The Company had net realized gains from investments of $1.3 million, after taking into account a deferred income tax benefit of $0.1 million and a current income tax expense of $0.7 million.
The Company had a net change in unrealized gains of $16.0 million. The net change consisted of $25.2 million of unrealized gains and a deferred income tax expense of $9.2 million.
The Company had an increase in net assets resulting from operations of $16.9 million. This increase was comprised of net investment loss of $0.4 million; net realized gains of $1.3 million; and net unrealized gains of $16.0 million, as noted above.
NET ASSET VALUE
As of August 31, 2012, the Company’s net asset value was $248.4 million or $23.90 per share. This represents an increase of $1.22 per share or 5.4% for the quarter.
As of August 31, 2012, the Company had long-term investments of $343.1 million, of which approximately 55% were public MLPs and other public equity securities, 28% were private MLPs and other private equity securities and 17% were debt securities. The Company’s long-term investments consisted of 46 portfolio companies.
UPDATES ON PRIVATE PORTFOLIO COMPANIES
The Company will provide updates on its private portfolio companies on its website at
in lieu of a quarterly earnings conference call.
LIQUIDITY AND CAPITAL RESOURCES
As of August 31, 2012, the Company had $77.0 million of borrowings under its credit facility (at an interest rate of 2.24%), which represented 59.6% of its borrowing base of $129.2 million (66.1% 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 423%. 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 October 25, 2012, the Company had $75.0 million borrowed under its credit facility and had $7.9 million in cash. Outstanding borrowings represented 54.3% of the borrowing base of $138.2 million (60.1% of its borrowing base attributable to quoted securities).