NEW YORK, May 23, 2012 /PRNewswire/ --Business Development Corporation of America ("BDCA" or the "Company") announced results of operations for the first quarter ended March 31, 2012.
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The Company commenced operations on August 25, 2011, subsequent to raising sufficient funds to meet escrow break requirements. For the three months ended March 31, 2012, BDCA acquired $24.0 million of investments, at fair value, in 31 individual investments. In addition, BDCA received proceeds of $5.9 million during this period from selling certain investments and repayments. The Company realized a gain of $0.1 million from exiting such investments. Net investment income (determined in accordance with generally accepted accounting principles) of $357,000 was generated during the first quarter of 2012, excluding realized and unrealized gains and losses. During the same period, the Company paid distributions of $243,000.
"Once again, we are pleased to report another strong quarter of operations for BDCA," stated Peter M. Budko, President and Chief Operating Officer of the Company. Mr. Budko noted, "We continue to fully cover our dividend from our core net investment income rather than rely upon investment gains and new equity raised to cover shortfalls. Our portfolio continues to be of high quality, with over 91 percent of our assets invested in senior secured loans. With continued unease in Europe and other economic concerns, we believe that our strategy of originating and participating in well structured, senior secured loans to middle market U.S. companies provides our investors with a conservative investment alternative."
Portfolio Highlights (dollar amounts in thousands):
March 31, 2012 | December 31, 2011 | ||
Investments, at fair value | $ 32,830 | $ 14,271 | |
Net asset value per share (1) | $ 9.18 | $ 9.00 | |
Weighted average current coupon yield (2) | 11.10% | 10.79% | |
Number of portfolio investments | 30 | 35 | |
Number of industry groups | 16 | 18 | |
(1) Net asset value per share and common shares outstanding for the period ended March 31, 2012 and year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012. | |||
(2) Includes the effect of the amortization or accretion of loan premiums or discounts. | |||
BUSINESS DEVELOPMENT CORPORATION OF AMERICA | |||||||
STATEMENTS OF ASSETS AND LIABILITIES | |||||||
(in thousands except share and per share data) | |||||||
March31, 2012 | December31, 2011 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Investments, at fair value (amortized cost of $32,520 and $14,294, respectively) | $ | 32,830 | $ | 14,271 | |||
Cash and cash equivalents | 1,120 | 828 | |||||
Interest receivable | 265 | 142 | |||||
Due from affiliate | 2,106 | 918 | |||||
Deferred credit facility financing costs, net | 38 | 50 | |||||
Prepaid expenses and other assets | 27 | 41 | |||||
Total assets | 36,386 | 16,250 | |||||
LIABILITIES | |||||||
Revolving credit facility | $ | 10,000 | $ | 5,900 | |||
Payable for unsettled trades | 1,007 | 1,914 | |||||
Accounts payable and accrued expenses | 145 | 154 | |||||
Interest and credit facility fees payable | 32 | 19 | |||||
Stockholder distributions payable | 166 | 56 | |||||
Total liabilities | 11,350 | 8,043 | |||||
NET ASSETS | |||||||
Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding | $ | - | $ | - | |||
Common stock, $.001 par value, 450,000,000 shares authorized | 3 | 1 | |||||
Capital in excess of par value | 24,645 | 8,235 | |||||
Accumulated distributions in excess of net investment income | (3) | (7) | |||||
Accumulated net realized gain from investments | 81 | 1 | |||||
Net unrealized appreciation (depreciation) on investments | 310 | (23) | |||||
Net assets | 25,036 | 8,207 | |||||
Total liabilities and net assets | $ | 36,386 | $ | 16,250 | |||
Net asset value per share * | $ | 9.18 | $ | 9.00 | |||
Offering price per share excluding commissions and dealer manager fees | $ | 9.23 | $ | 9.23 | |||
*Net asset value per share and common shares outstanding for the period ended March 31, 2012 and year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.
BUSINESS DEVELOPMENT CORPORATION OF AMERICA | ||||||||
STATEMENTS OF OPERATIONS | ||||||||
(dollars in thousands except share and per share data) | ||||||||
(Unaudited) | ||||||||
For the Three Months Ended March 31, | ||||||||
2012 | 2011 | |||||||
Investment income: | ||||||||
Interest income | $ | 569 | $ | - | ||||
Other income | 41 | - | ||||||
Total investment income | 610 | - | ||||||
Operating expenses: | ||||||||
Interest and credit facility financing expenses | 106 | 13 | ||||||
Professional fees | 119 | - | ||||||
Directors fees | 29 | - | ||||||
Insurance | 51 | - | ||||||
Management fees | 98 | - | ||||||
Incentive fees | 149 | - | ||||||
Other administrative | 26 | 50 | ||||||
Expenses before expense waivers and reimbursements | 578 | 63 | ||||||
Waiver of management and incentive fees | (247) | - | ||||||
Expense support reimbursement | (78) | - | ||||||
Total expenses, net of expense waivers and reimbursements | 253 | 63 | ||||||
Net investment income (loss) | 357 | (63) | ||||||
Realized and unrealized gain on investments: | ||||||||
Net realized gain from investments | 80 | - | ||||||
Net change in unrealized appreciation on investments | 333 | - | ||||||
Net realized and unrealized gain on investments | 413 | - | ||||||
Net increase (decrease) in net assets resulting from operations | $ | 770 | $ | (63) | ||||
Per share information - basic and diluted*: | ||||||||
Net investment income (loss) | $ | 0.21 | $ | (2.82) | ||||
Net increase (decrease) in net assets resulting from operations | $ | 0.44 | $ | (2.82) | ||||
Weighted average common shares outstanding | 1,739,161 | 22,223 | ||||||
*Per share information - basic and diluted and weighted average common shares outstanding for the three months ended March 31, 2012 and 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.
This announcement may contain certain forward-looking statements, including statements with regard to the future performance of BDCA. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings BDCA makes with the SEC. BDCA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
SOURCE Business Development Corporation of America
