CCAP 10-Q Quarter ended Sept. 30, 2021

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

INDEX

PART I.

Item 1.

Item 2.

Item 3.

Item 4.

PART II.

Item 1.

Item 1A

Item 2.

Item 3.

Item 4.

Item 5.

Item 6.

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;

the impact of changes in London Interbank Offered Rate (“LIBOR”) on our operating results;

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 $1,030,512 and $920,693, respectively)

Non-controlled affiliated (cost of $42,997 and $50,431, respectively)

Controlled (cost of $40,000 and $40,000, respectively)

Cash and cash equivalents

Restricted cash and cash equivalents

Receivable for investments sold

Interest and dividend receivable

Unrealized appreciation on foreign currency forward contracts

Deferred tax assets

Other assets

Total assets

Liabilities

Debt (net of deferred financing costs of $4,830 and $4,600)

Distributions payable

Incentive fees payable

Interest and other debt financing costs payable

Management fees payable

Deferred tax liabilities

Unrealized depreciation on foreign currency forward contracts

Directors’ fees payable

Accrued expenses and other liabilities

Total liabilities

Commitments and Contingencies (Note 8)

Net assets

Paid-in capital in excess of par value

Accumulated earnings (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

Income based incentive fees

Capital gains based incentive fees

Professional fees

Directors’ fees

Other general and administrative expenses

Total expenses

Management fee waiver

Income based incentive fees 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

Foreign currency forward contracts

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 realized gain on investments

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 (decrease) 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):

Balance at June 30, 2021

Net increase (decrease) in net assets resulting from operations:

Net investment income

Balance at September 30, 2021

Distributions declared per share

Balance at June 30, 2020

Net increase (decrease) in net assets resulting from operations:

Net investment income

Distributions to stockholders

Total increase (decrease) for the three months ended September 30, 2020

Balance at September 30, 2020

Distributions declared

Balance at December 31, 2019

Net increase (decrease) net assets resulting from operations:

Net investment income

Repurchase of common stock

Distributions to stockholders

Balance at September 30, 2020

Distributions declared

Cash flows from operating activities:

Net increase (decrease) in net assets resulting from operations

Purchases of investments

Paid-in-kind interest income

Proceeds from sales of investments and principal repayments

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

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 management fees payable

Increase (decrease) in incentive fees payable

Increase (decrease) in directors’ fees payable

Increase (decrease) in interest and other debt financing costs 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

Deferred financing and debt issuance costs paid

Distributions paid

Borrowings on credit facilities

Repayments on credit facilities

Issuance of unsecured 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 distributions

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

As of September 30, 2021, the balance included cash and cash equivalents of $6,467 (including cash denominated in foreign currency of $1,899) and restricted cash and cash equivalents of $13,027 (including cash denominated in foreign currency of $131). 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.

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 cash and cash equivalents and $1,398 of other assets, net of $86,058 of assumed liabilities, for the 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 ⁽⁶⁾

Senior Secured First Lien Term Loan

Auto-Vehicle Parts, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

Continental Battery Company ⁽⁶⁾

Unitranche First Lien Term Loan

Continental Battery Company ^(3)(5)(6)(9)

Unitranche First Lien Delayed Draw Term Loan

Empire Auto Parts, LLC ⁽⁶⁾

Unitranche First Lien Term Loan

Empire Auto Parts, LLC ⁽⁶⁾

Unitranche First Lien Term Loan

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

Unitranche First Lien Revolver

Sun Acquirer Corp. ^(5)(6)(9)

Unitranche First Lien Delayed Draw Term Loan

Sun Acquirer Corp. ^(3)(4)(5)(6)

Unitranche First Lien Revolver

Sun Acquirer Corp. ⁽⁶⁾

Unitranche First Lien Term Loan

Capital Goods

Envocore Holding, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

Painters Supply & Equipment Company ^(3)(5)(6)(9)

Unitranche First Lien Delayed Draw Term Loan

Painters Supply & Equipment Company ^(3)(4)(5)(6)

Unitranche First Lien Revolver

Painters Supply & Equipment Company ⁽⁶⁾

Unitranche First Lien Term Loan

Potter Electric Signal Company ^(5)(6)(9)

Senior Secured First Lien Delayed Draw Term Loan

Potter Electric Signal Company ^(3)(4)(5)

Senior Secured First Lien Revolver

Potter Electric Signal Company ⁽⁶⁾

Senior Secured First Lien Term Loan

Potter Electric Signal Company ⁽⁶⁾

Senior Secured First Lien Term Loan

Commercial & Professional Services

ASP MCS Acquisition Corp. ^(6)(10)

Senior Secured Second Lien Term Loan

Battery Solutions, Inc. ^(6)(10)

Unsecured Debt

Company/Security/Country

Investment Type

Battery Solutions, Inc. ^(6)(10)

Unsecured Debt

CHA Holdings, Inc. ⁽⁶⁾

Senior Secured First Lien Delayed Draw Term Loan

CHA Holdings, Inc. ⁽⁶⁾

Senior Secured First Lien Term Loan

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

Senior Secured First Lien Revolver

Consolidated Label Co., LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

Consolidated Label Co., LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

GH Parent Holdings Inc. ⁽⁶⁾

Unitranche First Lien Term Loan

GH Parent Holdings Inc. ^(4)(5)(6)

Unitranche First Lien Revolver

GH Parent Holdings Inc. ⁽⁵⁾⁽⁶⁾

Unitranche First Lien Delayed Draw Term Loan

Hepaco, LLC ⁽⁶⁾

Senior Secured First Lien Delayed Draw Term Loan

Hepaco, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

Hepaco, LLC ^(4)(5)(6)

Senior Secured First Lien Revolver

Hercules Borrower LLC ⁽⁶⁾

Unitranche First Lien Term Loan

Hercules Borrower LLC ^(3)(4)(5)(6)

Unitranche First Lien Revolver

Hercules Borrower LLC ^(5)(6)(9)

Unitranche First Lien Delayed Draw Term Loan

Hercules Borrower LLC ⁽⁶⁾

Unitranche First Lien Term Loan

Hsid Acquisition, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

Hsid Acquisition, LLC ⁽⁶⁾

Senior Secured First Lien Delayed Draw Term Loan

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

Senior Secured First Lien Revolver

Hsid Acquisition, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan

ISS Compressors Industries, Inc. ^(3)(4)(5)(6)

Senior Secured First Lien Revolver

ISS Compressors Industries, Inc. ⁽⁶⁾

Senior Secured First Lien Term Loan

MHS Acquisition Holdings, LLC ⁽⁶⁾

Unsecured Debt

MHS Acquisition Holdings, LLC ⁽⁶⁾

Unsecured Debt

MHS Acquisition Holdings, LLC ^(5)(6)(9)

Senior Secured First Lien Delayed Draw Term Loan

MHS Acquisition Holdings, LLC ^(3)(4)(5)(6)

Senior Secured First Lien Revolver

MHS Acquisition Holdings, LLC ⁽⁶⁾

Senior Secured First Lien Term Loan