Portfolio and Investment Activity
THL Credit closed on $49.3 million of investments in four new companies and a follow-on investment for an existing portfolio company during the fourth quarter, as follows:
- $12.0 million in the senior secured note of OEM Group, Inc., a global provider of capital equipment solutions to worldwide makers of silicone devices, based in Gilbert, AZ;
- $10.8 million in the senior secured term loan and revolving loan of T&D Solutions, LLC, a provider of maintenance and construction services for electrical transmission and distribution lines throughout the Gulf States region, based in Alexandria, LA;
- $13.0 million in the senior subordinated note and equity of C&K Market, Inc., a family-owned business and operator of supermarkets and pharmacies primarily in rural communities in Oregon and Northern California, headquartered in Brookings, OR;
- $12.5 million in the senior secured term loan of Purple Communications, Inc., a provider of communication services for people who are deaf, hard-of-hearing or speech disabled, headquartered in Rocklin, CA; and
- $1.0 million follow-on investment in Healthcarefirst, Inc. to fund an acquisition.
These transactions bring the total fair value of THL Credit's investment portfolio to $153.5 million across thirteen portfolio companies at the end of the year. There was one partial prepayment of $1.1 million during the quarter on its investment in Intelligrated, Inc. This investment was fully prepaid in February 2011.
As of Dec. 31, 2010, THL Credit's investment portfolio at fair value was allocated 52 percent in subordinated debt, 37 percent in senior secured debt, 8 percent in income-producing equity interests and 3 percent in equity. The weighted average yield of the debt and income producing equity securities in the investment portfolio at their current cost basis was 16.6 percent. The weighted average yield on its debt investments at their current cost basis was 15.8 percent.