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, 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. 814-00995

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
The Nasdaq Global Select Market
The number of shares of the registrant’s common stock, $0.01 par value per share, outstanding at November 5, 2019 was 59,013,476.




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, 2019
 
December 31, 2018
ASSETS
(unaudited)
 
 
Investments, at fair value
 
 
 
Investments—non-controlled/non-affiliated, at fair value (amortized cost of $1,986,926 and $1,799,751, respectively)
$
1,893,216

 
$
1,731,319

Investments—non-controlled/affiliated, at fair value (amortized cost of $0 and $13,839, respectively)
6,607

 
18,543

Investments—controlled/affiliated, at fair value (amortized cost of $241,705 and $230,001, respectively)
226,865

 
222,295

Total investments, at fair value (amortized cost of $2,228,631 and $2,043,591, respectively)
2,126,688

 
1,972,157

Cash and cash equivalents
70,281

 
87,186

Receivable for investment sold
5,725

 
8,060

Deferred financing costs
4,687

 
3,950

Interest receivable from non-controlled/non-affiliated investments
11,561

 
5,853

Interest receivable from non-controlled/affiliated investments

 
3

Interest and dividend receivable from controlled/affiliated investments
6,951

 
7,405

Prepaid expenses and other assets
97

 
129

Total assets
$
2,225,990

 
$
2,084,743

LIABILITIES
 
 
 
Secured borrowings (Note 6)
$
756,511

 
$
514,635

Notes payable, net of unamortized debt issuance costs of $2,972 and $3,157, respectively (Note 7)
446,228

 
446,043

Payable for investments purchased
11

 
1,870

Due to Investment Adviser
142

 
236

Interest and credit facility fees payable (Notes 6 and 7)
7,680

 
7,500

Dividend payable (Note 9)
21,825

 
35,497

Base management and incentive fees payable (Note 4)
13,726

 
13,834

Administrative service fees payable (Note 4)
66

 
94

Other accrued expenses and liabilities
1,200

 
1,816

Total liabilities
1,247,389

 
1,021,525

Commitments and contingencies (Notes 8 and 11)
 
 
 
NET ASSETS
 
 
 
Common stock, $0.01 par value; 200,000,000 shares authorized; 59,013,476 shares and 62,230,251 shares issued and outstanding at September 30, 2019 and December 31, 2018, respectively
590

 
622

Paid-in capital in excess of par value
1,126,845

 
1,174,334

Offering costs
(1,633
)
 
(1,633
)
Total distributable earnings (loss)
(147,201
)
 
(110,105
)
Total net assets
$
978,601

 
$
1,063,218

NET ASSETS PER SHARE
$
16.58

 
$
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
 
For the nine month periods ended
 
September 30, 2019
 
September 30, 2018
 
September 30, 2019
 
September 30, 2018
Investment income:
 
 
 
 
 
 
 
From non-controlled/non-affiliated investments:
 
 
 
 
 
 
 
Interest income
$
47,118

 
$
41,736

 
$
139,584

 
$
122,722

Other income
1,756

 
1,925

 
6,050

 
6,410

Total investment income from non-controlled/non-affiliated investments
48,874

 
43,661

 
145,634

 
129,132

From non-controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
446

 
418

 
1,209

 
1,303

Total investment income from non-controlled/affiliated investments
446

 
418

 
1,209

 
1,303

From controlled/affiliated investments:
 
 
 
 
 
 
 
Interest income
2,459

 
3,401

 
9,240

 
9,230

Dividend income
4,000

 
3,800

 
11,750

 
11,550

Total investment income from controlled/affiliated investments
6,459

 
7,201

 
20,990

 
20,780

Total investment income
55,779

 
51,280

 
167,833

 
151,215

Expenses:
 
 
 
 
 
 
 
Base management fees (Note 4)
8,016

 
7,543

 
23,614

 
22,031

Incentive fees (Note 4)
5,710

 
5,449

 
17,489

 
16,763

Professional fees
534

 
869

 
1,879

 
2,590

Administrative service fees (Note 4)
61

 
179

 
442

 
550

Interest expense (Notes 6 and 7)
13,538

 
10,372

 
38,561

 
26,896

Credit facility fees (Note 6)
545

 
583

 
1,784

 
1,689

Directors’ fees and expenses
88

 
92

 
269

 
283

Other general and administrative
483

 
478

 
1,338

 
1,318

Total expenses
28,975

 
25,565

 
85,376

 
72,120

Net investment income (loss) before taxes
26,804

 
25,715

 
82,457

 
79,095

Excise tax expense
49

 
30

 
169

 
70

Net investment income (loss)
26,755

 
25,685

 
82,288

 
79,025

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments:
 
 
 
 
 
 
 
Net realized gain (loss) from:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(10,909
)
 
(4,633
)
 
(8,600
)
 
(2,987
)
Controlled/affiliated investments

 

 
(9,091
)
 

Net change in unrealized appreciation (depreciation) on investments:
 
 
 
 
 
 
 
Non-controlled/non-affiliated investments
(22,343
)
 
(14,795
)
 
(34,074
)
 
(36,121
)
Non-controlled/affiliated investments
(48
)
 
(76
)
 
1,903

 
1,220

Controlled/affiliated investments
(2,850
)
 
(101
)
 
1,662

 
(862
)
Net change in unrealized currency gains (losses) on non-investment assets and liabilities
406

 

 
406

 

Net realized gain (loss) and net change in unrealized appreciation (depreciation) on investments and non-investment assets and liabilities
(35,744
)
 
(19,605
)
 
(47,794
)
 
(38,750
)
Net increase (decrease) in net assets resulting from operations
$
(8,989
)
 
$
6,080

 
$
34,494

 
$
40,275

Basic and diluted earnings per common share (Note 9)
$
(0.15
)
 
$
0.10

 
$
0.57

 
$
0.64

Weighted-average shares of common stock outstanding—Basic and Diluted (Note 9)
59,587,941

 
62,568,651

 
60,644,479

 
62,546,168

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, 2019
 
September 30, 2018
Increase (decrease) in net assets resulting from operations:
 
 
 
Net investment income (loss)
$
82,288

 
$
79,025

Net realized gain (loss) on investments
(17,691
)
 
(2,987
)
Net change in unrealized appreciation (depreciation) on investments and non-investment assets and liabilities
(30,103
)
 
(35,763
)
Net increase (decrease) in net assets resulting from operations
34,494

 
40,275

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

 
(15
)
Reinvestment of dividends

 
6,629

Repurchase of common stock
(47,521
)
 

Dividends declared (Note 12)
(71,590
)
 
(69,451
)
Net increase (decrease) in net assets resulting from capital share transactions
(119,111
)
 
(62,837
)
Net increase (decrease) in net assets
(84,617
)
 
(22,562
)
Net assets at beginning of period
1,063,218

 
1,127,304

Net assets at end of period
$
978,601

 
$
1,104,742


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, 2019
 
September 30, 2018
Cash flows from operating activities:
 
 
 
Net increase (decrease) in net assets resulting from operations
$
34,494

 
$
40,275

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
931

 
1,601

Net accretion of discount on investments
(9,012
)
 
(8,636
)
Paid-in-kind interest
(6,841
)
 
(3,049
)
Net realized (gain) loss on investments
17,691

 
2,987

Net change in unrealized (appreciation) depreciation on investments
30,509

 
35,763

Net change in unrealized currency (gains) losses on non-investment assets and liabilities
(406
)
 

Cost of investments purchased and change in payable for investments purchased
(707,910
)
 
(632,498
)
Proceeds from sales and repayments of investments and change in receivable for investments sold
521,508

 
551,819

Changes in operating assets:
 
 
 
Interest receivable
(5,705
)
 
263

Dividend receivable
454

 
(960
)
Prepaid expenses and other assets
32

 
(244
)
Changes in operating liabilities:
 
 
 
Due to Investment Adviser
(94
)
 
62

Interest and credit facility fees payable
180

 
(875
)
Base management and incentive fees payable
(108
)
 
(106
)
Administrative service fees payable
(28
)
 
21

Other accrued expenses and liabilities
(616
)
 
(314
)
Net cash provided by (used in) operating activities
(124,921
)
 
(13,891
)
Cash flows from financing activities:
 
 
 
Proceeds from issuance of common stock, net of offering and underwriting costs

 
(15
)
Repurchase of common stock
(47,521
)
 

Borrowings on SPV Credit Facility and Credit Facility
590,179

 
681,650

Repayments of SPV Credit Facility and Credit Facility
(347,897
)
 
(690,244
)
Proceeds from issuance of 2015-1R Notes

 
449,200

Redemption of 2015-1 Notes

 
(273,000
)
Debt issuance costs paid
(1,483
)
 
(2,675
)
Dividends paid in cash
(85,262
)
 
(70,153
)
Net cash provided by (used in) financing activities
108,016

 
94,763

Net increase (decrease) in cash and cash equivalents
(16,905
)
 
80,872

Cash and cash equivalents, beginning of period
87,186

 
32,039

Cash and cash equivalents, end of period
$
70,281

 
$
112,911

Supplemental disclosures:
 
 
 
Debt issuance costs payable
$

 
$
771

Interest paid during the period
$
38,244

 
$
26,969

Taxes, including excise tax, paid during the period
$
169

 
$
105

Dividends declared during the period
$
71,590

 
$
69,451

Reinvestment of dividends
$

 
$
6,629



6



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

7

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS
As of September 30, 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 (77.08%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Aero Operating, LLC (Dejana Industries, Inc.)
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 7.25%
 
9.29%
 
1/5/2018
 
12/29/2022
 
$
3,307

 
$
3,274

 
$
3,282

 
0.33
 %
 
Alpha Packaging Holdings, Inc.
 
+*
 
(2) (3)
 
Containers, Packaging & Glass
 
L + 4.25%
 
6.35%
 
6/26/2015
 
5/12/2020
 
2,844

 
2,839

 
2,838

 
0.29

 
Alpine SG, LLC
 
^*
 
(2) (3)
 
High Tech Industries
 
L + 5.50%
 
7.76%
 
2/2/2018
 
11/16/2022
 
15,301

 
15,158

 
15,345

 
1.57

 
American Physician Partners, LLC
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.50%
 
8.60%
 
1/7/2019
 
12/21/2021
 
38,401

 
37,938

 
38,509

 
3.94

 
AMS Group HoldCo, LLC
 
^+*
 
(2) (3) (13)
 
Transportation: Cargo
 
L + 6.00%
 
8.07%
 
9/29/2017
 
9/29/2023
 
30,853

 
30,340

 
30,472

 
3.11

 
Analogic Corporation
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.04%
 
6/22/2018
 
6/22/2024
 
35,320

 
34,692

 
34,737

 
3.55

 
Anchor Hocking, LLC
 
^
 
(2) (3)
 
Durable Consumer Goods
 
L + 8.25%
 
10.50%
 
1/25/2019
 
1/25/2024
 
10,996

 
10,663

 
10,639

 
1.09

 
Apptio, Inc.
 
^
 
(2) (3) (13)
 
Software
 
L + 7.25%
 
9.56%
 
1/10/2019
 
1/10/2025
 
35,541

 
34,803

 
34,972

 
3.57

 
Avenu Holdings, LLC
 
+*
 
(2) (3)
 
Sovereign & Public Finance
 
L + 5.25%
 
7.35%
 
9/28/2018
 
9/28/2024
 
38,763

 
38,141

 
37,441

 
3.83

 
Barnes & Noble, Inc.
 
^
 
(2) (3) (11)
 
Retail
 
L + 5.50%
 
7.68%
 
8/7/2019
 
8/7/2024
 
17,860

 
17,403

 
17,414

 
1.78

 
BMS Holdings III Corp.
 
^
 
(2) (3) (13)
 
Construction & Building
 
L + 5.25%
 
7.35%
 
9/30/2019
 
9/30/2026
 
11,667

 
11,277

 
11,292

 
2.31

 
Brooks Equipment Company, LLC
 
+*
 
(2) (3)
 
Construction & Building
 
L + 5.00%
 
7.12%
 
6/26/2015
 
8/29/2020
 
2,502

 
2,494

 
2,500

 
0.25

 
Capstone Logistics Acquisition, Inc.
 
+*
 
(2) (3)
 
Transportation: Cargo
 
L + 4.50%
 
6.54%
 
6/26/2015
 
10/7/2021
 
7,976

 
7,929

 
7,927

 
0.81

 
Captive Resources Midco, LLC
 
^*
 
(2) (3) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.20%
 
6/30/2015
 
5/31/2025
 
29,009

 
28,843

 
28,736

 
2.94

 
Central Security Group, Inc.
 
+*
 
(2) (3)
 
Consumer Services
 
L + 5.63%
 
7.67%
 
6/26/2015
 
10/6/2021
 
23,301

 
23,152

 
22,975

 
2.35

 
Chartis Holding, LLC
 
^
 
(2) (3) (13)
 
Business Services
 
L + 5.00%
 
7.03%
 
5/1/2019
 
4/1/2025
 
15,966

 
15,541

 
16,060

 
1.64

 
Chemical Computing Group ULC (Canada)
 
^*
 
(2) (3) (7) (13)
 
Software
 
L + 5.25%
 
7.29%
 
8/30/2018
 
8/30/2023
 
15,676

 
15,534

 
15,556

 
1.59

 
CircusTrix Holdings, LLC
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 5.50%
 
7.54%
 
2/2/2018
 
12/16/2021
 
9,421

 
9,352

 
9,288

 
0.95

 
Comar Holding Company, LLC
 
^*
 
(2) (3) (13)
 
Containers, Packaging & Glass
 
L + 5.25%
 
7.30%
 
6/18/2018
 
6/18/2024
 
27,409

 
26,817

 
27,115

 
2.77

 
Continuum Managed Services Holdco, LLC
 
^+*
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.00%
 
8.05%
 
6/20/2017
 
6/8/2023
 
28,028

 
27,451

 
27,988

 
2.86

 
Cority Software Inc. (Canada)
 
^*
 
(2) (3) (7) (13)
 
Software
 
L + 5.50%
 
7.82%
 
7/2/2019
 
7/2/2026
 
27,000

 
26,383

 
26,400

 
2.70

 
Dent Wizard International Corporation
 
+
 
(2) (3)
 
Automotive
 
L + 4.00%
 
6.05%
 
4/28/2015
 
4/7/2022
 
879

 
878

 
876

 
0.09

 
Derm Growth Partners III, LLC (Dermatology Associates)
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 7.25% (100% PIK)
 
9.35%
 
5/31/2016
 
5/31/2022
 
56,324

 
55,943

 
38,917

 
3.98


8

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 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 (77.08%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
DermaRite Industries, LLC
 
^*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 7.00%
 
9.02%
 
3/3/2017
 
3/3/2022
 
$
22,800

 
$
22,587

 
$
22,137

 
2.26
 %
 
Digicel Limited
 
^+*
 

 
Telecommunications
 
6.00%
 
6.00%
 
7/23/2019
 
4/15/2021
 
250

 
194

 
176

 
0.02

 
Dimensional Dental Management, LLC
 
^
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.75%
 
10.00%
 
7/22/2019
 
7/22/2020
 

 
(25
)
 

 

 
Dimensional Dental Management, LLC
 
^
 
(2) (3) (9) (11)
 
Healthcare & Pharmaceuticals
 
L + 6.75%
 
8.84%
 
2/12/2016
 
2/12/2021
 
33,674

 
33,300

 
1,000

 
0.10

 
Direct Travel, Inc.
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 6.50%
 
8.65%
 
10/14/2016
 
12/1/2021
 
35,546

 
35,174

 
35,454

 
3.62

 
DTI Holdco, Inc.
 
*
 
(2) (3)
 
High Tech Industries
 
L + 4.75%
 
7.01%
 
12/18/2018
 
9/30/2023
 
1,980

 
1,868

 
1,806

 
0.18

 
EIP Merger Sub, LLC (Evolve IP)
 
^+*
 
(2) (3) (11)
 
Telecommunications
 
L + 5.75%
 
7.79%
 
6/7/2016
 
6/7/2022
 
41,370

 
40,667

 
41,089

 
4.20

 
Emergency Communications Network, LLC
 
^+*
 
(2) (3)
 
Telecommunications
 
L + 6.25%
 
8.29%
 
6/1/2017
 
6/1/2023
 
24,438

 
24,256

 
22,866

 
2.34

 
Ensono, LP
 
*
 
(2) (3)
 
Telecommunications
 
L + 5.25%
 
7.29%
 
4/30/2018
 
6/27/2025
 
8,558

 
8,547

 
8,484

 
0.87

 
Ethos Veterinary Health LLC
 
^+
 
(2) (3) (13)
 
Consumer Services
 
L + 4.75%
 
7.04%
 
5/17/2019
 
5/17/2026
 
10,888

 
10,744

 
10,903

 
1.11

 
Frontline Technologies Holdings, LLC
 
^
 
(2) (3)
 
Software
 
L + 6.50%
 
8.60%
 
9/18/2017
 
9/18/2023
 
48,351

 
47,978

 
48,235

 
4.93

 
FWR Holding Corporation
 
^+*
 
(2) (3) (13)
 
Beverage, Food & Tobacco
 
L + 5.50%
 
7.55%
 
8/21/2017
 
8/21/2023
 
46,078

 
45,296

 
46,023

 
4.70

 
Green Energy Partners/Stonewall, LLC
 
+*
 
(2) (3)
 
Energy: Electricity
 
L + 5.50%
 
7.60%
 
6/26/2015
 
11/10/2021
 
19,600

 
19,377

 
19,098

 
1.95

 
GRO Sub Holdco, LLC (Grand Rapids)
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.10%
 
2/28/2018
 
2/22/2023
 
6,606

 
6,509

 
6,118

 
0.63

 
Hummel Station, LLC
 
+*
 
(2) (3)
 
Energy: Electricity
 
L + 6.00%
 
8.04%
 
2/3/2016
 
10/27/2022
 
14,678

 
14,149

 
12,728

 
1.30

 
Hydrofarm, LLC
 
^
 
(2) (3)
 
Wholesale
 
L+10.00% (30% cash/70% PIK)
 
12.15%
 
5/15/2017
 
5/12/2022
 
21,038

 
20,698

 
12,674

 
1.30

 
iCIMS, Inc.
 
^
 
(2) (3) (13)
 
Software
 
L + 6.50%
 
8.56%
 
9/12/2018
 
9/12/2024
 
23,930

 
23,459

 
23,655

 
2.42

 
Innovative Business Services, LLC
 
^*
 
(2) (3) (13)
 
High Tech Industries
 
L + 5.50%
 
7.80%
 
4/5/2018
 
4/5/2023
 
16,183

 
15,785

 
15,897

 
1.62

 
Kaseya Luxembourg Holdings S.C.A. (Luxembourg)
 
^
 
(2) (3) (7) (13)
 
High Tech Industries
 
L + 5.50%, 1.00% PIK
 
8.60%
 
5/3/2019
 
5/5/2025
 
19,088

 
18,649

 
18,803

 
1.92

 
K2 Insurance Services, LLC
 
^
 
(2) (3) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.00%
 
7.19%
 
7/3/2019
 
7/1/2024
 
22,082

 
21,487

 
22,177

 
2.26

 
Legacy.com, Inc.
 
^
 
(2)(3)(11)
 
High Tech Industries
 
L + 6.00%, 1.00% PIK
 
9.10%
 
3/20/2017
 
3/20/2023
 
17,000

 
16,714

 
15,435

 
1.58

 
Liqui-Box Holdings, Inc.
 
^
 
(2) (3) (13)
 
Containers, Packaging & Glass
 
L + 4.50%
 
6.59%
 
6/3/2019
 
6/3/2024
 

 
(26
)
 
(46
)
 

 
Mailgun Technologies, Inc.
 
^*
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.00%
 
8.11%
 
3/26/2019
 
3/26/2025
 
11,468

 
11,206

 
11,212

 
1.15

 
Metrogistics, LLC
 
+*
 
(2) (3)
 
Transportation: Cargo
 
L + 6.25%
 
8.35%
 
12/13/2016
 
9/30/2022
 
17,076

 
16,921

 
17,047

 
1.74


9

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 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 (77.08%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
National Carwash Solutions, Inc.
 
^+
 
(2) (3) (13)
 
Automotive
 
L + 6.00%
 
8.10%
 
8/7/2018
 
4/28/2023
 
$
8,431

 
$
8,260

 
$
8,225

 
0.84
 %
 
National Technical Systems, Inc.
 
^+*
 
(2) (3) (13)
 
Aerospace & Defense
 
L + 6.25%
 
8.35%
 
6/26/2015
 
6/12/2021
 
28,023

 
27,810

 
28,005

 
2.86

 
NES Global Talent Finance US, LLC (United Kingdom)
 
+*
 
(2) (3) (7)
 
Energy: Oil & Gas
 
L + 5.50%
 
7.76%
 
5/9/2018
 
5/11/2023
 
9,916

 
9,766

 
9,747

 
1.00

 
Nexus Technologies, LLC
 
*
 
(2) (3)
 
High Tech Industries
 
L + 5.50%
 
7.60%
 
12/11/2018
 
12/5/2023
 
6,187

 
6,124

 
5,965

 
0.61

 
NMI AcquisitionCo, Inc.
 
^+*
 
(2) (3) (13)
 
High Tech Industries
 
L + 6.00%
 
8.04%
 
9/6/2017
 
9/6/2022
 
50,272

 
49,559

 
49,953

 
5.10

 
North American Dental Management, LLC
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
P + 4.25%
 
9.25%
 
10/26/2018
 
7/7/2022
 
5,037

 
4,950

 
5,037

 
0.51

 
Northland Telecommunications Corporation
 
^*
 
(2) (3) (13)
 
Media: Broadcast & Subscription
 
L + 5.75%
 
7.79%
 
10/1/2018
 
10/1/2025
 
29,996

 
29,516

 
29,520

 
3.01

 
Paramit Corporation
 
+
 
(2) (3)
 
Capital Equipment
 
L + 4.50%
 
6.57%
 
5/3/2019
 
5/3/2025
 
7,163

 
7,087

 
7,169

 
0.73

 
PF Growth Partners, LLC
 
^
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 5.00%
 
7.08%
 
7/1/2019
 
7/11/2025
 
7,055

 
6,967

 
7,010

 
0.72

 
Plano Molding Company, LLC
 
^
 
(2) (3)
 
Hotel, Gaming & Leisure
 
L + 7.00%
 
9.04%
 
5/1/2015
 
5/12/2021
 
14,790

 
14,644

 
13,916

 
1.42

 
PPC Flexible Packaging, LLC
 
^+*
 
(2) (3) (13)
 
Containers, Packaging & Glass
 
L + 5.25%
 
7.29%
 
11/23/2018
 
11/23/2024
 
13,626

 
13,409

 
13,392

 
1.37

 
PPT Management Holdings, LLC
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 6.00%, 0.75% PIK
 
8.84%
 
12/15/2016
 
12/16/2022
 
27,753

 
27,591

 
23,199

 
2.37

 
Pretium Packaging, LLC
 
^+*
 
(2) (3)
 
Containers, Packaging & Glass
 
L + 5.00%
 
7.12%
 
8/15/2019
 
11/14/2023
 
7,719

 
7,635

 
7,662

 
0.78

 
PricewaterhouseCoopers Public Sector LLP
 
^
 
(2) (3) (13)
 
Aerospace & Defense
 
L + 3.25%
 
5.34%
 
5/1/2018
 
5/1/2023
 

 
(113
)
 
(79
)
 
(0.01
)
 
Prime Risk Partners, Inc.
 
^
 
(2) (3) (11)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.00%
 
7.04%
 
8/15/2017
 
8/13/2023
 
27,720

 
27,273

 
27,576

 
2.82

 
Prime Risk Partners, Inc.
 
^
 
(2) (3)
 
Banking, Finance, Insurance & Real Estate
 
L + 5.00%
 
7.04%
 
8/15/2017
 
8/13/2023
 
2,171

 
2,137

 
2,160

 
0.22

 
Product Quest Manufacturing, LLC
 
^
 
(2) (3) (9) (13)
 
Containers, Packaging & Glass
 
L + 6.75%
 
10.00%
 
9/21/2017
 
3/31/2020
 
840

 
840

 
840

 
0.09

 
Product Quest Manufacturing, LLC
 
^
 
(2) (3) (9) (11)
 
Containers, Packaging & Glass
 
L + 5.75%
 
7.75%
 
9/9/2015
 
9/9/2020
 
33,000

 
32,270

 

 

 
Propel Insurance Agency, LLC
 
^
 
(2) (3)
 
Banking, Finance, Insurance & Real Estate
 
L + 4.50%
 
6.60%
 
6/1/2018
 
6/1/2024
 
2,369

 
2,350

 
2,362

 
0.24

 
PSI Services, LLC
 
^
 
(2) (3)
 
Business Services
 
L + 5.00%
 
7.08%
 
9/19/2018
 
1/20/2023
 
4,505

 
4,449

 
4,505

 
0.46

 
QW Holding Corporation (Quala)
 
^+*
 
(2) (3) (13)
 
Environmental Industries
 
L + 5.75%
 
7.77%
 
8/31/2016
 
8/31/2022
 
39,229

 
38,622

 
39,012

 
3.99

 
Redwood Services Group, LLC
 
^*
 
(2) (3)
 
High Tech Industries
 
L + 6.00%
 
8.12%
 
11/13/2018
 
6/6/2023
 
7,708

 
7,638

 
7,613

 
0.78


10

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 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 (77.08%) (continued)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Riveron Acquisition Holdings, Inc.
 
+
 
(2) (3)
 
Banking, Finance, Insurance & Real Estate
 
L + 6.25%
 
8.35%
 
5/22/2019
 
5/22/2025
 
$
15,661

 
$
15,342

 
$
15,667

 
1.60
 %
 
Sapphire Convention, Inc. (Smart City)
 
^+*
 
(2) (3) (13)
 
Telecommunications
 
L + 5.25%
 
7.27%
 
11/20/2018
 
11/20/2025
 
28,649

 
28,022

 
28,414

 
2.90

 
Smile Doctors, LLC
 
^+*
 
(2) (3) (13)
 
Healthcare & Pharmaceuticals
 
L + 6.00%
 
8.09%
 
10/6/2017
 
10/6/2022
 
20,758

 
20,632

 
20,474

 
2.09

 
Sovos Brands Intermediate, Inc.
 
^
 
(2) (3)
 
Beverage, Food & Tobacco
 
L + 5.00%
 
7.20%
 
11/16/2018
 
11/20/2025
 
19,949

 
19,733

 
19,782

 
2.02

 
SPay, Inc.
 
^+*
 
(2) (3) (13)
 
Hotel, Gaming & Leisure
 
L + 5.75%
 
7.82%
 
6/15/2018
 
6/15/2024
 
20,511

 
20,137

 
18,532

 
1.89

 
Superior Health Linens, LLC
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 7.50%, 0.50% PIK
 
10.10%
 
9/30/2016
 
9/30/2021
 
21,882

 
21,695

 
19,500

 
1.99

 
Surgical Information Systems, LLC
 
^+*
 
(2) (3) (11)
 
High Tech Industries
 
L + 4.85%
 
6.89%
 
4/24/2017
 
4/24/2023
 
26,168

 
25,962

 
25,984

 
2.66

 
T2 Systems Canada, Inc.
 
+
 
(2) (3)
 
Transportation: Consumer
 
L + 6.75%
 
8.92%
 
5/24/2017
 
9/28/2022
 
3,938

 
3,877

 
3,926

 
0.40

 
T2 Systems, Inc.
 
^+*
 
(2) (3) (13)
 
Transportation: Consumer
 
L + 6.75%
 
8.92%
 
9/28/2016
 
9/28/2022
 
32,532

 
32,020

 
32,424

 
3.31

 
Tank Holding Corp.
 
^
 
(2) (3) (13)
 
Capital Equipment
 
L + 4.00%
 
6.05%
 
3/26/2019
 
3/26/2024
 
7

 
7

 
7

 

 
The Hilb Group, LLC
 
^
 
(2)(3)(11)(13)
 
Banking, Finance, Insurance & Real Estate
 
L + 6.00%
 
8.24%
 
6/24/2015
 
6/24/2021
 
66,939

 
66,187

 
66,133

 
6.76

 
The Leaders Romans Bidco Limited (United Kingdom)
 
^
 
(2) (3) (7) (13)
 
Banking, Finance, Insurance & Real Estate
 
L + 6.75%, 3.50% PIK
 
11.01%
 
7/23/2019
 
6/30/2024
 
£
19,765

 
23,905

 
23,489

 
2.40

 
Transform SR Holdings, LLC
 
^
 
(2) (3)
 
Retail
 
L + 7.25%
 
9.30%
 
2/11/2019
 
2/11/2024
 
19,050

 
18,853

 
18,861

 
1.93

 
Trump Card, LLC
 
^+*
 
(2) (3) (13)
 
Transportation: Cargo
 
L + 5.50%
 
7.60%
 
6/26/2018
 
4/21/2022
 
7,651

 
7,602

 
7,599

 
0.78

 
TSB Purchaser, Inc. (Teaching Strategies, LLC)
 
^+*
 
(2) (3) (13)
 
Media: Advertising, Printing & Publishing
 
L + 6.00%
 
8.10%
 
5/14/2018
 
5/14/2024
 
28,365

 
27,732

 
28,175

 
2.88

 
Tweddle Group, Inc.
 
^
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 4.50%
 
6.55%
 
9/17/2018
 
9/17/2023
 
2,080

 
2,052

 
2,033

 
0.21

 
U.S. Acute Care Solutions, LLC
 
+
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 5.00%, 1.00% PIK
 
8.20%
 
2/21/2019
 
5/17/2021
 
4,277

 
4,227

 
4,145

 
0.42

 
USLS Acquisition, Inc.
 
^*
 
(2) (3) (13)
 
Business Services
 
L + 5.75%
 
7.85%
 
11/30/2018
 
11/30/2024
 
22,193

 
21,750

 
21,779

 
2.23

 
Unifrutti Financing PLC (Cyprus)
 
^
 
(2) (3) (7)
 
Beverage, Food & Tobacco
 
7.50%, 1.00% PIK
 
8.50%
 
9/15/2019
 
9/15/2026
 
4,530

 
4,733

 
4,691

 
0.48

 
VRC Companies, LLC
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 6.50%
 
8.57%
 
3/31/2017
 
3/31/2023
 
57,257

 
56,658

 
56,935

 
5.82

 
Watchfire Enterprises, Inc.
 
^
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 4.25%
 
6.35%
 
6/9/2017
 
10/2/2020
 
1,196

 
1,193

 
1,196

 
0.12

 
Westfall Technik, Inc.
 
^
 
(2) (3) (13)
 
Chemicals, Plastics & Rubber
 
L + 5.75%
 
7.85%
 
9/13/2018
 
9/13/2024
 
27,153

 
26,551

 
25,934

 
2.65

 
WP CPP Holdings, LLC (CPP)
 
^
 
(2) (3) (13)
 
Aerospace & Defense
 
L + 3.75%
 
5.84%
 
7/18/2019
 
4/30/2025
 

 
(230
)
 
(163
)
 
(0.02
)
 
Zemax Software Holdings, LLC
 
^*
 
(2) (3) (13)
 
Software
 
L + 5.75%
 
7.85%
 
6/25/2018
 
6/25/2024
 
10,171

 
10,019

 
10,100

 
1.03

 
Zenith Merger Sub, Inc.
 
^+*
 
(2) (3) (13)
 
Business Services
 
L + 5.25%
 
7.35%
 
12/13/2017
 
12/13/2023
 
16,781

 
16,540

 
16,636

 
1.70

 
First Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
1,736,342

 
$
1,639,292

 
168.66
 %

11

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 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
 
 
Second Lien Debt (10.91%)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Access CIG, LLC
 
*
 
(2) (3)
 
Business Services
 
L + 7.75%
 
10.07%
 
2/14/2018
 
2/27/2026
 
$
2,700

 
$
2,683

 
$
2,687

 
0.27
 %
 
Aimbridge Acquisition Co., Inc.
 
^*
 
(2) (3)
 
Hotel, Gaming & Leisure
 
L + 7.50%
 
9.60%
 
2/1/2019
 
2/1/2027
 
7,727

 
7,607

 
7,542

 
0.77

 
AQA Acquisition Holding, Inc.
 
^
 
(2) (3)
 
High Tech Industries
 
L + 8.00%
 
10.32%
 
10/1/2018
 
5/24/2024
 
40,000

 
39,604

 
39,716

 
4.06

 
Brave Parent Holdings, Inc.
 
^*
 
(2) (3)
 
Software
 
L + 7.50%
 
9.76%
 
10/3/2018
 
4/19/2026
 
19,062

 
18,624

 
18,107

 
1.85

 
Jazz Acquisition, Inc.
 
^
 
(2) (3)
 
Aerospace & Defense
 
L + 8.00%
 
10.10%
 
6/13/2019
 
6/18/2027
 
23,450

 
23,079

 
23,071

 
2.36

 
Outcomes Group Holdings, Inc.
 
^*
 
(2) (3)
 
Business Services
 
L + 7.50%
 
9.62%
 
10/23/2018
 
10/26/2026
 
4,500

 
4,484

 
4,496

 
0.46

 
Pharmalogic Holdings Corp.
 
^
 
(2) (3)
 
Healthcare & Pharmaceuticals
 
L + 8.00%
 
10.04%
 
6/7/2018
 
12/11/2023
 
800

 
796

 
800

 
0.08

 
Quartz Holding Company (QuickBase, Inc.)
 
^
 
(2) (3)
 
Software
 
L + 8.00%
 
10.07%
 
4/2/2019
 
4/2/2027
 
11,900

 
11,657

 
11,812

 
1.21

 
Reladyne, Inc.
 
^+*
 
(2) (3) (13)
 
Wholesale
 
L + 9.50%
 
11.60%
 
4/19/2018
 
1/21/2023
 
12,242

 
12,053

 
12,259

 
1.25

 
Santa Cruz Holdco, Inc.
 
^
 
(2) (3)
 
Non-durable Consumer Goods
 
L + 8.25%
 
10.57%
 
12/15/2017
 
12/13/2024
 
17,138

 
16,976

 
17,064

 
1.74

 
Tank Holding Corp.
 
^
 
(2) (3)
 
Capital Equipment
 
L + 8.25%
 
10.34%
 
3/26/2019
 
3/26/2027
 
37,380

 
36,695

 
36,977

 
3.78

 
Ultimate Baked Goods MIDCO, LLC (Rise Baking)
 
^
 
(2) (3)
 
Beverage, Food & Tobacco
 
L + 8.00%
 
10.04%
 
8/9/2018
 
8/9/2026
 
8,333

 
8,172

 
8,224

 
0.84

 
Watchfire Enterprises, Inc.
 
^
 
(2) (3)
 
Media: Advertising, Printing & Publishing
 
L + 8.00%
 
10.10%
 
10/2/2013
 
10/2/2021
 
7,000

 
6,952

 
7,000

 
0.72

 
WP CPP Holdings, LLC (CPP)
 
^
 
(2) (3)
 
Aerospace & Defense
 
L + 7.75%
 
10.01%
 
7/18/2019
 
4/30/2026
 
39,500

 
39,065

 
39,239

 
4.01

 
Zywave, Inc.
 
^
 
(2) (3)
 
High Tech Industries
 
L + 9.00%
 
11.28%
 
11/18/2016
 
11/17/2023
 
3,141

 
3,105

 
3,141

 
0.32

 
Second Lien Debt Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
$
231,552

 
$
232,135

 
23.72
 %















12

TCG BDC, INC.
CONSOLIDATED SCHEDULE OF INVESTMENTS (Continued)
As of September 30, 2019
(dollar amounts in thousands)
(unaudited)