Capitala Finance Corp. announced four investment exits totaling $57.2 million. The investment exits include:
- On August 2, 2016, the Company exited its $18.4 million subordinated debt investment in Merlin International, Inc. at par.
- On August 5, 2016, the Company exited its investment in MTI Holdings, Inc. The Company received $8.0 million for its subordinated debt investment, which was repaid at par. The Company also received $10.6 million for its equity investment, netting a realized gain of approximately $8.6 million.
- On August 24, 2016, the Company exited its investment in STX Healthcare Management Services, Inc. The Company received $6.4 million for its subordinated debt investment, which was repaid at par. The Company also received $2.8 million for its common stock and warrants, generating a gain of approximately $1.4 million.
- On August 25, 2016, the Company exited its investment in Sparus Holdings, Inc. The Company received $11.0 million representing full repayment of the Company’s senior secured and subordinated debt investments, including accrued PIK.
Following the repayment from Sparus Holdings, Inc., the Company’s current exposure to energy, on a fair value basis, is approximately 3%, compared to approximately 9 % at December 31, 2015.
Capitala Finance Corp. is a business development company that invests primarily in traditional mezzanine, senior subordinated and unitranche debt, as well as senior and second-lien loans and, to lesser extent, equity securities issued by lower and traditional middle-market companies. Capitala Finance Corp. is managed by Capitala Investment Advisors, LLC.