Document


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-Q
 
x
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2017
OR
o
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period                      to                     
Commission File No. 000-54899
 
 
TCG BDC, INC.
(Exact name of Registrant as specified in its charter)
 
 
Maryland
 
80-0789789
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification Number)
520 Madison Avenue, 40th Floor, New York, NY 10022
(Address of principal executive office) (Zip Code)
(212) 813-4900
(Registrant’s telephone number, including area code)
 
 
 
N/A
(Former name, former address and former fiscal year, if changed since last report)
 
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days:    Yes  ☒    No  ☐
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  o    No  o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
 
o
  
Accelerated filer
 
o
 
 
 
 
Non-accelerated filer
 
x  (Do not check if a smaller reporting company)
  
Smaller reporting company
 
o
 
 
 
 
Emerging Growth Company
 
x
  
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  x
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  o    No  x
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class
Outstanding at November 7, 2017
Common stock, $0.01 par value
62,207,603





TCG BDC, INC.
INDEX
 
 
 
 
Part I.
Financial Information
 
Item 1.
Financial Statements
 
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Part II.
Other Information
 
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.
 

2





TCG BDC, INC.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
(dollar amounts in thousands, except per share data)
 
September 30, 2017
 
December 31, 2016
ASSETS
(unaudited)
 
 
Investments, at fair value
 
 
 
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,769,297 and $1,332,596, respectively)
$
1,760,611

 
$
1,323,102

Investments—non-controlled/affiliated, at fair value (amortized cost of $15,935 and $0, respectively)
14,959

 

Investments—controlled/affiliated, at fair value (amortized cost of $186,801 and $97,385, respectively)
188,547

 
99,657

Total investments, at fair value (amortized cost of $1,972,033 and $1,429,981, respectively)
1,964,117

 
1,422,759

Cash and cash equivalents
35,149

 
38,489

Receivable for investment sold

 
19,750

Deferred financing costs
3,734

 
3,308

Interest receivable from non-controlled/non-affiliated investments
4,892

 
3,407

Interest and dividend receivable from controlled/affiliated investments
5,528

 
2,400

Prepaid expenses and other assets
55

 
42

Total assets
$
2,013,475

 
$
1,490,155

LIABILITIES
 
 
 
Secured borrowings (Note 6)
$
578,769

 
$
421,885

2015-1 Notes payable, net of unamortized debt issuance costs of $1,999 and $2,151, respectively (Note 7)
271,001

 
270,849

Due to Investment Adviser
102

 
215

Interest and credit facility fees payable (Notes 6 and 7)
4,792

 
3,599

Dividend payable (Note 9)
22,888

 
20,018

Base management and incentive fees payable (Note 4)
9,986

 
8,157

Administrative service fees payable (Note 4)
100

 
137

Other accrued expenses and liabilities
1,484

 
1,158

Total liabilities
889,122

 
726,018

Commitments and contingencies (Notes 8 and 11)
 
 
 
NET ASSETS
 
 
 
Common stock, $0.01 par value; 200,000,000 shares authorized; 61,859,848 shares and 41,702,318 shares issued and outstanding at September 30, 2017 and December 31, 2016, respectively
619

 
417

Paid-in capital in excess of par value
1,166,599

 
799,580

Offering costs
(1,588
)
 
(74
)
Accumulated net investment income (loss), net of cumulative dividends of $191,773 and $129,065 at September 30, 2017 and December 31, 2016, respectively
(280
)
 
(3,207
)
Accumulated net realized gain (loss)
(33,081
)
 
(25,357
)
Accumulated net unrealized appreciation (depreciation)
(7,916
)
 
(7,222
)
Total net assets
$
1,124,353

 
$
764,137

NET ASSETS PER SHARE
$
18.18

 
$
18.32

The accompanying notes are an integral part of these consolidated financial statements.

3



TCG BDC, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(dollar amounts in thousands, except per share data)
(unaudited)
 
For the three month periods ended
 
For the nine month periods ended
 
September 30, 2017
 
September 30, 2016
 
September 30, 2017
 
September 30, 2016
Investment income:
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
34,684

 
$
26,362

 
$
93,564

 
$
72,551

Other income
1,318

 
1,909

 
7,900

 
4,578

Total investment income from non-controlled/non-affiliated investments
36,002

 
28,271

 
101,464

 
77,129

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
834

 

 
834

 

Total investment income from non-controlled/affiliated investments
834

 

 
834

 

From controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
3,012

 
336

 
7,333

 
336

Dividend income
2,800

 
350

 
5,860

 
350

Total investment income from controlled/affiliated investments
5,812

 
686

 
13,193

 
686

Total investment income
42,648

 
28,957

 
115,491

 
77,815

Expenses:
 
 
 
 
 
 
 
Base management fees (Note 4)
6,999

 
4,699

 
17,781

 
13,184

Incentive fees (Note 4)
5,321

 
3,962

 
15,459

 
10,318

Professional fees
361

 
568

 
1,957

 
1,574

Administrative service fees (Note 4)
184

 
180

 
522

 
526

Interest expense (Notes 6 and 7)
5,922

 
4,051

 
16,694

 
11,475

Credit facility fees (Note 6)
521

 
682

 
1,553

 
2,139

Directors’ fees and expenses
121

 
146

 
355

 
410

Other general and administrative
472

 
390

 
1,462

 
1,312

Total expenses
19,901

 
14,678

 
55,783

 
40,938

Waiver of base management fees (Note 4)
2,333

 
1,567

 
5,927

 
4,395

Net expenses
17,568

 
13,111

 
49,856

 
36,543

Net investment income (loss)
25,080

 
15,846

 
65,635

 
41,272

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
 
 
 
 
 
 
 
Net realized gain (loss) from:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
172

 
544

 
(7,724
)
 
(9,055
)
Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated
279

 
10,536

 
808

 
18,239

Non-controlled/affiliated
976

 

 
(976
)
 

Controlled/affiliated
(964
)
 
2,244

 
(526
)
 
1,957

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments
463

 
13,324

 
(8,418
)
 
11,141

Net increase (decrease) in net assets resulting from operations
$
25,543

 
$
29,170

 
$
57,217

 
$
52,413

Basic and diluted earnings per common share (Note 9)
$
0.41

 
$
0.78

 
$
1.15

 
$
1.51

Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)
61,840,100

 
37,489,297

 
49,915,318

 
34,623,225

Dividends declared per common share (Note 9)
$
0.37

 
$
0.40

 
$
1.15

 
$
1.20

The accompanying notes are an integral part of these consolidated financial statements.

4



TCG BDC, INC.
CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS
(dollar amounts in thousands)
(unaudited)
 
For the nine month periods ended
 
September 30, 2017
 
September 30, 2016
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income (loss)
$
65,635

 
$
41,272

Net realized gain (loss) on investments
(7,724
)
 
(9,055
)
Net change in unrealized appreciation (depreciation) on investments
(694
)
 
20,196

Net increase (decrease) in net assets resulting from operations
57,217

 
52,413

Capital transactions:
 
 
 
Common stock issued, net of offering and underwriting costs
365,505

 
150,102

Reinvestment of dividends
202

 
194

Dividends declared (Note 12)
(62,708
)
 
(43,197
)
Net increase (decrease) in net assets resulting from capital share transactions
302,999

 
107,099

Net increase (decrease) in net assets
360,216

 
159,512

Net assets at beginning of period
764,137

 
571,726

Net assets at end of period
$
1,124,353

 
$
731,238

The accompanying notes are an integral part of these consolidated financial statements.

5



TCG BDC, INC.
CONSOLIDATED STATEMENTS OF CASH FLOWS
(dollar amounts in thousands)
(unaudited)
 
For the nine month periods ended
 
September 30, 2017
 
September 30, 2016
Cash flows from operating activities:
 
 
 
Net increase (decrease) in net assets resulting from operations
$
57,217

 
$
52,413

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used in) operating activities:
 
 
 
Amortization of deferred financing costs
694

 
1,180

Net accretion of discount on investments
(8,403
)
 
(3,605
)
Paid-in-kind interest
(778
)
 

Net realized (gain) loss on investments
7,724

 
9,055

Net change in unrealized (appreciation) depreciation on investments
694

 
(20,196
)
Cost of investments purchased and change in payable for investments purchased
(1,011,782
)
 
(562,916
)
Proceeds from sales and repayments of investments and change in receivable for investments sold
541,111

 
256,482

Changes in operating assets:
 
 
 
Interest receivable
(3,138
)
 
(897
)
Dividend receivable
(1,475
)
 
(350
)
Prepaid expenses and other assets
(13
)
 
130

Changes in operating liabilities:
 
 
 
Due to Investment Adviser
(113
)
 
(49
)
Interest and credit facility fees payable
1,193

 
700

Base management and incentive fees payable
1,829

 
10,865

Administrative service fees payable
(37
)
 
30

Other accrued expenses and liabilities
290

 
347

Net cash provided by (used in) operating activities
(414,987
)
 
(256,811
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock, net of offering and underwriting costs
357,495

 
150,102

Borrowings on SPV Credit Facility and Credit Facility
597,450

 
411,435

Repayments of SPV Credit Facility and Credit Facility
(440,566
)
 
(250,732
)
Repayments of debt assumed from NFIC Acquisition
(42,128
)
 

Debt issuance costs paid
(968
)
 
(620
)
Dividends paid in cash
(59,636
)
 
(45,370
)
Net cash provided by (used in) financing activities
411,647

 
264,815

Net increase (decrease) in cash and cash equivalents
(3,340
)
 
8,004

Cash and cash equivalents, beginning of period
38,489

 
41,837

Cash and cash equivalents, end of period
$
35,149

 
$
49,841

Supplemental and non-cash activities:
 
 
 
Offering costs payable
$
36

 
$

Interest paid during the period
$
15,423

 
$
10,700

Excise taxes paid during the period
$
169

 
$
76

Dividends declared during the period
$
62,708

 
$
43,197

Reinvestment of dividends
$
202

 
$
194

Cost of investments received in the NFIC Acquisition from shares issued (Note 13)
$
(8,046
)
 
$

Shares issued in consideration of NFIC Acquisition (Note 13)
$
8,046

 
$

Debt assumed from NFIC Acquisition (Note 13)
$
42,128

 
$

The accompanying notes are an integral part of these consolidated financial statements.

6



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (75.13%)
 
 
 
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC (2) (3) (4) (13) (16)
Business Services
 
L + 5.00% (1.00% Floor)
 
10/17/2021
 
$
18,195

 
$
18,096

 
$
18,246

 
1.62
%
Achilles Acquisition LLC (2) (3) (4) (5) (13) (15)
Banking, Finance, Insurance & Real Estate
 
L + 6.00% (1.00% Floor)
 
6/6/2023
 
38,657

 
37,586

 
38,209

 
3.40

Advanced Instruments, LLC (2) (3) (4) (5) (13) (15) (16)
Healthcare & Pharmaceuticals
 
L + 5.25% (1.00% Floor)
 
10/31/2022
 
10,448

 
10,253

 
10,416

 
0.93

Alpha Packaging Holdings, Inc. (2) (3) (4) (13)
Containers, Packaging & Glass
 
L + 4.25% (1.00% Floor)
 
5/12/2020
 
2,904

 
2,902

 
2,904

 
0.26

AMS Group HoldCo, LLC (2) (3) (4) (5) (13) (15)
Transportation: Cargo
 
L + 6.00% (1.00% Floor)
 
9/29/2023
 
29,925

 
29,172

 
29,450

 
2.62

Anaren, Inc. (2) (3) (4) (13)
Telecommunications
 
L + 4.50% (1.00% Floor)
 
2/18/2021
 
3,832

 
3,812

 
3,832

 
0.34

Aquilex LLC (2) (3) (13) (16)
Environmental Industries
 
L + 4.00% (1.00% Floor)
 
12/31/2020
 
3,208

 
3,206

 
3,208

 
0.29

Audax AAMP Holdings, Inc. (2) (3) (5)
Durable Consumer Goods
 
L + 7.50% (1.00% Floor)
 
1/31/2018
 
12,487

 
12,483

 
12,441

 
1.11

Brooks Equipment Company, LLC (2) (3) (4) (13)
Construction & Building
 
L + 5.00% (1.00% Floor)
 
8/29/2020
 
2,591

 
2,578

 
2,590

 
0.23

Capstone Logistics Acquisition, Inc. (2) (3) (4) (13) (16)
Transportation: Cargo
 
L + 4.50% (1.00% Floor)
 
10/7/2021
 
19,198

 
19,076

 
19,150

 
1.70

Captive Resources Midco, LLC (2) (3) (4) (5) (13) (15) (16)
Banking, Finance, Insurance & Real Estate
 
L + 5.75% (1.00% Floor)
 
6/30/2020
 
30,900

 
30,616

 
30,900

 
2.75

Central Security Group, Inc. (2) (3) (4) (13) (16)
Consumer Services
 
L + 5.63% (1.00% Floor)
 
10/6/2021
 
39,183

 
38,826

 
39,101

 
3.48

CIP Revolution Holdings, LLC (2) (3) (4) (5) (13) (15)
Media: Advertising, Printing & Publishing
 
L + 6.00% (1.00% Floor)
 
8/19/2021
 
19,105

 
18,943

 
18,977

 
1.69

Colony Hardware Corporation (2) (3) (4) (13)
Construction & Building
 
L + 6.00% (1.00% Floor)
 
10/23/2021
 
22,128

 
21,882

 
22,030

 
1.96

Continuum Managed Services Holdco, LLC (2) (3) (5) (13) (15) (16)
High Tech Industries
 
L + 8.75% (1.00% Floor)
 
6/8/2023
 
22,943

 
22,234

 
23,175

 
2.06

Dade Paper & Bag, LLC (2) (3) (4) (5) (16)
Forest Products & Paper
 
L + 7.50% (1.00% Floor)
 
6/10/2024
 
49,875

 
48,920

 
49,995

 
4.45

Datapipe, Inc. (2) (3) (13)
Telecommunications
 
L + 4.75% (1.00% Floor)
 
3/15/2019
 
9,675

 
9,619

 
9,675

 
0.86

Dent Wizard International Corporation (2) (3) (4) (16)
Automotive
 
L + 4.75% (1.00% Floor)
 
4/7/2020
 
897

 
895

 
896

 
0.08

Derm Growth Partners III, LLC (Dermatology Associates) (2) (3) (4) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 6.50% (1.00% Floor)
 
5/31/2022
 
49,917

 
49,302

 
49,624

 
4.41

DermaRite Industries, LLC (2) (3) (4) (5) (15) (16)
Healthcare & Pharmaceuticals
 
L + 7.00% (1.00% Floor)
 
3/3/2022
 
20,053

 
19,713

 
19,911

 
1.77

Dimensional Dental Management, LLC (2) (3) (5) (12) (15) (16)
Healthcare & Pharmaceuticals
 
L + 6.75% (1.00% Floor)
 
2/12/2021
 
31,780

 
31,106

 
31,625

 
2.81

Direct Travel, Inc. (2) (3) (4) (5) (13) (15)
Hotel, Gaming & Leisure
 
L + 6.50% (1.00% Floor)
 
12/1/2021
 
26,495

 
25,963

 
26,425

 
2.36

EIP Merger Sub, LLC (Evolve IP) (2) (3) (5) (12) (13) (16)
Telecommunications
 
L + 6.25% (1.00% Floor)
 
6/7/2021
 
27,284

 
26,593

 
26,921

 
2.39

Emergency Communications Network, LLC (2) (3) (4) (5) (13) (16)
Telecommunications
 
L + 6.25% (1.00% Floor)
 
6/1/2023
 
24,938

 
24,723

 
24,933

 
2.22

EP Minerals, LLC (2) (3) (4) (13)
Metals & Mining
 
L + 4.50% (1.00% Floor)
 
8/20/2020
 
7,926

 
7,905

 
7,926

 
0.70

FCX Holdings Corp. (2) (3) (4) (13) (16)
Capital Equipment
 
L + 4.50% (1.00% Floor)
 
8/4/2020
 
3,829

 
3,828

 
3,829

 
0.34

Frontline Technologies Holdings, LLC (2) (3) (5) (15)
Software
 
L + 6.50% (1.00% Floor)
 
9/18/2023
 
39,295

 
38,832

 
39,205

 
3.49


7



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (75.13%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
FWR Holding Corporation (2) (3) (4) (5) (13) (15)
Beverage, Food & Tobacco
 
L + 6.00% (1.00% Floor)
 
8/21/2023
 
$
35,666

 
$
34,444

 
$
34,856

 
3.10
%
Global Franchise Group, LLC (2) (3) (4) (5) (13) (15)
Beverage, Food & Tobacco
 
L + 5.75% (1.00% Floor)
 
12/18/2019
 
14,505

 
14,366

 
14,463

 
1.29

Global Software, LLC (2) (3) (4) (13)
High Tech Industries
 
L + 5.25% (1.00% Floor)
 
5/2/2022
 
20,884

 
20,548

 
20,776

 
1.85

Green Energy Partners/Stonewall LLC (2) (3) (4) (13)
Energy: Electricity
 
L + 5.50% (1.00% Floor)
 
11/13/2021
 
20,000

 
19,653

 
18,652

 
1.66

Hummel Station LLC (2) (3) (5) (13) (16)
Energy: Electricity
 
L + 6.00% (1.00% Floor)
 
10/27/2022
 
25,000

 
24,035

 
22,938

 
2.04

Hydrofarm, LLC (2) (5) (13) (16)
Wholesale
 
L + 7.00%
 
5/12/2022
 
18,881

 
18,718

 
18,851

 
1.68

Indra Holdings Corp. (Totes Isotoner) (2) (3) (5) (13)
Non-durable Consumer Goods
 
L + 4.25% (1.00% Floor)
 
5/1/2021
 
18,965

 
17,138

 
11,411

 
1.01

Integro Parent Inc. (2) (3) (13)
Banking, Finance, Insurance & Real Estate
 
L + 5.75% (1.00% Floor)
 
10/30/2022
 
4,914

 
4,814

 
4,806

 
0.43

Legacy.com Inc. (2) (3) (5) (12)
High Tech Industries
 
L + 6.00% (1.00% Floor)
 
3/20/2023
 
17,000

 
16,642

 
17,241

 
1.53

Metrogistics LLC (2) (3) (4) (13)
Transportation: Cargo
 
L + 6.50% (1.00% Floor)
 
9/30/2022
 
16,681

 
16,491

 
16,625

 
1.48

National Technical Systems, Inc. (2) (3) (4) (5) (13) (15) (16)
Aerospace & Defense
 
L + 6.25% (1.00% Floor)
 
6/12/2021
 
26,351

 
26,056

 
25,554

 
2.27

NES Global Talent Finance US LLC (United Kingdom) (2) (3) (4) (8) (13)
Energy: Oil & Gas
 
L + 5.50% (1.00% Floor)
 
10/3/2019
 
13,800

 
13,636

 
13,296

 
1.18

NMI AcquisitionCo, Inc. (2) (3) (5) (15) (17)
High Tech Industries
 
P + 5.75% (2.00% Floor)
 
9/6/2022
 
51,220

 
50,196

 
50,590

 
4.50

OnCourse Learning Corporation (2) (3) (4) (5) (13) (15)
Consumer Services
 
L + 6.50% (1.00% Floor)
 
9/12/2021
 
30,411

 
30,076

 
30,198

 
2.69

Paradigm Acquisition Corp. (2) (3) (4) (13)
Business Services
 
L + 5.00% (1.00% Floor)
 
6/2/2022
 
15,461

 
15,339

 
15,461

 
1.38

Payment Alliance International, Inc. (2) (3) (5) (12) (16)
Business Services
 
L + 6.05% (1.00% Floor)
 
9/15/2021
 
26,544

 
25,952

 
26,287

 
2.34

Pelican Products, Inc. (2) (3) (4) (13)
Containers, Packaging & Glass
 
L + 4.25% (1.00% Floor)
 
4/11/2020
 
3,594

 
3,599

 
3,585

 
0.32

Plano Molding Company, LLC (2) (3) (4) (5) (16)
Hotel, Gaming & Leisure
 
L + 7.50% (1.00% Floor)
 
5/12/2021
 
21,536

 
21,232

 
18,891

 
1.68

PMG Acquisition Corporation (2) (3) (4) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 6.25% (1.00% Floor)
 
5/22/2022
 
27,251

 
26,843

 
27,192

 
2.42

PPT Management Holdings, LLC (2) (3) (4) (5) (13)
Healthcare & Pharmaceuticals
 
L + 6.00% (1.00% Floor)
 
12/16/2022
 
24,813

 
24,626

 
24,582

 
2.19

Prime Risk Partners, Inc. (2) (3) (5) (15)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.75% (1.00% Floor)
 
8/13/2023
 
1,549

 
1,503

 
1,506

 
0.13

Prime Risk Partners, Inc. (2) (3) (5) (12) (15)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.75% (1.00% Floor)
 
8/13/2023
 
19,339

 
18,758

 
18,888

 
1.68

Product Quest Manufacturing, LLC (2) (3) (5) (10) (12)
Containers, Packaging & Glass
 
L + 5.75% (1.00% Floor)
 
9/9/2020
 
33,000

 
32,270

 
22,808

 
2.03

Product Quest Manufacturing, LLC (2) (3) (5) (15) (16)
Containers, Packaging & Glass
 
L + 6.75% (3.25% Floor)
 
3/31/2019
 
1,192

 
1,192

 
1,192

 
0.11

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) (2) (3) (4) (5)
Wholesale
 
L + 4.50% (1.00% Floor)
 
1/28/2020
 
14,949

 
14,260

 
13,771

 
1.22

PSC Industrial Holdings Corp (2) (3) (4) (13) (16)
Environmental Industries
 
L + 4.75% (1.00% Floor)
 
12/5/2020
 
14,588

 
14,378

 
14,588

 
1.30

PT Intermediate Holdings III, LLC (Parts Town) (2) (3) (4) (5) (13) (15)
Wholesale
 
L + 6.50% (1.00% Floor)
 
6/23/2022
 
22,700

 
22,498

 
22,642

 
2.01


8



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (75.13%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
QW Holding Corporation (Quala) (2) (3) (4) (5) (13)
Environmental Industries
 
L + 6.75% (1.00% Floor)
 
8/31/2022
 
$
36,641

 
$
35,819

 
$
35,989

 
3.20
%
Reliant Pro Rehab, LLC (2) (3) (5) (12)
Healthcare & Pharmaceuticals
 
L + 10.00% (1.00% Floor)
 
12/29/2017
 
24,625

 
24,555

 
24,625

 
2.19

SolAero Technologies Corp. (2) (3) (4) (5) (16)
Telecommunications
 
L + 5.25% (1.00% Floor)
 
12/10/2020
 
25,312

 
24,501

 
23,216

 
2.05

Superior Health Linens, LLC (2) (3) (4) (5) (13) (15) (16)
Business Services
 
L + 6.50% (1.00% Floor)
 
9/30/2021
 
21,192

 
20,902

 
20,960

 
1.86

Surgical Information Systems, LLC (2) (3) (4) (5) (12) (13) (16)
High Tech Industries
 
L + 5.00% (1.00% Floor)
 
4/24/2023
 
30,000

 
29,718

 
29,991

 
2.67

T2 Systems Canada, Inc. (2) (3) (4)
Transportation: Consumer
 
L + 6.75% (1.00% Floor)
 
9/28/2022
 
4,020

 
3,933

 
3,985

 
2.11

T2 Systems, Inc. (2) (3) (4) (5) (13) (15)
Transportation: Consumer
 
L + 6.75% (1.00% Floor)
 
9/28/2022
 
32,728

 
32,011

 
32,429

 
1.13

The Hilb Group, LLC (2) (3) (5) (12) (15)
Banking, Finance, Insurance & Real Estate
 
L + 6.00% (1.00% Floor)
 
6/24/2021
 
32,673

 
32,157

 
32,281

 
2.87

The SI Organization, Inc. (2) (3) (4) (5) (13)
Aerospace & Defense
 
L + 4.75% (1.00% Floor)
 
11/23/2019
 
14,339

 
14,350

 
14,339

 
1.28

The Topps Company, Inc. (2) (3) (4) (13)
Non-durable Consumer Goods
 
L + 6.00% (1.25% Floor)
 
10/2/2020
 
23,192

 
22,986

 
22,413

 
1.99

Truckpro, LLC. (2) (3) (4) (13) (16)
Automotive
 
L + 5.00% (1.00% Floor)
 
8/6/2018
 
8,917

 
8,904

 
8,877

 
0.79

Tweddle Group, Inc. (2) (3) (4) (13)
Media: Advertising, Printing & Publishing
 
L + 6.00% (1.00% Floor)
 
10/24/2022
 
7,453

 
7,362

 
7,502

 
0.67

Vetcor Professional Practices, LLC (2) (3) (4) (5) (13) (15)
Consumer Services
 
L + 6.00% (1.00% Floor)
 
4/20/2021
 
35,784

 
35,387

 
36,036

 
3.21

Vistage Worldwide Inc. (2) (3) (4) (13) (16)
Business Services
 
L + 5.50% (1.00% Floor)
 
8/19/2021
 
33,133

 
32,960

 
33,133

 
2.95

VRC Companies, LLC (2) (3) (4) (5) (13) (15) (16)
Business Services
 
L + 6.50% (1.00% Floor)
 
3/31/2023
 
32,694

 
31,983

 
32,240

 
2.86

W/S Packaging Group Inc. (2) (3) (4) (16)
Containers, Packaging & Glass
 
L + 5.00% (1.00% Floor)
 
8/9/2019
 
4,015

 
3,881

 
3,583

 
0.32

Watchfire Enterprises, Inc. (2) (3) (13)
Media: Advertising, Printing & Publishing
 
L + 4.00% (1.00% Floor)
 
10/2/2020
 
1,362

 
1,350

 
1,362

 
0.12

Winchester Electronics Corporation (2) (3) (4) (5) (13) (15)
Capital Equipment
 
L + 6.50% (1.00% Floor)
 
6/30/2022
 
31,688

 
31,412

 
32,021

 
2.84

Zest Holdings, LLC (2) (3) (4) (13) (16)
Durable Consumer Goods
 
L + 4.25% (1.00% Floor)
 
8/16/2023
 
3,440

 
3,432

 
3,465

 
0.31

First Lien Debt Total
 
 
 
 
 
 
 
 
$
1,485,930

 
$
1,475,691

 
131.26
%
Second Lien Debt (13.69%)
 
 
 
 
 
 
 
 
 

 
 

 
 
Acrisure, LLC (2) (3) (5) (15)
Banking, Finance, Insurance & Real Estate
 
L + 9.25% (1.00% Floor)
 
11/22/2024
 
$
33,750

 
$
32,884

 
$
33,228

 
2.96
%
AIM Group USA Inc. (2) (3) (4) (5) (13)
Aerospace & Defense
 
L + 9.00% (1.00% Floor)
 
8/2/2022
 
23,000

 
22,728

 
22,830

 
2.03

AmeriLife Group, LLC (2) (3) (5) (13) (16)
Banking, Finance, Insurance & Real Estate
 
L + 8.75% (1.00% Floor)
 
1/10/2023
 
22,000

 
21,638

 
21,723

 
1.94

Argon Medical Devices, Inc. (2) (3) (4) (5) (16)
Healthcare & Pharmaceuticals
 
L + 9.50% (1.00% Floor)
 
6/23/2022
 
25,000

 
24,431

 
25,000

 
2.23

Berlin Packaging L.L.C. (2) (3) (5) (13) (16)
Containers, Packaging & Glass
 
L + 6.75% (1.00% Floor)
 
10/1/2022
 
3,500

 
3,487

 
3,500

 
0.31

Confie Seguros Holding II Co. (2) (3) (5) (13) (16)
Banking, Finance, Insurance & Real Estate
 
L + 10.00% (1.25% Floor)
 
5/8/2019
 
9,000

 
8,954

 
8,798

 
0.78

Drew Marine Group Inc. (2) (3) (4) (5) (13) (16)
Chemicals, Plastics & Rubber
 
L + 7.00% (1.00% Floor)
 
5/19/2021
 
12,500

 
12,483

 
12,469

 
1.11


9



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
Second Lien Debt (13.69%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
Genex Holdings, Inc. (2) (3) (5) (16)
Banking, Finance, Insurance & Real Estate
 
L + 7.75% (1.00% Floor)
 
5/30/2022
 
$
8,990

 
$
8,913

 
$
8,910

 
0.79
%
Institutional Shareholder Services Inc. (2) (3) (5) (13) (16)
Banking, Finance, Insurance & Real Estate
 
L + 8.50% (1.00% Floor)
 
4/29/2022
 
12,500

 
12,414

 
12,500

 
1.11

Jazz Acquisition, Inc. (Wencor) (2) (3) (5) (13)
Aerospace & Defense
 
L + 6.75% (1.00% Floor)
 
6/19/2022
 
7,500

 
7,406

 
7,088

 
0.63

Pexco LLC (2) (3) (5)
Chemicals, Plastics & Rubber
 
L + 8.00% (1.00% Floor)
 
5/8/2025
 
20,000

 
19,814

 
20,346

 
1.81

Power Stop, LLC (5) (9)
Automotive
 
11.00%
 
5/29/2022
 
10,000

 
9,845

 
9,920

 
0.88

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) (2) (3) (5)
Wholesale
 
L + 8.50% (1.00% Floor)
 
7/28/2020
 
3,000

 
2,965

 
2,337

 
0.21

Q International Courier, LLC (2) (3) (5)
Transportation: Cargo
 
L + 8.25% (1.00% Floor)
 
9/19/2025
 
18,750

 
18,376

 
18,546

 
1.65

Reladyne, Inc. (2) (3) (4) (13)
Wholesale
 
L + 9.50% (1.00% Floor)
 
1/21/2023
 
5,000

 
4,880

 
4,975

 
0.44

Rough Country, LLC (2) (3) (5) (13) (16)
Durable Consumer Goods
 
L + 8.50% (1.00% Floor)
 
11/25/2023
 
42,500

 
41,275

 
42,254

 
3.76

Superion, LLC (fka Ramundsen Public Sector, LLC) (2) (3) (13)
Sovereign & Public Finance
 
L + 8.50% (1.00% Floor)
 
1/31/2025
 
1,800

 
1,784

 
1,824

 
0.16

Vantage Specialty Chemicals, Inc. (2) (4) (17)
Chemicals, Plastics & Rubber
 
P + 7.75%
 
2/5/2022
 
500

 
504

 
500

 
0.04

Watchfire Enterprises, Inc. (2) (3) (5) (13)
Media: Advertising, Printing & Publishing
 
L + 8.00% (1.00% Floor)
 
10/2/2021
 
7,000

 
6,939

 
7,000

 
0.62

Zywave, Inc. (2) (3) (5)
High Tech Industries
 
L + 9.00% (1.00% Floor)
 
11/17/2023
 
4,950

 
4,884

 
5,035

 
0.45

Second Lien Debt Total
 
 
 
 
 
 
 
 
$
266,604

 
$
268,783

 
23.91
%
Investments—non-controlled/non-affiliated (1)
Industry
 
Maturity Date
 
Par Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
Structured Finance Obligations (0.13%) (5) (8) (11)
 
 
 
 
 
 
 
 
 
 
 
1776 CLO I, Ltd., Subordinated Notes
Structured Finance
 
5/8/2020
 
$
11,750

 
$
6,436

 
$
2,585

 
0.23
%
Structured Finance Obligations Total
 
 
 
 
 
 
$
6,436

 
$
2,585

 
0.23
%

10



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Shares/ Units
 
Cost
 
Fair
Value 
(7)
 
Percentage of Net Assets
Equity Investments (0.69%) (5)
 
 
 
 
 
 
 
 
 
CIP Revolution Holdings, LLC
Media: Advertising, Printing & Publishing
 
30,000

 
$
300

 
$
388

 
0.04
%
Dade Paper & Bag, LLC
Forest Products & Paper
 
1,500,000

 
1,500

 
2,169

 
0.19

DecoPac, Inc.
Non-durable Consumer Goods
 
1,500,000

 
1,500

 
1,500

 
0.13

Derm Growth Partners III, LLC (Dermatology Associates)
Healthcare & Pharmaceuticals
 
1,000,000

 
1,000

 
1,573

 
0.14

GS Holdco LLC (Global Software, LLC)
High Tech Industries
 
1,000,000

 
1,001

 
1,506

 
0.13

Legacy.com Inc.
High Tech Industries
 
1,500,000

 
1,500

 
1,679

 
0.15

Power Stop Intermediate Holdings, LLC
Automotive
 
7,150

 
715

 
1,139

 
0.10

Rough Country, LLC
Durable Consumer Goods
 
754,775

 
755

 
850

 
0.08

T2 Systems Parent Corporation
Transportation: Consumer
 
555,556

 
556

 
553

 
0.05

THG Acquisition, LLC (The Hilb Group, LLC)
Banking, Finance, Insurance & Real Estate
 
1,500,000

 
1,500

 
2,195

 
0.20

Equity Investments Total
 
 
 
 
$
10,327

 
$
13,552

 
1.21
%
Total investments—non-controlled/non-affiliated
 
 
 
 
$
1,769,297

 
$
1,760,611

 
156.61
%
Investments—non-controlled/affiliated (5) 18)
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (0.76%)
 
 
 
 
 
 
 
 
 
 
 
 
 
TwentyEighty, Inc.—Revolver (2) (3) (15)
Business Services
 
L + 8.00% (1.00% Floor)
 
3/21/2020
 
$

 
$
(6
)
 
$
(9
)
 
%
TwentyEighty, Inc.—(Term A Loans) (2) (3)
Business Services
 
L + 3.50% (1.00% Floor) cash, 4.50% PIK
 
3/21/2020
 
3,859

 
3,839

 
3,735

 
0.33

TwentyEighty, Inc.—(Term B Loans)
Business Services
 
1.00% cash, 7.00% PIK
 
3/21/2020
 
6,598

 
6,360

 
6,149

 
0.55

TwentyEighty, Inc.—(Term C Loans)
Business Services
 
0.25% cash, 8.75% PIK
 
3/21/2020
 
6,380

 
5,742

 
5,084

 
0.45

First Lien Debt Total
 
 
 
 
 
 
 
 
$
15,935

 
$
14,959

 
1.33
%
Investments—non-controlled/affiliated (5) (18)
Industry
 
Shares/ Units
 
Cost
 
Fair
Value 
(7)
 
Percentage of Net Assets
Equity Investments (0.00%)
 
 
 
 
 
 
 
 
 
TwentyEighty Investors LLC
Business Services
 
69,786

 
$

 
$

 
%
Equity Investments Total
 
 
 
 
$

 
$

 
%
Total investments—non-controlled/affiliated
 
 
 
 
$
15,935

 
$
14,959

 
1.33
%
Investments—controlled/affiliated
Industry
 
Interest Rate (2)
 
Maturity Date
 
Par Amount/ LLC Interest
 
Cost
 
Fair Value (7)
 
Percentage of Net Assets
Investment Fund (9.60%) (8)
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Credit Fund, LLC, Mezzanine Loan (2) (5) (9) (14)
Investment Fund
 
L + 9.00%

 
6/24/2018
 
$
112,300

 
$
112,300

 
$
112,300

 
9.99
%
Middle Market Credit Fund, LLC, Subordinated Loan and Member’s Interest  (5) (14)
Investment Fund
 
0.001

 
3/1/2021
 
74,501

 
74,501

 
76,247

 
6.78

Investment Fund Total
 
 
 
 
 
 
 
 
$
186,801

 
$
188,547

 
16.77
%
Total investments—controlled/affiliated
 
 
 
 
 
 
 
 
$
186,801

 
$
188,547

 
16.77
%
Total investments
 
 
 
 
 
 
 
 
$
1,972,033

 
$
1,964,117

 
174.71
%
 

11



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

(1)
Unless otherwise indicated, issuers of debt and equity investments held by TCG BDC, Inc. (together with its consolidated subsidiaries, “we,” “us,” “our,” “TCG BDC” or the “Company”) are domiciled in the United States and issuers of structured finance obligations are domiciled in the Cayman Islands. Under the Investment Company Act of 1940, as amended (together with the rules and regulations promulgated thereunder, the “Investment Company Act”), the Company would be deemed to “control” a portfolio company if the Company owned more than 25% of its outstanding voting securities and/or held the power to exercise control over the management or policies of the portfolio company. As of September 30, 2017, the Company does not “control” any of these portfolio companies. Under the Investment Company Act, the Company would be deemed an “affiliated person” of a portfolio company if the Company owns 5% or more of the portfolio company’s outstanding voting securities. As of September 30, 2017, the Company is not an “affiliated person” of any of these portfolio companies.
(2)
Variable rate loans to the portfolio companies bear interest at a rate that may be determined by reference to either LIBOR (“L”) or an alternate base rate (commonly based on the Federal Funds Rate or the U.S. Prime Rate), which generally resets quarterly. For each such loan, the Company has provided the interest rate in effect as of September 30, 2017. As of September 30, 2017, all of our LIBOR loans were indexed to the 90-day LIBOR rate at 1.33%, except for those loans as indicated in Note 16 below.
(3)
Loan includes interest rate floor feature.
(4)
Denotes that all or a portion of the assets are owned by the Company’s wholly owned subsidiary, TCG BDC SPV LLC (the “SPV”). The SPV has entered into a senior secured revolving credit facility (as amended, the “SPV Credit Facility”). The lenders of the SPV Credit Facility have a first lien security interest in substantially all of the assets of the SPV (see Note 6, Borrowings). Accordingly, such assets are not available to creditors of the Company or the 2015-1 Issuer.
(5)
Denotes that all or a portion of the assets are owned by the Company. The Company has entered into a senior secured revolving credit facility (as amended, the “Credit Facility” and, together with the SPV Credit Facility, the “Facilities”). The lenders of the Credit Facility have a first lien security interest in substantially all of the portfolio investments held by the Company (see Note 6, Borrowings). Accordingly, such assets are not available to creditors of the SPV or Carlyle GMS Finance MM CLO 2015-1 LLC (the “2015-1 Issuer”).
(6)
Amortized cost represents original cost, including origination fees and upfront fees received that are deemed to be an adjustment to yield, adjusted for the accretion/amortization of discounts/premiums, as applicable, on debt investments using the effective interest method. Equity tranche collateralized loan obligation (“CLO”) fund investments, which are referred to as “structured finance obligations”, are recorded at amortized cost using the effective interest method.
(7)
Fair value is determined in good faith by or under the direction of the Board of Directors of the Company (see Note 2, Significant Accounting Policies, and Note 3, Fair Value Measurements), pursuant to the Company’s valuation policy. The fair value of all first lien and second lien debt investments, structured finance obligations, equity investments and the investment fund mezzanine loan was determined using significant unobservable inputs.
(8)
The Company has determined the indicated investments are non-qualifying assets under Section 55(a) of the Investment Company Act. Under the Investment Company Act, the Company may not acquire any non-qualifying assets unless, at the time such acquisition is made, qualifying assets represent at least 70% of the Company’s total assets.
(9)
Represents a corporate mezzanine loan, which is subordinated to senior secured term loans of the portfolio company/investment fund.
(10)
Loan was on non-accrual status as of September 30, 2017.
(11)
As of September 30, 2017, the Company has a greater than 25% but less than 50% equity or subordinated notes ownership interest in certain structured finance obligations. These investments have governing documents that preclude the Company from controlling management of the entity and therefore the Company has determined that the issuer of the investment is not a controlled affiliate or a non-controlled affiliate because the investments are not “voting securities”.
(12)
In addition to the interest earned based on the stated interest rate of this loan, which is the amount reflected in this schedule, the Company is entitled to receive additional interest as a result of an agreement among lenders as follows: Dimensional Dental Management, LLC (4.46%), EIP Merger Sub, LLC (Evolve IP) (3.98%), Legacy.com Inc. (4.13%), Payment Alliance International Inc. (2.70%), Prime Risk Partners, Inc. (3.33%), Product Quest Manufacturing, LLC (3.54%), Reliant Pro Rehab, LLC (nil), Surgical Information Systems, LLC (1.01%) and The Hilb Group, LLC (3.40%). Pursuant to the agreement among lenders in respect of this loan, this investment represents a first lien/last out loan, which has a secondary priority behind the first lien/first out loan with respect to principal, interest and other payments.
(13)
Denotes that all or a portion of the assets are owned by the 2015-1 Issuer and secure the notes issued in connection with a $400 million term debt securitization completed by the Company on June 26, 2015 (see Note 7, 2015-1 Notes). Accordingly, such assets are not available to the creditors of the SPV or the Company.
(14)
Under the Investment Company Act, the Company is deemed to be an “affiliated person” of and “control” this investment fund because the Company owns more than 25% of the investment fund’s outstanding voting securities and/or has the power to exercise control over management or policies of such investment fund. See Note 5, Middle Market Credit Fund, LLC, for more details. 
(15)
As of September 30, 2017, the Company had the following unfunded commitments to fund delayed draw and revolving senior secured loans:

12



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated
Type
 
Unused Fee
 
Par/ Principal Amount
 
Fair Value
First and Second Lien Debt—unfunded delayed draw and revolving term loans commitments
 
 
 
 
Achilles Acquisition LLC
Delayed Draw
 
1.00
%
 
$
4,392

 
$
(46
)
Acrisure, LLC
Delayed Draw
 
1.50

 
11,250

 
(131
)
Advanced Instruments, LLC
Revolver
 
0.50

 
1,167

 
(3
)
AMS Group HoldCo, LLC
Delayed Draw
 
1.00

 
5,491

 
(69
)
AMS Group HoldCo, LLC
Revolver
 
0.50

 
2,315

 
(29
)
Captive Resources Midco, LLC
Delayed Draw
 
1.50

 
3,571

 

Captive Resources Midco, LLC
Revolver
 
0.50

 
2,143

 

CIP Revolution Holdings, LLC
Revolver
 
0.50

 
1,331

 
(8
)
Continuum Managed Services HoldCo, LLC
Delayed Draw
 
1.00

 
1,917

 
16

Continuum Managed Services HoldCo, LLC
Revolver
 
0.50

 
2,500

 
21

DermaRite Industries, LLC
Revolver
 
0.50

 
3,848

 
(23
)
Derm Growth Partners III, LLC (Dermatology Associates)
Delayed Draw
 
1.00

 
869

 
(5
)
Derm Growth Partners III, LLC (Dermatology Associates)
Revolver
 
0.50

 
2,420

 
(13
)
Dimensional Dental Management, LLC
Delayed Draw
 
1.00

 
11,478

 
(41
)
Direct Travel, Inc.
Delayed Draw
 
1.00

 
7,309

 
(15
)
Frontline Technologies Holdings, LLC
Delayed Draw
 
1.00

 
7,705

 
(15
)
FWR Holding Corporation
Delayed Draw
 
1.00

 
11,111

 
(180
)
FWR Holding Corporation
Revolver
 
0.50

 
3,221

 
(52
)
Global Franchise Group, LLC
Revolver
 
0.50

 
495

 
(1
)
National Technical Systems, Inc.
Revolver
 
0.50

 
2,500

 
(85
)
NMI AcquisitionCo, Inc.
Revolver
 
0.50

 
1,280

 
(15
)
OnCourse Learning Corporation
Revolver
 
0.50

 
954

 
(6
)
PMG Acquisition Corporation
Revolver
 
0.50

 
2,356

 
(5
)
Prime Risk Partners, Inc.
Delayed Draw
 
0.50

 
863

 
(15
)
Prime Risk Partners, Inc.
Delayed Draw
 
0.50

 
10,744

 
(161
)
Product Quest Manufacturing, LLC
Revolver
 
0.50

 
4,766

 

PT Intermediate Holdings III, LLC (Parts Town)
Revolver
 
0.50

 
500

 
(1
)
Superior Health Linens, LLC
Revolver
 
0.50

 
2,617

 
(25
)
T2 Systems, Inc.
Revolver
 
0.50

 
1,760

 
(15
)
The Hilb Group, LLC
Delayed Draw
 
1.00

 
9,543

 
(89
)
TwentyEighty, Inc. (fka Miller Heiman, Inc.)
Revolver
 
0.50

 
607

 
(9
)
Vetcor Professional Practices, LLC
Delayed Draw
 
1.00

 
3,175

 
20

VRC Companies, LLC
Delayed Draw
 
0.75

 
1,805

 
(23
)
VRC Companies, LLC
Revolver
 
0.50

 
903

 
(12
)
Winchester Electronics Corporation
Delayed Draw
 
1.00

 
2,917

 
28

Total unfunded commitments
 
 
 
 
$
131,823

 
$
(1,007
)
 
(16)
As of September 30, 2017, this LIBOR loan was indexed to the 30-day LIBOR rate at 1.23%.
(17)
As of September 30, 2017, this loan was indexed to the U.S. Prime Rate at 4.25%.
(18)
Under the Investment Company Act, the Company is deemed an “affiliated person” of this portfolio company because the Company owns 5% or more of the portfolio company’s outstanding voting securities.


13



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2017
(dollar amounts in thousands)
(unaudited)

As of September 30, 2017, investments at fair value consisted of the following:
Type
Amortized Cost
 
Fair Value
 
% of Fair Value
First Lien Debt (excluding First Lien/Last Out)
$
1,264,114

 
$
1,259,983

 
64.15
%
First Lien/Last Out Unitranche
237,751

 
230,667

 
11.74

Second Lien Debt
266,604

 
268,783

 
13.69

Structured Finance Obligations
6,436

 
2,585

 
0.13

Equity Investments
10,327

 
13,552

 
0.69

Investment Fund
186,801

 
188,547

 
9.60

Total
$
1,972,033

 
$
1,964,117

 
100.00
%
The rate type of debt investments at fair value as of September 30, 2017 was as follows:
Rate Type
Amortized Cost
 
Fair Value
 
% of Fair Value of First and Second Lien Debt
Floating Rate
$
1,746,522

 
$
1,738,280

 
98.80
%
Fixed Rate
21,947

 
21,153

 
1.20

Total
$
1,768,469

 
$
1,759,433

 
100.00
%

The industry composition of investments at fair value as of September 30, 2017 was as follows:
Industry
Amortized Cost
 
Fair Value
 
% of Fair Value
Aerospace & Defense
$
70,540

 
$
69,811

 
3.55
%
Automotive
20,359

 
20,832

 
1.06

Banking, Finance, Insurance & Real Estate
211,737

 
213,944

 
10.89

Beverage, Food & Tobacco
48,810

 
49,319

 
2.51

Business Services
161,167

 
161,286

 
8.21

Capital Equipment
35,240

 
35,850

 
1.83

Chemicals, Plastics & Rubber
32,801

 
33,315

 
1.70

Construction & Building
24,460

 
24,620

 
1.25

Consumer Services
104,289

 
105,335

 
5.36

Containers, Packaging & Glass
47,331

 
37,572

 
1.91

Durable Consumer Goods
57,945

 
59,010

 
3.00

Energy: Electricity
43,688

 
41,590

 
2.12

Energy: Oil & Gas
13,636

 
13,296

 
0.68

Environmental Industries
53,403

 
53,785

 
2.74

Forest Products & Paper
50,420

 
52,164

 
2.66

Healthcare & Pharmaceuticals
211,829

 
214,548

 
10.92

High Tech Industries
146,723

 
149,993

 
7.64

Hotel, Gaming & Leisure
47,195

 
45,316

 
2.31

Investment Fund
186,801

 
188,547

 
9.60