/10/2020		$	2,462,881			11/10/14					2,439,888				—
Common Stock (B)		4,667 shs.				11/10/14					466,667				—
											2,906,555				—
JMH Investors LLC
A developer and manufacturer of custom formulations for a wide variety of foods.
Limited Liability Company Unit (B) (F)		2,493,253 uts.				12/05/12					557,301				—
Limited Liability Company Unit Class A-1 (B) (F)		381,717 uts.				10/31/16					381,717				584,867
Limited Liability Company Unit Class A-2 (B) (F)		2,478,261 uts.				10/31/16					—				257,467
											939,018				842,334
K P I Holdings, Inc.
The largest player in the U.S. non-automotive, non-ferrous die casting segment.
Limited Liability Company Unit Class C Preferred (B)		75 uts.				06/30/15					—				172,999
Common Stock (B)		667 shs.				07/15/08					539,502				844,108
											539,502				1,017,107

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Manhattan Beachwear Holding Company
A designer and distributor of women's swimwear.
12.5% Senior Subordinated Note due 04/30/2019 (D)		$	1,259,914			01/15/10				$	1,212,363			$	1,133,923
15% (2.5% PIK) Senior Subordinated Note due 04/30/2019 (D)		$	345,759			10/05/10					343,820				311,183
Common Stock (B)		106 shs.				10/05/10					106,200				41,226
Common Stock Class B (B)		353 shs.				01/15/10					352,941				137,008
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)		312 shs.				10/05/10					283,738				121,251
											2,299,062				1,744,591
Master Cutlery LLC
A designer and marketer of a wide assortment of knives and swords.
13% Senior Subordinated Note due 04/17/2020		$	1,736,205			04/17/15					1,726,646				1,302,154
Limited Liability Company Unit		9 uts.				04/17/15					1,356,658				—
											3,083,304				1,302,154
Merex Holding Corporation
A provider of after-market spare parts and components, as well as maintenance, repair and overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
16% Senior Subordinated Note due 10/30/2019 (D)		$	1,362,886			09/22/11					1,347,188				1,022,164
15% PIK Senior Subordinated Note due 04/30/2022 (D)		$	71,517			08/18/15					71,517				—
14% PIK Senior Subordinated Note due 06/30/2019		$	192,445				*				192,445				191,751
Common Stock Class A (B)		249,235 shs.					**				512,114				—
* 10/21/16, 01/27/17 and 10/13/17.											2,123,264				1,213,915
** 08/18/15, 10/20/16 and 01/27/17.
MES Partners, Inc.
An industrial service business offering an array of cleaning and environmental services to the Gulf Coast region of the U.S.
12% (1% PIK) Senior Subordinated Note due 09/30/2021		$	2,273,557			09/30/14					2,246,999				2,270,990
12% Senior Subordinated Note due 09/30/2021		$	610,803			02/28/18					598,840				610,114
Common Stock Class B (B)		526,019 shs.					*				495,405				326,132
* 09/30/14 and 02/28/18.											3,341,244				3,207,236

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
MeTEOR Education LLC
A leading provider of classroom and common area design services, furnishings, equipment and instructional support to K-12 schools.
12% Senior Subordinated Note due 06/20/2023		$	2,297,872				03/09/18			$	2,252,270			$	2,306,712
Limited Liability Company Unit (B) (F)		456 uts.					03/09/18				459,574				413,477
											2,711,844				2,720,189
Midwest Industrial Rubber, Inc.
A supplier of industrial maintenance, repair, and operations ("MRO") products, specializing in the fabrication and distribution of lightweight conveyor belting and related conveyor components and accessories.
12% (1% PIK) Senior Subordinated Note due 12/02/2022		$	3,194,491				12/02/16				3,141,685				3,212,626
Preferred Stock (B)		3,472 shs.					12/02/16				347,191				324,450
Common Stock (B)		491 shs.					12/02/16				491				—
											3,489,367				3,537,076
MNX Holding Company
An international third party logistics company providing customized logistics services to customers across the globe.
14% (2% PIK) Senior Subordinated Note due 05/02/2020		$	3,222,816				11/02/12				3,203,437				3,222,815
Common Stock (B)		107 shs.					11/02/12				107,143				172,497
											3,310,580				3,395,312
Money Mailer Equity LLC
A leading provider of hyperlocal shared direct mail advertising as well as interactive and online advertising solutions through its nationwide production and distribution network.
12% (1% PIK) Senior Subordinated Note due 10/29/2021		$	3,564,761				04/29/16				3,514,630				3,298,645
Motion Controls Holdings
A manufacturer of high performance mechanical motion control and linkage products.
14.25% (1.75% PIK) Senior Subordinated Note due 08/15/2020		$	856,285				11/30/10				851,619				856,285
Limited Liability Company Unit Class B-1 (B) (F)		225,000 uts.					11/30/10				—				125,796
Limited Liability Company Unit Class B-2 (B) (F)		20,403 uts.					11/30/10				—				11,407
											851,619				993,488
New Mountain Learning, LLC
A leading provider of blended learning solutions to the K-12 and post-secondary school market.
8.65% Term Loan due 03/16/2024 (LIBOR + 5.500%)		$	4,498,014				03/15/18				3,471,560				3,474,199

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
NSi Industries Holdings, Inc.
A manufacturer and distributer of electrical components and accessories to small to mid-sized electrical wholesalers.
12.75% (1.75% PIK) Senior Subordinated Note due 05/17/2023		$	3,099,913			06/30/16				$	3,050,923			$	3,116,126
Common Stock (B)		420 shs.				05/17/16					420,000				524,526
											3,470,923				3,640,652
PANOS Brands LLC
A marketer and distributor of branded consumer foods in the specialty, natural, better-for-you, "free from" healthy and gluten-free categories.
12% (1% PIK) Senior Subordinated Note due 08/17/2022		$	3,602,879			02/17/17					3,550,790				3,605,307
Common Stock Class B (B)		772,121 shs.					*				772,121				994,137
* 01/29/16 and 02/17/17.											4,322,911				4,599,444
Pegasus Transtech Corporation
A provider of end-to-end document, driver and logistics management solutions, which enable its customers (carriers, brokers, and drivers) to operate more efficiently, reduce manual overhead, enhance compliance, and shorten cash conversion cycles.
11.25% Term Loan due 11/16/2022		$	703,559			11/14/17					683,912				685,773
7.84% Term Loan due 11/17/2024 (LIBOR + 6.250%)		$	4,305,556			11/14/17					3,927,584				3,942,221
											4,611,496				4,627,994
Petroplex Inv Holdings LLC
A leading provider of acidizing services to E&P customers in the Permian Basin.
Limited Liability Company Unit		0.90% int.					*				420,814				45,429
* 11/29/12 and 12/20/16.
Polytex Holdings LLC
A manufacturer of water based inks and related products serving primarily the wall covering market.
13.9% (1% PIK) Senior Subordinated Note due 01/31/2020		$	2,257,584			07/31/14					2,238,992				1,693,188
Limited Liability Company Unit		300,485 uts.				07/31/14					300,485				—
Limited Liability Company Unit Class F		75,022 uts.					*				50,322				—
* 09/28/17 and 2/15/18.											2,589,799				1,693,188
Power Stop Holdings LLC
A supplier of performance upgrade aftermarket brake products.
Limited Liability Company Unit Preferred (B) (F)		2,332 uts.				05/29/15					233,200				235,880
Limited Liability Company Unit Common (B) (F)		2,332 uts.				05/29/15					—				352,987
											233,200				588,867

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
PPC Event Services
A special event equipment rental business.
14% (2% PIK) Senior Subordinated Note due 05/20/2020		$	2,427,394			11/20/14				$	2,405,686			$	2,427,394
Limited Liability Company Unit (B)		7,000 uts.				11/20/14					350,000				824,728
Limited Liability Company Unit Series A-1 (B)		689 uts.				03/16/16					86,067				92,756
											2,841,753				3,344,878
Randy's Worldwide Automotive
A designer and distributor of automotive aftermarket parts.
Common Stock (B)		240 shs.				05/12/15					240,388				643,554
ReelCraft Industries, Inc.
A designer and manufacturer of heavy-duty reels for diversified industrial, mobile equipment OEM, auto aftermarket, government/military and other end markets.
10.5% (0.5% PIK) Senior Subordinated Note due 02/28/2023		$	2,909,862			11/13/17					2,909,862				2,882,388
Limited Liability Company Unit Class B		595,745 uts.				11/13/17					595,745				715,517
											3,505,607				3,597,905
Signature Systems Holdings Company
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
Common Stock (B)		181 shs.				03/15/13					181,221				324,499
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)		74 shs.				03/15/13					67,958				132,561
											249,179				457,060
Smart Source Holdings LLC
A short-term computer rental company.
Limited Liability Company Unit (B)		619 uts.					*				493,496				928,809
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)		157 shs.					*				127,437				235,298
* 08/31/07 and 03/06/08.											620,933				1,164,107
SMB Machinery Holdings, Inc.
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
14% (2% PIK) Senior Subordinated Note due 10/18/2019 (D)		$	1,477,388			10/18/13					1,452,295				—
Common Stock (B)		1,681 shs.				10/18/13					168,100				—
											1,620,395				—

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Software Paradigms International Group, LLC
An outsourced IT services provider focused on the retail industry.
12.5% (1.5% PIK) Senior Subordinated Note due 11/23/2021		$	3,500,000			05/23/16				$	3,448,378			$	3,511,168
SR Smith LLC
A manufacturer of mine and tunneling ventilation products in the United States.
11% Senior Subordinated Note due 03/27/2022		$	1,760,454			03/27/17					1,741,983				1,759,330
Limited Liability Company Unit Class A (B) (F)		29 uts.				03/27/17					1,717,802				2,197,507
											3,459,785				3,956,837
Strahman Holdings Inc.
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
Preferred Stock Series A (B)		317,935 shs.				12/13/13					317,935				510,378
Preferred Stock Series A-2 (B)		53,086 shs.				09/10/15					59,987				85,218
											377,922				595,596
Strategic Insight, Inc.
A provider of largely proprietary data, market research, and business intelligence to the global asset management industry.
10.94% Second Lien Term Loan due 12/21/2024 (LIBOR + 9.250%)		$	3,500,000			12/28/17					3,424,123				3,433,571
Sunrise Windows Holding Company
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
16% Senior Subordinated Note due 01/31/2019 (D)		$	4,285,410				*				4,075,756				2,999,787
Common Stock (B)		115 shs.				12/14/10					114,504				—
Warrant, exercisable until 2020, to purchase common stock at $.01 per share (B)		112 shs.				12/14/10					111,747				—
* 12/14/10, 08/17/12 and 03/31/16.											4,302,007				2,999,787
Sunvair Aerospace Group Inc.
An aerospace maintenance, repair, and overhaul provider servicing landing gears on narrow body aircraft.
12% (1% PIK) Senior Subordinated Note due 07/31/2021		$	2,661,978			07/31/15					2,612,649				2,329,230
Common Stock (B)		139 shs.					*				213,007				9,911
* 7/31/15 and 11/08/17.											2,825,656				2,339,141
Team Drive-Away Holdings LLC
An asset-light provider of over the road driveaway services for class 8 trucks and specialized equipment.
Limited Liability Company Unit (B)		194,400 uts.				10/15/15					194,400				373,442

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
Therma-Stor Holdings LLC
A designer and manufacturer of dehumidifiers and water damage restoration equipment for residential and commercial applications.
10.5% (0.5% PIK) Senior Subordinated Note due 11/30/2023		$	2,775,490			11/30/17				$	2,775,490			$	2,748,635
Limited Liability Company Unit		729,167 uts.				11/30/17					695,639				555,187
											3,471,129				3,303,822
Torrent Group Holdings, Inc.
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
15% (7.5% PIK) Senior Subordinated Note due 12/05/2020		$	141,785			12/05/13					433,033				141,785
Warrant, exercisable until 2023, to purchase common stock at $.01 per share (B)		53,038 shs.				12/05/13					—				40,309
											433,033				182,094
Tristar Global Energy Solutions, Inc.
A hydrocarbon and decontamination services provider serving refineries worldwide.
12.5% (1.5% PIK) Senior Subordinated Note due 07/31/2020		$	2,363,749			01/23/15					2,340,362				2,142,418
U.S. Retirement and Benefit Partners, Inc.
A leading independent provider of outsourced benefit design and administration and retirement services, primarily to K-12 school districts, employee unions, and governmental agencies.
10.38% Second Lien Term Loan due 02/14/2023 (LIBOR + 8.500%)		$	3,500,000			03/05/18					2,730,094				2,733,709
Velocity Technology Solutions, Inc.
A provider of outsourced hosting services for enterprise resource planning software applications and information technology infrastructure to mid and large-sized enterprises.
8.03% Lien Term Loan due 12/07/2023 (LIBOR + 6.000%)		$	4,200,000			12/07/17					4,160,132				4,176,027
Veritext Corporation
A provider of stenographic staffing and other services used during the legal deposition process.
11.3% Second Lien Term Loan due 01/29/2023 (LIBOR + 9.000%)		$	4,083,333				*				4,025,541				4,046,320
* 01/21/16 and 02/23/17.
VP Holding Company
A provider of school transportation services for special-needs and homeless children in Massachusetts.
Common Stock (B)		7,368 shs.				03/31/14					736,842				1,462,221

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage					Acquisition Date			Cost				Fair Value
Wellborn Forest Holding Company
A manufacturer of semi-custom kitchen and bath cabinetry.
8% Senior Subordinated Note due 09/30/2019 (D)		$	3,359,243				11/30/06			$	2,106,028			$	3,359,243
Common Stock (B)		191 shs.					11/30/06				191,250				26,507
Warrant, exercisable until 2019, to purchase common stock at $.01 per share (B)		95 shs.					11/30/06				86,493				13,233
											2,383,771				3,398,983
Westminster Acquisition LLC
A manufacturer of premium, all-natural oyster cracker products sold under the Westminster and Olde Cape Cod brands.
12% (1% PIK) Senior Subordinated Note due 02/03/2021		$	771,424				08/03/15				762,791				779,139
Limited Liability Company Unit (B) (F)		751,212 uts.					08/03/15				751,212				903,345
											1,514,003				1,682,484
Whitebridge Pet Brands Holdings, LLC
A portfolio of natural treats and foods for dogs and cats.
11.5% (0.5% PIK) Senior Subordinated Note due 08/18/2021		$	3,019,362 shs.				04/18/17				2,982,000				3,005,194
Limited Liability Company Unit Class A (B) (F)		250 uts.					04/18/17				300,485				276,760
Limited Liability Company Unit Class B (B) (F)		250 uts.					04/18/17				—				70,803
											3,282,485				3,352,757
Wolf-Gordon, Inc.
A designer and specialty distributor of wallcoverings and related building products, including textiles, paint, and writeable surfaces.
12.5% (1.5% PIK) Senior Subordinated Note due 07/22/2021		$	3,287,961				01/22/16				3,244,489				3,320,840
Common Stock (B)		318 shs.					01/22/16				318,182				377,453
											3,562,671				3,698,293
Worldwide Express Operations, LLC
A third party logistics company providing parcel, less than truck load and truck load services focused on the small and medium business market through both company owned and franchise locations.
10.72% Second Lien Term Loan due 02/03/2025 (LIBOR + 8.750%)		$	3,500,000				02/13/17				3,454,928				3,490,866
WP Supply Holding Corporation
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
14.5% (2.5% PIK) Senior Subordinated Note due 06/12/2020		$	2,991,805				11/03/11				2,985,216				2,991,805
Common Stock (B)		4,500 shs.					11/03/11				450,000				406,242
											3,435,216				3,398,047

Corporate Restricted Securities: (A) (Continued)		Principal Amount, Shares, Units or Ownership Percentage				Acquisition Date				Cost				Fair Value
York Wall Holding Company
A designer, manufacturer and marketer of wall covering products for both residential and commercial wall coverings.
14.5% (1.5% PIK) Senior Subordinated Note due 03/04/2021 (D)		$	3,950,121			03/04/15				$	3,144,099			$	3,552,745
Common Stock (B)		4,151 shs.					*				406,617				10,005
* 03/04/15 and 02/07/18.											3,550,716				3,562,750
Total Private Placement Investments (E)										$	230,739,392			$	230,503,554

Corporate Restricted Securities: (A) (Continued)		Interest Rate		Maturity Date		Principal Amount				Cost				Market Value
Rule 144A Securities - 17.65%:
Bonds - 17.48%
Alliance Resource Partners, L.P.		7.500	%	05/01/25		$	1,000,000			$	1,040,214			$	1,050,000
Altice Financing S.A.		7.500		05/15/26			1,000,000				1,056,162				980,000
Altice S.A.		7.750		05/15/22			1,000,000				1,000,000				928,740
American Airlines Group Inc.		5.500		10/01/19			870,000				883,403				890,140
Amsted Industries		5.375		09/15/24			520,000				520,000				520,000
Apex Tool Group LLC / BC Mountain Finance Inc.		9.000		02/15/23			933,000				933,000				930,667
Avantor Inc.		9.000		10/01/25			1,200,000				1,198,311				1,182,000
Balboa Merger Sub, Inc.		11.375		12/01/21			1,000,000				1,085,127				1,088,750
Boyne USA, Inc.		7.250		05/01/25			333,000				333,000				341,741
Carlson Travel, Inc.		9.500		12/15/24			1,342,000				1,255,211				1,253,092
CITGO Holding, Inc.		10.750		02/15/20			1,000,000				1,011,688				1,058,750
CITGO Petroleum Corporation		6.250		08/15/22			925,000				925,000				916,906
Consol Energy Inc.		11.000		11/15/25			1,000,000				1,000,000				1,067,800
Consolidated Energy Finance S.A.		6.750		10/15/19			394,000				391,433				398,433
Coveris Holdings S.A.		7.875		11/01/19			1,000,000				1,000,000				1,002,500
CVR Partners, LP.		9.250		06/15/23			1,000,000				979,955				1,064,700
Diamond 1 Finance Corp / Diamond 2 Finance Corp (Dell)		5.875		06/15/21			228,000				228,000				234,270
Eagle Holding Co II LLC		7.625		05/15/22			208,000				208,000				209,560
EnVen Energy Ventures, LLC		11.000		02/15/23			1,000,000				1,000,000				1,010,000
EP Energy Corporation		8.000		11/29/24			500,000				500,000				502,500
EP Energy LLC / Everest Acquisition Finance Inc.		9.375		05/01/24			819,000				488,716				582,514
First Quantum Minerals Ltd.		7.500		04/01/25			1,000,000				969,036				985,000
Gates Global LLC		6.000		07/15/22			477,000				394,075				484,751
Hertz Corporation		7.625		06/01/22			1,000,000				1,000,000				1,015,000
Hub International Ltd.		7.875		10/01/21			1,000,000				1,000,000				1,035,000
IAMGOLD Corporation		7.000		04/15/25			1,000,000				1,000,000				1,022,500
Infor (US), Inc.		5.750		08/15/20			226,000				224,833				230,520
International Automotive Component		9.125		06/01/18			989,000				986,966				935,841
J.B. Poindexter Co., Inc.		9.000		04/01/22			802,000				824,701				827,062
JBS USA Holdings, Inc.		7.750		10/28/20			750,000				767,780				772,875
JBS USA Lux S.A.		6.750		02/15/28			990,000				990,000				950,400
JDA Escrow LLC		7.375		10/15/24			179,000				179,000				185,265
Jupiter Resources Inc.		8.500		10/01/22			1,375,000				1,122,377				632,500
KCA Deutag UK Finance PLC		9.625		04/01/23			414,000				414,000				416,588
KeHE Distributors, LLC		7.625		08/15/21			1,000,000				1,034,727				977,500
LBC Tank Terminals Holding Netherlands B.V.		6.875		05/15/23			1,315,000				1,340,662				1,351,162
New Gold Inc.		6.250		11/15/22			1,000,000				1,004,191				1,021,250
New Gold Inc.		6.375		05/15/25			231,000				231,000				236,198
Onex Corporation		8.500		10/01/22			1,352,000				1,296,405				1,264,120

Corporate Restricted Securities: (A) (Continued)		Interest Rate		Maturity Date		Principal Amount				Cost				Market Value
OPE KAG Finance Sub		7.875	%	07/31/23		$	1,750,000			$	1,804,713			$	1,793,750
Ortho-Clinical Diagnostics, Inc.		6.625		05/15/22			1,261,000				1,244,000				1,229,475
Peabody Energy Corporation		6.615		03/31/25			1,000,000				986,471				1,037,500
Pinnacle Operating Corporation		9.000		05/15/23			756,588				919,069				711,193
Prime Security Services Borrower		9.250		05/15/23			1,014,000				1,015,407				1,098,852
PSPC Escrow Corp		6.500		02/01/22			299,000				264,740				303,859
Signode Industrial Group		6.375		05/01/22			1,265,000				1,242,643				1,301,369
Suncoke Energy		7.500		06/15/25			1,000,000				985,723				1,030,000
Teine Energy Ltd.		6.875		09/30/22			1,300,000				1,307,613				1,326,000
Tempo Acquisition LLC		6.750		06/01/25			216,000				216,000				215,730
Teva Pharmaceutical Industries Ltd.		6.000		04/15/24			365,000				365,000				354,481
Topaz Marine S.A.		9.125		07/26/22			1,000,000				1,000,000				1,037,000
Tullow Oil Plc		6.250		04/15/22			1,225,000				1,071,458				1,235,719
Unitymedia KabelBW GmbH		6.125		01/15/25			1,000,000				1,000,000				1,048,750
UPCB Finance IV Limited		5.375		01/15/25			425,000				425,000				410,125
USIS Merger Sub Inc.		6.875		05/01/25			1,000,000				1,000,000				1,000,000
Valeant Pharmaceuticals International, Inc.		9.250		04/01/26			1,000,000				1,000,000				996,200
Veritas US Inc. / Veritas Bermuda Ltd.		10.500		02/01/24			1,000,000				1,048,562				935,000
VFH Parent LLC / Orchestra Co-Issuer Inc.		6.750		06/15/22			174,000				174,000				183,788
Vine Oil & Gas LP		8.750		04/15/23			1,000,000				990,656				932,500
VistaJet Malta Finance P.L.C.		7.750		06/01/20			786,000				720,206				760,455
Warrior Met Coal, Inc.		8.000		11/01/24			433,000				433,000				440,577
Watco Companies, L.L.C.		6.375		04/01/23			1,000,000				1,000,000				1,025,000
West Street Merger Sub Inc.		6.375		09/01/25			1,110,000				1,109,573				1,057,275
Zekelman Industries, Inc.		9.875		06/15/23			230,000				230,000				253,000
Total Bonds											53,370,807				53,274,193
Preferred Stock - 0.17%
Pinnacle Operating Corporation (B)							519,298				339,854				519,298
Total Preferred Stock											339,854				519,298
Common Stock - 0.00%
TherOX, Inc. (B)							6				—				—
Touchstone Health Partnership (B)							1,168				—				—
Total Common Stock											—				—
Total Rule 144A Securities											53,710,661				53,793,491
Total Corporate Restricted Securities										$	284,450,053			$	284,297,045

Corporate Public Securities - 11.93%: (A)		LIBOR Spread		Interest Rate		Maturity Date		Principal Amount				Cost				Market Value
Bank Loans - 5.16%
Almonde, Inc.		7.250	%	9.234	%	06/13/25		$	940,734			$	958,941			$	930,884
Big River Steel LLC		5.000		7.302		08/23/23			238,402				236,250				241,382
Caelus Energy Alaska, LLC		7.500		9.678		04/15/20			500,000				496,715				435,529
Coronado Coal, LLC		6.500		8.812		03/14/25			524,207				508,480				516,343
Coronado Coal, LLC		6.500		8.812		03/21/25			142,965				138,676				140,821
Cunningham Lindsey U.S., Inc.		3.750		6.052		12/10/19			62,148				59,686				61,889
Cyanco Intermediate Corporation		7.500		9.672		02/15/26			1,000,000				990,021				995,000
DigiCert, Inc.		8.000		9.772		10/31/25			992,526				991,377				1,000,277
Fieldwood Energy LLC		7.000		8.877		08/31/20			408,845				319,373				339,629
Fieldwood Energy LLC		7.125		9.427		09/30/20			1,044,008				673,284				203,582
Fieldwood Energy LLC		7.125		9.427		09/30/20			1,455,992				1,008,339				1,383,192
Focus Financial Partners, LLC		7.500		9.802		05/22/25			800,000				818,000				814,000
Gulf Finance LLC		5.250		7.560		08/25/23			519,478				515,520				477,270
Higginbotham Insurance Agency, Inc.		7.250		9.127		12/19/25			409,358				405,391				406,288
K&N Engineering, Inc.		8.750		10.627		10/21/24			1,000,000				983,532				970,000
Kronos Incorporated		8.250		10.023		11/01/24			409,457				406,061				424,128
Murray Energy Corporation		7.250		9.552		04/16/20			907,791				840,780				767,083
OCI Beaumont LLC		4.250		6.552		02/14/25			252,086				251,772				253,241
Prospect Medical Holdings, Inc.		5.500		7.188		02/13/24			528,673				518,254				528,673
PS Logistics LLC		5.250		7.339		03/01/25			1,000,000				1,010,000				1,007,500
Seadrill Partners Finco, LLC		6.000		8.302		02/21/21			977,041				623,092				817,461
Serta Simmons Bedding, LLC		8.000		9.711		11/08/24			1,000,000				969,884				793,000
Southern Graphics, Inc.		7.500		9.377		12/31/23			990,968				1,000,877				994,684
Summit Midstream Holdings, LLC		6.000		7.877		05/13/22			269,879				267,717				272,578
Wastequip, LLC		7.750		9.572		02/27/26			1,000,000				980,028				975,000
Total Bank Loans													15,972,050				15,749,434

		Interest Rate		Maturity Date		Principal Amount				Cost				Market Value
Bonds - 6.77%
A. Schulman Inc.		6.875	%	06/01/23		$	1,000,000			$	1,010,150			$	1,055,000
AMC Entertainment Holdings, Inc.		6.125		05/15/27			1,000,000				973,748				985,100
Anchorage Capital Group, L.L.C.		8.972		01/15/29			700,000				724,062				717,825
Beazer Homes USA Inc.		6.750		03/15/25			598,000				598,000				592,020
Beazer Homes USA Inc.		8.750		03/15/22			320,000				320,000				344,800
Clear Channel Worldwide Holdings, Inc.		7.625		03/15/20			1,000,000				998,022				998,750
Clearwater Paper Corporation		4.500		02/01/23			736,000				731,955				706,560
CVR Refining LLC		6.500		11/01/22			650,000				636,789				663,000
EnPro Industries Inc.		5.875		09/15/22			250,000				252,085				258,438

Corporate Public Securities: (A) (Continued)		Interest Rate		Maturity Date		Principal Amount				Cost				Market Value
Ferrellgas Partners, L.P		6.750	%	01/15/22		$	1,000,000			$	1,004,718			$	947,500
Ferrellgas Partners, L.P		8.625		06/15/20			1,048,000				1,048,521				961,540
Genesis Energy, L.P.		5.625		06/15/24			1,000,000				941,836				942,500
Hughes Satellite Systems Corporation		6.625		08/01/26			1,250,000				1,234,914				1,243,750
Icahn Enterprises L.P.		6.000		08/01/20			1,150,000				1,159,101				1,173,000
NRG Energy, Inc.		7.250		05/15/26			500,000				502,858				528,900
NRG Energy, Inc.		6.625		01/15/27			1,000,000				957,263				1,022,500
Oasis Petroleum Inc.		6.875		03/15/22			1,000,000				1,000,000				1,014,240
PBF Holding Company LLC		7.000		11/15/23			65,000				65,000				67,275
Perry Ellis International, Inc.		7.875		04/01/19			250,000				249,479				249,688
Ply Gem Industries, Inc.		6.500		02/01/22			1,000,000				954,626				1,032,700
SM Energy Company		6.750		09/15/26			1,500,000				1,488,790				1,485,000
Sonic Automotive, Inc.		6.125		03/15/27			352,000				352,000				339,680
Sprint Corporation		7.125		06/15/24			315,000				315,000				307,125
Suburban Propane Partners, L.P.		5.750		03/01/25			1,000,000				1,000,000				960,000
TransDigm Group, Inc.		6.375		06/15/26			1,000,000				979,346				1,007,500
William Lyon Homes		7.000		08/15/22			1,000,000				1,000,000				1,025,000
Total Bonds											20,498,263				20,629,391
Common Stock - 0.00%
Chase Packaging Corporation (B)		—		—			9,541				—				191
Total Common Stock											—				191
Total Corporate Public Securities										$	36,470,313			$	36,379,016
Total Investments		105.21	%							$	320,920,366			$	320,676,061
Other Assets		6.16													18,760,027
Liabilities		(11.37	)												(34,647,943	)
Total Net Assets		100.00	%											$	304,788,145