(5) Computed as (a) annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount earned on accruing debt and other income producing securities, divided by (b) total debt and other income producing securities at amortized cost.
FOURTH QUARTER 2012 OPERATING RESULTS
For the quarter ended December 31, 2012, Ares Capital reported GAAP net income of $175.1 million or $0.71 per share (basic and diluted), Core EPS(2) of $0.45 per share (basic and diluted), net investment income of $94.5 million, or $0.38 per share (basic and diluted), and net realized and unrealized gains of $80.7 million or $0.33 per share (basic and diluted).
Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.As of December 31, 2012, total assets were $6.4 billion, stockholders’ equity was $4.0 billion and net asset value per share was $16.04. In the fourth quarter of 2012, Ares Capital made $1,062.8 million in new commitments, including commitments to 10 new portfolio companies, 10 existing portfolio companies, as well as eight additional portfolio companies through the Senior Secured Loan Fund LLC, which operates using the name “Senior Secured Loan Program” (the “SSLP”) through which Ares Capital co-invests with GE Global Sponsor Finance LLC and General Electric Capital Corporation (together, “GE”) to fund first lien senior secured loans. Of these new commitments, 26 were sponsored transactions. As of December 31, 2012, 95 separate private equity sponsors were represented in Ares Capital’s portfolio. Of the $1,062.8 million in new commitments made during the fourth quarter of 2012, approximately 50% were in first lien senior secured debt, 9% were in subordinated certificates of the SSLP (the proceeds of which were applied to co-investments with GE to fund first lien senior secured loans through the SSLP), 34% were in second lien senior secured debt and 7% were in other equity securities. Of these commitments, 87% were in floating rate debt securities, 90% of which contained interest rate floors and the remaining 10% were in the subordinated certificates of the SSLP, the proceeds of which were applied to co-investments with GE to fund floating rate first lien senior secured loans through the SSLP, all of which contained interest rate floors. We may seek to syndicate a portion of these new investment commitments, although there can be no assurance that we will be able to do so.
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