"Given what we expect to be an active investment pace in the coming quarters, we anticipate having a leverage facility in place for use in the first quarter of 2011," said Terrence W. Olson, chief operating officer and chief financial officer of THL Credit. "In addition, we recently submitted our SBIC Management Assessment Questionnaire to the SBA. An SBIC license would provide access to long-term low cost capital to expand our investing activities."
Many middle market companies have waited for clear economic signals before borrowing. At the same time, their owners are sensitive to the prospect that taxes on capital gains may increase in 2011. If economic conditions remain stable, these two catalysts could release a backlog and result in increasing demand for THL Credit's product. THL Credit has started to see some signs of this in recent months and is well positioned to capitalize on this in the fourth quarter and early 2011.
Year to date, the Company's origination platform has allowed it to identify over 600 transactions from its pool of more than 300 deal sources, and continues to drive a high-quality pipeline of investment opportunities. While the exact timing of closings can be difficult to predict, $40 to $60 million of closings per quarter is a reasonable expectation as the Company continues to deploy capital raised in its initial public offering."We are confident that our origination efforts and our prudent investment approach will result in a continued portfolio ramp that will drive strong returns and deliver dividend growth to our stockholders," said Mr. Hunt. Conference Call The company will host a conference call to discuss these results on Nov. 10, 2010, at 1 p.m. Eastern Standard Time. The conference call will be led by James K. Hunt, chief executive officer, and Terrence W. Olson, chief operating officer and chief financial officer.