herc20190415_n2.htm

 

Table of Contents

As filed with the Securities and Exchange Commission on April 29, 2019

Securities Act File No. 333-          



U.S. SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549


FORM N-2

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

(Check appropriate box or boxes)


Pre-Effective Amendment No.

Post-Effective Amendment No.

 

Hercules Capital, Inc.

(formerly known as Hercules Technology Growth Capital, Inc.)

(Exact name of Registrant as specified in charter)


400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

(Address of Principal Executive Offices)

Registrant’s Telephone Number, including Area Code: (650) 289-3060

Scott Bluestein 

Interim Chief Executive Officer

Hercules Capital, Inc.

400 Hamilton Avenue, Suite 310

Palo Alto, CA 94301

(Name and address of agent for service)


COPIES TO:

William Bielefeld

Ian Hartman

Jay Alicandri

Dechert LLP

1095 Avenue of the Americas

New York, NY 10036

APPROXIMATE DATE OF PROPOSED PUBLIC OFFERING:

From time to time after the effective date of this Registration Statement.


If any securities being registered on this form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933, other than securities offered in connection with a dividend reinvestment plan, check the following box.  ☒

 

It is proposed that this filing will become effective (check appropriate box):  ☐  when declared effective pursuant to section 8(c).


CALCULATION OF REGISTRATION FEE UNDER THE SECURITIES ACT OF 1933

 

Title of Securities Being Registered

Amount Being
Registered

Proposed Maximum
Aggregate Offering
Price(1)

Amount of

Registration
Fee(1)

Common Stock, $0.001 par value per share(2)

 

 

 

Preferred Stock, $0.001 par value per share(2)

 

 

 

Warrants(2)

 

 

 

Subscription Rights(3)

 

 

 

Debt Securities(4)

 

 

 

TOTAL(5)

 

$850,000,000

$103,020(6)

(1)

Estimated pursuant to Rule 457(o) solely for the purposes of determining the registration fee. The proposed maximum offering price per security will be determined, from time to time, by the Registrant in connection with the sale by the Registrant of the securities registered under this registration statement.

(2)

Subject to Note 5 below, there is being registered hereunder an indeterminate number of shares of common stock, preferred stock, or warrants as may be sold, from time to time. Warrants represent rights to purchase common stock, preferred stock or debt securities.

(3)

Subject to Note 5 below, there is being registered hereunder an indeterminate number of subscription rights as may be sold, from time to time, representing rights to purchase common stock.

(4)

Subject to Note 5 below, there is being registered hereunder an indeterminate principal amount of debt securities as may be sold, from time to time. If any debt securities are issued at an original issue discount, then the offering price shall be in such greater principal amount as shall result in an aggregate price to investors not to exceed $850,000,000.

(5)

In no event will the aggregate offering price of all securities issued from time to time pursuant to this registration statement exceed $850,000,000.

(6)

Prior to filing this registration statement, $581,452,153 of securities remained unsold pursuant to Registration Statement No. 333-224281, which was initially filed on April 13, 2018. Pursuant to Rule 457(p), $41,184.70 of the total filing fee of $103,020 required in connection with the registration of $850,000,000 aggregate principal amount of securities under this registration statement is being offset against the $41,184.70 filing fee associated with the unsold securities registered under the registration statement on Form N-2 (File No. 333-224281) (the “Prior Registration Statement”), and an additional $61,835.30 was paid in connection herewith. The shares from the Prior Registration Statement to which such fee relates are being carried forward pursuant to Rule 415(a)(6) under the Securities Act of 1933.

 



 

 

 

EXPLANATORY NOTE

 

We have filed this registration statement using the “shelf” registration process as a “well-known seasoned issuer” in reliance on the Small Business Credit Availability Act, or the SBCAA. In accordance with Section 3(c) of the SBCAA, we have treated the amendments promulgated in the SBCAA as having been completed in accordance with the actions required to be taken by the Securities and Exchange Commission, or the SEC. Furthermore, we are a “well-known seasoned issuer,” as defined in Rule 405 under the Securities Act of 1933, as amended, or the Securities Act. As such, pursuant to the SBCAA, this registration statement shall become effective upon filing with the SEC pursuant to rule 462(e) under the Securities Act. In addition, certain items required by Form N-2 have been incorporated by reference into the prospectus through documents filed pursuant to Section 13(a), 13(c), 14 or 15(d) of the Exchange Act that are incorporated or deemed incorporated by reference into the prospectus that is part of this registration statement.

 

 

 

PROSPECTUS

 

$850,000,000

 

 

 

Common Stock

Preferred Stock

Warrants

Subscription Rights

Debt Securities

 

This prospectus relates to the offer, from time to time, in one or more offerings or series, up to $850,000,000 of shares of our common stock, par value $0.001 per share, preferred stock, par value $0.001 per share, warrants representing rights to purchase shares of our common stock, preferred stock or debt securities, subscription rights or debt securities, which we refer to, collectively, as the “securities.” The preferred stock, debt securities, subscription rights and warrants offered hereby may be convertible or exchangeable into shares of our common stock. We may sell our securities through underwriters or dealers, “at-the-market” to or through a market maker into an existing trading market or otherwise directly to one or more purchasers, including existing stockholders in a rights offering, or through agents or through a combination of methods of sale, including auctions. The identities of such underwriters, dealers, market makers or agents, as the case may be, will be described in one or more supplements to this prospectus. The securities may be offered at prices and on terms to be described in one or more supplements to this prospectus.

 

In the event we offer common stock, the offering price per share will not be less than the net asset value per share of our common stock at the time we make the offering except (1) in connection with a rights offering to our existing stockholders, (2) with the consent of the holders of the majority of our voting securities and approval of our Board of Directors, or (3) under such circumstances as the Securities and Exchange Commission may permit. See “Risk Factors” for more information.

 

We are a specialty finance company focused on providing senior secured loans to high-growth, innovative venture capital-backed companies in a variety of technology, life sciences and sustainable and renewable technology industries. We primarily finance privately-held companies backed by leading venture capital and private equity firms and publicly-traded companies that lack access to public capital or are sensitive to equity ownership dilution. We source our investments through our principal office located in Palo Alto, CA, as well as through additional offices in Boston, MA, New York, NY, Washington, DC, Hartford, CT, Westport, CT, Chicago, IL, and San Diego, CA. Our goal is to be the leading structured debt financing provider for venture capital-backed companies in technology-related industries requiring sophisticated and customized financing solutions. We invest primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. We use the term “structured debt with warrants” to refer to any debt investment, such as a senior or subordinated secured loan, that is coupled with an equity component, including warrants, options or other rights to purchase common or preferred stock. Our structured debt with warrants investments typically are secured by some or all of the assets of the portfolio company. We invest primarily in private companies but also have investments in public companies.

 

Our investment objective is to maximize our portfolio total return by generating current income from our debt investments and capital appreciation from our warrant and equity-related investments. We are an internally-managed, non-diversified closed-end investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended.

 

Our common stock is traded on the New York Stock Exchange, or NYSE, under the symbol “HTGC.” On April 23, 2019, the last reported sale price of a share of our common stock on the NYSE, was $12.83. The net asset value per share of our common stock at December 31, 2018 (the last date prior to the date of this prospectus on which we determined net asset value) was $9.90.

 


 

An investment in our securities may be speculative and involves risks including a heightened risk of total loss of investment. In addition, the companies in which we invest are subject to special risks. See “Risk Factors” on page 8 of this prospectus, in our most recent Annual Report on Form 10-K, in any of our other filings with the Securities and Exchange Commission, and in any applicable prospectus supplement and in any free writing prospectus to read about risks that you should consider before investing in our securities, including the risk of leverage.

 

Please read this prospectus and any free writing prospectus before investing and keep it for future reference. It contains important information about us that a prospective investor ought to know before investing in our securities. We file annual, quarterly and current reports, proxy statements and other information about us with the Securities and Exchange Commission. The information is available free of charge by contacting us at 400 Hamilton Avenue, Suite 310, Palo Alto, California 94301 or by telephone calling collect at (650) 289-3060 or on our website at www.htgc.com. The Securities and Exchange Commission also maintains a website at www.sec.gov that contains such information.

 


 

Neither the Securities and Exchange Commission nor any state securities commission has approved or disapproved of these securities or determined if this prospectus is truthful or complete. Any representation to the contrary is a criminal offense.

 

This prospectus may not be used to consummate sales of any securities unless accompanied by a prospectus supplement.

 

The date of this prospectus is April 29, 2019

 

 

 

 

 

You should rely only on the information contained in this prospectus, any applicable prospectus supplement, any free writing prospectus, the documents incorporated by reference in this prospectus and any applicable prospectus supplement, or any other information which we have referred you. We have not authorized any dealer, salesperson or other person to provide you with different information or to make representations as to matters not stated in this prospectus or in any free writing prospectus. If anyone provides you with different or inconsistent information, you should not rely on it. This prospectus, any applicable prospectus supplement, and any free writing prospectus do not constitute an offer to sell, or a solicitation of an offer to buy, any securities by any person in any jurisdiction where it is unlawful for that person to make such an offer or solicitation or to any person in any jurisdiction to whom it is unlawful to make such an offer or solicitation. The information in this prospectus, any applicable prospectus supplement, and any free writing prospectus is accurate only as of its date, and under no circumstances should the delivery of this prospectus, any applicable prospectus supplement, or any free writing prospectus or the sale of any securities imply that the information in this prospectus, any applicable prospectus supplement, or any free writing prospectus is accurate as of any later date or that the affairs of Hercules Capital, Inc. have not changed since the date hereof. This prospectus will be updated to reflect material changes.

 


 

TABLE OF CONTENTS

 

 

Page

Hercules Capital, Inc.

6

Fees and Expenses

7

Risk Factors 8

Forward-Looking Statements

9

Use of Proceeds

10

Price Range of Common Stock and Distributions

11

Portfolio Companies

12

Senior Securities

29

Certain United States Federal Income Tax Considerations

32

Sales of Common Stock Below Net Asset Value

40

Dividend Reinvestment Plan

44

Description of Capital Stock

45

Description of Our Preferred Stock

50

Description of Our Subscription Rights

51

Description of Warrants

53

Description of Our Debt Securities

55

Plan of Distribution

66

Custodian, Transfer and Dividend Paying Agent and Registrar

67

Legal Matters

67

Experts

67

Incorporation By Reference

68

Available Information

68

 


 

Hercules Capital, Inc., our logo and other trademarks of Hercules Capital, Inc. mentioned in this prospectus are the property of Hercules Capital, Inc. All other trademarks or trade names referred to in this prospectus are the property of their respective owners.

 

 

 

 

ABOUT THIS PROSPECTUS

 

This prospectus is part of a registration statement that we have filed with the Securities and Exchange Commission using the “shelf” registration process as a “well-known seasoned issuer,” as defined in Rule 405 under the Securities Act of 1933, as amended, or the Securities Act. Under the shelf registration process, which constitutes a delayed offering in reliance on Rule 415 under the Securities Act, we may offer, from time to time, up to $850,000,000 of our common stock, preferred stock, warrants representing rights to purchase shares of our common stock, preferred stock or debt securities, subscription rights or debt securities on the terms to be determined at the time of the offering. We may sell our securities through underwriters or dealers, “at-the-market” to or through a market maker, into an existing trading market or otherwise directly to one or more purchasers, including existing stockholders in a rights offering, or through agents or through a combination of methods of sale. The identities of such underwriters, dealers, market makers or agents, as the case may be, will be described in one or more supplements to this prospectus. The securities may be offered at prices and on terms described in one or more supplements to this prospectus. This prospectus provides you with a general description of the securities that we may offer. Each time we use this prospectus to offer securities, we will provide a prospectus supplement that will contain specific information about the terms of that offering. Please carefully read this prospectus and any such supplements together with the additional information described under “Incorporation by Reference” and “Available Information” sections before you make an investment decision.

 

A prospectus supplement may also add to, update or change information contained in this prospectus.

 

In this prospectus, unless the context otherwise requires, the “Company,” “Hercules,” “HTGC,” “we,” “us” and “our” refer to Hercules Capital, Inc. and its wholly owned subsidiaries and its affiliated securitization trusts.

 

 

 

HERCULES CAPITAL, INC.

 

Business Overview

 

We are a specialty finance company focused on providing senior secured loans to high-growth, innovative venture capital-backed companies in a variety of technology, life sciences and sustainable and renewable technology industries. We source our investments through our principal office located in Palo Alto, CA, as well as through our additional offices in Boston, MA, New York, NY, Washington, DC, Hartford, CT, Westport, CT, Chicago, IL, and San Diego, CA.

 

Our goal is to be the leading structured debt financing provider for venture capital-backed companies in technology-related industries requiring sophisticated and customized financing solutions. Our strategy is to evaluate and invest in a broad range of technology-related industries including technology, drug discovery and development, biotechnology, life sciences, healthcare, and sustainable and renewable technology and to offer a full suite of growth capital products. We focus our investments in companies active in the technology industry sub-sectors characterized by products or services that require advanced technologies, including, but not limited to, computer software and hardware, networking systems, semiconductors, semiconductor capital equipment, information technology infrastructure or services, internet consumer and business services, telecommunications, telecommunications equipment, renewable or alternative energy, media and life sciences. Within the life sciences sub-sector, we generally focus on medical devices, bio-pharmaceutical, drug discovery, drug delivery, health care services and information systems companies. Within the sustainable and renewable technology sub-sector, we focus on sustainable and renewable energy technologies and energy efficiency and monitoring technologies. We refer to all of these companies as “technology-related” companies and intend, under normal circumstances, to invest at least 80% of the value of our total assets in such businesses.

 

We invest primarily in structured debt with warrants and, to a lesser extent, in senior debt and equity investments. We invest primarily in private companies but also have investments in public companies. We use the term “structured debt with warrants” to refer to any debt investment, such as a senior or subordinated secured loan, that is coupled with an equity component, including warrants, options or other rights to purchase common or preferred stock. Our structured debt with warrants investments typically are secured by some or all of the assets of the portfolio company. We also provide “unitranche” loans, which are loans that combine both senior and mezzanine debt, generally in a first lien position.

 

Our investment objective is to maximize our portfolio total return by generating current income from our debt investments and capital appreciation from our warrant and equity-related investments. Our primary business objectives are to increase our net income, net operating income and net asset value, or NAV, by investing in structured debt with warrants and equity of venture capital-backed companies in technology-related industries with attractive current yields and the potential for equity appreciation and realized gains. Our equity ownership in our portfolio companies may exceed 25% of the voting securities of such companies, which represents a controlling interest under the Investment Company Act of 1940, as amended, or the 1940 Act. In some cases, we receive the right to make additional equity investments in our portfolio companies in connection with future equity financing rounds. Capital that we provide directly to venture capital-backed companies in technology-related industries is generally used for growth and general working capital purposes as well as in select cases for acquisitions or recapitalizations.

 

Corporate Information

 

 

 

We are an internally-managed, non-diversified, closed-end investment company that has elected to be regulated as a business development company, or a BDC, under the 1940 Act. Effective January 1, 2006, we elected to be treated for tax purposes as a regulated investment company, or RIC, under the Internal Revenue Code of 1986, as amended, or the Code.

 

We are a Maryland corporation formed in December 2003 that began investment operations in September 2004. On February 25, 2016, we changed our name from “Hercules Technology Growth Capital, Inc.” to “Hercules Capital, Inc.”

 

Our principal executive offices are located at 400 Hamilton Avenue, Suite 310, Palo Alto, California 94301, and our telephone number is (650) 289-3060.

 

 

 

FEES AND EXPENSES

 

The following table is intended to assist you in understanding the various costs and expenses that an investor in our common stock will bear directly or indirectly. However, we caution you that some of the percentages indicated in the table below are estimates and may vary. The footnotes to the fee table state which items are estimates. Except where the context suggests otherwise, whenever this prospectus contains a reference to fees or expenses paid by “you” or “us” or that “we” will pay fees or expenses, stockholders will indirectly bear such fees or expenses as investors in Hercules Capital, Inc.

 

Stockholder Transaction Expenses (as a percentage of the public offering price):

       

Sales load (as a percentage of offering price)(1)

    %

Offering expenses

    %(2)

Dividend reinvestment plan fees

    %(3)

Total stockholder transaction expenses (as a percentage of the public offering price)

    %(4)

Annual Expenses (as a percentage of net assets attributable to common stock):(5)

       

Operating expenses

    5.67 %(6)(7)

Interest and fees paid in connection with borrowed funds

    5.06 %(8)

Total annual expenses

    10.73 %(9)

 


(1)

In the event that our securities are sold to or through underwriters, a corresponding prospectus supplement to this prospectus will disclose the applicable sales load.

(2)

In the event that we conduct an offering of our securities, a corresponding prospectus supplement to this prospectus will disclose the estimated offering expenses.

(3)

The expenses associated with the administration of our dividend reinvestment plan are included in “Operating expenses.” We pay all brokerage commissions incurred with respect to open market purchases, if any, made by the administrator under the plan. For more details about the plan, see “Dividend Reinvestment Plan.”

(4)

Total stockholder transaction expenses may include sales load and will be disclosed in a future prospectus supplement, if any.

(5)

“Net assets attributable to common stock” equals the weighted average net assets for the year ended December 31, 2018, which is approximately $923.1 million.

(6)

“Operating expenses” represents our actual operating expenses incurred for the year ended December 31, 2018, including all fees and expenses of our consolidated subsidiaries and excluding interests and fees on indebtedness.

(7)

We do not have an investment adviser and are internally managed by our executive officers under the supervision of our Board of Directors. As a result, we do not pay investment advisory fees, but instead we pay the operating costs associated with employing investment management professionals.

(8)

“Interest and fees paid in connection with borrowed funds” represents our estimated interest, fees and credit facility expenses by annualizing our actual interest, fees and credit facility expenses incurred for the year ended December 31, 2018, including our then $75.0 million revolving senior secured credit facility with Wells Fargo Capital Finance, LLC, or the Wells Facility, then $100.0 million revolving senior secured credit facility with MUFG Union Bank, N.A., or the Union Bank Facility, and, together with the Wells Facility, the Credit Facilities, 4.625% notes due 2022, or the 2022 Notes, 6.25% notes due 2024, or the 2024 Notes, 5.25% notes due 2025, or the 2025 Notes, 6.25% notes due 2033, or the 2033 Notes, 4.375% convertible notes due 2022, or the 2022 Convertible Notes, fixed rate asset-backed notes due 2021, or the 2021 Asset-Backed Notes, fixed rate asset-backed notes due 2027, or the 2027 Asset-Backed Notes, and the Small Business Administration, or SBA, debentures.

(9)

“Total annual expenses” is the sum of “operating expenses,” and “interest and fees paid in connection with borrowed funds.” “Total annual expenses” is presented as a percentage of weighted average net assets attributable to common stockholders because the holders of shares of our common stock (and not the holders of our debt securities or preferred stock, if any) bear all of our fees and expenses, including the fees and expenses of our wholly-owned consolidated subsidiaries, all of which are included in this fee table presentation.

 

 

Example

 

The following example demonstrates the projected dollar amount of total cumulative expenses that would be incurred over various periods with respect to a hypothetical investment in our common stock. These amounts are based upon our payment of annual operating expenses at the levels set forth in the table above and assume no additional leverage.

 

   

1 Year

   

3 Years

   

5 Years

   

10 Years

 

You would pay the following expenses on a $1,000 common stock investment, assuming a 5% annual return

  $ 130     $ 316     $ 482     $ 822  

 

The example and the expenses in the tables above should not be considered a representation of our future expenses, and actual expenses may be greater or lesser than those shown. Moreover, while the example assumes, as required by the applicable rules of the SEC, a 5% annual return, our performance will vary and may result in a return greater or lesser than 5%. In addition, while the example assumes reinvestment of all distributions at NAV, participants in our dividend reinvestment plan may receive shares valued at the market price in effect at that time. This price may be at, above or below NAV. See “Dividend Reinvestment Plan” for additional information regarding our dividend reinvestment plan.

 

7

 

 

RISK FACTORS

 

Investing in our securities may be speculative and involves a high degree of risk. You should carefully consider the risk factors incorporated by reference from our Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (File No. 814-00702) and any subsequent Quarterly Reports on Form 10-Q or Current Reports on Form 8-K we file after the date of this prospectus and before the termination of the offering of securities under this prospectus, and all other information contained or incorporated by reference into this prospectus and any free writing prospectus, as updated by our subsequent filings under the Securities Exchange Act of 1934, as amended, or the Exchange Act, and the risk factors and other information contained in any prospectus supplement and any free writing prospectus before acquiring any of such securities. Additional risks and uncertainties not presently known to us or not presently deemed material by us may also impair our operations and performance. Each of the risk factors could materially adversely affect our business, financial condition and results of operations. In such case, our NAV and the trading price of our securities could decline, and you may lose all or part of your investment.

 

8

 

FORWARD-LOOKING STATEMENTS

 

The matters discussed in this prospectus, including the documents that we incorporate by reference herein, and any applicable prospectus supplement or free writing prospectus, including the documents we incorporate by reference therein, as well as in future oral and written statements by management of Hercules Capital, Inc., that are forward-looking statements are based on current management expectations that involve substantial risks and uncertainties which could cause actual results to differ materially from the results expressed in, or implied by, these forward-looking statements. Forward-looking statements relate to future events or our future financial performance. We generally identify forward-looking statements by terminology such as “may,” “will,” “should,” “expects,” “plans,” “anticipates,” “could,” “intends,” “target,” “projects,” “contemplates,” “believes,” “estimates,” “predicts,” “potential” or “continue” or the negative of these terms or other similar expressions. Important assumptions include our ability to originate new investments, achieve certain margins and levels of profitability, the availability of additional capital, and the ability to maintain certain debt to asset ratios. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this prospectus should not be regarded as a representation by us that our plans or objectives will be achieved. The forward-looking statements contained in this prospectus and any applicable prospectus supplement or free writing prospectus include statements as to:

 

 

our current and future management structure;

 

 

our future operating results;

 

 

our business prospects and the prospects of our prospective portfolio companies;

 

 

the impact of investments that we expect to make;

 

 

our informal relationships with third parties including in the venture capital industry;

 

 

the expected market for venture capital investments and our addressable market;

 

 

the dependence of our future success on the general economy and its impact on the industries in which we invest;

 

 

our ability to access debt markets and equity markets;

 

 

the ability of our portfolio companies to achieve their objectives;

 

 

our expected financings and investments;

 

 

our regulatory structure and tax status;

 

 

our ability to operate as a BDC, a small business investment company, or SBIC, and a RIC;

 

 

the adequacy of our cash resources and working capital;

 

 

the timing of cash flows, if any, from the operations of our portfolio companies;

 

 

the timing, form and amount of any distributions;

 

 

the impact of fluctuations in interest rates on our business;

 

 

the valuation of any investments in portfolio companies, particularly those having no liquid trading market; and

 

 

our ability to recover unrealized losses.

 

You should not place undue reliance on these forward-looking statements. The forward-looking statements made in this prospectus, any free writing prospectus, and the documents incorporated by reference into this prospectus relate only to events as of the date on which the statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances occurring after the date of this prospectus.

 

9

 

USE OF PROCEEDS

 

We intend to use the net proceeds from selling our securities to fund investments in debt and equity securities in accordance with our investment objectives, to make acquisitions, to retire certain debt obligations and for other general corporate purposes. The supplement to this prospectus or any free writing prospectus relating to an offering will more fully identify the use of proceeds from such offering.

 

We anticipate that substantially all of the net proceeds from any offering of our securities will be used as described above within twelve months, but in no event longer than two years. Pending such uses and investments, we will invest the net proceeds primarily in cash, cash equivalents, U.S. government securities or high-quality debt securities maturing in one year or less from the time of investment. Our ability to achieve our investment objective may be limited to the extent that the net proceeds of any offering, pending full investment, are held in lower yielding short-term instruments.

 

10

 

 

PRICE RANGE OF COMMON STOCK AND DISTRIBUTIONS

 

Our common stock is traded on the NYSE under the symbol “HTGC.”

 

The following table sets forth the range of high and low sales prices of our common stock, the sales price as a percentage of NAV and the distributions declared by us for each fiscal quarter. The stock quotations are interdealer quotations and do not include markups, markdowns or commissions.

 

           

Price Range

   

Premium/
Discount of
High Sales

   

Premium/
Discount of
Low Sales

   

Cash
Distribution

 
   

NAV(1)

   

High

   

Low

    Price to NAV     Price to NAV     per Share  

2017

                                               

First quarter

  $ 9.76     $ 15.43     $ 14.12       58.1 %     44.7 %   $ 0.310  

Second quarter

  $ 9.87     $ 15.56     $ 12.66       57.6 %     28.3 %   $ 0.310  

Third quarter

  $ 10.00     $ 13.50     $ 12.04       35.0 %     20.4 %   $ 0.310  

Fourth quarter

  $ 9.96     $ 13.94     $ 12.44       39.9 %     24.9 %   $ 0.310  

2018

                                               

First quarter

  $ 9.72     $ 13.25     $ 11.89       36.3 %     22.3 %   $ 0.310  

Second quarter

  $ 10.22     $ 12.97     $ 11.99       26.9 %     17.3 %   $ 0.310  

Third quarter

  $ 10.38     $ 13.64     $ 12.71       31.4 %     22.4 %   $ 0.330 (2) 

Fourth quarter

  $ 9.90     $ 13.28     $ 10.63       34.1 %     7.4 %   $ 0.310  

2019

                                               

First quarter

    *     $ 14.04     $ 11.23       *       *       **  

Second quarter (through April 23, 2019)

    *     $ 12.83     $ 12.57       *       *       **  

 


(1)

NAV per share is generally determined as of the last day in the relevant quarter and therefore may not reflect the NAV per share on the date of the high and low sales prices. The NAVs shown are based on outstanding shares at the end of each period.

(2)

Includes a supplemental distribution of $0.02 per share.

*

NAV has not yet been calculated for this period.

**

Cash distribution per share has not yet been determined for this period.

 

The last reported price for our common stock on April 23, 2019 was $12.83 per share.

 

Shares of BDCs may trade at a market price that is less than the value of the net assets attributable to those shares. The possibility that our shares of common stock will trade at a discount from NAV or at premiums that are unsustainable over the long term are separate and distinct from the risk that our NAV will decrease. At times, our shares of common stock have traded at a premium to NAV and at times our shares of common stock have traded at a discount to the net assets attributable to those shares. It is not possible to predict whether the shares offered hereby will trade at, above, or below NAV.

 

11

 

PORTFOLIO COMPANIES

(dollars in thousands)

 

The following tables set forth certain information as of December 31, 2018 regarding each portfolio company in which we had a debt or equity investment. Other than these investments, our only formal relationship with our portfolio companies is the offer to make available significant managerial assistance. In addition, we may receive rights to observe the Board of Directors’ meetings of our portfolio companies. Amounts are presented in thousands.

 

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Maturity Date

 

Interest Rate and Floor(2)

 

Principal Amount

   

Cost(3)

   

Value(4)

 

Debt Investments

                                       

Biotechnology Tools

                                       

Under 1 Year Maturity

                                       

Exicure, Inc. (11)

8045 Lamon Avenue, Suite 410

Skokie, IL 60077

 

Biotechnology Tools

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 6.45% or Floor rate of 9.95%, 3.85% Exit Fee

  $ 4,999     $ 5,165     $ 5,165  

Subtotal: Under 1 Year Maturity

            5,165       5,165  

Subtotal: Biotechnology Tools (0.54%)*

            5,165       5,165  

Consumer & Business Products

                                       

1-5 Years Maturity

                                       

WHOOP, INC. (12)

1325 Boylston Street, Suite 401

Boston, MA 02251

 

Consumer & Business Products

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.75% or Floor rate of 8.50%, 6.95% Exit Fee

  $ 6,000       6,026       5,983  

Subtotal: 1-5 Years Maturity

            6,026       5,983  

Subtotal: Consumer & Business Products (0.63%)*

            6,026       5,983  

Diversified Financial Services

                                       

1-5 Years Maturity

                                       

Gibraltar Business Capital, LLC. (7)

400 Skokie Blvd #375

Northbrook, IL 60062

 

Diversified Financial Services

 

Unsecured

 

March 2023

 

Interest rate FIXED 14.50%

  $ 15,000       14,729       14,401  

Subtotal: 1-5 Years Maturity

            14,729       14,401  

Subtotal: Diversified Financial Services (1.51%)*

            14,729       14,401  

Drug Delivery

                                       

1-5 Years Maturity

                                       

AcelRx Pharmaceuticals, Inc. (11)

351 Galveston Drive

Redwood City, CA 94063

 

Drug Delivery

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 6.05% or Floor rate of 9.55%, 11.69% Exit Fee

  $ 10,936       11,926       11,842  

Antares Pharma Inc. (10)(11)(15)

100 Princeton South, Suite 300

Ewing, NJ 08628

 

Drug Delivery

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 4.25% Exit Fee

  $ 25,000       25,313       25,081  

Subtotal: 1-5 Years Maturity

            37,239       36,923  

Subtotal: Drug Delivery (3.86%)*

            37,239       36,923  

Drug Discovery & Development

                                       

Under 1 Year Maturity

                                       

Auris Medical Holding, AG (5)(10)

Dornacherstrasse 210

CH-4053, Basel Switzerland

 

Drug Discovery & Development

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 6.05% or Floor rate of 9.55%, 5.75% Exit Fee

  $ 757     $ 1,471     $ 1,471  

Brickell Biotech, Inc. (12)

5777 Central Ave, Suite 102

Boulder, CO 80301

 

Drug Discovery & Development

 

Senior Secured

 

September 2019

 

Interest rate PRIME + 5.70% or Floor rate of 9.20%, 7.82% Exit Fee

  $ 4,808       5,281       5,281  

Epirus Biopharmaceuticals, Inc. (8)

99 High Street

Boston, MA 02110-2320

 

Drug Discovery & Development

 

Senior Secured

 

June 2019

 

Interest rate PRIME + 4.70% or Floor rate of 7.95%, 3.00% Exit Fee

  $ 2,203       2,487        

Subtotal: Under 1 Year Maturity

            9,239       6,752  

1-5 Years Maturity

                                       

Acacia Pharma Inc. (10)(11)

The Officers' Mess, Royston Rd, Duxford

Cambridge, UK CB22 4QH

 

Drug Discovery & Development

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 4.50% or Floor rate of 9.25%, 3.95% Exit Fee

  $ 10,000       9,871       9,819  

Aveo Pharmaceuticals, Inc. (11)

One Broadway, 14th Floor

Cambridge, MA 02142

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 5.40% Exit Fee

  $ 10,000       10,111       10,042  

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 4.70% or Floor rate of 9.45%, 3.00% Exit Fee

  $ 10,000       10,220       10,157  

Total Aveo Pharmaceuticals, Inc.

  $ 20,000       20,331       20,199  

Axovant Sciences Ltd. (5)(10)(11)(16)

11 Times Square 33rd Floor

New York, NY 10036

 

Drug Discovery & Development

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 6.80% or Floor rate of 10.55%

  $ 50,219       49,485       49,286  

BridgeBio Pharma LLC (13)(16)

421 Kipling Street

Palo Alto, CA 94301

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 4.35% or Floor rate of 9.35%, 6.35% Exit Fee

  $ 35,000       35,054       35,263  

 

 

Drug Discovery & Development

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 3.35% or Floor rate of 9.10%, 5.75% Exit Fee

  $ 20,000       19,904       19,904  

Total BridgeBio Pharma LLC

  $ 55,000       54,958       55,167  

 

12

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Chemocentryx, Inc. (10)(15)

850 Maude Avenue

Mountain View, CA 94043

 

Drug Discovery & Development

 

Senior Secured

 

December 2022

 

Interest rate PRIME + 3.30% or Floor rate of 8.05%, 6.25% Exit Fee

  $ 20,000       19,957       20,104  

Genocea Biosciences, Inc. (11)

100 Acorn Park Drive, 5th Floor

Cambridge, MA 02140

 

Drug Discovery & Development

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 2.75% or Floor rate of 7.75%, 10.12% Exit Fee

  $ 14,000       14,937       14,788  

Merrimack Pharmaceuticals, Inc. (12)

One Kendall Square, Suite B7201

Cambridge, MA 2139

 

Drug Discovery & Development

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 4.00% or Floor rate of 9.25%, 5.55% Exit Fee

  $ 15,000       15,024       15,024  

Mesoblast (5)(10)(11)

55 Collins Street Level 38

Melbourne, Victoria, Australia 3000

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 4.95% or Floor rate of 9.45%, 6.95% Exit Fee

  $ 35,000       35,346       35,190  

Metuchen Pharmaceuticals LLC (14)

11 Commerce Drive, First Floor

Cranford, NJ 07016

 

Drug Discovery & Development

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 7.25% or Floor rate of 10.75%, PIK Interest 1.35%, 2.25% Exit Fee

  $ 18,569       19,256       19,122  

Motif BioSciences Inc. (5)(10)(11)(15)

125 Park Avenue., 25th Floor

New York, NY 10017

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.50% or Floor rate of 10.00%, 2.15% Exit Fee

  $ 15,000       14,907       14,786  

Myovant Sciences, Ltd. (5)(10)(11)

2000 Sierra Point Parkway, 9th Floor

Brisbane, CA 94005

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.00% or Floor rate of 8.25%, 6.55% Exit Fee

  $ 40,000       40,320       40,151  

Nabriva Therapeutics (5)(10)

25-28 North Wall Quay

IFSC, Dublin 1, Ireland 19406

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 4.30% or Floor rate of 9.80%, 6.95% Exit Fee

  $ 25,000       24,750       24,750  

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (10)(11)(15)(16)

75 Park Plaza, 4th Floor

Boston, MA 02116

 

Drug Discovery & Development

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee

  $ 40,000       40,882       40,472  

 

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 4.50% Exit Fee

  $ 10,000       10,240       10,137  

 

 

Drug Discovery & Development

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 2.75% or Floor rate of 8.50%, 2.25% Exit Fee

  $ 10,000       10,084       9,925  
   

Drug Discovery & Development

 

Senior Secured

 

August 2022

 

Interest rate PRIME + 2.10% or Floor rate of 7.85%, 6.95% Exit Fee

  $ 10,000       10,014       10,014  

Total Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.)

  $ 70,000       71,220       70,548  

Stealth Bio Therapeutics Corp. (5)(10)(11)

275 Grove Street, Suite 3-107

Newton, MA 02466

 

Drug Discovery & Development

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 5.50% or Floor rate of 9.50%, 6.25% Exit Fee

  $ 19,313       19,740       19,597  

Tricida, Inc. (11)(15)

7000 Shoreline Ct #201

South San Francisco, CA 94080

 

Drug Discovery & Development

 

Senior Secured

 

March 2022

 

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 8.19% Exit Fee

  $ 40,000       39,622       39,794  

uniQure B.V. (5)(10)(11)

Paasheuvelweg 25A

Amsterdam, The Netherlands 1105 BP

 

Drug Discovery & Development

 

Senior Secured

 

June 2023

 

Interest rate PRIME + 3.35% or Floor rate of 8.85%, 7.72% Exit Fee

  $ 35,000       35,538       35,386  

Verastem, Inc. (11)

117 Kendrick Street, Suite 500

Needham, MA 02494

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%
or Floor rate of 10.50%, 4.50% Exit Fee

  $ 5,000       5,058       5,059  

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00%
or Floor rate of 10.50%, 4.50% Exit Fee

  $ 5,000       5,082       5,083  

 

 

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

  $ 5,000       5,057       5,057  
   

Drug Discovery & Development

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 6.00% or Floor rate of 10.50%, 4.50% Exit Fee

  $ 10,000       10,033       9,976  

Total Verastem, Inc.

  $ 25,000       25,230       25,175  

X4 Pharmaceuticals Inc.

955 Massachusetts Ave 4th Floor

Cambridge, MA 02139

 

Drug Discovery & Development

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 4.25% or Floor rate of 9.50%, 7.95% Exit Fee

  $ 10,000       9,746       9,746  

Subtotal: 1-5 Years Maturity

            520,238       518,632  

Subtotal: Drug Discovery & Development (54.99%)*

            529,477       525,384  

Electronics & Computer Hardware

                                       

1-5 Years Maturity

                                       

908 DEVICES INC. (15)

645 Summer St. 2nd floor

Boston, MA 02210

 

Electronics & Computer Hardware

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 4.00% or Floor rate of 8.25%, 4.25% Exit Fee

  $ 10,000     $ 10,145     $ 10,155  

 

13

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Glo AB (5)(10)(13)(14)

1225 Bordeaux Drive

Sunnyvale, CA 94089

 

Electronics & Computer Hardware

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 6.20% or Floor rate of 10.45%, PIK Interest 1.75%, 2.95% Exit Fee

  $ 12,192       12,265       5,556  

Subtotal: 1-5 Years Maturity

            22,410       15,711  

Subtotal: Electronics & Computer Hardware (1.64%)*

            22,410       15,711  

Healthcare Services, Other

                                       

1-5 Years Maturity

                                       

Oak Street Health (12)

30 W. Monroe St. Suite 1200

Chicago, IL 60603

 

Healthcare Services, Other

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.75%, 5.95% Exit Fee

  $ 30,000       30,486       30,338  

PH Group Holdings (13)(17)

950 N Glebe Rd., Suite 4000

Arlington, VA 22203

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45% or Floor rate of 10.95%

  $ 20,000       19,889       19,806  

 

 

Healthcare Services, Other

 

Senior Secured

 

September 2020

 

Interest rate PRIME + 7.45% or Floor rate of 10.95%

  $ 10,000       9,938       9,896  

Total PH Group Holdings

  $ 30,000       29,827       29,702  

Subtotal: 1-5 Years Maturity

            60,313       60,040  

Subtotal: Healthcare Services, Other (6.28%)*

            60,313       60,040  

Information Services

                                       

1-5 Years Maturity

                                       

MDX Medical, Inc. (14)(15)(19)

160 Chubb Avenue, Suite 301

Lyndhurst, NJ 07071

 

Information Services

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.00% or Floor rate of 8.25%, PIK Interest 1.70%

  $ 15,288       15,037       14,987  

Subtotal: 1-5 Years Maturity

            15,037       14,987  

Subtotal: Information Services (1.57%)*

            15,037       14,987  

Internet Consumer & Business Services

                                       

Under 1 Year Maturity

                                       

LogicSource

20 Marshall Street

South Norwalk, CT 06854

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2019

 

Interest rate PRIME + 6.25% or Floor rate of 9.75%, 5.00% Exit Fee

  $ 3,099     $ 3,486     $ 3,486  

The Faction Group LLC (11)

1660 Lincoln St., Suite 1600

Denver, CO 80264

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2019

 

Interest rate PRIME + 4.75% or Floor rate of 8.25%

  $ 2,000       2,000       2,000  

Subtotal: Under 1 Year Maturity

            5,486       5,486  

1-5 Years Maturity

                                       

AppDirect, Inc. (11)(19)

650 California Street, Fl 25

San Francisco, CA 94108

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 5.70% or Floor rate of 9.95%, 3.45% Exit Fee

  $ 20,000       20,006       19,941  

Art.com, Inc. (12)(14)(15)

2100 Powell Street 13th Floor

Emeryville, CA 94608

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2021

 

Interest rate PRIME + 5.40% or Floor rate of 10.15%, PIK Interest 1.70%, 1.50% Exit Fee

  $ 10,117       10,020       10,028  

Cloudpay, Inc. (5)(10)

Kingsgate House, Newbury Road Andover

Hampshire, United Kingdom SP10 4DU

 

Internet Consumer & Business Services

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.05% or Floor rate of 8.55%, 6.95% Exit Fee

  $ 11,000       11,017       11,020  

Contentful, Inc. (5)(10)(14)

150 Spear Street,

San Francisco, CA 94105

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 2.95% or Floor rate of 7.95%, PIK Interest 1.25%

  $ 3,750       3,692       3,692  

Convercent, Inc. (14)(15)(17)

5995 Greenwood Plaza Blvd Suite 110

Greenwood Village, CO 80111

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 2.55% or Floor rate of 7.80%, PIK Interest 2.95%, 1.00% Exit Fee

  $ 7,500       7,419       7,419  

EverFi, Inc. (11)(14)(16)

3299 K Street N.W., 4th Floor

Washington, DC 20007

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2022

 

Interest rate PRIME + 3.90% or Floor rate of 8.65%, PIK Interest 2.30%

  $ 60,729       60,687       60,408  

Fastly, Inc. (17)(19)

475 Brannan St., Suite 300

San Francisco, CA 94107

 

Internet Consumer & Business Services

 

Senior Secured

 

December 2021

 

Interest rate PRIME + 4.25%, 1.50% Exit Fee

  $ 6,667       6,563       6,563  

First Insight, Inc. (15)

2000 Ericsson Drive, Suite 200

Warrendale, PA 15086

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 6.25% or Floor rate of 11.25%

  $ 7,500       7,368       7,375  

Greenphire, Inc. (17)

630 Allendale Road, Suite 250

King of Prussia, PA 19406

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 8.00% or Floor rate of 9.00%

  $ 2,776       2,776       2,785  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 3.75% or Floor rate of 7.00%

  $ 1,500       1,500       1,498  

Total Greenphire, Inc.

  $ 4,276       4,276       4,283  

Intent Media, Inc. (12)(17)

75 Varick St.,

New York, NY 10013

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.13% or Floor rate of 10.125%, 2.00% Exit Fee

  $ 12,200       12,210       12,147  

 

14

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Interactions Corporation (11)(19)

31 Hayward Street., Suite E

Franklin, MA 02038

 

Internet Consumer & Business Services

 

Senior Secured

 

March 2021

 

Interest rate 3-month LIBOR + 8.60% or Floor rate of 9.85%, 1.75% Exit Fee

  $ 25,000       25,092       24,987  

Postmates, Inc. (17)(19)

201 Third Steet 2nd Floor

San Francisco, CA 94105

 

Internet Consumer & Business Services

 

Senior Secured

 

September 2022

 

Interest rate PRIME + 3.85% or Floor rate of 8.85%, 8.05% Exit Fee

  $ 20,000       19,666       19,666  

RumbleON, Inc.

4521 Sharon Road, Suite 370

Charlotte, NC 28211

 

Internet Consumer & Business Services

 

Senior Secured

 

May 2021

 

Interest rate PRIME + 5.75% or Floor rate of 10.25%, 4.55% Exit Fee

  $ 5,000       5,018       4,984  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

October 2021

 

Interest rate PRIME + 5.75% or Floor rate of 10.25%, 2.95% Exit Fee

  $ 5,000       4,941       4,941  

Total RumbleON, Inc.

  $ 10,000       9,959       9,925  

Snagajob.com, Inc. (13)(14)

1919 N Lynn Street, 7th Floor

Arlington, VA 22209

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2020

 

Interest rate PRIME + 5.15% or Floor rate of 9.15%, PIK Interest 1.95%, 2.55% Exit Fee

  $ 41,841       42,139       42,075  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2020

 

Interest rate PRIME + 5.65% or Floor rate of 10.65%, PIK Interest 1.95%, 2.55% Exit Fee

  $ 5,033       4,867       4,867  

Total Snagajob.com, Inc.

  $ 46,874       47,006       46,942  

Tectura Corporation (7)(8)(9)(14)

951 Old County Road, Suite 2-317

Belmont, CA 94002

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

Interest rate FIXED 6.00%, PIK Interest 3.00%

  $ 20,924       20,924       18,128  

 

 

Internet Consumer & Business Services

 

Senior Secured

 

June 2021

 

PIK Interest 8.00%

  $ 10,680       240        

Total Tectura Corporation

  $ 31,604       21,164       18,128  

The Faction Group LLC (11)

1660 Lincoln St., Suite 1600

Denver, CO 80264

 

Internet Consumer & Business Services

 

Senior Secured

 

January 2021

 

Interest rate 3-month LIBOR + 9.25% or Floor rate of 10.25%

  $ 6,667       6,667       6,653  

Wheels Up Partners LLC (11)

220 West 42nd Street 16th Floor

New York, NY 10036

 

Internet Consumer & Business Services

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.55% or Floor rate of 9.55%

  $ 20,241       20,076       19,921  

Xometry, Inc. (13)(17)(19)

7940 Cessna Avenue

Gaithersburg, MD 20879

 

Internet Consumer & Business Services

 

Senior Secured

 

November 2021

 

Interest rate PRIME + 3.95% or Floor rate of 8.45%, 7.09% Exit Fee

  $ 11,000       10,997       10,995  

Subtotal: 1-5 Years Maturity

            303,885       300,093  

Subtotal: Internet Consumer & Business Services (31.98%)*

            309,371       305,579  

Media/Content/Info

                                       

1-5 Years Maturity

                                       

Bustle (14)(15)

315 Park Avenue South 12th Floor

New York, NY 10010

 

Media/Content/Info

 

Senior Secured

 

June 2021

 

Interest rate PRIME + 4.10% or Floor rate of 8.35%, PIK Interest 1.95%, 3.12% Exit Fee

  $ 15,315     $ 15,336     $ 15,453  

Subtotal: 1-5 Years Maturity

            15,336       15,453  

Subtotal: Media/Content/Info (1.62%)*

            15,336       15,453  

Medical Devices & Equipment

                                       

Under 1 Year Maturity

                                       

Micell Technologies, Inc. (11)

801 Capitola Drive, Suite 1

Durham, NC 27713

 

Medical Devices & Equipment

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 7.25% or Floor rate of 10.50%, 5.00% Exit Fee

  $ 2,323       2,724       2,405  

Subtotal: Under 1 Year Maturity

            2,724       2,405  

1-5 Years Maturity

                                       

Flowonix Medical, Inc. (11)(14)

500 International Drive, Suite 200

Mount Olive, NJ 07828

 

Medical Devices & Equipment

 

Senior Secured

 

October 2021

 

Interest rate PRIME + 4.00% or Floor rate of 9.00%, PIK Interest 0.5%, 7.95% Exit Fee

  $ 15,007       14,673       14,673  

Intuity Medical, Inc. (11)(15)

3500 West Warren Avenue.

Fremont, CA 94538

 

Medical Devices & Equipment

 

Senior Secured

 

June 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.25%, 5.95% Exit Fee

  $ 17,500       17,504       17,417  

Quanta Dialysis Technologies (5)(10)

Tything Road

Alcester, UK B49 6EU

 

Medical Devices & Equipment

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 8.05% or Floor rate of 11.55%, 5.00% Exit Fee

  $ 5,806       6,324       6,344  

Quanterix Corporation (11)

113 Hartwell Avenue

Lexington, MA 02421

 

Medical Devices & Equipment

 

Senior Secured

 

March 2020

 

Interest rate PRIME + 2.75% or Floor rate of 8.00%, 0.58% Exit Fee

  $ 7,688       7,656       7,577  

Rapid Micro Biosystems, Inc. (11)(15)

1001 Pawtucket Blvd West, Suite 280

Lowell, MA 01854

 

Medical Devices & Equipment

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 5.15% or Floor rate of 9.65%, 7.25% Exit Fee

  $ 18,000       18,143       18,013  

Sebacia, Inc. (11)(15)

2905 Premiere Parkway, Suite 150

Duluth, GA 30097

 

Medical Devices & Equipment

 

Senior Secured

 

January 2021

 

Interest rate PRIME + 4.35% or Floor rate of 8.85%, 6.05% Exit Fee

  $ 11,000       11,151       11,071  

 

15

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Transenterix, Inc. (10)(11)

635 Davis Drive, Suite 300

Morrisville, NC 27560

 

Medical Devices & Equipment

 

Senior Secured

 

June 2022

 

Interest rate PRIME + 4.55% or Floor rate of 9.55%, 6.95% Exit Fee

  $ 30,000       29,972       29,852  

Subtotal: 1-5 Years Maturity

            105,423       104,947  

Subtotal: Medical Devices & Equipment (11.24%)*

            108,147       107,352  

Software

                                       

Under 1 Year Maturity

                                       

Pollen, Inc. (15)

2000 Shawnee Mission Parkway, Suite 200

Mission Woods, KS 66205

 

Software

 

Senior Secured

 

April 2019

 

Interest rate PRIME + 4.25% or Floor rate of 8.50%, 4.00% Exit Fee

  $ 7,000       7,214       7,214  

Subtotal: Under 1 Year Maturity

            7,214       7,214  

1-5 Years Maturity

                                       

Abrigo (p.k.a. Banker's Toolbox, Inc.) (13)(18)

4, 12331-B Riata Trace Pkwy #200

Austin, TX 78727

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.88% or Floor rate of 7.88%

  $ 39,701     $ 38,871     $ 38,617  

Businessolver.com, Inc. (16)(17)

1025 Ashworth Road Suite 101

West Des Moines, IA 50265

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50% or Floor rate of 7.50%

  $ 52,913       51,958       51,417  

 

 

Software

 

Senior Secured

 

May 2023

 

Interest rate 3-month LIBOR + 7.50% or Floor rate of 7.50%

  $ 2,550       2,551       2,550  

Total Businessolver.com, Inc.

  $ 55,463       54,509       53,967  

Clarabridge, Inc. (12)(14)(17)

11400 Commerce Park Drive., Suite 500

Reston, VA 20191

 

Software

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.80% or Floor rate of 8.55%, PIK Interest 2.25%

  $ 42,300       41,843       41,921  

Cloudian, Inc.

177 Bovet Road, Suite 450

San Mateo, CA 94402

 

Software

 

Senior Secured

 

November 2022

 

Interest rate PRIME + 3.25% or Floor rate of 8.25%, 9.75% Exit Fee

  $ 15,000       14,814       14,814  

Couchbase, Inc. (15)(17)(19)

3250 Olcott Street

Santa Clara, CA 95054

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 5.25% or Floor rate of 10.75%

  $ 15,000       14,921       14,921  

Credible Behavioral Health, Inc. (14)(17)

1 Choice Hotels Circle, 11th Floor

Rockville, MD 20850

 

Software

 

Senior Secured

 

September 2021

 

Interest rate PRIME + 3.20% or Floor rate of 7.95%, PIK Interest 3.30%

  $ 7,573       7,493       7,493  

Dashlane, Inc. (14)(19)

156 5th Avenue, #504

New York, NY 10010

 

Software

 

Senior Secured

 

April 2022

 

Interest rate PRIME + 4.05% or Floor rate of 8.55%, PIK Interest 1.10%, 9.25% Exit Fee

  $ 10,067       10,107       10,137  

DocuTAP, Inc. (17)

4701 West Research Drive Suite 102

Sioux Falls, SD 57107

 

Software

 

Senior Secured

 

October 2023

 

Interest rate 3-month LIBOR + 8.00% or Floor rate of 8.00%

  $ 14,000       13,609       13,609  

Emma, Inc. (17)(18)

9 Lea Avenue

Nashville, TN 37210

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 8.39% or Floor rate of 8.39%

  $ 37,037       35,858       35,251  

 

 

Software

 

Senior Secured

 

September 2022

 

Interest rate 3-month LIBOR + 8.18% or Floor rate of 8.18%

  $ 6,000       5,827       5,826  

Total Emma, Inc.

  $ 43,037       41,685       41,077  

Evernote Corporation (14)(15)(17)(19)

305 Walnut Street

Redwood City, CA 94063

 

Software

 

Senior Secured

 

October 2020

 

Interest rate PRIME + 5.45% or Floor rate of 8.95%

  $ 5,549       5,537       5,592  

 

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 1.25%

  $ 4,074       4,058       4,074  

 

 

Software

 

Senior Secured

 

July 2022

 

Interest rate PRIME + 6.00% or Floor rate of 9.50%, PIK Interest 1.25%

  $ 5,015       4,982       4,993  

Total Evernote Corporation

  $ 14,638       14,577       14,659  

Fuze, Inc. (13)(14)(15)(16)(19)

2 Copley Place, Floor 7

Boston, MA 02116

 

Software

 

Senior Secured

 

July 2021

 

Interest rate PRIME + 3.70% or Floor rate of 7.95%, PIK Interest 1.55%, 3.55% Exit Fee

  $ 51,129       51,284       51,943  

Impact Radius Holdings, Inc. (11)(14)

223 East De La Guerra Street

Santa Barbara, CA 93101

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.25% or Floor rate of 8.75%, PIK Interest 1.55%, 1.75% Exit Fee

  $ 10,191       10,271       10,237  

 

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 4.25% or Floor rate of 8.75%, PIK Interest 1.55%

  $ 2,014       2,014       2,008  

Total Impact Radius Holdings, Inc.

  $ 12,205       12,285       12,245  

Insurance Technologies Corporation (17)(18)

1415 Halsey Way #314

Carrollton, TX 75007

 

Software

 

Senior Secured

 

March 2023

 

Interest rate 3-month LIBOR + 7.82% or Floor rate of 8.75%

  $ 12,500       12,258       12,071  

 

16

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Lightbend, Inc. (14)(15)

625 Market St 10th Floor

San Francisco, CA 94105

 

Software

 

Senior Secured

 

February 2022

 

Interest rate PRIME + 4.25% or Floor rate of 8.50%, PIK Interest 2.00%

  $ 16,179       15,850       15,741  

Lithium Technologies, Inc. (11)(16)(17)

Pier 1, Bay 1A

San Francisco, CA 94111

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 1-month LIBOR + 8.00% or Floor rate of 9.00%

  $ 12,000       11,785       11,659  

 

 

Software

 

Senior Secured

 

October 2022

 

Interest rate 1-month LIBOR + 8.00% or Floor rate of 9.00%

  $ 43,000       42,047       42,047  

Total Lithium Technologies, Inc.

  $ 55,000       53,832       53,706  

Microsystems Holding Company, LLC (13)(19)

535 Madison Ave., Fl 4

New York, NY 10022

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 8.25% or Floor rate of 9.25%

  $ 12,000       11,854       11,842  

Quid, Inc. (14)(15)

600 Harrison Street, Suite 400

San Francisco, CA 94107

 

Software

 

Senior Secured

 

February 2021

 

Interest rate PRIME + 4.75% or Floor rate of 8.25%, PIK Interest 2.25%, 3.00% Exit Fee

  $ 8,494       8,632       8,619  

RapidMiner, Inc. (12)(14)

10 Milk Street., 11th Floor

Boston, MA 02108

 

Software

 

Senior Secured

 

December 2020

 

Interest rate PRIME + 5.50% or Floor rate of 9.75%, PIK Interest 1.65%

  $ 7,119     $ 7,018     $ 6,965  

Regent Education (14)

340 East Patrick Street, Suite 210

Frederick, MD 21701

 

Software

 

Senior Secured

 

January 2021

 

Interest rate FIXED 10.00%, PIK Interest 2.00%, 6.35% Exit Fee

  $ 3,092       3,115       1,579  

Salsa Labs, Inc. (11)(17)

7200 Wisconsin Avenue, Suite 200

Bethesda, MD 20814

 

Software

 

Senior Secured

 

April 2023

 

Interest rate 3-month LIBOR + 8.15% or Floor rate of 9.15%

  $ 6,000       5,894       5,823  

Signpost, Inc. (11)(14)

127 W 26th St., Floor 2

New York, NY 10001

 

Software

 

Senior Secured

 

February 2020

 

Interest rate PRIME + 4.15% or Floor rate of 8.15%, PIK Interest 1.75%, 5.75% Exit Fee

  $ 15,787       16,293       16,267  

ThreatConnect, Inc. (14)(15)(19)

3865 Wilson Blvd., Suite 550

Arlington, VA 22203

 

Software

 

Senior Secured

 

October 2022

 

Interest rate PRIME + 4.95% or Floor rate of 9.95%, PIK Interest 1.05%, 2.20% Exit Fee

  $ 7,519       7,443       7,443  

Vela Trading Technologies (11)(18)

211 East 43 Street 5th Floor

New York, NY 10017

 

Software

 

Senior Secured

 

July 2022

 

Interest rate 3-month LIBOR + 9.50% or Floor rate of 10.50%

  $ 19,750       19,345       19,309  

YouEarnedIt, Inc. (18)

206 East 9th Street, Floor 18

Austin, TX 78701

 

Software

 

Senior Secured

 

July 2023

 

Interest rate 1-month LIBOR + 8.66%

  $ 8,978       8,735       8,735  

ZocDoc (11)(19)

568 Broadway Floor 9

New York, NY 10012

 

Software

 

Senior Secured

 

August 2021

 

Interest rate PRIME + 6.20% or Floor rate of 10.95%, 2.00% Exit Fee

  $ 30,000       30,003       29,875  

Subtotal: 1-5 Years Maturity

            516,270       513,378  

Subtotal: Software (54.49%)*

            523,484       520,592  

Sustainable and Renewable Technology

                                       

Under 1 Year Maturity

                                       

Solar Spectrum Holdings LLC (p.k.a. Sungevity, Inc.) (6)(14)(19)

150 Linden Street

Oakland, CA 94607

 

Sustainable and Renewable Technology

 

Senior Secured

 

August 2019

 

Interest rate PRIME + 8.70% or Floor rate of 12.95%, 5.00% Exit Fee

  $ 10,000       10,151       10,151  

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2019

 

PIK Interest 10.00%

  $ 649       650       650  

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

February 2019

 

Interest rate PRIME + 10.70% or Floor rate of 15.70%, PIK Interest 2.00%

  $ 603       603       603  

Total Solar Spectrum LLC

                  $ 11,252     $ 11,404     $ 11,404  

Subtotal: Under 1 Year Maturity

                            11,404       11,404  

1-5 Years Maturity

                                       

FuelCell Energy, Inc. (12)

3 Great Pasture Road

Danbury, CT 06810

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 5.40% or Floor rate of 9.90%, 6.68% Exit Fee

  $ 13,091       13,362       13,330  

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

April 2020

 

Interest rate PRIME + 5.40% or Floor rate of 9.90%, 8.50% Exit Fee

  $ 11,909       11,908       11,874  

Total FuelCell Energy, Inc.

  $ 25,000     $ 25,270     $ 25,204  

Impossible Foods, Inc. (12)(17)

400 Saginaw Drive

Redwood City, CA 94063

 

Sustainable and Renewable Technology

 

Senior Secured

 

January 2022

 

Interest rate PRIME + 3.95% or Floor rate of 8.95%, 9.00% Exit Fee

  $ 30,000       29,981       29,680  

Metalysis Limited (5)(10)(11)

Unit 2, Farfield Park Manvers Way, Wath upon Dearne

Rotherham, South Yorkshire, UK S63 5DB

 

Sustainable and Renewable Technology

 

Senior Secured

 

March 2021

 

Interest rate PRIME + 5.00% or Floor rate of 9.25%, 6.95% Exit Fee

  $ 7,254       7,400       7,360  

 

17

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
  Maturity Date   Interest Rate and Floor(2)   Principal Amount     Cost(3)     Value(4)  

Proterra, Inc. (11)(14)

1 Whitlee Ct.

Greenville, SC 29607

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2020

 

Interest rate PRIME + 3.70% or Floor rate of 7.95%, PIK Interest 1.75%, 5.95% Exit Fee

  $ 25,484       26,775       26,888  

 

 

Sustainable and Renewable Technology

 

Senior Secured

 

November 2020

 

Interest rate PRIME + 3.70% or Floor rate of 7.95%, PIK Interest 1.75%, 7.00% Exit Fee

  $ 5,097       5,381       5,386  

Total Proterra, Inc.

  $ 30,581       32,156       32,274  

Subtotal: 1-5 Years Maturity

            94,807       94,518  

Subtotal: Sustainable and Renewable Technology (11.09%)*

            106,211       105,922  

Total: Debt Investments (181.43%)*

            1,752,945       1,733,492  

 

18

 

(dollars in thousands)

 

Portfolio Company

 

Sub-Industry

 

Type of
Investment
(1)

 

Percentage Ownership

   

Series

 

Shares

   

Cost(3)

   

Value(4)

 

Equity Investments

                                       

Communications & Networking

                                       

GlowPoint, Inc. (4)

430 Mountain Ave Suite 301

Murray Hill, NJ 7974

 

Communications & Networking

 

Equity

    0.23 %  

Common Stock

    114,192     $ 102     $ 14  

Peerless Network Holdings, Inc.

222 South Riverside Plaza, Suite 2730

Chicago, IL 60606

 

Communications & Networking

 

Equity

    3.41 %  

Preferred Series A

    1,135,000       1,229       4,847  

Subtotal: Communications & Networking (0.51%)*

                        1,331       4,861  


Diagnostic

                                       

Singulex, Inc.

1701 Harbor Way Parkway, Suite 200

Alameda, CA 94502

 

Diagnostic

 

Equity

    0.36 %  

Common Stock

    937,998       750       348  

Subtotal: Diagnostic (0.04%)*

                        750       348  


Diversified Financial Services

                                       

Gibraltar Business Capital, LLC. (7)

400 Skokie Blvd #375

Northbrook, IL 60062

 

Diversified Financial Services

 

Equity

    7.26 %  

Common Stock

    830,000       1,884       1,688  
   

Diversified Financial Services

 

Equity

    92.74 %  

Preferred Series A

    10,602,752       26,122       23,402  

Total Gibraltar Business Capital, LLC

                11,432,752       28,006       25,090  

Subtotal: Diversified Financial Services (2.63%)*

                        28,006       25,090  

Drug Delivery

                                       

AcelRx Pharmaceuticals, Inc. (4)

351 Galveston Drive

Redwood City, CA 94063

 

Drug Delivery

 

Equity

    0.22 %  

Common Stock

    176,730       1,329       318  

BioQ Pharma Incorporated (15)

1325 Howard St

San Francisco, CA 94107

 

Drug Delivery

 

Equity

    0.47 %  

Preferred Series D

    165,000       500       599  

Edge Therapeutics, Inc. (4)

300 Connell Dr., Suite 4000

Berkeley Heights, NJ 07922

 

Drug Delivery

 

Equity

    0.16 %  

Common Stock

    49,965       309       16  

Neos Therapeutics, Inc. (4)(15)

2940 N. Highway 360, Suite 400

Grand Prarie, TX 75050

 

Drug Delivery

 

Equity

    0.42 %  

Common Stock

    125,000       1,500       206  

Subtotal: Drug Delivery (0.12%)*

                        3,638       1,139  

Drug Discovery & Development

                                       

Aveo Pharmaceuticals, Inc. (4)(15)

One Broadway, 14th Floor

Cambridge, MA 02142

 

Drug Discovery & Development

 

Equity

    1.52 %  

Common Stock

    1,901,791       1,715       3,112  

Axovant Sciences Ltd. (4)(5)(10)(16)

11 Times Square 33rd Floor

New York, NY 10036

 

Drug Discovery & Development

 

Equity

    0.08 %  

Common Stock

    129,827       1,269       129  

BridgeBio Pharma LLC (16)

421 Kipling Street

Palo Alto, CA 94301

 

Drug Discovery & Development

 

Equity

    0.20 %  

Preferred Series D

    1,008,929       2,000       1,819  

Cerecor, Inc. (4)

400 East Pratt Street, Suite 606

Baltimore, MD 21202

 

Drug Discovery & Development

 

Equity

    0.29 %  

Common Stock

    119,087       1,000       385  

Dare Biosciences, Inc. (p.k.a. Cerulean Pharma, Inc.) (4)

35 Gatehouse Drive

Waltham, MA 02451

 

Drug Discovery & Development

 

Equity

    0.12 %  

Common Stock

    13,550       1,000       10  

 

19

 

Portfolio Company   Sub-Industry   Type of
Investment
(1)
    Percentage Ownership     Series   Shares     Cost(3)     Value(4)  

Dicerna Pharmaceuticals, Inc. (4)

87 Cambridge Park Dr

Cambridge, MA 02140

 

Drug Discovery & Development

 

Equity

    0.23 %  

Common Stock

    142,858       1,000       1,527  

Dynavax Technologies (4)(10)

2929 Seventh Street, Suite 100

Berkeley, CA 94710

 

Drug Discovery & Development

 

Equity

    0.03 %  

Common Stock

    20,000       550       183  

Eidos Therapeutics, Inc. (4)(10)

101 Montgomery Street, Suite 2550

San Francisco, CA 94104

 

Drug Discovery & Development

 

Equity

    0.04 %  

Common Stock

    15,000       255       206  

Genocea Biosciences, Inc. (4)

100 Acorn Park Drive, 5th Floor

Cambridge, MA 02140

 

Drug Discovery & Development

 

Equity

    0.26 %  

Common Stock

    223,463       2,000       64  

Insmed, Incorporated (4)

10 Finderne Ave Building 10

Bridgewater, NJ 8807

 

Drug Discovery & Development

 

Equity

    0.09 %  

Common Stock

    70,771       1,000       929  

Melinta Therapeutics, Inc. (4)

300 TriState International, Suite 272

Lincolnshire, IL 60069

 

Drug Discovery & Development

 

Equity

    0.46 %  

Common Stock

    51,821       2,000       42  

Paratek Pharmaceuticals, Inc. (p.k.a. Transcept Pharmaceuticals, Inc.) (4)(10)(16)

75 Park Plaza, 4th Floor

Boston, MA 02116

 

Drug Discovery & Development

 

Equity

    0.24 %  

Common Stock

    76,362       2,744       392  

Rocket Pharmaceuticals, Ltd (p.k.a. Inotek Pharmaceuticals Corporation) (4)

131 Hartwell Ave Suite 105

Lexington, MA 2421

 

Drug Discovery & Development

 

Equity

    0.00 %  

Common Stock

    944       1,500       14  

Tricida, Inc. (4)

7000 Shoreline Ct #201

South San Francisco, CA 94080

 

Drug Discovery & Development

 

Equity

    0.25 %  

Common Stock

    105,260       2,000       2,481  

Subtotal: Drug Discovery & Development (1.18%)*

                        20,033       11,293  

Electronics & Computer Hardware