10-Q
Table of Contents

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

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

 

For the quarterly period ended June 30, 2021

 

OR

 

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

 

For the transition period from                 to                

Commission file number 814-00861

 

 

Fidus Investment Corporation

(Exact Name of Registrant as Specified in its Charter)

 

 

 

Maryland   27-5017321

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

1603 Orrington Avenue, Suite 1005

Evanston, Illinois

  60201
(Address of Principal Executive Offices)   (Zip Code)

(847) 859-3940

(Registrant’s telephone number, including area code)

 

 

n/a

(Former name, former address and former fiscal year, if changed since last report)

 

 

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

 

Title of each class

 

Trading Symbol

 

Name of each exchange on which registered

Common Stock, par value $0.001 per share   FDUS   The NASDAQ Global Select Market
6.000% Notes due 2024   FDUSZ   The NASDAQ Global Select Market
5.375% Notes due 2024   FDUSG   The NASDAQ Global Select Market

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

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐

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

 

Large accelerated filer

 

Accelerated filer

  

Non-accelerated filer

 

Smaller reporting

company ☐

 

Emerging growth

company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☑

As of August 2, 2021, the Registrant had outstanding 24,437,400 shares of common stock, $0.001 par value.

 

 

 


Table of Contents

FIDUS INVESTMENT CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

 

  PART I — FINANCIAL INFORMATION   3

Item 1.

  Financial Statements.   3
 

Consolidated Statements of Assets and Liabilities — June  30, 2021 (unaudited) and December 31, 2020

 

3

 

Consolidated Statements of Operations — Three and Six Months Ended June 30, 2021 (unaudited) and 2020 (unaudited)

 

4

 

Consolidated Statements of Changes in Net Assets — Three and Six Months Ended June 30, 2021 (unaudited) and 2020 (unaudited)

 

5

 

Consolidated Statements of Cash Flows — Three and Six Months Ended June 30, 2021 (unaudited) and 2020 (unaudited)

 

6

 

Consolidated Schedules of Investments — June  30, 2021 (unaudited) and December 31, 2020

 

7

 

Notes to Consolidated Financial Statements (unaudited)

 

18

Item 2.

 

Management’s Discussion and Analysis of Financial Condition and Results of Operations.

 

40

Item 3.

 

Quantitative and Qualitative Disclosures About Market Risk.

 

60

Item 4.

 

Controls and Procedures.

 

61

  PART II — OTHER INFORMATION   62

Item 1.

 

Legal Proceedings.

 

62

Item 1A.

 

Risk Factors.

 

62

Item 2.

 

Unregistered Sales of Equity Securities and Use of Proceeds.

 

62

Item 3.

 

Defaults Upon Senior Securities.

 

62

Item 4.

 

Mine Safety Disclosures.

 

62

Item 5.

 

Other Information.

 

62

Item 6.

 

Exhibits.

 

63

Signatures

  64

Exhibit Index

 

 

2


Table of Contents

PART I — FINANCIAL INFORMATION

Item 1. Financial Statements.

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Assets and Liabilities

(in thousands, except shares and per share data)

 

     June 30,
2021
    December 31,
2020
 

ASSETS

    

Investments, at fair value:

    

Control investments (cost: $71,869 and $32,969, respectively)

   $ 61,168     $ 28,253  

Affiliate investments (cost: $26,713 and $31,836, respectively)

     92,639       81,394  

Non-control/non-affiliate  investments (cost: $572,350 and $622,222, respectively)

     589,651       633,222  
  

 

 

   

 

 

 

Total investments, at fair value (cost: $670,932 and $687,027, respectively)

     743,458       742,869  

Cash and cash equivalents

     54,211       124,308  

Interest receivable

     7,767       7,548  

Prepaid expenses and other assets

     2,244       1,015  
  

 

 

   

 

 

 

Total assets

   $ 807,680     $ 875,740  
  

 

 

   

 

 

 

LIABILITIES

    

SBA debentures, net of deferred financing costs (Note 6)

   $ 135,848     $ 144,004  

Notes, net of deferred financing costs (Note 6)

     202,857       300,294  

Borrowings under Credit Facility, net of deferred financing costs (Note 6)

     (824     (1,048

Secured Borrowings

     13,500       —    

Accrued interest and fees payable

     5,476       3,500  

Base management fee payable, net of base management fee waiver – due to affiliate

     3,186       3,244  

Income incentive fee payable, net of income incentive fee waiver – due to affiliate

     2,550       2,610  

Capital gains incentive fee payable – due to affiliate

     15,005       11,031  

Administration fee payable and other – due to affiliate

     183       576  

Taxes (receivable) payable

     (425     275  

Accounts payable and other liabilities

     957       494  
  

 

 

   

 

 

 

Total liabilities

     378,313       464,980  
  

 

 

   

 

 

 

Commitments and contingencies (Note 7)

    

NET ASSETS

    

Common stock, $0.001 par value (100,000,000 shares authorized, 24,437,400 and 24,437,400 shares issued and outstanding at June 30, 2021 and December 31, 2020, respectively)

     24       24  

Additional paid-in capital

     363,751       363,751  

Total distributable earnings

     65,592       46,985  
  

 

 

   

 

 

 

Total net assets

     429,367       410,760  
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 807,680     $ 875,740  
  

 

 

   

 

 

 

Net asset value per common share

   $ 17.57     $ 16.81  
  

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

3


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2021     2020     2021     2020  

Investment Income:

        

Interest income

        

Control investments

   $ 975     $ 449     $ 1,568     $ 881  

Affiliate investments

     711       831       1,559       1,814  

Non-control/non-affiliate  investments

     16,105       17,559       33,802       33,611  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     17,791       18,839       36,929       36,306  

Payment-in-kind interest income

        

Control investments

     596       445       937       870  

Affiliate investments

     84       29       195       69  

Non-control/non-affiliate investments

     424       707       940       1,323  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total payment-in-kind interest income

     1,104       1,181       2,072       2,262  

Dividend income

        

Control investments

     568       —         568       —    

Affiliate investments

     110       1       110       108  

Non-control/non-affiliate  investments

     149       17       242       46  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total dividend income

     827       18       920       154  

Fee income

        

Control investments

     —         —         400       —    

Affiliate investments

     85       66       268       66  

Non-control/non-affiliate  investments

     2,018       327       4,526       1,618  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fee income

     2,103       393       5,194       1,684  

Interest on idle funds

     1       2       1       10  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     21,826       20,433       45,116       40,416  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Interest and financing expenses

     4,562       4,863       9,756       9,823  

Base management fee

     3,215       3,193       6,391       6,465  

Incentive fee—income

     2,550       2,113       5,219       3,968  

Incentive fee (reversal)—capital gains

     3,883       (263     3,974       (9,141

Administrative service expenses

     430       364       843       830  

Professional fees

     312       654       635       1,207  

Other general and administrative expenses

     396       500       741       835  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses before base management and income incentive fee waivers

     15,348       11,424       27,559       13,987  
  

 

 

   

 

 

   

 

 

   

 

 

 

Base management and income incentive fee waivers

     (29     (423     (29     (423
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net of base management and incentive fee waivers

     15,319       11,001       27,530       13,564  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income before income taxes

     6,507       9,432       17,586       26,852  

Income tax provision (benefit)

     34       141       32       144  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     6,473       9,291       17,554       26,708  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains (losses) on investments:

        

Net realized gains (losses):

        

Control investments

     —         —         957       —    

Affiliate investments

     —         87       —         24,419  

Non-control/non-affiliate  investments

     2,150       117       4,409       7,163  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized gain (loss) on investments

     2,150       204       5,366       31,582  
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax (provision) benefit from realized gains on investments

     —         (14     —         (1,065

Net change in unrealized appreciation (depreciation):

        

Control investments

     (6,877     (68     (5,985     (1,764

Affiliate investments

     12,416       3,797       16,368       (35,453

Non-control/non-affiliate  investments

     11,724       (5,237     6,301       (38,881
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net change in unrealized appreciation (depreciation) on investments

     17,263       (1,508     16,684       (76,098
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) on investments

     19,413       (1,318     22,050       (45,581

Realized losses on extinguishment of debt

     —         —         (2,180     (125
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 25,886     $ 7,973     $ 37,424     $ (18,998
  

 

 

   

 

 

   

 

 

   

 

 

 

Per common share data:

        

Net investment income per share-basic and diluted

   $ 0.26     $ 0.38     $ 0.72     $ 1.09  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations per share — basic and diluted

   $ 1.06     $ 0.33     $ 1.53     $ (0.78
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per share

   $ 0.39     $ 0.30     $ 0.77     $ 0.69  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding — basic and diluted

     24,437,400       24,437,400       24,437,400       24,447,517  
  

 

 

   

 

 

   

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

4


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Changes in Net Assets (unaudited)

(in thousands, except shares)

 

     Common Stock     Additional
paid-in
capital
    Total
distributable
earnings
    Total net
assets
 
     Number of
shares
    Par
value
 

Balances at December 31, 2019

     24,463,119     $ 24     $ 366,061     $ 46,225     $ 412,310  

Repurchases of common stock under Stock Repurchase Program (Note 8)

     (25,719     (0 )*      (268     —         (268

Net investment income

     —         —         —         17,417       17,417  

Net realized gain (loss) on investments, net of taxes

     —         —         —         30,327       30,327  

Net unrealized appreciation (depreciation) on investments

     —         —         —         (74,590     (74,590

Realized losses on extinguishment of debt

     —         —         —         (125     (125

Dividends declared

     —         —         —         (9,537     (9,537
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at March 31, 2020

     24,437,400     $ 24     $ 365,793     $ 9,717     $ 375,534  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     —         —         —         9,291       9,291  

Net realized gain (loss) on investments, net of taxes

     —         —         —         190       190  

Net unrealized appreciation (depreciation) on investments

     —         —         —         (1,508     (1,508

Realized losses on extinguishment of debt

     —         —         —         —         —    

Dividends declared

     —         —         —         (7,331     (7,331
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at June 30, 2020

     24,437,400     $ 24     $ 365,793     $ 10,359     $ 376,176  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at December 31, 2020

     24,437,400     $ 24     $ 363,751     $ 46,985     $ 410,760  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     —         —         —         11,081       11,081  

Net realized gain (loss) on investments, net of taxes

     —         —         —         3,216       3,216  

Net unrealized appreciation (depreciation) on investments

     —         —         —         (579     (579

Realized losses on extinguishment of debt

     —         —         —         (2,180     (2,180

Dividends declared

     —         —         —         (9,286     (9,286
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at March 31, 2021

     24,437,400     $ 24     $ 363,751     $ 49,237     $ 413,012  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     —         —         —         6,473       6,473  

Net realized gain (loss) on investments, net of taxes

     —         —         —         2,150       2,150  

Net unrealized appreciation (depreciation) on investments

     —         —         —         17,263       17,263  

Realized losses on extinguishment of debt

     —         —         —         —         —    

Dividends declared

     —         —         —         (9,531     (9,531
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at June 30, 2021

     24,437,400     $ 24     $ 363,751     $ 65,592     $ 429,367  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

* amount is greater than zero but less than one

See Notes to Consolidated Financial Statements (unaudited).

 

5


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Six Months Ended June 30,  
     2021     2020  

Cash Flows from Operating Activities:

                                                      

Net increase (decrease) in net assets resulting from operations

   $ 37,424     $ (18,998

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:

    

Net change in unrealized (appreciation) depreciation on investments

     (16,684     76,098  

Net realized (gain) loss on investments

     (5,366     (31,582

Interest and dividend income paid-in-kind

     (2,177     (2,262

Accretion of original issue discount

     (605     (103

Accretion of loan origination fees

     (1,139     (514

Purchase of investments

     (167,349     (85,097

Proceeds from sales and repayments of investments

     191,560       76,315  

Proceeds from loan origination fees

     1,171       1,444  

Realized losses on extinguishment of debt

     2,180       125  

Amortization of deferred financing costs

     1,117       1,098  

Changes in operating assets and liabilities:

    

Interest receivable

     (219     (1,877

Prepaid expenses and other assets

     (1,164     (171

Accrued interest and fees payable

     1,976       (94

Base management fee payable, net of base management fee waiver – due to affiliate

     (58     (141

Income incentive fee payable, net of income incentive fee waiver – due to affiliate

     (60     193  

Capital gains incentive fee (reversal) – due to (from) affiliate

     3,974       (9,141

Administration fee payable and other – due to affiliate

     (393     (72

Taxes payable

     (700     (424

Accounts payable and other liabilities

     463       91  
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     43,951       4,888  
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds received from SBA debentures

     11,500       6,000  

Repayments of SBA debentures

     (19,200     (7,000

Principal payments on Notes

     (100,000     —    

Proceeds received from (repayments of) borrowings under Credit Facility, net

     —         18,000  

Proceeds from secured borrowings

     13,500       —    

Payment of deferred financing costs

     (1,031     (496

Dividends paid to stockholders, including expenses

     (18,817     (16,868

Repurchases of common stock under Stock Repurchase Program

     —         (268
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (114,048     (632
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (70,097     4,256  

Cash and cash equivalents:

    

Beginning of period

     124,308       15,012  
  

 

 

   

 

 

 

End of period

   $ 54,211     $ 19,268  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash payments for interest

   $ 6,663     $ 8,819  

Cash payments for taxes, net of tax refunds received

   $ 732     $ 1,633  

See Notes to Consolidated Financial Statements (unaudited).

 

6


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

Portfolio Company (a)(b)
Investment Type (c)

   Industry      Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
    Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

Control Investments (t)

                        

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

     Component Manufacturing                        

Revolving Loan (j)

        (L + 9.50%) / (0.50%     10.00%/0.00     12/20/2019        6/30/2022      $ 5,962      $ 5,962      $ 5,962     

First Lien Debt (j)

        (L + 9.50%) / (0.50%     10.00%/0.00     12/20/2019        6/30/2022        4,324        4,324        4,324     

Preferred Equity (1,000,000 units) (h)(j)

            4/18/2018              1,000        —       

Common Equity (72,507 units) (h)(j)

            9/23/2016              473        —       

Common Equity (Units N/A)

            4/6/2021              10,450        10,428     
                  

 

 

    

 

 

    
                     22,209        20,714        5

Mesa Line Services, LLC

     Utilities: Services                        

Second Lien Debt (j)

          5.00%/7.00     11/30/2017        2/1/2024        20,804        20,745        16,298     

Common Equity (981 shares) (j)

            11/30/2017              1,148        —       

Common Equity (10 shares) (j)

            4/22/2021              —          —       
                  

 

 

    

 

 

    
                     21,893        16,298        4

US GreenFiber, LLC

     Building Products Manufacturing                        

Second Lien Debt (j)

          8.00%/5.00     7/3/2014        8/30/2024        15,784        15,780        13,557     

Second Lien Debt (j)

          8.50%/6.50     11/9/2018        8/30/2024        5,203        5,203        5,328     

Second Lien Debt (j)

          8.50%/6.50     8/10/2020        8/30/2024        5,174        5,174        5,271     

Common Equity (2,522 units) (h)(j)

            7/3/2014              586        —       

Common Equity (425,508 units) (j)

            8/30/2019              1        —       

Common Equity (1,022,813 units) (h)(j)

            7/1/2020              1,023        —       
                  

 

 

    

 

 

    
                     27,767        24,156        5
                  

 

 

    

 

 

    

Total Control Investments

                   $ 71,869      $ 61,168        14
                  

 

 

    

 

 

    

Affiliate Investments (l)

                        

FAR Research Inc. (n)

     Specialty Chemicals                        

Common Equity (1,396 units)

            3/31/2014            $ —        $ 28        0

Fiber Materials, Inc. (n)

     Aerospace & Defense Manufacturing                        

Common Equity (10 units)

            11/30/2016              —          42        0

Medsurant Holdings, LLC

     Healthcare Services                        

Preferred Equity (63,331 units) (h)(j)

            4/12/2011              673        864     

Warrant (252,588 units) (h)(j)(m)

            4/12/2011              2,258        3,140     
                  

 

 

    

 

 

    
                     2,931        4,004        1

Mirage Trailers LLC

     Utility Equipment Manufacturing                        

Second Lien Debt (k)

        (L + 10.00%) / (1.00%     11.00%/5.00     11/25/2015        11/25/2021        6,532        6,615        6,532     

Common Equity (2,500,000 shares)

            11/25/2015              2,188        3,540     
                  

 

 

    

 

 

    
                     8,803        10,072        2

Pfanstiehl, Inc.

     Healthcare Products                        

Common Equity (4,250 units) (j)

            3/29/2013              425        43,181        10

Pinnergy, Ltd.

     Oil & Gas Services                        

Common Equity—Class A-2 (42,500 units) (j)

            10/13/2016              3,000        20,797        5

Spectra A&D Acquisition, Inc. (fka FDS Avionics Corp.)

     Aerospace & Defense Manufacturing                        

First Lien Debt (ag)

        (L + 5.50%) / (1.00%     6.50%/0.00     2/12/2021        2/11/2026        8,000        7,946        7,946     

Common Equity (41,290 units) (j)

            2/12/2021              2,608        4,272     
                  

 

 

    

 

 

    
                     10,554        12,218        3

Steward Holding LLC (dba Steward Advanced Materials)

     Aerospace & Defense Manufacturing                        

Common Equity (1,000,000 units)

            11/12/2015              1,000        2,297        1
                  

 

 

    

 

 

    

Total Affiliate Investments

                   $ 26,713      $ 92,639        22
                  

 

 

    

 

 

    

 

7


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

  Industry     Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
    Investment
Date (f)
    Maturity     Principal
Amount
    Cost     Fair
Value (g)
    Percent of
Net Assets
 

Non-control/Non-affiliate Investments

                 

2KDirect, Inc. (dba iPromote)

    Information Technology Services                  

First Lien Debt (k)(ah)

      (L + 6.75%) / (0.50%     7.25%/0.00     6/25/2021       6/25/2026     $ 17,000     $ 16,931     $ 16,931    

Common Equity (1,000,000 units)

          6/25/2021           1,000       1,000    
             

 

 

   

 

 

   
                17,931       17,931       4

Aeronix Inc.

    Aerospace & Defense Manufacturing                  

First Lien Debt (ai)

      (L + 5.88%) / (0.50%     6.38%/0.00     6/11/2021       6/11/2026       6,500       6,454       6,454    

Common Equity (500 units)

          6/11/2021           500       500    
             

 

 

   

 

 

   
                6,954       6,954       2

Allied 100 Group, Inc.

    Healthcare Products                  

Subordinated Debt (k)

        11.25%/0.00     7/31/2019       5/26/2023       21,500       21,446       21,500    

Common Equity (625,000 units) (j)

          11/26/2014           626       1,138    
             

 

 

   

 

 

   
                22,072       22,638       5

Allredi, LLC (fka Marco Group International OpCo, LLC)

    Industrial Cleaning & Coatings                  

Second Lien Debt

        10.50%/1.75     3/2/2020       9/2/2026       10,169       10,090       8,109    

Common Equity (570,636 units) (h)(j)

          7/21/2017           637       52    
             

 

 

   

 

 

   
                10,727       8,161       2

Alzheimer’s Research and Treatment Center, LLC

    Healthcare Services                  

Common Equity (500 units) (h)(j)

          10/23/2018           500       1,098       0

American AllWaste LLC (dba WasteWater Transport Services)

    Environmental Industries                  

First Lien Debt (j)(p)

      (L + 6.15%) / (1.00%     7.15%/0.00     6/28/2021       6/28/2026       19,000       18,851       18,851    

Delayed Draw Commitment ($3,900 unfunded commitment) (j)(o)

      (L + 3.75%) / (1.00%     4.75%/0.00     6/28/2021       12/31/2022       —         —         —      

Preferred Equity (500 units) (h)(j)

          5/31/2018           500       188    

Preferred Equity (207 units) (h)(j)

          8/6/2019           250       226    

Preferred Equity (141 units) (h)(j)

          11/2/2020           171       171    
             

 

 

   

 

 

   
                19,772       19,436       5

Applied Data Corporation

    Information Technology Services                  

First Lien Debt (v)

      (L + 6.25%) / (1.50%     7.75%/0.00     11/6/2020       11/6/2025       8,000       7,954       8,000    

Common Equity (22 units)

          11/6/2020           —         —      

Preferred Equity (1,070,614 units)

          11/6/2020           1,071       1,101    
             

 

 

   

 

 

   
                9,025       9,101       2

Argo Turboserve Corporation

    Business Services                  

Second Lien Debt (j)

      (L + 12.00%) / (2.00%     14.00%/0.00     12/26/2018       6/28/2023       12,469       12,436       12,469       3

AVC Investors, LLC (dba Auveco)

    Specialty Distribution                  

Common Equity (5,000 units) (j)

          1/3/2018           383       515       0

B&B Roadway and Security Solutions, LLC

    Component Manufacturing                  

Second Lien Debt

        11.25%/4.00     2/27/2018       1/1/2022       11,131       11,120       10,451    

Common Equity (50,000 units) (h)(j)

          2/27/2018           497       —      
             

 

 

   

 

 

   
                11,617       10,451       2

Bandon Fitness (Texas), Inc.

    Retail                  

Common Equity (545,810 units) (j)

          8/9/2019           931       1,659       0

BCM One Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt (k)

        11.00%/0.00     1/3/2019       7/3/2024       30,000       29,903       30,000    

Common Equity (1,281 shares)

          1/3/2019           48       752    

Preferred Equity (74 shares)

          1/3/2019           736       737    
             

 

 

   

 

 

   
                30,687       31,489       7

Bedford Precision Parts LLC

    Specialty Distribution                  

First Lien Debt (j)(s)

      (L + 6.25%) / (2.00%     8.25%/0.00     3/12/2019       3/12/2024       4,531       4,510       4,477    

Common Equity (500,000 units) (h)(j)

          3/12/2019           500       313    
             

 

 

   

 

 

   
                5,010       4,790       1

Cardboard Box LLC (dba Anthony’s Coal Fired Pizza)

    Restaurants                  

Common Equity (521,021 units) (j)

          12/15/2015           521       —      

Preferred Equity (1,043,133 units) (j)

          12/6/2019           96       21    
             

 

 

   

 

 

   
                617       21       0

Combined Systems, Inc.

    Aerospace & Defense Manufacturing                  

First Lien Debt

      (L + 11.00%) / (2.00%     13.00%/0.00     1/31/2020       1/31/2025       7,291       7,250       7,105    

Revolving Loan ($550 unfunded commitment) (j)(ac)

      (L + 10.00%) / (2.00%     12.00%/0.00     1/31/2020       1/31/2025       3,450       3,432       3,450    
             

 

 

   

 

 

   
                10,682       10,555       2

Comply365, LLC

    Aerospace & Defense Manufacturing                  

First Lien Debt (ad)

      (L + 8.00%) /(1.00%     9.00%/0.00     12/11/2020       12/11/2025       9,570       9,440       9,570    

Common Equity (1,000,000 units)

          12/11/2020           1,000       1,232    
             

 

 

   

 

 

   
                10,440       10,802       3

CRS Solutions Holdings, LLC (dba CRS Texas)

    Business Services                  

Second Lien Debt

        10.50%/1.50     3/14/2018       4/30/2024       11,390       11,360       11,390    

Common Equity (538,875 units) (h)(j)

          3/14/2018           621       709    
             

 

 

   

 

 

   
                11,981       12,099       3

Dataguise, Inc.

    Information Technology Services                  

First Lien Debt (j)

        11.00%/0.00     12/31/2020       12/31/2023       19,950       19,867       19,751    

Common Equity (909 shares) (j)

          12/31/2020           1,500       1,491    
             

 

 

   

 

 

   
                21,367       21,242       5

Diversified Search LLC

    Business Services                  

First Lien Debt (k)(r)

      (L + 6.50%) / (1.00%     7.50%/0.00     2/7/2019       2/7/2024       17,355       17,190       17,355    

Common Equity (573 units) (h)(j)

          2/7/2019           593       784    
             

 

 

   

 

 

   
                17,783       18,139       4

 

8


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

   Industry      Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
    Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

EBL, LLC (EbLens)

     Retail                        

Second Lien Debt (j)

          12.00%/1.00     7/13/2017        1/13/2023        9,277        9,247        7,939     

Common Equity (75,000 units) (j)

            7/13/2017              750        —       
                  

 

 

    

 

 

    
                     9,997        7,939        2

ECM Industries, LLC

     Component Manufacturing                        

Subordinated Debt (j)

          11.50%/0.00     4/30/2020        5/23/2026        11,500        11,314        11,500     

Common Equity (1,000,000 units) (h)(j)

            4/30/2020              1,000        1,847     
                  

 

 

    

 

 

    
                     12,314        13,347        3

Elements Brands, LLC

     Consumer Products                        

First Lien Debt

          12.25%/0.00     12/31/2020        12/31/2025        5,925        5,895        5,925     

Revolving Loan ($838 unfunded commitment) (i)(j)

          12.25%/0.00     12/31/2020        12/31/2025        2,162        2,147        2,162     
                  

 

 

    

 

 

    
                     8,042        8,087        2

Frontline Food Services, LLC (f/k/a Accent Food Services, LLC)

     Vending Equipment Manufacturing                        

Preferred Equity (Class A Units) (46 units) (j)

            12/31/2020              2,000        1,825     

Common Equity (Class B Units) (124 units) (j)

            12/31/2020              —          —       

Preferred Equity (Class C Units) (100 units) (j)

            12/31/2020              —          —       
                  

 

 

    

 

 

    
                     2,000        1,825        0

Global Plasma Solutions, Inc.

     Component Manufacturing                        

Common Equity (947 shares) (j)

            9/21/2018              52        6,108        1

GP&C Operations, LLC (dba Garlock Printing and Converting)

     Component Manufacturing                        

First Lien Debt (w)

        (L + 7.25%) / (1.00%     8.25%/0.00     1/22/2021        1/22/2026        11,000        10,849        10,849     

Common Equity (515,625 units) (h)(j)

            1/22/2021              516        516     
                  

 

 

    

 

 

    
                     11,365        11,365        3

Gurobi Optimization, LLC

     Information Technology Services                        

Common Equity (3 shares)

            12/19/2017              607        2,138        0

Haematologic Technologies, Inc.

     Healthcare Services                        

First Lien Debt (x)

        (L + 8.25%) / (2.00%     10.25%/0.00     10/11/2019        10/11/2024        5,500        5,473        4,759     

Common Equity (549 units) (h)(j)

            10/11/2019              549        49     
                  

 

 

    

 

 

    
                     6,022        4,808        1

Hallmark Health Care Solutions, Inc.

     Healthcare Services                        

First Lien Debt (j)(ae)

        (L + 7.25%) / (1.50%     8.75%/0.00     12/4/2020        12/4/2025        8,460        8,404        8,460     

Common Equity (750,000 units) (j)

            12/4/2020              750        1,633     
                  

 

 

    

 

 

    
                     9,154        10,093        2

Healthfuse, LLC

     Healthcare Services                        

First Lien Debt (af)

        (L + 7.25%) / (1.00%     8.25%/0.00     11/13/2020        11/13/2025        5,985        5,949        5,985     

Preferred Equity (197,980 units)

            11/13/2020              750        801     
                  

 

 

    

 

 

    
                     6,699        6,786        2

Hub Acquisition Sub, LLC (dba Hub Pen)

     Promotional products                        

Second Lien Debt (k)

          13.50%/0.00     3/23/2016        3/31/2023        25,000        24,979        21,672     

Common Equity (3,750 units)

            3/23/2016              128        —       

Preferred Equity (868 units) (j)

            10/16/2020              153        —       
                  

 

 

    

 

 

    
                     25,260        21,672        5

IBH Holdings, LLC (fka Inflexxion, Inc.)

     Business Services                        

Common Equity (150,000 units)

            6/20/2018              —          390        0

Ipro Tech, LLC

     Information Technology Services                        

First Lien Debt (j)(u)

        (L + 8.50%) / (2.00%     10.50%/0.00     6/30/2020        6/30/2025        2,453        1,961        2,438        1

ISI PSG Holdings, LLC (dba Incentive Solutions, Inc.)

     Business Services                        

First Lien Debt (j)(aj)

        (L + 7.50%) / (0.50%     8.00%/0.00     4/5/2021        4/5/2026        11,500        11,410        11,410     

First Lien Debt (j)(an)

        (L + 7.50%) / (0.50%     8.00%/0.00     6/30/2021        4/5/2026        13,500        13,500        13,500     

Common Equity (256,964 units) (h)(j)

            4/5/2021              500        500     
                  

 

 

    

 

 

    
                     25,410        25,410        6

K2 Merger Agreement Agent, LLC (fka K2 Industrial Services, Inc.) (n)

     Industrial Cleaning & Coatings                        

Second Lien Debt (j)

          0.00%/10.00     1/28/2019        1/28/2023        2,250        2,250        2,250        1

The Kyjen Company, LLC (dba Outward Hound)

     Consumer Products                        

Common Equity (855 shares) (j)

            12/8/2017              933        1,601        0

Level Education Group, LLC (dba CE4Less)

     Business Services                        

First Lien Debt (ak)

        (L + 6.75%) / (0.50%     7.25%/0.00     4/1/2021        4/1/2026        5,500        5,461        5,461     

Common Equity (1,000,000 units) (j)

            4/1/2021              1,000        1,000     
                  

 

 

    

 

 

    
                     6,461        6,461        1

LifeSpan Biosciences, Inc.

     Healthcare Products                        

Subordinated Debt (j)

          11.50%/0.00     3/19/2021        9/19/2026        16,000        15,924        15,924     

Common Equity (100 shares) (j)

            3/19/2021              1,000        1,000     
                  

 

 

    

 

 

    
                     16,924        16,924        4

LNG Indy, LLC (dba Kinetrex Energy)

     Oil & Gas Distribution                        

Second Lien Debt (k)

          11.50%/0.00     12/28/2016        12/31/2023        11,000        10,986        11,000     

Common Equity (500 units)

            12/28/2016              500        1,689     
                  

 

 

    

 

 

    
                     11,486        12,689        3

Midwest Transit Equipment, Inc.

     Transportation services                        

Warrant (7,192 shares) (j)(m)

            6/23/2017              180        18     

Warrant (4.79% of Junior Subordinated Notes) (j)(q)

            6/23/2017              190        256     
               

 

 

    

 

 

    
                     370        274        0

 

9


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

   Industry    Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
    Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

NGT Acquisition Holdings, LLC (dba Techniks Industries)

   Component Manufacturing                      

Common Equity (378 units) (j)

            5/24/2017              500        238        0

OMC Investors, LLC (dba Ohio Medical Corporation)

   Healthcare Products                      

Second Lien Debt

          13.00%/0.00     1/26/2021        6/30/2024        5,000        4,956        5,000     

Common Equity (5,000 units)

            1/15/2016              215        721     
                  

 

 

    

 

 

    
                     5,171        5,721        1

Palisade Company, LLC

   Information Technology Services                      

Common Equity (50 shares) (j)

            11/15/2018              500        1,010        0

Palmetto Moon, LLC

   Retail                      

Common Equity (499 units) (j)

            11/3/2016              494        513        0

Pool & Electrical Products, LLC

   Specialty Distribution                      

Second Lien Debt (j)

          11.75%/0.00     10/28/2020        4/28/2027        12,000        11,892        12,000     

Common Equity (15,000 units) (h)(j)

            10/28/2020              1,500        3,688     
                  

 

 

    

 

 

    
                     13,392        15,688        4

Power Grid Components, Inc.

   Specialty Distribution                      

Second Lien Debt (k)

          11.00%/0.50     4/12/2018        12/2/2025        17,488        17,420        17,488     

Preferred Equity (392 shares) (j)

            4/12/2018              392        535     

Preferred Equity (48 shares) (j)

            12/2/2019              48        66     

Common Equity (10,622 shares) (j)

            4/12/2018              462        585     
                  

 

 

    

 

 

    
                     18,322        18,674        4

Prime AE Group, Inc.

   Business Services                      

First Lien Debt (j)

        (L + 6.25%) / (2.00%     8.25%/0.00     11/25/2019        11/25/2024        6,500        6,369        6,500     

Preferred Equity (500,000 shares) (j)

            11/25/2019              500        568     
                  

 

 

    

 

 

    
                     6,869        7,068        2

Pugh Lubricants, LLC (n)

   Specialty Distribution                      

Common Equity (3,062 units) (h)(j)

            11/10/2016              —          23        0

Revenue Management Solutions, LLC

   Information Technology Services                      

Common Equity (113 shares)

            1/4/2017              1,125        3,982        1

Rhino Assembly Company, LLC

   Specialty Distribution                      

Second Lien Debt (k)

          12.00%/1.50     8/11/2017        2/11/2023        10,748        10,729        10,748     

Delayed Draw Commitment ($875 unfunded commitment) (i)(j)

          12.00%/1.50     8/11/2017        5/17/2022        —          —          —       

Common Equity (Class A Units) (8,864 units) (h)(j)

            8/11/2017              944        694     

Preferred Equity (Units N/A) (h)(j)

            12/10/2020              136        144     

Common Equity (Class F Units) (355 units) (h)(j)

            12/10/2020              —          —       
                  

 

 

    

 

 

    
                     11,809        11,586        3

Road Safety Services, Inc.

   Business Services                      

Second Lien Debt

          11.25%/1.00     9/18/2018        3/18/2024        10,451        10,427        10,451     

Common Equity (655 units)

            9/18/2018              621        972     
                  

 

 

    

 

 

    
                     11,048        11,423        3

Routeware, Inc.

   Information Technology Services                      

First Lien Debt (k)(aa)

        (L + 6.75%) / (1.25%     8.00%/0.00     2/7/2020        2/7/2026        16,845        16,759        16,845        4

SES Investors, LLC (dba SES Foam)

   Building Products Manufacturing                      

Second Lien Debt (h)(j)

            9/8/2016              —          —       

Common Equity (6,000 units) (h)(j)

            9/8/2016              537        2,091     
                  

 

 

    

 

 

    
                     537        2,091        1

Specialized Elevator Services Holdings, LLC

   Business Services                      

First Lien Debt (j)(y)

        (L + 5.50%) / (2.00%     7.50%/0.00     5/7/2019        5/3/2024        12,889        12,798        12,889     

Common Equity (596 units) (j)

            5/8/2019              596        586     
                  

 

 

    

 

 

    
                     13,394        13,475        3

SpendMend LLC

   Business Services                      

Common Equity (1,000,000 units)

            1/8/2018              967        2,000        1

TransGo, LLC

   Component Manufacturing                      

Common Equity (500 units) (j)

            2/28/2017              430        1,416        0

The Tranzonic Companies

   Specialty Distribution                      

Subordinated Debt (j)

          10.00%/1.00     3/27/2018        3/27/2025        7,037        7,000        7,037     

Preferred Equity (5,653 units) (j)

            3/27/2018              565        765     

Common Equity (1 units) (j)

            3/27/2018              —          1,227     
                  

 

 

    

 

 

    
                     7,565        9,029        2

UBEO, LLC

   Business Services                      

Subordinated Debt (j)

          11.00%/0.00     4/3/2018        10/3/2024        13,893        13,824        13,893     

Common Equity (705,000 units) (h)(j)

            4/3/2018              668        866     
                  

 

 

    

 

 

    
                     14,492        14,759        3

United Biologics, LLC

   Healthcare Services                      

Preferred Equity (98,377 units) (h)(j)

            4/1/2012              1,008        —       

Warrant (57,469 units) (j)(m)

            3/5/2012              566        —       
                  

 

 

    

 

 

    
                     1,574        —          0

UPG Company, LLC

   Component Manufacturing                      

First Lien Debt (j)(al)

        (L + 8.25%) / (0.50%     8.75%/0.00     6/21/2021        6/21/2024        12,000        11,906        11,906        3

Virginia Tile Company, LLC

   Specialty Distribution                      

Common Equity (17 units) (j)

            12/19/2014              342        686        0

 

10


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

Portfolio Company (a)(b)
Investment Type (c)

   Industry    Variable Index
Spread / Floor (d)
  Rate (e)
Cash/PIK
     Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

Western’s Smokehouse, LLC

   Consumer Products                       

First Lien Debt (j)(ab)

      (L + 6.50%) / (1.25%)     7.75%/0.00%        2/28/2020        12/23/2024        9,625        9,517        9,625        2

Winona Foods, Inc.

   Specialty Distribution                       

First Lien Debt (j)(am)

      (L + 12.00%) / (1.00%)     13.00%/0.00%        4/1/2021        4/1/2026        4,000        3,864        3,864     

First Lien Debt

      (L + 13.00%) / (1.00%)     14.00%/0.00%        4/1/2021        4/1/2026        7,000        6,950        6,950     
                   

 

 

    

 

 

    
                      10,814        10,814        3

Wonderware Holdings, LLC (dba CORE Business Technologies)

   Information Technology Services                       

First Lien Debt ($2,000 unfunded commitment) (k)(z)

      (L + 7.25%) / (1.00%)     8.25%/0.00%        2/10/2021        2/9/2026        6,500        6,455        6,455        2

Worldwide Express Operations, LLC

   Transportation services                       

Second Lien Debt (j)

      (L + 8.00%) / (1.00%)     9.00%/0.00%        2/27/2017        2/3/2025        20,000        19,816        20,000     

Common Equity (2,000 units) (h)(j)

             2/27/2017              1,478        3,617     
                   

 

 

    

 

 

    
                      21,294        23,617        6

Xeeva, Inc.

   Information Technology Services                       

First Lien Debt (j)

      (L + 10.50%) / (1.50%)     12.00%/0.00%        2/11/2021        2/11/2026        8,900        8,852        8,852        2
                   

 

 

    

 

 

    

Total Non-control/Non-affiliate Investments

                    $ 572,350      $ 589,651        137 % 
                   

 

 

    

 

 

    

Total Investments

                    $ 670,932      $ 743,458        173 % 
                   

 

 

    

 

 

    

 

(a)

See Note 3 to the consolidated financial statements for portfolio composition by geographic location.

(b)

Equity ownership may be held in shares or units of companies related to the portfolio companies.

(c)

All debt investments are income producing, unless otherwise indicated. Equity investments are non-income producing unless otherwise noted.

(d)

Variable rate investments bear interest at a rate indexed to LIBOR (L), which is reset monthly, bimonthly, quarterly, or semi-annually. Certain variable rate investments also include a LIBOR interest rate floor. For each investment, the Company has provided the spread over the reference rate and the LIBOR floor, if any, as of June 30, 2021.

(e)

Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of June 30, 2021. Generally, payment-in-kind interest can be paid-in-kind or all in cash.

(f)

Investment date represents the date of the initial investment in the security.

(g)

The Company’s investment portfolio is comprised entirely of debt and equity securities of privately held companies for which quoted prices falling within the categories of Level 1 and Level 2 inputs are not available. Therefore, the Company values all of its portfolio investments at fair value, as determined in good faith by the board of directors, using significant unobservable Level 3 inputs.

(h)

Investment is held by a taxable subsidiary of the Company.

(i)

The disclosed commitment represents the unfunded amount as of June 30, 2021. The Company is earning 0.50% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded.

(j)

Investment pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company’s obligations under the Credit Facility (see Note 6 to the consolidated financial statements).

(k)

The portion of the investment not held by the Funds is pledged as collateral for the Credit Facility and, as a result, is not directly available to the creditors of the Company to satisfy any obligations of the Company other than the Company’s obligations under the Credit Facility (see Note 6 to the consolidated financial statements).

(l)

As defined in the 1940 Act, the Company is deemed to be an “Affiliated Person” of this portfolio company because it owns 5% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was an Affiliated Person are detailed in Note 3 to the consolidated financial statements.

(m)

Warrants entitle the Company to purchase a predetermined number of shares or units of common equity, and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date, if any.

(n)

Investment in portfolio company that has sold its operations and is in the process of winding down.

(o)

The disclosed commitment represents the unfunded amount as of June 30, 2021. The Company is earning 0.75% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded.

(p)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.54% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(q)

Warrant entitles the Company to purchase 4.79% of the outstanding principal of Junior Subordinated Notes prior to exercise, and is non-income producing.

(r)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.15% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(s)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.05% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(t)

As defined in the 1940 Act, the Company is deemed to be both an “Affiliated Person” of and “Control” this portfolio company because it owns 25% or more of the portfolio company’s outstanding voting securities or it has the power to exercise control over the management or policies of such portfolio company. Transactions in which the issuer was both an Affiliated Person and a portfolio company that the Company is deemed to Control are detailed in Note 3 to the consolidated financial statements.

(u)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.49% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(v)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.23% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(w)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.20% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(x)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.09% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(y)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.30% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(z)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.85% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(aa)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.09% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ab)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.52% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

 

11


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2021

(in thousands, except shares)

 

(ac)

The disclosed commitment represents the unfunded amount as of June 30, 2021. The Company is earning 1.00% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment.

(ad)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.32% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ae)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.31% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(af)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.50% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ag)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.48% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ah)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 1.25% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ai)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.84% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(aj)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.11% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ak)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.83% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(al)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.56% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(am)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 8.25% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(an)

The Company sold a participating interest of approximately $13.5 million in aggregate principal amount of the portfolio company’s first lien senior secured term loan. As the transaction did not qualify as a “true sale” in accordance with U.S. generally accepted accounting principles (“GAAP”), the Company recorded a corresponding secured borrowing in the Consolidated Statements of Assets and Liabilities.

 

12


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)
Investment Type (c)

   Industry      Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
     Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

Control Investments (t)

                         

FDS Avionics Corp. (dba Flight Display Systems)

     Aerospace & Defense Manufacturing                         

Second Lien Debt

          6.00%/9.00%        11/5/2014        12/31/2021      $ 4,836      $ 4,836      $ 4,836     

Revolving Loan ($30 unfunded commitment)

          6.00%/9.00%        4/12/2018        12/31/2021        286        286        286     

Common Equity (7,478 shares) (j)

             11/10/2017              748        —       

Preferred Equity (2,550 shares)

             12/26/2019              2,550        2,269     
                   

 

 

    

 

 

    
                      8,420        7,391        2

US GreenFiber, LLC

     Building Products Manufacturing                         

Second Lien Debt (j)

          8.00%/5.00%        7/3/2014        8/30/2024        15,382        15,378        13,078     

Second Lien Debt (j)

          8.50%/6.50%        11/9/2018        8/30/2024        5,028        5,028        5,183     

Second Lien Debt (j)

          8.50%/6.50%        8/10/2020        8/30/2024        2,533        2,533        2,601     

Common Equity (2,522 units) (h)(j)

             7/3/2014              586        —       

Common Equity (425,508 units) (j)

             8/30/2019              1        —       

Common Equity (1,022,813 units) (h)(j)

             7/1/2020              1,023        —       
                   

 

 

    

 

 

    
                      24,549        20,862        5
                   

 

 

    

 

 

    

Total Control Investments

                    $ 32,969      $
 
 
28,253
 
 
     7 % 
                   

 

 

    

 

 

    

Affiliate Investments (l)

                         

FAR Research Inc. (n)

     Specialty Chemicals                         

Common Equity (1,396 units)

             3/31/2014            $ —        $ 28        0

Fiber Materials, Inc. (n)

     Aerospace & Defense Manufacturing                         

Common Equity (10 units)

             11/30/2016              —          41        0

Medsurant Holdings, LLC

     Healthcare Services                         

Second Lien Debt (j)

          14.00%/0.00%        12/18/2015        3/10/2022        8,031        8,028        8,091     

Preferred Equity (63,331 units) (h)(j)

             4/12/2011              673        620     

Warrant (252,588 units) (h)(j)(m)

             4/12/2011              2,258        2,249     
                   

 

 

    

 

 

    
                      10,959        10,960        3

Mirage Trailers LLC

     Utility Equipment Manufacturing                         

Second Lien Debt (k)

        (L + 10.00%) / (1.00%)       11.00%/5.00%        11/25/2015        11/25/2021        6,410        6,483        6,410     

Common Equity (2,500,000 shares) (o)

             11/25/2015              2,188        84     
                   

 

 

    

 

 

    
                      8,671        6,494        2

Pfanstiehl, Inc.

     Healthcare Products                         

Common Equity (4,250 units) (j)

             3/29/2013              425        33,505        8

Pinnergy, Ltd.

     Oil & Gas Services                         

Common Equity—Class A-2 (42,500 units) (j)

             10/13/2016              3,000        20,589        5

Steward Holding LLC (dba Steward Advanced Materials)

     Aerospace & Defense Manufacturing                         

Second Lien Debt

          12.00%/1.50%        11/12/2015        10/31/2021        7,783        7,781        7,783     

Common Equity (1,000,000 units)

             11/12/2015              1,000        1,994     
                   

 

 

    

 

 

    
                      8,781        9,777        2
                   

 

 

    

 

 

    

Total Affiliate Investments

                    $ 31,836      $ 81,394        20 % 
                   

 

 

    

 

 

    

 

13


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b) Investment Type (c)

   Industry      Variable Index
Spread / Floor (d)
    Rate (e)
Cash/PIK
     Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

Non-control/Non-affiliate Investments

                         

Frontline Food Services, LLC

                         

(f/k/a Accent Food Services, LLC)

     Vending Equipment Manufacturing                         

Preferred Equity (Class A Units) (46 units) (j)

             12/31/2020            $ 2,000      $ 2,000     

Common Equity (Class B Units) (124 units) (j)

             12/31/2020              —          —       

Preferred Equity (Class C Units) (100 units) (j)

             12/31/2020              —          —       
                   

 

 

    

 

 

    
                      2,000        2,000        0

Allied 100 Group, Inc.

     Healthcare Products                         

Subordinated Debt (k)

          11.25%/0.00%        7/31/2019        5/26/2023        21,500        21,432        21,500     

Common Equity (625,000 units) (j)

             11/26/2014              625        1,087     
                   

 

 

    

 

 

    
                      22,057        22,587        5

Allredi, LLC (fka Marco Group International OpCo, LLC)

     Industrial Cleaning & Coatings                         

Second Lien Debt

          10.50%/1.75%        3/2/2020        9/2/2026        10,080        9,993        7,761     

Common Equity (570,636 units) (h)(j)

             7/21/2017              637        275     
                   

 

 

    

 

 

    
                      10,630        8,036        2

Alzheimer’s Research and Treatment Center, LLC

     Healthcare Services                         

First Lien Debt (j)(w)

        (L + 5.75%) / (2.00%)       7.75%/0.00%        10/23/2018        10/23/2023        6,500        6,471        6,584     

Common Equity (500 units) (h)(j)

             10/23/2018              500        766     
                   

 

 

    

 

 

    
                      6,971        7,350        2

American AllWaste LLC (dba WasteWater Transport Services)

     Environmental Industries                         

Second Lien Debt (j)

        (L + 11.00%) / (2.00%)       13.00%/0.00%        5/31/2018        11/30/2023        17,503        17,434        17,503     

Preferred Equity (500 units) (h)(j)

             5/31/2018              500        241     

Preferred Equity (207 units) (h)(j)

             8/6/2019              250        226     

Preferred Equity (141 units) (h)(j)

             11/2/2020              171        171     
                   

 

 

    

 

 

    
                      18,355        18,141        4

Applied Data Corporation

     Information Technology Services                         

First Lien Debt (v)

        (L + 6.25%) / (1.50%)       7.75%/0.00%        11/6/2020        11/6/2025        8,000        7,949        7,949     

Common Equity (22 units)

             11/6/2020              —          —       

Preferred Equity (1,070,614 units)

             11/6/2020              1,071        1,071     
                   

 

 

    

 

 

    
                      9,020        9,020        2

Argo Turboserve Corporation

     Business Services                         

Second Lien Debt (j)

        (L + 10.75%) / (2.00%)       12.75%/0.00%        12/26/2018        6/28/2023        13,031        12,990        13,031        3

AVC Investors, LLC (dba Auveco)

     Specialty Distribution                         

Second Lien Debt (k)

          11.50%/0.00%        1/3/2018        7/3/2023        22,500        22,448        22,500     

Common Equity (5,000 units) (j)

             1/3/2018              487        464     
                   

 

 

    

 

 

    
                      22,935        22,964        6

B&B Roadway and Security Solutions, LLC

     Component Manufacturing                         

Second Lien Debt

          11.25%/4.00%        2/27/2018        1/1/2022        10,910        10,890        10,782     

Common Equity (50,000 units) (h)(j)

             2/27/2018              497        —       
                   

 

 

    

 

 

    
                      11,387        10,782        3

Bandon Fitness (Texas), Inc.

     Retail                         

First Lien Debt (j)(z)

        (L + 6.50%) / (2.25%)       8.75%/0.25%        8/9/2019        8/9/2024        14,680        14,289        15,591     

Common Equity (545,810 units) (j)

             8/9/2019              931        554     
                   

 

 

    

 

 

    
                      15,220        16,145        4

BCM One Group Holdings, Inc.

     Information Technology Services                         

Subordinated Debt (k)

          11.00%/0.00%        1/3/2019        7/3/2024        30,000        29,887        30,000     

Common Equity (1,281 shares)

             1/3/2019              48        458     

Preferred Equity (74 shares)

             1/3/2019              736        737     
                   

 

 

    

 

 

    
                      30,671        31,195        8

Bedford Precision Parts LLC

     Specialty Distribution                         

First Lien Debt (j)(s)

        (L + 6.25%) / (2.00%)       8.25%/0.00%        3/12/2019        3/12/2024        4,531        4,507        4,531     

Common Equity (500,000 units) (h)(j)

             3/12/2019              500        263     
                   

 

 

    

 

 

    
                      5,007        4,794        1

Cardboard Box LLC (dba Anthony’s Coal Fired Pizza)

     Restaurants                         

Common Equity (521,021 units) (j)

             12/15/2015              521        —       

Preferred Equity (1,043,133 units) (j)

             12/6/2019              96        34     
                   

 

 

    

 

 

    
                      617        34        0

Combined Systems, Inc.

     Aerospace & Defense Manufacturing                         

First Lien Debt

        (L + 10.00%) / (2.00%)       12.00%/0.00%        1/31/2020        1/31/2025        7,600        7,553        7,600     

Revolving Loan ($1,050 unfunded commitment) (j)(ac)

        (L + 9.00%) / (2.00%)       11.00%/0.00%        1/31/2020        1/31/2025        2,950        2,930        2,950     
                   

 

 

    

 

 

    
                      10,483        10,550        3

Comply365, LLC

     Aerospace & Defense Manufacturing                         

First Lien Debt (ad)

        (L + 8.00%) / (1.00%)       9.00%/0.00%        12/11/2020        12/11/2025        10,000        9,855        9,855     

Common Equity (1,000,000 units)

             12/11/2020              1,000        1,000     
                   

 

 

    

 

 

    
                      10,855        10,855        3

CRS Solutions Holdings, LLC (dba CRS Texas)

     Business Services                         

Second Lien Debt

          10.50%/1.50%        3/14/2018        4/30/2024        11,305        11,270        11,305     

Common Equity (450,382 units) (h)(j)

             3/14/2018              488        321     
                   

 

 

    

 

 

    
                      11,758        11,626        3

Dataguise, Inc.

     Information Technology Services                         

First Lien Debt (j)

          11.00%/0.00%        12/31/2020        12/31/2023        20,000        19,900        19,900     

Common Equity (909 shares) (j)

             12/31/2020              1,500        1,500     
                   

 

 

    

 

 

    
                      21,400        21,400        5

Diversified Search LLC

     Business Services                         

First Lien Debt (k)(r)

        (L + 8.00%) / (1.75%)       9.75%/0.00%        2/7/2019        2/7/2024        17,355        17,159        17,355     

Common Equity (573 units) (h)(j)

             2/7/2019              593        494     
                   

 

 

    

 

 

    
                      17,752        17,849        4

EBL, LLC (EbLens)

     Retail                         

Second Lien Debt (j)(p)

          12.00%/1.00%        7/13/2017        1/13/2023        9,253        9,214        5,454     

Common Equity (75,000 units) (j)

             7/13/2017              750        —       
                   

 

 

    

 

 

    
                      9,964        5,454        1

 

14


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b) Investment Type (c)

   Industry    Variable Index
Spread / Floor (d)
  Rate (e)
Cash/PIK
     Investment
Date (f)
     Maturity      Principal
Amount
     Cost      Fair
Value (g)
     Percent of
Net Assets
 

ECM Industries, LLC

   Component Manufacturing                       

Subordinated Debt (j)

          11.50%/0.00%        4/30/2020        5/23/2026        11,500        11,295        11,500     

Common Equity (1,000,000 units) (h)(j)

             4/30/2020              1,000        1,562     
                   

 

 

    

 

 

    
                      12,295        13,062        3

Elements Brands, LLC

   Consumer Products                       

First Lien Debt

          12.25%/0.00%        12/31/2020        12/31/2025        6,000        5,967        5,967     

Revolving Loan ($838 unfunded commitment) (i)(j)

          12.25%/0.00%        12/31/2020        12/31/2025        2,162        2,146        2,146     
                   

 

 

    

 

 

    
                      8,113        8,113        2

French Transit, LLC

   Consumer Products                       

First Lien Debt (j)

      (L + 10.00%) / (2.25%)     12.25%/0.00%        6/21/2019        6/21/2024        4,116        4,088        4,116        1

Global Plasma Solutions, Inc.

   Component Manufacturing                       

Common Equity (947 shares) (j)

             9/21/2018              —          9,995        2

Gurobi Optimization, LLC

   Information Technology Services                       

Common Equity (3 shares)

             12/19/2017              592        1,660        0

Haematologic Technologies, Inc.

   Healthcare Services                       

First Lien Debt (x)

      (L + 8.25%) / (2.00%)     10.25%/0.00%        10/11/2019        10/11/2024        5,500        5,469        5,500     

Common Equity (549 units) (h)(j)

             10/11/2019              549        255     
                   

 

 

    

 

 

    
                      6,018        5,755        1

Hallmark Health Care Solutions, Inc.

   Healthcare Services                       

First Lien Debt (j)(ae)

      (L + 7.25%) / (1.50%)     8.75%/0.00%        12/4/2020        12/4/2025        8,500        8,437        8,437     

Common Equity (750,000 units) (j)

             12/4/2020              750        750     
                   

 

 

    

 

 

    
                      9,187        9,187        2

Healthfuse, LLC

   Healthcare Services                       

First Lien Debt (af)

      (L + 7.25%) / (1.00%)     8.25%/0.00%        11/13/2020        11/13/2025        6,000        5,960        5,960     

Preferred Equity (197,980 units)

             11/13/2020              750        750     
                   

 

 

    

 

 

    
                      6,710        6,710        2

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

   Component Manufacturing                       

Second Lien Debt (j)

          11.50%/1.50%        9/23/2016        12/31/2019        10,301        10,301        8,878     

Revolving Loan (j)

      (L + 6.50%) / (0.00%)     6.65%/0.00%        12/20/2019        12/15/2019        5,962        5,962        5,962     

First Lien Debt (j)

      (L + 6.95%) / (0.00%)     7.10%/0.00%        12/20/2019        12/15/2019        5,092        5,092        5,092     

Preferred Equity (1,000,000 units) (h)(j)

             4/18/2018              1,000        —       

Common Equity (72,507 units) (h)(j)