BOSTON, Nov. 9, 2010 (GLOBE NEWSWIRE) -- THL Credit, Inc. (Nasdaq:TCRD) ("THL Credit"), a middle market capital specialist, today announced financial results for its fiscal third quarter ended Sept. 30, 2010. Additionally, THL Credit announced that its Board of Directors has declared a quarterly dividend of $0.10 per share, payable on Dec. 28, 2010, to stockholders of record as of Nov. 30, 2010.
|As of Sept. 30, 2010||As of June 30, 2010|
|Total assets||$267.0 million||$259.7 million|
|Investment portfolio, at fair value||$105.7 million||$84.8 million|
|Net assets||$259.9 million||$257.4 million|
|Net asset value per share||$13.10||$13.01|
|Post-IPO portfolio activity|
|Net investments made during the quarter, at par||$19.8 million||$22.5 million|
|Total investment income||$4.08 million||$2.44 million|
|Net investment income||$1.86 million||$0.73 million|
|Net increase in net assets from operations||$2.92 million||$0.84 million|
|Net investment income per share||$0.09||$0.04|
|As of Nov. 4, 2010||As of Aug. 5, 2010|
As of Sept. 30, 2010, the portfolio's investments at fair value were allocated 63 percent in subordinated debt, 21 percent in senior secured debt, 12 percent in income-producing equity interests and 4 percent in equity. The weighted average yield of the debt and income producing equity securities in its portfolio at their current cost basis was 17.6 percent. The weighted average yield on its senior secured loans and subordinated debt securities at their current cost basis was 16.5 percent.Results of Operations Total investment income for the third quarter was $4.08 million, of which $3.15 million was attributable to interest and fees on subordinated debt and senior secured loans, $0.80 million was attributable to interest from income-producing equity interests and $0.13 million was derived from interest on cash and cash equivalents. Operating expenses for the quarter totaled $2.22 million. Base management fees were $0.97 million with administrator and other expenses of $1.25 million. There was no incentive fee incurred during the quarter. THL Credit had net investment income of $1.86 million, or $0.09 per share based on a weighted average of 19,792,370 shares for the quarter ended Sept. 30, 2010. THL Credit's investments had $1.05 million of estimated net unrealized appreciation for the quarter ended Sept. 30, 2010. Net Increase in Net Assets from Operations THL Credit had a net increase in net assets resulting from operations of $2.92 million for the third quarter, or $0.15 per share, based on a weighted-average of 19,792,370 shares. Financial Condition, Liquidity and Capital Resources As of Sept. 30, 2010, the company had $160.9 million in cash and cash equivalents. It generated cash primarily from cash flows from operations, including interest earned and fees received on subordinated debt, senior secured loans and other income-producing equity securities. In the future, the company may also fund a portion of its investments through borrowing from banks and future equity offerings. It does not expect to incur such debt until the net proceeds of its initial public offering have been substantially invested.
"Given what we expect to be an active investment pace in the coming quarters, we anticipate having a leverage facility in place for use in the first quarter of 2011," said Terrence W. Olson, chief operating officer and chief financial officer of THL Credit. "In addition, we recently submitted our SBIC Management Assessment Questionnaire to the SBA. An SBIC license would provide access to long-term low cost capital to expand our investing activities."Business Outlook Many middle market companies have waited for clear economic signals before borrowing. At the same time, their owners are sensitive to the prospect that taxes on capital gains may increase in 2011. If economic conditions remain stable, these two catalysts could release a backlog and result in increasing demand for THL Credit's product. THL Credit has started to see some signs of this in recent months and is well positioned to capitalize on this in the fourth quarter and early 2011. Year to date, the Company's origination platform has allowed it to identify over 600 transactions from its pool of more than 300 deal sources, and continues to drive a high-quality pipeline of investment opportunities. While the exact timing of closings can be difficult to predict, $40 to $60 million of closings per quarter is a reasonable expectation as the Company continues to deploy capital raised in its initial public offering. "We are confident that our origination efforts and our prudent investment approach will result in a continued portfolio ramp that will drive strong returns and deliver dividend growth to our stockholders," said Mr. Hunt. Conference Call The company will host a conference call to discuss these results on Nov. 10, 2010, at 1 p.m. Eastern Standard Time. The conference call will be led by James K. Hunt, chief executive officer, and Terrence W. Olson, chief operating officer and chief financial officer.
For those wishing to participate by telephone, dial (877) 375-9141 (domestic) or (253) 237-1151 (international) and use the passcode 16280544. The company will also broadcast the conference call live via its Website at www.thlcredit.com . A replay will be available through Nov. 24, 2010, via the company's Website starting approximately two hours after the conclusion of the call.About THL Credit THL Credit is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company (BDC) under the Investment Company Act of 1940. THL Credit's investment objective is to generate both current income and capital appreciation, primarily through investments in privately negotiated debt and equity securities of middle market companies. THL Credit invests primarily in private subordinated debt, or mezzanine debt, in middle market companies with annual revenues of between $25 million and $500 million that require capital for growth and acquisitions. Such investments in many cases include an associated equity component such as warrants, preferred stock or other similar securities. THL Credit's investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940. Forward-Looking Statements Statements made in this press release may constitute forward-looking statements within the meaning of the Securities Act of 1933, as amended, and subject to the Safe Harbor Provision of the Private Securities Litigation Reform Act of 1995. Such statements reflect various assumptions by THL Credit concerning anticipated results and are not guarantees of future performance. The accuracy of such statements involves known and unknown risks, uncertainties and other factors that, in some ways, are beyond management's control, including the factors described from time to time in filings by THL Credit with the Securities and Exchange Commission. THL Credit undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.
CONTACT: THL Credit, Inc. Investor Contact: Terrence W. Olson, COO & CFO 800-450-4424 Sard Verbinnen & Co Media Contact: Michael Henson 212-687-8080