Fiscal Year to Date Operating Results:
Net investment income: $232.83 million
Net investment income per share: $1.20
Net increase in net assets resulting from operations: $138.17 million
Net increase in net assets per share resulting from operations: $0.71
Dividends to shareholders per share: $0.948275
Third Quarter and Fiscal Year to Date Portfolio and Investment Activity:
Portfolio investments in quarter: $784.40 million
Portfolio investments during the nine months ended March 31, 2013: $2.304 billion
Total Portfolio investments at cost at March 31, 2013: $3.795 billion
Total portfolio investments at fair value at March 31, 2013: $3.708 billion
Number of portfolio companies at March 31, 2013: 120
PORTFOLIO AND INVESTMENT ACTIVITY
Our origination efforts during the March 2013 quarter prioritized secured lending, with an emphasis on senior loans, although we also seek to close selected subordinated debt and equity investments. Our diversified approach includes multiple business segments, including agented sponsor finance, club and syndicated finance, agented direct lending, structured credit, real estate yield, and controlled debt and equity investments. With our scale team of more than 75 professionals, one of the largest dedicated middle-market credit groups in the industry, we believe we are well positioned to select in a disciplined manner a small number of investments out of thousands of investment opportunities sourced annually.
Our portfolio's annualized current yield stood at 13.9% across all performing interest bearing investments as of March 31, 2013. Distributions from equity positions that we hold are not included in this yield calculation. In many of our portfolio companies, we hold equity positions, ranging from minority interests to majority stakes, which we expect over time to contribute to our investment returns.
At March 31, 2013, our portfolio consisted of 120 long-term investments with a fair value of $3.708 billion, a record total, compared to 85 long-term investments with a fair value of $2.094 billion at June 30, 2012.
During the March 2013 quarter, we completed 23 new and follow-on investments aggregating a record $784.4 million (approximately five times our origination dollar volume in the prior year March 2012 quarter), sold four investments, and received repayment on one other investment. Our repayments in the March 2013 quarter were $102.5 million, resulting in investments net of repayments of $681.9 million.
Broadly diversified across our lines of business, our originations in the March 2013 quarter were weighted toward the last month of the quarter, resulting in only a partial quarter positive income impact from such originations. We expect such originations to generate full-quarter positive impact in the current June 2013 quarter.
The majority of our portfolio consists of agented middle-market loans that we have originated, structured, selected, and closed. In general, we perceive the risk-adjusted reward in the current environment to be superior for agented and self-originated opportunities compared to the syndicated market, causing us to prioritize our proactive sourcing efforts.
•On January 11, 2013, we provided $27.1 million of debt financing to Correctional Healthcare Holding Company, Inc., a national provider of correctional medical and behavioral healthcare solutions. •On January 17, 2013, we made a $30.3 million follow-on investment in APH Property Holdings, LLC ("APH"), to acquire 5100 Live Oaks Blvd, LLC, a multi-family residential property located in Tampa, Florida. We invested $2.7 million of equity and $27.6 million of debt in APH. •On January 24, 2013, we made an investment of $24.9 million to purchase subordinated notes in Cent 17 CLO Limited. •On January 24, 2013, we made an investment of $26.9 million to purchase subordinated notes in Octagon Investment Partners XV, Ltd. •On January 29, 2013 we provided $8.0 million of secured second lien financing to TGG Medical Transitory, Inc., a developer of technologies for extracorporeal photopheresis treatments. •On January 31, 2013, we funded the acquisition of the subsidiaries of Nationwide Acceptance Holdings, LLC, an auto finance business, with $25.2 million of combined debt and equity financing. •On February 5, 2013, we received a distribution of $3.3 million related to our investment in NRG Manufacturing, Inc., for which we realized a gain of the same amount. •On February 5, 2013, we made a secured debt investment of $2.0 million in Healogics, Inc., a provider of outpatient wound care management services. •On February 13, 2013, we made an investment of $35.0 million to purchase subordinated notes in Galaxy XV CLO, Ltd. •On February 14, 2013, we made a $2.0 million secured first-lien debt investment in J.G. Wentworth, LLC, the largest purchaser of structured settlement and annuity payments in the United States. •On February 14, 2013, we provided $15.0 million of senior secured financing to Speedy Group Holdings Corp., a leading provider of short-term loans and financial services in the United States, United Kingdom, and Canada. •On February 15, 2013, we made a $6.0 million secured second-lien debt investment in SESAC Holdco II LLC, a performing rights organization based in Nashville, Tennessee. •On February 21, 2013, we provided $39.6 million of senior secured first-lien financing to Atlantis Healthcare Group (Puerto Rico), Inc., a leading owner and operator of dialysis stations. •On February 25, 2013, we made a $10.0 million secured second-lien loan and a $2.0 million secured first-lien loan to Transaction Networks Services, Inc., an international data communications company that provides networking, data communications, and other value added services. On the same day we sold the $2.0 million secured first-lien debt instrument and realized a gain of $20,000 on this investment. •On March 1, 2013, we made a $70.0 million secured term loan investment in a subsidiary of Cinedigm DC Holdings, LLC, the leading provider of digital cinema services, software, and content marketing and distribution. •On March 6, 2013, we made a $5.0 million follow-on investment in Rocket Software, Inc. •On March 7, 2013, we made a secured second-lien follow-on investment of $60.0 million in United Sporting Companies, Inc. •On March 8, 2013, we made an investment of $40.4 million to purchase subordinated notes in Halcyon Loan Advisors Funding 2013-I Ltd. •On March 12, 2013, we provided $12.0 million of secured second-lien financing to ALG USA Holdings, LLC, a vertically integrated travel company that focuses on providing all-inclusive vacations in Mexico and the Caribbean to the U.S. customer. •On March 15, 2013, we made an investment of $44.1 million to purchase subordinated notes in Apidos CLO XII, Ltd. •On March 18, 2013, we sold our $2.0 million investment in J.G. Wentworth and realized a gain of $75,000 on this investment. •On March 18, 2013, we provided a $197.3 million first-lien senior secured credit facility to support the refinancing of Capstone Logistics, LLC, a logistics services portfolio company. After the financing, we received repayment of the $30.7 million and $38.4 million loans previously outstanding. •On March 27, 2013, we provided $100.0 million of senior secured debt financing to support the recapitalization of Broder Bros., Co., a leading distributor of imprintable sportswear and accessories in the United States. •On March 28, 2013, we sold our investment in New Meatco Provisions, LLC for net proceeds of approximately $2.0 million, recognizing a realized loss of $10.8 million on the sale. •On March 29, 2013, we received net proceeds of $1.3 million for the partial sale of our equity investment in Caleel + Hayden, LLC, realizing a gain of $900,000 on the sale.
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