CCAP 10-Q Quarter ended Sept. 30, 2020

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

(State or Other Jurisdiction of

Incorporation or Organization)

(I.R.S. Employer

Identification No.)

Title of each class

Trading

Symbol

Name of each exchange on which registered

Large accelerated filer

☐

Accelerated filer

☐

Non-Accelerated filer

☒

Smaller reporting company

☐

Emerging growth company

☒

INDEX

uncertainty surrounding the financial stability of the United States, Europe and China;

the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments;

potential fluctuation in quarterly operating results;

potential impact of economic recessions or downturns;

adverse developments in the credit markets;

regulations governing our operation as a business development company;

operation in a highly competitive market for investment opportunities;

changes in interest rates may affect our cost of capital and net investment income;

financing investments with borrowed money;

potential adverse effects of price declines and illiquidity in the corporate debt markets;

the impact of COVID-19 on our portfolio companies and the markets in which they operate, interest rates and the economy in general;

lack of liquidity in investments;

the outcome and impact of any litigation;

the timing, form and amount of any dividend distributions;

risks regarding distributions;

potential adverse effects of new or modified laws and regulations;

the social, geopolitical, financial, trade and legal implications of Brexit;

potential resignation of the Adviser and or the Administrator;

uncertainty as to the value of certain portfolio investments;

defaults by portfolio companies;

our ability to successfully complete and integrate any acquisitions;

risks associated with original issue discount (“OID”) and payment-in-kind (“PIK”) interest income; and

the market price of our common stock may fluctuate significantly.

Assets

Investments, at fair value

Non-controlled non-affiliated (cost of $904,002 and $675,329, respectively)

Non-controlled affiliated (cost of $32,308 and $19,766, respectively)

Controlled (cost of $39,000 and $34,000, respectively)

Cash and cash equivalents

Restricted cash and cash equivalents

Interest receivable

Unrealized appreciation on foreign currency forward contracts

Receivable for investments sold

Deferred tax assets

Other assets

Total assets

Liabilities

Debt (net of deferred financing costs of $4,645 and $3,431, respectively)

Distributions payable

Interest and other debt financing costs payable

Accrued expenses and other liabilities

Management fees payable

Deferred tax liabilities

Unrealized depreciation on foreign currency forward contracts

Directors’ fees payable

Total liabilities

Commitments and Contingencies (Note 8)

Net Assets

Paid-in capital in excess of par value

Accumulated loss

Total Net Assets

Total Liabilities and Net Assets

Net asset value per share

Investment Income:

From non-controlled non-affiliated investments:

Interest income

Paid-in-kind interest

Dividend income

Other income

From non-controlled affiliated investments:

Interest income

Paid-in-kind interest

Dividend Income

From controlled investments:

Dividend income

Total investment income

Expenses:

Interest and other debt financing costs

Management fees

Incentive fees

Professional fees

Directors’ fees

Organization expenses

Other general and administrative expenses

Total expenses

Management fee waiver

Incentive fee waiver

Net expenses

Net investment income before taxes

Income and excise taxes

Net investment income

Net realized and unrealized gains (losses) on investments:

Net realized gain (loss) on:

Non-controlled non-affiliated investments

Non-controlled affiliated investments

Foreign currency transactions

Net change in unrealized appreciation (depreciation) on:

Non-controlled non-affiliated investments and foreign currency translation

Non-controlled affiliated investments

Controlled investments

Foreign currency forward contracts

Net realized and unrealized gains (losses) on investments

Realized loss on asset acquisition

Net realized and unrealized gains (losses) on investments and asset acquisition

Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments

Net increase (decrease) in net assets resulting from operations

Per Common Share Data:

Net increase in net assets resulting from operations per share (basic and diluted):

Net investment income per share (basic and diluted):

Weighted average shares outstanding (basic and diluted):

Cash flows from operating activities:

Net increase (decrease) in net assets resulting from operations

Adjustments to reconcile net increase (decrease) in net assets resulting from

operations to net cash provided by (used for) operating activities:

Purchases of investments

Paid-in-kind interest income

Proceeds from sales of investments and principal repayments

Net realized (gain) loss on investments and foreign currency transactions

Realized loss on asset acquisition ⁽²⁾

Acquisition of Alcentra Capital Corporation, net of cash acquired ⁽²⁾

Net change in unrealized (appreciation) depreciation on investments and foreign currency translation

Net change in unrealized (appreciation) depreciation on foreign currency forward contracts

Amortization of premium and accretion of discount, net

Amortization of deferred financing costs

Change in operating assets and liabilities:

(Increase) decrease in receivable for investments sold

(Increase) decrease in interest receivable

(Increase) decrease in deferred tax asset

(Increase) decrease in other assets

Increase (decrease) in payable for investments purchased

Increase (decrease) in management fees payable

Increase (decrease) in directors’ fees payable

Increase (decrease) in interest and credit facility fees and expenses payable

Increase (decrease) in deferred tax liability

Increase (decrease) in accrued expenses and other liabilities

Net cash provided by (used for) operating activities

Cash flows from financing activities:

Issuance of common stock

Repurchase of common stock

Financing costs paid related to revolving credit facilities

Distributions paid

Equity offering costs

Borrowings on debt

Repayments on debt

Repayments on InterNotes ^®

Net cash provided by (used for) financing activities

Effect of exchange rate changes on cash denominated in foreign currency

Net increase (decrease) in cash, cash equivalents, restricted cash and foreign currency

Cash, cash equivalents, restricted cash and foreign currency, beginning of period

Cash, cash equivalents, restricted cash and foreign currency, end of period ⁽¹⁾

Supplemental and non-cash financing activities:

Cash paid during the period for interest

Issuance of common stock pursuant to dividend reinvestment plan

Accrued but unpaid equity offering costs

Accrued but unpaid distributions

Issuance of shares in connection with asset acquisition (Note 13) ⁽²⁾

As of September 30, 2020, the balance included cash and cash equivalents of $3,047 (including cash denominated in foreign currency of $861) and restricted cash and cash equivalents of $8,522, respectively. As of September 30, 2019, the balance included cash and cash equivalents of $6,955 (including cash denominated in foreign currency of $503) and restricted cash and cash equivalents of $11,128, respectively.

After the close of business on January 31, 2020, in connection with the Alcentra Acquisition (as defined in Note 1 and further discussed in Note 13), the Company acquired net assets of $114,431, which included $195,682 of investments, $3,409 of cash and cash equivalents and $1,398 of other assets, net of $86,058 of assumed liabilities, for total cash and stock consideration of $118,256, inclusive of $7,250 of asset acquisition costs.

Company/Security/Country

Investment Type

Investments ^{(1) (2)}

United States

Debt Investments

Automobiles & Components

Auto-Vehicle Parts, LLC ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

Auto-Vehicle Parts, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Continental Battery Company ⁽³⁾

Senior Secured First Lien Delayed Draw Term Loan

Continental Battery Company ^{(3) (5)}

Senior Secured First Lien Delayed Draw Term Loan

Continental Battery Company ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

Continental Battery Company ⁽³⁾

Senior Secured First Lien Term Loan

Empire Auto Parts, LLC ^{(3) (4) (5) (6)}

Unitranche First Lien Revolver

Empire Auto Parts, LLC ⁽³⁾

Unitranche First Lien Term Loan

Empire Auto Parts, LLC ⁽³⁾

Unitranche First Lien Term Loan

POC Investors, LLC ^{(3) (5) (6)}

Senior Secured First Lien Revolver

POC Investors, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Capital Goods

Envocore Holding, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Potter Electric Signal Company ^{(3) (4) (6) (10)}

Senior Secured First Lien Delayed Draw Term Loan

Potter Electric Signal Company ^{(3) (6) (11)}

Senior Secured First Lien Revolver

Potter Electric Signal Company ⁽³⁾

Senior Secured First Lien Term Loan

Potter Electric Signal Company ⁽³⁾

Senior Secured First Lien Term Loan

Commercial & Professional Services

ASP MCS Acquisition Corp. ⁽¹²⁾

Senior Secured First Lien Term Loan

Battery Solutions, Inc. ^{(3) (13)}

Unsecured Debt

BFC Solmetex LLC & Bonded Filter Co.
LLC ^{(3) (5)}

Unitranche First Lien Revolver

BFC Solmetex LLC & Bonded Filter Co.
LLC ^{(3) (5)}

Unitranche First Lien Revolver

BFC Solmetex LLC & Bonded Filter Co. LLC ⁽³⁾

Unitranche First Lien Term Loan

BFC Solmetex LLC & Bonded Filter Co. LLC ⁽³⁾

Unitranche First Lien Term Loan

CHA Holdings, Inc. ⁽³⁾

Senior Secured First Lien Delayed Draw Term Loan

CHA Holdings, Inc. ⁽³⁾

Senior Secured First Lien Term Loan

Consolidated Label Co., LLC ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

Consolidated Label Co., LLC ⁽³⁾

Senior Secured First Lien Term Loan

Company/Security/Country

Investment Type

DFS Intermediate Holdings, LLC ^{(3) (5) (6)}

Senior Secured First Lien Delayed Draw Term Loan

DFS Intermediate Holdings, LLC ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

DFS Intermediate Holdings, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Digital Room Holdings, Inc.

Senior Secured First Lien Term Loan

GH Holding Company ⁽³⁾

Senior Secured First Lien Term Loan

GI Revelation Acquisition, LLC

Senior Secured First Lien Term Loan

Hepaco, LLC ^{(3) (6) (10)}

Senior Secured First Lien Delayed Draw Term Loan

Hepaco, LLC ^{(3) (5) (6)}

Senior Secured First Lien Revolver

Hepaco, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Hsid Acquisition, LLC ^{(3) (10)}

Senior Secured First Lien Delayed Draw Term Loan

Hsid Acquisition, LLC ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

Hsid Acquisition, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Impact Group, LLC ⁽³⁾

Senior Secured First Lien Term Loan

Impact Sales, LLC ⁽³⁾

Senior Secured First Lien Delayed Draw Term Loan

Institutional Shareholder Services, Inc. ⁽³⁾

Senior Secured First Lien Term Loan

Institutional Shareholder Services, Inc. ⁽³⁾

Senior Secured Second Lien Term Loan

ISS Compressors Industries, Inc. ^{(3) (5) (6)}

Senior Secured First Lien Revolver

ISS Compressors Industries, Inc. ⁽³⁾

Senior Secured First Lien Term Loan

Jordan Healthcare, Inc. ⁽³⁾

Senior Secured First Lien Delayed Draw Term Loan

Jordan Healthcare, Inc. ⁽³⁾

Senior Secured First Lien Revolver

Jordan Healthcare, Inc. ⁽³⁾

Senior Secured First Lien Term Loan

MHS Acquisition Holdings, LLC ⁽³⁾

Senior Secured Second Lien Delayed Draw Term Loan

MHS Acquisition Holdings, LLC ⁽³⁾

Senior Secured Second Lien Term Loan

MHS Acquisition Holdings, LLC ⁽³⁾

Unsecured Debt

MHS Acquisition Holdings, LLC ⁽³⁾

Unsecured Debt

Pinstripe Holdings, LLC ⁽³⁾

Unitranche First Lien Term Loan

Pye-Barker Fire & Safety, LLC ^{(3) (16)}

Unitranche First Lien Delayed Draw Term Loan

Pye-Barker Fire & Safety, LLC ⁽³⁾

Unitranche First Lien Term Loan

Receivable Solutions, Inc. ^{(3) (4) (5) (6)}

Senior Secured First Lien Revolver

Company/Security/Country

Investment Type

Receivable Solutions, Inc. ⁽³⁾

Senior Secured First Lien Term Loan