The distribution is payable on August 23rd to shareholders of record as of August 9th. Our net income for the second quarter was $71 million or $0.39 per diluted common share, reflecting a 16% return on equity. Our book value per share as of June 30th was $9.79, effectively flat from $9.81 at March 31st.

Looking at run rate cash earnings, we generated $0.32 per common share in second quarter, up from $0.26 in the first quarter. This implies a 13% cash ROE for the quarter. If you normalize for semi-annual coupon payment son our convertible notes, which reduce our first and third quarter cash earnings, we generated $0.30 per common share in Q2 compared to $0.29 per common share in Q1.

On the capital deployment front, we invested about $54 million to acquire $84 million of working interest in oil and gas properties. The $30 million difference was financed to our non-recourse natural resources credit facility.

In addition, we deployed $30 million to our royalties joint venture with Chesapeake Energy, which is discussed on Page 13 of our supplemental presentation.

Together, these bring aggregate capital deployment on our natural resources strategy to $84 million for the quarter.

We also deployed or committed to deploy about $40 million to our special situation strategy this quarter, which consisted primarily of investments in distressed European companies. Net of $25 million in realizations, our Q2 capital deployment to special situations is approximately $15 million.

We continued to source incremental investment capital by selling rated (trenches) we hold in our CLO subsidiaries. During the second quarter, we sold $18 million paramount of Class D notes from CLO 2007-1 resulting in net proceeds of $13 million.

In addition, we sold another $18 million paramount of these notes this week, generating an additional $14 million of proceeds. In total, we have generated nearly $60 million of cash proceeds this year by divesting these bonds, which have a stated cash coupon of LIBOR plus 2.25%, so effectively less than a 3% cash cost to the company.

Through these sales, we were able to extract lower yielding capital held in these CLOs and redeploy it to higher yielding opportunities elsewhere.

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