BlackRock Kelso Capital Corporation Generates Net Investment Income Adjusted For Pro-Forma Incentive Management Fees Of $0.27 Per Share And $1.08 Per Share For The Three Months And Year Ended December 31, 2012
Net Increase in Net Assets from Operations
For the three months and year ended December 31, 2012, the net increase in net assets from operations was $1.7 million and $57.4 million, or $0.02 per share and $0.78 per share, respectively, compared to $7.0 million and $76.9 million, or $0.10 per share and $1.05 per share, for the three months and year ended December 31, 2011. As compared to the prior period, we continue to experience our historically reduced fourth quarter increase for two reasons. While we are earning a relatively stable net investment income, our current period increase in net assets was largely impacted by the fourth quarter concentration of our trailing four-fiscal quarter incentive management fees of $14.8 million. Also contributing to the usually large offset was our GAAP accrual of hypothetical capital gains incentive management fees of $2.5 million. Our net asset value per share for the years ending 2012 and 2011 was $9.31 and $9.58, respectively. Removing incentive management fees for the current year, our December 31 st net asset value per share stands relatively consistent with the prior three quarters at $9.61.
Liquidity and Capital Resources
At December 31, 2012, we had approximately $9.1 million in cash and cash equivalents, $346.9 million in debt outstanding and, subject to leverage and borrowing base restrictions, $203.1 million available for use under our senior secured, multi-currency credit facility, which matures in December 2013. Relative to our $1.1 billion dollar portfolio at fair value, we continue to have sufficient debt capacity to grow our business. At December 31, 2012, we were in compliance with regulatory coverage requirements with an asset coverage ratio of 295% and were in compliance with all financial covenants under our debt agreements. Cash provided by (used in) operating activities for the years ended December 31, 2012 and 2011 was $68.3 million and ($87.1) million, respectively. In the near term, we expect to meet our liquidity needs through periodic add-on equity and debt offerings, use of the remaining availability under our credit facility and continued cash flows from operations. The primary use of funds will be investments in portfolio companies, reductions in debt outstanding and other general corporate purposes.
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