PORTFOLIO AND INVESTMENT ACTIVITY
In the fourth quarter, THL Credit closed on $94.4 million in six new investment transactions and made $10.7 million of follow-on investments in three existing portfolio companies, excluding the broadly syndicated investments noted above. THL Credit had several realizations on prior investments generating $81.3 million of proceeds. Activity for the quarter included:
- $36.8 million investment in the subordinated term loan of Gold, Inc., a designer and distributor of both private label and branded accessories and travel gear for infants and children, headquartered in Aurora, CO; subsequent to year-end, THL Credit sold $15.7 million of its investment as anticipated;
- $25.4 million investment in the senior secured term loan of Harrison Gypsum, LLC ("Harrison"). Harrison mines, mills, processes and distributes gypsum and anhydrite products, and is based in Norman, OK; THL Credit expects to sell a portion of its investment;
- $11.0 million in the senior secured term loan of Washington Inventory Service, a global provider of outsourced inventory management services based in San Diego, CA;
- $10.0 million in the second lien term loan of Pinnacle Operating Corporation, a distributor of crop input and precision agricultural services to growers in the Mid-South, headquartered in Cleveland, MS;
- $10.0 million investment in the income notes of a collateralized debt obligation ("CLO") managed by Octagon Credit Investors, LLC;
- $1.2 million limited partnership investment in a fund managed by Gryphon Investors;
- $10.7 million in follow-on investments in Dr. Fresh, LLC, Pomeroy IT Solutions, Inc. and Vision Solutions, Inc.;
- Realization of debt investments in Texas Honing, Inc., JDC Healthcare Management, LLC, Pomeroy, T&D Solutions, LLC, Purple Communications, Inc. and Chuy's Opco, Inc., resulting in proceeds of $70.0 million, which includes prepayment premiums;
- Partial realization of debt investments in Loadmaster Derrick & Equipment, Inc. and YP Intermediate Holdings Corp., resulting in proceeds of $9.7 million;
- Interest income of $0.2 million and realized gains of $0.4 million resulting from the sale of $24.0 million of broadly syndicated loans in five companies made for short-term investment purposes in the fourth quarter.
These transactions bring the total fair value of THL Credit's investment portfolio to $394.3 million across 34 portfolio companies at the end of the year, an increase over the prior year end of approximately 48 percent. As of Dec. 31, 2012, the weighted average yield of the debt and income-producing securities in the investment portfolio at their current cost basis was 13.9 percent. The weighted average yield on the debt investments alone at their current cost basis was 13.7 percent.