The Company had a decrease in net assets resulting from operations of $15.3 million. This decrease was comprised of net investment income of $0.04 million; net realized gains of $2.9 million; and net unrealized losses of $18.2 million, as noted above.
NET ASSET VALUE
As of May 31, 2012, the Company’s net asset value was $235.2 million or $22.68 per share. This represents a decrease of $1.86 per share for the quarter.
As of May 31, 2012, the Company had long-term investments of $321.4 million, of which approximately 56% were public MLPs and other public equity securities, 26% were private MLPs and other private equity securities and 18% were debt securities. The Company’s long-term investments consisted of 47 portfolio companies.
LIQUIDITY AND CAPITAL RESOURCES
As of May 31, 2012, the Company had $79.0 million of borrowings under its credit facility (at an interest rate of 2.27%), which represented 63.1% of its borrowing base of $125.2 million (69.7% 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 398%. 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 July 19, 2012, the Company had $80.0 million borrowed under its credit facility and had $5.4 million in cash. Outstanding borrowings represented 61.1% of the borrowing base of $131.0 million (67.5% of its borrowing base attributable to quoted securities).
On June 28, 2012, the Company declared a distribution of $0.41 per share for the quarter ended May 31, 2012, which was paid on July 20, 2012 to stockholders of record on July 13, 2012. This distribution represents an increase of 5.1% from the prior quarter’s distribution of $0.39 per share and an increase of 7.9% from the distribution for the quarter ended May 31, 2011.