The Company had an increase in net assets resulting from operations of $19.9 million. This increase was composed of net investment income of $0.6 million; net realized gains of $1.9 million; and net unrealized gains of $17.4 million, as noted above.
NET ASSET VALUE
As of February 29, 2012, the Company’s net asset value was $254.2 million or $24.54 per share. This represents an increase of $1.53 per share (6.6%) for the quarter.
PORTFOLIOAs of February 29, 2012, the Company had long-term investments of $345.9 million, of which approximately 58% were public MLPs and other public equity securities, 25% were private MLPs and other private equity securities and 17% were debt securities. Our long-term investments consisted of 51 portfolio companies. LIQUIDITY AND CAPITAL RESOURCES As of February 29, 2012, the Company had $77.0 million of borrowings under its credit facility (at an interest rate of 2.26%), which represented 54.4% of its borrowing base of $141.4 million (59.6% of its borrowing base attributable to quoted securities). At the same date, the Company’s asset coverage ratio under the Investment Company Act of 1940 was 430%. The maximum amount that the Company can borrow under its credit facility is limited to the lesser of the commitment amount of $85.0 million or its borrowing base. As of April 23, 2012, the Company had $80.0 million borrowed under its credit facility and had $5.9 million in cash. Outstanding borrowings represented 58.8% of the borrowing base of $136.0 million (64.6% of its borrowing base attributable to quoted securities). GUIDANCE The Company estimates its portfolio will generate dividends, distributions, and interest income of approximately $7.0 million in the next quarter. This estimate includes cash distributions of $1.5 million per quarter for Direct Fuels. The estimate also includes distributions of $0.8 million per quarter from VantaCore, all of which is expected to be paid in additional preferred units during the Company’s second quarter of fiscal 2012. The Company’s guidance does not reflect any changes in cash distributions made by MLPs or changes in interest rates based on the movement in LIBOR rates since February 29, 2012.
AmountInvested($ in millions)
Average AnnualYield (1)(2)
|Private MLPs (3)||$||69||13.8||%|
|Public MLPs and Other Public Equity||200||6.2|
|Debt Investments (4)(5)||57||10.1|
|(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 Other Public Equity are based on the most recently declared distributions as of February 29, 2012. Amounts invested for Private MLPs are based on February 29, 2012 valuations.|
|(3)||The amount invested excludes the Company’s equity investment in ProPetro (valued at $19.3 million as of February 29, 2012) which does not pay a dividend.|
|(4)||The average yield includes straight-line amortization of the purchase price discounts/premiums through the expected maturity.|
|(5)||The amount invested includes the Company’s $12.4 million debt investment in ProPetro. This investment pays paid-in-kind interest at an annual rate of 13.0%.|