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BlackRock Kelso Capital Corporation Declares Regular First Quarter Dividend Of $0.26 Per Share, Announces Financial Results For The Quarter And Year Ended December 31, 2011

Stocks in this article: BKCC

Share Repurchase Plan

In 2008, our Board of Directors approved a share repurchase plan under which we may repurchase up to 2.5% of our outstanding shares of common stock from time to time in open market or privately negotiated transactions. In 2009, our Board of Directors approved an extension and increase to the plan which authorized us to repurchase up to an additional 2.5% of our outstanding shares of common stock. In May 2011, the repurchase plan was further extended through June 30, 2012, with 1,594,971 shares remaining authorized for repurchase. During the three months and year ended December 31, 2011, we purchased a total of 63,828 and 463,828 shares of our common stock on the open market for $0.5 million and $4.1 million, respectively, including brokerage commissions. Since inception of the repurchase plan through December 31, 2011, we have purchased 1,425,507 shares of our common stock on the open market for $9.5 million, including brokerage commissions.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that from time to time we may purchase shares of our common stock in the open market at prevailing market prices.

Conference Call

BlackRock Kelso Capital will host a webcast/teleconference at 4:30 p.m. (Eastern Time) on Thursday, March 1, 2012 to discuss its fourth quarter and full year 2011 financial results. All interested parties are welcome to participate. You can access the teleconference by dialing, from the United States, (800) 374-0176, or from outside the United States, (706) 679-3431, shortly before 4:30 p.m. and referencing the BlackRock Kelso Capital Corporation Conference Call (ID Number 27958070). A live, listen-only webcast will also be available via the investor relations section of www.blackrockkelso.com.

Both the teleconference and webcast will be available for replay by 6:00 p.m. on Thursday, March 1, 2012 and ending at midnight on Thursday, March 8, 2012. To access the replay of the teleconference, callers from the United States should dial (855) 859-2056 and callers from outside the United States should dial (404) 537-3406 and enter the Conference ID Number 27958070. To access the webcast, please visit the investor relations section of www.blackrockkelso.com.

PRIOR TO THE WEBCAST/TELECONFERENCE, AN INVESTOR PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL WILL BE POSTED TO BLACKROCK KELSO CAPITAL’S WEBSITE WITHIN THE PRESENTATIONS SECTION OF THE INVESTOR RELATIONS PAGE ( http://www.blackrockkelso.com/InvestorRelations/Presentations/index.htm).

 

BlackRock Kelso Capital Corporation

Statements of Assets and Liabilities (Unaudited)

 
        December 31, 2011     December 31, 2010
Assets:
Investments at fair value:

Non-controlled, non-affiliated investments (amortized cost of

  $959,635,127 and $822,763,237)

$ 890,691,404

$

707,262,774

Non-controlled, affiliated investments (amortized cost of

  $59,633,913 and $80,424,668)

71,035,799 77,376,201
Controlled investments (amortized cost of $78,601,629 and $82,489,600)   87,225,239     95,446,691  
 

Total investments at fair value (amortized cost of

  $1,097,870,669 and $985,677,505)

1,048,952,442 880,085,666
Cash and cash equivalents 7,478,904 1,344,159
Cash denominated in foreign currency (cost of $300,380 and $798,560) 300,089 816,712
Receivable for investments sold 2,734,705 5,316,189
Interest receivable 16,474,871 10,763,333
Dividends receivable 8,493,799 9,849,927
Prepaid expenses and other assets   6,740,517     7,431,688  
 
Total Assets $ 1,091,175,327   $ 915,607,674  
 
Liabilities:
Payable for investments purchased $ 421,597 $ 2,726,437
Unrealized depreciation on forward foreign currency contracts 1,106,241 368,445
Debt 343,000,000 170,000,000
Interest payable 5,592,184 256,084
Dividend distributions payable 19,040,586 23,222,287
Base management fees payable 5,293,755 4,355,021
Incentive management fees payable 11,878,159 14,614,098
Accrued administrative services 144,625 80,164
Other accrued expenses and payables   3,689,331     1,505,214  
 
Total Liabilities   390,166,478     217,127,750  
 
Net Assets:

Common stock, par value $.001 per share, 200,000,000 common

  shares authorized, 74,636,091 and 73,531,317 issued and

  73,210,584 and 72,569,638 outstanding

74,636 73,531
Paid-in capital in excess of par 983,082,373 994,200,522
Distributions in excess of net investment income (26,165,703 ) (4,029,341 )
Accumulated net realized loss (194,505,823 ) (180,403,836 )
Net unrealized depreciation (51,999,958 ) (105,935,052 )
Treasury stock at cost, 1,425,507 and 961,679 shares held   (9,476,676 )   (5,425,900 )
 
Total Net Assets   701,008,849     698,479,924  
 
Total Liabilities and Net Assets $ 1,091,175,327   $ 915,607,674  
 
Net Asset Value Per Share $ 9.58 $ 9.62
 
                   

BlackRock Kelso Capital Corporation Statements of Operations (Unaudited)

Three months ended December 31, 2011 Three months ended December 31, 2010

Year ended

December 31, 2011

Year ended

December 31, 2010

Investment Income:
From non-controlled, non-affiliated investments:
Interest $ 29,449,310 $ 20,091,445 $ 112,416,047 $ 92,169,396
Dividends 649,428 1,513,096 2,928,196 3,101,377
Other income 739,177 24,754 776,677 62,254
From non-controlled, affiliated investments:
Interest 1,680,307

1,680,754

5,735,682

6,403,192
Dividends 21,898

340,418

1,128,207

1,284,148
Other Income 149,040

 

149,040

From controlled investments:
Interest 3,249,435 1,342,146 8,318,689 2,800,470
Other Income   50,000     50,000     50,000     50,000  
 
Total investment income   35,988,595     25,042,613     131,502,538     105,870,837  
 
Expenses:
Base management fees 5,293,755 4,355,022 19,841,258 16,877,854
Interest and credit facility fees 4,658,465 1,663,213 16,561,095 6,233,689
Incentive management fees 11,878,159 14,614,098 11,878,159 15,108,049
Amortization of debt issuance costs 628,558 666,557 2,499,742 2,136,038
Professional fees 560,174 87,110 1,905,782 877,930
Investment advisor expenses 603,284 444,690 1,779,734 1,622,957
Administrative services 307,633 81,984 1,173,754 763,876
Insurance 136,153 123,408 486,759 581,428
Director fees 108,295 104,581 417,564 385,750
Other   515,809     249,993     2,079,900     1,134,155  
 
Total expenses   24,690,285     22,390,656     58,623,747     45,721,726  
 
Net investment income before excise taxes 11,298,310 2,651,957 72,878,791 60,149,111
Excise tax expense       (298,322 )       (298,322 )
 
Net Investment Income   11,298,310     2,353,635     72,878,791     59,850,789  
 
Realized and Unrealized Gain (Loss):
Net realized gain (loss):
Non-controlled, non-affiliated investments (1,241,275 ) (26,397,180 ) (38,314,683 ) (53,083,081 )
Non-controlled, affiliated investments 6,051 667 (4,886,347 ) (36,221,198 )
Controlled investments (7,923,526 ) (7,901,154 ) 2,515
Foreign currency   1,704,988     (1,101,957 )   1,208,808     (934,959 )
 
Net realized gain (loss)   (7,453,762 )   (27,498,470 )   (49,893,376 )   (90,236,723 )
 

Net change in unrealized appreciation or  depreciation on:

Non-controlled, non-affiliated investments 294,194 23,279,906 44,577,066 32,535,681
Non-controlled, affiliated investments 4,586,672 2,864,581 15,033,972 39,491,418
Controlled investments 633,029 1,343,868 (4,915,504 ) 30,459,019
Foreign currency translation   (2,308,686 )   72,454     (760,440 )   (550,623 )
 
Net change in unrealized appreciation or depreciation   3,205,209     27,560,809     53,935,094     101,935,495  
 
Net realized and unrealized gain (loss)   (4,248,553 )   62,339     4,041,718     11,698,772  
 
Net Increase in Net Assets Resulting from Operations $ 7,049,757   $ 2,415,974   $ 76,920,509   $ 71,549,561  
 
Net Investment Income Per Share $ 0.15   $ 0.03   $ 1.00   $ 0.96  
 
Earnings Per Share $ 0.10   $ 0.03   $ 1.05   $ 1.14  
 
Basic and Diluted Weighted-Average Shares Outstanding 73,248,862 70,867,464 73,037,357 62,663,002
Dividends Declared Per Share $ 0.26 $ 0.32 $ 1.10 $ 1.28
 

Supplemental Information

The Company reports its financial results on a GAAP basis; however, management believes that evaluating the Company’s ongoing operating results may be enhanced if investors have additional non-GAAP basis financial measures. Management reviews non-GAAP financial measures to assess ongoing operations and, for the reasons described below, considers them to be effective indicators, for both management and investors, of the Company’s financial performance over time. The Company’s management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP.

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