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 March 31, 2020

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
5.875% Notes due 2023    FDUSL    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 ☐

(Do not check if a smaller reporting 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 April 27, 2020, 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
Item 1.   Financial Statements.   3
  Consolidated Statements of Assets and Liabilities — March 31, 2020 (unaudited) and December 31, 2019   3
  Consolidated Statements of Operations — Three Months Ended March 31, 2020 (unaudited) and 2019 (unaudited)   4
  Consolidated Statements of Changes in Net Assets — Three Months Ended March 31, 2020 (unaudited) and 2019 (unaudited)   5
  Consolidated Statements of Cash Flows — Three months Ended March 31, 2020 (unaudited) and 2019 (unaudited)   6
  Consolidated Schedules of Investments — March 31, 2020 (unaudited) and December 31, 2019   7
  Notes to Consolidated Financial Statements (unaudited)   17
Item 2.   Management’s Discussion and Analysis of Financial Condition and Results of Operations.   37
Item 3.   Quantitative and Qualitative Disclosures About Market Risk.   52
Item 4.   Controls and Procedures.   53
PART II — OTHER INFORMATION
Item 1.   Legal Proceedings.   54
Item 1A.   Risk Factors.   54
Item 2.   Unregistered Sales of Equity Securities and Use of Proceeds.   57
Item 3.   Defaults Upon Senior Securities.   58
Item 4.   Mine Safety Disclosures.   58
Item 5.   Other Information.   58
Item 6.   Exhibits.   59
Signatures   60
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)

 

    March 31, 2020
(unaudited)
    December 31,
2019
 

ASSETS

   

Investments, at fair value:

   

Control investments (cost: $28,145 and $27,718, respectively)

  $ 20,551     $ 21,820  

Affiliate investments (cost: $41,527 and $56,328, respectively)

    67,504       121,555  

Non-control/non-affiliate  investments (cost: $661,438 and $620,453, respectively)

    630,885       623,544  
 

 

 

   

 

 

 

Total investments, at fair value (cost: $731,110 and $704,499, respectively)

    718,940       766,919  

Cash and cash equivalents

    27,225       15,012  

Interest receivable

    5,442       6,331  

Prepaid expenses and other assets

    935       1,177  
 

 

 

   

 

 

 

Total assets

  $ 752,542     $ 789,439  
 

 

 

   

 

 

 

LIABILITIES

   

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

  $ 152,922     $ 153,802  

Public Notes, net of deferred financing costs (Note 6)

    177,227       176,901  

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

    33,982       23,899  

Accrued interest and fees payable

    2,222       3,505  

Base management fee payable – due to affiliate

    3,272       3,334  

Income incentive fee payable – due to affiliate

    1,855       1,497  

Capital gains incentive fee payable – due to affiliate

    3,837       12,715  

Administration fee payable and other – due to affiliate

    647       487  

Taxes payable

    123       547  

Accounts payable and other liabilities

    921       442  
 

 

 

   

 

 

 

Total liabilities

    377,008       377,129  
 

 

 

   

 

 

 

Commitments and contingencies (Note 7)

   

NET ASSETS

   

Common stock, $0.001 par value (100,000,000 shares authorized, 24,437,400 and 24,463,119 shares issued and outstanding at March 31, 2020 and December 31, 2019, respectively)

    24       24  

Additional paid-in capital

    365,793       366,061  

Total distributable earnings

    9,717       46,225  
 

 

 

   

 

 

 

Total net assets

    375,534       412,310  
 

 

 

   

 

 

 

Total liabilities and net assets

  $ 752,542     $ 789,439  
 

 

 

   

 

 

 

Net asset value per common share

  $ 15.37     $ 16.85  
 

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)

 

     Three Months Ended
March 31,
 
     2020     2019  

Investment Income:

    

Interest income

    

Control investments

   $ 432     $ 282  

Affiliate investments

     983       1,520  

Non-control/non-affiliate  investments

     16,052       13,450  
  

 

 

   

 

 

 

Total interest income

     17,467       15,252  

Payment-in-kind interest income

    

Control investments

     425       1,237  

Affiliate investments

     40       83  

Non-control/non-affiliate  investments

     616       1,310  
  

 

 

   

 

 

 

Total payment-in-kind  interest income

     1,081       2,630  

Dividend income

    

Control investments

     —         —    

Affiliate investments

     107       368  

Non-control/non-affiliate  investments

     29       (73
  

 

 

   

 

 

 

Total dividend income

     136       295  

Fee income

    

Control investments

     —         349  

Affiliate investments

     —         22  

Non-control/non-affiliate  investments

     1,282       1,728  
  

 

 

   

 

 

 

Total fee income

     1,282       2,099  

Interest on idle funds and other income

     17       54  
  

 

 

   

 

 

 

Total investment income

     19,983       20,330  
  

 

 

   

 

 

 

Expenses:

    

Interest and financing expenses

     4,960       3,724  

Base management fee

     3,272       2,871  

Incentive fee - income

     1,855       2,485  

Incentive fee - capital gains

     (8,878     355  

Administrative service expenses

     466       399  

Professional fees

     553       590  

Other general and administrative expenses

     335       305  
  

 

 

   

 

 

 

Total expenses

     2,563       10,729  
  

 

 

   

 

 

 

Net investment income before income taxes

     17,420       9,601  

Income tax provision (benefit)

     3       2  
  

 

 

   

 

 

 

Net investment income

     17,417       9,599  
  

 

 

   

 

 

 

Net realized and unrealized gains (losses) on investments:

    

Net realized gains (losses):

    

Control investments

     —         (1,268

Affiliate investments

     24,332       35  

Non-control/non-affiliate  investments

     7,046       (358
  

 

 

   

 

 

 

Total net realized gain (loss) on investments

     31,378       (1,591
  

 

 

   

 

 

 

Income tax (provision) benefit from realized gains on investments

     (1,051     8  

Net change in unrealized appreciation (depreciation):

    

Control investments

     (1,696     1,637  

Affiliate investments

     (39,253     2,759  

Non-control/non-affiliate  investments

     (33,641     (851
  

 

 

   

 

 

 

Total net change in unrealized appreciation (depreciation) on investments

     (74,590     3,545  
  

 

 

   

 

 

 

Net gain (loss) on investments

     (44,263     1,962  

Realized losses on extinguishment of debt

     (125     (189
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ (26,971   $ 11,372  
  

 

 

   

 

 

 

Per common share data:

    

Net investment income per share-basic and diluted

   $ 0.71     $ 0.39  
  

 

 

   

 

 

 

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

   $ (1.10   $ 0.46  
  

 

 

   

 

 

 

Dividends declared per share

   $ 0.39     $ 0.39  
  

 

 

   

 

 

 

Weighted average number of shares outstanding — basic and diluted

     24,457,634       24,463,119  
  

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

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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, 2018

     24,463,119     $ 24      $ 366,688     $ 36,273     $ 402,985  

Net investment income

     —         —          —         9,599       9,599  

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

     —         —          —         (1,583     (1,583

Net unrealized appreciation (depreciation) on investments

     —         —          —         3,545       3,545  

Realized losses on extinguishment of debt

     —         —          —         (189     (189

Dividends declared

     —         —          —         (9,541     (9,541
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

Balances at March 31, 2019

     24,463,119     $ 24      $ 366,688     $ 38,104     $ 404,816  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

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     —          (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  
  

 

 

   

 

 

    

 

 

   

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

     Three Months Ended March 31,  
     2020     2019  

Cash Flows from Operating Activities:

    

Net increase (decrease) in net assets resulting from operations

   $ (26,971   $ 11,372  

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

    

Net change in unrealized (appreciation) depreciation on investments

     74,590       (3,545

Net realized (gain) loss on investments

     (31,378     1,591  

Interest and dividend income paid-in-kind

     (1,081     (2,630

Accretion of original issue discount

     (87     (13

Accretion of loan origination fees

     (260     (367

Purchase of investments

     (68,192     (80,473

Proceeds from sales and repayments of investments

     73,772       57,352  

Proceeds from loan origination fees

     615       586  

Realized losses on extinguishment of debt

     125       189  

Amortization of deferred financing costs

     550       415  

Changes in operating assets and liabilities:

    

Interest receivable

     889       220  

Prepaid expenses and other assets

     224       482  

Accrued interest and fees payable

     (1,283     (1,095

Base management fee payable – due to affiliate

     (63     (56

Income incentive fee payable – due to affiliate

     358       (300

Capital gains incentive fee payable – due to affiliate

     (8,878     355  

Administration fee payable and other – due to affiliate

     160       (99

Taxes payable

     (424     (588

Accounts payable and other liabilities

     480       93  
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     13,146       (16,511
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds received from SBA debentures

     6,000       —    

Repayments of SBA debentures

     (7,000     (19,750

Proceeds received from issuance of Public Notes

     —         69,000  

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

     10,000       (36,500

Payment of deferred financing costs

     (128     (2,504

Dividends paid to stockholders, including expenses

     (9,537     (9,541

Repurchases of common stock under Stock Repurchase Program

     (268     —    
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (933     705  
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     12,213       (15,806

Cash and cash equivalents:

    

Beginning of period

     15,012       42,015  
  

 

 

   

 

 

 

End of period

   $ 27,225     $ 26,209  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash payments for interest

   $ 5,693     $ 4,404  

Cash payments for taxes, net of tax refunds received

   $ 1,478     $ 582  

See Notes to Consolidated Financial Statements (unaudited).

 

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FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)       Variable Index     Rate (e)     Investment           Principal           Fair     Percent of  

Investment Type (c)        

 

Industry

  Spread / Floor (d)     Cash/PIK     Date (f)     Maturity     Amount     Cost     Value (g)     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     $ 4,519     $ 4,519     $ 3,971    

Revolving Loan ($30 commitment)

        6.00%/9.00%       4/12/2018       12/31/2021       267       267       267    

Common Equity (7,478 shares) (j)

          11/10/2017           748       —      

Preferred Equity (2,550 shares)

          12/26/2019           2,550       —      
             

 

 

   

 

 

   
                8,084       4,238       1

US GreenFiber, LLC

  Building Products Manufacturing                

Second Lien Debt (k)

        7.00%/6.00%       7/3/2014       8/30/2024       14,727       14,721       11,558    

Second Lien Debt (k)

        7.50%/7.50%       11/9/2018       8/30/2024       4,754       4,754       4,755    

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

          7/3/2014           585       —      

Common Equity (425,508 units) (j)

          8/30/2019           1       —      
             

 

 

   

 

 

   
                20,061       16,313       4
             

 

 

   

 

 

   

Total Control Investments

              $ 28,145     $ 20,551       5
             

 

 

   

 

 

   

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           —         —         0

Medsurant Holdings, LLC

  Healthcare Services                

Second Lien Debt

        14.75%/0.00%       12/18/2015       6/30/2020       8,823       8,818       8,823    

Preferred Equity (63,331 units) (h)

          4/12/2011           673       711    

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

          4/12/2011           2,258       2,502    
             

 

 

   

 

 

   
                11,749       12,036       3

Mirage Trailers LLC

  Utility Equipment Manufacturing                

Second Lien Debt (k)(ad)

      (L + 8.50%) /(1.00%)       10.02%/4.50%       11/25/2015       11/25/2020       6,250       6,277       5,297    

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

          11/25/2015           2,185       —      
             

 

 

   

 

 

   
                8,462       5,297       1

Pfanstiehl, Inc.

  Healthcare Products                

Subordinated Debt

        10.50%/0.00%       3/29/2013       9/29/2022       6,208       6,202       6,208    

Common Equity (4,250 units) (j)

          3/29/2013           425       14,364    
             

 

 

   

 

 

   
                6,627       20,572       6

Pinnergy, Ltd.

  Oil & Gas Services                

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

          10/13/2016           3,000       16,602    

Common Equity - Class B (1,000 units) (k)

          10/13/2016           3,000       3,185    
             

 

 

   

 

 

   
                6,000       19,787       5

Steward Holding LLC (dba Steward Advanced Materials)

  Aerospace & Defense Manufacturing                

Second Lien Debt

        12.00%/1.50%       11/12/2015       5/12/2021       7,696       7,689       7,696    

Common Equity (1,000,000 units)

          11/12/2015           1,000       2,088    
             

 

 

   

 

 

   
                8,689       9,784       3
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 41,527     $ 67,504       18
             

 

 

   

 

 

   

 

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FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)       Variable Index     Rate (e)     Investment           Principal           Fair     Percent of  

Investment Type (c)        

 

Industry

  Spread / Floor (d)     Cash/PIK     Date (f)     Maturity     Amount     Cost     Value (g)     Net Assets  

Non-control/Non-affiliate Investments

                 

Accent Food Services, LLC

  Vending Equipment Manufacturing                

Second Lien Debt (k)(p)

        0.00%/17.00%       11/30/2016       5/30/2022     $ 35,410     $ 35,328     $ 25,717    

Common Equity (7,885 units) (h)(j)

          11/30/2016           800       —      
             

 

 

   

 

 

   
                36,128       25,717       7

Allied 100 Group, Inc.

  Healthcare Products                

Subordinated Debt (k)

        11.25%/0.00%       7/31/2019       5/26/2023       21,500       21,411       21,500    

Common Equity (625,000 units) (j)

          11/26/2014           625       1,061    
             

 

 

   

 

 

   
                22,036       22,561       6

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       6,464       6,500    

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

          10/23/2018           500       667    
             

 

 

   

 

 

   
                6,964       7,167       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       17,416       17,503    

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

          5/31/2018           500       176    

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

          8/6/2019           250       250    
             

 

 

   

 

 

   
                18,166       17,929       5

Argo Turboserve Corporation

  Business Services                

Second Lien Debt (j)

      (L + 9.75%) / (2.00%)       11.75%/0.00%       12/26/2018       6/28/2023       13,875       13,821       13,875       4

AVC Investors, LLC (dba Auveco)

  Specialty Distribution                

Second Lien Debt (k)

        11.50%/0.00%       1/3/2018       7/3/2023       22,500       22,432       22,259    

Common Equity (5,000 units) (j)

          1/3/2018           490       492    
             

 

 

   

 

 

   
                22,922       22,751       6

B&B Roadway and Security Solutions, LLC

  Component Manufacturing                

Second Lien Debt

        10.50%/3.50%       2/27/2018       8/27/2023       10,586       10,551       9,630    

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

          2/27/2018           500       —      
             

 

 

   

 

 

   
                11,051       9,630       2

Bandon Fitness (Texas), Inc.

  Retail                

First Lien Debt (j)(z)

      (L + 6.00%) / (2.25%)       8.25%/0.00%       8/9/2019       8/9/2024       14,180       13,710       12,505    

Common Equity (497,549 units) (j)

          8/9/2019           849       —      
             

 

 

   

 

 

   
                14,559       12,505       3

BCC Group Holdings, Inc.

  Information Technology Services                

Subordinated Debt

        11.00%/1.00%       1/28/2019       4/11/2023       18,212       18,083       18,212    

Common Equity (451 shares)

          1/28/2019           232       165    

Preferred Equity (14 shares)

          1/28/2019           143       143    
             

 

 

   

 

 

   
                18,458       18,520       5

BCM One Group Holdings, Inc.

  Information Technology Services                

Subordinated Debt (k)

        11.00%/0.00%       1/3/2019       7/3/2024       29,000       28,875       29,000    

Common Equity (1,143 shares)

          1/3/2019           1       —      

Preferred Equity (66 shares)

          1/3/2019           665       619    
             

 

 

   

 

 

   
                29,541       29,619       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       5,000       4,971       5,000    

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

          3/12/2019           500       403    
             

 

 

   

 

 

   
                5,471       5,403       1

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

  Restaurants                

Common Equity (521,021 units) (j)

          12/15/2015           521       —      

Preferred Equity (99,889 units) (j)

          12/6/2019           49       127    
             

 

 

   

 

 

   
                570       127       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       7,900       7,844       7,844    

Revolving Loan ($0 commitment) (j)(ac)

      (L + 9.00%) / (2.00%)       11.00%/0.00%       1/31/2020       1/31/2025       4,000       3,976       3,976    
             

 

 

   

 

 

   
                11,820       11,820       3

ControlScan, Inc.

  Information Technology Services                

Subordinated Debt (j)

        11.00%/0.00%       7/28/2017       1/28/2023       6,750       6,733       6,750    

Common Equity (1,852 shares) (j)

          7/28/2017           2       222    

Preferred Equity (50 shares) (j)

          7/28/2017           498       498    
             

 

 

   

 

 

   
                7,233       7,470       2

CRS Solutions Holdings, LLC (dba CRS Texas)

  Business Services                

Second Lien Debt

        10.50%/1.00%       3/14/2018       4/30/2024       11,190       11,147       10,779    

Common Equity (375,000 units) (h)(j)

          3/14/2018           375       222    
             

 

 

   

 

 

   
                11,522       11,001       3

Diversified Search LLC

  Business Services                

First Lien Debt (k)(r)

      (L + 6.00%) / (1.75%)       7.94%/0.00%       2/7/2019       2/7/2024       17,355       17,112       16,917    

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

          2/7/2019           593       375    
             

 

 

   

 

 

   
                17,705       17,292       5

EBL, LLC (EbLens)

  Retail                

Second Lien Debt (j)(p)

        12.00%/1.00%       7/13/2017       1/13/2023       9,197       9,146       7,235    

Common Equity (75,000 units) (j)

          7/13/2017           750       —      
             

 

 

   

 

 

   
                9,896       7,235       2

French Transit, LLC

  Consumer Products                

First Lien Debt (j)

      (L + 9.00%) / (2.25%)       11.25%/0.00%       6/21/2019       6/21/2024       4,100       4,066       4,100    

Revolving Loan ($1,000 commitment) (j)(u)

      (L + 9.00%) / (2.25%)       11.25%/0.00%       6/21/2019       6/21/2024       —         (4     —      
             

 

 

   

 

 

   
                4,062       4,100       1

Global Plasma Solutions, Inc.

  Component Manufacturing                

First Lien Debt (j)(v)

      (L + 5.00%) / (2.00%)       7.00%/0.00%       9/21/2018       9/21/2023       6,838       6,784       6,838    

Preferred Equity (947 shares) (j)

          9/21/2018           360       407    

Common Equity (947 shares) (j)

          9/21/2018           15       224    
             

 

 

   

 

 

   
                7,159       7,469       2

Gurobi Optimization, LLC

  Information Technology Services                

Common Equity (3 shares)

          12/19/2017           750       1,595       0

 

8


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index     Rate (e)   Investment         Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)     Cash/PIK   Date (f)   Maturity     Amount     Cost     Value (g)     Net Assets  

Haematologic Technologies, Inc.

    Healthcare Services                  

First Lien Debt (x)

      (L + 7.25%) / (2.00%)     9.25%/0.00%   10/11/2019     10/11/2024     $ 5,500     $ 5,463     $ 5,463    

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

        10/11/2019         500       201    
             

 

 

   

 

 

   
                5,963       5,664       1

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

    Component Manufacturing                  

Second Lien Debt

      11.50%/1.50%   9/23/2016     12/31/2019       10,162       10,162       8,660    

Revolving Loan (j)

      (L + 6.50%) / (0.00%)     8.08%/0.00%   12/20/2019     12/15/2019       5,962       5,962       5,962    

First Lien Debt (j)

      (L + 6.95%) / (0.00%)     8.53%/0.00%   12/20/2019     12/15/2019       6,243       6,243       6,243    

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

        4/18/2018         1,000       —      

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

        9/23/2016         473       —      
             

 

 

   

 

 

   
                23,840       20,865       6

Hoonuit, LLC

    Information Technology Services                  

First Lien Debt

      (L + 9.25%) / (2.25%)     11.50%/0.00%   6/7/2019     6/7/2024       7,165       7,124       7,166    

Preferred Equity (610 units) (h)(j)

        6/20/2019     1/1/2022         250       260    
             

 

 

   

 

 

   
                7,374       7,426       2

Hub Acquisition Sub, LLC (dba Hub Pen)

    Promotional products                  

Second Lien Debt (k)

      12.25%/0.00%   3/23/2016     9/23/2021       25,000       24,955       22,329    

Common Equity (3,750 units)

        3/23/2016         131       556    
             

 

 

   

 

 

   
                25,086       22,885       6

IBH Holdings, LLC (fka Inflexxion, Inc.)

    Business Services                  

Common Equity (150,000 units)

        6/20/2018         —         —         0

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

    Industrial Cleaning & Coatings                  

Second Lien Debt

      0.00%/10.00%   1/28/2019     1/28/2021       1,984       1,984       1,984       0

The Kyjen Company, LLC (dba Outward Hound)

    Consumer Products                  

Second Lien Debt (k)

      12.00%/0.00%   12/8/2017     6/8/2024       15,000       14,952       13,740    

Common Equity (765 shares) (j)

        12/8/2017         765       552    
             

 

 

   

 

 

   
                15,717       14,292       4

LNG Indy, LLC (dba Kinetrex Energy)

    Oil & Gas Distribution                  

Second Lien Debt (k)

      11.50%/1.50%   12/28/2016     11/12/2021       10,012       9,977       9,977    

Common Equity (500 units)

        12/28/2016         500       527    
             

 

 

   

 

 

   
                10,477       10,504       3

Marco Group International OpCo, LLC

    Industrial Cleaning & Coatings                  

Second Lien Debt

      10.50%/0.75%   3/2/2020     9/2/2026       10,006       9,908       9,908    

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

        7/21/2017         637       578    
             

 

 

   

 

 

   
                10,545       10,486       3

Mesa Line Services, LLC

    Utilities: Services                  

Second Lien Debt (j)

      10.50%/1.75%   11/30/2017     8/1/2024       17,297       17,214       17,297    

Common Equity (981 shares) (j)

        11/30/2017         1,148       758    
             

 

 

   

 

 

   
                18,362       18,055       5

Microbiology Research Associates, Inc.

    Healthcare Services                  

Subordinated Debt

      11.00%/1.50%   5/13/2015     3/13/2022       8,964       8,955       8,964    

Common Equity (812,866 units) (j)

        5/13/2015         969       920    
             

 

 

   

 

 

   
                9,924       9,884       3

Midwest Transit Equipment, Inc.

    Transportation services                  

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

        6/23/2017         180       392    

Warrant (9.59% of Junior Subordinated Notes) (j)(q)

        6/23/2017         191       237    
             

 

 

   

 

 

   
                371       629       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

    Component Manufacturing                  

Common Equity (378 units) (j)

        5/24/2017         500       123       0

OMC Investors, LLC (dba Ohio Medical Corporation)

    Healthcare Products                  

Second Lien Debt

      12.00%/0.00%   1/15/2016     7/15/2021       10,000       9,976       10,000    

Common Equity (5,000 units)

        1/15/2016         500       406    
             

 

 

   

 

 

   
                10,476       10,406       3

Palisade Company, LLC

    Information Technology Services                  

Subordinated Debt (j)

      11.75%/0.00%   11/15/2018     5/15/2024       6,500       6,476       6,500    

Common Equity (50 shares) (j)

        11/15/2018         500       451    
             

 

 

   

 

 

   
                6,976       6,951       2

Palmetto Moon, LLC

    Retail                  

First Lien Debt

      11.50%/2.50%   11/3/2016     10/31/2021       4,994       4,982       3,985    

Common Equity (499 units) (j)

        11/3/2016         494       —      
             

 

 

   

 

 

   
                5,476       3,985       1

Power Grid Components, Inc.

    Specialty Distribution                  

Second Lien Debt (k)

      11.00%/1.00%   4/12/2018     12/2/2025       22,262       22,175       22,262    

Preferred Equity (392 shares) (j)

        4/12/2018         392       471    

Preferred Equity (48 shares) (j)

        12/2/2019         48       58    

Common Equity (10,622 shares) (j)

        4/12/2018         462       691    
             

 

 

   

 

 

   
                23,077       23,482       6

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       7,333       7,154       7,154    

Preferred Equity (500,000 shares) (j)

        11/25/2019         500       500    
             

 

 

   

 

 

   
                7,654       7,654       2

Pugh Lubricants, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.25%/0.00%   11/10/2016     5/10/2022       26,581       26,514       26,581    

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

        11/10/2016         288       534    
             

 

 

   

 

 

   
                26,802       27,115       7

Revenue Management Solutions, LLC

    Information Technology Services                  

Common Equity (1,125,000 shares)

        1/4/2017         1,125       2,672       1

 

9


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index     Rate (e)     Investment           Principal           Fair     Percent of  

Investment Type (c)        

  Industry     Spread / Floor (d)     Cash/PIK     Date (f)     Maturity     Amount     Cost     Value (g)     Net Assets  

Rhino Assembly Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

        12.00%/1.00%       8/11/2017       2/11/2023     $ 11,469     $ 11,434     $ 10,295    

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

        12.00%/1.00%       8/11/2017       5/17/2022       —         —         —      

Preferred Equity (8,864 units) (h)(j)

          8/11/2017           944       252    
             

 

 

   

 

 

   
                12,378       10,547       3

Road Safety Services, Inc.

    Business Services                  

Second Lien Debt

        11.25%/1.50%       9/18/2018       3/18/2024       10,261       10,226       10,261    

Common Equity (655 units)

          9/18/2018           621       688    
             

 

 

   

 

 

   
                10,847       10,949       3

Rohrer Corporation

    Packaging                  

Subordinated Debt (j)

        10.50%/1.00%       10/1/2018       4/1/2024       13,910       13,860       13,910    

Common Equity (400 shares)

          7/18/2016           780       1,079    
             

 

 

   

 

 

   
                14,640       14,989       4

Routeware, Inc.

    Information Technology Services                  

First Lien Debt (k)(aa)

      (L + 7.00%) / (1.75%)       8.75%/0.00%       2/7/2020       2/7/2025       15,000       14,912       14,912       4

SES Investors, LLC (dba SES Foam)

    Building Products Manufacturing                  

Second Lien Debt

        13.00%/0.00%       9/8/2016       12/29/2020       3,095       3,085       3,095    

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

          9/8/2016           567       914    
             

 

 

   

 

 

   
                3,652       4,009       1

Software Technology, LLC

    Information Technology Services                  

Subordinated Debt (k)

        11.00%/0.00%       12/23/2016       6/23/2023       10,000       9,974       10,000    

Common Equity (6 shares)

          12/23/2016           646       800    
             

 

 

   

 

 

   
                10,620       10,800       3

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       12,758       12,889    

Common Equity (500 units) (j)

          5/8/2019           596       556    
             

 

 

   

 

 

   
                13,354       13,445       4

SpendMend LLC

    Business Services                  

Second Lien Debt (k)

        11.00%/0.75%       1/8/2018       7/8/2023       10,515       10,482       10,515    

Common Equity (1,000,000 units)

          1/8/2018           1,000       1,404    
             

 

 

   

 

 

   
                11,482       11,919       3

TransGo, LLC

    Component Manufacturing                  

Common Equity (500 units)

          2/28/2017           499       526       0

The Tranzonic Companies

    Specialty Distribution                  

Subordinated Debt (j)

        10.00%/1.25%       3/27/2018       3/27/2025       6,945       6,895       6,945    

Preferred Equity (5,653 units) (j)

          3/27/2018           565       679    

Common Equity (1 units) (j)

          3/27/2018           —         57    
             

 

 

   

 

 

   
                7,460       7,681       2

UBEO, LLC

    Business Services                  

Subordinated Debt (j)

        11.00%/0.00%       4/3/2018       10/3/2024       13,893       13,798       12,199    

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

          4/3/2018           668       402    
             

 

 

   

 

 

   
                14,466       12,601       3

United Biologics, LLC

    Healthcare Services                  

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

          4/1/2012           1,008       34    

Warrant (57,469 units) (m)

          3/5/2012           566       29    
             

 

 

   

 

 

   
                1,574       63       0

Vanguard Dealer Services, L.L.C. (n)

    Business Services                  

Common Equity (6,000 units)

          7/30/2015           —         —      

Common Equity (2,380 units) (j)

          2/2/2018           —         —      
             

 

 

   

 

 

   
                —         —         0

Virginia Tile Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)(p)

        12.25%/0.00%       12/19/2014       4/7/2022       12,000       11,990       9,984    

Common Equity (17 units)

          12/19/2014           342       367    
             

 

 

   

 

 

   
                12,332       10,351       3

Western’s Smokehouse, LLC

    Consumer Products                  

First Lien Debt (j)(ab)

      (L + 6.50%) / (1.25%)       7.95%/0.00%       2/28/2020       12/23/2024       10,000       9,853       9,853       3

Wheel Pros, Inc.

    Specialty Distribution                  

Second Lien Debt (j)

      (L + 8.50%) / (0.00%)       9.57%/0.00%       5/17/2019       4/4/2026       20,000       19,825       18,400    

Preferred Equity (347,222 units) (j)

          5/15/2019           750       585    
             

 

 

   

 

 

   
                20,575       18,985       5

Worldwide Express Operations, LLC

    Transportation services                  

Second Lien Debt (j)

      (L + 8.00%) / (1.00%)       9.69%/0.00%       2/27/2017       2/3/2025       20,000       19,753       18,907    

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

          2/27/2017           1,478       1,500    
             

 

 

   

 

 

   
                21,231       20,407       5
             

 

 

   

 

 

   

Total Non-control/Non-affiliate Investments

              $ 661,438     $ 630,885       168
             

 

 

   

 

 

   

Total Investments

              $ 731,110     $ 718,940       191
             

 

 

   

 

 

   

 

(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 March 31, 2020.

(e)

Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of March 31, 2020. 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 March 31, 2020. 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).

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2020

(in thousands, except shares)

 

(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)

Income producing. Maturity date, if any, represents mandatory redemption date.

(p)

Investment was on non-accrual status as of March 31, 2020, meaning the Company has ceased recognizing interest income on the investment.

(q)

Warrant entitles the Company to purchase 9.59% 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 5.12% 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 3.90% 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)

The disclosed commitment represents the unfunded amount as of March 31, 2020. The Company is earning 0.75% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment.

(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 3.26% 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 3.88% 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 2.73% 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 4.06% 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 4.43% 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 2.84% 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.

(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 3.05% 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.

(ac)

The disclosed commitment represents the unfunded amount as of March 31, 2020. 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)

Investment was on PIK-only non-accrual status as of March 31, 2020, meaning the Company has ceased recognizing PIK interest income on the investment.

See Notes to Consolidated Financial Statements (unaudited).

 

11


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)       Variable Index     Rate (e)     Investment           Principal           Fair     Percent of  

Investment Type (c)        

 

Industry

  Spread / Floor (d)     Cash/PIK     Date (f)     Maturity     Amount     Cost     Value (g)     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     $ 4,420     $ 4,418     $ 4,227    

Revolving Loan ($30 commitment)

        6.00%/9.00%       4/12/2018       12/31/2021       261       261       261    

Common Equity (7,478 shares) (j)

          11/10/2017           748       —      

Preferred Equity (2,550 shares)

          12/26/2019           2,550       915    
             

 

 

   

 

 

   
                7,977       5,403       1

US GreenFiber, LLC

  Building Products Manufacturing                

Second Lien Debt (k)

        7.00%/6.00%       7/3/2014       8/30/2024       14,498       14,494       11,757    

Second Lien Debt (k)

        7.50%/7.50%       11/9/2018       8/30/2024       4,660       4,660       4,660    

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

          7/3/2014           586       —      

Common Equity (425,508 units) (j)

          8/30/2019           1       —      
             

 

 

   

 

 

   
                19,741       16,417       4
             

 

 

   

 

 

   

Total Control Investments

              $ 27,718     $ 21,820       5
             

 

 

   

 

 

   

Affiliate Investments (l)

                 

FAR Research Inc. (n)

  Specialty Chemicals                

Common Equity (1,396 units)

          3/31/2014         $ —       $ 28       0

Fiber Materials, Inc.

  Aerospace & Defense Manufacturing                

Common Equity (10 units)

          11/30/2016           645       10,449       3

Medsurant Holdings, LLC

  Healthcare Services                

Second Lien Debt

        13.00%/0.00%       12/18/2015       6/30/2020       8,823       8,814       8,823    

Preferred Equity (126,662 units) (h)

          4/12/2011           1,346       1,780    

Warrant (505,176 units) (h)(m)

          4/12/2011           4,516       6,377    
             

 

 

   

 

 

   
                14,676       16,980       4

Microbiology Research Associates, Inc.

  Healthcare Services                

Subordinated Debt

        11.00%/1.50%       5/13/2015       3/13/2022       8,930       8,921       8,930    

Common Equity (1,625,731 units) (j)

          5/13/2015           1,939       2,681    
             

 

 

   

 

 

   
                10,860       11,611       3

Mirage Trailers LLC

  Utility Equipment Manufacturing                

Second Lien Debt (k)

      (L + 8.50%) / (1.00%)       10.20%/4.50%       11/25/2015       11/25/2020       6,250       6,253       6,250    

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

          11/25/2015           2,184       968    
             

 

 

   

 

 

   
                8,437       7,218       2

Pfanstiehl, Inc.

  Healthcare Products                

Subordinated Debt

        10.50%/0.00%       3/29/2013       9/29/2022       6,208       6,201       6,208    

Common Equity (8,500 units) (j)

          3/29/2013           850       26,614    
             

 

 

   

 

 

   
                7,051       32,822       8

Pinnergy, Ltd.

  Oil & Gas Services                

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

          10/13/2016           3,000       29,831    

Common Equity - Class B (1,000 units) (k)

          10/13/2016           3,000       3,147    
             

 

 

   

 

 

   
                6,000       32,978       8

Steward Holding LLC (dba Steward Advanced Materials)

  Aerospace & Defense Manufacturing                

Second Lien Debt

        12.00%/1.50%       11/12/2015       5/12/2021       7,667       7,659       7,667    

Common Equity (1,000,000 units)

          11/12/2015           1,000       1,802    
             

 

 

   

 

 

   
                8,659       9,469       2
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 56,328     $ 121,555       30
             

 

 

   

 

 

   

 

12


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment         Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)   Maturity     Amount     Cost     Value (g)     Net Assets  

Non-control/Non-affiliate Investments

                 

Accent Food Services, LLC

    Vending Equipment Manufacturing                  

Second Lien Debt (k)(p)

      10.00%/5.00%   11/30/2016     5/30/2022     $ 33,842     $ 33,760     $ 31,626    

Subordinated Debt (j)(p)

      0.00%/17.00%   6/28/2019     5/30/2022       1,567       1,567       1,441    

Common Equity (7,885 units) (h)(j)

        11/30/2016         800       227    
             

 

 

   

 

 

   
                36,127       33,294       8

Allied 100 Group, Inc.

    Healthcare Products                  

Subordinated Debt (k)

      11.25%/0.00%   7/31/2019     5/26/2023       21,500       21,405       21,405    

Common Equity (1,250,000 units) (j)

        11/26/2014         1,250       1,465    
             

 

 

   

 

 

   
                22,655       22,870       6

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       6,461       6,500    

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

        10/23/2018         1,000       1,406    
             

 

 

   

 

 

   
                7,461       7,906       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       17,411       17,503    

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

        5/31/2018         500       540    

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

        8/6/2019         250       250    
             

 

 

   

 

 

   
                18,161       18,293       4

Argo Turboserve Corporation

    Business Services                  

Second Lien Debt (j)

    (L + 9.75%) / (2.00%)   11.84%/0.00%   12/26/2018     6/28/2023       14,156       14,098       14,156       3

AVC Investors, LLC (dba Auveco)

    Specialty Distribution                  

Second Lien Debt (k)

      11.50%/0.00%   1/3/2018     7/3/2023       22,500       22,427       22,500    

Common Equity (5,000 units) (j)

        1/3/2018         490       776    
             

 

 

   

 

 

   
                22,917       23,276       6

B&B Roadway and Security Solutions, LLC

    Component Manufacturing                  

Second Lien Debt

      10.50%/3.50%   2/27/2018     8/27/2023       10,493       10,456       9,569    

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

        2/27/2018         500       200    
             

 

 

   

 

 

   
                10,956       9,769       2

Bandon Fitness (Texas), Inc.

    Retail                  

First Lien Debt (j)(z)

    (L + 6.00%) / (2.25%)   8.25%/0.00%   8/9/2019     8/9/2024       13,250       12,785       12,785    

Common Equity (497,549 units) (j)

        8/9/2019         849       849    
             

 

 

   

 

 

   
                13,634       13,634       3

BCC Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt

      11.00%/1.00%   1/28/2019     4/11/2023       18,167       18,027       18,167    

Common Equity (451 shares)

        1/28/2019         232       167    

Preferred Equity (14 shares)

        1/28/2019         143       143    
             

 

 

   

 

 

   
                18,402       18,477       4

BCM One Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt (k)

      11.00%/0.00%   1/3/2019     7/3/2024       27,000       26,888       27,000    

Common Equity (2,286 shares)

        1/3/2019         2       332    

Preferred Equity (133 shares)

        1/3/2019         1,330       1,330    
             

 

 

   

 

 

   
                28,220       28,662       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       5,000       4,969       5,000    

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

        3/12/2019         500       445    
             

 

 

   

 

 

   
                5,469       5,445       1

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

    Restaurants                  

Common Equity (521,021 units) (j)

        12/15/2015         521       113    

Preferred Equity (99,889 units) (j)

        12/6/2019         49       146    
             

 

 

   

 

 

   
                570       259       0

ControlScan, Inc.

    Information Technology Services                  

Subordinated Debt (j)

      11.00%/0.00%   7/28/2017     1/28/2023       6,750       6,731       6,750    

Common Equity (3,704 shares) (j)

        7/28/2017         4       624    

Preferred Equity (100 shares) (j)

        7/28/2017         996       996    
             

 

 

   

 

 

   
                7,731       8,370       2

CRS Solutions Holdings, LLC (dba CRS Texas)

    Business Services                  

Second Lien Debt

      10.50%/1.00%   3/14/2018     9/14/2023       9,166       9,136       9,166    

Common Equity (750,000 units) (h)(j)

        3/14/2018         750       822    
             

 

 

   

 

 

   
                9,886       9,988       2

Diversified Search LLC

    Business Services                  

First Lien Debt (k)(r)

    (L + 5.75%) / (1.75%)   7.69%/0.00%   2/7/2019     2/7/2024       15,155       14,939       15,155    

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

        2/7/2019         593       724    
             

 

 

   

 

 

   
                15,532       15,879       4

EBL, LLC (EbLens)

    Retail                  

Second Lien Debt (j)

      12.00%/1.00%   7/13/2017     1/13/2023       9,484       9,433       9,484    

Common Equity (75,000 units) (j)

        7/13/2017         750       669    
             

 

 

   

 

 

   
                10,183       10,153       3

 

13


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2019

(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
 

French Transit, LLC

    Consumer Products                  

First Lien Debt (j)

    (L + 9.00%) /(2.25%)   11.25%/0.00%   6/21/2019   6/21/2024   $ 8,000     $ 7,964     $ 8,000    

Revolving Loan ($1,000 commitment) (j)(u)

    (L + 9.00%) / (2.25%)   11.25%/0.00%   6/21/2019   6/21/2024     —         (4     —      
             

 

 

   

 

 

   
                7,960       8,000       2

Global Plasma Solutions, Inc.

    Component Manufacturing                  

First Lien Debt (j)(v)

    (L + 5.00%) / (2.00%)   7.10%/0.00%   9/21/2018   9/21/2023     7,071       7,013       7,071    

Preferred Equity (947 shares) (j)

        9/21/2018         360       399    

Common Equity (947 shares) (j)

        9/21/2018         15       161    
             

 

 

   

 

 

   
                7,388       7,631       2

Gurobi Optimization, LLC

    Information Technology Services                  

Common Equity (5 shares)

        12/19/2017         1,500       3,382       1

Haematologic Technologies, Inc.

    Healthcare Services                  

First Lien Debt (x)

    (L + 7.25%) / (2.00%)   9.25%/0.00%   10/11/2019   10/11/2024     5,500       5,461       5,461    

Common Equity (500 units) (j)

        10/11/2019         500       500    
             

 

 

   

 

 

   
                5,961       5,961       1

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

    Component Manufacturing                  

Second Lien Debt

      11.50%/1.50%   9/23/2016   12/31/2019     10,116       10,116       9,057    

Revolving Loan (j)

    (L + 6.50%) / (0.00%)   8.26%/0.00%   12/20/2019   12/15/2019     5,962       5,962       5,962    

First Lien Debt (j)

    (L + 6.95%) / (0.00%)   8.66%/0.00%   12/20/2019   12/15/2019     4,812       4,812       4,812    

First Lien Debt (j)

    (L + 6.95%) / (0.00%)   8.64%/0.00%   12/20/2019   12/15/2019     1,815       1,815       1,815    

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

        4/18/2018         1,000       —      

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

        9/23/2016         473       —      
             

 

 

   

 

 

   
                24,178       21,646       5

Hoonuit, LLC

    Information Technology Services                  

First Lien Debt

    (L + 9.25%) / (2.25%)   11.50%/0.00%   6/7/2019   6/7/2024     7,165       7,121       7,165    

Preferred Equity (610 units) (h)(j)

        6/20/2019   1/1/2022       250       279    
             

 

 

   

 

 

   
                7,371       7,444       2

Hub Acquisition Sub, LLC (dba Hub Pen)

    Promotional products                  

Second Lien Debt (k)

      12.25%/0.00%   3/23/2016   9/23/2021     25,000       24,947       25,000    

Common Equity (7,500 units)

        3/23/2016         263       1,488    
             

 

 

   

 

 

   
                25,210       26,488       6

Hunter Defense Technologies, Inc.

    Aerospace & Defense Manufacturing                  

First Lien Debt (j)

    (L + 7.00%) / (1.00%)   8.94%/0.00%   9/27/2018   3/29/2023     9,246       9,174       9,246       2

IBH Holdings, LLC (fka Inflexxion, Inc.)

    Business Services                  

Common Equity (150,000 units)

        6/20/2018         —         —         0

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

    Industrial Cleaning & Coatings                  

Second Lien Debt

      0.00%/10.00%   1/28/2019   1/28/2021     2,309       2,309       2,309       1

The Kyjen Company, LLC (dba Outward Hound)

    Consumer Products                  

Second Lien Debt (k)

      12.00%/0.00%   12/8/2017   6/8/2024     15,000       14,948       13,024    

Common Equity (765 shares) (j)

        12/8/2017         765       609    
             

 

 

   

 

 

   
                15,713       13,633       3

LNG Indy, LLC (dba Kinetrex Energy)

    Oil & Gas Distribution                  

Second Lien Debt (k)

      11.50%/0.00%   12/28/2016   11/12/2021     5,000       4,991       5,000    

Common Equity (1,000 units)

        12/28/2016         1,000       1,264    
             

 

 

   

 

 

   
                5,991       6,264       2

Marco Group International OpCo, LLC

    Industrial Cleaning & Coatings                  

Second Lien Debt

      10.50%/0.75%   7/21/2017   1/21/2023     12,225       12,192       12,120    

Common Equity (960,482 units) (h)(j)

        7/21/2017         960       1,063    
             

 

 

   

 

 

   
                13,152       13,183       3

Mesa Line Services, LLC

    Utilities: Services                  

Second Lien Debt (j)

      10.50%/1.75%   11/30/2017   8/1/2024     17,221       17,133       17,221    

Common Equity (981 shares) (j)

        11/30/2017         1,148       961    
             

 

 

   

 

 

   
                18,281       18,182       4

Midwest Transit Equipment, Inc.

    Transportation services                  

Warrant (14,384 shares) (j)(m)

        6/23/2017         361       1,244    

Warrant (9.59% of Junior Subordinated Notes) (j)(q)

        6/23/2017         381       467    
             

 

 

   

 

 

   
                742       1,711       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

    Component Manufacturing                  

Common Equity (378 units) (j)

        5/24/2017         500       155       0

OMC Investors, LLC (dba Ohio Medical Corporation)

    Healthcare Products                  

Second Lien Debt

      12.00%/0.00%   1/15/2016   7/15/2021     10,000       9,972       10,000    

Common Equity (5,000 units)

        1/15/2016         500       475    
             

 

 

   

 

 

   
                10,472       10,475       3

 

14


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2019

(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
 

Palisade Company, LLC

  Information Technology Services                

Subordinated Debt (j)

      11.75%/0.00%     11/15/2018       5/15/2024     $ 6,500     $ 6,474     $ 6,500    

Common Equity (100 shares) (j)

          11/15/2018           1,000       901    
             

 

 

   

 

 

   
                7,474       7,401       2

Palmetto Moon, LLC

  Retail                

First Lien Debt

      11.50%/2.50%     11/3/2016       10/31/2021       4,963       4,949       4,963    

Common Equity (499 units) (j)

          11/3/2016           494       67    
             

 

 

   

 

 

   
                5,443       5,030       1

Power Grid Components, Inc.

  Specialty Distribution                

Second Lien Debt (k)

      11.00%/1.00%     4/12/2018       12/2/2025       22,207       22,115       22,207    

Preferred Equity (392 shares) (j)

          4/12/2018           392       459    

Preferred Equity (48 shares) (j)

          12/2/2019           48       57    

Common Equity (10,622 shares) (j)

          4/12/2018           462       610    
             

 

 

   

 

 

   
                23,017       23,333       6

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       7,500       7,312       7,312    

Preferred Equity (500,000 shares) (j)

          11/25/2019           500       500    
             

 

 

   

 

 

   
                7,812       7,812       2

Pugh Lubricants, LLC

  Specialty Distribution                

Second Lien Debt (k)

      12.25%/0.00%     11/10/2016       5/10/2022       23,581       23,521       23,581    

Common Equity (6,125 units) (h)(j)

          11/10/2016           576       1,199    
             

 

 

   

 

 

   
                24,097       24,780       6

Revenue Management Solutions, LLC

  Information Technology Services                

Common Equity (2,250,000 shares)

          1/4/2017           2,250       5,120       1

Rhino Assembly Company, LLC

  Specialty Distribution                

Second Lien Debt (k)

      12.00%/1.00%     8/11/2017       2/11/2023       11,440       11,402       10,101    

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

      12.00%/1.00%     8/11/2017       5/17/2022       —         —         —      

Preferred Equity (8,864 units) (h)(j)

          8/11/2017           944       499    
             

 

 

   

 

 

   
                12,346       10,600       3

Road Safety Services, Inc.

  Business Services                

Second Lien Debt

      11.25%/1.50%     9/18/2018       3/18/2024       10,222       10,185       10,222    

Common Equity (655 units)

          9/18/2018           621       680    
             

 

 

   

 

 

   
                10,806       10,902       3

Rohrer Corporation

  Packaging                

Subordinated Debt (j)

      10.50%/1.00%     10/1/2018       4/1/2024       13,875       13,822       13,875    

Common Equity (400 shares)

          7/18/2016           780       1,256    
             

 

 

   

 

 

   
                14,602       15,131       4

SES Investors, LLC (dba SES Foam)

  Building Products Manufacturing                

Second Lien Debt

      13.00%/0.00%     9/8/2016       12/29/2020       3,095       3,082       3,095    

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

          9/8/2016           567       856    
             

 

 

   

 

 

   
                3,649       3,951       1

Software Technology, LLC

  Information Technology Services                

Subordinated Debt (k)

      11.00%/0.00%     12/23/2016       6/23/2023       10,000       9,972       10,000    

Common Equity (12 shares)

          12/23/2016           1,291       1,578    
             

 

 

   

 

 

   
                11,263       11,578       3

Specialized Elevator Services Holdings, LLC

  Business Services                

First Lien Debt (j)(y)

    (L + 5.25%) / (2.00%)   7.25%/0.00%     5/7/2019       5/3/2024       7,080       6,985       7,080    

Common Equity (500 units) (j)

          5/8/2019           500       554    
             

 

 

   

 

 

   
                7,485       7,634       2

SpendMend LLC

  Business Services                

Second Lien Debt (k)

      11.00%/1.00%     1/8/2018       7/8/2023       10,491       10,456       10,491    

Common Equity (1,000,000 units)

          1/8/2018           1,000       1,400    
             

 

 

   

 

 

   
                11,456       11,891       3

TransGo, LLC

  Component Manufacturing                

Common Equity (1,000 units)

          2/28/2017           998       1,005       0

The Tranzonic Companies

  Specialty Distribution                

Subordinated Debt (j)

      10.00%/1.50%     3/27/2018       3/27/2025       6,922       6,870       6,922    

Preferred Equity (5,653 units) (j)

          3/27/2018           565       663    

Common Equity (1 units) (j)

          3/27/2018           —         26    
             

 

 

   

 

 

   
                7,435       7,611       2

UBEO, LLC

  Business Services                

Subordinated Debt (j)

      11.00%/0.00%     4/3/2018       10/3/2024       13,893       13,792       13,645    

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

          4/3/2018           705       811    
             

 

 

   

 

 

   
                14,497       14,456       4

United Biologics, LLC

  Healthcare Services                

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

          4/1/2012           1,008       24    

Warrant (57,469 units) (m)

          3/5/2012           566       20    
             

 

 

   

 

 

   
                1,574       44       0

Vanguard Dealer Services, L.L.C. (n)

  Business Services                

Common Equity (6,000 units)

          7/30/2015           —         22    

Common Equity (2,380 units) (j)

          2/2/2018           —         9    
             

 

 

   

 

 

   
                —         31       0

 

15


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2019

(in thousands, except shares)

 

Portfolio Company (a)(b)         Variable Index   Rate (e)   Investment           Principal           Fair     Percent of  

Investment Type (c)         

  Industry     Spread / Floor (d)   Cash/PIK   Date (f)     Maturity     Amount     Cost     Value (g)     Net Assets  

Virginia Tile Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.25%/0.00%     12/19/2014       4/7/2022     $ 12,000     $ 11,989     $ 12,000    

Common Equity (17 units)

          12/19/2014           342       860    
             

 

 

   

 

 

   
                12,331       12,860       3

Wheel Pros, Inc.

    Specialty Distribution                  

Second Lien Debt (j)

    (L + 8.50%) /(0.00%)   10.30%/0.00%     5/17/2019       4/4/2026       20,000       19,818       20,000    

Preferred Equity (694,444 units) (j)

          5/15/2019           1,500       1,781    
             

 

 

   

 

 

   
          </