The increase in our total investment income for the quarter ended June 30, 2012 as compared to the quarter ended June 30, 2011 was primarily attributable to a higher average level of outstanding debt investments, which was principally due to a net increase of 10 debt investments in our portfolio and fee income related to debt payoffs, partially offset by amortization payments received and a decrease in the weighted average yield on our debt investments from 12.64% to 12.13% during the year-over-year period.

Expenses for the quarters ended June 30, 2012 and June 30, 2011 were $19.3 million and $15.9 million, respectively. Expenses increased during the quarter ended June 30, 2012 as compared to the quarter ended June 30, 2011 primarily due to increases in the base management fee, the incentive fee and interest expense.

Liquidity and Capital Resources

As of June 30, 2012, we had $105.7 million in cash and cash equivalents, portfolio investments (at fair value) of $1.20 billion, $5.9 million of interest and fees receivable, $150.0 million of SBA debentures payable, $228.5 million of borrowings outstanding under our credit facilities, $115.0 million of convertible senior notes payable and unfunded commitments of $96.0 million.

As of September 30, 2011, we had $67.6 million in cash and cash equivalents, portfolio investments (at fair value) of $1.12 billion, $6.8 million of interest and fees receivable, $150.0 million of SBA debentures payable, $178.0 million of borrowings outstanding under our credit facilities, $135.0 million of convertible senior notes payable and unfunded commitments of $108.8 million.

Calendar Year 2012 Dividends

For calendar year 2012, our Board of Directors has declared monthly dividends as follows:
  • $0.0958 per share, which was paid on January 31, 2012 to stockholders of record on January 13, 2012;
  • $0.0958 per share, which was paid on February 29, 2012 to stockholders of record on February 15, 2012;
  • $0.0958 per share, which was paid on March 30, 2012 to stockholders of record on March 15, 2012;
  • $0.0958 per share, which was paid on April 30, 2012 to stockholders of record on April 13, 2012;
  • $0.0958 per share, which was paid on May 31, 2012 to stockholders of record on May 15, 2012;
  • $0.0958 per share, which was paid on June 29, 2012 to stockholders of record on June 15, 2012;
  • $0.0958 per share, which was paid on July 31, 2012 to stockholders of record on July 13, 2012;
  • $0.0958 per share, payable on August 31, 2012 to stockholders of record on August 15, 2012;
  • $0.0958 per share, payable on September 28, 2012 to stockholders of record on September 14, 2012;
  • $0.0958 per share, payable on October 31, 2012 to stockholders of record on October 15, 2012;
  • $0.0958 per share, payable on November 30, 2012 to stockholders of record on November 15, 2012; and
  • $0.0958 per share, payable on December 28, 2012 to stockholders of record on December 14, 2012.

Dividends are paid primarily from distributable (taxable) income. Our Board of Directors determines dividends based on estimates of distributable (taxable) income, which differs from book income due to temporary and permanent differences in income and expense recognition and changes in unrealized appreciation and depreciation on investments.

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