Babson Capital
Corporate Investors
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Report for the
Six Months Ended June 30, 2014
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Adviser
Babson Capital Management LLC
1500 Main Street, P.O. Box 15189
Springfield, Massachusetts 01115-5189
Independent Registered Public Accounting Firm
KPMG LLP
Boston, Massachusetts 02110
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Transfer Agent & Registrar
DST Systems, Inc.
P.O. Box 219086
Kansas City, Missouri 64121-9086
1-800-647-7374
Internet Website
www.babsoncapital.com/mci
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Counsel to the Trust Ropes & Gray LLP
Boston, Massachusetts 02110
Custodian
State Street Bank and Trust Company
Boston, Massachusetts 02116
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Babson Capital Corporate Investors
c/o Babson Capital Management LLC
1500 Main Street, Suite 2200
Springfield, Massachusetts 01115
(413) 226-1516
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Investment Objective and Policy
Babson Capital Corporate Investors (the “Trust”) is a closed-end management investment company, first offered to the public in 1971, whose shares are traded on the New York Stock Exchange under the trading symbol “MCI”. The Trust’s share price can be found in the financial section of most newspapers under either the New York Stock Exchange listings or Closed-End Fund Listings.
The Trust’s investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust’s principal investments are privately placed, below-investment grade, long- term debt obligations with equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay principal.
Babson Capital Management LLC (“Babson Capital”) manages the Trust on a total return basis. The Trust distributes substantially all of its net income to shareholders each year. Accordingly, the Trust pays dividends to shareholders in January, May, August, and November. The Trust pays dividends to its shareholders in cash, unless the shareholder elects to participate in the Dividend Reinvestment and Share Purchase Plan.
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Form N-Q
The Trust files its complete schedule of portfolio holdings with the U.S. Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. This information is available (i) on the SEC’s website at http:// www.sec.gov; and (ii) at the SEC’s Public Reference Room in Washington, DC (which information on their operation may be obtained by calling 1-800-SEC-0330). A complete schedule of portfolio holdings as of each quarter-end is available upon request by calling, toll-free, 866-399-1516.
Proxy Voting Policies & Procedures; Proxy Voting Record
The Trustees of the Trust have delegated proxy voting responsibilities relating to the voting of securities held by the Trust to Babson Capital. A description of Babson Capital’s proxy voting policies and procedures is available (1) without charge, upon request, by calling, toll-free 866-399-1516; (2) on the Trust’s website: http://www.babsoncapital.com/mci; and (3) on the SEC’s website at http://www.sec.gov. Information regarding how the Trust voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (1) on the Trust’s website: http://www.babsoncapital.com/mci; and (2) on the SEC’s website at http://www.sec.gov.
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Assets: | ||||
Investments | ||||
(See Consolidated Schedule of Investments) | ||||
Corporate restricted securities at fair value
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||||
(Cost - $193,024,309)
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$ | 197,542,737 | ||
Corporate restricted securities at market value
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||||
(Cost - $41,271,501)
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43,734,537 | |||
Corporate public securities at market value
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||||
(Cost - $49,306,499)
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52,055,047 | |||
Short-term securities at amortized cost
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13,999,289 | |||
Total investments (Cost - $297,601,598)
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307,331,610 | |||
Cash
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10,862,331 | |||
Interest receivable
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2,955,890 | |||
Other assets
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92,559 | |||
Total assets
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321,242,390 |
Liabilities: | ||||
Note payable
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30,000,000 | |||
Tax payable
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1,187,597 | |||
Investment advisory fee payable
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898,606 | |||
Deferred tax liability
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652,030 | |||
Payable for investments purchased
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500,000 | |||
Interest payable
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202,400 | |||
Accrued expenses
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247,948 | |||
Total liabilities
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33,688,581 | |||
Total net assets
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$ | 287,553,809 | ||
Net assets:
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||||
Common shares, par value $1.00 per share
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$ | 19,465,026 | ||
Additional paid-in capital
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114,603,437 | |||
Retained net realized gain on investments, prior years
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133,207,098 | |||
Undistributed net investment income
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7,899,999 | |||
Accumulated net realized gain on investments
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3,300,267 | |||
Net unrealized depreciation of investments
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9,077,982 | |||
Total net assets
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$ | 287,553,809 | ||
Common shares issued and outstanding (28,054,782 authorized)
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19,465,026 | |||
Net asset value per share
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$ | $14.77 |
Investment Income: | ||||
Interest
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$ | 13,549,162 | ||
Dividends
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677,950 | |||
Other
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297,196 | |||
Total investment income
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14,524,308 | |||
Expenses: | ||||
Investment advisory fees
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1,741,494 | |||
Interest
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792,000 | |||
Trustees’ fees and expenses
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240,000 | |||
Professional fees
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172,058 | |||
Reports to shareholders
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45,000 | |||
Custodian fees
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16,800 | |||
Other
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149,344 | |||
Total expenses
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3,156,696 | |||
Investment income - net
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11,367,612 | |||
Net realized and unrealized gain on investments: | ||||
Net realized gain on investments before taxes
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3,852,999 | |||
Income tax expense
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(542,668 | ) | ||
Net realized loss on investments after taxes
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3,310,331 | |||
Net change in unrealized appreciation of investments before taxes
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8,294,047 | |||
Net change in deferred income tax expense
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676,198 | |||
Net change in unrealized appreciation of investments after taxes
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8,970,245 | |||
Net gain on investments
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12,280,576 | |||
Net increase in net assets resulting from operations
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$ | 23,648,188 |
Net increase in cash:
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||||
Cash flows from operating activities:
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||||
Purchases/Proceeds/Maturities from short-term portfolio securities, net
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$ | (9,744,174 | ) | |
Purchases of portfolio securities
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(42,561,656 | ) | ||
Proceeds from disposition of portfolio securities
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40,872,184 | |||
Interest, dividends and other income received
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12,294,702 | |||
Interest expense paid
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(792,000 | ) | ||
Operating expenses paid
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(2,315,616 | ) | ||
Income taxes paid
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(80,552 | ) | ||
Net cash provided by operating activities
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(2,327,112 | ) |
Cash flows from financing activities:
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Cash dividends paid from net investment income
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(11,646,970 | ) | ||
Receipts for shares issued on reinvestment of dividends
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1,046,980 | |||
Net cash used for financing activities
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(10,599,990 | ) | ||
Net decrease in cash
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(12,927,102 | ) | ||
Cash - beginning of year
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23,789,433 | |||
Cash - end of period
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$ | 10,862,331 | ||
Reconciliation of net increase in net assets to net cash provided by operating activities:
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Net increase in net assets resulting from operations
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$ | 23,648,188 | ||
Increase in investments
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(25,216,131 | ) | ||
Increase in interest receivable
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(520,621 | ) | ||
Increase in other assets
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(53,438 | ) | ||
Increase in deferred tax liability
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462,116 | |||
Increase in investment advisory fee payable
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58,958 | |||
Decrease in tax payable
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(676,198 | ) | ||
Decrease in payable for investments purchased
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(20,108 | ) | ||
Decrease in accrued expenses
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(9,878 | ) | ||
Total adjustments to net assets from operations
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(25,975,300 | ) | ||
Net cash provided by operating activities
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$ | (2,327,112 | ) |
For the six
months ended
06/30/2014
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For the
year ended
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(Unaudited)
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12/31/2013
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Increase in net assets:
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Operations: | ||||||||
Investment income - net
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$ | 11,367,612 | $ | 22,870,299 | ||||
Net realized gain on investments after taxes
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3,310,331 | (942,568 | ) | |||||
Net change in unrealized appreciation of investments after taxes
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8,970,245 | 10,248,182 | ||||||
Net increase in net assets resulting from operations
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23,648,188 | 32,175,913 | ||||||
Increase from common shares issued on reinvestment of dividends | ||||||||
Common shares issued (2014 - 71,371; 2013 - 153,982)
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1,046,980 | 2,339,460 | ||||||
Dividends to shareholders from:
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||||||||
Net investment income (2014 - $0.30 per share; 2013 - $1.20 per share)
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(5,828,873 | ) | (23,206,251 | ) | ||||
Total increase in net assets
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18,866,295 | 11,309,122 | ||||||
Net assets, beginning of year
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268,687,514 | 257,378,392 | ||||||
Net assets, end of period/year (including undistributed net investment income of $7,899,999 and $2,361,260, respectively)
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$ | 287,553,809 | $ | 268,687,514 |
For the six
months ended
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|||||||||||||||||||||||
06/30/2014 |
For the years ended December 31,
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(Unaudited) | 2013 | 2012 | 2011(a) | 2010(a) | 2009(a) | ||||||||||||||||||
Net asset value:
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Beginning of year
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$
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13.85
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$
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13.38
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$
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12.69
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$
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12.56
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$
|
11.45
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$
|
11.17
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Net investment income (b)
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0.58
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1.18
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1.28
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1.29
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1.13
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1.03
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Net realized and unrealized gain (loss) on investments
|
0.63
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0.48
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0.69
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0.17
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1.06
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0.33
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Total from investment operations
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1.21
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1.66
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1.97
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1.46
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2.19
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1.36
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Dividends from net investment income to common shareholders
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(0.30
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)
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(1.20
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)
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(1.25
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)
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(1.34
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)
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(1.08
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)
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(1.08
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)
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Dividends from realized gain on investments to common shareholders
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—
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—
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(0.05
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)
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(0.01
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)
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—
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—
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Increase from dividends reinvested
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0.01
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0.01
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0.02
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0.02
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0
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(c)
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0
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(c)
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Total dividends
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(0.29
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)
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(1.19
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)
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(1.28
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)
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(1.33
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)
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(1.08
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)
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(1.08
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)
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Net asset value: End of period/year
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$
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14.77
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$
|
13.85
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$
|
13.38
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$
|
12.69
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$
|
12.56
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$
|
11.45
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Per share market value:
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End of period/year
|
$
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15.27
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$
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14.93
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$
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15.28
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$
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17.99
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$
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15.28
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$
|
12.55
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Total investment return
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Net asset value (d)
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8.91
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%
|
12.76
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%
|
17.07
|
%
|
12
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%
|
19.81
|
%
|
12.64
|
%
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Market value (d)
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4.35
|
%
|
5.93
|
%
|
(7.11
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%)
|
27.92
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%
|
31.73
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%
|
39.89
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%
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Net assets (in millions):
End of period/year
|
$
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287.55
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$
|
268.69
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$
|
257.38
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$
|
241.94
|
$
|
237.58
|
$
|
214.44
|
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Ratio of total expenses
to average net assets
|
2.71
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%(f)
|
2.42
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%
|
3.17
|
%
|
2.42
|
%
|
2.57
|
%
|
2.33
|
%
|
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Ratio of operating expenses
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to average net assets
|
1.73
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%(f)
|
1.64
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%
|
1.66
|
%
|
1.62
|
%
|
1.6
|
%
|
1.58
|
%
|
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Ratio of interest expense
to average net assets
|
0.58
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%(f)
|
0.59
|
%
|
0.63
|
%
|
0.64
|
%
|
0.7
|
%
|
0.75
|
%
|
|||||||||||
Ratio of income tax expense
to average net assets (e)
|
0.4
|
%(f)
|
0.19
|
%
|
0.88
|
%
|
0.16
|
%
|
0.27
|
%
|
0
|
%
|
|||||||||||
Ratio of net investment income
|
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to average net assets
|
8.31
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%(f)
|
8.5
|
%
|
9.78
|
%
|
9.91
|
%
|
9.46
|
%
|
9.06
|
%
|
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Portfolio turnover
|
14
|
%
|
34
|
%
|
34
|
%
|
21
|
%
|
39
|
%
|
23
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%
|
(a)
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Per share amounts were adjusted to reflect a 2:1 stock split effective February 18, 2011.
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(b)
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Calculated using average shares.
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(c)
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Rounds to less than $0.01 per share.
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(d)
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Net asset value return represents portfolio returns based on change in the Trust’s net asset value assuming the reinvestment of all dividends and distributions which differs from the total investment return based on the Trust’s market value due to the difference between the Trust’s net asset value and the market value of its shares outstanding; past performance is no guarantee of future results.
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(e)
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As additional information, this ratio is included to reflect the taxes paid on retained long-term gains. These taxes paid are netted against realized capital gains in the Statement of Operations. The taxes paid are treated as deemed distributions and a credit for the taxes paid is passed on to the shareholders.
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(f)
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Annualized
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Total principal amount (in millions)
|
$ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | $ | 30 | |||||||||||
Asset coverage per $1,000 of indebtedness
|
$ | 10,585 | $ | 9,956 | $ | 9,579 | $ | 9,065 | $ | 8,919 | $ | 8,148 |
Corporate Restricted Securities - 83.91%: (A)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
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Private Placement Investments - 68.70%
|
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1492 Acquisition LLC
|
||||||||||||||||
A leading producer of premium Italian cured meats and deli meats in the U.S.
|
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14% Senior Subordinated Note due 2019
|
$ | 1,609,836 |
10/17/12
|
$ | 1,582,972 | $ | 1,597,989 | |||||||||
Limited Liability Company Unit Class A Common (B)
|
27,273 uts.
|
10/17/12
|
27,273 | 110,462 | ||||||||||||
Limited Liability Company Unit Class A Preferred (B)
|
245 uts.
|
10/17/12
|
245,450 | 270,065 | ||||||||||||
1,855,695 | 1,978,516 | |||||||||||||||
A H C Holding Company, Inc.
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||||||||||||||||
A designer and manufacturer of boilers and water heaters for the commercial sector.
|
||||||||||||||||
Limited Partnership Interest (B)
|
23.16% int.
|
11/21/07
|
181,387 | 431,009 |
14% Senior Subordinated Note due 2020
|
$ | 1,952,502 |
12/20/13
|
1,915,642 | 1,991,552 | |||||||||||
Limited Liability Company Unit Class A (B)
|
5,843 shs.
|
* | 290,317 | 425,956 | ||||||||||||
Limited Liability Company Unit Class B (B)
|
2,793 uts.
|
10/09/09
|
100,114 | 203,610 | ||||||||||||
* 10/09/09 and 10/27/10.
|
2,306,073 | 2,621,118 |
10.5% Senior Secured Term Note due 2015 (D)
|
$ | 735,000 |
05/15/08
|
724,402 | 367,500 | |||||||||||
13% Senior Subordinated Note due 2015 (D)
|
$ | 735,000 |
05/15/08
|
673,096 | — | |||||||||||
Common Stock (B)
|
105,000 shs.
|
05/15/08
|
105,000 | — | ||||||||||||
Warrant, exercisable until 2015, to purchase
|
||||||||||||||||
common stock at $.01 per share (B)
|
36,923 shs.
|
05/15/08
|
62,395 | — | ||||||||||||
1,564,893 | 367,500 | |||||||||||||||
ABC Industries, Inc.
|
||||||||||||||||
A manufacturer of mine and tunneling ventilation products in the U.S.
|
|
|||||||||||||||
13% Senior Subordinated Note due 2019
|
$ | 1,200,000 |
08/01/12
|
1,096,615 | 1,222,776 | |||||||||||
Preferred Stock Series A (B)
|
300,000 shs.
|
08/01/12
|
300,000 | 433,806 | ||||||||||||
Warrant, exercisable until 2022, to purchase
|
||||||||||||||||
common stock at $.02 per share (B)
|
53,794 shs.
|
08/01/12
|
101,870 | 72,775 | ||||||||||||
1,498,485 | 1,729,357 | |||||||||||||||
ACP Cascade Holdings LLC
|
||||||||||||||||
A manufacturer and distributor of vinyl windows and patio doors throughout the northwestern United States.
|
||||||||||||||||
Limited Liability Company Unit Class B (B)
|
64 uts.
|
11/09/12
|
— | — |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
Advanced Manufacturing Enterprises LLC
|
||||||||||||||||
A designer and manufacturer of large, custom gearing products for a number of critical customer applications.
|
||||||||||||||||
14% Senior Subordinated Note due 2018
|
$ | 2,723,077 |
12/07/12
|
$ | 2,689,795 | $ | 2,668,700 | |||||||||
Limited Liability Company Unit (B)
|
3,434 uts.
|
* | 343,385 | 276,856 | ||||||||||||
* 12/07/12 and 07/11/13.
|
3,033,180 | 2,945,556 | ||||||||||||||
Advanced Technologies Holdings
|
||||||||||||||||
A provider of factory maintenance services to industrial companies.
|
||||||||||||||||
Preferred Stock Series A (B)
|
796 shs.
|
12/27/07
|
393,754 | 1,288,545 | ||||||||||||
Convertible Preferred Stock Series B (B)
|
53 shs.
|
01/04/11
|
40,800 | 85,002 | ||||||||||||
434,554 | 1,373,547 | |||||||||||||||
All Current Holding Company
|
||||||||||||||||
A specialty re-seller of essential electrical parts and components primarily serving wholesale distributors.
|
||||||||||||||||
Common Stock (B)
|
1,347 shs
|
09/26/08
|
134,683 | 277,971 | ||||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
958 shs
|
09/26/08
|
87,993 | 197,696 | ||||||||||||
222,676 | 475,667 | |||||||||||||||
American Hospice Management Holding LLC
|
||||||||||||||||
A for-profit hospice care provider in the United States.
|
||||||||||||||||
12% Senior Subordinated Note due 2014
|
$ | 2,337,496 | * | 2,336,224 | 2,220,621 | |||||||||||
Preferred Class A Unit (B)
|
3,223 uts.
|
** | 322,300 | — | ||||||||||||
Preferred Class B Unit (B)
|
1,526 uts.
|
06/09/08
|
152,626 | — | ||||||||||||
Common Class B Unit (B)
|
30,420 uts.
|
01/22/04
|
1 | — | ||||||||||||
Common Class D Unit (B)
|
6,980 uts.
|
09/12/06
|
1 | — | ||||||||||||
* 01/22/04 and 06/09/08.
|
2,811,152 | 2,220,621 | ||||||||||||||
** 01/22/04 and 09/12/06.
|
||||||||||||||||
AMS Holding LLC
|
||||||||||||||||
A leading multi-channel direct marketer of high-value collectible coins and proprietary-branded jewelry and watches.
|
||||||||||||||||
Limited Liability Company Unit Class A Preferred (B)
|
273 uts.
|
10/04/12
|
272,727 | 552,720 | ||||||||||||
Apex Analytix Holding Corporation
|
||||||||||||||||
A provider of audit recovery and fraud detection services and software to commercial and retail businesses in the U.S. and Europe.
|
||||||||||||||||
Preferred Stock Series B (B)
|
3,065 shs.
|
04/28/09
|
306,507 | 490,190 | ||||||||||||
Common Stock (B)
|
1,366 shs.
|
04/28/09
|
1,366 | 718,351 | ||||||||||||
307,873 | 1,208,541 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
Arch Global Precision LLC
|
||||||||||||||||
A leading manufacturer of high tolerance precision components and consumable tools.
|
||||||||||||||||
14.75% Senior Subordinated Note due 2018
|
$ | 2,411,207 |
12/21/11
|
$ | 2,367,104 | $ | 2,459,431 | |||||||||
Limited Liability Company Unit Class B (B)
|
79 uts.
|
12/21/11
|
85,250 | 213,561 | ||||||||||||
Limited Liability Company Unit Class C (B)
|
671 uts.
|
12/21/11
|
664,750 | 1,731,718 | ||||||||||||
3,117,104 | 4,404,710 | |||||||||||||||
ARI Holding Corporation
|
||||||||||||||||
A leading national supplier of products used primarily by specialty contractors.
|
||||||||||||||||
13.5% Senior Subordinated Note due 2020
|
$ | 2,650,052 |
05/21/13
|
2,603,265 | 2,676,553 | |||||||||||
Preferred Stock (B)
|
58 shs.
|
05/21/13
|
579,208 | 610,095 | ||||||||||||
Common Stock (B)
|
58 shs.
|
05/21/13
|
64,356 | 381,805 | ||||||||||||
3,246,829 | 3,668,453 | |||||||||||||||
Arrow Tru-Line Holdings, Inc.
|
||||||||||||||||
A manufacturer of hardware for residential and commercial overhead garage doors in North America.
|
||||||||||||||||
12% Senior Subordinated Note due 2016
|
$ | 388,481 |
05/18/05
|
348,675 | 388,481 | |||||||||||
Preferred Stock (B)
|
63 shs.
|
10/16/09
|
62,756 | 207,964 | ||||||||||||
Common Stock (B)
|
497 shs.
|
05/18/05
|
497,340 | 51,371 | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
130 shs.
|
05/18/05
|
112,128 | 13,467 | ||||||||||||
1,020,899 | 661,283 | |||||||||||||||
Baby Jogger Holdings LLC
|
||||||||||||||||
A designer and marketer of premium baby strollers and stroller accessories.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,826,634 |
04/20/12
|
2,783,333 | 2,854,901 | |||||||||||
Common Stock (B)
|
2,261 shs.
|
04/20/12
|
226,132 | 385,323 | ||||||||||||
3,009,465 | 3,240,224 | |||||||||||||||
Blue Wave Products, Inc.
|
||||||||||||||||
A distributor of pool supplies.
|
||||||||||||||||
10% Senior Secured Term Note due 2018
|
$ | 714,893 |
10/12/12
|
703,874 | 718,943 | |||||||||||
13% Senior Subordinated Note due 2019
|
$ | 727,297 |
10/12/12
|
683,017 | 734,732 | |||||||||||
Common Stock (B)
|
114,894 shs.
|
10/12/12
|
114,894 | 184,420 | ||||||||||||
Warrant, exercisable until 2022, to purchase
common stock at $.01 per share (B)
|
45,486 shs.
|
10/12/12
|
45,486 | 73,011 | ||||||||||||
1,547,271 | 1,711,106 | |||||||||||||||
BP SCI LLC
|
||||||||||||||||
A leading value-added distributor of branded pipes, valves, and fittings (PVF) to diversified end markets.
|
||||||||||||||||
14% Senior Subordinated Note due 2018
|
$ | 2,586,820 |
10/17/12
|
2,547,021 | 2,612,688 | |||||||||||
Limited Liability Company Unit Class A (B)
|
1,000 uts.
|
10/17/12
|
100,000 | 233,802 | ||||||||||||
Limited Liability Company Unit Class B (B)
|
400 uts.
|
10/17/12
|
400,000 | 476,072 | ||||||||||||
3,047,021 | 3,322,562 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
Bravo Sports Holding Corporation
|
||||||||||||||||
A designer and marketer of niche branded consumer products including canopies, trampolines, in-line skates, skateboards, and urethane wheels.
|
||||||||||||||||
12.5% Senior Subordinated Note due 2015
|
$ | 2,281,593 |
06/30/06
|
$ | 2,277,637 | $ | 2,167,513 | |||||||||
Preferred Stock Class A (B)
|
879 shs.
|
06/30/06
|
268,121 | 218,034 | ||||||||||||
Common Stock (B)
|
1 sh.
|
06/30/06
|
286 | — | ||||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B)
|
309 shs.
|
06/30/06
|
92,102 | 76,627 | ||||||||||||
2,638,146 | 2,462,174 | |||||||||||||||
C D N T, Inc.
|
||||||||||||||||
A value-added converter and distributor of specialty pressure sensitive adhesives, foams, films, and foils.
|
||||||||||||||||
12.5% Senior Subordinated Note due 2015
|
$ | 750,872 |
08/07/08
|
734,409 | 750,872 | |||||||||||
Common Stock (B)
|
73,256 shs.
|
08/07/08
|
73,256 | 190,142 | ||||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
57,600 shs.
|
08/07/08
|
57,689 | 149,505 | ||||||||||||
865,354 | 1,090,519 | |||||||||||||||
Capital Specialty Plastics, Inc.
|
||||||||||||||||
A producer of desiccant strips used for packaging pharmaceutical products.
|
||||||||||||||||
Common Stock (B)
|
109 shs.
|
* | 503 | 1,575,000 | ||||||||||||
* 12/30/97 and 05/29/99
|
||||||||||||||||
CG Holdings Manufacturing Company
|
||||||||||||||||
A coating provider serving the automotive, agricultural, heavy truck and other end markets.
|
||||||||||||||||
13% Senior Subordinated Note due 2019
|
$ | 3,390,252 |
05/09/13
|
3,214,884 | 3,491,960 | |||||||||||
Preferred Stock (B)
|
3,241 shs.
|
05/09/13
|
324,054 | 334,231 | ||||||||||||
Preferred Stock (B)
|
1,174 shs.
|
05/09/13
|
116,929 | 121,095 | ||||||||||||
Common Stock (B)
|
337 shs.
|
05/09/13
|
35,673 | 49,733 | ||||||||||||
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)
|
137 shs.
|
05/09/13
|
13,033 | 20,234 | ||||||||||||
3,704,573 | 4,017,253 | |||||||||||||||
CHG Alternative Education Holding Company
|
||||||||||||||||
A leading provider of publicly-funded, for profit pre-K-12 education services targeting special needs children at therapeutic day schools and "at risk" youth through alternative education programs.
|
||||||||||||||||
13.5% Senior Subordinated Note due 2018
|
$ | 2,252,308 |
01/19/11
|
2,171,141 | 2,274,831 | |||||||||||
14% Senior Subordinated Note due 2019
|
$ | 584,621 |
08/03/12
|
575,446 | 596,313 | |||||||||||
Common Stock (B)
|
1,125 shs.
|
01/19/11
|
112,500 | 150,554 | ||||||||||||
Warrant, exercisable until 2021, to purchase
common stock at $.01 per share (B)
|
884 shs.
|
01/19/11
|
87,750 | 118,345 | ||||||||||||
2,946,837 | 3,140,043 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
Church Services Holding Company
|
||||||||||||||||
A provider of diversified residential services to homeowners in the Houston, Dallas, and Austin markets.
|
||||||||||||||||
14.5% Senior Subordinated Note due 2018
|
$ | 1,255,370 |
03/26/12
|
$ | 1,225,732 | $ | 1,257,876 | |||||||||
Common Stock (B)
|
3,981 shs.
|
* | 398,100 | 250,271 | ||||||||||||
Warrant, exercisable until 2022, to purchase
common stock at $.01 per share (B)
|
172 shs.
|
03/26/12
|
17,220 | 10,813 | ||||||||||||
*03/26/12, 05/25/12 and 06/19/12.
|
1,641,052 | 1,518,960 | ||||||||||||||
Clough, Harbour and Associates
|
||||||||||||||||
An engineering service firm that is located in Albany, NY.
|
||||||||||||||||
Preferred Stock (B)
|
277 shs.
|
12/02/08
|
276,900 | 422,356 | ||||||||||||
Connecticut Electric, Inc.
|
||||||||||||||||
A supplier and distributor of electrical products sold into the retail and wholesale markets.
|
||||||||||||||||
Limited Liability Company Unit Class A (B)
|
156,046 uts.
|
01/12/07
|
156,046 | 111,304 | ||||||||||||
Limited Liability Company Unit Class C (B)
|
112,873 uts.
|
01/12/07
|
112,873 | 86,277 | ||||||||||||
Limited Liability Company Unit Class D (B)
|
1,268,437 uts.
|
05/03/10
|
— | 1,401,983 | ||||||||||||
Limited Liability Company Unit Class E (B)
|
2,081 uts.
|
05/03/10
|
— | — | ||||||||||||
268,919 | 1,599,564 | |||||||||||||||
Connor Sport Court International, Inc.
|
||||||||||||||||
A designer and manufacturer of outdoor and indoor synthetic sports flooring and other temporary flooring products.
|
||||||||||||||||
Preferred Stock Series B-2 (B)
|
17,152 shs.
|
07/05/07
|
700,392 | 571,749 | ||||||||||||
Preferred Stock Series C (B)
|
7,080 shs.
|
07/05/07
|
236,503 | 196,744 | ||||||||||||
Common Stock (B)
|
718 shs.
|
07/05/07
|
7 | — | ||||||||||||
Limited Partnership Interest (B)
|
12.64% int.
|
* | 189,586 | — | ||||||||||||
*08/12/04 and 01/14/05.
|
1,126,488 | 768,493 | ||||||||||||||
CorePharma LLC
|
||||||||||||||||
A manufacturer of oral dose generic pharmaceuticals targeted at niche applications.
|
||||||||||||||||
Warrant, exercisable until 2015, to purchase
common stock at $.001 per share (B)
|
20 shs.
|
08/04/05
|
137,166 | 432,789 | ||||||||||||
Crane Rental Corporation
|
||||||||||||||||
A crane rental company since 1960, headquartered in Florida.
|
||||||||||||||||
13% Senior Subordinated Note due 2015
|
$ | 1,950,750 |
08/21/08
|
1,898,101 | 1,950,750 | |||||||||||
Common Stock (B)
|
255,000 shs.
|
08/21/08
|
255,000 | 162,793 | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
136,070 shs.
|
08/21/08
|
194,826 | 86,867 | ||||||||||||
2,347,927 | 2,200,410 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
CTM Holding, Inc.
|
||||||||||||||||
A leading owner and operator of coin-operated children's rides, penny presses and candy kiosks in the U.S.
|
||||||||||||||||
15% Senior Subordinated Note due 2019
|
$ | 2,407,021 |
11/22/13
|
$ | 2,362,839 | $ | 2,474,179 | |||||||||
Common Stock (B)
|
62,088 shs.
|
11/22/13
|
886,364 | 655,191 | ||||||||||||
3,249,203 | 3,129,370 | |||||||||||||||
Custom Engineered Wheels, Inc.
|
||||||||||||||||
A manufacturer of custom engineered, non-pneumatic plastic wheels and plastic tread cap tires used primarily for lawn and garden products and wheelchairs.
|
||||||||||||||||
Preferred Stock PIK (B)
|
296 shs.
|
10/27/09
|
295,550 | 421,623 | ||||||||||||
Preferred Stock Series A (B)
|
216 shs.
|
10/27/09
|
197,152 | 308,054 | ||||||||||||
Common Stock (B)
|
72 shs.
|
10/27/09
|
72,238 | 65,495 | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
53 shs.
|
10/27/09
|
48,608 | 47,852 | ||||||||||||
613,548 | 843,024 | |||||||||||||||
DPL Holding Corporation
|
||||||||||||||||
A distributor and manufacturer of aftermarket undercarriage parts for medium and heavy duty trucks and trailers.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 3,205,571 |
05/04/12
|
3,156,967 | 3,192,237 | |||||||||||
Preferred Stock (B)
|
61 shs.
|
05/04/12
|
605,841 | 677,765 | ||||||||||||
Common Stock (B)
|
61 shs.
|
05/04/12
|
67,316 | 202,270 | ||||||||||||
3,830,124 | 4,072,272 | |||||||||||||||
Duncan Systems, Inc.
|
||||||||||||||||
A distributor of windshields and side glass for the recreational vehicle market.
|
||||||||||||||||
13% Senior Subordinated Note due 2015
|
$ | 855,000 |
11/01/06
|
841,740 | 855,000 | |||||||||||
Common Stock (B)
|
180,000 shs.
|
11/01/06
|
180,000 | 100,946 | ||||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B)
|
56,514 shs.
|
11/01/06
|
78,160 | 31,694 | ||||||||||||
1,099,900 | 987,640 | |||||||||||||||
E S P Holdco, Inc.
|
||||||||||||||||
A manufacturer of power protection technology for commercial office equipment, primarily supplying the office equipment dealer network.
|
||||||||||||||||
Common Stock (B)
|
660 shs.
|
01/08/08
|
329,990 | 462,840 | ||||||||||||
Eatem Holding Company
|
||||||||||||||||
A developer and manufacturer of savory flavor systems for soups, sauces, gravies, and other products produced by food manufacturers for retail and foodservice end products.
|
||||||||||||||||
12.5% Senior Subordinated Note due 2018
|
$ | 2,850,000 |
02/01/10
|
2,624,607 | 2,878,500 | |||||||||||
Common Stock (B)
|
150 shs.
|
02/01/10
|
150,000 | 222,597 | ||||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
358 shs.
|
02/01/10
|
321,300 | 530,746 | ||||||||||||
3,095,907 | 3,631,843 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost
|
Fair Value
|
||||||||||||
ELT Holding Company
|
||||||||||||||||
A provider of web-based ethics and compliance training solutions for companies in the United States.
|
||||||||||||||||
Common Stock (B)
|
122 shs.
|
03/01/12
|
$ | 272,727 | $ | 417,219 | ||||||||||
EPM Holding Company
|
||||||||||||||||
A provider of non-discretionary regulatory driven engineering services that support mission critical safety and operational aspects of nuclear power plants.
|
||||||||||||||||
14.5% Senior Subordinated Note due 2019
|
$ | 1,178,064 |
07/26/13
|
1,157,434 | 1,213,406 | |||||||||||
Common Stock
|
3,069 shs.
|
07/26/13
|
306,947 | 178,749 | ||||||||||||
1,464,381 | 1,392,155 | |||||||||||||||
ERG Holding Company LLC
|
||||||||||||||||
A provider of inpatient and outpatient clinical trial services to pharmaceutical companies and contract research organizations.
|
||||||||||||||||
13.5% Senior Subordinated Note due 2019
|
$ | 1,894,532 |
04/04/14
|
1,857,902 | 1,912,272 | |||||||||||
Common Stock (B)
|
63 shs.
|
04/04/14
|
157,314 | 157,325 | ||||||||||||
2,015,216 | 2,069,597 | |||||||||||||||
F F C Holding Corporation
|
||||||||||||||||
A leading U.S. manufacturer of private label frozen novelty and ice cream products.
|
||||||||||||||||
Limited Liability Company Unit Preferred (B)
|
512 uts.
|
09/27/10
|
175,035 | 610,718 | ||||||||||||
Limited Liability Company Unit (B)
|
512 uts.
|
09/27/10
|
51,220 | 76,051 | ||||||||||||
226,255 | 686,769 | |||||||||||||||
F G I Equity LLC
|
||||||||||||||||
A manufacturer of a broad range of filters and related products that are used in commercial, light industrial, healthcare, gas turbine, nuclear, laboratory, clean room, hotel, educational system, and food processing settings.
|
||||||||||||||||
Limited Liability Company Unit (B)
|
483,355 uts.
|
04/15/14
|
— | 483,355 | ||||||||||||
Limited Liability Company Unit Class B-1 (B)
|
394,737 uts.
|
12/15/10
|
394,737 | 711,900 | ||||||||||||
Limited Liability Company Unit Class B-2 (B)
|
49,488 uts.
|
12/15/10
|
49,488 | 101,476 | ||||||||||||
Limited Liability Company Unit Class B-3 (B)
|
39,130 uts.
|
08/30/12
|
90,000 | 80,237 | ||||||||||||
Limited Liability Company Unit Class C (B)
|
9,449 uts.
|
12/20/10
|
96,056 | 146,838 | ||||||||||||
630,281 | 1,523,806 | |||||||||||||||
G C Holdings
|
||||||||||||||||
A leading manufacturer of gaming tickets, industrial recording charts, security-enabled point-of sale receipts, and medical charts and supplies.
|
||||||||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
594 shs.
|
10/19/10
|
140,875 | 328,371 | ||||||||||||
GD Dental Services LLC
|
||||||||||||||||
A provider of convenient “onestop” general, specialty, and cosmetic dental services with 21 offices located throughout South and Central Florida.
|
||||||||||||||||
Limited Liability Company Unit Common (B)
|
1,840 uts.
|
10/05/12
|
1,840 | 104,271 | ||||||||||||
Limited Liability Company Unit Preferred (B)
|
182 uts.
|
10/05/12
|
182,209 | 198,437 | ||||||||||||
184,049 | 302,708 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | |||||||||||
GenNx Novel Holding, Inc.
|
|||||||||||||||
A manufacturer and distributor of nutraceutical ingredients.
|
|||||||||||||||
13% Senior Subordinated Note due 2020
|
$ | 3,177,742 |
03/27/14
|
$ | 3,116,042 | $ | 3,203,309 | ||||||||
Common Stock (B)
|
315 shs.
|
03/27/14
|
315,000 | 271,183 | |||||||||||
3,431,042 | 3,474,492 | ||||||||||||||
gloProfessional Holdings, Inc.
|
|||||||||||||||
A marketer and distributor of premium mineral-based cosmetics, cosmeceuticals and professional hair care products to the professional spa and physician's office channels.
|
|||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,785,593 |
03/27/13
|
2,739,191 | 2,800,904 | ||||||||||
Common Stock (B)
|
2,835 shs.
|
03/27/13
|
283,465 | 311,098 | |||||||||||
3,022,656 | 3,112,002 | ||||||||||||||
Golden County Foods Holding, Inc.
|
|||||||||||||||
A manufacturer of frozen appetizers and snacks.
|
|||||||||||||||
14% Senior Subordinated Note due 2019 (D)
|
$ | 73,550 |
11/13/13
|
436,682 | — | ||||||||||
Preferred Stock (B)
|
287,658 shs.
|
11/13/13
|
146,658 | — | |||||||||||
Preferred Stock Series F (B)
|
294,200 shs.
|
11/13/13
|
1,746,726 | — | |||||||||||
2,330,066 | — | ||||||||||||||
GTI Holding Company
|
|||||||||||||||
A designer, developer, and marketer of precision specialty hand tools and handheld test instruments.
|
|||||||||||||||
12% Senior Subordinated Note due 2020
|
$ | 1,455,729 |
02/05/14
|
1,357,546 | 1,481,257 | ||||||||||
Common Stock (B)
|
1,693 shs.
|
02/05/14
|
169,271 | 148,209 | |||||||||||
Warrant, exercisable until 2024, to purchase
common stock at $.01 per share (B)
|
795 shs.
|
02/05/14
|
73,633 | 69,596 | |||||||||||
1,600,450 | 1,699,062 | ||||||||||||||
Handi Quilter Holding Company
|
|||||||||||||||
A designer and manufacturer of long-arm quilting machines and related components for the consumer quilting market.
|
|||||||||||||||
Common Stock (B)
|
115 shs.
|
11/14/11
|
115,385 | 371,665 | |||||||||||
Warrant, exercisable until 2021, to purchase
common stock at $.01 per share (B)
|
83 shs.
|
11/14/11
|
76,788 | 266,083 | |||||||||||
192,173 | 637,748 | ||||||||||||||
Hartland Controls Holding Corporation
|
|||||||||||||||
A manufacturer and distributor of electronic and electromechanical components.
|
|||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,989,266 |
02/14/14
|
2,932,389 | 3,032,867 | ||||||||||
Preferred Stock Series A (B)
|
5,169 shs.
|
02/14/14
|
516,852 | 523,224 | |||||||||||
Common Stock (B)
|
1,666 shs.
|
02/14/14
|
1,667 | 96,327 | |||||||||||
3,450,908 | 3,652,418 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Healthcare Direct Holding Company
|
||||||||||||||||
A direct-to-consumer marketer of discount dental plans.
|
||||||||||||||||
14% Senior Subordinated Note due 2019 (D)
|
$ | 2,195,137 |
03/09/12
|
$ | 2,158,495 | $ | 2,125,705 | |||||||||
16% Senior Subordinated PIK Note due 2019
|
$ | 137,702 |
03/31/14
|
137,702 | 133,311 | |||||||||||
Common Stock (B)
|
1,552 shs.
|
03/09/12
|
155,172 | 147,520 | ||||||||||||
2,451,369 | 2,406,536 | |||||||||||||||
HHI Group, LLC
|
||||||||||||||||
A developer, marketer, and distributor of hobby-grade radio control products.
|
||||||||||||||||
14% Senior Subordinated Note due 2020
|
$ | 3,074,698 |
01/17/14
|
3,016,770 | 3,126,852 | |||||||||||
Limited Liability Company Unit (B)
|
203 uts.
|
01/17/14
|
203,125 | 138,983 | ||||||||||||
3,219,895 | 3,265,835 | |||||||||||||||
Hi-Rel Group LLC
|
||||||||||||||||
A manufacturer and distributor of precision metal piece parts for the microelectronic packaging industry, serving the aerospace/ defense, telecommunications, and medical end markets.
|
||||||||||||||||
12% Senior Subordinated Note due 2018
|
$ | 1,687,500 |
04/15/13
|
1,596,614 | 1,704,575 | |||||||||||
Limited Liability Company Unit (B)
|
563 uts.
|
04/15/13
|
562,500 | 372,666 | ||||||||||||
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)
|
89,224 shs.
|
04/15/13
|
77,625 | 56,294 | ||||||||||||
|
2,236,739 | 2,133,535 | ||||||||||||||
Home Decor Holding Company
|
||||||||||||||||
A designer, manufacturer and marketer of framed art and wall decor products.
|
||||||||||||||||
Common Stock (B)
|
63 shs.
|
* | 62,742 | 175,672 | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.02 per share (B)
|
200 shs.
|
* | 199,501 | 558,600 | ||||||||||||
* 06/30/04 and 08/19/04.
|
262,243 | 734,272 | ||||||||||||||
HOP Entertainment LLC
|
||||||||||||||||
A provider of post production equipment and services to producers of television shows and motion pictures.
|
||||||||||||||||
Limited Liability Company Unit Class F (B)
|
89 uts.
|
10/14/11
|
— | — | ||||||||||||
Limited Liability Company Unit Class G (B)
|
215 uts.
|
10/14/11
|
— | — | ||||||||||||
Limited Liability Company Unit Class H (B)
|
89 uts.
|
10/14/11
|
— | — | ||||||||||||
Limited Liability Company Unit Class I (B)
|
89 uts.
|
10/14/11
|
— | — | ||||||||||||
— | — | |||||||||||||||
Hospitality Mints Holding Company | ||||||||||||||||
A manufacturer of individually-wrapped imprinted promotional mints.
|
||||||||||||||||
12% Senior Subordinated Note due 2016
|
$ | 2,075,581 |
08/19/08
|
2,014,646 | 2,065,573 | |||||||||||
Common Stock (B)
|
474 shs.
|
08/19/08
|
474,419 | 149,558 | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
123 shs.
|
08/19/08
|
113,773 | 38,655 | ||||||||||||
2,602,838 | 2,253,786 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
HVAC Holdings, Inc.
|
||||||||||||||||
A provider of integrated energy efficiency services and maintenance programs for HVAC systems.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,824,796 |
09/27/12
|
$ | 2,779,369 | $ | 2,873,013 | |||||||||
Preferred Stock Series A (B)
|
2,705 shs.
|
09/27/12
|
270,542 | 324,401 | ||||||||||||
Common Stock (B)
|
2,185 shs.
|
09/27/12
|
2,185 | 50,278 | ||||||||||||
3,052,096 | 3,247,692 | |||||||||||||||
Ideal Tridon Holdings, Inc.
|
||||||||||||||||
A designer and manufacturer of clamps and couplings used in automotive and industrial end markets.
|
||||||||||||||||
Common Stock (B)
|
279 shs.
|
10/27/11
|
278,561 | 577,794 | ||||||||||||
Insurance Claims Management, Inc.
|
||||||||||||||||
A third party administrator providing auto and property claim administration services for insurance companies.
|
||||||||||||||||
Common Stock (B)
|
89 shs.
|
02/27/07
|
2,689 | 719,946 | ||||||||||||
J A C Holding Enterprises, Inc.
|
||||||||||||||||
A supplier of luggage racks and accessories to the original equipment manufacturers.
|
||||||||||||||||
Preferred Stock A (B)
|
495 shs.
|
12/20/10
|
495,000 | 748,247 | ||||||||||||
Preferred Stock B (B)
|
0.17 shs.
|
12/20/10
|
— | 252 | ||||||||||||
Common Stock (B)
|
100 shs.
|
12/20/10
|
5,000 | 256,840 | ||||||||||||
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)
|
36 shs.
|
12/20/10
|
316,930 | 307,067 | ||||||||||||
816,930 | 1,312,406 | |||||||||||||||
Janus Group Holdings LLC
|
||||||||||||||||
A manufacturer of roll-up doors and hallway systems that are primarily used in self-storage facilities.
|
||||||||||||||||
13.5% Senior Subordinated Note due 2019
|
$ | 2,684,783 |
12/11/13
|
2,634,834 | 2,765,326 | |||||||||||
Limited Liability Company Unit Class A (B)
|
565 uts.
|
12/11/13
|
465,673 | 743,880 | ||||||||||||
3,100,507 | 3,509,206 | |||||||||||||||
JMH Investors LLC
|
||||||||||||||||
A developer and manufacturer of custom formulations for a wide variety of foods.
|
||||||||||||||||
14.25% Senior Subordinated Note due 2019
|
$ | 2,567,252 |
12/05/12
|
2,524,881 | 2,504,928 | |||||||||||
Limited Liability Company Unit (B)
|
521,739 uts.
|
12/05/12
|
521,739 | 271,204 | ||||||||||||
3,046,620 | 2,776,132 | |||||||||||||||
K & N Parent, Inc.
|
||||||||||||||||
A manufacturer and supplier of automotive aftermarket performance air filters and intake systems.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 3,479,917 |
12/23/11
|
3,410,985 | 3,584,313 | |||||||||||
Preferred Stock Series A (B)
|
305 shs.
|
12/23/11
|
119,662 | 135,275 | ||||||||||||
Preferred Stock Series B (B)
|
86 shs.
|
12/23/11
|
— | — | ||||||||||||
Common Stock (B)
|
489 shs.
|
* | 19,565 | 589,879 | ||||||||||||
* 12/23/11 and 06/30/14.
|
3,550,212 | 4,309,467 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | |||||||||||
K N B Holdings Corporation
|
|||||||||||||||
A designer, manufacturer and marketer of products for the custom framing market.
|
|||||||||||||||
Common Stock (B)
|
134,210 shs.
|
05/25/06
|
$ | 134,210 | $ | 93,994 | |||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
82,357 shs.
|
05/25/06
|
71,534 | 57,679 | |||||||||||
205,744 | 151,673 | ||||||||||||||
K P I Holdings, Inc.
|
|||||||||||||||
The largest player in the U.S. non-automotive, non-ferrous die casting segment. | |||||||||||||||
Convertible Preferred Stock Series C (B) | 55 shs. | 06/30/09 | 55,435 | 158,583 | |||||||||||
Convertible Preferred Stock Series D (B)
|
24 shs.
|
09/17/09
|
24,476 | 73,410 | |||||||||||
Common Stock (B)
|
443 shs.
|
07/15/08
|
443,478 | 206,877 | |||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
96 shs.
|
07/16/08
|
96,024 | 44,792 | |||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
128 shs.
|
09/17/09
|
— | 59,524 | |||||||||||
619,413 | 543,186 | ||||||||||||||
LPC Holding Company
|
|||||||||||||||
A designer and manufacturer of precision-molded silicone rubber components that are utilized in the medical and automotive end markets.
|
|||||||||||||||
Common Stock (B)
|
315 shs.
|
08/15/11
|
315,057 | 489,657 | |||||||||||
M V I Holding, Inc.
|
|||||||||||||||
A manufacturer of large precision machined metal components used in equipment which services a variety of industries, including the oil and gas, mining, and defense markets.
|
|||||||||||||||
Common Stock (B)
|
61 shs.
|
09/12/08
|
60,714 | — | |||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
66 shs.
|
09/12/08
|
65,571 | — | |||||||||||
126,285 | — | ||||||||||||||
Mail Communications Group, Inc.
|
|||||||||||||||
A provider of mail processing and handling services, lettershop services, and commercial printing services.
|
|||||||||||||||
Limited Liability Company Unit (B)
|
24,109 uts.
|
*
|
314,464 | 299,663 | |||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B)
|
3,375 shs.
|
05/04/07
|
43,031 | 41,950 | |||||||||||
* 05/04/07 and 01/02/08.
|
357,495 |
341,613
|
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Manhattan Beachwear Holding Company
|
||||||||||||||||
A designer and distributor of women's swimwear.
|
||||||||||||||||
12.5% Senior Subordinated Note due 2018
|
$ | 1,259,914 |
01/15/10
|
$ | 1,165,419 | $ | 1,259,914 | |||||||||
15% Senior Subordinated Note due 2018
|
$ | 337,248 |
10/05/10
|
333,330 | 336,063 | |||||||||||
Common Stock (B)
|
106 shs.
|
10/05/10
|
106,200 | 201,758 | ||||||||||||
Common Stock Class B (B)
|
353 shs.
|
01/15/10
|
352,941 | 670,514 | ||||||||||||
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B)
|
312 shs.
|
01/15/10
|
283,738 | 593,401 | ||||||||||||
2,241,628 | 3,061,650 | |||||||||||||||
MedSystems Holdings LLC
|
||||||||||||||||
A manufacturer of enteral feeding products, such as feeding tubes and other products related to assisted feeding.
|
||||||||||||||||
Preferred Unit (B)
|
126 uts.
|
08/29/08
|
125,519 | 155,237 | ||||||||||||
Common Unit Class A (B)
|
1,268 uts.
|
08/29/08
|
1,268 | 130,054 | ||||||||||||
Common Unit Class B (B)
|
497 uts.
|
08/29/08
|
120,064 | 51,020 | ||||||||||||
246,851 | 336,311 | |||||||||||||||
Merex Holding Corporation
|
||||||||||||||||
A provider of after-market spare parts and components, as well as Maintenance, Repair and Overhaul services for "out of production" or "legacy" aerospace and defense systems that are no longer effectively supported by the original equipment manufacturers.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 1,362,886 |
09/22/11
|
1,343,557 | 1,390,144 | |||||||||||
Limited Liability Company Unit Series A
|
684 uts.
|
04/30/14
|
44,281 | 41,571 | ||||||||||||
Limited Liability Company Unit Series B (B)
|
467,833 uts.
|
09/22/11
|
467,833 | 549,334 | ||||||||||||
1,855,671 | 1,981,049 | |||||||||||||||
MicroGroup, Inc.
|
||||||||||||||||
A manufacturer of precision parts and assemblies, and a value-added supplier of metal tubing and bars.
|
||||||||||||||||
7% Senior Subordinated Note due 2014 (D)
|
$ | 1,705,152 | * | 1,635,166 | — | |||||||||||
Preferred Stock Series A (B)
|
980 shs.
|
10/10/12
|
942,054 | — | ||||||||||||
Common Stock (B)
|
450 shs.
|
* | 450,000 | — | ||||||||||||
Common Stock Series B (B)
|
1,128 shs.
|
10/10/12
|
11 | — | ||||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.02 per share (B)
|
164 shs.
|
* | 162,974 | — | ||||||||||||
* 08/12/05 and 09/11/06.
|
3,190,205 | — | ||||||||||||||
MNX Holding Company
|
||||||||||||||||
An international third party logistics company providing customized logistics services to customers across the globe.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,990,505 |
11/02/12
|
2,941,751 | 2,807,973 | |||||||||||
Common Stock (B)
|
107 shs.
|
11/02/12
|
107,143 | 22,699 | ||||||||||||
3,048,894 | 2,830,672 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Motion Controls Holdings
|
||||||||||||||||
A manufacturer of high performance mechanical motion control and linkage products.
|
||||||||||||||||
14.25% Senior Subordinated Note due 2017
|
$ | 2,896,971 |
11/30/10
|
$ | 2,865,641 | $ | 2,896,971 | |||||||||
Limited Liability Company Unit Class B-1 (B)
|
225,000 uts.
|
11/30/10
|
— | 276,050 | ||||||||||||
Limited Liability Company Unit Class B-2 (B)
|
20,403 uts.
|
11/30/10
|
— | 25,032 | ||||||||||||
2,865,641 | 3,198,053 | |||||||||||||||
NABCO, Inc.
|
||||||||||||||||
A producer of explosive containment vessels in the United States.
|
||||||||||||||||
Common Stock (B)
|
809 shs.
|
12/20/12
|
578,174 | — | ||||||||||||
NetShape Technologies, Inc.
|
||||||||||||||||
A manufacturer of powder metal and metal injection molded precision components used in industrial, consumer, and other applications.
|
||||||||||||||||
14% Senior Subordinated Note due 2015
|
$ | 2,004,985 |
02/02/07
|
1,993,979 | 1,904,736 | |||||||||||
Limited Partnership Interest of Saw Mill PCG Partners LLC (B)
|
2.73% int.
|
02/01/07
|
1,110,810 | |||||||||||||
Limited Liability Company Unit Class D of
Saw Mill PCG Partners LLC (B)
|
17 uts.
|
* | 16,759 | |||||||||||||
Limited Liability Company Unit Class D-1 of
Saw Mill PCG Partners LLC (B)
|
229 uts.
|
09/30/09
|
228,858 | 112,661 | ||||||||||||
Limited Liability Company Unit Class D-2 of
Saw Mill PCG Partners LLC (B)
|
128 uts.
|
04/29/11
|
65,256 | 250,202 | ||||||||||||
* 12/18/08 and 09/30/09.
|
3,415,662 | 2,267,599 | ||||||||||||||
Newark Group, Inc.
|
||||||||||||||||
A major producer of paper products from recycled materials.
|
||||||||||||||||
Common Stock (B)
|
134,520 shs.
|
09/02/10
|
796,862 | 904,782 | ||||||||||||
Nicoat Acquisitions LLC
|
||||||||||||||||
A manufacturer of water-based and ultraviolet coatings for high-performance graphic arts, packaging and other specialty coating applications.
|
||||||||||||||||
14% Senior Subordinated Note due 2018
|
$ | 1,454,918 |
11/05/10
|
1,374,549 | 1,454,918 | |||||||||||
Limited Liability Company Unit Series B (B)
|
51,724 uts.
|
11/05/10
|
51,724 | 101,276 | ||||||||||||
Limited Liability Company Unit Series B (B)
|
104,792 uts.
|
11/05/10
|
104,792 | 205,183 | ||||||||||||
Limited Liability Company Unit Series F (B)
|
104,792 uts.
|
11/05/10
|
— | 25,360 | ||||||||||||
1,531,065 | 1,786,737 | |||||||||||||||
Northwest Mailing Services, Inc.
|
||||||||||||||||
A producer of promotional materials for companies that use direct mail as part of their customer retention and loyalty programs.
|
||||||||||||||||
Limited Partnership Interest (B)
|
3,287 uts.
|
* | 328,679 | 308,590 | ||||||||||||
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B)
|
4,920 shs.
|
* | 492,016 | 461,944 | ||||||||||||
* 07/09/09 and 08/09/10.
|
820,695 | 770,534 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
NT Holding Company
|
||||||||||||||||
A leading developer, manufacturer and provider of medical products used primarily in interventional pain management.
|
||||||||||||||||
Common Stock (B)
|
377 shs.
|
* | $ | 377,399 | $ | 862,165 | ||||||||||
Warrant, exercisable until 2021, to purchase
common stock at $.01 per share (B)
|
176 shs.
|
02/02/11
|
158,961 | 402,663 | ||||||||||||
* 02/02/11 and 06/30/11.
|
536,360 | 1,264,828 | ||||||||||||||
O E C Holding Corporation
|
||||||||||||||||
A provider of elevator maintenance, repair and modernization services.
|
||||||||||||||||
13% Senior Subordinated Note due 2018
|
$ | 1,333,333 |
06/04/10
|
1,264,869 | 1,333,333 | |||||||||||
Preferred Stock Series A (B)
|
1,661 shs.
|
06/04/10
|
166,062 | 77,857 | ||||||||||||
Preferred Stock Series B (B)
|
934 shs.
|
06/04/10
|
93,376 | — | ||||||||||||
Common Stock (B)
|
1,032 shs.
|
06/04/10
|
1,032 | — | ||||||||||||
1,525,339 | 1,411,190 | |||||||||||||||
Ontario Drive & Gear Ltd.
|
||||||||||||||||
A manufacturer of all-wheel drive, off-road amphibious vehicles and related accessories.
|
||||||||||||||||
Limited Liability Company Unit (B)
|
3,667 uts.
|
01/17/06
|
572,115 | 1,478,498 | ||||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B)
|
619 shs.
|
01/17/06
|
170,801 | 249,623 | ||||||||||||
742,916 | 1,728,121 | |||||||||||||||
P K C Holding Corporation
|
||||||||||||||||
A manufacturer of plastic film and badges for the general industrial, medical, and food industries.
|
||||||||||||||||
Preferred Stock Class A (B)
|
54 shs.
|
12/21/10
|
340,718 | 654,546 | ||||||||||||
Common Stock (B)
|
54 shs.
|
12/21/10
|
25,500 | 293,155 | ||||||||||||
366,218 | 947,701 | |||||||||||||||
P P T Holdings LLC
|
||||||||||||||||
A high-end packaging solutions provider that targets customers who have multiple packaging needs, require a high number of low volume SKUs, short lead times, technical expertise, and overall supply chain management.
|
||||||||||||||||
15% Senior Subordinated Note due 2017
|
$ | 2,980,600 |
12/20/10
|
2,947,387 | 2,980,600 | |||||||||||
Limited Liability Company Unit Class A (B)
|
99 uts.
|
12/20/10
|
318,215 | 409,747 | ||||||||||||
Limited Liability Company Unit Class B (B)
|
99 uts.
|
12/20/10
|
3,214 | 133,474 | ||||||||||||
3,268,816 | 3,523,821 | |||||||||||||||
Pacific Consolidated Holdings LLC
|
||||||||||||||||
A manufacturer of rugged, mobile liquid and gaseous oxygen and nitrogen generating systems used in the global defense, oil and gas, and medical sectors.
|
||||||||||||||||
0% Senior Subordinated Note due 2014 (B)
|
$ | 79,688 |
12/18/12
|
— | 79,688 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Pearlman Enterprises, Inc.
|
||||||||||||||||
A developer and distributor of tools, equipment, and supplies to the natural and engineered stone industry.
|
||||||||||||||||
Preferred Stock Series A (B)
|
2,334 shs.
|
05/22/09
|
$ | 111,508 | $ | 119,229 | ||||||||||
Preferred Stock Series B (B)
|
13,334 shs.
|
05/22/09
|
547,872 | — | ||||||||||||
Common Stock (B)
|
40,540 shs.
|
05/22/09
|
1,877,208 | — | ||||||||||||
2,536,588 | 119,229 | |||||||||||||||
Petroplex Inv Holdings LLC
|
||||||||||||||||
A leading provider of acidizing services to E&P customers in the Permian Basin.
|
||||||||||||||||
16% Senior Subordinated Note due 2018
|
$ | 2,798,554 |
11/29/12
|
2,746,317 | 2,907,849 | |||||||||||
Limited Liability Company Unit (B)
|
1 ut.
|
11/29/12
|
375,000 | 510,845 | ||||||||||||
3,121,317 | 3,418,694 | |||||||||||||||
Precision Wire Holding Company
|
||||||||||||||||
A manufacturer of specialty medical wires that are used in non-elective minimally invasive surgical procedures.
|
||||||||||||||||
Warrant, exercisable until 2019, to purchase
common stock at $.01 per share (B)
|
206 shs.
|
11/12/09
|
203,944 | 370,963 | ||||||||||||
R A J Manufacturing Holdings LLC
|
||||||||||||||||
A designer and manufacturer of women’s swimwear sold under a variety of licensed brand names.
|
||||||||||||||||
8% Senior Subordinated Note due 2017
|
$ | 94,270 |
01/02/14
|
410,667 | 94,270 | |||||||||||
Preferred Stock Series B-1 (B)
|
18 shs.
|
01/02/14
|
707,024 | 707,022 | ||||||||||||
Common Stock (B)
|
10 shs.
|
01/02/14
|
414,787 | 50,915 | ||||||||||||
Limited Liability Company Unit (B)
|
2,828 uts.
|
12/15/06
|
282,810 | 34,715 | ||||||||||||
Warrant, exercisable until 2014, to purchase
common stock at $.01 per share (B)
|
3 shs.
|
12/15/06
|
131,483 | 16,371 | ||||||||||||
1,946,771 | 903,293 | |||||||||||||||
REVSpring, Inc.
|
||||||||||||||||
A provider of accounts receivable management and revenue cycle management services to customers in the healthcare, financial and utility industries.
|
||||||||||||||||
14% Senior Subordinated Note due 2018
|
$ | 3,517,112 | * | 3,472,927 | 3,582,762 | |||||||||||
Limited Liability Company Unit Class A (B)
|
40,643 uts.
|
* | 406,432 | 469,845 | ||||||||||||
* 10/21/11 and 08/03/12.
|
3,879,359 | 4,052,607 | ||||||||||||||
Rose City Holding Company
|
||||||||||||||||
A designer and printer of folding cartons and packaging for food and beverage manufacturers on the West Coast.
|
||||||||||||||||
Preferred Stock (B)
|
93,749 shs.
|
12/11/12
|
93,749 | 106,803 | ||||||||||||
Common Stock (B)
|
94 shs.
|
12/11/12
|
9 | 101,102 | ||||||||||||
93,758 | 207,905 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Safety Infrastructure Solutions
|
||||||||||||||||
A provider of trench safety equipment to a diverse customer base across multiple end markets in Texas and the Southwestern United States.
|
||||||||||||||||
15% Senior Subordinated Note due 2018
|
$ | 2,531,250 | * | $ | 2,502,874 | $ | 2,556,563 | |||||||||
Preferred Stock (B)
|
6,294 shs.
|
03/30/12
|
251,758 | 301,911 | ||||||||||||
Common Stock (B)
|
2,949 shs.
|
03/30/12
|
29,492 | 130,087 | ||||||||||||
* 03/30/12 and 05/16/13.
|
2,784,124 | 2,988,561 | ||||||||||||||
Sencore Holding Company
|
||||||||||||||||
A designer, manufacturer, and marketer of decoders, receivers and modulators sold to broadcasters, satellite, cable and telecom operators for encoding/decoding analog and digital transmission video signals.
|
||||||||||||||||
7% Senior Subordinated Note due 2014 (D)
|
$ | 2,606,560 |
01/15/09
|
1,560,231 | — | |||||||||||
Signature Systems Holdings Company
|
||||||||||||||||
A seller and installer of a variety of modular surfaces, industrial matting and related products used for ground protection.
|
||||||||||||||||
12.5% Senior Subordinated Note due 2021
|
$ | 1,812,211 |
03/15/13
|
1,718,269 | 1,848,455 | |||||||||||
Common Stock (B)
|
181 shs.
|
03/15/13
|
181,221 | 338,053 | ||||||||||||
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)
|
74 shs.
|
03/15/13
|
67,958 | 138,098 | ||||||||||||
1,967,448 | 2,324,606 | |||||||||||||||
Smart Source Holdings LLC
|
||||||||||||||||
A short-term computer rental company.
|
||||||||||||||||
Limited Liability Company Unit (B)
|
619 uts.
|
* | 493,496 | 917,033 | ||||||||||||
Warrant, exercisable until 2015, to purchase
common stock at $.01 per share (B)
|
157 shs.
|
* | 127,437 | 232,315 | ||||||||||||
* 08/31/07 and 03/06/08.
|
620,933 | 1,149,348 | ||||||||||||||
SMB Machinery Holdings, Inc.
|
||||||||||||||||
A reseller of used, rebuilt and refurbished packaging and processing equipment, primarily serving the bottling and food manufacturing industries.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 1,477,388 |
10/18/13
|
1,450,533 | 1,427,156 | |||||||||||
Common Stock (B)
|
1,681 shs.
|
10/18/13
|
168,100 | 4,888 | ||||||||||||
1,618,633 | 1,432,044 | |||||||||||||||
Snacks Parent Corporation
|
||||||||||||||||
The world's largest provider of trail mixes and a leading provider of snack nuts, dried fruits, and other healthy snack products.
|
||||||||||||||||
13% Senior Subordinated Note due 2020
|
$ | 2,702,880 |
11/12/10
|
2,597,782 | 2,702,880 | |||||||||||
Preferred Stock A (B)
|
3,395 shs.
|
11/12/10
|
301,503 | 243,531 | ||||||||||||
Preferred Stock B (B)
|
1,575 shs.
|
11/12/10
|
113,007 | |||||||||||||
Common Stock (B)
|
19,737 shs.
|
11/12/10
|
19,737 | 876,069 | ||||||||||||
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)
|
5,418 shs.
|
11/12/10
|
5,418 | 240,507 | ||||||||||||
2,924,440 | 4,175,994 |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | |||||||||||
Spartan Foods Holding Company
|
|||||||||||||||
A manufacturer of branded pizza crusts and pancakes.
|
|||||||||||||||
14.25% Senior Subordinated Note due 2017
|
$ | 2,267,934 |
12/15/09
|
$ | 2,075,984 | $ | 2,286,968 | ||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
257 shs.
|
12/15/09
|
227,109 | 181,996 | |||||||||||
2,303,093 | 2,468,964 | ||||||||||||||
Specialty Commodities, Inc.
|
|||||||||||||||
A distributor of specialty food ingredients.
|
|||||||||||||||
Common Stock (B)
|
30 shs.
|
10/23/08
|
300,000 | 799,816 | |||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
11 shs.
|
10/23/08
|
100,650 | 303,930 | |||||||||||
400,650 | 1,103,746 | ||||||||||||||
Stag Parkway Holding Company
|
|||||||||||||||
A distributor of RV parts and accessories in the United States.
|
|||||||||||||||
13% Senior Subordinated Note due 2018
|
$ | 2,758,153 |
12/19/12
|
2,654,296 | 2,813,316 | ||||||||||
Common Stock (B)
|
284 shs.
|
12/19/12
|
283,688 | 295,396 | |||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
83 shs.
|
12/19/12
|
76,435 | 86,748 | |||||||||||
3,014,419 | 3,195,460 | ||||||||||||||
Strahman Holdings Inc
|
|||||||||||||||
A manufacturer of industrial valves and wash down equipment for a variety of industries, including chemical, petrochemical, polymer, pharmaceutical, food processing, beverage and mining.
|
|||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 2,119,565 |
12/13/13
|
2,079,182 | 2,171,226 | ||||||||||
Preferred Stock A (B)
|
317,935 shs.
|
12/13/13
|
317,935 | 322,981 | |||||||||||
2,397,117 | 2,494,207 | ||||||||||||||
Strata/WLA Holding Corporation
|
|||||||||||||||
A leading independent anatomic pathology laboratory that conducts over 320,000 tests annually to customers in 40 U.S. states and in Canada and Venezuela.
|
|||||||||||||||
14.5% Senior Subordinated Note due 2018 (D)
|
$ | 2,877,446 |
07/01/11
|
2,831,111 | — | ||||||||||
Preferred Stock Series A (B)
|
228 shs.
|
07/01/11
|
228,137 | — | |||||||||||
3,059,248
|
— | ||||||||||||||
Sundance Investco LLC
|
|||||||||||||||
A provider of post-production services to producers of movies and television shows.
|
|||||||||||||||
Limited Liability Company Unit Class A (B)
|
6,429 shs.
|
03/31/10
|
— | — |
Corporate Restricted Securities: (A) (Continued)
|
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
Sunrise Windows Holding Company
|
||||||||||||||||
A manufacturer and marketer of premium vinyl windows exclusively selling to the residential remodeling and replacement market.
|
||||||||||||||||
14% Senior Subordinated Note due 2017
|
$ | 3,099,998 |
12/14/10
|
$ | 2,993,924 | $ | 3,103,352 | |||||||||
14% Senior Subordinated PIK Note due 2017
|
$ | 291,390 |
08/17/12
|
283,647 | 291,705 | |||||||||||
Common Stock (B)
|
115 shs.
|
12/14/10
|
114,504 | 90,577 | ||||||||||||
Warrant, exercisable until 2020, to purchase
common stock at $.01 per share (B)
|
112 shs.
|
12/14/10
|
111,747 | 88,402 | ||||||||||||
3,503,822 | 3,574,036 | |||||||||||||||
Synteract Holdings Corporation
|
||||||||||||||||
A provider of outsourced clinical trial management services to pharmaceutical and biotechnology companies.
|
||||||||||||||||
14% Senior Subordinated Note due 2019
|
$ | 3,697,876 |
09/02/08
|
3,586,991 | 3,328,089 | |||||||||||
Preferred Stock Series D (B)
|
485 shs.
|
02/27/13
|
48,503 | — | ||||||||||||
Redeemable Preferred Stock Series A (B)
|
1,280 shs.
|
09/02/08
|
12,523 | — | ||||||||||||
Warrant, exercisable until 2018, to purchase
common stock at $.01 per share (B)
|
12,803 shs.
|
09/02/08
|
112,693 | — | ||||||||||||
3,760,710 | 3,328,089 | |||||||||||||||
Terra Renewal LLC
|
||||||||||||||||
A provider of wastewater residual management and required environmental reporting, permitting, nutrient management planning and record keeping to companies involved in poultry and food processing.
|
||||||||||||||||
10% Senior Subordinated Note due 2016 (D)
|
$ | 613,982 | * | 16,334 | 613,982 | |||||||||||
Common Stock Class B
|
55 shs.
|
* | — | — | ||||||||||||
Limited Partnership Interest of
|
— | — | ||||||||||||||
Saw Mill Capital Fund V, LLC (B)
|
3.97% int.
|
** | 114,424 | — | ||||||||||||
Warrant, exercisable until 2016, to purchase
common stock at $.01 per share (B)
|
72 shs.
|
04/28/06
|
59,041 | — | ||||||||||||
* 04/28/06 and 09/13/06.
|
189,799 | 613,982 | ||||||||||||||
** 03/01/05 and 10/10/08.
|
||||||||||||||||
Torrent Group Holdings, Inc.
|
||||||||||||||||
A contractor specializing in the sales and installation of engineered drywells for the retention and filtration of stormwater and nuisance water flow.
|
||||||||||||||||
3% Senior Subordinated Note due 2018 (D)
|
$ | 2,006,491 |
12/05/13
|
1,805,842 | ||||||||||||
15% Senior Subordinated Note due 2020(D)
|
$ | 88,396 |
12/05/13
|
414,051 | — | |||||||||||
Warrant, exercisable until 2023, to purchase
common stock at $.01 per share (B)
|
53,038 shs.
|
12/05/13
|
— | — | ||||||||||||
414,051 | 1,805,842 |
Corporate Restricted Securities: (A) (Continued) |
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition Date | Cost | Fair Value | ||||||||||||
Transpac Holding Company
|
||||||||||||||||
A designer, importer and wholesaler of home décor and seasonal gift products.
|
||||||||||||||||
12% Senior Subordinated Note due 2015 (D)
|
$ | 1,773,006 | 10/31/07 | $ | 1,717,521 | $ | 531,902 | |||||||||
Common Stock (B)
|
209 shs. | 10/31/07 | 208,589 | — | ||||||||||||
Warrant, exercisable until 2015, to purchase
|
||||||||||||||||
common stock at $.01 per share (B)
|
94 shs. | 10/31/07 | 87,607 | — | ||||||||||||
2,013,717 | 531,902 | |||||||||||||||
Tranzonic Holdings LLC | ||||||||||||||||
A producer of commercial and industrial supplies, such as safety products, janitorial supplies, work apparel, washroom and restroom supplies and sanitary care products. | ||||||||||||||||
14% Senior Subordinated Note due 2019 | $ | 3,013, 247 | 07/05/13 | 2,960,792 | 3,043,379 | |||||||||||
Limited Liability Company Unit Class A (B) | 295,455 uts. | 07/05/13 | 295,455 | 299,495 | ||||||||||||
3,256,247 | 3,342,874 | |||||||||||||||
Truck Bodies & Equipment International | ||||||||||||||||
A designer and manufacturer of accessories for heavy and medium duty trucks, primarily dump bodies, hoists, various forms of flat-bed bodies, landscape bodies and other accessories. | ||||||||||||||||
12% Senior Subordinated Note due 2016
|
$ | 1,373,340 | * | 1,349,579 | 1,373,340 | |||||||||||
Preferred Stock Series B (B)
|
241 shs.
|
10/20/08
|
241,172 | 968,510 | ||||||||||||
Common Stock (B)
|
742 shs.
|
* | 800,860 | — | ||||||||||||
Warrant, exercisable until 2017, to purchase
|
||||||||||||||||
common stock at $.02 per share (B)
|
153 shs.
|
* | 159,894 | — | ||||||||||||
Warrant, exercisable until 2018, to purchase
|
||||||||||||||||
common stock at $.01 per share (B) |
1,054 shs.
|
10/20/08
|
— | — | ||||||||||||
* 07/19/05 and 12/22/05.
|
2,551,505 | 2,341,850 | ||||||||||||||
TruStile Doors, Inc. | ||||||||||||||||
A manufacturer and distributor of interior doors.
|
||||||||||||||||
Limited Liability Company Unit (B)
|
11,775 uts. | 02/28/11 | 156,250 | 412,014 | ||||||||||||
Warrant, exercisable until 2016, to purchase | ||||||||||||||||
common stock at $.01 per share (B)
|
5,781 shs. | 04/11/03 | 68,059 | 42,822 | ||||||||||||
224,309 | 454,836 | |||||||||||||||
U-Line Corporation
|
||||||||||||||||
A manufacturer of high-end, built-in, undercounter ice making, wine storage and refrigeration appliances.
|
||||||||||||||||
Common Stock (B)
|
182 shs. | 04/30/04 | 182,200 | 430,633 | ||||||||||||
Warrant, exercisable until 2016, to purchase | ||||||||||||||||
common stock at $.01 per share (B) | 230 shs. | 04/30/04 | 211,736 | 544,602 | ||||||||||||
393,936 | 975,235 |
Corporate Restricted Securities: (A) (Continued) |
Principal Amount,
Shares, Units or
Ownership Percentage
|
Acquisition
Date
|
Cost | Fair Value | ||||||||||||
U M A Enterprises, Inc. | ||||||||||||||||
An importer and wholesaler of home décor products. | ||||||||||||||||
15% Senior Subordinated Note due 2021
|
$ | 2,335,922 |
06/06/14
|
639,157 | 2,335,922 | |||||||||||
Warrant, exercisable until 2024, to purchase
|
||||||||||||||||
common stock at $.01 per share (B)
|
1,493 shs.
|
06/06/14
|
— | — | ||||||||||||
639,157 | 2,335,922 | |||||||||||||||
Vitex Packaging Group, Inc.
|
||||||||||||||||
A manufacturer of specialty packaging, primarily envelopes and tags used on tea bags.
|
||||||||||||||||
Class B Unit (B)
|
767,881 uts.
|
10/29/09
|
348,058 | — | ||||||||||||
Class C Unit (B)
|
850,000 uts.
|
10/29/09
|
780,572 | 173,647 | ||||||||||||
Limited Liability Company Unit Class A (B)
|
723,465 uts.
|
* | 433,222 | — | ||||||||||||
Limited Liability Company Unit Class B (B)
|
182,935 uts.
|
07/19/04
|
182,935 | — | ||||||||||||
* 07/19/04 and 10/29/09.
|
1,744,787 | 173,647 | ||||||||||||||
VP Holding Company
|
||||||||||||||||
A provider of school transportation services for special-needs and homeless children in Massachusetts.
|
||||||||||||||||
13% Senior Subordinated Note due 2020 | $ | 1,015,691 | 03/31/14 | 995,994 | 1,035,882 | |||||||||||
Common Stock (B)
|
7,368 shs. | 03/31/14 | 736,842 | 700,000 | ||||||||||||
1,732,836 | 1,735,882 | |||||||||||||||
Wellborn Forest Holding Company
|
||||||||||||||||
A manufacturer of semi-custom kitchen and bath cabinetry.
|
||||||||||||||||
12.13% Senior Subordinated Note due 2016 (D) | $ | 3,175,092 | 11/30/06 | 1,638,669 | — | |||||||||||
Common Stock (B) | 191 shs. | 11/30/06 | 191,250 | — | ||||||||||||
Warrant, exercisable until 2016, to purchase | ||||||||||||||||
common stock at $.01 per share (B) | 95 shs. | 11/30/06 | 86,493 | — | ||||||||||||
1,916,412 | — | |||||||||||||||
Wheaton Holding Corporation
|
||||||||||||||||
A distributor and manufacturer of laboratory supply products and packaging. | ||||||||||||||||
Preferred Stock Series B (B) | 2,109 shs. | 06/08/10 | 210,924 | 303,976 | ||||||||||||
Common Stock (B) | 1,058 shs. | 06/08/10 | 1,058 | 143,039 | ||||||||||||
211,982 | 447,015 | |||||||||||||||
Whitcraft Holdings, Inc.
|
||||||||||||||||
A leading independent manufacturer of precision formed, machined, and fabricated flight-critical aerospace components.
|
||||||||||||||||
12% Senior Subordinated Note due 2018
|
$ | 2,383,562 |
12/16/10
|
2,250,545 | 2,373,816 | |||||||||||
Common Stock (B)
|
616 shs.
|
12/16/10
|
616,438 | 252,339 | ||||||||||||
Warrant, exercisable until 2018, to purchase | ||||||||||||||||
common stock at $.02 per share (B)
|
166 shs.
|
12/16/10
|
148,003 | 67,804 | ||||||||||||
3,014,986 | 2,693,959 |
Corporate Restricted Securities: (A) (Continued) |
Principal Amount,
Shares, Units or Ownership Percentage
|
Acquisition
|
Cost | Fair Value | ||||||||||||
WP Supply Holding Corporation
|
||||||||||||||||
A distributor of fresh fruits and vegetables to grocery wholesalers and foodservice distributors in the upper Midwest.
|
||||||||||||||||
14.5% Senior Subordinated Note due 2018
|
$ | 2,724,864 |
11/03/11
|
$ | 2,687,390 | $ | 2,779,361 | |||||||||
Common Stock (B)
|
4,500 shs.
|
11/03/11
|
450,000 | 573,825 | ||||||||||||
3,137,390 | 3,353,186 | |||||||||||||||
Total Private Placement Investments (E)
|
$ | 193,024,309 | $ | 197,542,737 |
Corporate Restricted Securities: (A) (Continued)
|
Interest
Rate
|
Due
Date
|
Principal
Amount
|
Cost
|
Market
Value
|
||||||||||||
Rule 144A Securities - 15.21%: | |||||||||||||||||
Bonds - 15.16% | |||||||||||||||||
Alliant Techsystems Inc.
|
5.250 | % |
10/01/21
|
$ | 1,000,000 | $ | 1,000,000 | $ | 1,032,500 | ||||||||
Altice S.A.
|
7.750 |
05/15/22
|
1,000,000 | 1,000,000 | 1,067,500 | ||||||||||||
Ashtead Group plc
|
6.500 |
07/15/22
|
385,000 | 406,940 | 420,613 | ||||||||||||
Belden Inc.
|
5.250 |
07/15/24
|
410,000 | 410,000 | 413,075 | ||||||||||||
Beverage Packaging Holdings
|
6.000 |
06/15/17
|
730,000 | 730,000 | 748,250 | ||||||||||||
Calpine Corporation
|
7.500 |
02/15/21
|
600,000 | 613,526 | 651,000 | ||||||||||||
Commercial Vehicle Group Inc.
|
7.875 |
04/15/19
|
989,000 | 1,014,921 | 1,028,560 | ||||||||||||
Commscope Holdings Inc.
|
6.625 |
06/01/20
|
500,000 | 501,124 | 533,750 | ||||||||||||
Cornerstone Chemical Company
|
9.375 |
03/15/18
|
750,000 | 766,178 | 793,125 | ||||||||||||
CTP Transportation Products, LLC
|
8.250 |
12/15/19
|
635,000 | 635,000 | 684,213 | ||||||||||||
Exopack LLC
|
7.875 |
11/01/19
|
1,000,000 | 1,000,000 | 1,070,000 | ||||||||||||
Ferrellgas Partners, L.P
|
6.750 |
01/15/22
|
465,000 | 465,000 | 485,925 | ||||||||||||
Forest Laboratories, Inc.
|
4.875 |
02/15/21
|
1,000,000 | 1,000,000 | 1,092,020 | ||||||||||||
Forest Laboratories, Inc.
|
5.000 |
12/15/21
|
775,000 | 775,000 | 849,291 | ||||||||||||
Forum Energy Technologies
|
6.250 |
10/01/21
|
325,000 | 325,000 | 344,500 | ||||||||||||
Hercules Offshore, Inc.
|
7.500 |
10/01/21
|
1,000,000 | 1,000,000 | 992,500 | ||||||||||||
Hilcorp Energy Company
|
5.000 |
12/01/24
|
500,000 | 500,000 | 500,000 | ||||||||||||
Hilcorp Energy Company
|
7.625 |
04/15/21
|
725,000 | 699,296 | 792,063 | ||||||||||||
Hilton Worldwide Holdings, Inc.
|
5.625 |
10/15/21
|
1,000,000 | 1,000,000 | 1,062,500 | ||||||||||||
Hovnanian Enterprises, Inc.
|
7.250 |
10/15/20
|
1,000,000 | 1,000,000 | 1,085,000 | ||||||||||||
Hub International Ltd.
|
7.875 |
10/01/21
|
1,000,000 | 1,000,000 | 1,071,250 | ||||||||||||
INEOS Group Holdings PLC
|
5.875 |
02/01/19
|
485,000 | 485,000 | 497,125 | ||||||||||||
International Automotive Component
|
9.125 |
06/01/18
|
1,000,000 | 960,522 | 1,062,500 | ||||||||||||
J.B. Poindexter Co., Inc.
|
9.000 |
04/01/22
|
1,000,000 | 1,049,021 | 1,112,500 | ||||||||||||
JBS USA Holdings, Inc.
|
7.750 |
10/28/20
|
750,000 | 788,974 | 802,500 | ||||||||||||
Jurassic Holdings III Inc
|
6.875 |
02/15/21
|
1,000,000 | 1,009,308 | 1,020,000 | ||||||||||||
Lamar Media Corporation
|
5.375 |
01/15/24
|
320,000 | 320,000 | 331,200 | ||||||||||||
LBC Tank Terminals Holding Netherlands B.V.
|
6.875 |
05/15/23
|
1,315,000 | 1,354,922 | 1,387,325 | ||||||||||||
MEG Energy Corporation
|
7.000 |
03/31/24
|
1,000,000 | 1,000,000 | 1,102,500 | ||||||||||||
Meritor, Inc.
|
7.875 |
03/01/26
|
669,000 | 663,403 | 1,076,672 | ||||||||||||
Milacron Financial
|
7.750 |
02/15/21
|
500,000 | 500,000 | 547,500 | ||||||||||||
Mustang Merger Corporation
|
8.500 |
08/15/21
|
1,000,000 | 997,658 | 1,090,000 | ||||||||||||
Niska Gas Storage Partners LLC
|
6.500 |
04/01/19
|
1,000,000 | 1,000,000 | 960,000 | ||||||||||||
NRG Energy, Inc.
|
6.250 |
07/15/22
|
1,000,000 | 1,000,000 | 1,065,000 | ||||||||||||
NXP BV/NXP Funding LLC
|
3.750 |
06/01/18
|
1,500,000 | 1,500,000 | 1,503,750 | ||||||||||||
Oasis Petroleum Inc.
|
6.875 |
03/15/22
|
1,000,000 | 1,000,000 | 1,090,000 |
Corporate Restricted Securities: (A) (Continued)
|
Interest
Rate
|
Due
Date
|
Shares or
PrincipalAmount
|
Cost
|
Market
Value
|
||||||||||||
Pinnacle Operating Corporation | 9.000 | % | 11/15/20 | $ | 1,000,000 | $ | 1,044,111 | $ | 1,085,000 | ||||||||
Prestige Brands Holdings, Inc.
|
5.375 |
12/15/21
|
1,350,000 | 1,350,000 | 1,377,000 | ||||||||||||
RKI Inc.
|
8.500 |
08/01/21
|
1,000,000 | 1,004,594 | 1,085,000 | ||||||||||||
Roofing Supply
|
10.000 |
06/01/20
|
975,000 | 1,094,056 | 1,038,375 | ||||||||||||
Safway Group Holding LLC/Finance Corporation
|
7.000 |
05/15/18
|
500,000 | 500,000 | 530,000 | ||||||||||||
Select Medical Corporation
|
6.375 |
06/01/21
|
650,000 | 659,418 | 679,250 | ||||||||||||
Sirius XM Radio Inc.
|
5.875 |
10/01/20
|
750,000 | 750,000 | 793,125 | ||||||||||||
Sprint Corporation
|
7.125 |
06/15/24
|
315,000 | 315,000 | 333,900 | ||||||||||||
Tesoro Logistics LP
|
5.875 |
10/01/20
|
1,000,000 | 1,020,988 | 1,055,000 | ||||||||||||
Topaz Marine S.A.
|
8.625 |
11/01/18
|
1,000,000 | 1,000,000 | 1,077,500 | ||||||||||||
Univision Communications, Inc.
|
5.125 |
05/15/23
|
325,000 | 325,000 | 344,093 | ||||||||||||
Valeant Pharmaceuticals International
|
6.750 |
10/01/17
|
70,000 | 69,798 | 72,975 | ||||||||||||
Valeant Pharmaceuticals International
|
7.000 |
10/01/20
|
880,000 | 881,433 | 935,000 | ||||||||||||
Welltec A/S
|
8.000 |
02/01/19
|
750,000 | 738,848 | 798,750 | ||||||||||||
Woodside Homes Company, LLC
|
6.750 |
12/15/21
|
1,000,000 | 1,002,453 | 1,020,000 | ||||||||||||
Total Bonds
|
41,226,492 | 43,591,175 | |||||||||||||||
Convertible Preferred Stock - 0.00%
|
|||||||||||||||||
ETEX Corporation (B)
|
777 | — | — | ||||||||||||||
Total Convertible Preferred Stock
|
— | — | |||||||||||||||
Preferred Stock - 0.05%
|
|||||||||||||||||
Ally Financial, Inc.
|
143 | 45,009 | 143,362 | ||||||||||||||
TherOX, Inc. (B)
|
103 | — | — | ||||||||||||||
Total Preferred Stock | 45,009 | 143,362 | |||||||||||||||
Common Stock - 0.00%
|
|||||||||||||||||
Touchstone Health Partnership (B) | 1,168 | — | — | ||||||||||||||
Total Common Stock | — | — | |||||||||||||||
Total 144A Securities | 41,271,501 | 43,734,537 | |||||||||||||||
Total Corporate Restricted Securities | |||||||||||||||||
$ | 234,295,810 | $ | 241,277,274 |
Corporate Public Securities - 18.10%: (A)
|
Interest
Rate |
Due
Date |
Principal
Amount |
Cost
|
Market
Value
|
||||||||||||
Bank Loans - 0.87%
|
|||||||||||||||||
Aquilex Holdings LLC
|
5.250 | % |
12/31/20
|
$ | 296,432 | $ | 295,737 | $ | 294,949 | ||||||||
Caelus Energy Alaska, LLC
|
8.750 |
04/15/20
|
1,000,000 | 990,000 | 983,330 | ||||||||||||
Synarc-BioCore Holdings, LLC
|
9.250 |
03/04/22
|
1,000,000 | 990,341 | 990,000 | ||||||||||||
Triple Point Technology, Inc.
|
9.250 |
07/09/21
|
259,223 | 225,038 | 228,765 | ||||||||||||
Total Bank Loans
|
2,501,116 | 2,497,044 | |||||||||||||||
Bonds - 16.93%
|
|||||||||||||||||
AAR Corporation | 7.250 | % | 01/15/22 | $ | 2,000,000 | $ | 2,111,019 | $ | 2,190,000 | ||||||||
Accuride Corp
|
9.500 |
08/01/18
|
1,500,000 | 1,531,233 | 1,580,100 | ||||||||||||
ADT Corporation
|
6.250 |
10/15/21
|
1,000,000 | 1,035,430 | 1,060,000 | ||||||||||||
Ally Financial, Inc.
|
5.500 |
02/15/17
|
1,500,000 | 1,520,071 | 1,625,625 | ||||||||||||
Alta Mesa Financial Services
|
9.625 |
10/15/18
|
1,500,000 | 1,501,106 | 1,575,000 | ||||||||||||
American Axle & Manufacturing, Inc.
|
5.125 |
02/15/19
|
240,000 | 240,000 | 252,000 | ||||||||||||
Antero Resources Corporation
|
5.375 |
11/01/21
|
800,000 | 800,000 | 830,000 | ||||||||||||
Arch Coal, Inc.
|
7.000 |
06/15/19
|
150,000 | 150,000 | 113,625 | ||||||||||||
Avis Budget Car Rental
|
9.750 |
03/15/20
|
750,000 | 750,000 | 849,375 | ||||||||||||
B E Aerospace, Inc.
|
6.875 |
10/01/20
|
850,000 | 866,238 | 923,313 | ||||||||||||
Braskem Finance Ltd.
|
6.450 |
02/03/24
|
815,000 | 815,000 | 871,031 | ||||||||||||
Calumet Specialty Products Partners L.P.
|
7.625 |
01/15/22
|
1,000,000 | 1,007,988 | 1,075,000 | ||||||||||||
CCO Holdings Capital Corporation
|
7.250 |
10/30/17
|
750,000 | 761,844 | 791,250 | ||||||||||||
Cimarex Energy Co.
|
5.875 |
05/01/22
|
1,000,000 | 1,072,111 | 1,105,000 | ||||||||||||
CIT Group Inc.
|
3.875 |
02/19/19
|
1,000,000 | 1,000,000 | 1,015,600 | ||||||||||||
CHC Helicopter SA
|
9.375 |
06/01/21
|
1,500,000 | 1,500,000 | 1,601,250 | ||||||||||||
Chemtura Corporation
|
7.875 |
09/01/18
|
500,000 | 520,531 | 524,150 | ||||||||||||
Chrysler Group, LLC
|
8.000 |
06/15/19
|
415,000 | 447,051 | 450,794 | ||||||||||||
Chrysler Group, LLC
|
8.250 |
06/15/21
|
415,000 | 456,706 | 468,950 | ||||||||||||
Clearwater Paper Corporation
|
4.500 |
02/01/23
|
750,000 | 743,270 | 727,500 | ||||||||||||
Coeur d’Alene Mines Corporation
|
7.875 |
02/01/21
|
1,000,000 | 1,003,406 | 1,005,000 | ||||||||||||
Commercial Metals Company
|
4.875 |
05/15/23
|
1,500,000 | 1,502,868 | 1,462,500 | ||||||||||||
CVR Refining LLC
|
6.500 |
11/01/22
|
650,000 | 628,765 | 685,750 | ||||||||||||
Fidelity National Information
|
7.875 |
07/15/20
|
125,000 | 125,000 | 132,383 | ||||||||||||
First Data Corporation
|
11.750 |
08/15/21
|
1,000,000 | 1,000,000 | 1,186,250 | ||||||||||||
Halcón Resources Corporation
|
9.750 |
07/15/20
|
1,000,000 | 1,047,909 | 1,091,250 | ||||||||||||
Headwaters, Inc.
|
7.625 |
04/01/19
|
850,000 | 850,164 | 907,375 | ||||||||||||
HCA Holdings, Inc.
|
3.750 |
03/15/19
|
1,000,000 | 1,000,000 | 1,008,750 | ||||||||||||
Hornbeck Offshore Services, Inc.
|
5.000 |
03/01/21
|
500,000 | 500,000 | 498,750 | ||||||||||||
Huntington Ingalls Industries
|
7.125 |
03/15/21
|
750,000 | 774,271 | 819,375 | ||||||||||||
Icahn Enterprises L.P.
|
4.875 |
03/15/19
|
970,000 | 970,000 | 999,100 | ||||||||||||
Icahn Enterprises L.P.
|
6.000 |
08/01/20
|
1,150,000 | 1,171,674 | 1,231,937 |
Corporate Public Securities: (A) (Continued) |
Interest
Rate
|
Due
Date
|
Principal
Amount
|
Cost |
Market
Value
|
||||||||||||
Lear Corporation
|
4.750 | % |
01/15/23
|
$ | 750,000 | $ | 736,378 | $ | 746,250 | ||||||||
Lennar Corporation
|
4.750 |
11/15/22
|
750,000 | 739,512 | 746,250 | ||||||||||||
Linn Energy, LLC
|
8.625 |
04/15/20
|
1,000,000 | 1,008,984 | 1,080,000 | ||||||||||||
Magnum Hunter Resources, Corp.
|
9.750 |
05/15/20
|
1,500,000 | 1,565,843 | 1,657,500 | ||||||||||||
Meritor, Inc.
|
6.750 |
06/15/21
|
1,000,000 | 1,000,000 | 1,075,600 | ||||||||||||
Midstates Petroleum Company, Inc.
|
9.250 |
06/01/21
|
1,000,000 | 1,000,000 | 1,097,500 | ||||||||||||
Nexeo Solutions LLC
|
8.375 |
03/01/18
|
40,000 | 40,000 | 40,400 | ||||||||||||
Nielsen Finance LLC
|
4.500 |
10/01/20
|
1,000,000 | 1,000,000 | 1,007,500 | ||||||||||||
Omnova Solutions, Inc.
|
7.875 |
11/01/18
|
1,500,000 | 1,521,936 | 1,575,000 | ||||||||||||
Perry Ellis International, Inc.
|
7.875 |
04/01/19
|
750,000 | 744,297 | 776,250 | ||||||||||||
Precision Drilling Corporation
|
6.625 |
11/15/20
|
750,000 | 768,936 | 802,500 | ||||||||||||
Regency Energy Partners LP
|
5.875 |
03/01/22
|
835,000 | 821,754 | 907,018 | ||||||||||||
Rosetta Resources Inc.
|
5.875 |
06/01/22
|
1,000,000 | 1,000,000 | 1,045,000 | ||||||||||||
Stone Energy Corporation
|
7.500 |
11/15/22
|
1,000,000 | 1,028,535 | 1,102,500 | ||||||||||||
T-Mobile USA Inc.
|
6.464 |
04/28/19
|
700,000 | 710,725 | 736,750 | ||||||||||||
T-Mobile USA Inc.
|
6.731 |
04/28/22
|
450,000 | 444,950 | 485,437 | ||||||||||||
T-Mobile USA Inc.
|
6.836 |
04/28/23
|
135,000 | 132,209 | 146,981 | ||||||||||||
Tomkins, Inc.
|
9.000 |
10/01/18
|
79,000 | 79,000 | 84,119 | ||||||||||||
Tronox Finance LLC
|
6.375 |
08/15/20
|
750,000 | 733,815 | 774,375 | ||||||||||||
Unit Corporation
|
6.625 |
05/15/21
|
1,000,000 | 989,625 | 1,067,500 | ||||||||||||
Venoco, Inc.
|
8.875 |
02/15/19
|
198,000 | 200,744 | 192,555 | ||||||||||||
Xerium Technologies, Inc.
|
8.875 |
06/15/18
|
831,000 | 867,165 | 882,938 | ||||||||||||
Total Bonds
|
46,538,063 | 48,687,906 |
Shares | Cost |
MarketValue
|
||||||||||
Corporate Public Securities: (A) (Continued) | ||||||||||||
Common Stock - 0.30% | ||||||||||||
Bally Total Fitness Holding Corporation (B) (F)
|
15 | $ | — | $ | — | |||||||
Chase Packaging Corporation
|
9,541 | — | 477 | |||||||||
Nortek, Inc.
|
175 | 1 | 15,708 | |||||||||
Supreme Industries, Inc. (B)
|
131,371 | 267,319 | 853,912 | |||||||||
Total Common Stock
|
267,320 | 870,097 | ||||||||||
Total Corporate Public Securities | $ | 49,306,499 | $ | 52,055,047 |
Short Term Securities: |
Interest
Rate/Yield^
|
Maturity
Date
|
Principal
Amount
|
Cost |
Market
Value
|
||||||||||||
Commercial Paper - 4.87%
|
|||||||||||||||||
Ameren Corporation
|
0.260 | % |
07/01/14
|
$ | 2,000,000 | $ | 2,000,000 | $ | 2,000,000 | ||||||||
Ameren Corporation
|
0.260 |
07/14/14
|
1,000,000 | 999,906 | 999,906 | ||||||||||||
Ryder System Inc
|
0.220 |
07/09/14
|
4,000,000 | 3,999,804 | 3,999,804 | ||||||||||||
South Carolina Electric & Gas Company
|
0.220 |
07/08/14
|
4,000,000 | 3,999,829 | 3,999,829 | ||||||||||||
Virginia Electric and Power Company
|
0.200 |
07/16/14
|
3,000,000 | 2,999,750 | 2,999,750 | ||||||||||||
Total Short-Term Securities
|
$ | 13,999,289 | $ | 13,999,289 | |||||||||||||
Total Investments
|
106.88 | % | $ | 297,601,598 | $ | 307,331,610 | |||||||||||
Other Assets
|
4.84 | 13,910,780 | |||||||||||||||
Liabilities
|
(11.72 | ) | (33,688,581 | ) | |||||||||||||
Total Net Assets
|
100.00 | % | $ | 287,553,809 |
Industry Classification: |
Fair Value/
Market Value
|
Fair Value/
Market Value
|
|||||||
AEROSPACE - 3.07%
|
BROADCASTING & ENTERTAINMENT - 0.12%
|
||||||||
AAR Corporation
|
$ | 2,190,000 |
HOP Entertainment LLC
|
$ | — | ||||
Alliant Techsystems Inc.
|
1,032,500 |
Lamar Media Corporation
|
331,200 | ||||||
B E Aerospace, Inc.
|
923,313 |
Sundance Investco LLC
|
— | ||||||
Merex Holding Corporation
|
1,981,049 | 331,200 | |||||||
Whitcraft Holdings, Inc.
|
2,693,959 | ||||||||
|
8,820,821 |
BUILDINGS & REAL ESTATE - 2.62%
|
|||||||
ACP Cascade Holdings LLC
|
— | ||||||||
AUTOMOBILE - 8.58%
|
Hovnanian Enterprises, Inc.
|
1,085,000 | |||||||
Accuride Corp
|
1,580,100 |
Lennar Corporation
|
746,250 | ||||||
American Axle & Manufacturing, Inc.
|
252,000 |
Pearlman Enterprises, Inc.
|
119,229 | ||||||
Avis Budget Car Rental
|
849,375 |
Safway Group Holding LLC/Finance Corporation
|
530,000 | ||||||
CG Holdings Manufacturing Company
|
4,017,253 |
Sunrise Windows Holding Company
|
3,574,036 | ||||||
Chrysler Group, LLC
|
919,744 |
TruStile Doors, Inc.
|
454,836 |
Commercial Vehicle Group Inc.
|
1,028,560 |
Woodside Homes Company, LLC
|
1,020,000 | ||||||
DPL Holding Corporation
|
4,072,272 | 7,529,351 | |||||||
Ideal Tridon Holdings, Inc.
|
577,794 |
CHEMICAL, PLASTICS & RUBBER - 2.43%
|
|||||||
International Automotive Component
|
1,062,500 |
Capital Specialty Plastics, Inc.
|
1,575,000 | ||||||
J A C Holding Enterprises, Inc.
|
1,312,406 |
Cornerstone Chemical Company
|
793,125 | ||||||
K & N Parent, Inc.
|
4,309,467 |
INEOS Group Holdings PLC
|
497,125 | ||||||
Lear Corporation
|
746,250 |
Nicoat Acquisitions LLC
|
1,786,737 | ||||||
Meritor, Inc.
|
2,152,272 |
Omnova Solutions, Inc.
|
1,575,000 | ||||||
Ontario Drive & Gear Ltd.
|
1,728,121 |
Tronox Finance LLC
|
774,375 | ||||||
Tomkins, Inc.
|
84,119 | 7,001,362 | |||||||
24,692,233 |
CONSUMER PRODUCTS - 9.93%
|
||||||||
BEVERAGE, DRUG & FOOD - 8.5%
|
AMS Holding LLC
|
552,720 | |||||||
1492 Acquisition LLC
|
1,978,516 |
Baby Jogger Holdings LLC
|
3,240,224 | ||||||
Eatem Holding Company
|
3,631,843 |
Bravo Sports Holding Corporation
|
2,462,174 | ||||||
F F C Holding Corporation
|
686,769 |
Clearwater Paper Corporation
|
727,500 | ||||||
GenNx Novel Holding, Inc.
|
3,474,492 |
Custom Engineered Wheels, Inc.
|
843,024 | ||||||
Golden County Foods Holding, Inc.
|
— |
gloProfessional Holdings, Inc.
|
3,112,002 | ||||||
Hospitality Mints Holding Company
|
2,253,786 |
GTI Holding Company
|
1,699,062 | ||||||
JBS USA Holdings, Inc.
|
802,500 |
Handi Quilter Holding Company
|
637,748 | ||||||
JMH Investors LLC
|
2,776,132 |
HHI Group, LLC
|
3,265,835 | ||||||
Pinnacle Operating Corporation
|
1,085,000 |
K N B Holdings Corporation
|
151,673 | ||||||
Snacks Parent Corporation
|
4,175,994 |
Manhattan Beachwear Holding Company
|
3,061,650 | ||||||
Spartan Foods Holding Company
|
2,468,964 |
NXP BV/NXP Funding LLC
|
1,503,750 | ||||||
Specialty Commodities, Inc.
|
1,103,746 |
Perry Ellis International, Inc.
|
776,250 | ||||||
24,437,742 |
Industry Classification: (Continued) |
Fair Value/
Market Value
|
Fair Value/
Market Value
|
|||||||
Prestige Brands Holdings, Inc.
|
$ | 1,377,000 |
Nortek, Inc.
|
$ | 15,708 | ||||
R A J Manufacturing Holdings LLC
|
903,293 |
O E C Holding Corporation
|
1,411,190 | ||||||
Tranzonic Holdings LLC
|
3,342,874 |
Strahman Holdings Inc
|
2,494,207 | ||||||
Xerium Technologies, Inc.
|
882,938 |
Truck Bodies & Equipment International
|
2,341,850 | ||||||
28,539,717 | 26,458,214 | ||||||||
CONTAINERS, PACKAGING
|
DIVERSIFIED/CONGLOMERATE,
|
||||||||
& GLASS - 2.45%
|
SERVICE - 8.56%
|
||||||||
Beverage Packaging Holdings
|
748,250 |
A S C Group, Inc.
|
2,621,118 | ||||||
Chase Packaging Corporation
|
477 |
A W X Holdings Corporation
|
367,500 | ||||||
P K C Holding Corporation
|
947,701 |
ADT Corporation
|
1,060,000 | ||||||
P P T Holdings LLC
|
3,523,821 |
Advanced Technologies Holdings
|
1,373,547 | ||||||
Rose City Holding Company
|
207,905 |
Apex Analytix Holding Corporation
|
1,208,541 | ||||||
SMB Machinery Holdings, Inc.
|
1,432,044 |
Church Services Holding Company
|
1,518,960 | ||||||
Vitex Packaging Group, Inc.
|
173,647 |
Clough, Harbour and Associates
|
422,356 | ||||||
7,033,845 |
Crane Rental Corporation
|
2,200,410 | |||||||
DISTRIBUTION - 6.46%
|
ELT Holding Company
|
417,219 | |||||||
ARI Holding Corporation
|
3,668,453 |
EPM Holding Company
|
1,392,155 | ||||||
Blue Wave Products, Inc.
|
1,711,106 |
Hilton Worldwide Holdings, Inc.
|
1,062,500 | ||||||
BP SCI LLC
|
3,322,562 |
Hub International Ltd.
|
1,071,250 | ||||||
Duncan Systems, Inc.
|
987,640 |
HVAC Holdings, Inc.
|
3,247,692 | ||||||
Signature Systems Holdings Company
|
2,324,606 |
Insurance Claims Management, Inc.
|
719,946 | ||||||
Stag Parkway Holding Company
|
3,195,460 |
Mail Communications Group, Inc.
|
341,613 | ||||||
WP Supply Holding Corporation
|
3,353,186 |
Nexeo Solutions LLC
|
40,400 | ||||||
18,563,013 |
Northwest Mailing Services, Inc.
|
770,534 | |||||||
DIVERSIFIED/CONGLOMERATE,
|
Roofing Supply
|
1,038,375 | |||||||
MANUFACTURING - 9.21%
|
Safety Infrastructure Solutions
|
2,988,561 | |||||||
A H C Holding Company, Inc.
|
431,009 |
Sirius XM Radio Inc.
|
793,125 | ||||||
Advanced Manufacturing Enterprises LLC
|
2,945,556 | 24,655,802 | |||||||
Arrow Tru-Line Holdings, Inc.
|
661,283 |
ELECTRONICS - 0.70%
|
|||||||
C D N T, Inc.
|
1,090,519 |
Belden Inc.
|
413,075 | ||||||
CTP Transportation Products, LLC
|
684,213 |
Connecticut Electric, Inc.
|
1,599,564 | ||||||
F G I Equity LLC
|
1,523,806 | 2,012,639 | |||||||
G C Holdings
|
328,371 | ||||||||
Hartland Controls Holding Corporation
|
3,652,418 |
FINANCIAL SERVICES - 5.34%
|
|||||||
Hi-Rel Group LLC
|
2,133,535 |
Ally Financial, Inc.
|
1,768,987 | ||||||
Janus Group Holdings LLC
|
3,509,206 |
Alta Mesa Financial Services
|
1,575,000 | ||||||
J.B. Poindexter Co., Inc.
|
1,112,500 |
Ashtead Group plc
|
420,613 | ||||||
K P I Holdings, Inc.
|
543,186 |
Braskem Finance Ltd.
|
871,031 | ||||||
LPC Holding Company
|
489,657 |
CIT Group Inc.
|
1,015,600 | ||||||
Mustang Merger Corporation
|
1,090,000 |
Icahn Enterprises L.P.
|
2,231,037 |
Industry Classification: (Continued) |
Fair Value/
Market Value
|
Fair Value/
Market Value
|
|||||||
Jurassic Holdings III Inc
|
$ | 1,020,000 |
NetShape Technologies, Inc.
|
$ | 2,267,599 | ||||
LBC Tank Terminals Holding Netherlands B.V.
|
1,387,325 |
Pacific Consolidated Holdings LLC
|
79,688 | ||||||
Nielsen Finance LLC
|
1,007,500 |
Supreme Industries, Inc.
|
853,912 | ||||||
REVSpring, Inc.
|
4,052,607 |
Welltec A/S
|
798,750 | ||||||
15,349,700 | 14,342,409 | ||||||||
HEALTHCARE, EDUCATION &
|
MEDICAL DEVICES/BIOTECH - 1.25%
|
||||||||
CHILDCARE - 5.77% |
Chemtura Corporation
|
524,150 | |||||||
American Hospice Management Holding LLC
|
2,220,621 |
ETEX Corporation
|
_
|
||||||
CHG Alternative Education Holding Company
|
3,140,043 |
Halcón Resources Corporation
|
1,091,250 | ||||||
ERG Holding Company LLC
|
2,069,597 |
MedSystems Holdings LLC
|
336,311 | ||||||
GD Dental Services LLC
|
302,708 |
MicroGroup, Inc.
|
_
|
||||||
Healthcare Direct Holding Company
|
2,406,536 |
NT Holding Company
|
1,264,828 | ||||||
HCA Holdings, Inc.
|
1,008,750 |
Precision Wire Holding Company
|
370,963 | ||||||
Select Medical Corporation
|
679,250 |
TherOX, Inc.
|
—
|
||||||
Strata/WLA Holding Corporation
|
—
|
3,587,502 | |||||||
Synarc-BioCore Holdings, LLC
|
990,000 |
MINING, STEEL, IRON &
|
|||||||
Synteract Holdings Corporation
|
3,328,089 |
NON-PRECIOUS METALS - 0.86%
|
|||||||
Touchstone Health Partnership
|
—
|
Coeur d’Alene Mines Corporation
|
1,005,000 | ||||||
Wheaton Holding Corporation
|
447,015 |
Commercial Metals Company
|
1,462,500 | ||||||
16,592,609 | 2,467,500 | ||||||||
NATURAL RESOURCES - 0.70%
|
|||||||||
HOME & OFFICE FURNISHINGS, HOUSEWARES &
|
Arch Coal, Inc.
|
113,625 | |||||||
DURABLE CONSUMER PRODUCTS - 1.86%
|
Caelus Energy Alaska, LLC
|
983,330 | |||||||
Connor Sport Court International, Inc.
|
768,493 |
Headwaters, Inc.
|
907,375 | ||||||
Home Décor Holding Company
|
734,272 | 2,004,330 | |||||||
Transpac Holding Company
|
531,902 |
OIL & GAS - 9.91%
|
|||||||
U M A Enterprises, Inc.
|
2,335,922 |
Antero Resources Corporation
|
830,000 | ||||||
U-Line Corporation
|
975,235 |
Calumet Specialty Products Partners L.P.
|
1,075,000 | ||||||
Wellborn Forest Holding Company
|
—
|
Cimarex Energy Co.
|
1,105,000 | ||||||
5,345,824 |
CVR Refining LLC
|
685,750 | |||||||
Exopack LLC
|
1,070,000 | ||||||||
LEISURE, AMUSEMENT & ENTERTAINMENT - 1.09%
|
Forum Energy Technologies
|
344,500 | |||||||
CTM Holding, Inc.
|
3,129,370 |
Hercules Offshore, Inc.
|
992,500 | ||||||
MACHINERY - 4.99%
|
Hilcorp Energy Company
|
1,292,063 | |||||||
ABC Industries, Inc.
|
1,729,357 |
Hornbeck Offshore Services, Inc.
|
498,750 | ||||||
Arch Global Precision LLC
|
4,404,710 |
Linn Energy, LLC
|
1,080,000 | ||||||
E S P Holdco, Inc.
|
462,840 |
Magnum Hunter Resources, Corp.
|
1,657,500 | ||||||
Milacron Financial
|
547,500 |
MEG Energy Corporation
|
1,102,500 | ||||||
Motion Controls Holdings
|
3,198,053 |
Midstates Petroleum Company, Inc.
|
1,097,500 | ||||||
M V I Holding, Inc.
|
— |
Niska Gas Storage Partners LLC
|
960,000 |
Industry Classification: (Continued) |
Fair Value/
Market Value
|
Fair Value/
Market Value
|
|||||||
Oasis Petroleum Inc.
|
$ | 1,090,000 |
TRANSPORTATION - 4.56%
|
||||||
Petroplex Inv Holdings LLC
|
3,418,694 |
CHC Helicopter SA
|
$ | 1,601,250 | |||||
Precision Drilling Corporation
|
802,500 |
MNX Holding Company
|
2,830,672 | ||||||
Regency Energy Partners LP
|
907,018 |
Huntington Ingalls Industries
|
819,375 | ||||||
RKI Inc.
|
1,085,000 |
NABCO, Inc.
|
— | ||||||
Rosetta Resources Inc.
|
1,045,000 |
Ryder System, Inc.
|
3,999,804 | ||||||
South Carolina Electric & Gas Company
|
3,999,829 |
Tesoro Logistics LP
|
1,055,000 | ||||||
Stone Energy Corporation
|
1,102,500 |
Topaz Marine S.A.
|
1,077,500 | ||||||
Unit Corporation
|
1,067,500 |
VP Holding Company
|
1,735,882 | ||||||
Venoco, Inc.
|
192,555 | 13,119,483 | |||||||
28,501,659 |
UTILITIES - 2.68%
|
||||||||
PHARMACEUTICALS - 1.17% | Ameren Corporation | 2,999,906 | |||||||
CorePharma LLC
|
432,789 |
Calpine Corporation
|
651,000 | ||||||
Forest Laboratories, Inc.
|
1,941,311 |
NRG Energy, Inc.
|
1,065,000 | ||||||
Valeant Pharmaceuticals International
|
1,007,975 |
Virginia Electric and Power Company
|
2,999,750 | ||||||
3,382,075 | 7,715,656 |
PUBLISHING/PRINTING - 0.31%
|
WASTE MANAGEMENT/POLLUTION - 0.94%
|
||||||||
Newark Group, Inc.
|
904,782 |
Aquilex Holdings LLC
|
294,949 | ||||||
Terra Renewal LLC
|
613,982 | ||||||||
Torrent Group Holdings, Inc.
|
1,805,842 | ||||||||
RETAIL STORES - 0.17%
|
2,714,773 | ||||||||
Ferrellgas Partners, L.P
|
485,925 | ||||||||
TECHNOLOGY - 0.94% |
Total Investments - 106.88%
|
$ | 307,331,610 | ||||||
Fidelity National Information
|
132,383 | ||||||||
First Data Corporation
|
1,186,250 | ||||||||
Sencore Holding Company
|
— | ||||||||
Smart Source Holdings LLC
|
1,149,348 | ||||||||
Triple Point Technology, Inc.
|
228,765 | ||||||||
2,696,746 | |||||||||
TELECOMMUNICATIONS - 1.71%
|
|||||||||
All Current Holding Company
|
475,667 | ||||||||
Altice S.A.
|
1,067,500 | ||||||||
CCO Holdings Capital Corporation
|
791,250 | ||||||||
Commscope Holdings Inc.
|
533,750 | ||||||||
Sprint Corporation
|
333,900 | ||||||||
T-Mobile USA Inc.
|
1,369,168 | ||||||||
Univision Communications, Inc.
|
344,093 | ||||||||
4,915,328 |
1. History
Babson Capital Corporate Investors (the “Trust”) commenced operations in 1971 as a Delaware corporation. Pursuant to an Agreement and Plan of Reorganization dated November 14, 1985, approved by shareholders, the Trust was reorganized as a Massachusetts business trust under the laws of the Commonwealth of Massachusetts, effective November 28, 1985.
The Trust is a diversified closed-end management investment company. Babson Capital Management LLC (“Babson Capital”), a wholly-owned indirect subsidiary of Massachusetts Mutual Life Insurance Company (“MassMutual”), acts as its investment adviser. The Trust’s investment objective is to maintain a portfolio of securities providing a current yield and at the same time offering an opportunity for capital gains. The Trust’s principal investments are privately placed, below-investment grade, long-term debt obligations. Such direct placement securities may, in some cases, be accompanied by equity features such as common stock, warrants, conversion rights, or other equity features and, occasionally, preferred stocks. The Trust typically purchases these investments, which are not publicly tradable, directly from their issuers in private placement transactions. These investments are typically mezzanine debt instruments with accompanying private equity securities made to small or middle market companies. In addition, the Trust may invest, subject to certain limitations, in marketable investment grade debt securities, other marketable debt securities (including high yield securities) and marketable common stocks. Below-investment grade or high yield securities have predominantly speculative characteristics with respect to the capacity of the issuer to pay interest and repay capital. On January 27, 1998, the Board of Trustees authorized the formation of a wholly-owned subsidiary of the Trust (“CI Subsidiary Trust”) for the purpose of holding certain investments. The results of CI Subsidiary Trust are consolidated in the accompanying financial statements. Footnote 2.D below discusses the Federal tax consequences of the CI Subsidiary Trust.
2. Significant Accounting Policies
The following is a summary of significant accounting policies followed consistently by the Trust in the preparation of its consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (“U.S. GAAP”).
A. Fair Value Measurements:
Under U.S. GAAP, fair value represents the price that should be received to sell an asset (exit price) in an orderly transaction between willing market participants at the measurement date.
|
Determination of Fair Value
The determination of the fair value of the Trust’s investments is the responsibility of the Trust’s Board of Trustees (the “Trustees”). The Trustees have adopted procedures for the valuation of the Trust’s securities and has delegated responsibility for applying those procedures to Babson Capital. Babson Capital has established a Pricing Committee which is responsible for setting the guidelines used in following the procedures adopted by the Trustees and ensuring that those guidelines are being followed. Babson Capital considers all relevant factors that are reasonably available, through either public information or information directly available to Babson Capital, when determining the fair value of a security. The Trustees meet at least once each quarter to approve the value of the Trust’s portfolio securities as of the close of business on the last business day of the preceding quarter. This valuation requires the approval of a majority of the Trustees of the Trust, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital. In approving valuations, the Trustees will consider reports by Babson Capital analyzing each portfolio security in accordance with the procedures and guidelines referred to above, which include the relevant factors referred to below. Babson Capital has agreed to provide such reports to the Trust at least quarterly. The consolidated financial statements include private placement restricted securities valued at $197,542,737 (68.70% of net assets) as of June 30, 2014 whose values have been estimated by the Trustees based on the process described above in the absence of readily ascertainable market values. Due to the inherent uncertainty of valuation, those estimated values may differ significantly from the values that would have been used had a ready market for the securities existed, and the differences could be material. Following is a description of valuation methodologies used for assets recorded at fair value.
Corporate Public Securities – Corporate Bonds, Preferred Stocks and Common Stocks
The Trust uses external independent third-party pricing services to determine the fair values of its Corporate Public Securities. At June 30, 2014, 100% of the carrying value of these investments was from external pricing services. In the event that the primary pricing service does not provide a price, the Trust utilizes the pricing provided by a secondary pricing service.
Public debt securities generally trade in the over-the-counter market rather than on a securities exchange. The Trust’s pricing services use multiple valuation techniques to determine fair value. In instances where significant market activity exists, the pricing services may utilize a market based approach through which quotes from market makers are used to determine fair value. In instances where significant market activity may not exist or is limited, the pricing services also utilize proprietary valuation models which may consider market characteristics such as benchmark yield curves, option adjusted spreads, credit spreads, estimated default rates, coupon rates, anticipated timing of principal underlying prepayments, collateral, and other unique security features in order to estimate the relevant cash flows, which are then discounted to calculate the fair value.
|
The Trust's investments in bank loans are normally valued at the bid quotation obtained from dealers in loans by an independent pricing service in accordance with the Trust's valuation policies and procedures approved by the Trustees.
Public equity securities listed on an exchange or on the NASDAQ National Market System are valued at the last quoted sales price of that day.
Annually, Babson Capital conducts reviews of the primary pricing vendors to validate that the inputs used in that vendors' pricing process are deemed to be market observable as defined in the standard. While Babson Capital is not provided access to proprietary models of the vendors, the reviews have included on-site walk-throughs of the pricing process, methodologies and control procedures for each asset class and level for which prices are provided. The review also includes an examination of the underlying inputs and assumptions for a sample of individual securities across asset classes, credit rating levels and various durations, a process Babson Capital continues to perform annually. In addition, the pricing vendors have an established challenge process in place for all security valuations, which facilitates identification and resolution of prices that fall outside expected ranges. Babson Capital believes that the prices received from the pricing vendors are representative of prices that would be received to sell the assets at the measurement date (exit prices) and are classified appropriately in the hierarchy.
|
equity securities based on the documented priority of each class of securities in the capital structure. Generally, the waterfall proceeds from senior debt tranches of the capital structure to senior then junior subordinated debt, followed by each class of preferred stock and finally the common stock. To estimate a company's enterprise value, the company's trailing twelve months earnings before interest, taxes, depreciation and amortization ("EBITDA") is multiplied by a valuation multiple. A discount for lack of marketability is applied to the end result.
Both the company's EBITDA and valuation multiple are considered significant unobservable inputs.
Short-Term Securities
Short-term securities, of sufficient credit quality, with more than sixty days to maturity are valued at fair value, using external independent third-party services. Short-term securities having a maturity of sixty days or less are valued at amortized cost, which approximates fair value.
Quantitative Information about Level 3 Fair Value Measurements
The following table represents quantitative information about Level 3 fair value measurements as of June 30, 2014.
|
Corporate Restricted Securities – Corporate Bonds
The fair value of certain notes is determined using an internal model that discounts the anticipated cash flows of those notes using a specific discount rate. Changes to that discount rate are driven by changes in general interest rates, probabilities of default and credit adjustments. The discount rate used within the models to discount the future anticipated cash flows is considered a significant unobservable input. Significant increases/(decreases) in the discount rate would result in a significant (decrease)/increase to the notes' fair value.
The fair value of certain distressed notes is based on an enterprise waterfall methodology which is discussed in the equity security valuation section below.
Corporate Restricted Securities – Common Stock, Preferred Stock and Partnerships & LLC’s
The fair value of equity securities is determined using an enterprise waterfall methodology. Under this methodology, the enterprise value of the company is first estimated and that value is then allocated to the company's outstanding debt and
|
Valuation
|
Unobservable
|
|
Weighted
|
||
Technique
|
Inputs
|
Range
|
Average
|
|||
Corporate
|
Discounted
|
Discount
|
7.7% to
|
13.1%
|
||
Bonds
|
Cash Flows
|
Rate
|
17.0%
|
|||
Equity
|
Market
|
Valuation
|
4.3x to
|
7.8x
|
||
Securities
|
Approach
|
Multiple
|
13.5x
|
|||
Discount
|
0% to
|
5.9%
|
||||
for lack of
|
24% | |||||
marketability
|
||||||
EBITDA
|
$0.1 million to
|
$21.8
|
||||
$140.8 million
|
million
|
|||||
Fair Value Hierarchy
The Company categorizes its investments measured at fair value in three levels, based on the inputs and assumptions used to determine fair value. These levels are as follows:
Level 1 – quoted prices in active markets for identical securities
Level 2 – other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including the Trust’s own assumptions in determining the fair value of investments)
|
Assets
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Restricted Securities
|
||||||||||||||||
Corporate Bonds
|
183,976,041 | — | 43,591,175 | 140,384,866 | ||||||||||||
Common Stock - U.S.
|
26,900,981 | — | — | 26,900,981 | ||||||||||||
Preferred Stock
|
11,706,358 | — | 143,362 | 11,562,996 | ||||||||||||
Partnerships and LLCs
|
18,693,894 | — | — | 18,693,894 | ||||||||||||
Public Securities
|
||||||||||||||||
Bank Loans
|
2,497,044 | — | 2,497,044 | — | ||||||||||||
Corporate Bonds
|
48,687,906 | — | 48,687,906 | — | ||||||||||||
Common Stock - U.S.
|
870,097 | — | 870,097 | — | ||||||||||||
Preferred Stock
|
— | — | — | — | ||||||||||||
Short-term Securities
|
— | — | — | |||||||||||||
Total
|
$ 307,331,610 | $ — | $ 109,788,873 | $ 197,542,737 | ||||||||||||
See information disaggregated by security type and industry classification in the Consolidated Schedule of Investments.
|
Beginning
|
Transfers
|
Ending
|
||||||||||||||||||||||||||
balance at
|
Included in
|
in and/or
|
balance at
|
|||||||||||||||||||||||||
Assets:
|
12/31/2013
|
earnings
|
Purchases
|
Sales
|
Prepayments
|
out of Level 3 |
06/30/2014
|
|||||||||||||||||||||
Restricted Securities
|
||||||||||||||||||||||||||||
Corporate Bonds
|
$ | 136,364,924 | $ | 5,730,394 | $ | 15,690,482 | $ | (4,884,956 | ) | $ | (12,515,969 | ) | $ | — | $ | 140,384,866 | ||||||||||||
Common Stock - U.S.
|
23,299,991 | 4,927,120 | 1,453,727 | (2,779,587 | ) | — | — | 26,900,981 | ||||||||||||||||||||
Preferred Stock
|
14,778,114 | (886,638 | ) | (122,305 | ) | (2,206,175 | ) | — | — | 11,562,996 | ||||||||||||||||||
Partnerships and LLCs
|
21,275,734 | (241,712 | ) | 1,152,621 | (3,492,749 | ) | — | — | 18,693,894 | |||||||||||||||||||
Public Securities
|
||||||||||||||||||||||||||||
Common Stock
|
— | — | — | — | — | — | — | |||||||||||||||||||||
$ | 195,718,763 | $ | 9,529,164 | $ | 18,174,525 | $ | (13,363,746 | ) | $ | (12,515,696 | ) | $ | — | $ | 197,542,737 |
Net Increase in Net
Assets Resulting from
Operations
|
Change in Unrealized Gains & (Losses) in Net Assets from assets still held
|
|||
Interest (Amortization)
|
$ | 363,333 | — | |
Net Realized Gain on
Investments before Taxes
|
$ | 2,791,275 | — | |
Net Change in Unrealized
Depreciation of
Investments Before Taxes.
|
$ | 6,374,556 | 9,428,424 |
B. Accounting for Investments:
Investment transactions are accounted for on the trade date. Dividend income is recorded on the ex-dividend date. Interest income is recorded on the accrual basis, including the amortization of premiums and accretion of discounts on bonds held using the yield-to-maturity method. The Trust does not accrue income when payment is delinquent and when management believes payment is questionable.
Realized gains and losses on investment transactions and unrealized appreciation and depreciation of investments are reported for financial statement and Federal income tax purposes on the identified cost method.
C. Use of Estimates:
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
D. Federal Income Taxes:
The Trust has elected to be taxed as a "regulated investment company" under the Internal Revenue Code, and intends to maintain this qualification and to distribute substantially all of its net taxable income to its shareholders. In any year when net long-term capital gains are realized by the Trust, management, after evaluating the prevailing economic conditions, will recommend that the Trustees either designate the net realized long-term gains as undistributed and pay the Federal capital gains taxes thereon or distribute all or a portion of such net gains.
The Trust is taxed as a regulated investment company and is therefore limited as to the amount of non-qualified income that it may receive as the result of operating a trade or business, e.g. the Trust's pro rata share of income allocable to the Trust by a partnership operating company. The Trust's violation of this limitation could result in the loss of its status as a regulated investment company, thereby subjecting all of its net income and capital gains to corporate taxes prior to distribution to its shareholders. The Trust, from time-to-time, identifies investment opportunities in the securities of entities that could cause such trade or business income to be allocable to the Trust. The CI Subsidiary Trust (described in Footnote 1 above) was formed in order to allow investment in such securities without adversely affecting the Trust's status as a regulated investment company.
The CI Subsidiary Trust is not taxed as a regulated investment company. Accordingly, prior to the Trust receiving any distributions from the CI Subsidiary Trust, all of the CI Subsidiary Trust's taxable income and realized gains, including
|
non-qualified income and realized gains, is subject to taxation at prevailing corporate tax rates. As of June 30, 2014, the CI Subsidiary Trust has incurred income tax expense of $542,668.
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of the existing assets and liabilities and their respective tax basis. As of June 30, 2014, the CI Subsidiary Trust has a deferred tax liability of $652,030.
The Trust recognizes a tax benefit from an uncertain position only if it is more likely than not that the position is sustainable, based solely on its technical merits and consideration of the relevant taxing authority's widely understood administrative practices and precedents. If this threshold is met, the Trust measures the tax benefit as the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. The Trust has evaluated and determined that the tax positions did not have a material effect on the Trust's financial position and results of operations for the six months ended June 30, 2014.
E. Distributions to Shareholders:
The Trust records distributions to shareholders from net investment income and net realized gains, if any, on the ex-dividend date. The Trust's net investment income dividend is declared four times per year, in April, July, October, and December. The Trust's net realized capital gain distribution, if any, is declared in December.
|
|
3. |
Investment Services Contract
|
|
A. Services:
Under an Investment Services Contract (the "Contract") with the Trust, Babson Capital agrees to use its best efforts to present to the Trust a continuing and suitable investment program consistent with the investment objectives and policies of the Trust. Babson Capital represents the Trust in any negotiations with issuers, investment banking firms, securities brokers or dealers and other institutions or investors relating to the Trust's investments. Under the Contract, Babson Capital also provides administration of the day-to-day operations of the Trust and provides the Trust with office space and office equipment, accounting and bookkeeping services, and necessary executive, clerical and secretarial personnel for the performance of the foregoing services.
B. Fee:
For its services under the Contract, Babson Capital is paid a quarterly investment advisory fee of 0.3125% of the net asset value of the Trust as of the last business day of each fiscal quarter, which is approximately equal to 1.25% annually. A majority of the Trustees, including a majority of the Trustees who are not interested persons of the Trust or of Babson Capital, approve the valuation of the Trust's net assets as of such day.
|
C. Basis for Board Renewal of Contract:
At a meeting of the Trustees held on April 16, 2014, the Trustees (including a majority of the Trustees who are not "interested persons" of the Trust or Babson Capital) unanimously approved a one-year continuance of the Contract.
Prior to the meeting, the Trustees requested and received from Ropes & Gray LLP, counsel to the Trust, a memorandum describing the Trustees' legal responsibilities in connection with their review and re-approval of the Contract. The Trustees also requested and received from Babson Capital extensive written and oral information regarding other matters including: the principal terms of the Contract; the reasons why Babson Capital was proposing the continuance of the Contract; Babson Capital and its personnel; the Trust's investment performance, including comparative performance information; the nature and quality of the services provided by Babson Capital to the Trust; financial strength of Babson Capital; the fee arrangements between Babson Capital and the Trust; fee and expense information, including comparative fee and expense information; profitability of the advisory arrangement to Babson Capital; and "fallout" benefits to Babson Capital resulting from the Contract.
Among other things, the Trustees discussed and considered with management (i) the aforementioned guidance provided by Ropes & Gray LLP and the information provided by Babson Capital prior to the meeting and (ii) the reasons Babson Capital put forth in support of its recommendation that the Trustees approve the continuance of the Contract. These considerations are summarized below.
NATURE, EXTENT AND QUALITY OF SERVICES TO BE PROVIDED BY BABSON CAPITAL TO THE TRUST
In evaluating the scope and quality of the services provided by Babson Capital to the Trust, the Trustees considered, among other factors: (i) the scope of services required to be provided by Babson Capital under the Contract; (ii) Babson Capital's ability to find and negotiate private placement securities having equity features that are consistent with the stated investment objectives of the Trust; (iii) the experience and quality of Babson Capital's staff; (iv) the strength of Babson Capital's financial condition; (v) the nature of the private placement market compared to public markets (including the fact that finding, analyzing, negotiating and servicing private placement securities is more labor-intensive than buying and selling public securities and the administration of private placement securities is more extensive, expensive, and requires greater time and expertise than a portfolio of only public securities); (vi) the potential advantages afforded to the Trust by its ability to co-invest in negotiated private placements with MassMutual and its affiliates; and (vii) the expansion of the scope of services provided by Babson Capital as a result of recent regulatory and legislative initiatives that have required increased legal, compliance and business attention and diligence. Based on such
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considerations, the Trustees concluded that, overall, they are satisfied with the nature, extent and quality of services provided by Babson Capital, and expected to be provided in the future, under the renewed Contract.
INVESTMENT PERFORMANCE
The Trustees also examined the Trust's short-term, intermediate-term, and long-term performance as compared against various benchmark indices presented at the meeting, which showed that the Trust had outperformed such indices for the 1-, 3-, 5- and 10-year periods. In addition, the Trustees considered comparisons of the Trust's performance with the performance of (i) selected closed-end investment companies and funds that may invest in private placement securities and/or bank loans; (ii) selected business development companies with comparable types of investments; and (iii) investment companies included in the Lipper closed-end bond universe. It was acknowledged that, while such comparisons are helpful in judging performance, they are not directly comparable in terms of types of investments due to the fact that business development companies often report returns based on market value, which is affected by factors other than the performance of the underlying portfolio investments. Based on these considerations and the detailed performance information provided to the Trustees at the regular Board meetings each quarter, the Trustees concluded that the Trust's absolute and relative performance over time have been sufficient to warrant renewal of the Contract.
ADVISORY FEE/COST OF SERVICES PROVIDED AND PROFITABILITY/ MANAGER'S "FALL-OUT" BENEFITS
In connection with the Trustees' consideration of the advisory fee paid by the Trust to Babson Capital under the Contract, Babson Capital noted that it was unaware of any registered closed-end investment companies that are directly comparable to the Trust in terms of the types of investments and percentages invested in private placement securities (which require more extensive advisory and administrative services than a portfolio of publicly traded securities, as previously discussed) other than Babson Capital Participation Investors, which also is advised by Babson Capital. Under the terms of its Investment Advisory and Administrative Services Contract, Babson Capital Participation Investors is charged a quarterly investment advisory fee of 0.225% of net asset value as of the end of each quarter, which is approximately equal to 0.90% annually. In considering the fee rate provided in the Contract, the Trustees noted the advisory fee charged by Babson Capital to Tower Square Capital Partners, L.P. and Tower Square Capital Partners II, III and IV, L.P., each a private mezzanine fund also managed by Babson Capital, and that the fee Babson Capital Participation Investors charged compares favorably.
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At the request of the Trustees, Babson Capital provided information concerning the profitability of Babson Capital's advisory relationship with the Trust. The Trustees also considered the non-economic benefits Babson Capital and its affiliates derived from its relationship with the Trust, including the reputational benefits derived from having the Trust listed on the New York Stock Exchange, and the de minimis amount of commissions resulting from the Trust's portfolio transactions used by Babson Capital for third-party soft dollar arrangements. The Trustees recognized that Babson Capital should be entitled to earn a reasonable level of profit for services provided to the Trust and, based on their review, concluded that they were satisfied that Babson Capital's historical level of profitability from its relationship with the Trust was not excessive and that the advisory fee structure under the Contract is reasonable.
ECONOMIES OF SCALE
The Trustees considered the concept of economies of scale and possible advisory fee reductions if the Trust were to grow in assets. Given that the Trust is not continuously offering shares, such growth comes principally from retained net realized gain on investments and dividend reinvestment. The Trustees also examined the breakpoint features of selected competitive funds and noted that the minimum starting point for fee reductions in those funds was at least $200 million, close to the value of the Trust's current net assets. The Trustees concluded that the absence of breakpoints in the fee schedule under the Contract was currently acceptable given the Trust's current size and closed-end fund structure.
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5. |
Purchases and Sales of Investments
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||||||||
For the nine
months ended
06/30/14
|
||||||||||
Cost of
Investments
Acquired
|
Proceeds
fromMaturities
|
|||||||||
Corporate restricted securities | $ | 33,088,368 | $ | 31,189,439 | ||||||
Corporate public securities
|
9,453,180 | 9,682,745 | ||||||||
The aggregate cost of investments is substantially the same for financial reporting and Federal income tax purposes as of June 30, 2014. The net unrealized appreciation of investments for financial reporting and Federal tax purposes as of June 30, 2014 is $9,730,012 and consists of $39,260,681 appreciation and $29,530,669 depreciation.
Net unrealized appreciation of investments on the Statement of Assets and Liabilities reflects the balance net of a deferred tax accrual of $652,030 on net unrealized gains on the CI Subsidiary Trust.
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||||||||||
6. |
Quarterly Results of Investment Operations (Unaudited)
|
|||||||||
March 31, 2014
|
||||||||||
Amount | Per Share | |||||||||
Investment income
|
$ |
7,550,489
|
||||||||
Net investment income
|
5,937,333
|
$ |
0.31
|
|||||||
4. | Senior Secured Indebtedness |
Net realized and unrealized
gain on investments (net of taxes)
|
2,149,186
|
0.11
|
||||||
MassMutual holds the Trust’s $30,000,000 Senior Fixed Rate Convertible Note (the “Note”) issued by the Trust on November 15, 2007. The Note is due November 15, 2017 and accrues interest at 5.28% per annum. MassMutual, at its option, can convert the principal amount of the Note into common shares. The dollar amount of principal would be converted into an equivalent dollar amount of common shares based upon the average price of the common shares for ten business days prior to the notice of conversion. For the six months ended June 30, 2014, the Trust incurred total interest expense on the Note of $792,000.
The Trust may redeem the Note, in whole or in part, at the principal amount proposed to be redeemed together with the accrued and unpaid interest thereon through the redemption date plus a Make Whole Premium. The Make Whole Premium equals the excess of (i) the present value of the scheduled payments of principal and interest which the Trust would have paid but for the proposed redemption, discounted at the rate of interest of U.S. Treasury obligations whose maturity approximates that of the Note plus 0.50% over (ii) the principal of the Note proposed to be redeemed.
|
||||||||||
June 30, 2014
|
||||||||||
Amount | Per Share | |||||||||
Investment income
|
$ |
6,973,819
|
||||||||
Net investment income
|
5,430,279
|
$ |
0.28
|
|||||||
Net realized and unrealized
gain on investments (net of taxes)
|
10,131,390
|
0.52
|
||||||||
7. |
Results of Shareholder Meeting
The Annual Meeting of Shareholders was held on Friday, April 16, 2014. The Shareholders were asked to vote to re-elect as Trustees Michael H. Brown, Barbara M. Ginader, and Maleyne M. Syracuse for three year terms. The Shareholders approved the proposal. The Trust's other Trustees, William J. Barrett, Edward P. Grace, III, Robert E. Joyal, Clifford M. Noreen, and Susan B. Sweeney continued to serve their respective terms following the April 16, 2014 Annual Shareholders Meeting. The results of the Shareholder voting are set forth below.
|
|
% of Shares
|
||||||||||||
Shares for
|
Withheld
|
Total
|
Voted for
|
|||||||||
Michael H. Brown
|
||||||||||||
15,818,666
|
290,650 | 16,109,316 | 98.20 | % | ||||||||
Barbara M. Ginader
|
||||||||||||
15,808,781
|
300,535 | 16,109,316 | 98.14 | % | ||||||||
Maleyne M. Syracuse
|
||||||||||||
15,746,784
|
362,532 | 16,109,316 | 97.75 | % |
Members of the Board of Trustees
William J. Barrett
Michael H. Brown*
Barbara M. Ginader
Edward P. Grace III
Robert E. Joyal
Clifford M. Noreen
Susan B. Sweeney*
Maleyne M. Syracuse*
*Member of the Audit Committee
Officers
Clifford M. Noreen
Chairman
Michael L. Klofas
President
James M. Roy
Vice President & Chief
Financial Officer
Christopher A. DeFrancis
Vice President, Secretary &
Chief Legal Officer
Sean Feeley
Vice President
Richard E. Spencer, II
Vice President
Daniel J. Florence
Treasurer
Melissa M. LaGrant
Chief Compliance Officer
|
DIVIDEND REINVESTMENT AND SHARE PURCHASE PLAN
Babson Capital Corporate Investors (the "Trust") offers a Dividend Reinvestment and Share Purchase Plan (the "Plan"). The Plan provides a simple way for shareholders to add to their holdings in the Trust through the receipt of dividend shares issued by the Trust or through the investment of cash dividends in Trust shares purchased in the open market. A shareholder may join the Plan by filling out and mailing an authorization card to DST Systems, Inc., the Transfer Agent.
Participating shareholders will continue to participate until they notify the Transfer Agent, in writing, of their desire to terminate participation. Unless a shareholder elects to participate in the Plan, he or she will, in effect, have elected to receive dividends and distributions in cash. Participating shareholders may also make additional contributions to the Plan from their own funds. Such contributions may be made by personal check or other means in an amount not less than $10 nor more than $5,000 per quarter. Cash contributions must be received by the Transfer Agent at least five days (but no more then 30 days) before the payment date of a dividend or distribution.
Whenever the Trust declares a dividend payable in cash or shares, the Transfer Agent, acting on behalf of each participating shareholder, will take the dividend in shares only if the net asset value is lower than the market price plus an estimated brokerage commission as of the close of business on the valuation day. The valuation day is the last day preceding the day of dividend payment.
When the dividend is to be taken in shares, the number of shares to be received is determined by dividing the cash dividend by the net asset value as of the close of business on the valuation date or, if greater than net asset value, 95% of the closing share price. If the net asset value of the shares is higher than the market value plus an estimated commission, the Transfer Agent, consistent with obtaining the best price and execution, will buy shares on the open market at current prices promptly after the dividend payment date.
The reinvestment of dividends does not, in any way, relieve participating shareholders of any federal, state or local tax. For federal income tax purposes, the amount reportable in respect of a dividend received in newly-issued shares of the Trust will be the fair market value of the shares received, which will be reportable as ordinary income and/or capital gains.
As compensation for its services, the Transfer Agent receives a fee of 5% of any dividend and cash contribution (in no event in excess of $2.50 per distribution per shareholder.)
Any questions regarding the Plan should be addressed to DST Systems, Inc., Transfer Agent for Babson Capital Corporate Investors' Dividend Reinvestment and Share Purchase Plan, P.O. Box 219086, Kansas City, MO 64121-9086.
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Babson Capital
Corporate Investors
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CI6216 | ||||
ITEM 7.
|
DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 8.
|
PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
|
ITEM 9.
|
PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS.
|
(a)
|
The principal executive officer and principal financial officer of the Registrant evaluated the effectiveness of the Registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940 (the "Act")) as of a date within 90 days of the filing date of this report and based on that evaluation have concluded that such disclosure controls and procedures are effective to provide reasonable assurance that material information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms.
|
(b)
|
There were no changes in the Registrant's internal control over financial reporting (as defined in Rule 30a-3(d) under the Act) during the Registrant's second fiscal half year that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.
|
(a)(1)
|
ANY CODE OF ETHICS, OR AMENDMENTS THERETO, THAT IS THE SUBJECT OF DISCLOSURE REQUIRED BY ITEM 2, TO THE EXTENT THAT THE REGISTRANT INTENDS TO SATISFY THE ITEM 2 REQUIREMENTS THROUGH THE FILING OF AN EXHIBIT.
|
(a)(2)
|
A SEPARATE CERTIFICATION FOR EACH PRINCIPAL EXECUTIVE OFFICER AND PRINCIPAL FINANCIAL OFFICER OF THE REGISTRANT AS REQUIRED BY RULE 30a-2 UNDER THE ACT.
|
(a)(3)
|
ANY WRITTEN SOLICITATION TO PURCHASE SECURITIES UNDER RULE 23c-1 UNDER THE ACT (17 CFR 270.23c-1) SENT OR GIVEN DURING THE PERIOD COVERED BY THE REPORT BY OR ON BEHALF OF THE REGISTRANT TO 10 OR MORE PERSONS.
|
(b)
|
CERTIFICATIONS PURSUANT TO RULE 30a-2(b) UNDER THE ACT.
|
(Registrant): | Babson Capital Corporate Investors | |
By: | /s/ Michael L. Klofas | |
Michael L. Klofas, President
|
||
Date: |
September 5, 2014
|
|
By: | /s/ Michael L. Klofas | |
Michael L. Klofas, President
|
||
Date: |
September 5, 2014
|
|
By: | /s/ James M. Roy | |
James M. Roy, Vice President and
Chief Financial Officer
|
||
Date: |
September 5, 2014
|
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