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, 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 ☐

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 6, 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 — June 30, 2020 (unaudited) and December 31, 2019      3  
  Consolidated Statements of Operations — Three and Six Months Ended June 30, 2020 (unaudited) and 2019 (unaudited)      4  
  Consolidated Statements of Changes in Net Assets — Three and Six Months Ended June 30, 2020 (unaudited) and 2019 (unaudited)      5  
  Consolidated Statements of Cash Flows — Six Months Ended June 30, 2020 (unaudited) and 2019 (unaudited)      6  
  Consolidated Schedules of Investments — June 30, 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      38  

Item 3.

  Quantitative and Qualitative Disclosures About Market Risk      56  

Item 4.

  Controls and Procedures      57  

PART II — OTHER INFORMATION

 

Item 1.

  Legal Proceedings      59  

Item 1A.

  Risk Factors      59  

Item 2.

  Unregistered Sales of Equity Securities and Use of Proceeds      63  

Item 3.

  Defaults Upon Senior Securities      64  

Item 4.

  Mine Safety Disclosures      64  

Item 5.

  Other Information      64  

Item 6.

  Exhibits      65  

Signatures

     66  

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, 2020
(unaudited)
     December 31,
2019
 

ASSETS

     

Investments, at fair value:

     

Control investments (cost: $29,591 and $27,718, respectively)

   $ 21,929      $ 21,820  

Affiliate investments (cost: $40,792 and $56,328, respectively)

     70,566        121,555  

Non-control/non-affiliate  investments (cost: $675,915 and $620,453, respectively)

     640,125        623,544  
  

 

 

    

 

 

 

Total investments, at fair value (cost: $746,298 and $704,499, respectively)

     732,620        766,919  

Cash and cash equivalents

     19,268        15,012  

Interest receivable

     8,208        6,331  

Prepaid expenses and other assets

     1,348        1,177  
  

 

 

    

 

 

 

Total assets

   $ 761,444      $ 789,439  
  

 

 

    

 

 

 

LIABILITIES

     

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

   $ 153,061      $ 153,802  

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

     177,553        176,901  

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

     41,715        23,899  

Accrued interest and fees payable

     3,411        3,505  

Base management fee payable – due to affiliate

     3,193        3,334  

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

     1,690        1,497  

Capital gains incentive fee payable – due to affiliate

     3,574        12,715  

Administration fee payable and other – due to affiliate

     415        487  

Taxes payable

     123        547  

Accounts payable and other liabilities

     533        442  
  

 

 

    

 

 

 

Total liabilities

     385,268        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 June 30, 2020 and December 31, 2019, respectively)

     24        24  

Additional paid-in capital

     365,793        366,061  

Total distributable earnings

     10,359        46,225  
  

 

 

    

 

 

 

Total net assets

     376,176        412,310  
  

 

 

    

 

 

 

Total liabilities and net assets

   $ 761,444      $ 789,439  
  

 

 

    

 

 

 

Net asset value per common share

   $ 15.39      $ 16.85  
  

 

 

    

 

 

 

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,
 
     2020     2019     2020     2019  

Investment Income:

        

Interest income

        

Control investments

   $ 449     $ 68     $ 881     $ 350  

Affiliate investments

     831       1,414       1,814       2,934  

Non-control/non-affiliate  investments

     17,559       12,365       33,611       25,815  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total interest income

     18,839       13,847       36,306       29,099  

Payment-in-kind interest income

        

Control investments

     445       183       870       1,420  

Affiliate investments

     29       85       69       168  

Non-control/non-affiliate  investments

     707       2,687       1,323       3,997  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total payment-in-kind  interest income

     1,181       2,955       2,262       5,585  

Dividend income

        

Control investments

     —         —         —         —    

Affiliate investments

     1       573       108       941  

Non-control/non-affiliate  investments

     17       58       46       (15
  

 

 

   

 

 

   

 

 

   

 

 

 

Total dividend income

     18       631       154       926  

Fee income

        

Control investments

     —         —         —         349  

Affiliate investments

     66       —         66       22  

Non-control/non-affiliate  investments

     175       601       1,457       2,329  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total fee income

     241       601       1,523       2,700  

Interest on idle funds and other income

     154       34       171       88  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     20,433       18,068       40,416       38,398  
  

 

 

   

 

 

   

 

 

   

 

 

 

Expenses:

        

Interest and financing expenses

     4,863       4,052       9,823       7,776  

Base management fee

     3,193       3,016       6,465       5,887  

Incentive fee - income

     2,113       1,299       3,968       3,784  

Incentive fee - capital gains

     (263     (1,289     (9,141     (934

Administrative service expenses

     364       378       830       777  

Professional fees

     654       406       1,207       996  

Other general and administrative expenses

     500       510       835       815  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses before income incentive fee waiver

     11,424       8,372       13,987       19,101  
  

 

 

   

 

 

   

 

 

   

 

 

 

Incentive fee waiver - income

     (423     —         (423     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net of income incentive fee waiver

     11,001       8,372       13,564       19,101  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income before income taxes

     9,432       9,696       26,852       19,297  

Income tax provision (benefit)

     141       53       144       55  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     9,291       9,643       26,708       19,242  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized gains (losses) on investments:

        

Net realized gains (losses):

        

Control investments

     —         —         —         (1,268

Affiliate investments

     87       (134     24,419       (99

Non-control/non-affiliate  investments

     117       23       7,163       (335
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net realized gain (loss) on investments

     204       (111     31,582       (1,702
  

 

 

   

 

 

   

 

 

   

 

 

 

Income tax (provision) benefit from realized gains on investments

     (14     (301     (1,065     (293

Net change in unrealized appreciation (depreciation):

        

Control investments

     (68     (64     (1,764     1,573  

Affiliate investments

     3,797       2,527       (35,453     5,286  

Non-control/non-affiliate  investments

     (5,237     (8,492     (38,881     (9,343
  

 

 

   

 

 

   

 

 

   

 

 

 

Total net change in unrealized appreciation (depreciation) on investments

     (1,508     (6,029     (76,098     (2,484
  

 

 

   

 

 

   

 

 

   

 

 

 

Net gain (loss) on investments

     (1,318     (6,441     (45,581     (4,479

Realized losses on extinguishment of debt

     —         —         (125     (189
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 7,973     $ 3,202     $ (18,998   $ 14,574  
  

 

 

   

 

 

   

 

 

   

 

 

 

Per common share data:

        

Net investment income per share-basic and diluted

   $ 0.38     $ 0.39     $ 1.09     $ 0.79  
  

 

 

   

 

 

   

 

 

   

 

 

 

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

   $ 0.33     $ 0.13     $ (0.78   $ 0.60  
  

 

 

   

 

 

   

 

 

   

 

 

 

Dividends declared per share

   $ 0.30     $ 0.39     $ 0.69     $ 0.78  
  

 

 

   

 

 

   

 

 

   

 

 

 

Weighted average number of shares outstanding — basic and diluted

     24,437,400       24,463,119       24,447,517       24,463,119  
  

 

 

   

 

 

   

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

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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, 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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     —         —         —         9,643       9,643  

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

     —         —         —         (412     (412

Net unrealized appreciation (depreciation) on investments

     —         —         —         (6,029     (6,029

Realized losses on extinguishment of debt

     —         —         —         —         —    

Dividends declared

     —         —         —         (9,540     (9,540
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at June 30, 2019

     24,463,119     $ 24     $ 366,688     $ 31,766     $ 398,478  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

*

Amount is greater than zero but less than one

See Notes to Consolidated Financial Statements (unaudited).

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Statements of Cash Flows (unaudited)

(in thousands)

 

    Six Months Ended June 30,  
    2020     2019  

Cash Flows from Operating Activities:

   

Net increase (decrease) in net assets resulting from operations

  $ (18,998   $ 14,574  

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

    76,098       2,484  

Net realized (gain) loss on investments

    (31,582     1,702  

Interest and dividend income paid-in-kind

    (2,262     (5,585

Accretion of original issue discount

    (103     (30

Accretion of loan origination fees

    (514     (567

Purchase of investments

    (85,097     (128,460

Proceeds from sales and repayments of investments

    76,315       75,320  

Proceeds from loan origination fees

    1,444       846  

Realized losses on extinguishment of debt

    125       189  

Amortization of deferred financing costs

    1,098       858  

Changes in operating assets and liabilities:

   

Interest receivable

    (1,877     1,630  

Prepaid expenses and other assets

    (171     517  

Accrued interest and fees payable

    (94     339  

Base management fee payable – due to affiliate

    (141     89  

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

    193       (1,486

Capital gains incentive fee payable – due to affiliate

    (9,141     (934

Administration fee payable and other – due to affiliate

    (72     (174

Taxes payable

    (424     (803

Accounts payable and other liabilities

    91       196  
 

 

 

   

 

 

 

Net cash provided by (used for) operating activities

    4,888       (39,295
 

 

 

   

 

 

 

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

    18,000       (7,000

Payment of deferred financing costs

    (496     (4,004

Dividends paid to stockholders, including expenses

    (16,868     (19,081

Repurchases of common stock under Stock Repurchase Program

    (268      
 

 

 

   

 

 

 

Net cash provided by (used for) financing activities

    (632     19,165  
 

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

    4,256       (20,130

Cash and cash equivalents:

   

Beginning of period

    15,012       42,015  
 

 

 

   

 

 

 

End of period

  $ 19,268     $ 21,885  
 

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

   

Cash payments for interest

  $ 8,819     $ 6,579  

Cash payments for taxes, net of tax refunds received

  $ 1,633     $ 1,151  

See Notes to Consolidated Financial Statements (unaudited).

 

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Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 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     $ 4,621     $ 4,621     $ 3,811    

Revolving Loan ($30 commitment)

        6.00%/9.00     4/12/2018       12/31/2021       273       273       273    

Common Equity (7,478 shares) (j)

          11/10/2017           748       —      

Preferred Equity (2,550 shares)

          12/26/2019           2,550       —      
             

 

 

   

 

 

   
                8,192       4,084       1

US GreenFiber, LLC

    Building Products Manufacturing                  

Second Lien Debt (j)

        7.00%/6.00     7/3/2014       8/30/2024       15,967       15,964       12,996    

Second Lien Debt (j)

        7.50%/7.50     11/9/2018       8/30/2024       4,848       4,848       4,849    

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

          7/3/2014           586       —      

Common Equity (425,508 units) (j)

          8/30/2019           1       —      
             

 

 

   

 

 

   
                21,399       17,845       5
             

 

 

   

 

 

   

Total Control Investments

              $ 29,591     $ 21,929       6
             

 

 

   

 

 

   

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 (j)

        13.00%/0.00     12/18/2015       3/10/2022       8,031       8,026       8,090    

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

          4/12/2011           674       543    

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

          4/12/2011           2,259       1,889    
             

 

 

   

 

 

   
                10,959       10,522       3

Mirage Trailers LLC

    Utility Equipment Manufacturing                  

Second Lien Debt (k)(ad)

      (L + 8.50%) / (1.00%     9.50%/4.50     11/25/2015       11/25/2020       6,250       6,300       5,258    

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

          11/25/2015           2,186       —      
             

 

 

   

 

 

   
                8,486       5,258       1

Pfanstiehl, Inc.

    Healthcare Products                  

Subordinated Debt

        10.50%/0.00     3/29/2013       9/29/2024       6,208       6,203       6,208    

Common Equity (4,250 units) (j)

          3/29/2013           425       17,239    
             

 

 

   

 

 

   
                6,628       23,447       6

Pinnergy, Ltd.

    Oil & Gas Services                  

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

          10/13/2016           3,000       18,186    

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

          10/13/2016           3,000       3,221    
             

 

 

   

 

 

   
                6,000       21,407       6
Steward Holding LLC (dba Steward Advanced Materials)     Aerospace & Defense Manufacturing                  

Second Lien Debt

        12.00%/1.50     11/12/2015       5/12/2021       7,725       7,719       7,725    

Common Equity (1,000,000 units)

          11/12/2015           1,000       2,179    
             

 

 

   

 

 

   
                8,719       9,904       3
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 40,792     $ 70,566       19
             

 

 

   

 

 

   

 

7


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 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     $ 16,134    

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

          11/30/2016           800       —      
             

 

 

   

 

 

   
                36,128       16,134       4

Allied 100 Group, Inc.

    Healthcare Products                  

Subordinated Debt (k)

        11.25%/0.00%       7/31/2019       5/26/2023       21,500       21,419       21,500    

Common Equity (625,000 units) (j)

          11/26/2014           625       930    
             

 

 

   

 

 

   
                22,044       22,430       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       6,466       6,500    

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

          10/23/2018           500       697    
             

 

 

   

 

 

   
                6,966       7,197       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       17,422       17,503    

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

          5/31/2018           500       300    

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

          8/6/2019           250       250    
             

 

 

   

 

 

   
                18,172       18,053       5

Argo Turboserve Corporation

    Business Services                  

Second Lien Debt (j)

      (L + 10.75%) / (2.00%)       12.75%/0.00%       12/26/2018       6/28/2023       13,594       13,544       13,594       4

AVC Investors, LLC (dba Auveco)

    Specialty Distribution                  

Second Lien Debt (k)

        11.50%/0.00%       1/3/2018       7/3/2023       22,500       22,436       22,373    

Common Equity (5,000 units) (j)

          1/3/2018           490       449    
             

 

 

   

 

 

   
                22,926       22,822       6

B&B Roadway and Security Solutions, LLC

    Component Manufacturing                  

Second Lien Debt

        11.25%/4.00%       2/27/2018       1/1/2022       10,690       10,660       9,665    

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

          2/27/2018           500       —      
             

 

 

   

 

 

   
                11,160       9,665       3

Bandon Fitness (Texas), Inc.

    Retail                  

First Lien Debt (j)(z)

      (L + 6.00%) / (2.25%)       8.25%/0.25%       8/9/2019       8/9/2024       14,689       14,246       13,714    

Common Equity (545,810 units) (j)

          8/9/2019           931       139    
             

 

 

   

 

 

   
                15,177       13,853       4

BCC Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt

        11.00%/1.00%       1/28/2019       4/11/2023       18,258       18,139       18,258    

Common Equity (451 shares)

          1/28/2019           232       176    

Preferred Equity (14 shares)

          1/28/2019           143       143    
             

 

 

   

 

 

   
                18,514       18,577       5

BCM One Group Holdings, Inc.

    Information Technology Services                  

Subordinated Debt (k)

        11.00%/0.00%       1/3/2019       7/3/2024       29,000       28,882       29,000    

Common Equity (1,143 shares)

          1/3/2019           1       78    

Preferred Equity (66 shares)

          1/3/2019           665       665    
             

 

 

   

 

 

   
                29,548       29,743       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       4,972       5,000    

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

          3/12/2019           500       340    
             

 

 

   

 

 

   
                5,472       5,340       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           72       81    
             

 

 

   

 

 

   
                593       81       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       7,800       7,747       7,747    

Revolving Loan ($100 commitment) (j)(ac)

      (L + 9.00%) / (2.00%)       11.00%/0.00%       1/31/2020       1/31/2025       3,900       3,877       3,877    
             

 

 

   

 

 

   
                11,624       11,624       3

ControlScan, Inc.

    Information Technology Services                  

Subordinated Debt (j)

        11.00%/0.00%       7/28/2017       1/28/2023       6,750       6,734       6,750    

Common Equity (1,852 shares) (j)

          7/28/2017           2       243    

Preferred Equity (50 shares) (j)

          7/28/2017           498       498    
             

 

 

   

 

 

   
                7,234       7,491       2

CRS Solutions Holdings, LLC (dba CRS Texas)

    Business Services                  

Second Lien Debt

        10.50%/1.00%       3/14/2018       4/30/2024       11,219       11,178       10,474    

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

          3/14/2018           375       161    
             

 

 

   

 

 

   
                11,553       10,635       3

Diversified Search LLC

    Business Services                  

First Lien Debt (k)(r)

      (L + 6.00%) / (1.75%)       7.75%/0.00%       2/7/2019       2/7/2024       17,355       17,128       16,739    

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

          2/7/2019           593       261    
             

 

 

   

 

 

   
                17,721       17,000       4

EBL, LLC (EbLens)

    Retail                  

Second Lien Debt (j)

        12.00%/1.00%       7/13/2017       1/13/2023       9,221       9,174       7,764    

Common Equity (75,000 units) (j)

          7/13/2017           750       40    
             

 

 

   

 

 

   
                9,924       7,804       2

ECM Industries, LLC

    Component Manufacturing                  

Subordinated Debt (j)

        11.50%/0.00%       4/30/2020       5/23/2026       11,500       11,276       11,276    

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

          4/30/2020           1,000       1,000    
             

 

 

   

 

 

   
                12,276       12,276       3

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       4,068       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     —      
             

 

 

   

 

 

   
                4,064       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       6,788       6,838    

Preferred Equity (947 shares) (j)

          9/21/2018           360       415    

Common Equity (947 shares) (j)

          9/21/2018           15       1,126    
             

 

 

   

 

 

   
              $ 7,163     $ 8,379       2

 

8


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 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  

Gurobi Optimization, LLC

    Information Technology Services                  

Common Equity (3 shares)

          12/19/2017         $ 750     $ 1,671       0

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       5,466       5,350    

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

          10/11/2019           500       253    
             

 

 

   

 

 

   
                5,966       5,603       1

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

    Component Manufacturing                  

Second Lien Debt (j)

        11.50%/1.50%       9/23/2016       12/31/2019       10,207       10,207       8,613    

Revolving Loan (j)

      (L + 6.50%) / (0.00%)       6.67%/0.00%       12/20/2019       12/15/2019       5,962       5,962       5,962    

First Lien Debt (j)

      (L + 6.95%) / (0.00%)       7.12%/0.00%       12/20/2019       12/15/2019       5,859       5,859       5,859    

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

          4/18/2018           1,000       —      

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

          9/23/2016           473       —      
             

 

 

   

 

 

   
                23,501       20,434       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       7,126       7,165    

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

          6/20/2019       1/1/2022         250       264    
             

 

 

   

 

 

   
                7,376       7,429       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       24,963       22,198    

Common Equity (3,750 units)

          3/23/2016           131       195    
             

 

 

   

 

 

   
                25,094       22,393       6

IBH Holdings, LLC (fka Inflexxion, Inc.)

    Business Services                  

Common Equity (150,000 units)

          6/20/2018           —         —         0

Ipro Tech, LLC

    Information Technology Services                  

First Lien Debt (j)(ae)

      (L + 8.50%) / (2.00%)       10.50%/0.00%       6/30/2020       6/30/2025       2,500       1,901       1,901       1
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       1/28/2021       2,034       2,034       2,034       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       14,954       14,400    

Common Equity (765 shares) (j)

          12/8/2017           765       562    
             

 

 

   

 

 

   
                15,719       14,962       4

LNG Indy, LLC (dba Kinetrex Energy)

    Oil & Gas Distribution                  

Second Lien Debt (k)

        11.50%/1.50%       12/28/2016       11/12/2021       10,050       10,021       10,021    

Common Equity (500 units)

          12/28/2016           500       535    
             

 

 

   

 

 

   
                10,521       10,556       3

Marco Group International OpCo, LLC

    Industrial Cleaning & Coatings                  

Second Lien Debt

        10.50%/0.75%       3/2/2020       9/2/2026       10,025       9,930       9,526    

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

          7/21/2017           637       478    
             

 

 

   

 

 

   
                10,567       10,004       3

Mesa Line Services, LLC

    Utilities: Services                  

Second Lien Debt (j)

        10.50%/1.75%       11/30/2017       8/1/2024       17,374       17,296       17,374    

Common Equity (981 shares) (j)

          11/30/2017           1,148       556    
             

 

 

   

 

 

   
                18,444       17,930       5

Microbiology Research Associates, Inc.

    Healthcare Services                  

Subordinated Debt (j)

        11.00%/1.50%       5/13/2015       3/13/2022       8,997       8,990       8,997    

Common Equity (812,866 units) (j)

          5/13/2015           969       873    
             

 

 

   

 

 

   
                9,959       9,870       3

Midwest Transit Equipment, Inc.

    Transportation services                  

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

          6/23/2017           180       305    

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

          6/23/2017           190       241    
             

 

 

   

 

 

   
                370       546       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

    Component Manufacturing                  

Common Equity (378 units) (j)

          5/24/2017           500       157       0

OMC Investors, LLC (dba Ohio Medical Corporation)

    Healthcare Products                  

Second Lien Debt

        13.00%/0.00%       1/15/2016       6/30/2022       10,000       9,979       10,000    

Common Equity (5,000 units)

          1/15/2016           500       590    
             

 

 

   

 

 

   
                10,479       10,590       3

Palisade Company, LLC

    Information Technology Services                  

Subordinated Debt (j)

        11.75%/0.00%       11/15/2018       5/15/2024       6,500       6,477       6,500    

Common Equity (50 shares) (j)

          11/15/2018           500       484    
             

 

 

   

 

 

   
                6,977       6,984       2

Palmetto Moon, LLC

    Retail                  

First Lien Debt (j)

        11.50%/2.50%       11/3/2016       10/31/2021       4,876       4,866       4,142    

Common Equity (499 units) (j)

          11/3/2016           494       —      
             

 

 

   

 

 

   
                5,360       4,142       1

Power Grid Components, Inc.

    Specialty Distribution                  

Second Lien Debt (k)

        11.00%/1.00%       4/12/2018       12/2/2025       22,318       22,235       22,318    

Preferred Equity (392 shares) (j)

          4/12/2018           392       483    

Preferred Equity (48 shares) (j)

          12/2/2019           48       60    

Common Equity (10,622 shares) (j)

          4/12/2018           462       694    
             

 

 

   

 

 

   
              $ 23,137     $ 23,555       6

 

9


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 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  

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     $ 7,167     $ 6,997     $ 7,167    

Preferred Equity (500,000 shares) (j)

          11/25/2019           500       550    
             

 

 

   

 

 

   
                7,497       7,717       2

Pugh Lubricants, LLC

    Specialty Distribution                  

Second Lien Debt (k)

        12.25%/0.00%       11/10/2016       5/10/2022       26,581       26,522       26,581    

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

          11/10/2016           284       652    
             

 

 

   

 

 

   
                26,806       27,233       7

Revenue Management Solutions, LLC

    Information Technology Services                  

Common Equity (113 shares)

          1/4/2017           1,125       2,852       1

Rhino Assembly Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

        12.00%/1.00%       8/11/2017       2/11/2023       11,498       11,466       10,140    

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       183    
             

 

 

   

 

 

   
                12,410       10,323       3

Road Safety Services, Inc.

    Business Services                  

Second Lien Debt

        11.25%/1.50%       9/18/2018       3/18/2024       10,300       10,267       10,300    

Common Equity (655 units)

          9/18/2018           621       820    
             

 

 

   

 

 

   
                10,888       11,120       3

Rohrer Corporation

    Packaging                  

Subordinated Debt (j)

        10.50%/1.00%       10/1/2018       4/1/2024       13,945       13,898       13,945    

Common Equity (400 shares) (j)

          7/18/2016           780       1,099    
             

 

 

   

 

 

   
                14,678       15,044       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       14,962       14,880       14,880       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       3,089       3,095    

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

          9/8/2016           544       1,195    
             

 

 

   

 

 

   
                3,633       4,290       1

Software Technology, LLC

    Information Technology Services                  

Subordinated Debt (k)

        11.00%/0.00%       12/23/2016       6/23/2023       10,000       9,976       10,000    

Common Equity (6 shares)

          12/23/2016           646       823    
             

 

 

   

 

 

   
                10,622       10,823       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       12,766       12,889    

Common Equity (500 units) (j)

          5/8/2019           596       615    
             

 

 

   

 

 

   
                13,362       13,504       4

SpendMend LLC

    Business Services                  

Second Lien Debt (k)

        11.00%/0.75%       1/8/2018       7/8/2023       10,535       10,505       10,535    

Common Equity (1,000,000 units)

          1/8/2018           1,000       1,638    
             

 

 

   

 

 

   
                11,505       12,173       3

TransGo, LLC

    Component Manufacturing                  

Common Equity (500 units) (j)

          2/28/2017           499       568       0

The Tranzonic Companies

    Specialty Distribution                  

Subordinated Debt (j)

        10.00%/1.25%       3/27/2018       3/27/2025       6,966       6,919       6,966    

Preferred Equity (5,653 units) (j)

          3/27/2018           565       695    

Common Equity (1 units) (j)

          3/27/2018           —         166    
             

 

 

   

 

 

   
                7,484       7,827       2

UBEO, LLC

    Business Services                  

Subordinated Debt (j)

        11.00%/0.00%       4/3/2018       10/3/2024       13,893       13,804       12,236    

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

          4/3/2018           668       486    
             

 

 

   

 

 

   
                14,472       12,722       3

United Biologics, LLC

    Healthcare Services                  

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

          4/1/2012           1,008       21    

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

          3/5/2012           566       17    
             

 

 

   

 

 

   
                1,574       38       0

Virginia Tile Company, LLC

    Specialty Distribution                  

Second Lien Debt (j)

        12.25%/0.00%       12/19/2014       4/7/2022       12,000       11,993       10,498    

Common Equity (17 units) (j)

          12/19/2014           342       272    
             

 

 

   

 

 

   
                12,335       10,770       3

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       10,000       9,860       9,860       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       19,833       19,379    

Preferred Equity (347,222 units) (j)

          5/15/2019           750       620    
             

 

 

   

 

 

   
                20,583       19,999       5

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       19,766       19,015    

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

          2/27/2017           1,478       1,808    
             

 

 

   

 

 

   
                21,244       20,823       5
             

 

 

   

 

 

   

Total Non-control/Non-affiliate Investments

              $ 675,915     $ 640,125       170
             

 

 

   

 

 

   

Total Investments

              $ 746,298     $ 732,620       195

 

 

(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, 2020.

 

10


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

June 30, 2020

(in thousands, except shares)

 

(e)

Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of June 30, 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 June 30, 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).

(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 June 30, 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 5.05% 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.

(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 3.84% 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.

(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 June 30, 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 3.21% 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 3.41% 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 2.71% 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 4.01% 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 4.63% 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 2.87% 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 3.18% 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 June 30, 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 June 30, 2020, meaning the Company has ceased recognizing PIK interest income on the investment.

(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 4.50% 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.

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)

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   $ 4,420     $ 4,418     $ 4,277    

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)

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

                 

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)

      000%/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%) / (200%)   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

Control Scan, 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 (Eb Lens)

  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%