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Alcentra Capital Corporation
Alcentra Capital Corp. Fiscal 3Q 2017 Investor Presentation November 2017 NASDAQ: ABDC
1
Alcentra Capital Corporation
Forward-Looking Statements This presentation has been prepared for informational purposes only from information supplied by Alcentra Capital Corporation (“ABDC” or the “Company”) and from third-party sources indicated herein. Such third-party information has not been independently verified. The Company makes no representation or warranty, expressed or implied, as to the accuracy or completeness of such information. This presentation contains forward-looking statements which are based on current expectations and assumptions about future events. Forward-looking statements describe future financial or business performance, strategies, or expectations, and are generally identified by words or phrases such as “trend,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “plan,” “potential,” “project,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future of conditional verbs such as “will,” “would,” “could,” “should,” “may,” or similar expressions. You are cautioned that such statements are subject to a multitude of risks and uncertainties. Actual results could differ materially from those expressed or implied in the forward-looking statements, and future results could differ materially from historical performance. These forward-looking statements are subject to risks that include, but are not limited to, the following:
― Future operating results, including the performance of our existing loans and warrants; ― Business prospects and the prospects of our portfolio companies; ― The affect of investments that we expect to make; ― Contractual arrangements and relationships with third parties; ― Actual and potential conflicts of interest with our investment adviser, Alcentra NY, LLC (the “Adviser”); ― The dependence of our future success on the general economy and its effect on the industries in which we invest; ― The ability of our portfolio companies to achieve their objectives; ― The use of borrowed money to finance a portion of our investments; ― The adequacy of our financing sources and working capital; ― The timing of cash flows, if any, from the operations of our portfolio companies; ― The ability of our investment adviser (“the Adviser”) to locate suitable investments for us and to monitor and administer our investments; ― The ability of the Adviser to attract and retain highly talented professionals; ― The ability to qualify and maintain our qualification as a regulated investment company and a business development company; and ― Other risks and uncertainties described in our SEC filings.
You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward looking statements speak only as of the date they are made, and we undertake no obligation to update such statements. This presentation supplements, and should be read in conjunction with the Company’s earnings release and Form 10-Q for the quarter ended September 30, 2017
2
Alcentra Capital Corporation
3rd quarter Net Investment Income of $4.8 million, or $0.34 per share, based on the weighted average shares outstanding during the quarter.
The Adviser waived $1.2 million of the management fee to satisfy the dividend.
Net Asset Value (“NAV”) of $12.27 per share as of September 30, 2017. Invested $28.1 million of capital into new and existing companies. Declared regular dividend on August 3, 2017 of $0.34 per share to shareholders of record on September 30, 2017 and paid October 5, 2017. The Board of Directors declared a dividend on November 2, 2017 of $0.25 per share to
shareholders of record December 29, 2017 and payable January 4, 2018. The Board of Directors approved a $2.5 million open market stock repurchase program on
November 2, 2017. Of the 30 portfolio companies, there were six write-ups and nine write-downs this quarter
resulting in a net write-down of $11.7 million.
Third Quarter 2017 Highlights:
3
Alcentra Capital Corporation
Invested in a new portfolio company ($23.2mm of capital invested) Carlton Group (CGGR Operations Holdings Corporation)
Carlton Group provides turnkey solutions addressing employee incentives/rewards program administration, reward fulfillment , and logistics.
Invested $9.8 million in 8.0% 1st lien – tranche A notes and $13.4 million in 12.5% 1st lien – tranche B notes
Incremental investments ($4.9mm of capital invested) Lugano Diamonds & Jewelry, Inc.
Additional debt funding of $2.0 million for expansion purposes My Alarm Center, LLC
Additional equity funding of $1.9 million as of prior the restructuring Black Diamond Rentals
Additional debt funding of $1.0 million for working capital purposes.
Realizations ($3.9mm of capital returned) NWN Corporation
Company repaid $3.9 million of Senior Secured debt resulting in an MOIC 1.17x
Third Quarter 2017 Portfolio Activity
4
Alcentra Capital Corporation
38% 31%
37% 44% 43%
48%
0%
31% 29%
23% 20% 19%
33%
27% 26% 28% 28% 24%
29%
11% 9% 8% 9% 9%
As ofIPO
As of3Q16
As of4Q16
As of1Q17
As of2Q17
As of3Q17
Equity
SubordinatedDebt2nd Lien Debt
1st Lien Debt
Portfolio is shifting towards senior secured/unitranche debt
We will remain an active player in the junior capital and equity co-investment markets.
Portfolio Characteristics
5
$ million Q4 2016 Q1 2017 Q2 2017 Q3 2017
Portfolio Fair Value
$276.3
$283.3
$271.4
$282.3
Weighted Average Debt Portfolio Yield
11.7%
11.7%
11.6%
11.5%
Weighted Average Leverage1
3.93x
3.65x
3.68x
3.59x
1 Weighted average leverage figures exclude My Alarm, Black Diamond, XGS, and does not include equity investments.
12.2%
11.8% 11.7% 11.7%
11.6% 11.5%
WA Yield
Alcentra Capital Corporation
Portfolio Risk Snapshot
6
16 7
2 2
3
Risk Rating Number Companies
68%
19%
6% 6% 1%
Risk Rating Fair Market Value
1 The investment has an acceptable level of risk and the company is generally performing with risk factors being neutral to favorable. All investments in new investments and certain restructured investments are initially assessed a grade of 1.
2 The investment is performing with risk factors being neutral to slightly unfavorable since the time of underwriting.
3 The investment is performing below expectations. With respect to debt investments, the company is generally out of compliance with certain covenants, current or future interest payments could be impacted. With respect to equity investments, dividend payments or return of capital could be impacted.
4 The investment is performing materially below expectations. With respect to debt investments, debt covenants are out of compliance and interest payments are, or expected to be, delinquent and the principal amount of the debt investment is not expected to be repaid in full. With respect to equity investments, dividend payments are not expected to be paid and the principal amount of the equity investment is not expected to be returned.
5 The investment is performing substantially below expectations. With respect to debt investments, interest payments are not being made and the investment is on non-accrual. With respect to equity investments, dividend payments are not being paid or accrued and principal amount of the equity investment is not expected to be returned.
Note: Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.
Alcentra Capital Corporation
Above and below $10 million of EBITDA.
Portfolio Characteristics
7
Fixed vs floating rates.
15 54%
13 46%
Number of Companies
$108,185 42%
$148,688 58%
Fair Market Value
Fixed
Floating
Note: The above charts only include debt securities.
18 60%
12 40%
Number of Companies
$154,463 55%
$127,876 45%
Fair Market Value
Below $10mm
Above $10mm
Alcentra Capital Corporation
Adjusted Net Investment Income1 & Dividends Paid Per Share2
(1) Adjusted net investment income, which is a non-GAAP measure, represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. (2) Per share data is based on shares outstanding at the end of each period. (3) A portion of the Management Fee was waived to pay the dividend. (4) Special dividend of $0.03 declared from spill over income.
8
0.34 0.37 0.38
0.35 0.34
0.41 0.44
0.35
0.45
0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.34 0.37
0.34 0.34
$-
$0.05
$0.10
$0.15
$0.20
$0.25
$0.30
$0.35
$0.40
$0.45
$0.50
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Adjusted Net Investment Income/Share Dividends
4 3 3 3 3
Management Fee Waiver by Adviser
Alcentra Capital Corporation
Net Asset Value Per Share and Dividends Paid
(1) Includes special dividend of $0.03.
9
14.87 14.90 15.03 14.92 14.43 14.41 14.16 13.69 13.72 13.43 12.73 12.27
0.86 1.20 1.54 1.88 2.22 2.56 2.90 3.24 3.58 3.95 4.29 4.63
15.73 16.10 16.57 16.80 16.65 16.97 17.06 16.93 17.30 17.38 17.02 16.90
$-
$2.00
$4.00
$6.00
$8.00
$10.00
$12.00
$14.00
$16.00
$18.00
$20.00
Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Net Asset Value per Share Cumulative Dividend Per Share Since Inception (May 2014)
1
Alcentra Capital Corporation
Portfolio Size:
10
21
24
28 28 29 29
32 31
33 35
32 31
30 30
0
5
10
15
20
25
30
35
40
$-
$50.0
$100.0
$150.0
$200.0
$250.0
$300.0
$350.0
Q2 2014 Q3 2014 Q4 2014 Q1 2015 Q2 2015 Q3 2015 Q4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017
Num
ber o
f Por
tfol
io C
ompa
nies
$ M
illio
ns
Cost Fair Market Value # of Portfolio Companies
Alcentra Capital Corporation
25 portfolio investments realized since IPO – Gross Unlevered Returns
Realizations Since Inception
Table excludes secondary sale of equity
(1) See disclosures at end of presentation 11
Company Security/
Type Proceeds ($000) Date Gross
IRR
(1) Gross MOIC
(1)
GTT Communications Debt 6,324 8/6/2014 47.50% 1.10x
Wholesome Sweeteners Debt 8,846 9/2/2014 19.78% 1.06x
Acis Offshore Warrants 953 12/23/2014 34.30% 1.20x
American Addiction Centers Debt 8,248 2/25/2015 19.13% 1.14x
Choice Cable Debt 7,575 6/3/2015 12.95% 1.12x
WellBiz Brands Debt 7,830 6/16/2015 15.34% 1.16x
Datascan Debt 3,050 8/5/2015 12.67% 1.15x
NARL Marketing Debt 15,337 8/6/2015 16.87% 1.10x
Net Access Corporation Debt & Equity 14,684 11/19/2015 19.98% 1.23x
HealthFusion Debt & Warrants 8,038 1/4/2016 30.86% 1.51x
DRC Debt & Equity 1,695 1/19/2016 -56.09% 0.55x
Response Team 1 Debt & Equity 10,368 3/21/2016 1.58% 1.03x
Dentistry for Children Debt 14,880 3/28/2016 14.19% 1.26x
ACT Lighting Debt & Warrants 13,804 4/4/2016 31.04% 1.49x
Radiant Logistics Debt 10,300 4/22/2016 17.58% 1.17x
City Carting Preferred Equity 12,504 5/27/2016 8.87% 1.18x
DBI Debt & Warrants 27,340 7/31/2016 39.13% 2.02x
Aphena Pharma Solutions Debt 1,100 10/28/2016 11.65% 1.24x
Bioventus Debt 12,000 11/15/2016 13.73% 1.27x
Triton Technologies, Inc. Debt 1,200 12/12/2016 12.53% 1.24x
Limbach Debt 15,340 12/21/2016 64.53% 1.23x
Vectra (Duke Finance) Debt 7,500 2/21/2017 37.20% 1.25x
Alpine Waste Debt 11,000 2/24/2017 12.74% 1.25x
A2Z Debt 14,451 5/1/2017 19.18% 1.15x
NWN Debt 3,896 7/3/2017 12.89% 1.17x Total: 238,263
Alcentra Capital Corporation
As of September 30, 2017, portfolio consisted of 30 companies representing 19 industry sectors
Industry and Geographic Concentration
12
16%
12%
11%
9% 8%
6%
5%
5%
4%
4%
4%
3%
3% 2%
2% 2% 1% 1% 1%
Healthcare Services
Business Services
Industrial Services
High Tech Industries
Technology & Telecom
Telecommunications
Security
Retail
Automotive
Oil & Gas Services
Media: Advertising, Printing & Publishing
Industrial Manufacturing
Environmental Services
Education
Transportation and Logistics
Wholesale
Aerospace
Waste Services
Media & Entertainment
Canada: 8%
West: 18%
South: 14%
Southeast: 29%
Midwest: 12% Northeast: 19%
Alcentra Capital Corporation
11.9
17.2
12.5
26.0
34.8 34.2
28.7
8.05.3
11.414.3
10.113.4
15.0
9.7 9.4 9.6
$0B
$10B
$20B
$30B
$40B
$50B
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
Institutional Pro Rata
3.6 3.8 3.94.1 4.3 4.4
4.84.3
3.43.7
4.2 4.2
4.8 5.0 4.9 5.1 5.4 5.5
0x
2x
4x
6x
8x
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
1Q-3Q
173Q
17
FLD/EBITDA SLD/EBITDA Other Sr Debt/EBITDA Sub Debt/EBITDA
Debt Multiples of Middle-Market Loans (Issuers with EBITDA of $50 Million or Less)
Middle-Market Volume by Year (Issuers with EBITDA of $50 Million or Less)
Since IPO • Leverage Up • Yield Compression continues • Senior Lenders have become more aggressive • Sub debt virtually non-existent
Yield Compression Since IPO
Market Snapshot
9.7%
Source: Cliffwater Source: S&P Leverage Lending Report – 3Q17
Source: S&P Leverage Lending Report – 3Q17
Alcentra Capital Corporation
Appendix
14
Alcentra Capital Corporation
Notes: Information on this page summarizes the financial statements of Alcentra Capital Corporation contained in the Quarterly Reports (10-Q) and the Annual Report (10-K). All quarterly and annual reports are filed with the SEC and can be accessed on the SEC website, www.sec.gov.
15
As of September 30,
2015
As of December 31,
2015
As of March 31,
2016
As of June 30, 2016
As of September 30,
2016
As of December 31,
2016
As of March 31,
2017
As of June 30, 2017
As of September 30,
2017 Portfolio investments, at fair value
Non-controlled / non-affiliated investments
194,281,248
221,349,073
205,364,448
228,320,326
269,067,466
239,722,117
246,605,747
235,723,168
246,751,971
Non-controlled / affiliated investments
67,237,740
59,243,999
62,734,755
50,927,904
23,066,462
22,094,203
21,952,856
20,377,820
20,143,071
Controlled / affiliated investments
27,417,562
15,748,539
14,291,727
14,390,754
13,814,627
14,456,630
14,770,075
15,269,000
15,443,922
Total Portfolio Investments
288,936,550
296,341,611
282,390,930
293,638,984
305,948,555
276,272,950
283,328,678
271,369,988
282,338,964
Cash
11,472,602
4,866,972
3,831,847
5,038,752
6,708,245
3,891,606
4,719,733
3,802,620
4,925,485
Other Assets
5,593,200
6,287,224
6,031,457
5,860,596
10,608,526
8,033,491
5,843,705
4,892,344
11,848,448
Total Assets
306,002,352
307,495,807
292,254,234
304,538,332
323,265,326
288,198,047
293,892,116
280,064,952
299,112,897
Credit facility payable
52,654,738
63,504,738
42,709,057
51,685,846
70,872,238
39,133,273
46,933,273
35,133,273
59,783,273 Notes payable (net of deferred offering costs)
40,000,000
40,000,000
44,120,163
50,130,063
53,451,176
53,504,938
53,600,991
53,563,720
53,667,447
Other Liabilities
11,613,942
8,958,858
10,856,828
11,634,887
14,283,719
11,035,245
12,939,409
10,092,355
10,841,431
Total Liabilities
104,268,680
112,463,596
97,686,048
113,450,796
138,607,133
103,673,456
113,473,673
98,789,348
124,292,151
Net Assets
201,733,672
195,032,211
194,568,186
191,087,536
184,658,193
184,524,591
180,418,443
181,275,604
174,820,746
Shares Outstanding
13,516,766
13,516,766
13,506,257
13,490,636
13,490,636
13,451,633
13,437,059
14,245,220
14,245,220
NAV per Share
14.92
14.43
14.41
14.16
13.69
13.72
13.43
12.73
12.27
Alcentra Capital Corporation
Notes: Information on this page summarizes the financial statements of Alcentra Capital Corporation contained in the Quarterly Reports (10-Q) and the Annual Report (10-K). All quarterly and annual reports are filed with the SEC and can be accessed on the SEC website, www.sec.gov. (1) On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses.
16
Quarter ended September 30, 2015
Quarter ended December 31, 2015
Quarter ended March 31, 2016
Quarter ended June 30, 2016
Quarter ended September 30, 2016
Quarter ended December 31, 2016
Quarter ended March 31, 2017
Quarter ended June 30, 2017
Quarter ended September 30, 2017
Total Investment Income 8,507,142
8,676,914
9,946,391
10,639,969
9,116,468
10,899,771
9,201,448
8,338,109
7,610,521
Management Fee 1,273,705
1,302,213
1,289,036
1,283,763
1,335,294
1,301,591
1,249,569
1,229,648
1,230,961
Incentive Fee - Ordinary Income 546,027
521,295
790,727
926,158
607,739
930,543
653,911
-
(15,667)
Incentive Fee - Capital Gains (434,217) -
-
-
-
-
-
-
-
Incentive Fee 111,810 521,295
790,727 926,158
607,739 930,543
653,911 -
(15,667)
Other Expenses 1,979,583
2,323,804
2,261,736
2,531,702
2,386,642
2,548,482
2,705,352
2,434,611
2,712,748
Total Expenses 3,365,098
4,147,312
4,341,499
4,741,623
4,329,675
4,780,616
4,608,832
3,664,259
3,928,042
Management Fee Waiver -
-
-
-
-
-
-
(169,524)
(1,160,896)
Incentive Fee Waiver -
-
-
-
-
-
-
-
-
Waiver of management and incentive fees
-
-
-
-
-
-
-
(169,524)
(1,160,896)
Net Expenses 3,365,098
4,147,312
4,341,499
4,741,623
4,329,675
4,780,616
4,608,832
3,494,735
2,767,146
Net Investment Income 5,142,044
4,529,602
5,604,892
5,898,346
4,786,793
6,119,155
4,592,616
4,843,374
4,843,375
NII per share 0.38
0.34
0.41
0.44
0.35
0.45
0.34
0.36
0.34
Capital Gains Incentive Fee (Reversal) Expense
(434,217)
-
-
-
-
-
-
-
Adjusted Net Investment Income1 4,707,827
4,529,602
5,604,892
5,898,346
4,786,793
6,119,155
4,592,616
4,843,374
4,843,375
Adjusted NII per share1 0.35
0.34
0.41
0.44
0.35
0.45
0.34
0.36
0.34
Alcentra Capital Corporation
Portfolio Investments as of September 30, 2017
($ in thousands) Notes: Total Unrealized Investments in Alcentra Capital Corporation (ABDC) as of September 30, 2017.
17
Portfolio Company Industry Security Type Maturity Fixed/ Floating Coupon Structure Cost Basis Market Value Country Battery Solutions Environmental Services Class E units 11/6/2021 Fixed 8.0% PIK 4,055 4,055 USA Battery Solutions Environmental Services Class A & F units - - 1,058 1,277 Battery Solutions Environmental Services Senior Subordinated Notes 11/6/2021 Fixed 6.0% Cash / 8.0% PIK 2,356 2,356 Black Diamond Oil & Gas Services Senior Secured 7/9/2018 Fixed 12.0% Cash / 2.0% PIK 5,938 4,833 USA Black Diamond Oil & Gas Services Senior Subordinated Notes 7/9/2018 Fixed 4.0% Cash 8,009 3,649 Black Diamond Oil & Gas Services Senior Secured Tranche C 7/9/2018 Fixed 4.0% Cash / 10.0% PIK 2,681 2,735 Carlton Group Business Services Tranche A 9/30/2022 Floating L + 7.0% (100bps floor) 9,671 9,768 Canada Carlton Group Business Services Tranche B 10/2/2023 Floating L + 11.5% (100bps floor) 13,297 13,432 Champion ONE Technology & Telecom Common Equity - - 1,125 1,125 USA Champion ONE Technology & Telecom Senior Secured 3/17/2022 Floating L + 10.5% (100bps floor) 7,154 7,219 Conisus Media: Advertising, Printing & Publishing 2nd Lien Debt 6/23/2021 Floating L + 8.75% (100bps floor) 11,750 9,988 USA FST Technical Services Technology & Telecom Senior Secured 11/18/2018 Fixed 12.0% Cash/ 5.0% PIK 13,827 13,827 USA FST Technical Services Technology & Telecom Equity - - 1,807 1,617 Graco Supply Aerospace 2nd Lien Debt 3/17/2021 Fixed 12.0% Cash 4,000 4,000 USA GST AutoLeather Automotive Senior Subordinated Notes 1/11/2021 Fixed 11.0% Cash / 2.0% PIK 8,496 0 USA HCAT Healthcare Services 2nd Lien Debt 4/30/2022 Fixed 12.25% Cash 8,500 8,500 USA IGT Industrial Services Preferred Equity 12/10/2019 Fixed 11% PIK 1,111 896 USA IGT Industrial Services Common Equity - - 44 - IGT Industrial Services Class AA preferred 12/10/2019 Fixed 15% PIK 327 327 IGT Industrial Services Unitranche Debt 12/10/2019 Floating L+ 8.5% (100bps floor) / 0.5% PIK 7,762 7,807
LRI Industrial Services Preferred Equity - - - 1,000 2,168 USA LRI Industrial Services Preferred Equity - - - 100 172 LRI Industrial Services 1st Lien Debt 6/30/2022 Floating L + 9.25% (100bps floor) 19,679 19,750 Lugano Retail Warrant - - - 667 1,000 USA Lugano Retail Senior Secured Term Note 10/24/2021 Floating L + 10.0% (75bps floor) 7,316 7,452 Media Storm Media & Entertainment Senior Subordinated Notes 8/28/2019 Fixed 10% Cash 2,455 1,516 USA
Alcentra Capital Corporation
Portfolio Investments as of September 30, 2017
($ in thousands) Notes: Total Unrealized Investments in Alcentra Capital Corporation (ABDC) as of September 30, 2017.
18
Portfolio Company Industry Security Type Maturity Fixed/ Floating Coupon Structure Cost Basis Market Value Country Medsurant Healthcare Services 2nd Lien Debt 6/18/2021 Fixed 12.25% Cash 6,138 6,200 USA Metal Powder Products Industrial Manufacturing Senior Subordinated Notes 11/5/2021 Floating L + 11.25% (75bps floor) / 1.0%
PIK 8,313 8,313 USA
Metal Powder Products Industrial Manufacturing Common Equity - - 500 704 My Alarm Center Security Preferred Equity - - - 5,472 4,259 USA Nation Safe Drivers Automotive 2nd Lien Debt 9/29/2020 Floating L + 8.0% (200bps floor) 11,721 11,721 USA NextCare Healthcare Services Senior Subordinated Notes 12/31/2018 Fixed 10.0% Cash / 4.0% PIK 15,377 15,673 USA NTI Telecommunications Unitranche Debt 3/30/2021 Floating L + 8.0% (100bps floor) 14,853 15,030 USA NTI Telecommunications Warrant - - 225 1,411 NTI Telecommunications Preferred Equity - - 547 1,542 Palmetto Moon Retail Common Equity - - 434 330 USA Palmetto Moon Retail 1st Lien Debt 10/31/2021 Fixed 11.5% Cash 5,373 5,395 Pharmalogic Healthcare Services Subordinated Debt 9/1/2021 Fixed 12.0% Cash 16,093 16,122 USA PharmaLogic Recruiting Business Services Senior Secured Notes 1/31/2022 Fixed 10.25% Cash 9,864 9,950 USA QRC High Tech Industries Subordinated Debt 11/19/2021 Fixed 12.25% Cash 10,000 10,000 USA Safe Security Security Subordinated Debt 6/19/2020 Floating L + 13.0% (100bps floor) 9,848 10,011 USA Show Media Media & Entertainment Senior Secured 12/31/2018 Fixed 5.5% Cash / 5.5% PIK 4,153 0 USA Show Media Media & Entertainment Series A Preferred - 3,747 - Southern Technical Education 2nd Lien Debt 12/2/2020 Floating L + 9.0% (100bps floor) / 3.0% PIK 8,385 7,061 USA Southern Technical Education Class SP-1 Units 3/30/2026 Fixed 15.75% PIK 5,024 - Southern Technical Education Class A Units - - 2,167 - Southern Technical Education Penny Warrants - - 221 - Stancor Wholesale Unitranche Debt 8/19/2019 Floating L + 8.5% (75bps floor) 4,346 4,346 USA Superior Controls High Tech Industries Senior Secured Notes 3/22/2021 Floating L + 8.75% (100bps floor) 14,773 14,825 USA Superior Controls High Tech Industries Preferred Equity - - 400 754 Tunnel Hill Waste Services Common Units - - 2,529 3,829 XGS Transportation and Logistics 2nd Lien Debt 4/10/2020 Fixed 5.0% PIK 5,341 3,429 USA XGS Transportation and Logistics Warrant - - 489 - XGS Transportation and Logistics 2nd Lien Debt 4/10/2020 Floating L + 11.0% (100bps floor) 1,929 1,965
Alcentra Capital Corporation
BNY Alcentra Group Holdings Inc. is an affiliate of BNY Mellon. BNY Alcentra Group Holdings Inc. is comprised of the following affiliated companies: Alcentra Ltd. and Alcentra NY, LLC. Assets under management include assets managed by both companies. Alcentra NY, LLC and Alcentra Ltd. are registered with the U.S. Securities & Exchange Commission under the Investment Advisers Act of 1940. BNY Mellon Asset Management is one of the world’s leading asset management organizations, encompassing BNY Mellon’s affiliated investment management firms and global distribution companies. BNY Mellon is the corporate brand for The Bank of New York Mellon Corporation. An investor should consider the portfolio strategy’s investment objectives, risks, charges and expenses carefully before investing. Portfolios are subject to investment risks, including possible loss of the principal amount invested. Material in this publication is for general information only and is not intended to provide specific investment advice or recommendations for any purchase or sale of any specific security or commodity. Certain information contained herein is based on outside sources believed to be reliable, but its accuracy is not guaranteed. Investments in sub-investment grade debt are speculative and involve special risks, and there can be no assurance that an account’s investment objectives will be realized or that suitable investments may be identified. Many factors affect performance including changes in market conditions and interest rates and in response to other economic, political, or financial developments. An investor could lose all or a substantial portion of his or her investment. No investment process is free of risk and there is no guarantee that the investment process described herein will be profitable. No investment strategy or risk management technique can guarantee returns or eliminate risk in any market environment. The enclosed material is confidential and not to be reproduced or redistributed in whole or in part without the prior written consent of Alcentra. Any statements of opinion constitute only current opinions of Alcentra, which are subject to change and which Alcentra does not undertake to update. Nothing herein constitutes an offer to sell, or solicitation of an offer to purchase, any securities, nor does it constitute an endorsement with respect to any investment strategy or vehicle. The information is not intended and should not be construed as legal, accounting or tax advice. Parties should independently investigate any investment strategy or manager, and should consult with qualified investment, legal, accounting and tax professionals before making any investment. All opinions and estimates in this report constitute the best judgment of Alcentra as of the date hereof, but are subject to change without notice, and do not necessarily represent the views of Alcentra. Gross IRR represents an effective annualized rate of return calculated using realized and unrealized results as of September 30, 2017. The Gross IRR is calculated using the cash proceeds received from their underlying investments, and the Unrealized Value of each fund as of September 30, 2017. MOIC or Multiple on Invested Capital = Realized Proceeds plus Unrealized Value appreciation divided by Total Investment.
Disclosures
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