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BlackRock Kelso Capital Corporation Declares Regular Quarterly Dividend Of $0.26 Per Share, Announces September 30, 2012 Quarterly Financial Results

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 2012, the repurchase plan was further extended through June 30, 2013, with 1,331,143 shares remaining authorized for repurchase. There were no purchases under the plan during the three and nine months ended September 30, 2012. Since inception of the repurchase plan through September 30, 2012, 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, November 8, 2012 to discuss its third quarter 2012 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 23693751). 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 6:30 p.m. on Thursday, November 8, 2012 and ending at midnight on Thursday, November 15, 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 23693751. 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

Consolidated Statements of Assets and Liabilities

(Unaudited)

 
           

September 30,

2012

December 31,

2011

Assets
Investments at fair value:
Non-controlled, non-affiliated investments (cost of $884,155,194 and $959,635,127) $ 887,470,029 $ 890,691,404
Non-controlled, affiliated investments (cost of $44,239,954 and $59,633,913) 58,121,346 71,035,799
Controlled investments (cost of $151,419,698 and $78,601,629)   148,386,742     87,225,239  
 
Total investments at fair value (cost of $1,079,814,846 and $1,097,870,669) 1,093,978,117 1,048,952,442
Cash and cash equivalents 2,975,810 7,478,904
Cash denominated in foreign currencies (cost of $834 and $300,380) 936 300,089
Receivable for investments sold 204,595 2,734,705
Interest receivable 22,872,721 16,474,871
Dividends receivable 8,493,799
Prepaid expenses and other assets   4,942,631     6,740,517  
 
Total Assets $ 1,124,974,810   $ 1,091,175,327  
 
Liabilities
Payable for investments purchased $ 1,541,222 $ 421,597
Unrealized depreciation on forward foreign currency contracts 771,405 1,106,241
Debt 384,600,000 343,000,000
Interest payable 2,557,731 5,592,184
Dividend distributions payable 19,160,728 19,040,586
Base management fees payable 5,964,904 5,293,755
Incentive management fees payable 2,963,803 11,878,159
Accrued administrative services 165,049 144,625
Other accrued expenses and payables   3,715,740     3,689,331  
 
Total Liabilities   421,440,582     390,166,478  
 
Net Assets

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

  authorized, 75,120,620 and 74,636,091 issued and 73,695,113 and

  73,210,584 outstanding

75,121 74,636
Paid-in capital in excess of par 987,373,660 983,082,373
Distributions in excess of net investment income (18,195,866 ) (26,165,703 )
Accumulated net realized loss (267,939,687 ) (194,505,823 )
Net unrealized appreciation (depreciation) 11,697,676 (51,999,958 )
Treasury stock at cost, 1,425,507 and 1,425,507 shares held   (9,476,676 )   (9,476,676 )
 
Total Net Assets   703,534,228     701,008,849  
 
Total Liabilities and Net Assets $ 1,124,974,810     1,091,175,327  
 
Net Asset Value Per Share $ 9.55 $ 9.58
 
 
BlackRock Kelso Capital Corporation           Three months     Three months    

Nine months

   

Nine months

Consolidated Statements of Operations (Unaudited)

ended ended

ended

ended

 

September 30, 2012 September 30, 2011

September 30, 2012

September 30, 2011

Investment Income:
Interest income:
Non-controlled, non-affiliated investments

$

27,543,637

$ 24,001,231 $ 81,802,597 $ 67,222,334
Non-controlled, affiliated investments 1,037,387 835,283 4,053,330 3,509,261
Controlled investments     3,071,070     2,288,318     6,501,767     4,951,516  
 
Total interest income 31,652,094 27,124,832 92,357,694 75,683,111
Fee income:
Non-controlled, non-affiliated investments 8,369,140 4,701,489 15,457,315 15,781,903
Non-controlled, affiliated investments 602,344 387,558 735,708 546,114
Controlled investments     57,679     39,677     136,170     117,738  
 
Total fee income     9,029,163     5,128,724     16,329,193     16,445,755  
 
Dividend income:
Non-controlled, non-affiliated investments 38,845 610,173 706,157 2,278,768
Non-controlled, affiliated investments 383,516 1,106,309
Controlled investments                  
 
Total dividend income     38,845     993,689     706,157     3,385,077  
 
Total investment income     40,720,102     33,247,245     109,393,044     95,513,943  
 
Expenses:
Base management fees 5,964,904 5,124,033 16,877,541 14,547,503
Interest and credit facility fees 5,180,706 4,208,359 14,917,849 11,902,630
Incentive management fees 2,963,803 5,177,662
Amortization of debt issuance costs 634,677 634,678 1,890,236 1,871,184
Professional fees 577,051 683,095 1,080,582 1,345,608
Investment advisor expenses 511,774 315,435 1,364,420 1,176,450
Administrative services 164,074 319,500 416,608 866,121
Director fees 113,500 97,000 347,063 309,269
Other     671,341     900,532     1,975,362     1,914,697  
 
Total expenses     16,781,830     12,282,632     44,047,323     33,933,462  
 
Net Investment Income     23,938,272     20,964,613     65,345,721     61,580,481  
 
Realized and Unrealized Gain (Loss):
Net realized gain (loss):
Non-controlled, non-affiliated investments (4,417 ) 258,039 (75,340,007 ) (37,073,408 )
Non-controlled, affiliated investments 2,441,751 176,800 2,123,846 (4,892,398 )
Controlled investments 18,929 22,372
Foreign currency     362,009     682,083     (217,703 )   (496,180 )
 
Net realized gain (loss)     2,799,343     1,135,851     (73,433,864 )   (42,439,614 )
 
Net change in unrealized appreciation or depreciation on:
Non-controlled, non-affiliated investments (1,814,151 ) (4,598,697 ) 77,069,859 44,282,872
Non-controlled, affiliated investments 5,287,500 (190,180 ) 6,300,604 10,447,300
Controlled investments (14,735,396 ) (5,630,890 ) (20,004,775 ) (5,548,533 )
Foreign currency translation     (1,146,461 )   1,256,787     331,946     1,548,246  
 

Net change in unrealized appreciation or depreciation

    (12,408,508 )  

(9,162,980

)

  63,697,634     50,729,885  
 
Net realized and unrealized gain (loss)     (9,609,165 )   (8,027,129 )   (9,736,230 )   8,290,271  
 
Net Increase in Net Assets Resulting from Operations   $ 14,329,107   $ 12,937,484   $ 55,609,491   $ 69,870,752  
 
Net Investment Income Per Share   $ 0.32   $ 0.29   $ 0.89   $ 0.84  
 
Earnings Per Share   $ 0.19   $ 0.18   $ 0.76   $ 0.96  
 
Basic and Diluted Weighted-Average Shares Outstanding 73,692,104 73,101,398 73,555,011 72,966,076
Dividends Declared Per Share $ 0.26 $ 0.26 $ 0.78 $ 0.84
 

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.

Stock quotes in this article: BKCC 

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