THL Credit Announces Second Quarter 2010 Financial Results And Quarterly Dividend Of $0.05 Per Share
Results of Operations
Total investment income for the quarter was $2.44 million, of which $1.75 million was attributable to interest and fees on subordinated debt and senior secured loans, $0.61 million was attributable to interest from income-producing equity interests and $0.08 million was derived from interest on cash and cash equivalents.
Operating expenses for the period totaled $1.71 million. Base management fees were $0.74 million with administrator expenses of $0.35 million. There was no incentive fee incurred during the quarter.
THL Credit had net investment income of $0.73 million, or $0.04 per share based on a weighted average of 19,625,761 shares for the period. THL Credit’s investments had $0.1 million of estimated net unrealized appreciation.Net Increase in Net Assets from Operations THL Credit had a net increase in net assets resulting from operations of $0.84 million for the second quarter, or $0.04 per share based on a weighted-average of 19,625,761 shares for the period. Financial Condition, Liquidity and Capital Resources As of June 30, 2010, the company had $174.8 million in cash and cash equivalents. It generated cash primarily from the net proceeds of its IPO as well as cash flows from operations, including interest earned and fees received on subordinated debt, senior secured loans and other income- producing equity securities. In the future, the company may also fund a portion of its investments through borrowing from banks and future equity offerings. It does not expect to incur such debt until the net proceeds of its initial public offering have been substantially invested. “We are currently in the process of arranging borrowing capacity to leverage our business. We expect to have a credit facility in place before the end of the year,” said Terrence W. Olson, chief operating office and chief financial officer of THL Credit. “While the investments we are making today do not require leverage to meet our return hurdles, prudently leveraging our capital structure is integral to maximizing our long-term returns to shareholders.”
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