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 June 30, 2018
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  ☐    No  ☐
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
 
x
  
Accelerated filer
 
o
 
 
 
 
Non-accelerated filer
 
o  (Do not check if a smaller reporting company)
  
Smaller reporting company
 
o
 
 
 
 
Emerging Growth Company
 
o
  
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  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 August 7, 2018
Common stock, $0.01 par value
62,568,651





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)
 
June 30, 2018
 
December 31, 2017
ASSETS
(unaudited)
 
 
Investments, at fair value
 
 
 
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,746,623 and $1,782,488, respectively)
$
1,722,393

 
$
1,779,584

Investments—non-controlled/affiliated, at fair value (amortized cost of $15,940 and $16,273, respectively)
16,394

 
15,431

Investments—controlled/affiliated, at fair value (amortized cost of $208,501 and $172,251, respectively)
208,005

 
172,516

Total investments, at fair value (amortized cost of $1,971,064 and $1,971,012, respectively)
1,946,792

 
1,967,531

Cash and cash equivalents
27,928

 
32,039

Receivable for investment sold
40,077

 
7,022

Deferred financing costs
3,246

 
3,626

Interest receivable from non-controlled/non-affiliated investments
6,150

 
5,066

Interest receivable from non-controlled/affiliated investments
8

 
42

Interest and dividend receivable from controlled/affiliated investments
6,442

 
5,981

Prepaid expenses and other assets
525

 
76

Total assets
$
2,031,168

 
$
2,021,383

LIABILITIES
 
 
 
Secured borrowings (Note 6)
$
585,105

 
$
562,893

2015-1 Notes payable, net of unamortized debt issuance costs of $1,846 and $1,947, respectively (Note 7)
271,154

 
271,053

Payable for investments purchased
8,780

 
9,469

Due to Investment Adviser
134

 
69

Interest and credit facility fees payable (Notes 6 and 7)
6,166

 
5,353

Dividend payable (Note 9)
23,151

 
30,481

Base management and incentive fees payable (Note 4)
13,252

 
13,098

Administrative service fees payable (Note 4)
113

 
95

Other accrued expenses and liabilities
1,501

 
1,568

Total liabilities
909,356

 
894,079

Commitments and contingencies (Notes 8 and 11)
 
 
 
NET ASSETS
 
 
 
Common stock, $0.01 par value; 200,000,000 shares authorized; 62,568,651 shares and 62,207,603 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively
626

 
622

Paid-in capital in excess of par value
1,179,432

 
1,172,807

Offering costs
(1,633
)
 
(1,618
)
Accumulated net investment income (loss), net of cumulative dividends of $268,555 and $222,254 at June 30, 2018 and December 31, 2017, respectively
9,561

 
2,522

Accumulated net realized gain (loss)
(41,902
)
 
(43,548
)
Accumulated net unrealized appreciation (depreciation)
(24,272
)
 
(3,481
)
Total net assets
$
1,121,812

 
$
1,127,304

NET ASSETS PER SHARE
$
17.93

 
$
18.12

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 six month periods ended
 
June 30, 2018
 
June 30, 2017
 
June 30, 2018
 
June 30, 2017
Investment income:
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
41,717

 
$
30,526

 
$
80,986

 
$
58,880

Other income
3,590

 
4,046

 
4,485

 
6,582

Total investment income from non-controlled/non-affiliated investments
45,307

 
34,572

 
85,471

 
65,462

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
447

 

 
885

 

Total investment income from non-controlled/affiliated investments
447

 

 
885

 

From controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
3,198

 
2,372

 
5,829

 
4,321

Dividend income
3,500

 
1,800

 
7,750

 
3,060

Total investment income from controlled/affiliated investments
6,698

 
4,172

 
13,579

 
7,381

Total investment income
52,452

 
38,744

 
99,935

 
72,843

Expenses:
 
 
 
 
 
 
 
Base management fees (Note 4)
7,266

 
5,657

 
14,488

 
10,782

Incentive fees (Note 4)
5,984

 
5,361

 
11,314

 
10,138

Professional fees
959

 
1,153

 
1,721

 
1,596

Administrative service fees (Note 4)
185

 
165

 
371

 
338

Interest expense (Notes 6 and 7)
8,709

 
5,738

 
16,524

 
10,772

Credit facility fees (Note 6)
581

 
529

 
1,106

 
1,032

Directors’ fees and expenses
93

 
131

 
191

 
234

Other general and administrative
435

 
448

 
840

 
821

Total expenses
24,212

 
19,182

 
46,555

 
35,713

Waiver of base management fees (Note 4)

 
1,886

 

 
3,594

Net expenses
24,212

 
17,296

 
46,555

 
32,119

Net investment income (loss) before taxes
28,240

 
21,448

 
53,380

 
40,724

Excise tax expense
30

 

 
40

 
169

Net investment income (loss)
28,210

 
21,448

 
53,340

 
40,555

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
 
 
 
 
 
 
 
Net realized gain (loss) from:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
1,775

 
(202
)
 
1,646

 
(7,896
)
Net change in unrealized appreciation (depreciation):
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(15,282
)
 
(5,879
)
 
(21,326
)
 
(1,423
)
Non-controlled/affiliated investments
(136
)
 

 
1,296

 

Controlled/affiliated investments
(1,461
)
 
134

 
(761
)
 
438

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments
(15,104
)
 
(5,947
)
 
(19,145
)
 
(8,881
)
Net increase (decrease) in net assets resulting from operations
$
13,106

 
$
15,501

 
$
34,195

 
$
31,674

Basic and diluted earnings per common share (Note 9)
$
0.21

 
$
0.34

 
$
0.55

 
$
0.72

Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)
62,568,651

 
45,977,943

 
62,534,740

 
43,854,102

Dividends declared per common share (Note 9)
$
0.37

 
$
0.37

 
$
0.74

 
$
0.78

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 six month periods ended
 
June 30, 2018
 
June 30, 2017
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income (loss)
$
53,340

 
$
40,555

Net realized gain (loss) on investments
1,646

 
(7,896
)
Net change in unrealized appreciation (depreciation) on investments
(20,791
)
 
(985
)
Net increase (decrease) in net assets resulting from operations
34,195

 
31,674

Capital transactions:
 
 
 
Common stock issued, net of offering and underwriting costs
(15
)
 
357,550

Reinvestment of dividends
6,629

 
202

Dividends declared (Note 12)
(46,301
)
 
(39,820
)
Net increase (decrease) in net assets resulting from capital share transactions
(39,687
)
 
317,932

Net increase (decrease) in net assets
(5,492
)
 
349,606

Net assets at beginning of period
1,127,304

 
764,137

Net assets at end of period
$
1,121,812

 
$
1,113,743

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 six month periods ended
 
June 30, 2018
 
June 30, 2017
Cash flows from operating activities:
 
 
 
Net increase (decrease) in net assets resulting from operations
$
34,195

 
$
31,674

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
555

 
459

Net accretion of discount on investments
(6,308
)
 
(6,571
)
Paid-in-kind interest
(429
)
 

Net realized (gain) loss on investments
(1,646
)
 
7,896

Net change in unrealized (appreciation) depreciation on investments
20,791

 
985

Cost of investments purchased and change in payable for investments purchased
(397,804
)
 
(696,931
)
Proceeds from sales and repayments of investments and change in receivable for investments sold
372,391

 
472,827

Changes in operating assets:
 
 
 
Interest receivable
(851
)
 
(2,072
)
Dividend receivable
(660
)
 
(475
)
Prepaid expenses and other assets
(449
)
 
(104
)
Changes in operating liabilities:
 
 
 
Due to Investment Adviser
65

 
(97
)
Interest and credit facility fees payable
813

 
231

Base management and incentive fees payable
154

 
975

Administrative service fees payable
18

 
(17
)
Other accrued expenses and liabilities
(67
)
 
269

Net cash provided by (used in) operating activities
20,768

 
(190,951
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock, net of offering and underwriting costs
(15
)
 
350,990

Offering costs from issuance of common stock

 
(358
)
Borrowings on SPV Credit Facility and Credit Facility
423,050

 
306,000

Repayments of SPV Credit Facility and Credit Facility
(400,838
)
 
(396,288
)
Repayments of Debt Assumed from NFIC Acquisition

 
(42,128
)
Debt issuance costs paid
(74
)
 
(679
)
Dividends paid in cash
(47,002
)
 
(36,916
)
Net cash provided by (used in) financing activities
(24,879
)
 
180,621

Net increase (decrease) in cash and cash equivalents
(4,111
)
 
(10,330
)
Cash and cash equivalents, beginning of period
32,039

 
38,489

Cash and cash equivalents, end of period
$
27,928

 
$
28,159

Supplemental disclosures:
 
 
 
Offering costs payable
$

 
$
1,128

Interest paid during the period
$
15,710

 
$
10,512

Taxes, including excise tax, paid during the period
$
105

 
$

Dividends declared during the period
$
46,301

 
$
39,820

Reinvestment of dividends
$
6,629

 
$
202

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 June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (79.06%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Achilles Acquisition LLC (2) (3) (4) (5) (13) (15)
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.09%
 
6/6/2017
 
6/6/2023
 
$
46,950

 
$
45,863

 
$
46,740

 
4.17
 %
Advanced Instruments, LLC (2) (3) (4) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 5.25%
 
7.25%
 
11/1/2016
 
10/31/2022
 
20,067

 
19,794

 
19,951

 
1.78

Aero Operating, LLC (Dejana Industries, Inc.) (2) (3) (4) (5) (13) (15)
Business Services
 
L + 7.25%
 
9.23%
 
1/5/2018
 
12/29/2022
 
2,814

 
2,784

 
2,832

 
0.25

Alpha Packaging Holdings, Inc. (2) (3) (4) (13)
Containers, Packaging & Glass
 
L + 4.25%
 
6.58%
 
6/26/2015
 
5/12/2020
 
2,881

 
2,880

 
2,881

 
0.26

Alpine SG, LLC (2) (3) (13)
High Tech Industries
 
L + 6.00%
 
8.09%
 
2/2/2018
 
11/16/2022
 
3,405

 
3,372

 
3,411

 
0.30

AMS Group HoldCo, LLC (2) (3) (4) (5) (13) (15)
Transportation: Cargo
 
L + 6.00%
 
8.33%
 
9/29/2017
 
9/29/2023
 
31,604

 
30,931

 
31,319

 
2.79

Analogic Corporation (2) (3) (4) (13) (15)
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.08%
 
6/22/2018
 
6/22/2024
 
35,337

 
34,565

 
34,853

 
3.11

BeyondTrust Software, Inc. (2) (3) (4) (13)
Software
 
L + 6.25%
 
8.61%
 
11/21/2017
 
11/21/2023
 
16,915

 
16,689

 
17,032

 
1.52

Brooks Equipment Company, LLC (2) (3) (4) (13)
Construction & Building
 
L + 5.00%
 
7.31%
 
6/26/2015
 
8/29/2020
 
2,502

 
2,492

 
2,502

 
0.22

Capstone Logistics Acquisition, Inc. (2) (3) (4) (13)
Transportation: Cargo
 
L + 4.50%
 
6.59%
 
6/26/2015
 
10/7/2021
 
14,306

 
14,226

 
14,190

 
1.26

Captive Resources Midco, LLC (2) (3) (4) (5) (13) (15)
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.09%
 
6/30/2015
 
12/18/2021
 
30,382

 
30,105

 
30,248

 
2.70

Central Security Group, Inc. (2) (3) (4) (13)
Consumer Services
 
L + 5.63%
 
7.72%
 
6/26/2015
 
10/6/2021
 
38,806

 
38,497

 
38,806

 
3.46

CIP Revolution Holdings, LLC (2) (3) (4) (5) (13) (15)
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
8.33%
 
8/19/2016
 
8/19/2021
 
18,939

 
18,801

 
18,775

 
1.67

CircusTrix Holdings, LLC (2) (3) (4) (5) (13) (15)
Hotel, Gaming & Leisure
 
L + 5.50%
 
7.81%
 
2/2/2018
 
12/16/2021
 
9,259

 
9,040

 
9,248

 
0.82

Colony Hardware Corporation (2) (3) (4) (13)
Construction & Building
 
L + 6.00%
 
8.09%
 
9/4/2015
 
10/23/2021
 
23,782

 
23,553

 
23,763

 
2.12

Comar Holding Company, LLC (2) (3) (5) (13) (15)
Containers, Packaging & Glass
 
L + 5.25%
 
7.58%
 
6/18/2018
 
6/18/2024
 
26,670

 
25,990

 
26,264

 
2.34

Continuum Managed Services Holdco, LLC (2) (3) (4) (5) (13) (15) 
High Tech Industries
 
L + 6.00%
 
8.10%
 
6/20/2017
 
6/8/2023
 
22,770

 
22,158

 
22,881

 
2.04

Dade Paper & Bag, LLC (2) (3) (4) (5)
Forest Products & Paper
 
L + 7.50%
 
9.59%
 
6/9/2017
 
6/10/2024
 
49,500

 
48,624

 
49,589

 
4.42

Datto, Inc. (2) (3) (5) (15)
High Tech Industries
 
L + 8.00%
 
10.05%
 
12/7/2017
 
12/7/2022
 
35,622

 
35,125

 
36,218

 
3.23

Dent Wizard International Corporation (2) (3) (4)
Automotive
 
L + 4.00%
 
6.10%
 
4/28/2015
 
4/7/2020
 
891

 
889

 
889

 
0.08

Derm Growth Partners III, LLC (Dermatology Associates) (2) (3) (4) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 6.25%
 
8.58%
 
5/31/2016
 
5/31/2022
 
50,759

 
50,282

 
50,606

 
4.51

DermaRite Industries, LLC (2) (3) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 7.00%
 
9.09%
 
3/3/2017
 
3/3/2022
 
20,566

 
20,296

 
20,176

 
1.80

Dimensional Dental Management, LLC (2) (3) (5) (12) (15)
Healthcare & Pharmaceuticals
 
L + 6.75%
 
8.84%
 
2/12/2016
 
2/12/2021
 
33,674

 
33,112

 
32,692

 
2.91

Direct Travel, Inc. (2) (3) (4) (5) (13) (15)
Hotel, Gaming & Leisure
 
L + 6.50%
 
8.83%
 
10/14/2016
 
12/1/2021
 
35,254

 
34,748

 
35,254

 
3.14

EIP Merger Sub, LLC (Evolve IP) (2) (3) (4) (5) (12)
Telecommunications
 
L + 5.75%
 
7.84%
 
6/7/2016
 
6/7/2022
 
33,348

 
32,655

 
32,894

 
2.93

Emergency Communications Network, LLC (2) (3) (4) (5) (13)
Telecommunications
 
L + 6.25%
 
8.34%
 
6/1/2017
 
6/1/2023
 
24,750

 
24,550

 
24,646

 
2.20

Ensono, LP (2) (3) (13)
Telecommunications
 
L + 5.25%
 
7.34%
 
4/30/2018
 
6/27/2025
 
8,667

 
8,662

 
8,640

 
0.77


7



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (79.06%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Frontline Technologies Holdings, LLC (2) (3) (5) (15)  
Software
 
L + 6.50%
 
8.59%
 
9/18/2017
 
9/18/2023
 
$
39,000

 
$
38,606

 
$
37,874

 
3.38
 %
FWR Holding Corporation (2) (3) (4) (5) (13) (15)
Beverage, Food & Tobacco
 
L + 6.00%
 
8.09%
 
8/21/2017
 
8/21/2023
 
40,045

 
38,964

 
40,509

 
3.61

Global Franchise Group, LLC (2) (3) (4) (5) (13) (15)
Beverage, Food & Tobacco
 
L + 5.75%
 
7.84%
 
9/15/2017
 
12/18/2019
 
13,584

 
13,496

 
13,584

 
1.21

Green Energy Partners/Stonewall LLC (2) (3) (4) (13)
Energy: Electricity
 
L + 5.50%
 
7.83%
 
6/26/2015
 
11/13/2021
 
19,850

 
19,554

 
19,540

 
1.74

GRO Sub Holdco, LLC (Grand Rapids) (2) (3) (4) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.33%
 
2/28/2018
 
2/22/2024
 
6,914

 
6,699

 
6,877

 
0.61

Hummel Station LLC (2) (3) (4) (13)  
Energy: Electricity
 
L + 6.00%
 
8.09%
 
2/3/2016
 
10/27/2022
 
15,000

 
14,303

 
14,569

 
1.30

Hydrofarm, LLC (2) (5)
Wholesale
 
L + 7.00%
 
8.89%
 
5/15/2017
 
5/12/2022
 
18,644

 
18,503

 
14,934

 
1.33

Indra Holdings Corp. (Totes Isotoner) (2) (3) (5) (13)
Non-durable Consumer Goods
 
L + 4.25%
 
6.34%
 
4/29/2014
 
5/1/2021
 
18,965

 
17,389

 
11,419

 
1.02

Innovative Business Services, LLC (2) (3) (5) (13) (15)
High Tech Industries
 
L + 5.50%
 
7.82%
 
4/5/2018
 
4/5/2023
 
16,390

 
15,869

 
16,065

 
1.43

Legacy.com Inc. (2) (3) (5) (12)
High Tech Industries
 
L + 6.00%
 
8.33%
 
3/20/2017
 
3/20/2023
 
17,000

 
16,674

 
17,369

 
1.55

Metrogistics LLC (2) (3) (4) (13)
Transportation: Cargo
 
L + 6.50%
 
8.80%
 
12/13/2016
 
9/30/2022
 
17,748

 
17,561

 
17,727

 
1.58

Moxie Liberty LLC (2) (3) (4) (13)
Energy: Electricity
 
L + 6.50%
 
8.83%
 
10/16/2017
 
8/21/2020
 
9,924

 
9,094

 
9,358

 
0.83

National Technical Systems, Inc. (2) (3) (4) (5) (13) (15)
Aerospace & Defense
 
L + 6.25%
 
8.23%
 
6/26/2015
 
6/12/2021
 
26,351

 
26,087

 
25,047

 
2.23

NES Global Talent Finance US LLC (United Kingdom)  (2) (3) (4) (13)
Energy: Oil & Gas
 
L + 5.50%
 
7.86%
 
5/9/2018
 
5/11/2023
 
7,847

 
7,696

 
7,740

 
0.69

NMI AcquisitionCo, Inc. (2) (3) (4) (5) (15)
High Tech Industries
 
L + 6.75%
 
8.84%
 
9/6/2017
 
9/6/2022
 
51,680

 
50,792

 
51,102

 
4.55

OnCourse Learning Corporation (2) (3) (4) (5) (13) (15)
Consumer Services
 
L + 6.50%
 
8.80%
 
9/12/2016
 
9/12/2021
 
38,830

 
38,462

 
38,679

 
3.45

Payment Alliance International, Inc. (2) (3) (5) (12)
Business Services
 
L + 6.05%
 
8.39%
 
9/15/2017
 
9/15/2021
 
24,387

 
23,926

 
24,555

 
2.19

Plano Molding Company, LLC (2) (3) (4) (5)
Hotel, Gaming & Leisure
 
L + 8.00%
 
10.09%
 
5/1/2015
 
5/12/2021
 
19,424

 
19,193

 
17,480

 
1.56

PPT Management Holdings, LLC (2) (3) (5)
Healthcare & Pharmaceuticals
 
L + 6.50%
 
8.09%
 
12/15/2016
 
12/16/2022
 
24,688

 
24,527

 
20,844

 
1.86

PricewaterhouseCoopers Public Sector LLP (2) (3) (15) 
Aerospace & Defense
 
L + 3.25%
 
4.34%
 
5/1/2018
 
5/1/2023
 

 
(138
)
 
(109
)
 
(0.01
)
Prime Risk Partners, Inc. (2) (3) (5) (15)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.00%
 
7.33%
 
8/15/2017
 
8/13/2023
 
1,903

 
1,862

 
1,890

 
0.17

Prime Risk Partners, Inc. (2) (3) (5) (12) (15)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.00%
 
7.33%
 
8/15/2017
 
8/13/2023
 
23,959

 
23,437

 
23,830

 
2.12

Product Quest Manufacturing, LLC (2) (3) (5) (15)
Containers, Packaging & Glass
 
L + 6.75%
 
10.00%
 
9/21/2017
 
3/31/2019
 
4,051

 
4,051

 
4,051

 
0.36

Product Quest Manufacturing, LLC (2) (3) (5) (10) (12)
Containers, Packaging & Glass
 
L + 5.75%
 
7.84%
 
9/9/2015
 
9/9/2020
 
33,000

 
32,270

 
9,988

 
0.89

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) (2) (3) (4) (13)
Wholesale
 
L + 4.50%
 
6.83%
 
12/1/2017
 
1/28/2020
 
14,831

 
14,340

 
14,715

 
1.31

QW Holding Corporation (Quala) (2) (3) (4) (5) (13)
Environmental Industries
 
L + 6.75%
 
8.73%
 
8/31/2016
 
8/31/2022
 
36,364

 
35,674

 
35,622

 
3.18

Reliant Pro Rehab, LLC (2) (3) (5) (12)
Healthcare & Pharmaceuticals
 
L + 10.00%
 
12.09%
 
6/24/2016
 
12/28/2018
 
24,438

 
24,519

 
24,682

 
2.20

Smile Doctors, LLC (2) (3) (5) (13) (15)
Healthcare & Pharmaceuticals
 
L + 5.75%
 
8.11%
 
10/6/2017
 
10/6/2022
 
14,585

 
14,449

 
14,595

 
1.30


8



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (79.06%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
SolAero Technologies Corp. (2) (3) (5) (10)
Telecommunications
 
L + 5.25%
 
7.34%
 
5/24/2016
 
12/10/2020
 
$
24,485

 
$
23,854

 
$
19,284

 
1.72
 %
SPay, Inc. (2) (3) (4) (5) (13) (15)
Hotel, Gaming & Leisure
 
L + 5.75%
 
7.82%
 
6/15/2018
 
6/15/2024
 
18,409

 
17,803

 
18,062

 
1.61

Superior Health Linens, LLC (2) (3) (4) (5) (13) (15)
Business Services
 
L + 6.50%
 
7.85%
 
9/30/2016
 
9/30/2021
 
21,125

 
20,885

 
20,902

 
1.87

Surgical Information Systems, LLC (2) (3) (4) (5) (12) (13)  
High Tech Industries
 
L + 4.85%
 
6.94%
 
4/24/2017
 
4/24/2023
 
27,708

 
27,475

 
27,608

 
2.46

T2 Systems Canada, Inc. (2) (3) (4)
Transportation: Consumer
 
L + 6.75%
 
8.84%
 
5/24/2017
 
9/28/2022
 
3,989

 
3,913

 
3,996

 
0.36

T2 Systems, Inc. (2) (3) (4) (5) (15)
Transportation: Consumer
 
L + 6.75%
 
8.84%
 
9/28/2016
 
9/28/2022
 
32,490

 
31,853

 
32,548

 
2.90

The Hilb Group, LLC (2) (3) (5) (12) (15)
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.33%
 
6/24/2015
 
6/24/2021
 
42,065

 
41,402

 
41,694

 
3.72

The Topps Company, Inc. (2) (3) (4) (13)
Non-durable Consumer Goods
 
L + 6.00%
 
8.33%
 
6/26/2015
 
10/2/2020
 
22,250

 
22,183

 
22,139

 
1.97

Trump Card, LLC (2) (3) (5) (15)
Transportation: Cargo
 
L + 5.50%
 
7.84%
 
6/26/2018
 
4/21/2022
 
7,845

 
7,761

 
7,820

 
0.70

TSB Purchaser, Inc. (Teaching Strategies, LLC) (2) (3) (4) (13) (15)
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
7.92%
 
5/14/2018
 
5/14/2024
 
28,169

 
27,431

 
27,724

 
2.47

Tweddle Group, Inc. (2) (3) (4) (10) (13)
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
8.09%
 
10/20/2016
 
10/24/2022
 
7,032

 
6,953

 
3,121

 
0.28

Vetcor Professional Practices, LLC (2) (3) (4) (5) (13) (15)
Consumer Services
 
L + 6.25%
 
8.34%
 
6/26/2015
 
4/20/2021
 
40,482

 
40,146

 
40,482

 
3.61

VRC Companies, LLC (2) (3) (4) (5) (13) (15) 
Business Services
 
L + 6.50%
 
8.59%
 
3/31/2017
 
3/31/2023
 
42,377

 
41,602

 
42,292

 
3.77

Watchfire Enterprises, Inc. (2) (3) (13)
Media: Advertising, Printing & Publishing
 
L + 4.00%
 
6.33%
 
6/9/2017
 
10/2/2020
 
1,248

 
1,239

 
1,248

 
0.11

Winchester Electronics Corporation (2) (3) (4) (5) (13)
Capital Equipment
 
L + 6.50%
 
8.59%
 
10/14/2016
 
6/30/2022
 
36,363

 
36,117

 
36,363

 
3.24

Zemax Software Holdings, LLC (2) (3) (5) (15)
Software
 
L + 5.75%
 
8.09%
 
6/25/2018
 
6/25/2024
 
10,274

 
10,043

 
10,143

 
0.90

Zenith Merger Sub, Inc. (2)(3)(4)(5)(13)(15)
Business Services
 
L + 5.50%
 
7.83%
 
12/13/2017
 
12/13/2023
 
11,872

 
11,712

 
11,872

 
1.06

First Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
$
1,570,914

 
$
1,539,134

 
137.19
 %
Second Lien Debt (8.27%)
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
Access CIG, LLC (2) (5) (15)
Business Services
 
L + 7.75%
 
9.84%
 
2/14/2018
 
2/27/2026
 
$
2,573

 
$
2,548

 
$
2,579

 
0.23
 %
AmeriLife Group, LLC (2) (3) (5) (13)  
Banking, Finance, Insurance & Real Estate
 
L + 8.75%
 
10.84%
 
7/9/2015
 
1/10/2023
 
22,000

 
21,666

 
22,000

 
1.96

Argon Medical Devices Holdings, Inc. (2) (3) (5)
Healthcare & Pharmaceuticals
 
L + 8.00%
 
10.09%
 
11/2/2017
 
1/23/2026
 
7,500

 
7,466

 
7,583

 
0.68

Confie Seguros Holding II Co. (2) (3) (5) (13)
Banking, Finance, Insurance & Real Estate
 
L + 9.50%
 
11.81%
 
6/29/2015
 
5/8/2019
 
9,000

 
8,967

 
8,828

 
0.78

Drew Marine Group Inc. (2) (3) (4) (5) (13)  
Chemicals, Plastics & Rubber
 
L + 7.00%
 
9.09%
 
11/19/2013
 
5/19/2021
 
12,500

 
12,485

 
12,450

 
1.11

Paradigm Acquisition Corp. (2) (3) (5)
Business Services
 
L + 8.50%
 
10.97%
 
10/6/2017
 
10/12/2025
 
9,600

 
9,510

 
9,719

 
0.87

Pathway Partners Vet Management Company LLC (2) (3) (5) (15)
Consumer Services
 
L + 8.00%
 
10.09%
 
10/4/2017
 
10/10/2025
 
11,943

 
11,771

 
11,733

 
1.05


9



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
Second Lien Debt (8.27%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pharmalogic Holdings Corp. (2) (3) (5) (15)
Healthcare & Pharmaceuticals
 
L + 8.00%
 
10.09%
 
6/7/2018
 
12/11/2023
 
$
563

 
$
560

 
$
566

 
0.05
 %
Project Accelerate Parent, LLC (2) (3) (5)
Software
 
L + 8.50%
 
10.50%
 
1/2/2018
 
1/2/2026
 
22,500

 
21,960

 
22,577

 
2.01

Prowler Acquisition Corp. (Pipeline Supply and Service, LLC) (2) (3) (5)
Wholesale
 
L + 8.50%
 
10.80%
 
1/24/2014
 
7/28/2020
 
3,000

 
2,969

 
2,814

 
0.25

Q International Courier, LLC (2) (3) (5)
Transportation: Cargo
 
L + 8.25%
 
10.34%
 
9/19/2017
 
9/19/2025
 
18,750

 
18,399

 
19,009

 
1.69

Reladyne, Inc. (2) (3) (4) (5) (13)
Wholesale
 
L + 9.50%
 
11.59%
 
4/19/2018
 
1/21/2023
 
10,000

 
9,818

 
9,891

 
0.88

Santa Cruz Holdco, Inc. (2) (3) (5)
Non-durable Consumer Goods
 
L + 8.25%
 
10.32%
 
12/15/2017
 
12/13/2024
 
17,138

 
16,975

 
17,352

 
1.55

Superion, LLC (fka Ramundsen Public Sector, LLC) (2) (3) (13)
Sovereign & Public Finance
 
L + 8.50%
 
10.59%
 
5/19/2017
 
2/1/2025
 
1,800

 
1,785

 
1,804

 
0.16

Watchfire Enterprises, Inc. (2) (3) (5)
Media: Advertising, Printing & Publishing
 
L + 8.00%
 
10.31%
 
10/2/2013
 
10/2/2021
 
7,000

 
6,945

 
7,000

 
0.62

Zywave, Inc. (2) (3) (5)
High Tech Industries
 
L + 9.00%
 
11.33%
 
11/18/2016
 
11/17/2023
 
4,950

 
4,889

 
5,000

 
0.45

Second Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
$
158,713

 
$
160,905

 
14.34
 %
Investments—non-controlled/non-affiliated (1)
Industry
 
Acquisition Date
 
Shares/ Units
 
Cost
 
Fair Value (7)
 
Percentage of Net Assets
Equity Investments (1.15%) (5) (16)
 
 
 
 
 
 
 
 
 
 
 
ANLG Holdings, LLC
Healthcare & Pharmaceuticals
 
6/22/2018
 
879,690

 
$
880

 
$
880

 
0.08
%
CIP Revolution Holdings, LLC
Media: Advertising, Printing & Publishing
 
8/19/2016
 
30,000

 
300

 
399

 
0.04

Dade Paper & Bag, LLC
Forest Products & Paper
 
6/9/2017
 
1,500,000

 
1,500

 
2,269

 
0.20

DecoPac, Inc.
Non-durable Consumer Goods
 
9/29/2017
 
1,500,000

 
1,500

 
1,526

 
0.14

Derm Growth Partners III, LLC (Dermatology Associates)
Healthcare & Pharmaceuticals
 
5/31/2016
 
1,000,000

 
1,000

 
1,603

 
0.14

GRO Sub Holdco, LLC (Grand Rapids)
Healthcare & Pharmaceuticals
 
3/29/2018
 
500,000

 
500

 
450

 
0.04

Legacy.com Inc.
High Tech Industries
 
3/20/2017
 
1,500,000

 
1,500

 
1,962

 
0.17

North Haven Goldfinch Topco, LLC
Containers, Packaging & Glass
 
6/18/2018
 
2,314,815

 
2,315

 
2,315

 
0.21

Power Stop Intermediate Holdings, LLC
Automotive
 
5/29/2015
 
7,150

 
369

 
1,407

 
0.13

Rough Country, LLC
Durable Consumer Goods
 
5/25/2017
 
754,775

 
755

 
1,038

 
0.09

SiteLock Group Holdings, LLC
High Tech Industries
 
4/5/2018
 
446,429

 
446

 
446

 
0.04

T2 Systems Parent Corporation
Transportation: Consumer
 
9/28/2016
 
555,556

 
556

 
792

 
0.07

Tailwind HMT Holdings Corp.
Energy: Oil & Gas
 
11/17/2017
 
2,000,000

 
2,000

 
2,381

 
0.21

THG Acquisition, LLC (The Hilb Group, LLC)
Banking, Finance, Insurance & Real Estate
 
6/24/2015
 
1,500,000

 
1,500

 
2,813

 
0.25

Zenith American Holding, Inc.
Business Services
 
12/13/2017
 
1,561,644

 
1,562

 
1,760

 
0.16


10



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/non-affiliated (1)
Industry
 
Acquisition Date
 
Shares/ Units
 
Cost
 
Fair Value (7)
 
Percentage of Net Assets
Zillow Topco LP
Software
 
6/25/2018
 
312,500

 
313

 
313

 
0.03

Equity Investments Total
 
 
 
 
 
 
$
16,996

 
$
22,354

 
2.00
%
Total investments—non-controlled/non-affiliated
 
 
 
 
 
$
1,746,623

 
$
1,722,393

 
153.53
%
Investments—non-controlled/affiliated (5) 14)
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (6)
 
Fair Value (7)
 
Percentage of Net Assets
First Lien Debt (0.84%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
TwentyEighty, Inc. - Revolver (2) (3) (15)
Business Services
 
L + 8.00%
 
11.09%
 
1/31/2017
 
3/31/2020
 
$

 
$
(4
)
 
$

 
%
TwentyEighty, Inc. - (Term A Loans) (2) (3)
Business Services
 
L + 8.00%
 
11.09%
 
1/31/2017
 
3/31/2020
 
3,001

 
2,989

 
3,001

 
0.27

TwentyEighty, Inc. - (Term B Loans)
Business Services
 
N/A
 
8.00% (4.00% cash, 4.00% PIK)
 
1/31/2017
 
3/31/2020
 
6,853

 
6,671

 
6,716

 
0.60

TwentyEighty, Inc. - (Term C Loans)
Business Services
 
N/A
 
9.00% (0.25% cash, 8.75% PIK)
 
1/31/2017
 
3/31/2020
 
6,813

 
6,284

 
6,677

 
0.59

First Lien Debt Total
 
 
 
 
 
 
 
 
 
 

 
$
15,940

 
$
16,394

 
1.46
%
Investments—non-controlled/affiliated (5) (14) (16)
Industry
 
Acquisition Date
 
Shares/ Units
 
Cost
 
Fair
Value 
(7)
 
Percentage of Net Assets
Equity Investments (0.00%)
 
 
 
 
 
 
 
 
 
 
 
TwentyEighty Investors LLC
Business Services
 
1/31/2017
 
69,786

 
$

 
$

 
%
Equity Investments Total
 
 
 
 
 
 
$

 
$

 
%
Total investments—non-controlled/affiliated
 
 
 
 
 
 
$
15,940

 
$
16,394

 
1.46
%
Investments—controlled/affiliated
Industry
 
Reference Rate & Spread (2)

 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par Amount/ LLC Interest
 
Cost
 
Fair Value (7)
 
Percentage of Net Assets
Investment Fund (10.68%) (8)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Middle Market Credit Fund, LLC, Mezzanine Loan (2) (5) (9) (11)
Investment Fund
 
L + 9.00%
 
11.30%
 
6/30/2016
 
3/22/2019
 
$
114,000

 
$
114,000

 
$
114,000

 
10.16
%
Middle Market Credit Fund, LLC, Subordinated Loan and Member’s Interest  (5) (11)
Investment Fund
 
N/A
 
0.001%
 
2/29/2016
 
3/1/2021
 
94,501

 
94,501

 
94,005

 
8.38

Investment Fund Total
 
 
 
 
 
 
 
 
 
 
 
 
$
208,501

 
$
208,005

 
18.54
%
Total investments—controlled/affiliated
 
 
 
 
 
 
 
 
 
 
 
 
$
208,501

 
$
208,005

 
18.54
%
Total investments
 
 
 
 
 
 
 
 
 
 
 
 
$
1,971,064

 
$
1,946,792

 
173.53
%
 

11



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(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. 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 June 30, 2018, 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 June 30, 2018, the Company is not an “affiliated person” of any of these portfolio companies. Certain portfolio company investments are subject to contractual restrictions on sales.
(2)
Variable rate loans to the portfolio companies bear interest at a rate that is 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 indicated the reference rate used and provided the spread and the interest rate in effect as of June 30, 2018. As of June 30, 2018, the reference rates for our variable rate loans were the 30-day LIBOR at 2.09%, the 90-day LIBOR at 2.34% and the 180-day LIBOR at 2.50%.
(3)
Loan includes interest rate floor feature, which is generally 1.00%.
(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 Carlyle GMS Finance MM CLO 2015-1 LLC (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 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.
(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, 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 June 30, 2018.
(11)
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. Transactions related to investments in controlled affiliates for the six month period ended June 30, 2018 were as follows:
Investments—controlled/affiliated
Fair Value as of December 31, 2017
 
Additions/Purchases
 
Reductions/Sales/ Paydowns
 
Net Realized Gain (Loss)
 
Net Change in Unrealized Appreciation (Depreciation)
 
Fair Value as of June 30, 2018
 
Dividend and Interest Income
Middle Market Credit Fund, LLC, Mezzanine Loan
$
85,750

 
$
47,150

 
$
(18,900
)
 
$

 
$

 
$
114,000

 
$
5,829

Middle Market Credit Fund, LLC, Subordinated Loan and Member’s Interest 
86,766

 
8,012

 

 

 
(761
)
 
94,005

 
7,750

Total investments—controlled/affiliated
$
172,516

 
$
55,162

 
$
(18,900
)
 
$

 
$
(761
)
 
$
208,005

 
$
13,579


(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 (4.55%), EIP Merger Sub, LLC (Evolve IP) (3.80%), Legacy.com Inc. (4.06%), Payment Alliance International Inc. (2.70%), Prime Risk Partners, Inc. (1.82%), Product Quest Manufacturing, LLC (3.54%), Reliant Pro Rehab, LLC (nil), Surgical Information Systems, LLC (0.91%) and The Hilb Group, LLC (3.35%). 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 $400,000 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 an “affiliated person” of this portfolio company because the Company owns 5% or more of the portfolio company’s outstanding voting securities. Transactions related to investments in non-controlled affiliates for the six month period ended June 30, 2018 were as follows:

12



TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of June 30, 2018
(dollar amounts in thousands)
(unaudited)

Investments—non-controlled/affiliated
Fair Value as of December 31, 2017

Purchases/ Paid-in-kind interest

Sales/ Paydowns

Net Accretion of Discount

Net Realized Gain (Loss)

Net Change in Unrealized Appreciation (Depreciation)

Fair value as of June 30, 2018

Interest Income
TwentyEighty, Inc. - Revolver
$
(20
)
 
$

 
$

 
$
2

 
$

 
$
18

 
$

 
$
2

TwentyEighty, Inc. - (Term A Loans)
3,760

 

 
(889
)
 
7

 

 
123

 
3,001

 
193

TwentyEighty, Inc. - (Term B Loans)
6,360

 
138