The Company had a decrease in net assets resulting from operations of $4.7 million. This decrease is composed of a net investment income of $0.3 million; net realized gains of $2.3 million; and net unrealized loss of $7.3 million, as noted above.
NET ASSET VALUE
As of August 31, 2011, the Company’s net asset value was $227.3 million or $22.01 per share. This represents a decrease of $0.84 per share or 3.7% for the quarter.
As of August 31, 2011, the Company’s net asset value included current and deferred income tax liabilities of $7.1 million and $3.4 million, respectively.
As of August 31, 2011, the Company had long-term investments of $298.4 million, consisting of 48 portfolio companies, of which approximately 59% were public MLPs and other public equity securities, 24% were private MLPs and other private equity securities and 17% were debt securities.
LIQUIDITY AND CAPITAL RESOURCES
As of August 31, 2011, the Company had approximately $3.3 million in short-term investments in the form of a repurchase agreement. The Company’s repurchase agreement is collateralized by U.S. Treasury securities, and the Company’s counterparty is J.P. Morgan Securities Inc.
As of August 31, 2011, the Company had $70.0 million of borrowings under its credit facility (at an interest rate of 2.21%), which represented 56.6% of its borrowing base of $123.7 million (61.8% of its quoted borrowing base of $113.4 attributable to quoted securities). At the same date, the Company’s asset coverage ratio under the Investment Company Act of 1940 was 425%. The maximum amount that the Company can borrow under its credit facility is limited to the lesser of the commitment amount of $70.0 million or its borrowing base. As of October 14, 2011, the Company had $69.0 million of borrowings (at an interest rate of 2.24%), which represented 56.8% of the borrowing base of $121.6 million (62.1% of its borrowing base attributable to quoted securities).