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, 2021

OR

 

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

For the transition period from                      to                     

Commission file number 814-00861

Fidus Investment Corporation

(Exact Name of Registrant as Specified in its Charter)

 

Maryland   27-5017321

(State or Other Jurisdiction of

Incorporation or Organization)

 

(I.R.S. Employer

Identification No.)

1603 Orrington Avenue, Suite 1005

Evanston, Illinois

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

(847) 859-3940

(Registrant’s telephone number, including area code)

 

 

n/a

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

 

 

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

 

Title of each class

 

Trading
Symbol

 

Name of each exchange
on which registered

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

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

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

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

 

Large accelerated filer

 

Accelerated filer

 

Non-accelerated filer

 

Smaller reporting

company ☐

 

Emerging growth

company ☐

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

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

As of May 3, 2021, the Registrant had outstanding 24,437,400 shares of common stock, $0.001 par value.

 

 

 


Table of Contents

FIDUS INVESTMENT CORPORATION

TABLE OF CONTENTS

QUARTERLY REPORT ON FORM 10-Q

 

PART I — FINANCIAL INFORMATION

 

Item 1.

  Financial Statements.      3  
  Consolidated Statements of Assets and Liabilities — March 31, 2021 (unaudited) and December 31, 2020      3  
  Consolidated Statements of Operations — Three Months Ended March 31, 2021 (unaudited) and 2020 (unaudited)      4  
  Consolidated Statements of Changes in Net Assets — Three Months Ended March 31, 2021 (unaudited) and 2020 (unaudited)      5  
  Consolidated Statements of Cash Flows — Three Months Ended March 31, 2021 (unaudited) and 2020 (unaudited)      6  
  Consolidated Schedules of Investments — March 31, 2021 (unaudited) and December 31, 2020      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.      57  

Item 4.

  Controls and Procedures.      58  

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.      59  

Item 3.

  Defaults Upon Senior Securities.      59  

Item 4.

  Mine Safety Disclosures.      59  

Item 5.

  Other Information.      59  

Item 6.

  Exhibits.      60  

Signatures

 

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,
2021
    December 31,
2020
 

ASSETS

   

Investments, at fair value:

   

Control investments (cost: $26,390 and $32,969, respectively)

  $ 22,566     $ 28,253  

Affiliate investments (cost: $42,504 and $31,836, respectively)

    96,014       81,394  

Non-control/non-affiliate  investments (cost: $587,727 and $622,222, respectively)

    593,304       633,222  
 

 

 

   

 

 

 

Total investments, at fair value (cost: $656,621 and $687,027, respectively)

    711,884       742,869  

Cash and cash equivalents

    60,175       124,308  

Interest receivable

    7,091       7,548  

Prepaid expenses and other assets

    1,733       1,015  
 

 

 

   

 

 

 

Total assets

  $ 780,883     $ 875,740  
 

 

 

   

 

 

 

LIABILITIES

   

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

  $ 131,092     $ 144,004  

Notes, net of deferred financing costs (Note 6)

    202,576       300,294  

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

    14,063       (1,048

Accrued interest and fees payable

    2,967       3,500  

Base management fee payable – due to affiliate

    3,176       3,244  

Income incentive fee payable – due to affiliate

    2,669       2,610  

Capital gains incentive fee payable – due to affiliate

    11,122       11,031  

Administration fee payable and other – due to affiliate

    194       576  

Taxes (receivable) payable

    (425     275  

Accounts payable and other liabilities

    437       494  
 

 

 

   

 

 

 

Total liabilities

    367,871       464,980  
 

 

 

   

 

 

 

Commitments and contingencies (Note 7)

   

NET ASSETS

   

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

    24       24  

Additional paid-in capital

    363,751       363,751  

Total distributable earnings

    49,237       46,985  
 

 

 

   

 

 

 

Total net assets

    413,012       410,760  
 

 

 

   

 

 

 

Total liabilities and net assets

  $ 780,883     $ 875,740  
 

 

 

   

 

 

 

Net asset value per common share

  $ 16.90     $ 16.81  
 

 

 

   

 

 

 

See Notes to Consolidated Financial Statements (unaudited).

 

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FIDUS INVESTMENT CORPORATION

Consolidated Statements of Operations (unaudited)

(in thousands, except shares and per share data)

 

     Three Months Ended
March 31,
 
     2021     2020  

Investment Income:

    

Interest income

    

Control investments

   $ 593     $ 432  

Affiliate investments

     848       983  

Non-control/non-affiliate  investments

     17,697       16,052  
  

 

 

   

 

 

 

Total interest income

     19,138       17,467  

Payment-in-kind interest income

    

Control investments

     341       425  

Affiliate investments

     111       40  

Non-control/non-affiliate  investments

     516       616  
  

 

 

   

 

 

 

Total payment-in-kind  interest income

     968       1,081  

Dividend income

    

Control investments

     —         —    

Affiliate investments

     —         107  

Non-control/non-affiliate  investments

     93       29  
  

 

 

   

 

 

 

Total dividend income

     93       136  

Fee income

    

Control investments

     400       —    

Affiliate investments

     183       —    

Non-control/non-affiliate  investments

     2,508       1,291  
  

 

 

   

 

 

 

Total fee income

     3,091       1,291  

Interest on idle funds

     —         8  
  

 

 

   

 

 

 

Total investment income

     23,290       19,983  
  

 

 

   

 

 

 

Expenses:

    

Interest and financing expenses

     5,194       4,960  

Base management fee

     3,176       3,272  

Incentive fee - income

     2,669       1,855  

Incentive fee (reversal) - capital gains

     91       (8,878

Administrative service expenses

     413       466  

Professional fees

     323       553  

Other general and administrative expenses

     345       335  
  

 

 

   

 

 

 

Total expenses

     12,211       2,563  
  

 

 

   

 

 

 

Net investment income before income taxes

     11,079       17,420  

Income tax provision (benefit)

     (2     3  
  

 

 

   

 

 

 

Net investment income

     11,081       17,417  
  

 

 

   

 

 

 

Net realized and unrealized gains (losses) on investments:

    

Net realized gains (losses):

    

Control investments

     957       —    

Affiliate investments

     —         24,332  

Non-control/non-affiliate  investments

     2,259       7,046  
  

 

 

   

 

 

 

Total net realized gain (loss) on investments

     3,216       31,378  
  

 

 

   

 

 

 

Income tax (provision) benefit from realized gains on investments

     —         (1,051

Net change in unrealized appreciation (depreciation):

    

Control investments

     892       (1,696

Affiliate investments

     3,952       (39,253

Non-control/non-affiliate  investments

     (5,423     (33,641
  

 

 

   

 

 

 

Total net change in unrealized appreciation (depreciation) on investments

     (579     (74,590
  

 

 

   

 

 

 

Net gain (loss) on investments

     2,637       (44,263

Realized losses on extinguishment of debt

     (2,180     (125
  

 

 

   

 

 

 

Net increase (decrease) in net assets resulting from operations

   $ 11,538     $ (26,971
  

 

 

   

 

 

 

Per common share data:

    

Net investment income per share-basic and diluted

   $ 0.45     $ 0.71  
  

 

 

   

 

 

 

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

   $ 0.47     $ (1.10
  

 

 

   

 

 

 

Dividends declared per share

   $ 0.38     $ 0.39  
  

 

 

   

 

 

 

Weighted average number of shares outstanding — basic and diluted

     24,437,400       24,457,634  
  

 

 

   

 

 

 

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

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  
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at December 31, 2020

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     —         —         —         11,081       11,081  

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

     —         —         —         3,216       3,216  

Net unrealized appreciation (depreciation) on investments

     —         —         —         (579     (579

Realized losses on extinguishment of debt

     —         —         —         (2,180     (2,180

Dividends declared

     —         —         —         (9,286     (9,286
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balances at March 31, 2021

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

* amount is greater than zero but less than one

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,  
     2021     2020  

Cash Flows from Operating Activities:

    

Net increase (decrease) in net assets resulting from operations

   $ 11,538     $ (26,971

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

     579       74,590  

Net realized (gain) loss on investments

     (3,216     (31,378

Interest and dividend income paid-in-kind

     (968     (1,081

Accretion of original issue discount

     (597     (87

Accretion of loan origination fees

     (747     (260

Purchase of investments

     (63,107     (68,192

Proceeds from sales and repayments of investments

     98,565       73,772  

Proceeds from loan origination fees

     476       615  

Realized losses on extinguishment of debt

     2,180       125  

Amortization of deferred financing costs

     583       550  

Changes in operating assets and liabilities:

    

Interest receivable

     457       889  

Prepaid expenses and other assets

     (652     224  

Accrued interest and fees payable

     (533     (1,283

Base management fee payable – due to affiliate

     (68     (63

Income incentive fee payable – due to affiliate

     59       358  

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

     91       (8,878

Administration fee payable and other – due to affiliate

     (382     160  

Taxes payable

     (700     (424

Accounts payable and other liabilities

     (57     480  
  

 

 

   

 

 

 

Net cash provided by (used for) operating activities

     43,501       13,146  
  

 

 

   

 

 

 

Cash Flows from Financing Activities:

    

Proceeds received from SBA debentures

     6,000       6,000  

Repayments of SBA debentures

     (19,200     (7,000

Principal payments on Notes

     (100,000      

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

     15,000       10,000  

Payment of deferred financing costs

     (148     (128

Dividends paid to stockholders, including expenses

     (9,286     (9,537

Repurchases of common stock under Stock Repurchase Program

           (268
  

 

 

   

 

 

 

Net cash provided by (used for) financing activities

     (107,634     (933
  

 

 

   

 

 

 

Net increase (decrease) in cash and cash equivalents

     (64,133     12,213  

Cash and cash equivalents:

    

Beginning of period

     124,308       15,012  
  

 

 

   

 

 

 

End of period

   $ 60,175     $ 27,225  
  

 

 

   

 

 

 

Supplemental disclosure of cash flow information:

    

Cash payments for interest

   $ 5,144     $ 5,693  

Cash payments for taxes, net of tax refunds received

   $ 698     $ 1,478  

See Notes to Consolidated Financial Statements (unaudited).

 

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FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2021

(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)

                 

US GreenFiber, LLC

    Building Products Manufacturing                  

Second Lien Debt (j)

        8.00%/5.00%     7/3/2014     8/30/2024     $ 15,580     $ 15,576     $ 13,140    

Second Lien Debt (j)

        8.50%/6.50%       11/9/2018       8/30/2024       5,115       5,115       5,249    

Second Lien Debt (j)

        8.50%/6.50%       8/10/2020       8/30/2024       4,089       4,089       4,177    

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

          7/3/2014           586       —      

Common Equity (425,508 units) (j)

          8/30/2019           1       —      

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

          7/1/2020           1,023       —      
             

 

 

   

 

 

   
                26,390       22,566       5
             

 

 

   

 

 

   

Total Control Investments

              $ 26,390     $ 22,566       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           —         42       0

Medsurant Holdings, LLC

    Healthcare Services                  

Second Lien Debt (j)

        14.00%/0.00%     12/18/2015       3/10/2022       8,031       8,029       8,091    

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

          4/12/2011           673       623    

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

          4/12/2011           2,258       2,259    
             

 

 

   

 

 

   
                10,960       10,973       3

Mirage Trailers LLC

    Utility Equipment Manufacturing                  

Second Lien Debt (k)

    (L + 10.00%) / (1.00%)     11.00%/5.00%       11/25/2015       11/25/2021       6,492       6,570       6,492    

Common Equity (2,500,000 shares)

          11/25/2015           2,188       1,277    
             

 

 

   

 

 

   
                8,758       7,769       2

Pfanstiehl, Inc.

    Healthcare Products                  

Common Equity (4,250 units) (j)

          3/29/2013           425       34,018       8
                 

Pinnergy, Ltd.

    Oil & Gas Services                  

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

          10/13/2016           3,000       20,895       5
                 

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

    Aerospace & Defense Manufacturing                  

First Lien Debt (ag)

    (L + 5.50%) / (1.00%)     6.50%/0.00%       2/12/2021       2/11/2026       8,000       7,942       7,942    

Common Equity (41,290 units) (j)

          2/12/2021           2,609       4,240    
             

 

 

   

 

 

   
                10,551       12,182       3

Steward Holding LLC (dba Steward Advanced Materials)

    Aerospace & Defense Manufacturing                  

Second Lien Debt

        12.00%/1.50%       11/12/2015       10/31/2021       7,812       7,810       7,812    

Common Equity (1,000,000 units)

          11/12/2015           1,000       2,295    
             

 

 

   

 

 

   
                8,810       10,107       2
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 42,504     $ 96,014       23
             

 

 

   

 

 

   

 

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FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2021

(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

                 

Allied 100 Group, Inc.

  Healthcare Products                

Subordinated Debt (k)

        11.25%/0.00%       7/31/2019       5/26/2023     $ 21,501     $ 21,439     $ 21,501    

Common Equity (625,000 units) (j)

          11/26/2014           626       1,039    
             

 

 

   

 

 

   
                22,065       22,540       6

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

  Industrial Cleaning & Coatings                

Second Lien Debt

        10.50%/1.75%       3/2/2020       9/2/2026       10,125       10,041       7,858    

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

          7/21/2017           637       159    
             

 

 

   

 

 

   
                10,678       8,017       2

Alzheimer’s Research and Treatment Center, LLC

  Healthcare Services                

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

          10/23/2018           500       880       0
                 

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       17,440       17,503    

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

          5/31/2018           500       121    

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

          8/6/2019           250       226    

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

          11/2/2020           171       171    
             

 

 

   

 

 

   
                18,361       18,021       4

Applied Data Corporation

  Information Technology Services                

First Lien Debt (v)

    (L + 6.25%) / (1.50%)     7.75%/0.00%       11/6/2020       11/6/2025       8,000       7,951       7,951    

Common Equity (22 units)

          11/6/2020           —         —      

Preferred Equity (1,070,614 units)

          11/6/2020           1,071       1,071    
             

 

 

   

 

 

   
                9,022       9,022       2

Argo Turboserve Corporation

  Business Services                

Second Lien Debt (j)

    (L + 10.75%) / (2.00%)     12.75%/0.00%       12/26/2018       6/28/2023       12,750       12,713       12,750       3
                 

AVC Investors, LLC (dba Auveco)

  Specialty Distribution                

Second Lien Debt (k)

        11.50%/0.00%       1/3/2018       7/3/2023       22,500       22,453       22,500    

Common Equity (5,000 units) (j)

          1/3/2018           487       481    
             

 

 

   

 

 

   
                22,940       22,981       6

B&B Roadway and Security Solutions, LLC

  Component Manufacturing                

Second Lien Debt

        11.25%/4.00%       2/27/2018       1/1/2022       11,019       11,004       10,399    

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

        2/27/2018           497       —      
             

 

 

   

 

 

   
                11,501       10,399       3

Bandon Fitness (Texas), Inc.

  Retail                

Common Equity (545,810 units) (j)

        8/9/2019           931       328       0
               

BCM One Group Holdings, Inc.

  Information Technology Services                

Subordinated Debt (k)

        11.00%/0.00%       1/3/2019       7/3/2024       30,000       29,895       30,000    

Common Equity (1,281 shares)

        1/3/2019           48       653    

Preferred Equity (74 shares)

        1/3/2019           736       736    
             

 

 

   

 

 

   
                30,679       31,389       8

Bedford Precision Parts LLC

  Specialty Distribution                

First Lien Debt (j)(s)

    (L + 6.25%) / (2.00%)     8.25%/0.00%       3/12/2019       3/12/2024       4,531       4,509       4,216    

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

        3/12/2019           500       247    
             

 

 

   

 

 

   
                5,009       4,463       1

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

  Restaurants                

Common Equity (521,021 units) (j)

        12/15/2015           521       —      

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

        12/6/2019           96       22    
             

 

 

   

 

 

   
                617       22       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       7,500       7,456       7,369    

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

  (L + 9.00%) / (2.00%)     11.00%/0.00%       1/31/2020       1/31/2025       3,450       3,431       3,450    
             

 

 

   

 

 

   
                10,887       10,819       3

Comply365, LLC

  Aerospace & Defense Manufacturing                

First Lien Debt (ad)

    (L + 8.00%) / (1.00%)     9.00%/0.00%       12/11/2020       12/11/2025       9,570       9,433       9,433    

Common Equity (1,000,000 units)

          12/11/2020           1,000       1,000    
             

 

 

   

 

 

   
                10,433       10,433       3

CRS Solutions Holdings, LLC (dba CRS Texas)

  Business Services                

Second Lien Debt

        10.50%/1.50%       3/14/2018       4/30/2024       11,347       11,315       11,347    

Common Equity ($74 unfunded commitment) (489,712 units) (h)(j)

        3/14/2018           547       347    
             

 

 

   

 

 

   
                11,862       11,694       3

Dataguise, Inc.

  Information Technology Services                

First Lien Debt (j)

        11.00%/0.00%       12/31/2020       12/31/2023       20,000       19,908       19,908    

Common Equity (909 shares) (j)

          12/31/2020           1,500       1,500    
             

 

 

   

 

 

   
                21,408       21,408       5

Diversified Search LLC

  Business Services                

First Lien Debt (k)(r)

    (L + 8.00%) / (1.75%)     9.75%/0.00%       2/7/2019       2/7/2024       17,355       17,175       17,355    

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

          2/7/2019           593       657    
             

 

 

   

 

 

   
                17,768       18,012       4

EBL, LLC (EbLens)

  Retail                

Second Lien Debt (j)(p)

        12.00%/1.00%       7/13/2017       1/13/2023       9,253       9,218       5,709    

Common Equity (75,000 units) (j)

        7/13/2017           750       —      
             

 

 

   

 

 

   
                9,968       5,709       1

ECM Industries, LLC

  Component Manufacturing                

Subordinated Debt (j)

        11.50%/0.00%       4/30/2020       5/23/2026       11,500       11,305       11,500    

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

        4/30/2020           1,000       1,830    
             

 

 

   

 

 

   
                12,305       13,330       3

Elements Brands, LLC

  Consumer Products                

First Lien Debt

        12.25%/0.00%       12/31/2020       12/31/2025       6,000       5,968       5,968    

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

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

 

 

   

 

 

   
                8,114       8,114       2

 

8


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2021

(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  

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

  Vending Equipment Manufacturing                

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

          12/31/2020           2,000       2,000    

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

          12/31/2020           —         —      

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

          12/31/2020           —         —      
             

 

 

   

 

 

   
                2,000       2,000       0

Global Plasma Solutions, Inc.

  Component Manufacturing                

Common Equity (947 shares) (j)

          9/21/2018           52       10,011       2
                 

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

  Component Manufacturing                

First Lien Debt (w)

    (L + 7.25%) / (1.00%)     8.25%/0.00%       1/22/2021       1/22/2026       11,000       10,841       10,841    

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

          1/22/2021           516       516    
             

 

 

   

 

 

   
                11,357       11,357       3

Gurobi Optimization, LLC

  Information Technology Services                

Common Equity (3 shares)

          12/19/2017           607       1,824       0
                 

Haematologic Technologies, Inc.

  Healthcare Services                

First Lien Debt (x)

    (L + 8.25%) / (2.00%)     10.25%/0.00%       10/11/2019       10/11/2024       5,500       5,471       5,093    

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

          10/11/2019           549       112    
             

 

 

   

 

 

   
                6,020       5,205       1

Hallmark Health Care Solutions, Inc.

  Healthcare Services                

First Lien Debt (j)(ae)

    (L + 7.25%) / (1.50%)     8.75%/0.00%       12/4/2020       12/4/2025       8,500       8,440       8,440    

Common Equity (750,000 units) (j)

          12/4/2020           750       750    
             

 

 

   

 

 

   
                9,190       9,190       2

Healthfuse, LLC

  Healthcare Services                

First Lien Debt (af)

    (L + 7.25%) / (1.00%)     8.25%/0.00%       11/13/2020       11/13/2025       6,000       5,962       5,962    

Preferred Equity (197,980 units)

          11/13/2020           750       750    
             

 

 

   

 

 

   
                6,712       6,712       2

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

  Component Manufacturing                

Second Lien Debt (j)

        11.50%/1.50%       9/23/2016       12/31/2019       10,346       10,346       10,148    

Revolving Loan (j)

    (L + 6.50%) / (0.00%)     6.62%/0.00%       12/20/2019       12/15/2019       5,962       5,962       5,962    

First Lien Debt (j)

    (L + 6.95%) / (0.00%)     7.07%/0.00%       12/20/2019       12/15/2019       4,707       4,707       4,707    

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

          4/18/2018           1,000       —      

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

          9/23/2016           473       —      
             

 

 

   

 

 

   
                22,488       20,817       5

Hub Acquisition Sub, LLC (dba Hub Pen)

  Promotional products                

Second Lien Debt (k)

        13.50%/0.00%       3/23/2016       3/31/2023       25,000       24,977       21,294    

Common Equity (3,750 units)

          3/23/2016           131       —      

Preferred Equity (868 units) (j)

          10/16/2020           154       55    
             

 

 

   

 

 

   
                25,262       21,349       5

IBH Holdings, LLC (fka Inflexxion, Inc.)

  Business Services                

Common Equity (150,000 units)

          6/20/2018           —         415       0
                 

Ipro Tech, LLC

  Information Technology Services                

First Lien Debt (j)(u)

    (L + 8.50%) / (2.00%)     10.50%/0.00%       6/30/2020       6/30/2025       2,453       1,934       2,453       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       1/28/2023       2,194       2,194       2,194       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       14,963       15,000    

Common Equity (765 shares) (j)

          12/8/2017           765       969    
             

 

 

   

 

 

   
                15,728       15,969       4

LifeSpan Biosciences, Inc.

  Healthcare Products                

Subordinated Debt (j)

        11.50%/0.00%       3/19/2021       9/19/2026       16,000       15,921       15,921    

Common Equity (100 shares) (j)

          3/19/2021           1,000       1,000    
             

 

 

   

 

 

   
                16,921       16,921       4

LNG Indy, LLC (dba Kinetrex Energy)

  Oil & Gas Distribution                

Second Lien Debt (k)

        11.50%/0.00%       12/28/2016       11/12/2021       10,127       10,114       10,127    

Common Equity (500 units)

          12/28/2016           500       1,052    
             

 

 

   

 

 

   
                10,614       11,179       3

Mesa Line Services, LLC

  Utilities: Services                

Second Lien Debt (j)

        10.50%/1.50%       11/30/2017       8/1/2024       17,561       17,498       15,321    

Common Equity (981 shares) (j)

          11/30/2017           1,148       215    
             

 

 

   

 

 

   
                18,646       15,536       4

Midwest Transit Equipment, Inc.

  Transportation services                

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

          6/23/2017           180       140    

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

          6/23/2017           190       253    
             

 

 

   

 

 

   
                370       393       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

  Component Manufacturing                

Common Equity (378 units) (j)

          5/24/2017           500       254       0
                 

OMC Investors, LLC (dba Ohio Medical Corporation)

  Healthcare Products                

Second Lien Debt

        13.00%/0.00%       1/26/2021       6/30/2024       5,000       4,953       4,954    

Common Equity (5,000 units)

          1/15/2016           222       668    
             

 

 

   

 

 

   
                5,175       5,622       1

Palisade Company, LLC

  Information Technology Services                

Common Equity (50 shares) (j)

          11/15/2018           500       829       0

 

9


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2021

(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  

Palmetto Moon, LLC

    Retail                  

First Lien Debt (j)

      11.50%/2.50%   11/3/2016     10/31/2021       4,731       4,726       4,731    

Common Equity (499 units) (j)

        11/3/2016         494       307    
             

 

 

   

 

 

   
                5,220       5,038       1

Pool & Electrical Products, LLC

    Specialty Distribution                  

Second Lien Debt (j)

      11.75%/0.00%   10/28/2020     4/28/2027       12,000       11,888       11,889    

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

        10/28/2020         1,500       1,500    
             

 

 

   

 

 

   
                13,388       13,389       3

Power Grid Components, Inc.

    Specialty Distribution                  

Second Lien Debt (k)

      11.00%/0.50%   4/12/2018     12/2/2025       17,466       17,394       17,466    

Preferred Equity (392 shares) (j)

        4/12/2018         392       522    

Preferred Equity (48 shares) (j)

        12/2/2019         48       64    

Common Equity (10,622 shares) (j)

        4/12/2018         462       777    
             

 

 

   

 

 

   
                18,296       18,829       5

Prime AE Group, Inc.

    Business Services                  

First Lien Debt (j)

    (L + 6.25%) / (2.00%)   8.25%/0.00%   11/25/2019     11/25/2024       6,667       6,526       6,667    

Preferred Equity (500,000 shares) (j)

        11/25/2019         500       613    
             

 

 

   

 

 

   
                7,026       7,280       2

Pugh Lubricants, LLC (n)

    Specialty Distribution                  

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

        11/10/2016         —         23       0
                 

Revenue Management Solutions, LLC

    Information Technology Services                  

Common Equity (113 shares)

        1/4/2017         1,125       3,439       1
                 

Rhino Assembly Company, LLC

    Specialty Distribution                  

Second Lien Debt (k)

      12.00%/1.00%   8/11/2017     2/11/2023       10,708       10,686       10,708    

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

 

    12.00%/1.00%  

8/11/2017

    5/17/2022       —         —         —      

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

        8/11/2017         944       757    

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

        12/10/2020         136       140    

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

        12/10/2020         —         —      
             

 

 

   

 

 

   
                11,766       11,605       3

Road Safety Services, Inc.

    Business Services                  

Second Lien Debt

      11.25%/1.50%   9/18/2018     3/18/2024       10,418       10,392       10,418    

Common Equity (655 units)

        9/18/2018         621       1,101    
             

 

 

   

 

 

   
                11,013       11,519       3

Routeware, Inc.

    Information Technology Services                  

First Lien Debt (k)(aa)

    (L + 6.75%) / (1.25%)   8.00%/0.00%   2/7/2020     2/7/2026       16,888       16,797       16,888       4
                 

SES Investors, LLC (dba SES Foam)

    Building Products Manufacturing                  

Second Lien Debt

      13.00%/0.00%   9/8/2016     12/29/2022       1,000       997       1,000    

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

        9/8/2016         537       1,771    
             

 

 

   

 

 

   
                1,534       2,771       1

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       12,889       12,790       12,889    

Common Equity (596 units) (j)

        5/8/2019         596       600    
             

 

 

   

 

 

   
                13,386       13,489       3

SpendMend LLC

    Business Services                  

Common Equity (1,000,000 units)

        1/8/2018         972       1,986       1
                 

TransGo, LLC

    Component Manufacturing                  

Common Equity (500 units) (j)

        2/28/2017         457       1,154       0
                 

The Tranzonic Companies

    Specialty Distribution                  

Subordinated Debt (j)

      10.00%/1.00%   3/27/2018     3/27/2025       7,019       6,979       7,019    

Preferred Equity (5,653 units) (j)

        3/27/2018         565       747    

Common Equity (1 units) (j)

        3/27/2018         —         999    
             

 

 

   

 

 

   
                7,544       8,765       2

UBEO, LLC

    Business Services                  

Subordinated Debt (j)

      11.00%/0.00%   4/3/2018     10/3/2024       13,893       13,819       13,893    

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

        4/3/2018         668       659    
             

 

 

   

 

 

   
                14,487       14,552       4

United Biologics, LLC

    Healthcare Services                  

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

        4/1/2012         1,008       —      

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

        3/5/2012         566       —      
             

 

 

   

 

 

   
                1,574       —         0

Virginia Tile Company, LLC

    Specialty Distribution                  

Second Lien Debt (j)

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

Common Equity (17 units) (j)

        12/19/2014         342       706    
             

 

 

   

 

 

   
                12,342       12,706       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       9,884       10,000       2
                 

Wheel Pros, Inc.

    Specialty Distribution                  

Preferred Equity (347,222 units) (j)

        5/15/2019         301       1,817       0
                 

Wonderware Holdings, LLC (dba CORE Business Technologies)

    Information Technology Services                  

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

    (L + 7.25%) / (1.00%)   8.25%/0.00%   2/10/2021     2/9/2026       6,500       6,453       6,453       2
                 

Worldwide Express Operations, LLC

    Transportation services                  

Second Lien Debt (j)

    (L + 8.00%) / (1.00%)   9.00%/0.00%   2/27/2017     2/3/2025       20,000       19,804       20,000    

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

        2/27/2017         1,478       2,191    
             

 

 

   

 

 

   
                21,282       22,191       5

Xeeva, Inc.

    Information Technology Services                  

First Lien Debt (j)

    (L + 10.50%) / (1.50%)   12.00%/0.00%   2/11/2021     2/11/2026       8,900       8,849       8,849    

Delayed Draw Commitment ($400 unfunded commitment) (j)(o)

 

      2/11/2021         —         —      
             

 

 

   

 

 

   
                8,849       8,849       2
             

 

 

   

 

 

   

Total Non-control/Non-affiliate Investments

              $ 587,727     $ 593,304       144
             

 

 

   

 

 

   

Total Investments

              $ 656,621     $ 711,884       172
             

 

 

   

 

 

   

 

10


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments (unaudited)

March 31, 2021

(in thousands, except shares)

 

 

(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, 2021.

(e)

Rate includes the cash interest or dividend rate and paid-in-kind interest or dividend rate, if any, as of March 31, 2021. Generally, payment-in-kind interest can be paid-in-kind or all in cash.

(f)

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

(g)

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

(h)

Investment is held by a taxable subsidiary of the Company.

(i)

The disclosed commitment represents the unfunded amount as of March 31, 2021. The Company is earning 0.50% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded.

(j)

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

(k)

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

(l)

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

(m)

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

(n)

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

(o)

The disclosed commitment represents the unfunded amount as of March 31, 2021. The Company is earning 5.20% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate which will be earned if the commitment is funded.

(p)

Investment was on PIK-only non-accrual status as of March 31, 2021, meaning the Company has ceased recognizing PIK interest income on the investment.

(q)

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

(r)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.75% 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 3.13% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(t)

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

(u)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.50% 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.

(v)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.25% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(w)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 7.45% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(x)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.11% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(y)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.86% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(z)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.92% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(aa)

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

(ab)

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

(ac)

The disclosed commitment represents the unfunded amount as of March 31, 2021. The Company is earning 1.00% interest on the unfunded balance of the commitment. The interest rate disclosed represents the rate earned on the outstanding, funded balance of the commitment.

(ad)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 3.33% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ae)

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

(af)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 4.03% on its “last out” tranche of the portfolio company’s senior term debt, which was previously syndicated into “first out” and “last out” tranches, whereby the “first out” tranche will have priority as to the “last out” tranche with respect to payments of principal, interest and any other amounts due thereunder.

(ag)

In addition to the interest earned based on the stated interest rate of this security, the Company is entitled to receive an additional interest amount of 5.50% 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, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

 

Industry

 

Variable Index

Spread / Floor (d)

 

Rate (e)

Cash/PIK

  Investment
Date (f)
    Maturity     Principal
Amount
    Cost     Fair
Value (g)
    Percent of
Net Assets
 

Control Investments (t)

                 

FDS Avionics Corp. (dba Flight Display Systems)

 

Aerospace & Defense Manufacturing

             

Second Lien Debt

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

Revolving Loan ($30 unfunded commitment)

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

Common Equity (7,478 shares) (j)

          11/10/2017           748       —      

Preferred Equity (2,550 shares)

          12/26/2019           2,550       2,269    
             

 

 

   

 

 

   
                8,420       7,391       2

US GreenFiber, LLC

 

Building Products Manufacturing

             

Second Lien Debt (j)

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

Second Lien Debt (j)

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

Second Lien Debt (j)

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

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

          7/3/2014           586       —      

Common Equity (425,508 units) (j)

          8/30/2019           1       —      

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

          7/1/2020           1,023       —      
             

 

 

   

 

 

   
                24,549       20,862       5
             

 

 

   

 

 

   

Total Control Investments

              $ 32,969     $ 28,253       7
             

 

 

   

 

 

   

Affiliate Investments (l)

                 

FAR Research Inc. (n)

 

Specialty Chemicals

               

Common Equity (1,396 units)

          3/31/2014         $ —       $ 28       0

Fiber Materials, Inc. (n)

 

Aerospace & Defense Manufacturing

             

Common Equity (10 units)

          11/30/2016           —         41       0

Medsurant Holdings, LLC

 

Healthcare Services

               

Second Lien Debt (j)

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

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

          4/12/2011           673       620    

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

          4/12/2011           2,258       2,249    
             

 

 

   

 

 

   
                10,959       10,960       3

Mirage Trailers LLC

 

Utility Equipment Manufacturing

               

Second Lien Debt (k)

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

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

          11/25/2015           2,188       84    
             

 

 

   

 

 

   
                8,671       6,494       2

Pfanstiehl, Inc.

 

Healthcare Products

             

Common Equity (4,250 units) (j)

          3/29/2013           425       33,505       8
                 

Pinnergy, Ltd.

 

Oil & Gas Services

               

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

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

Steward Holding LLC (dba Steward Advanced Materials)

 

Aerospace & Defense Manufacturing

             

Second Lien Debt

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

Common Equity (1,000,000 units)

          11/12/2015           1,000       1,994    
             

 

 

   

 

 

   
                8,781       9,777       2
             

 

 

   

 

 

   

Total Affiliate Investments

              $ 31,836     $ 81,394       20
             

 

 

   

 

 

   

 

12


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

 

Industry

 

Variable Index

Spread / Floor (d)

 

Rate (e)

Cash/PIK

  Investment
Date (f)
    Maturity     Principal
Amount
    Cost     Fair
Value (g)
    Percent of
Net Assets
 

Non-control/Non-affiliate Investments

                 

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

  Vending Equipment Manufacturing                

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

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

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

          12/31/2020           —         —      

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

          12/31/2020           —         —      
             

 

 

   

 

 

   
                2,000       2,000       0

Allied 100 Group, Inc.

  Healthcare Products                

Subordinated Debt (k)

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

Common Equity (625,000 units) (j)

          11/26/2014           625       1,087    
             

 

 

   

 

 

   
                22,057       22,587       5

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

  Industrial Cleaning & Coatings                

Second Lien Debt

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

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

          7/21/2017           637       275    
             

 

 

   

 

 

   
                10,630       8,036       2

Alzheimer’s Research and Treatment Center, LLC

  Healthcare Services                

First Lien Debt (j)(w)

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

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

          10/23/2018           500       766    
             

 

 

   

 

 

   
                6,971       7,350       2

American AllWaste LLC (dba WasteWater Transport Services)

  Environmental Industries                

Second Lien Debt (j)

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

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

          5/31/2018           500       241    

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

          8/6/2019           250       226    

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

          11/2/2020           171       171    
             

 

 

   

 

 

   
                18,355       18,141       4

Applied Data Corporation

  Information Technology Services                

First Lien Debt (v)

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

Common Equity (22 units)

          11/6/2020           —         —      

Preferred Equity (1,070,614 units)

          11/6/2020           1,071       1,071    
             

 

 

   

 

 

   
                9,020       9,020       2

Argo Turboserve Corporation

  Business Services                

Second Lien Debt (j)

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

AVC Investors, LLC (dba Auveco)

  Specialty Distribution                

Second Lien Debt (k)

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

Common Equity (5,000 units) (j)

          1/3/2018           487       464    
             

 

 

   

 

 

   
                22,935       22,964       6

B&B Roadway and Security Solutions, LLC

  Component Manufacturing                

Second Lien Debt

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

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

          2/27/2018           497       —      
             

 

 

   

 

 

   
                11,387       10,782       3

Bandon Fitness (Texas), Inc.

  Retail                

First Lien Debt (j)(z)

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

Common Equity (545,810 units) (j)

          8/9/2019           931       554    
             

 

 

   

 

 

   
                15,220       16,145       4

BCM One Group Holdings, Inc.

  Information Technology Services                

Subordinated Debt (k)

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

Common Equity (1,281 shares)

          1/3/2019           48       458    

Preferred Equity (74 shares)

          1/3/2019           736       737    
             

 

 

   

 

 

   
                30,671       31,195       8

Bedford Precision Parts LLC

  Specialty Distribution                

First Lien Debt (j)(s)

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

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

          3/12/2019           500       263    
             

 

 

   

 

 

   
                5,007       4,794       1

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

  Restaurants                

Common Equity (521,021 units) (j)

          12/15/2015           521       —      

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

          12/6/2019           96       34    
             

 

 

   

 

 

   
                617       34       0

Combined Systems, Inc.

  Aerospace & Defense Manufacturing                

First Lien Debt

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

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

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

 

 

   

 

 

   
                10,483       10,550       3

Comply365, LLC

  Aerospace & Defense Manufacturing                

First Lien Debt (ad)

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

Common Equity (1,000,000 units)

          12/11/2020           1,000       1,000    
             

 

 

   

 

 

   
                10,855       10,855       3

CRS Solutions Holdings, LLC (dba CRS Texas)

  Business Services                

Second Lien Debt

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

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

          3/14/2018           488       321    
             

 

 

   

 

 

   
                11,758       11,626       3

Dataguise, Inc.

  Information Technology Services                

First Lien Debt (j)

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

Common Equity (909 shares) (j)

          12/31/2020           1,500       1,500    
             

 

 

   

 

 

   
                21,400       21,400       5

Diversified Search LLC

  Business Services                

First Lien Debt (k)(r)

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

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

          2/7/2019           593       494    
             

 

 

   

 

 

   
                17,752       17,849       4

EBL, LLC (EbLens)

  Retail                

Second Lien Debt (j)(p)

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

Common Equity (75,000 units) (j)

          7/13/2017           750       —      
             

 

 

   

 

 

   
                9,964       5,454       1

 

13


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)

 

Industry

 

Variable Index

Spread / Floor (d)

 

Rate (e)

Cash/PIK

  Investment
Date (f)
    Maturity     Principal
Amount
    Cost     Fair
Value (g)
    Percent of
Net Assets
 

ECM Industries, LLC

 

Component Manufacturing

               

Subordinated Debt (j)

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

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

          4/30/2020           1,000       1,562    
             

 

 

   

 

 

   
                12,295       13,062       3

Elements Brands, LLC

 

Consumer Products

               

First Lien Debt

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

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

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

 

 

   

 

 

   
                8,113       8,113       2

French Transit, LLC

 

Consumer Products

               

First Lien Debt (j)

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

Global Plasma Solutions, Inc.

 

Component Manufacturing

               

Common Equity (947 shares) (j)

          9/21/2018           —         9,995       2
                 

Gurobi Optimization, LLC

 

Information Technology Services

               

Common Equity (3 shares)

          12/19/2017           592       1,660       0

Haematologic Technologies, Inc.

 

Healthcare Services

               

First Lien Debt (x)

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

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

          10/11/2019           549       255    
             

 

 

   

 

 

   
                6,018       5,755       1

Hallmark Health Care Solutions, Inc.

 

Healthcare Services

               

First Lien Debt (j)(ae)

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

Common Equity (750,000 units) (j)

          12/4/2020           750       750    
             

 

 

   

 

 

   
                9,187       9,187       2

Healthfuse, LLC

 

Healthcare Services

               

First Lien Debt (af)

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

Preferred Equity (197,980 units)

          11/13/2020           750       750    
             

 

 

   

 

 

   
                6,710       6,710       2

Hilco Plastics Holdings, LLC (dba Hilco Technologies)

 

Component Manufacturing

               

Second Lien Debt (j)

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

Revolving Loan (j)

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

First Lien Debt (j)

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

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

          4/18/2018           1,000       —      

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

          9/23/2016           473       —      
             

 

 

   

 

 

   
                22,828       19,932       5

Hub Acquisition Sub, LLC (dba Hub Pen)

 

Promotional products

               

Second Lien Debt (k)

      13.00%/0.00%     3/23/2016       3/31/2023       25,000       24,976       24,106    

Common Equity (3,750 units)

          3/23/2016           131       283    

Preferred Equity (868 units) (j)

          10/16/2020           154       158    
             

 

 

   

 

 

   
                25,261       24,547       6

IBH Holdings, LLC (fka Inflexxion, Inc.)

 

Business Services

               

Common Equity (150,000 units)

          6/20/2018           —         235       0
                 

Ipro Tech, LLC

 

Information Technology Services

               

First Lien Debt (j)(u)

    (L + 8.50%) / (2.00%)   10.50%/0.00%     6/30/2020       6/30/2025       2,469       1,923       2,469       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       2,140       2,140       2,140       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       14,960       15,000    

Common Equity (765 shares) (j)

          12/8/2017           765       841    
             

 

 

   

 

 

   
                15,725       15,841       4

LNG Indy, LLC (dba Kinetrex Energy)

 

Oil & Gas Distribution

               

Second Lien Debt (k)

      11.50%/1.50%     12/28/2016       11/12/2021       10,127       10,108       10,127    

Common Equity (500 units)

          12/28/2016           500       959    
             

 

 

   

 

 

   
                10,608       11,086       3

Mesa Line Services, LLC

 

Utilities: Services

               

Second Lien Debt (j)

      10.50%/0.50%     11/30/2017       8/1/2024       17,511       17,442       17,511    

Common Equity (981 shares) (j)

          11/30/2017           1,148       1,076    
             

 

 

   

 

 

   
                18,590       18,587       5

Midwest Transit Equipment, Inc.

 

Transportation services

               

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

          6/23/2017           180       118    

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

        6/23/2017           190       248    
             

 

 

   

 

 

   
                370       366       0

NGT Acquisition Holdings, LLC (dba Techniks Industries)

 

Component Manufacturing

               

Common Equity (378 units) (j)

          5/24/2017           500       227       0
                 

OMC Investors, LLC (dba Ohio Medical Corporation)

 

Healthcare Products

               

Second Lien Debt

      12.00%/0.00%     1/15/2016       6/30/2022       10,000       9,985       10,000    

Common Equity (5,000 units)

          1/15/2016           462       869    
             

 

 

   

 

 

   
                10,447       10,869       3

 

14


Table of Contents

FIDUS INVESTMENT CORPORATION

Consolidated Schedule of Investments

December 31, 2020

(in thousands, except shares)

 

Portfolio Company (a)(b)

Investment Type (c)        

 

Industry

 

Variable Index
Spread / Floor (d)

 

Rate (e)
Cash/PIK

 

Investment
Date (f)

 

Maturity

  Principal
Amount
    Cost     Fair
Value (g)
    Percent of
Net Assets
 
                 

Palisade Company, LLC

 

Information Technology Services

               

Common Equity (50 shares) (j)

        11/15/2018         500       630       0
                 

Palmetto Moon, LLC

 

Retail

               

First Lien Debt (j)

      11.50%/2.50%   11/3/2016   10/31/2021     4,779       4,773       4,779    

Common Equity (499 units) (j)

        11/3/2016         494       159    
             

 

 

   

 

 

   
                5,267       4,938       1

Pool & Electrical Products, LLC

 

Specialty Distribution

               

Second Lien Debt (j)

       11.75%/0.00%    10/28/2020   4/28/2027     12,000       11,883       11,883    

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

        10/28/2020         1,500       1,500    
             

 

 

   

 

 

   
                13,383       13,383       3

Power Grid Components, Inc.

 

Specialty Distribution

               

Second Lien Debt (k)

      11.00%/1.00%   4/12/2018   12/2/2025     22,433       22,357       22,433    

Preferred Equity (392 shares) (j)

        4/12/2018         392       509    

Preferred Equity (48 shares) (j)

        12/2/2019         48       63    

Common Equity (10,622 shares) (j)

        4/12/2018         462       740    
             

 

 

   

 

 

   
                23,259       23,745       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     6,833       6,683       6,833    

Preferred Equity (500,000 shares) (j)

        11/25/2019         500       566    
             

 

 

   

 

 

   
                7,183       7,399       2

Revenue Management Solutions, LLC

 

Information Technology Services

               

Common Equity (113 shares)

        1/4/2017         1,125       3,081       1
                 

Rhino Assembly Company, LLC

 

Specialty Distribution

               

Second Lien Debt (k)

      12.00%/1.50%   8/11/2017   2/11/2023     10,682       10,655       10,682    

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

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

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

        8/11/2017         944       629    

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

        12/10/2020         136       137    

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

        12/10/2020         —         —      
             

 

 

   

 

 

   
                11,735       11,448       3

Road Safety Services, Inc.

 

Business Services

               

Second Lien Debt

      11.25%/1.50%   9/18/2018   3/18/2024     10,379       10,351       10,379    

Common Equity (655 units)

        9/18/2018         621       882    
             

 

 

   

 

 

   
                10,972       11,261       3

Rohrer Corporation

 

Packaging

               

Subordinated Debt (j)

      10.50%/1.00%   10/1/2018   4/1/2024     14,017       13,976       14,017    

Common Equity (400 shares) (j)

        7/18/2016         780       1,591    
             

 

 

   

 

 

   
                14,756       15,608       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     14,888       14,814       14,888       4
                 

SES Investors, LLC (dba SES Foam)

 

Building Products Manufacturing

               

Second Lien Debt

      13.00%/0.00%   9/8/2016   12/29/2022     1,000       997       1,000    

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

        9/8/2016         537       1,869    
             

 

 

   

 

 

   
                1,534       2,869       1

Software Technology, LLC

 

Information Technology Services

               

Subordinated Debt (k)

      11.00%/0.00%   12/23/2016   6/23/2023     10,000       9,980       10,000    

Common Equity (6 shares)

        12/23/2016         646       942    
             

 

 

   

 

 

   
                10,626       10,942       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     12,889       12,782       12,889    

Common Equity (596 units) (j)

        5/8/2019         596       647    
             

 

 

   

 

 

   
                13,378       13,536       3

SpendMend LLC

 

Business Services

               

Common Equity (1,000,000 units)

        1/8/2018         972       1,915       0
                 

TransGo, LLC

 

Component Manufacturing

               

Common Equity (500 units) (j)

        2/28/2017         474       996       0
                 

The Tranzonic Companies

 

Specialty Distribution

               

Subordinated Debt (j)

      10.00%/1.00%   3/27/2018   3/27/2025     7,001       6,959       7,001    

Preferred Equity (5,653 units) (j)

        3/27/2018         565       730    

Common Equity (1 units) (j)

        3/27/2018         —         683    
             

 

 

   

 

 

   
                7,524       8,414       2

UBEO, LLC

 

Business Services

               

Subordinated Debt (j)

      11.00%/0.00%   4/3/2018   10/3/2024     13,893       13,814       13,893    

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

        4/3/2018         668       661    
             

 

 

   

 

 

   
                14,482       14,554       3

United Biologics, LLC

 

Healthcare Services

               

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

        4/1/2012         1,008       —      

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

        3/5/2012         566       —      
             

 

 

   

 

 

   
                1,574       —         0

Virginia Tile Company, LLC

 

Specialty Distribution

               

Second Lien Debt (j)

      12.25%/0.00%   12/19/2014   4/7/2022     12,000       11,998       12,000    

Common Equity (17 units) (j)

        12/19/2014         342       521