BlackRock Capital Investment Corporation Declares Regular Quarterly Distribution Of $0.21 Per Share, Announces September 30, 2016 Quarterly Financial Results
BlackRock Capital Investment Corporation (NASDAQ:BKCC) ("BlackRock Capital Investment Corporation" or the "Company," "we," "us" or "our") announced today that its Board of Directors declared a quarterly distribution of $0.
BlackRock Capital Investment Corporation (NASDAQ:BKCC) ("BlackRock Capital Investment Corporation" or the "Company," "we," "us" or "our") announced today that its Board of Directors declared a quarterly distribution of $0.21 per share, payable on January 2, 2017 to stockholders of record as of December 19, 2016. "The third quarter proved to be another difficult period for the Company as we continue to work through issues pertaining to the legacy portfolio, including the previously disclosed pending settlement of the AL Solutions litigation. To be clear, the Company's portfolio challenges remain concentrated in legacy investments. Since March 6, 2015, which is when we assumed responsibility for managing the investment activities of the Company, our team has deployed over $400 million in performing new investments," commented Steven F. Sterling, Chairman and CEO of BlackRock Capital Investment Corporation. "The Company's financial position with moderate net leverage at .55x and good liquidity at $253 million continues to afford us the flexibility to navigate the challenges and to execute on the deployment of new capital. That said, there remain lumpy positions requiring special attention that will constrain our pace of capital deployment. Further, general market conditions have become less compelling for junior debt investments, thus 70% of our deployment during the quarter was centered on investments in BCIC Senior Loan Partners, which was formed during 2Q, and our portfolio company Gordon Brothers Finance Company wherein the risk-adjusted return in the underlying first lien exposure is more attractive. "From an idea generation perspective, we saw a 65% increase, sequentially, in investment opportunities. This included a rise in ideas referred to us by BlackRock's Global Capital Markets team. On an annualized basis through the third quarter, the team's idea generation is the highest observed over the last 5 years. This momentum continued into the fourth quarter. However, overall deal quality has diminished as evidenced by the recent notable rise in dividend recapitalizations and covenant lite transactions."