Based on the Company’s portfolio of investments and average yields on those investments as of August 31, 2010, the Company estimates dividends, distributions, and interest income will be approximately $5.0 million per quarter. Such estimate does not reflect any changes in cash distributions made by MLPs or changes in interest rates based on the movement in LIBOR rates since August 31, 2010. The estimate includes the $1.4 million per quarter preferred unit distribution from Direct Fuels.
|Portfolio Category||Amount Invested($ in millions)||Average AnnualYield (1)(2)|
|Public MLPs and MLP Affiliates||$75.2||6.8%|
|Fixed Income (3)||$34.7||9.1%|
|Cash and Cash Equivalents (4)||$4.2||0.1%|
|(1)||Average yields include return of capital distributions. Return of capital distributions are reported as a reduction to gross dividends and distributions to arrive at net investment income reported under generally accepted accounting principles.|
|(2)||Average yields for Public MLPs and MLP Affiliates are based on the most recently declared distributions as of August 31, 2010. Amount invested and average yields for Private MLPs are based on August 31, 2010 valuations and distribution rates.|
|(3)||The average yield includes amortization of the purchase price discounts. The amount invested and average yield excludes the Company’s ProPetro investment (the Company does not anticipate receiving cash interest payments on this investment).|
|(4)||Includes repurchase agreements and cash at August 31, 2010 less Q3 2010 distribution of $3.1 million (to be paid on October 28, 2010).|
Management Fees and Other Operating Expenses - Management fees are estimated to be approximately $1.1 million per quarter. Other operating expenses are estimated to be approximately $0.45 million per quarter.
Interest Expense - Based on $52.0 million borrowed under the Company’s senior secured revolving credit facility as of August 31, 2010, interest expense is estimated to be approximately $0.32 million per quarter assuming a LIBOR rate of 0.30% and a spread of 2.00%.