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Garrison Capital Inc. Announces Certain Preliminary Estimates for the Second Quarter Ended June 30, 2014

July 16, 2014

NEW YORK--(BUSINESS WIRE)-- Garrison Capital Inc., a business development company (the “Company”) (NASDAQ:GARS), today announced certain preliminary estimates for the quarter ended June 30, 2014.

Set forth below are certain preliminary estimates of our financial condition and results of operations for the three months ended June 30, 2014. These estimates are subject to the completion of our financial closing procedures and are not a comprehensive statement of our financial results for the three months ended June 30, 2014. We advise you that our actual results may differ materially from these estimates as a result of the completion of our financial closing procedures, final adjustments and other developments arising between now and the time that our financial results for the three months ended June 30, 2014 are finalized.

We estimate our net investment income to have totaled between $0.32 and $0.37 per share for the three months ended June 30, 2014. We estimate our net income per share to have totaled between $0.51 and $0.56 per share for the three months ended June 30, 2014.

Our net asset value as of June 30, 2014 is estimated to have been between $15.61 and $15.66 per share.

As of June 30, 2014, we had $225.4 million of aggregate debt outstanding under the Garrison Funding 2013-2 $350 million collateralized loan credit facility and the GLC Trust 2013-2 revolving credit facility.

For the three months ended June 30, 2014, we originated one new investment, two club deals and six purchased deals, upsized two of our existing originated investments and closed additional consumer loan purchases for a total increase to par in our core portfolio of $104.1 million with a weighted average yield of 12.8%. For the three months ended June 30, 2014, repayments in our core portfolio, which we define as those investments that generally yield 9.0% or greater, consisted of the early full repayment of six investments and partial repayments for a total of $61.4 million of par with a weighted average yield of 12.3%.

For the three months ended June 30, 2014, repayments in our transitory portfolio, which we define as those investments that generally yield less than 9.0%, consisted of the sale of eight investments, the early full repayment of five investments and partial repayments for a total of $78.3 million of par with a weighted average yield of 8.4%. For the three months ended June 30, 2014, we purchased one new investment and added on to three of our investments for a total of $12.5 million of par with a weighted average yield of 7.2%.

Refer to the table below for Summary of Investment Activity for the three months ended June 30, 2014.

               
In millions

 

 

 

 

Core Portfolio

As of

March 31, 2014

   

Originated / Purchased

in Q2 2014

   

Repayments / Sales

in Q2 2014 (1)

   

As of

June 30, 2014

Total Par value (2)$322.2$104.1 ($61.4) $364.9
 
Number of Portfolio Companies (3)(6)(8)(9) 38 12 (6) 44
 
Average Investment Size (7)$8.5$4.7 ($8.2) $8.3
 
Weighted Average Yield (4)(5)(6) 11.0% 12.8% 12.3% 10.9%
 
Transitory Portfolio

As of

March 31, 2014

   

Purchased

in Q2 2014

   

Repayments / Sales

in Q2 2014 (1)

   

As of

June 30, 2014

Total Par value (2)$136.9$12.5 ($78.3) $71.1
 
Number of Portfolio Companies (3)(6)(9) 33 1 (16) 18
 
Average Investment Size (7)$4.1$5.0 ($4.6) $3.9
 
Weighted Average Yield (4)(5) 7.7% 7.2% 8.4% 7.5%
 
Total Portfolio

As of

March 31, 2014

   

Originated / Purchased

in Q2 2014

   

Repayments / Sales

in Q2 2014 (1)

   

As of

June 30, 2014

Total Par value $459.2$116.6 ($139.8) $436.0
 
Number of Portfolio Companies (3)(6)(8)(9) 71 13 (22) 62
 
Average Investment Size (7)$6.5$4.7 ($5.6) $7.0
 
Weighted Average Yield (4)(5)(6) 10.0% 12.2% 10.1% 10.4%
 

(1)

    Change in total par value includes partial principal repayments

(2)

Includes only funded portion of par for unfunded revolvers

(3)

Excludes add-on investments with existing portfolio companies

(4)

Excludes investments with a risk rating of 4, unfunded revolvers and equity investments

(5)

Activity during the quarter does not reflect changes in market yields on existing positions or partial principal repayments

(6)

Excludes same day purchases/sales

(7)

Average investment size on activity for new portfolio companies and full paydowns or sales

(8)

The GLC Trust 2013-2 Consumer Loan Portfolio, which holds a portfolio of small balance consumer loans, is counted as one portfolio company

(9)

Includes the transfer of three portfolio companies, total par of $13.2 million, from Transitory to Core, based on the current yield.
 


We intend to announce final results of operations for the three months ended June 30, 2014 on August 6, 2014 after the close of the financial markets.

The preliminary financial data included herein have been prepared by, and is the responsibility of, management. Neither McGladrey LLP, our independent registered public accounting firm, nor any other independent accountants has reviewed, audited complied, or performed any procedures with respect to these preliminary estimates. Accordingly, McGladrey LLP does not express an opinion or any other form of assurance with respect to these preliminary estimates and assumes no responsibility for, and disclaims any association with, this information.

ABOUT GARRISON CAPITAL INC.

Garrison Capital Inc. is a business development company that primarily invests in loans to U.S. based middle-market companies. The Company’s investment activities are managed by its investment adviser, Garrison Capital Advisers LLC, an affiliate of Garrison Investment Group LP (“Garrison Investment Group”). For more information, go to http://www.garrisoncapitalbdc.com.

ABOUT GARRISON INVESTMENT GROUP

Garrison Investment Group is an alternative investment and asset management firm founded in March 2007 by Steven Stuart and Joseph Tansey. Garrison Investment Group invests opportunistically in the debt of middle-market companies, primarily in the areas of corporate finance, real estate finance and structured finance. For more information, go to http://www.garrisoninv.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.




Garrison Capital Inc.

Brian Chase, 212-372-9590

www.garrisoncapitalbdc.com

Source: Garrison Capital Inc.


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