As of Sept. 30, 2010, the portfolio's investments at fair value were allocated 63 percent in subordinated debt, 21 percent in senior secured debt, 12 percent in income-producing equity interests and 4 percent in equity. The weighted average yield of the debt and income producing equity securities in its portfolio at their current cost basis was 17.6 percent. The weighted average yield on its senior secured loans and subordinated debt securities at their current cost basis was 16.5 percent.
Results of Operations
Total investment income for the third quarter was $4.08 million, of which $3.15 million was attributable to interest and fees on subordinated debt and senior secured loans, $0.80 million was attributable to interest from income-producing equity interests and $0.13 million was derived from interest on cash and cash equivalents.
Operating expenses for the quarter totaled $2.22 million. Base management fees were $0.97 million with administrator and other expenses of $1.25 million. There was no incentive fee incurred during the quarter.THL Credit had net investment income of $1.86 million, or $0.09 per share based on a weighted average of 19,792,370 shares for the quarter ended Sept. 30, 2010. THL Credit's investments had $1.05 million of estimated net unrealized appreciation for the quarter ended Sept. 30, 2010. Net Increase in Net Assets from Operations THL Credit had a net increase in net assets resulting from operations of $2.92 million for the third quarter, or $0.15 per share, based on a weighted-average of 19,792,370 shares. Financial Condition, Liquidity and Capital Resources As of Sept. 30, 2010, the company had $160.9 million in cash and cash equivalents. It generated cash primarily from 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.