This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Kohlberg Capital Corporation Declares 2010 Third Quarter Dividend Of $0.17 Per Share And Announces Forbearance And Settlement Agreement With Lenders

NEW YORK, Sept. 20, 2010 (GLOBE NEWSWIRE) -- Kohlberg Capital Corporation (Nasdaq:KCAP) ("Kohlberg Capital" or the "Company") today announced that its Board of Directors has declared a cash dividend of $0.17 per share on shares of its common stock for the quarter ending September 30, 2010.  The dividend is payable on October 29, 2010 to shareholders of record as of October 8, 2010. The quarterly dividend was determined by the Board of Directors taking into consideration an estimated amount of distributable income for Kohlberg Capital for the year ending December 31, 2010 and reflects assumptions regarding extraordinary expenses associated with the re-audit of its 2007 and 2008 financial statements (including related third-party valuation consulting services) and the legal and regulatory proceeding relating to the previously disclosed restatements to the Company's historical financial statements. Such extraordinary expenses are assumed to be partially offset by the estimated amount of dividend distributions for 2010 from Katonah Debt Advisors, LLC, an asset management company and wholly-owned portfolio company. In addition, the estimated 2010 distributable income treats the extraordinary expenses as if they had been evenly distributed over the full fiscal year and also excludes the impact of the disputed default rate of interest currently being paid under Kohlberg Capital's credit facility.

Kohlberg Capital has adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of dividends on behalf of stockholders, unless a stockholder elects to receive cash. As a result, if Kohlberg Capital declares a cash dividend, stockholders who have not "opted out" of the dividend reinvestment plan will have their cash dividends automatically reinvested in additional shares of Kohlberg Capital common stock, rather than receiving the cash dividends. Please contact your broker or other financial intermediary for more information regarding the DRIP.

Forbearance and Settlement Agreement with Lenders

On September 20, 2010, the Company and Kohlberg Capital Funding LLC I, the Company's special purpose, bankruptcy-remote, wholly-owned subsidiary, entered into a forbearance and settlement agreement relating to their revolving credit facility with BMO Capital Markets Corp., Deutsche Bank AG and the other lender parties in order to settle all outstanding claims asserted in connection with the Company-initiated credit facility litigation. Subject to the terms and conditions of the settlement, which are more fully described in the Company's recent filing with the SEC, the lender parties have agreed to refrain from exercising any right or remedy relating to previously alleged termination events under the credit facility through February 28, 2011.  The lender parties have agreed to reset the interest rate on outstanding borrowings during the forbearance period to originally stated terms of 0.85% above the prevailing commercial paper rate (or prevailing LIBOR if the commercial paper market is at any time unavailable). The parties have further agreed to a mutual release of claims conditioned, in the case of the lender parties' release, on the payment in full on or prior to February 28, 2011 of the amounts outstanding under the credit facility. Upon such payment, the lender parties will remit to Kohlberg Capital Funding a cash settlement payment of $2 million or will credit this amount toward the amounts outstanding under the credit facility.  Dayl Pearson, the Company's President and Chief Executive Officer, commented on the settlement: "This settlement removes the uncertainty of the potential maturity at the end of September and provides the Company with the ability to manage the repayment of the facility through the end of February 2011. The resetting of the interest rate to the original rate of CP + 85bps will significantly reduce our interest expense during the forbearance period and the receipt of the settlement payment from the lenders upon full repayment of the facility by the end of February 2011 is expected to offset our litigation costs." 

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,943.81 +28.74 0.17%
S&P 500 1,967.57 +2.89 0.15%
NASDAQ 4,415.49 +19.2860 0.44%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs