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 March 31, 2019
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
 
(212) 813-4900
(Address of principal executive office) (Zip Code)
 
(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 every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☐    No  ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check one):
Large accelerated filer
 
x
  
Accelerated filer
 
o
Non-accelerated filer
 
o 
  
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
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Trading Symbol(s)
Name of Each Exchange on Which Registered
Common stock, $0.01 par value
CGBD
NASDAQ Global Select Market
The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at May 7, 2019 was 60,613,488.




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)
 
March 31, 2019
 
December 31, 2018
ASSETS
(unaudited)
 
 
Investments, at fair value
 
 
 
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,965,496 and $1,799,751, respectively)
$
1,899,537

 
$
1,731,319

Investments—non-controlled/affiliated, at fair value (amortized cost of $14,081 and $13,839, respectively)
21,081

 
18,543

Investments—controlled/affiliated, at fair value (amortized cost of $241,801 and $230,001, respectively)
234,591

 
222,295

Total investments, at fair value (amortized cost of $2,221,378 and $2,043,591, respectively)
2,155,209

 
1,972,157

Cash and cash equivalents
40,071

 
87,186

Receivable for investment sold

 
8,060

Deferred financing costs
4,069

 
3,950

Interest receivable from non-controlled/non-affiliated investments
7,658

 
5,853

Interest receivable from non-controlled/affiliated investments
8

 
3

Interest and dividend receivable from controlled/affiliated investments
7,256

 
7,405

Prepaid expenses and other assets
8

 
129

Total assets
$
2,214,279

 
$
2,084,743

LIABILITIES
 
 
 
Secured borrowings (Note 6)
$
660,959

 
$
514,635

Notes payable, net of unamortized debt issuance costs of $3,095 and $3,157, respectively (Note 7)
446,105

 
446,043

Payable for investments purchased

 
1,870

Due to Investment Adviser
169

 
236

Interest and credit facility fees payable (Notes 6 and 7)
7,994

 
7,500

Dividend payable (Note 9)
22,681

 
35,497

Base management and incentive fees payable (Note 4)
13,531

 
13,834

Administrative service fees payable (Note 4)
139

 
94

Other accrued expenses and liabilities
2,514

 
1,816

Total liabilities
1,154,092

 
1,021,525

Commitments and contingencies (Notes 8 and 11)
 
 
 
NET ASSETS
 
 
 
Common stock, $0.01 par value; 200,000,000 shares authorized; 61,272,069 shares and 62,230,251 shares issued and outstanding at March 31, 2019 and December 31, 2018, respectively
613

 
622

Paid-in capital in excess of par value
1,160,258

 
1,174,334

Offering costs
(1,633
)
 
(1,633
)
Total distributable earnings (loss)
(99,051
)
 
(110,105
)
Total net assets
$
1,060,187

 
$
1,063,218

NET ASSETS PER SHARE
$
17.30

 
$
17.09


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
 
March 31, 2019
 
March 31, 2018
Investment income:
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
Interest income
$
45,242

 
$
39,328

Other income
2,028

 
895

Total investment income from non-controlled/non-affiliated investments
47,270

 
40,223

From non-controlled/affiliated investments:
 
 
 
Interest income
379

 
379

Total investment income from non-controlled/affiliated investments
379

 
379

From controlled/affiliated investments:
 
 
 
Interest income
3,538

 
2,631

Dividend income
4,000

 
4,250

Total investment income from controlled/affiliated investments
7,538

 
6,881

Total investment income
55,187

 
47,483

Expenses:
 
 
 
Base management fees (Note 4)
7,685

 
7,222

Incentive fees (Note 4)
5,846

 
5,330

Professional fees
745

 
762

Administrative service fees (Note 4)
216

 
186

Interest expense (Notes 6 and 7)
11,991

 
7,815

Credit facility fees (Note 6)
568

 
525

Directors’ fees and expenses
93

 
98

Other general and administrative
421

 
405

Total expenses
27,565

 
22,343

Net investment income (loss) before taxes
27,622

 
25,140

Excise tax expense
60

 
10

Net investment income (loss)
27,562

 
25,130

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
 
 
 
Net realized gain (loss) from:
 
 
 
Non-controlled/non-affiliated investments
899

 
(129
)
Net change in unrealized appreciation (depreciation):
 
 
 
Non-controlled/non-affiliated investments
2,473

 
(6,044
)
Non-controlled/affiliated investments
2,296

 
1,432

Controlled/affiliated investments
496

 
700

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments
6,164

 
(4,041
)
Net increase (decrease) in net assets resulting from operations
$
33,726

 
$
21,089

Basic and diluted earnings per common share (Note 9)
$
0.55

 
$
0.34

Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)
61,772,774

 
62,504,465


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 three month periods ended
 
March 31, 2019
 
March 31, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income (loss)
$
27,562

 
$
25,130

Net realized gain (loss) on investments
899

 
(129
)
Net change in unrealized appreciation (depreciation) on investments
5,265

 
(3,912
)
Net increase (decrease) in net assets resulting from operations
33,726

 
21,089

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

 
(15
)
Reinvestment of dividends

 
6,629

Repurchase of common stock
(14,085
)
 

Dividends declared (Note 12)
(22,672
)
 
(23,150
)
Net increase (decrease) in net assets resulting from capital share transactions
(36,757
)
 
(16,536
)
Net increase (decrease) in net assets
(3,031
)
 
4,553

Net assets at beginning of period
1,063,218

 
1,127,304

Net assets at end of period
$
1,060,187

 
$
1,131,857


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 three month periods ended
 
March 31, 2019
 
March 31, 2018
Cash flows from operating activities:
 
 
 
Net increase (decrease) in net assets resulting from operations
$
33,726

 
$
21,089

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
298

 
252

Net accretion of discount on investments
(2,161
)
 
(2,390
)
Paid-in-kind interest
(1,052
)
 
(213
)
Net realized (gain) loss on investments
(899
)
 
129

Net change in unrealized (appreciation) depreciation on investments
(5,265
)
 
3,912

Cost of investments purchased and change in payable for investments purchased
(247,039
)
 
(111,938
)
Proceeds from sales and repayments of investments and change in receivable for investments sold
79,554

 
164,119

Changes in operating assets:
 
 
 
Interest receivable
(1,361
)
 
(486
)
Dividend receivable
(300
)
 
(1,410
)
Prepaid expenses and other assets
121

 
(159
)
Changes in operating liabilities:
 
 
 
Due to Investment Adviser
(67
)
 
35

Interest and credit facility fees payable
494

 
160

Base management and incentive fees payable
(303
)
 
(546
)
Administrative service fees payable
45

 
30

Other accrued expenses and liabilities
698

 
(101
)
Net cash provided by (used in) operating activities
(143,511
)
 
72,483

Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock, net of offering and underwriting costs

 
(15
)
Repurchase of common stock
(14,085
)
 

Borrowings on SPV Credit Facility and Credit Facility
253,950

 
253,050

Repayments of SPV Credit Facility and Credit Facility
(107,626
)
 
(288,078
)
Debt issuance costs paid
(355
)
 
(17
)
Dividends paid in cash
(35,488
)
 
(23,852
)
Net cash provided by (used in) financing activities
96,396

 
(58,912
)
Net increase (decrease) in cash and cash equivalents
(47,115
)
 
13,571

Cash and cash equivalents, beginning of period
87,186

 
32,039

Cash and cash equivalents, end of period
$
40,071

 
$
45,610

Supplemental disclosures:
 
 
 
Interest paid during the period
$
11,515

 
$
7,682

Taxes, including excise tax, paid during the period
$
225

 
$
105

Dividends declared during the period
$
22,672

 
$
23,150

Reinvestment of dividends
$

 
$
6,629


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

6

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of March 31, 2019
(dollar amounts in thousands)
(unaudited)

 
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (4)
 
Fair Value (5)
 
% of of Net Assets
 
 
First Lien Debt (76.51%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Advanced Instruments, LLC
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 5.25%
 
7.73%
 
11/1/2016
 
10/31/2022
 
$
19,916

 
$
19,679

 
$
19,779

 
1.87
 %
 
Aero Operating, LLC (Dejana Industries, Inc.)
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 7.25%
 
9.74%
 
1/5/2018
 
12/29/2022
 
3,560

 
3,527

 
3,545

 
0.32

 
Alpha Packaging Holdings, Inc.
 
+*
 
(2) (3)
 
Containers, Packaging & Glass
 
L + 4.25%
 
6.85%
 
6/26/2015
 
5/12/2020
 
2,858

 
2,857

 
2,855

 
0.27

 
Alpine SG, LLC
 
^*
 
(2) (3)
 
High Tech Industries
 
L + 5.50%
 
8.24%
 
2/2/2018
 
11/16/2022
 
13,801

 
13,677

 
13,741

 
1.30

 
American Physician Partners, LLC
 
^+
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.50%
 
9.10%
 
1/7/2019
 
12/21/2021
 
35,376

 
34,798

 
35,388

 
3.33

 
AMS Group HoldCo, LLC
 
^+*
 
(2) (3) (13)
 
Transportation: Cargo
 
L + 6.00%
 
8.60%
 
9/29/2017
 
9/29/2023
 
32,567

 
31,977

 
30,821

 
2.91

 
Analogic Corporation
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.50%
 
6/22/2018
 
6/22/2024
 
35,160

 
34,474

 
34,586

 
3.26

 
Anchor Hocking, LLC
 
^
 
(2) (3)
 
Durable Consumer Goods
 
L + 8.25%
 
10.99%
 
1/25/2019
 
1/25/2024
 
11,575

 
11,209

 
11,199

 
1.06

 
Apptio, Inc.
 
^
 
(2) (3) (13)
 
Software
 
L + 7.25%
 
9.74%
 
1/10/2019
 
1/10/2025
 
28,402

 
27,804

 
28,332

 
2.67

 
Avenu Holdings, LLC
 
+*
 
(2) (3)
 
Sovereign & Public Finance
 
L + 5.25%
 
7.85%
 
9/28/2018
 
9/28/2024
 
38,959

 
38,321

 
38,199

 
3.60

 
Brooks Equipment Company, LLC
 
+*
 
(2) (3)
 
Construction & Building
 
L + 5.00%
 
7.63%
 
6/26/2015
 
8/29/2020
 
2,502

 
2,494

 
2,499

 
0.24

 
Capstone Logistics Acquisition, Inc.
 
+*
 
(2) (3)
 
Transportation: Cargo
 
L + 4.50%
 
7.00%
 
6/26/2015
 
10/7/2021
 
14,306

 
14,238

 
14,295

 
1.35

 
Captive Resources Midco, LLC
 
^*
 
(2) (3) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.75%
 
8.25%
 
6/30/2015
 
12/18/2021
 
29,182

 
28,968

 
29,108

 
2.75

 
Central Security Group, Inc.
 
+*
 
(2) (3)
 
Consumer Services
 
L + 5.63%
 
8.13%
 
6/26/2015
 
10/6/2021
 
23,424

 
23,276

 
23,075

 
2.18

 
Chemical Computing Group ULC (Canada)
 
^*
 
(2) (3) (7) (13)
 
Software
 
L + 5.50%
 
8.00%
 
8/30/2018
 
8/30/2023
 
15,755

 
15,604

 
15,619

 
1.47

 
CIP Revolution Holdings, LLC
 
^+*
 
(2) (3) (13)
 
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
8.61%
 
8/19/2016
 
8/19/2021
 
20,530

 
20,407

 
20,228

 
1.91

 
CircusTrix Holdings, LLC
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 5.50%
 
8.00%
 
2/2/2018
 
12/16/2021
 
9,190

 
9,125

 
9,037

 
0.85

 
Comar Holding Company, LLC
 
^*
 
(2) (3) (13)
 
Containers, Packaging & Glass
 
L + 5.25%
 
7.74%
 
6/18/2018
 
6/18/2024
 
27,137

 
26,527

 
26,647

 
2.51

 
Continuum Managed Services Holdco, LLC
 
^+*
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.00%
 
8.50%
 
6/20/2017
 
6/8/2023
 
28,171

 
27,571

 
27,992

 
2.64

 
Dade Paper & Bag, LLC
 
^+*
 
(2) (3)
 
Forest Products & Paper
 
L + 7.50%
 
10.00%
 
6/9/2017
 
6/10/2024
 
49,125

 
48,363

 
48,771

 
4.60

 
Datto, Inc.
 
^+*
 
(2) (3) (13)
 
High Tech Industries
 
L + 8.00%
 
10.49%
 
12/7/2017
 
12/7/2022
 
35,622

 
35,199

 
36,349

 
3.43

 
Dent Wizard International Corporation
 
+
 
(2) (3)
 
Automotive
 
L + 4.00%
 
6.50%
 
4/28/2015
 
4/7/2020
 
884

 
882

 
881

 
0.08

 
Derm Growth Partners III, LLC (Dermatology Associates)
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 6.25%
 
8.85%
 
5/31/2016
 
5/31/2022
 
52,567

 
52,204

 
48,519

 
4.58

 
DermaRite Industries, LLC
 
^*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 7.00%
 
9.60%
 
3/3/2017
 
3/3/2022
 
21,803

 
21,584

 
21,654

 
2.04

 
Dimensional Dental Management, LLC
 
^
 
(2) (3) (11)
 
Healthcare & Pharmaceuticals
 
L + 6.75%
 
9.22%
 
2/12/2016
 
2/12/2021
 
33,674

 
33,301

 
28,213

 
2.66

 
Direct Travel, Inc.
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 6.50%
 
9.12%
 
10/14/2016
 
12/1/2021
 
35,287

 
34,899

 
35,162

 
3.32

 
DTI Holdco, Inc.
 
*
 
(2) (3)
 
High Tech Industries
 
L + 4.75%
 
7.49%
 
12/18/2018
 
9/30/2023
 
1,990

 
1,868

 
1,860

 
0.18


7

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2019
(dollar amounts in thousands)
(unaudited)

 
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (4)
 
Fair Value (5)
 
% of of Net Assets
 
 
First Lien Debt (76.51%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
EIP Merger Sub, LLC (Evolve IP)
 
^+*
 
(2) (3) (11)
 
Telecommunications
 
L + 5.75%
 
8.25%
 
6/7/2016
 
6/7/2022
 
$
36,093

 
$
35,465

 
$
34,834

 
3.29
 %
 
Emergency Communications Network, LLC
 
^+*
 
(2) (3)
 
Telecommunications
 
L + 6.25%
 
8.75%
 
6/1/2017
 
6/1/2023
 
24,561

 
24,394

 
24,160

 
2.28

 
Ensono, LP
 
*
 
(2) (3)
 
Telecommunications
 
L + 5.25%
 
7.75%
 
4/30/2018
 
6/27/2025
 
8,602

 
8,517

 
8,505

 
0.80

 
Frontline Technologies Holdings, LLC
 
^
 
(2) (3) (13)
 
Software
 
L + 6.50%
 
9.10%
 
9/18/2017
 
9/18/2023
 
40,420

 
40,093

 
40,401

 
3.81

 
FWR Holding Corporation
 
^+*
 
(2) (3) (13)
 
Beverage, Food & Tobacco
 
L + 5.50%
 
8.00%
 
8/21/2017
 
8/21/2023
 
46,190

 
45,379

 
46,051

 
4.34

 
Green Energy Partners/Stonewall, LLC
 
+*
 
(2) (3)
 
Energy: Electricity
 
L + 5.50%
 
8.10%
 
6/26/2015
 
11/13/2021
 
19,700

 
19,459

 
19,256

 
1.82

 
GRO Sub Holdco, LLC (Grand Rapids)
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.60%
 
2/28/2018
 
2/22/2024
 
6,653

 
6,473

 
6,242

 
0.59

 
Hummel Station, LLC
 
+*
 
(2) (3)
 
Energy: Electricity
 
L + 6.00%
 
8.50%
 
2/3/2016
 
10/27/2022
 
14,753

 
14,095

 
13,924

 
1.31

 
Hydrofarm, LLC
 
^
 
(2) (3)
 
Wholesale
 
L+10.00% (30% cash/70% PIK)
 
12.49%
 
5/15/2017
 
5/12/2022
 
20,111

 
19,801

 
13,565

 
1.28

 
iCIMS, Inc.
 
^
 
(2) (3) (13)
 
Software
 
L + 6.50%
 
8.99%
 
9/12/2018
 
9/12/2024
 
20,025

 
19,630

 
19,798

 
1.87

 
Indra Holdings Corp. (Totes Isotoner)
 
^
 
(2) (3)
 
Non-durable Consumer Goods
 
L + 4.25%
 
6.83%
 
4/29/2014
 
5/1/2021
 
18,965

 
17,640

 
9,760

 
0.92

 
Innovative Business Services, LLC
 
^*
 
(2) (3) (13)
 
High Tech Industries
 
L + 5.50%
 
8.30%
 
4/5/2018
 
4/5/2023
 
16,266

 
15,775

 
15,917

 
1.50

 
Legacy.com, Inc.
 
^
 
(2) (3) (11)
 
High Tech Industries
 
L + 6.00%
 
8.55%
 
3/20/2017
 
3/20/2023
 
17,000

 
16,706

 
16,330

 
1.54

 
Mailgun Technologies, Inc.
 
^
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.00%
 
8.61%
 
3/26/2019
 
3/26/2025
 
11,526

 
11,273

 
11,268

 
1.06

 
Maravai Intermediate Holdings, LLC
 
^*
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 4.25%
 
6.75%
 
8/2/2018
 
8/2/2025
 
19,900

 
19,723

 
19,737

 
1.86

 
Metrogistics, LLC
 
+*
 
(2) (3)
 
Transportation: Cargo
 
L + 6.50%
 
9.10%
 
12/13/2016
 
9/30/2022
 
17,402

 
17,247

 
17,326

 
1.63

 
Moxie Liberty, LLC
 
+*
 
(2) (3)
 
Energy: Electricity
 
L + 6.50%
 
9.10%
 
10/16/2017
 
8/21/2020
 
9,848

 
9,260

 
8,773

 
0.83

 
National Carwash Solutions, Inc.
 
^+
 
(2) (3) (13)
 
Automotive
 
L + 6.00%
 
8.49%
 
8/7/2018
 
4/28/2023
 
8,393

 
8,218

 
8,292

 
0.78

 
National Technical Systems, Inc.
 
^+*
 
(2) (3) (13)
 
Aerospace & Defense
 
L + 6.25%
 
8.74%
 
6/26/2015
 
6/12/2021
 
28,169

 
27,939

 
28,105

 
2.65

 
NES Global Talent Finance US, LLC (United Kingdom)
 
+*
 
(2) (3) (7)
 
Energy: Oil & Gas
 
L + 5.50%
 
8.24%
 
5/9/2018
 
5/11/2023
 
9,967

 
9,816

 
9,773

 
0.92

 
Nexus Technologies, LLC
 
*
 
(2) (3)
 
High Tech Industries
 
L + 5.50%
 
8.10%
 
12/11/2018
 
12/5/2023
 
6,219

 
6,162

 
6,083

 
0.57

 
NMI AcquisitionCo, Inc.
 
^+*
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.75%
 
9.25%
 
9/6/2017
 
9/6/2022
 
51,296

 
50,562

 
49,646

 
4.68

 
North American Dental Management, LLC
 
^
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 5.25%
 
7.81%
 
10/26/2018
 
7/7/2023
 
3,335

 
3,241

 
3,246

 
0.31

 
Northland Telecommunications Corporation
 
^*
 
(2) (3) (13)
 
Media: Broadcast & Subscription
 
L + 5.75%
 
8.24%
 
10/1/2018
 
10/1/2025
 
21,584

 
21,254

 
21,284

 
2.01

 
Plano Molding Company, LLC
 
^
 
(2) (3)
 
Hotel, Gaming & Leisure
 
L + 7.50%
 
9.99%
 
5/1/2015
 
5/12/2021
 
14,865

 
14,702

 
13,912

 
1.31


8

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2019
(dollar amounts in thousands)
(unaudited)

 
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (4)
 
Fair Value (5)
 
% of  Net Assets
 
 
First Lien Debt (76.51%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
PPC Flexible Packaging, LLC
 
^+*
 
(2) (3) (13)
 
Containers, Packaging & Glass
 
L + 5.25%
 
7.75%
 
11/23/2018
 
11/23/2024
 
$
13,767

 
$
13,549

 
$
13,437

 
1.27
 %
 
PPT Management Holdings, LLC
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L+1.00%, 6.50% PIK
 
9.99%
 
12/15/2016
 
12/16/2022
 
27,041

 
26,909

 
21,957

 
2.07

 
PricewaterhouseCoopers Public Sector LLP
 
^
 
(2) (3) (13)
 
Aerospace & Defense
 
L + 2.75%
 
5.24%
 
5/1/2018
 
5/1/2023
 

 
(128
)
 
(104
)
 
(0.01
)
 
Prime Risk Partners, Inc.
 
^
 
(2) (3) (11) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.38%
 
8.11%
 
8/15/2017
 
8/13/2023
 
27,719

 
27,195

 
27,217

 
2.57

 
Prime Risk Partners, Inc.
 
^
 
(2) (3) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.38%
 
7.98%
 
8/15/2017
 
8/13/2023
 
2,186

 
2,089

 
2,151

 
0.20

 
Product Quest Manufacturing, LLC
 
^
 
(2) (3) (9)
 
Containers, Packaging & Glass
 
L + 6.75%
 
10.00%
 
9/21/2017
 
3/31/2019
 
2,794

 
2,794

 
2,794

 
0.26

 
Product Quest Manufacturing, LLC
 
^
 
(2) (3) (9) (11)
 
Containers, Packaging & Glass
 
L + 5.75%
 
5.75%
 
9/9/2015
 
9/9/2020
 
33,000

 
32,270

 

 

 
Prowler Acquisition Corp. (Pipeline Supply and Service, LLC)
 
+*
 
(2) (3)
 
Wholesale
 
L + 4.50%
 
7.00%
 
12/1/2017
 
1/28/2020
 
14,712

 
14,421

 
14,712

 
1.39

 
PSI Services, LLC
 
^
 
(2) (3)
 
Business Services
 
L + 5.00%
 
7.51%
 
9/19/2018
 
1/20/2023
 
4,527

 
4,472

 
4,458

 
0.42

 
QW Holding Corporation (Quala)
 
^+*
 
(2) (3) (13)
 
Environmental Industries
 
L + 5.75%
 
8.42%
 
8/31/2016
 
8/31/2022
 
39,060

 
38,443

 
38,646

 
3.65

 
Redwood Services Group, LLC
 
^*
 
(2) (3)
 
High Tech Industries
 
L + 6.00%
 
8.63%
 
11/13/2018
 
6/6/2023
 
6,028

 
5,983

 
6,004

 
0.57

 
Sapphire Convention, Inc. (Smart City)
 
^+*
 
(2) (3) (13)
 
Telecommunications
 
L + 5.25%
 
7.93%
 
11/20/2018
 
11/20/2025
 
28,793

 
28,159

 
28,270

 
2.67

 
Smile Doctors, LLC
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 5.75%
 
8.36%
 
10/6/2017
 
10/6/2022
 
19,034

 
18,925

 
18,715

 
1.76

 
SolAero Technologies Corp.
 
^
 
(2) (3) (9)
 
Telecommunications
 
L + 5.25%
 
7.74%
 
5/24/2016
 
12/10/2020
 
24,362

 
23,787

 
14,688

 
1.39

 
SolAero Technologies Corp.
 
^
 
(2) (3)
 
Telecommunications
 
L+7.25%, 4.00% PIK
 
10.25%
 
9/6/2018
 
4/12/2019
 
5,494

 
5,476

 
5,494

 
0.52

 
Sovos Brands Intermediate, Inc.
 
^
 
(2) (3)
 
Beverage, Food & Tobacco
 
L + 5.00%
 
7.50%
 
11/16/2018
 
11/20/2025
 
20,050

 
19,858

 
19,799

 
1.87

 
SPay, Inc.
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 5.75%
 
8.26%
 
6/15/2018
 
6/15/2024
 
19,966

 
19,418

 
18,338

 
1.73

 
Superior Health Linens, LLC
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 7.50%
 
10.00%
 
9/30/2016
 
9/30/2021
 
22,137

 
21,941

 
21,861

 
2.06

 
Surgical Information Systems, LLC
 
^+*
 
(2) (3) (11)
 
High Tech Industries
 
L + 4.85%
 
7.34%
 
4/24/2017
 
4/24/2023
 
26,168

 
25,976

 
25,754

 
2.43

 
T2 Systems Canada, Inc.
 
+
 
(2) (3)
 
Transportation: Consumer
 
L + 6.75%
 
9.35%
 
5/24/2017
 
9/28/2022
 
3,959

 
3,893

 
3,949

 
0.37

 
T2 Systems, Inc.
 
^+*
 
(2) (3) (13)
 
Transportation: Consumer
 
L + 6.75%
 
9.35%
 
9/28/2016
 
9/28/2022
 
32,251

 
31,711

 
32,169

 
3.03

 
Tank Holding Corp.
 
^
 
(2) (3) (13)
 
Capital Equipment
 
L + 4.00%
 
6.49%
 
3/26/2019
 
3/26/2024
 

 

 

 

 
The Hilb Group, LLC
 
^
 
(2) (3) (11) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.53%
 
6/24/2015
 
6/24/2021
 
50,949

 
50,459

 
50,093

 
4.72

 
The Topps Company, Inc.
 
+*
 
(2) (3)
 
Non-durable Consumer Goods
 
L + 6.00%
 
8.60%
 
6/26/2015
 
10/2/2020
 
22,065

 
21,905

 
22,065

 
2.08


9

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2019
(dollar amounts in thousands)
(unaudited)

 
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (4)
 
Fair Value (5)
 
% of of Net Assets
 
 
First Lien Debt (76.51%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Transform SR Holdings, LLC
 
^
 
(2) (3) (11)
 
Retail
 
L + 7.25%
 
9.74%
 
2/11/2019
 
2/11/2024
 
$
19,050

 
$
18,863

 
$
18,860

 
1.78
 %
 
Trump Card, LLC
 
^+*
 
(2) (3) (13)
 
Transportation: Cargo
 
L + 5.00%
 
7.61%
 
6/26/2018
 
4/21/2022
 
7,955

 
7,910

 
7,864

 
0.74

 
TSB Purchaser, Inc. (Teaching Strategies, LLC)
 
^+*
 
(2) (3) (13)
 
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
8.60%
 
5/14/2018
 
5/14/2024
 
27,958

 
27,306

 
27,525

 
2.60

 
Tweddle Group, Inc.
 
^
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 4.50%
 
6.99%
 
9/17/2018
 
9/17/2023
 
2,080

 
2,052

 
2,069

 
0.20

 
U.S. Acute Care Solutions, LLC
 
+
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 5.00%
 
7.60%
 
2/21/2019
 
5/15/2021
 
4,298

 
4,241

 
4,293

 
0.40

 
USLS Acquisition, Inc.
 
^*
 
(2) (3) (13)
 
Business Services
 
L + 5.75%
 
8.35%
 
11/30/2018
 
11/30/2024
 
19,128

 
18,696

 
18,623

 
1.76

 
VRC Companies, LLC
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 6.50%
 
9.01%
 
3/31/2017
 
3/31/2023
 
56,995

 
56,282

 
56,564

 
5.34

 
Watchfire Enterprises, Inc.
 
*
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 4.25%
 
6.85%
 
6/9/2017
 
10/2/2020
 
1,248

 
1,242

 
1,248

 
0.12

 
Westfall Technik, Inc.
 
^
 
(2) (3) (13)
 
Chemicals, Plastics & Rubber
 
L + 5.00%
 
7.60%
 
9/13/2018
 
9/13/2024
 
19,936

 
19,479

 
19,376

 
1.83

 
Zemax Software Holdings, LLC
 
^*
 
(2) (3) (13)
 
Software
 
L + 5.75%
 
8.35%
 
6/25/2018
 
6/25/2024
 
10,223

 
10,091

 
10,132

 
0.96

 
Zenith Merger Sub, Inc.
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 5.50%
 
8.10%
 
12/13/2017
 
12/13/2023
 
15,583

 
15,347

 
15,417

 
1.45

 
First Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,718,671

 
$
1,648,980

 
155.54
 %
 
Second Lien Debt (10.63%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 

 
 
 
Access CIG, LLC
 
^
 
(2) (3)
 
Business Services
 
L + 7.75%
 
10.24%
 
2/14/2018
 
2/27/2026
 
$
2,700

 
$
2,678

 
$
2,653

 
0.25
 %
 
Aimbridge Acquisition Co., Inc.
 
^
 
(2) (3)
 
Hotel, Gaming & Leisure
 
L + 7.50%
 
9.99%
 
2/1/2019
 
2/1/2027
 
7,727

 
7,594

 
7,631

 
0.72

 
AmeriLife Group, LLC
 
^*
 
(2) (3)
 
Banking, Finance, Insurance & Real Estate
 
L + 8.75%
 
11.25%
 
7/9/2015
 
1/10/2023
 
22,000

 
21,722

 
21,945

 
2.07

 
AQA Acquisition Holding, Inc.
 
^
 
(2) (3)
 
High Tech Industries
 
L + 8.00%
 
10.49%
 
10/1/2018
 
5/24/2024
 
40,000

 
39,636

 
39,892

 
3.77

 
Argon Medical Devices Holdings, Inc.
 
^*
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 8.00%
 
10.50%
 
11/2/2017
 
1/23/2026
 
9,497

 
9,439

 
9,458

 
0.89

 
Brave Parent Holdings, Inc.
 
^*
 
(2) (3)
 
Software
 
L + 7.50%
 
10.00%
 
10/3/2018
 
4/19/2026
 
19,062

 
18,626

 
18,495

 
1.74

 
Drew Marine Group Inc.
 
^+*
 
(2) (3)
 
Chemicals, Plastics & Rubber
 
L + 7.00%
 
9.50%
 
11/19/2013
 
5/19/2021
 
12,500

 
12,488

 
12,423

 
1.17

 
Outcomes Group Holdings, Inc.
 
^*
 
(2) (3)
 
Business Services
 
L + 7.50%
 
10.00%
 
10/23/2018
 
10/26/2026
 
4,500

 
4,500

 
4,484

 
0.42

 
Pharmalogic Holdings Corp.
 
^
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 8.00%
 
10.50%
 
6/7/2018
 
12/11/2023
 
563

 
560

 
563

 
0.05

 
Project Accelerate Parent, LLC
 
^*
 
(2) (3)
 
Software
 
L + 8.50%
 
10.99%
 
1/2/2018
 
1/2/2026
 
22,500

 
21,996

 
22,214

 
2.10

 
Prowler Acquisition Corp. (Pipeline Supply and Service, LLC)
 
^
 
(2) (3)
 
Wholesale
 
L + 8.50%
 
11.00%
 
1/24/2014
 
7/28/2020
 
3,000

 
2,973

 
3,000

 
0.28

 
Reladyne, Inc.
 
^+*
 
(2) (3) (13)
 
Wholesale
 
L + 9.50%
 
12.10%
 
4/19/2018
 
1/21/2023
 
12,242

 
12,048

 
12,234

 
1.15

 
Santa Cruz Holdco, Inc.
 
^
 
(2) (3)
 
Non-durable Consumer Goods
 
L + 8.25%
 
10.85%
 
12/15/2017
 
12/13/2024
 
17,137

 
16,988

 
17,059

 
1.61

 
Tank Holding Corp.
 
^
 
(2) (3)
 
Capital Equipment
 
L + 8.25%
 
10.74%
 
3/26/2019
 
3/26/2027
 
37,380

 
36,634

 
36,633

 
3.46

 
Ultimate Baked Goods MIDCO, LLC (Rise Baking)
 
^
 
(2) (3)
 
Beverage, Food & Tobacco
 
L + 8.00%
 
10.50%
 
8/9/2018
 
8/9/2026
 
8,333

 
8,179

 
8,227

 
0.78


10

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of March 31, 2019
(dollar amounts in thousands)
(unaudited)

 
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Reference Rate & Spread (2)
 
Interest Rate (2)
 
Acquisition Date
 
Maturity Date
 
Par/ Principal Amount
 
Amortized Cost (4)
 
Fair Value (5)
 
% of of Net Assets
 
 
Second Lien Debt (10.63%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Watchfire Enterprises, Inc.
 
^
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 8.00%
 
10.60%
 
10/2/2013
 
10/2/2021
 
$
7,000

 
$
6,953

 
$
6,990

 
0.66
 %
 
Zywave, Inc.
 
^
 
(2) (3)
 
High Tech Industries
 
L + 9.00%
 
11.49%
 
11/18/2016
 
11/17/2023
 
4,950

 
4,894

 
4,950

 
0.47

 
Second Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
227,908

 
$
228,851

 
21.59
 %
Investments—non-controlled/non-affiliated (1)
 
 
 
Footnotes
 
Industry
 
Type
 
Acquisition Date
 
Shares/ Units
 
Cost
 
Fair Value (5)
 
% of of Net Assets
Equity Investments (1.00%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
ANLG Holdings, LLC
 
^
 
(6)
 
Healthcare & Pharmaceuticals
 
Common stock
 
6/22/2018
 
879,689

 
$
880

 
$
880

 
0.08
%
Avenu Holdings, LLC
 
^
 
(6)
 
Sovereign & Public Finance
 
Common stock
 
9/28/2018
 
172,413

 
172

 
165

 
0.02

CIP Revolution Holdings, LLC
 
^
 
(6)
 
Media: Advertising, Printing & Publishing
 
Common stock
 
8/19/2016
 
31,825

 
318

 
264

 
0.03

Dade Paper & Bag, LLC
 
^
 
(6)
 
Forest Products & Paper
 
Common stock
 
6/9/2017
 
1,500,000

 
1,500

 
2,903

 
0.27

DecoPac, Inc.
 
^
 
(6)
 
Non-durable Consumer Goods
 
Common stock
 
9/29/2017
 
1,500,000

 
1,500

 
1,784

 
0.17

Derm Growth Partners III, LLC (Dermatology Associates)
 
^
 
(6)
 
Healthcare & Pharmaceuticals
 
Common stock
 
5/31/2016
 
1,000,000

 
1,000

 
138

 
0.01

GRO Sub Holdco, LLC (Grand Rapids)
 
^
 
(6)
 
Healthcare & Pharmaceuticals
 
Common stock
 
3/29/2018
 
500,000

 
500

 
220

 
0.02

Legacy.com, Inc.
 
^
 
(6)
 
High Tech Industries
 
Common stock
 
3/20/2017
 
1,500,000

 
1,500

 
941

 
0.09

Mailgun Technologies, Inc.
 
^
 
(6)
 
High Tech Industries
 
Common stock
 
3/26/2019
 
423,729

 
424

 
424

 
0.04

North Haven Goldfinch Topco, LLC
 
^
 
(6)
 
Containers, Packaging & Glass
 
Common stock
 
6/18/2018
 
2,314,815

 
2,315

 
2,362

 
0.22

Power Stop Intermediate Holdings, LLC
 
^
 
(6)
 
Automotive
 
Common stock
 
5/29/2015
 
7,150

 

 
34

 

PPC Flexible Packaging, LLC
 
^
 
(6)
 
Containers, Packaging & Glass
 
Common stock
 
2/1/2019
 
965

 
965

 
965

 
0.09

Rough Country, LLC
 
^
 
(6)
 
Durable Consumer Goods
 
Common stock
 
5/25/2017
 
754,775

 
755

 
1,040

 
0.10

SiteLock Group Holdings, LLC
 
^
 
(6)
 
High Tech Industries
 
Common stock
 
4/5/2018
 
446,429

 
446

 
552

 
0.06

T2 Systems Parent Corporation
 
^
 
(6)
 
Transportation: Consumer
 
Common stock
 
9/28/2016
 
555,556

 
556

 
571

 
0.06

Tailwind HMT Holdings Corp.
 
^
 
(6)
 
Energy: Oil & Gas
 
Common stock
 
11/17/2017