Realized and unrealized gain (loss) on interest rate derivative
For the three months ended Dec. 31, 2012, THL Credit's interest rate derivative agreement, which was entered into on May 10, 2012, had unrealized appreciation of $0.06 million, which was due to capital markets changes impacting interest rate swap spreads. THL Credit also recognized a realized loss related to amounts paid on the interest rate derivate of $0.1 million.
For the year ended Dec. 31, 2012, THL Credit's interest rate derivative agreement had unrealized depreciation of $1.1 million, which was due to capital markets changes impacting interest rate swap spreads. THL Credit also realized a loss related to amounts paid on the interest rate derivate of $0.2 million.
Net increase in net assets resulting from operationsNet increase in net assets resulting from operations totaled $9.8 million and $7.1 million, or $0.37 and $0.35 per share, respectively, for the three months ended Dec. 31, 2012 and 2011, respectively. Net increase in net assets resulting from operations totaled $27.6 million and $24.1 million, or $1.26 and $1.20 per share, respectively, for the years ended Dec. 31, 2012 and 2011, respectively. This increase in net assets from operations is due to the continued growth in net investment income, which is a result of growing the portfolio, along with an increase in prepayment premiums. FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES As of Dec. 31, 2012, THL Credit had cash of $4.8 million. THL Credit's liquidity and capital resources are derived from its revolving credit facility, term loan facility and cash flows from operations, including investment sales and repayments, and income earned. Its primary use of funds from operations includes making investments in portfolio companies, payment of dividends to stockholders and funding operating expenses it incurs. THL Credit used, and expects to continue to use, these capital resources, together with proceeds from the turnover within the portfolio and from future public and private offerings of securities to finance its investment objectives.
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