During the quarter, we also finalized the restructuring of a portfolio company we have been actively engaged in since year end. Details of the transaction are as follows:
- During July 2013, we restructured our investment in the 16.0% first lien term loan of The Bargain! Shop Holdings Inc. (“TBS”). We completed the purchase of substantially all of TBS assets through a newly-formed entity called Red Apple Stores Inc. (“Red Apple”). The majority of the existing term loan was converted into $20.0 million of a new 16.0% senior secured term loan and the remaining $1.5 million was converted to common equity. Additionally, we contributed $12.0 million to Red Apple in the form of a $5.0 million 18.0% subordinated PIK note and another $7.0 million for a controlling interest in its common equity. The entire investment was valued at par as of September 30, 2013. We also received a $1.3 million capital structuring fee in conjunction with our services performed in structuring the transaction.