The Company estimates its portfolio will generate dividends, distributions, and interest income of approximately $6.9 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 $0.6 million per quarter from VantaCore, which is based on only the cash distribution the Company expects to receive, on average, over the next four quarters of $0.275 per common and preferred A unit. Unlike prior guidance, the Company’s estimate does not include payment-in-kind distributions that the Company expects to receive on VantaCore’s common and preferred A units. The Company’s guidance does not reflect any changes in cash distributions made by MLPs or changes in interest rates based on the movement in LIBOR rates since May 31, 2012.
AmountInvested($ in millions)
|Average AnnualYield (1)(2)|
|Private MLPs (3)(4)||$||80||11.0||%|
|Public MLPs and Other Public Equity (4)||176||7.2|
|Debt Investments (5)(6)||58||10.6|
|(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 May 31, 2012. Amounts invested for Private MLPs are based on May 31, 2012 valuations.|
|(3)||The amount invested excludes the Company’s equity investment in ProPetro (valued at $7.5 million as of May 31, 2012), which does not pay a dividend.|
|(4)||Amounts are pro forma for a partial distribution the Company expects to receive related to the $4.8 million incremental investment in VantaCore. The Company made this investment on June 8, 2012 and, as a result, will only receive approximately 25% of the distribution with respect to VantaCore’s second quarter. The investment was funded with proceeds from the sale of public MLPs and other public equity. The amounts in the table above are pro forma for the sale of these public securities.|
|(5)||The average yield includes straight-line amortization of the purchase price discounts/premiums through the expected maturity.|
|(6)||The amount invested includes the Company’s $12.8 million debt investment in ProPetro. This investment pays paid-in-kind interest at an annual rate of 13.0%.|
Management Fees and Other Operating Expenses – Management fees are estimated to be approximately $1.44 million per quarter. Other operating expenses are estimated to be approximately $0.40 million per quarter.