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Note 1: MCGC has suspended its dividend for the second half of 08. I cut the first two dividends in half and show a continued dividend believing that such treatment might show a good forward div run rate - but that point is debatable. If MCGC returns to making divs in 2009, then I believe such treatment is justified. If MCGC fails to have divs in 2009 - then this treatment is unwarranted. Note 2: MVC's and PSEC's Q2 results are to be released the 2nd week of Sept - their Q2 NAVs are really Q1 NAVs Note 3: Dividend coverage ratios were added in an updated spreadsheet on 8-17 ACAS Reports NOI of $0.71/share vs. Div of $1.03/share PRNewswire 8-05 American Capital reported Q2-08 NOI of $145 million [$0.71/share] compared with $153 million [$0.91/share] for Q2-07. Realized Earnings decreased 33% to $0.95/share compared to $1.42/share for Q2-07. Realized Earnings return on equity at cost for LTM was 13%. Realized Earnings per basic share covered 92% of the Q2-08 dividend. ACAS had a net loss of $0.34/share compared with earnings of $4.68/share in Q2-07 - with the loss being driven by $264 million of net unrealized depreciation, offset by $49 million of net realized gains. The net asset value per share as of June 30, 2008 was $27.01. The weighted average effective interest rate on debt investments was 11.2%. Loans on Non-Accrual at face value were $481 million while Non-Accruals at fair value were $116 million. Past Due Loans at face value were $42 million. Past Due and Non-Accrual Loans at face as a percentage of total loans were 8.6% of the portfolio. Non-Accrual Loans at fair value as a percentage of total loans was 2.1%. The number of portfolio companies on non-accrual and past due were 24. The overall portfolio has experienced EBITDA declines on average, but when the results are weighted by the fair value of our investments, EBITDA is growing year over year. AINV Reports NII of $0.35/share vs. Div of $0.52/share Market Wire 8-06 Apollo Investment Corporation reported Q2-08 Net investment income of $46.313 million [$0.35/share], Net realized gains (losses): ($29.818 million) [- $0.42/share]; Net change in unrealized appreciation of $55.345 million [$0.42/share]; resulting in a Net increase in net assets from operations of $71.840 million [$0.55/share]. The Net Asset Value per share was $15.93. AINV's net portfolio consisted of 74 portfolio companies and was invested 23% in senior secured loans at an average 9.7% yield, 54% in subordinated debt at an average 12.9% yield, 7% in preferred equity and 16% in common equity and warrants. The weighted average yields on AINV's total debt portfolio at the current cost basis was 12.0%. At June 30, 2008, 60% or $1.7 billion of the interest-bearing investment portfolio was fixed rate debt and 40% or $1.1 billion was floating rate debt. No credit metrics were reported in earnings release or 10-Q. From the Conference Call: AINV has investments in 74 companies in portfolio. The EBITDA trends continued to increase overall during the quarter. Most of companies in the portfolio have more than matched top line problems with being aggressive about cutting costs. And most companies in which AINV invests are market leaders and are taking market share. The portfolio companies had cash interest coverage over 2x. AINV had no new loans on non-accrual, with only Lexicon on non-accrual. The Lexicon loans has been written down to zero, implying a zero percentage of non-accruals at fair value. ALD Reports NII of $0.37/share vs. Div of $0.65/share Market Wire 8-05 Allied Capital Corporation reported Q2-08 Net investment income of $63.9 million [$0.37/share]. ALD had Net realized losses of $17.9 million [$0.10/share] and Net unrealized depreciation of $148.2 million [$0.86/share] resulting in a Net loss of $102.2 million [$0.59/share]. The Net asset value per share was $15.93. Grade 4 and Grade 5 assets were $77.9 million or 1.7% of the total portfolio at value at June 30, 2008, as compared to $113.0 million or 2.4% at March 31, 2008. Loans on non-accrual were $109.6 million or 2.4% of the total portfolio at value at June 30, 2008, as compared to $150.7 million or 3.3% of the total portfolio at value at March 31, 2008. Loans and debt securities over 90 days delinquent totaled $23.7 million or 0.5% of the total portfolio at value at June 30, 2008, as compared to $69.4 million or 1.5% of the total portfolio at value at March 31, 2008. ARCC Reports NII of $0.40/share vs. Div of $0.42/share Business Wire 8-07 Ares Capital Corporation reported Q2-08 Net investment income of $36.1 million or $0.40/share. Net unrealized losses were $32.8 million or $0.36/share, resulting in GAAP net income of $3.3 million or $0.04/share. The Weighted avg. yield of debt and income producing securities was 11.28% while the Weighted avg. cost of debt was 3.42%, resulting in a Weighted avg. investment spread of 7.86%. The portfolio consisted of 46.9% on investments at a Fixed Rate, 40.3% at a Floating Rate and 12.8% of investments that were Non-interest Earning. The Net Asset Value Per Share was $13.67. The Debt/Book Equity Ratio was .64x. At the end of the quarter, 2.9% of total investments at cost (or 1.3% at fair value) were on non-accrual status. BKCC Reports NII of $0.44/share vs. Div of $0.43/share Business Wire 8-07 BlackRock Kelso Capital Corporation reported Q2-08 Net investment income totaled $23.3 million or $0.44/share. Total net realized gains (losses) were ($1.5) million and unrealized depreciation was ($9.9) million resulting in the net change in net assets from operations of $11.9 million. At June 30, 2008, our net portfolio consisted of 64 portfolio companies and was invested 60% in senior secured loans, 31% in unsecured or subordinated debt securities, 5% in senior secured notes, 4% in equity investments and less than 1% in cash, cash equivalents and foreign currency. The weighted average yield on invested capital was 11.3%. The weighted average yields on senior secured loans was 10.3% and other debt securities was 12.8%. The Net Asset Value per share was $12.31. No credit metrics were reported in earnings release or 10-Q. From the Conference Call: BKCC's investment in AL Solutions [a producer of titanium and zirconium alloying products for the aluminum industry of New Cumberland, WV] continues to under-perform. BKCC is active in correcting this performance and is also active on its board of directors. As of 3-31-08 the investment was carried at $9.5 million. AL Solutions investment is now carried at 25% of its cost. And the end of the quarter, 1.5% [$18 million] of the BKCC portfolio is on non-accrual - and half of that is due to AL Solutions. GLAD Reports NII of $0.32/share vs. Div of $0.42/share Business Wire 8-04 Gladstone Capital Corp. reported Q2-08 Net Investment Income of $6.7 million [$0.32/share] as compared to $5.7 million [$0.42/share] for Q2-07. Net Increase in Net Assets Resulting from Operations was $2.8 million [$0.13/share] as compared to $6.0 million [$0.44/share] for Q2-07. Net asset value was $13.97/share. The annualized weighted average yield, excluding cash and cash equivalents, was 10.1%, as compared to 11.8% for Q2-07. The yield varies from period to period based LIBOR - and recent reductions in LIBOR reduced GLAD's income on approximately $75 million in senior syndicated loans. GLAD ranks their portfolio investment on a risk scale of 10-1 [with 10 being the lowest grade of risk]. For all non-syndicated loans in their portfolio [representing approximately 82% of all loans in their portfolio] the risk grade averaged 7.3 - with that being the equivalent of a Ba3 rated bond with a Probability of Default during the next ten years of 17.8%. At June 30, 2008 three investments were on non-accrual - with no dollar amount given on those. GAIN Reports NII of $0.15/share vs. Div of $0.24/share/quarter Business Wire 8-06 Gladstone Investment Corporation reported Q2-08 Net Investment Income of $3.1 million [$0.15/share] as compared to $2.9 million [$0.17/share] in Q2-07. The per share results were adversely impacted by the issuance of new shares while the proceeds of the offering were not fully invested in income producing investments for the entire quarter. The Net (Decrease) in Net Assets Resulting from Operations was -$4.5 million [- $0.22/share] compared to an increase of $8.3 million [$0.50/share] for Q2-07. Net unrealized depreciation on investments was $5.8 million. The aggregate par value of GAIN's investment portfolio depreciated during the quarter by approximately 1.8%. The annualized weighted average yield on the portfolio of investments, excluding cash and cash equivalents, was 7.8% compared to 9.1% for Q2-07. GLAD has approximately $138 million in syndicated loans that have their interest rate set based on LIBOR [out of Total assets of $367.9 million] and that rate has decreased since Q2-07. The Net asset value was $10.77/share. At June 30, 2008, one Non-Control/Non-Affiliate investment was on non-accrual with a cost basis of approximately $2.9 million and one Control investment was one non-accrual with a cost basis of approximately $6.9 million, or an aggregate of 2.9% of the cost basis of all loans in our portfolio. With assets of $367.901 million, non-accruals were 2.66% of assets. With total loans of $320.299 million, non-accruals were 3.05% of loans. From the Conference Call: During Q2 there was one foreclosure on a syndicated resulting in a write-off for which some recovery may be forthcoming. GAIN plans to exit syndicated loans [the higher cost of debt and equity has made the smaller margins on syndicated loans less appealing to GAIN] and focus only on buy-out deals. GAIN's portfolio is valued at 94% of costs. When EBITDAs slow, write downs happen. When EBITDAs rise, appreciation happens. One buyout is under-performing, but should not result in a loss. Small growth companies are still being purchased at high [8 times EBITDA] multiples. And those high multiples leads to demand for buy-out debt. GAIN does not have PIK income. There are lots of companies for sale - but just like in the housing market, prices have fallen and the sellers are not willing to accept those lower prices. Add to that the problem that banks are not lending. Approx 200,000 small companies get sold every year. Pricing for GAINs credit line will be going up to as high as 250 bps over LIBOR. GAIN does not expect to have a problem getting as much of an amount of line as they want - but is concerned about the pricing going forward. Question: NAV dropped $1.70 during the quarter - how much due to wrights offering? GAIN: $1.25/share. Question: Why aren't you buying back shares instead of selling wrights? GAIN: Our bankers would not want us using our line of credit to buy back shares. GAIN anticipates 20% - 30% profits on buy-outs - that is not the return going in - but on the capital gains GAIN can receive at close-outs. Question: How many shares are short? GAIN: It is hard to tell from NASDAQ's numbers. HCD Reports NII of $0.23/share vs. Div of $0.26/share Business Wire 8-08 Highland Distressed Opportunities reported Q2-08 Net investment income of $4.050 million or $0.23/share. Net realized and unrealized losses on investments were $17.433 million. HCD had a net decrease in stockholders’ equity resulting from operations of approximately $13.382 million. Net Asset Value per share was $7.24. At June 30, 2008, the weighted average cost yield of our portfolio investments, exclusive of cash and cash equivalents, was approximately 6.2%. HCD's portfolio investments as of 6-30-08, exclusive of cash and cash equivalents, consisted of approximately 68.1% in senior loans, 27.0% in corporate notes and bonds, 0.2% in claims and 4.7% in equity interests. HCD has established an opt out dividend reinvestment plan. A stockholder's cash distribution will be automatically reinvested in additional shares of HCD stock unless the stockholder specifically 'opts out' of the Plan and elects to receive cash distributions. No credit metrics were reported in earnings release or 10-Q. From the Conference Call The NOI during Q2-08 was up due to waiver of interest payment on incentive fees. Unlike other BDCs, HCD does not often originate debt - so it has more public pricing of its portfolio. HCD performs mark to market updates daily with the exception of four investments. On their web site, HCD publishes a fact sheet that contains the NAV range during the month. This information comes out 10 days after month end. HCD does not publish an end of the month NAV. The write-downs were large due to two loans from NPH mezzanine holdings [$14 million cost with a current value of zero]. NPH defaulted in Feb and borrowers are in negotiations with NPH. This one write-down had a $0.75/share effect on HCD. One analyst wanted to know about HDCs dividend policy in light of their low NII coverage of the dividend. HCD: Our board looks at gross income minus expenses and then looks at undistributed income balance. A second analyst noted that the undistributed net income was $1.65 million at the end of the quarter or equal to $0.09/share - and that was down from $0.19/share in December. So that analyst did not see the HCD could continue taking from the undistributed income balance to support the dividend. HCD did not have an answer to that observation which blew a big hole in their prior arguement concerning div sustainability. HCD noted that the current credit spreads imply a 12% default rate - and HCD does not see that high of a default rate happening. Given that portfolio holdings are marked to market based on those spreads, some recovery in prior markdowns or unrealized depreciation is possible. As of June 30, 2008, approximately 65.2% of the portfolio, exclusive of cash and cash equivalents, was invested in securities that paid floating rates and 29.9% were at fixed rates of interest. I could not find non-accruals, EBITDA trends, interest or fixed charge ratios, or net interest margins in the 10-Q or in data from the call. HTGC Reports NII of $0.30/share vs. Div of $0.34/share Business Wire 8-07 Hercules Technology Growth Capital reported Q2-08 Net investment income before taxes of $9.972 million [$0.30/share] compared to approximately $7.240 million [$.29/share] in Q2-07. The Net realized gain on investments was $1.909 million while the Net unrealized depreciation was $3.523 million resulting in a Net increase in net assets resulting from operations of $8.358 million [$0.26/share]. The effective yield on our debt investments during the quarter was 14.3%. The overall weighted average yield to maturity on the loan portfolio was higher at 12.67%. The Net asset value was $12.21/share. Grade 1 investments totaled $28.6 million [5.3% of the total portfolio] while Grade 2 were $451.5 million [82.8%]; Grade 3 were $55.0 million [10.1%]; Grade 4 were $9.9 million [1.8%]; and Grade 5 were zero. KCAP Reports NII of $0.38/share vs. Div of $0.41/share Prime Newswire 8-06 Kohlberg Capital reported Q2-08 Net investment income of $7.7 million [$0.38/share] compared to $5.3 million [$0.29/share] in Q2-07. Net unrealized losses totaled $466,000 reflecting $1.3 million in decreased trading value of middle market corporate loan and equity securities and its CLO Fund securities offset in part by an $824,000 increase in the market value of KCAP's wholly-owned asset management company, Katonah Debt Advisors. Senior Secured Loans were 42.7% of the portfolio while Junior Secured Loans were 24.8%. The weighted average yield on KCAP's loan and bond portfolio at June 30, 2008 was approximately 8.0%. The Net asset value per share was $13.14. No credit metrics were reported in earnings release or 10-Q. From the Conference Call: KCAP has 6 issuers on their watch list [5% of their portfolio] - and they do not see this list growing going forward. KCAP had non accrual loans migrate from one to two [1.4% of their portfolio]. When asked about EBITDA trends, KCAP replied that such a thing is hard to quantify given their diverse portfolio - but the vast majority continues to see positive trends - with some weakness or flatness in a minority - but no dramatic weakness. Why would your portfolio be doing better than average? KCAP: We are not heavily invested in cyclical companies. We have some concentration in health care and education. We stayed away from retail and restaurants - and they are seeing high declines. The manufacturing sector is doing very well among those with export exposure -and industrial companies is a high concentration. At the current price of 8.96/share, the NAV would need to fall $89 million to get NAV equal to the stock price - and that implies a 30% write off of portfolio. A 30% write-off would imply a default rate of 70% - with the current defaults at 1.4%. KCAP is seeking a 12% yield on new transactions. KCAP did not recognize any income from KDA in Q2-08. The recognition of that income will be lumpy - KCAP will need a higher undistributed balance at KDA to pay bonuses in January. Question: We do not see insider buying - but you say stock is a great buy - why? KCAP: There have not been open market buying - but management did buy in rights offering - several hundred thousand shares - we have a restricted window in which to buy. Question: PCAP past resolution to sell below NAV - and the stock got hammered. KCAP: A BDC has to balance dilution with sales below NAV with current high spreads being accretive. KCAP has a high level - more than 15% - level of management ownership - and that is a natural check on our selling stock below NAV and hurting the shareholders. MAIN Reports NII of $0.29/share vs. Div of $0.35/share Prime Newswire 8-11 Main Street Capital Corporation reported Q2-08 Net investment income of $2.6 million [$0.29/share]. Cash dividend income was significantly higher than original projections due to several portfolio companies increasing their level of dividend payments. However, interest earned on idle funds investments was lower due to significant reductions in the market rates for short-term investments. Total operating expenses decreased 27% compared with Q2-07 due to the absence of $0.7 million of professional costs related to Main Street's IPO incurred during 2007. The Net increase in net assets from operations was $4.5 million [$0.50/share]. Approximately 84% of portfolio investments at cost were in the form of secured debt investments, and approximately 96% of the debt investments were secured by first priority liens on the assets of portfolio companies. The annual weighted average effective yield on the debt investments was 13.6% ['effective' yield includes fees and OIDs]. The Net Asset Value was $116.7 million or $13.02/share. MAIN projects that it will begin paying dividends on a monthly basis during Q4-08 in the range of $0.12 to $0.125/month, or in the range of $0.36 to $0.375/share/quarter. This change is being done to be a more attractive option to their core investor base. MAIN's portfolio companies had a weighted average net debt (interest-bearing debt less cash and cash equivalents) to EBITDA ratio of approximately 3.0 to 1.0 and a total EBITDA to interest expense ratio of approximately 2.7 to 1.0. MAIN had two investments [Carlton Global and Wicks] on non-accrual status representing less than 1% of its total investment portfolio fair value. From the Conference Call: Since the IPO MAIN has had an 114% coverage of the dividend by realized income and had 85% coverage from NII alone. MAIN intends to be be selective in choosing future investments, which may slow balance sheet growth and thus NII growth. Virtually all payments to MAIN is in cash and not PIK income. Cash and idle funds were one fourth of assets - and the lower yield on short term funds hurt NII by $0.03/share. MAIN believes that it has sufficient fund to provide liquidity without needing a secondary offer through 2008 and into early 2009. MAIN had $2.5 million of unrealized depreciation taken on three investments. During Q2-08 there was a $3 million of deferred tax assets transfered into a taxable subsidiary creating the tax benefit. SBIC leverage is excluded from the one to one leverage limitation for RICs. SBIC dollars were $55 million with an interest rate of 5.8% and had an average 6.9 years till maturity. Question: Your weighted average effective yield fell from 14.1% to 13.6% -was that due to moving to larger yields. MAIN: Our new transactions [OMi Holdings and Lambs Tire and Automotive Centers] had lower rate because it was more equity than debt - and the two pay-offs were higher than average yield investments. The Lamb's investment had an equity 80% component - so having a high yield you would be charging interest to yourself. In general, there is a trend that the higher the equity component, the lower the coupon. MCGC Reports NII of $0.18/share vs. Div of $0.45/share PRNewswire 8-06 MCG Capital Corporation reported Q2-08 net loss of $0.96/share compared with net income of $0.04/share in Q1-08. This decrease primarily resulted from the recognition of $82.4 million of net unrealized losses on the investment portfolio. Revenue was $31.1 million, which represents a 38% decrease from Q2-07. Net operating income decreased 54% to $13.0 million. MCGC is suspending dividend payments for the remainder of 2008. Total yield on average loan portfolio at fair value was 13.54%. Total cost of funds was 6.60%, resulting in a net interest margin of 10.39%. Net asset value at period end was $10.31/share. Period end debt to period end equity ratio was 84.77% [the share price has fallen over 50% this year]. Investment rating 1 [where a Capital gain is expected or realized] was $989.536 million or 69.1% of the total portfolio. Investment rating 2 [where Full return of principal and interest is expected] was $195.576 million or 13.7% of the total portfolio. Investment rating 3 [where full return is expected with supervision] was $219.230 million or 15.3% of the total portfolio. Investment rating 4 [where Some loss of interest is expected] was $11.713 million or 0.8% of the total portfolio. Investment rating 5 [where some loss of principal is expected] $15.029 million or 1.1% of the total portfolio. Net investment losses before income tax provision were $82.4 million, led by markdowns of $32.245 million in Cleartel Communications [where MCGC does not believe they will receive any recovery on their investment] and $32.202 million in Jet Plastica [where MCGC believes that they may recover part of this loss]. MIC Reports CAD of $0.65/share vs. Div of $0.65/share Business Wire 8-07 Macquarie Infrastructure Company [a BDC that owns companies] reported Q2-08 gross profit increased 43% to $108.1 million from $75.8 million in Q2-07. Gross profit, or revenue less costs of goods sold/sales, removes the volatility in revenue associated with expenses that are typically passed through to customers by infrastructure businesses. MIC's estimated Cash Available for Distribution increased to $29.3 million [$0.65/share] from the $24.3 million [$0.56/share] generated in Q2-07. NGPC Reports NII of $0.174/share vs. Div of $0.40/share PRNewswire 8-05 NGP Capital Resources Company reported Q2-08 net investment income of $3.759 million [divided by 21.628 million shares results in $0.174/share] compared with $4.511 million [divided by 17.500 million shares results in $0.258/share] in Q2-07. NGPC had a net increase in unrealized appreciation of $1.6 million. NGPC had a net increase in stockholders' equity (net assets) resulting from operations of $5.370 million [$0.24/share]. Net asset value per share was $14.08. The weighted average yield on targeted portfolio investments was 8.9% at June 30, 2008. From the Conference Call: The NII was $3.8 million, which was lower due to NGPC having placed Formidable on no accrual while it is pending the sale of its assets. NGPC also had a lower than run rate portfolio yield in Q2 due to [1] its investment in Formidable being placed on no accrual; and [2] a $33 million investment in ATP Limit-term Royalty which did not produce income during the quarter. In total NGPC had almost $70 million invested that did not add to yield. The yield will go back to historical levels quickly. The Q4-08 dividend will be announced in mid September. NGPC has a qualitative system for analyzing credit quality. For the 23 rated investments in 18 companies, the ratings at six have improved, for 13 stayed the same; and for 1 conditions declined. NGPC has six investments [$74 million] on their watch list due to slower processing of assets. NGPC has a seven tier credit quality ranking system: 1 investment at rank 1 with an investment of $1.5 million; 4 investments at rank 2 with an investment of $93.5 million; 4 investments at rank 3 with an investment of $54.9 million; 8 investments at rank 4 with an investment of $109.6 million; 3 investments at rank 5 with an investment of $55.8 million; 3 investments at rank 6 with an investment of $18.8 million; and no investments at rank 7. Greg Mason of Stiffel Nicholas asked why the investment in ATP is not accruing. NGPC: ATP is a royalty trust, so it does not accrue 'interest'. We do not recognize royalty income until received. ATP will initially generate in excess of $1 million per month. Greg: Will you receive 3 months in the quarter ending in August? NGPC: No - only 2 - there is a 60 day lag in payments. Greg: You stated that Formidable is on non-accrual - what is time frame for it changing? NGPC: They are working since late Q1 on selling their assets. There is a transaction that is acceptable to Formidable which the are currently working on finalizing - but there is no time table for the resolution. Greg: For ATP - you have an investment of $32.8 million. If that is generating $1 million per month, then your investment is generating a 36% rate of return? NGPC: You can not annualize early production from oil and gas properties - it declines over time. Greg asked about Greenleaf. NGPC: It is a small producer based in Houston with south Texas properties. It has operated a long time and is making 500 barrels a day. They are drilling new wells and things are going well. Vernon Plack with EPT Capital: What are your other non-accruals? NGPC: There are a couple of small investments in BSR Loco [$1.5 million] and two series of Cromo 6% preferred stocks [$4 million]. Investor: What is your portfolios percentage of investments in non-accrual? NGPC: 12% - with Formidable being the largest share at $37 million, and BSR carried at $1.7 million, and Cromo carried at $5 million. The update on NGPC's investment in Dean Lake. They did cap ex operations that were unsuccessful - they are looking for external investors to replace NGPC. NGPC did a convert on their loan and made it equity with a now controlling interest. NGPC projects good drilling opportunities that we can sell to someone else. They still have cash flow. When asked if their $13.4 million will be recovered, NGPC said yes. They are good assets with reserve potential. Update on Rubicon? NGPC: Rubicon has agreed to sell assets - working on finalizing - could announce in next few weeks. Investor: Do you report a net interest margin? NGPC: The NIM will be in our 10-Q. Investor: Is there a higher recovery rate on oil and gas properties that go on non-accrual status than there is compared to other BDCs? Your 12% non-accrual number scares the hell out of me. NGPC: To answer your questions, the 12% non-accruals do not sdcare the hell out of me - but you don't know me. There are high recovery rates because E&P assets are liquid vehicles in an active M&A space. Unlike a bank that has regulatory requirements to sell at a quick pace, we can take a more long term view - which aids in receiving higher dollar amounts on sales of properties that become foreclosed. PCAP Reports NII of $0.31/share vs. Div of $0.33/share Business Wire 8-05 Patriot Capital Funding reported Q2-08 Net Investment Income of $6,418,698 [$0.31/share]. Net unrealized depreciation was $3.4 million. A portion of this amount, approximately $217,000, resulted from quoted market prices on syndicated loan portfolio, and approximately $3.6 million resulted from a decline in cash flows of portfolio companies, both of which were partially offset by approximately $452,000 of unrealized appreciation. Net income was $3.7 million [$0.18/share]. Net asset value per share was $10.08. The weighted average yield on all of debt investments was 12.3%. As of June 30, 2008 $123.9 million of PCAP's portfolio investments at fair value were at fixed interest rates, which represented approximately 38% of total portfolio of investments. The distribution of our debt investments on the 1 to 5 investment rating scale at fair value was as follows: IR 1 investments [exceeding expectations] totaled $68.0 million (22.2% of the total portfolio); IR 2 investments [meeting expectations] totaled $162.2 million (53.0%); IR 3 investments [requires closer monitoring] totaled $62.8 million (20.5%); IR 4 investments [below expectations] totaled $9.3 million (3.0%); IR 5 investments [performing significantly below expectations where we expect a loss] totaled $3.9 million (1.3%). There were only three assets in the lowest two ratings. From the Conference Call: PCAP received repayments of $15.3 million from Cheeseworks and $10.7 million from Innovative Concepts in Entertainment. While this decreased NII during Q2-08, these were two of the lower yielding assets for PCAP. The weighted average balance of debt investments was $337.3 million - down from $360 million in Q1-08. NII was $6.4 million, down from $6.8 million in Q1-08 due to the smaller debt portfolio. During Q2, there were fewer quality investments to pursue, and PCAP was outbid for several deals. There are fewer player and less capital in the mezzanine market - but there is still too much capital facing too few deals leading to aggressive pricing. PCAP is pursuing the highest quality companies that it can find. PSEC is focused on credit quality. Fair value is more than 95% of investment costs - a testament to that focus. PCAP's watch list was under 25% of portfolio - and PCAP had only 1 non-accrual loan. The investment was not fully collateralized and PCAP had received $545,000 of income year to date from that company. [With total investment income of $21.2 million YTD, the non-accrual would represent 2.48% of income if the $545K represented payment in full. It is more likely that such investment was 90 days past due - so my guestimate is that the investment represented a pre-marked down amount of approx 5% of the portfolio.] Debt/equity ratio was .55x. PCAP would not find issuing equity below NAV as prudent, and has plenty of capital to deploy. PNNT Reports NII of $0.19/share vs. Div of $0.22/share Market Wire 8-05 PennantPark Investment Corporation reported Q2-08 Net investment income of $3.9 million [$0.19/share] compared with $3.2 million [$0.15/share] in Q2-07. Net increase(decrease) in net assets resulting from operations totaled $15.2 million [$.72/share] compared with a loss of $1.9 million [($0.09)/share] in Q2-07. As of June 30, 2008, our portfolio consisted of forty-one companies with an average investment size of $9.4 million and a weighted average yield on debt investments of 9.5%. The net asset value per share at June 30, 2008 was $10.77. No credit metrics were reported in earnings release or 10-Q. PNNT failed to give non-accrual loans, so I went by the heavily marked down (over 50%) loans to [1] Realogy Corp. loan of $26,279,942 marked down to $13,720,000; [2] Saint Acquisition Corp. loan of $9,946,348 marked down to $3,200,000; [3] Saint Acquisition Corp. loan of $16,473,303 marked down to $6,460,000; and [4] Cohr Holdings Inc. loan of $2,962,500 marked down to $1,392,375. PNNT had potential non-accruals at cost of $55,662,093 compared to total investments at cost of $435,256,061 or 12.79% of investments. PNNT had potential non-accruals at fair value of $24,772,375 compared to total investments at fair value of $369,991,408 or 6.69% of investments. This is probably an over-estimation of non-accruals. TAXI Reports NII of $0.22/share vs. Div of $0.19/share Business Wire 8-07 Medallion Financial Corp. reported Q2-08 Net investment income after taxes of $3,825,000 [$0.22/share] compared to $1,618,000 [$0.09/share] for Q2-07. Net interest margin was 4.63% compared to 3.86% in Q2-07, and on a combined basis with Medallion Bank, increased to 5.18% from 4.47% in Q2-07. The net increase in net assets resulting from operations, increased to $4,377,000 [$0.25/share] up from $4,272,000 [$0.24/share] in Q2-07. Net asset value per share was $9.95. The price of Chicago medallions has increased to $140,000/medallion, up from $50,000 several years ago. New York City corporate medallion prices also increased during the quarter to $633,000, near record levels. Corporate cutbacks on perks such as limousines and car services tend to result in increased taxi usage. Also when unemployment rates are high, there is a surplus labor pool available for driving taxis. Thus, occupancy rates for taxi fleets are at very high levels, as more than 95% of taxis are being leased out to driver. On a managed basis, including Medallion Bank, loans 90 days or more past due decreased to 0.4% from 0.6% a year ago on our medallion loan portfolio, were flat at 0.4% on our consumer loan portfolio, and decreased to 0.2% from 3.7% on our commercial loan portfolio. These are the lowest levels of delinquency in the history of TAXI. The average loan to value ratio on our portfolio is well below 60%. TCAP Reports NII of $0.37/share vs. Div of $0.35/share Prime Newswire 8-05 Triangle Capital Corporation reported Q2-08 Net investment income of $2.5 million [$0.37/share] compared to $1.6 million [$0.25/share] for Q2-07. TCAP had net unrealized appreciation of investments in the amount of $0.6 million, comprised of unrealized gains on eight investments totaling $1.2 million and unrealized losses on eleven investments totaling $0.6 million. The net increase in net assets resulting from operations was $2.8 million [$0.41] as compared to $2.2 million [$0.33] during Q2-07. The net asset value per share at June 30, 2008 was $13.73. As of June 30, 2008, the weighted average yield on all of its outstanding debt investments was approximately 14.0%. Approximately 86.2% of the investment portfolio bore interest at fixed rates. No credit metrics were reported in earnings release or 10-Q. TCAP did have a $1.494 million investment in Bruce Plastics written down to zero. And $1.494 million would be roughly equivalent to the .9% non-accruals reported in their June presentation. TICC Reports NII of $0.25/share vs. Div of $0.20/share Market Wire 8-11 TICC Capital reported Q2-08 net investment income of $5.772 million [$0.25/share], net realized capital gains on investments of approximately $933,000 and net unrealized depreciation on investments of approximately $955,000. The net increase in net assets resulting from operations was $5.749 million [$0.25/share]. The weighted average yield of our debt investments (excluding cash equivalents and assuming no interest income on the investments placed on non-accrual status) was approximately 10.3%. The Net asset value was $9.75/share. From the Conference Call: TICC has no new loans on non-accrual status and continues to have Genu Tec, Falcon and Pulvermedia on non-accrual. TICC received $20.9 million from the rights offering. Debt pricing is up, and TICC is de-leveraging. Credit facility is being reduced from $150 million to $50 million. TICC did not take questions in their call. In Falcon Communications, TICC owned a senior unsecured note with cost of $10.5 million and a current fair value of $1 million; In GenuTec Business Solutions, TICC owned both a senior secured note with a cost of $3.5 million and a current fair value of $2 million and convertible preferred stock at a cost of $1.5 million and a fair value of zero; In Pulvermedia, TICC owned a senior secured note with a cost of $10.560 million and a current fair value of $8.572 million and warrants to purchase common stock with a cost of $0.300 million and a fair value of zero. With Total assets of $329.301 million, and with non-accruals at fair value of $11.572 million, the ratio of non-accruals to assets was 3.51%. With Total assets of $329.301 million, and with non-accruals at cost of $26.360 million, the ratio of non-accruals to assets was 8.00%. On 8-01 PCAP declared a dividend of $0.33/share with a Record date of September 12, 2008 and a Payment date of October 15, 2008. On 8-06 AINV declared a dividend of $0.52/share payable on September 29, 2008 to stockholders of record as of September 18, 2008. On 8-07 HTCG declared a dividend of $0.34/share payable on September 15, 2008 to shareholders of record as of August 15, 2008. On 8-07 BKCC declared a dividend of $0.43/share payable on September 30, 2008 to stockholders of record as of September 15, 2008. On 8-07 TAXI declared a dividend of $0.19/share payable on August 29, 2008 to shareholders of record on August 15, 2008. On 8-07 MIC declared a dividend of $0.645/share to paid on September 11th, 2008 to shareholders of record at the close of business on September 4th, 2008. On 8-11 TICC declared a dividend of $0.20/share payable September 30, 2008 to sharedsholders of record on September 10, 2008. On 8-11 TTO declared an increased dividend of $0.2650/share [compared to $0.2625] to be paid on Sept. 2, 2008 to stockholders of record on Aug. 21, 2008. On 8-19 GNV declared a dividend of $0.39/share payable on September 15, 2008, to common shareholders of record on August 29, 2008. On 8-29 analyst Jim Shanahan of Wachovia wrtoe that he expects dividend cuts at some commercial mortgage and specialty finance companies, including CapitalSource [CSE] and Gramercy Capital [GKK] as they negotiate the economic downturn. The analyst expects dividend reductions at BlackRock Kelso Capital [BKCC] and Highland Distressed Opportunities [HCD], with CapitalSource and Highland expected to cut dividend in the third quarter. The dividend outlook is uncertain and "at-risk" for American Capital [ACAS], Allied Capital [ALD] and Apollo Investment Corp [AINV], Shanahan said. Ares Capital [ARCC] and KKR Financial [KFN] pose moderate risk of dividend reductions, he said. However, the analyst projected dividend increases for Prospect Capital [PSEC] and Fifth Street Finance [FSC]. "While we do not expect a significant change to dividend policy (absent CSE and HCD) over the remainder of 2008, the future viability of dividends for certain companies could be an issue in 2009 or 2010 depending on how severe the downturn in the economy becomes," Shanahan said. Wachovia downgraded BlackRock Kelso, Kayne Anderson Energy Development [KED] and NewStar Financial [NEWS] to "market perform" from "outperform." More on FSC Prime Newswire 8-07 and 6-18 On 6-18 Fifth Street Finance [FSC] announced that it completed an initial public offering, raising $141.2 million in gross proceeds. Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and mid-sized companies in connection with an investment by private equity sponsors. On 8-07 FSC declared its first dividend of $0.31/share payable on September 26, 2008 to stockholders of record as of September 10, 2008. [There was a pre-IPO dividend of $0.30/share paid to holders of 5-19 and distributed on 6-03-08.] Also on 8-07 FSC reported results from Q2-08. It had NII of $5.2 million [$0.36/share] and ended Q2-08 with a net asset value per share of $13.20. FSC's investments consisted of 36.8% first lien loans, 60.9% second lien loans, and 2.3% equity investments. No investments were on non-accrual status. The weighted average yield on debt investments was 16.5% [which included a cash component of 13.5%]. At June 30, 2008, 91.7% or $194.9 million of our interest-bearing investment portfolio consisted of fixed rate loans. In recent days, price declines among investment-grade bonds have pushed their spreads to a multidecade high, according to Merrill Lynch data. These bonds now yield 3.11 percentage points more than Treasurys on average, exceeding their recent March peak at 3.05 points. That erases the improvement that took place from April to June, after investors were heartened that Bear Stearns's problems didn't topple the financial system. Junk-bond spreads are also growing, but at 8.3 percentage points, the gap over risk-free Treasurys remains below March's high of 8.6 points. The current junk spread is still well under multidecade highs at 11 percentage points hit November 2002 -- the bottom of the tech-driven downturn that included large bankruptcies such as Enron and WorldCom. The investment-grade bonds of banks, brokerage firms and other financial companies have suffered the most pronounced decline. Spreads on their debt have reached new highs as well, at 3.78 percentage points over Treasury bonds, significantly higher than the 3.62 point peak in March. (Liz Rappaport, WSJ 8-22) Standard & Poor’s distressed-debt ratio hit a five-and-a-half year high in August as investors continued to demand greater reward for the risk of holding the debt. The ratio looks at junk-rated issues with spreads at least 10 percentage points above U.S. Treasurys. The ratio rose to 25% this month, after nearly doubling to 24% in July. A leap in the ratio tends to precede a rise in defaults, with a typical lag time between nine months and one year, according to the agency. The distressed-debt ratio has quadrupled this year, so keep an eye on the calendar. (Kathy Shwiff, WSJ 8-25) On 7-01 Wachovia Upgraded The info below uses the formula: EPS [or "Increase in Net Assets resulting from Operations"] = Net Investment Income + Net realized portfolio gains + Net unrealized portfolio gains + or - one time charges. Using this formula allows one the measure dividend coverage against NII [Net investment income], RE [Realized earnings] and EPS. ACAS has a current dividend of $1.03/share (NII + Asset Management Income) Net Operating Income = $145 million [divided by 204.4 million shares = $0.7094] Net realized gain = $49 million [$0.2397/share] (NII + asset management inc + realized gains) Realized Earnings = $194 million [$0.9491/share] Unrealized Appreciation (loss) = - $264 million [- $1.2916/share] (Earnings) Increase in Net Assets resulting from Operations = - $70 million [- $0.3424/share] AINV has a current dividend of $0.52/share Net Investment Income $46.313 million [divided by 142.221 million 'average' shares = $0.3256] Realized gain (loss) on investments = - $29.818 million [- $0.2096/share] Realized Earnings = $16.495 million [$0.1160/share] Unrealized appreciation = $55.345 million [$0.3891/share] Net Increase in Net Assets Resulting from Operations = $71.840 million [$0.5051/share] ALD has a current dividend of $0.65/share Net Investment Income $63.885 million [divided by 172.968 million 'average' shares = $0.3693] Realized gain (loss) on investments = - $17.885 million [- $0.1034/share] Realized Earnings = $46.000 million [$0.2659/share] Unrealized appreciation = - $148.203 million [- $0.8568/share] Net Increase in Net Assets Resulting from Operations = - $102.203 million [- $0.5908/share] ARCC has a current dividend of $0.42/share Net Investment Income $36.061 million [divided by 90.125 million 'average' shares = $0.4001] Realized gain (loss) on investments = $0.017 million [$0.0002/share] Realized Earnings = $36.078 million [$0.4003/share] Unrealized appreciation = - $32.806 million [- $0.3640/share] Net Increase in Net Assets Resulting from Operations = $3.272 million [$0.0363/share] BKCC has a current dividend of $0.43/share Net Investment Income $23.263 million [divided by 53.289 million 'average' shares = $0.4365] Realized gain (loss) on investments = - $1.518 million [- $0.0285/share] Realized Earnings = $21.745 million [$0.4080/share] Unrealized appreciation = - $9.885 million [ - $0.1855/share] Net Increase in Net Assets Resulting from Operations = $11.859 million [$0.2225/share] GAIN has a current dividend of $0.24/share/quarter Net Investment Income $3.051 million [divided by 19.943 million 'average' shares = $0.1530] Realized gain (loss) on investments = - $1.718 million [- $0.0861/share] Realized Earnings = $1.333 million [$0.0668/share] Unrealized appreciation = - $5.817 million [- $0.2917/share] Net Increase in Net Assets Resulting from Operations = - $4.484 million [- $0.2248/share] GNV has a current dividend of $0.39/share Net Investment Income $3.195 million [divided by 8.291 million shares = $0.3853] Realized gain (loss) on investments = - $0.287 million [- $0.0346/share] Realized Earnings = $2.908 million [$0.3507/share] Unrealized appreciation = - $0.097 million [- $0.0117/share] Net Increase in Net Assets Resulting from Operations = $2.881 million [$0.3390/share] GLAD has a current dividend of $0.42/share/quarter Net Investment Income $6.697 million [divided by 21.087 million shares = $0.3175] Realized gain (loss) on investments = - $0.086 million [- $0.0041/share] Realized Earnings = $6.611 million [$0.3135/share] Unrealized appreciation = - $3.802 million [- $0.1803/share] Net Increase in Net Assets Resulting from Operations = $2.809 million [$0.1288/share] HCD has a current dividend of $0.2625/share Net Investment Income $4.050 million [divided by 17.717 million 'average' shares = $0.2286] Realized gain (loss) on investments = - $20.544 million [- $1.1595/share] Realized Earnings = - $16.504 million [- $0.9315/share] Unrealized appreciation = $3.112 million [$0.1756/share] Net Increase in Net Assets Resulting from Operations = - $13.383 million [- $0.7554/share] HTGC has a current dividend of $0.34/share Net Investment Income $9.972 million [divided by 32.832 million 'average' shares = $0.3037] Realized gain (loss) on investments = $1.909 million [$0.0581/share] Realized Earnings = $11.881 million [$0.3619/share] Unrealized appreciation = - $3.523 million [- $0.1073/share] Net Increase in Net Assets Resulting from Operations = $8.358 million [$0.2545/share] KED has a current dividend of $0.415/share Net investment income = - $1.158 million [divided by 10.072 million shares = - $0.1150/share] Adjusted NII [which includes $4.697 million in ROC divs] = $3.539 million [$0.3514/share] Net realized gain on investments $0.811 million [$0.0805/share] Realized Earnings = - $0.347 million [- $0.0344/share] ROC Adjusted Realized Earnings = $4.350 million [$0.4319/share] Unrealized appreciation = $5.796 million [$0.5754/share] Net Increase (Decrease) in Net Assets Resulting from Operations = $5.159 million [$0.5122/share] ROC Adjusted Net Increase in Net Assets Resulting from Operations = $9.856 million [$0.9785/share] KCAP has a current dividend of $0.42/share Net Investment Income $7.658 million [divided by 20.332 million 'average' shares = $0.3766] Realized gain (loss) on investments = $0.105 million [$0.0052/share] Realized Earnings = $7.763 million [$0.3714/share] Unrealized appreciation = - $0.466 million [- $0.0229/share] Net Increase in Net Assets Resulting from Operations = $7.297 million [$0.3589/share] KCAP's calculations differed on per share data MAIN has a current dividend of $0.35/share Net Investment Income $2.586 million [divided by 8.960 million 'average' shares = $0.2886] Realized gain (loss) on investments = $0.099 million [$0.0110/share] Realized Earnings = $2.686 million [$0.2998/share] Unrealized appreciation = - $0.806 million [- $0.0899/share] Income-tax benefit = $2.608 million [$0.2911/share] Net Increase in Net Assets Resulting from Operations = $4.488 million [$0.5009/share] MCGC has a current dividend of $0.27/share Net Operating Income $12.950 million [divided by 72.310 million 'average' shares = $0.1791] Realized gain (loss) on investments = $0.135 million [$0.0005/share] Realized Earnings = $13.085 million [$0.1809/share] Unrealized appreciation = - $82.288 million [- $1.1380/share] Tax Provision = $0.162 million [$0.0022/share] Net Income [loss] = - $69.500 million [- $0.9611/share] NGPC has a current dividend of $0.40/share Net Investment Income $3.759 million [divided by 21.628 million 'average' shares = $0.1738] Realized gain (loss) on investments = $0.000 million [$0.0000/share] Realized Earnings = $3.759 million [$0.1738/share] Unrealized appreciation = $1.611 million [$0.0745/share] Net Increase in Net Assets Resulting from Operations = $5.370 million [$0.2483/share] PCAP has a current dividend of $0.33/share Net Investment Income $6.418 million [divided by 20.693 million 'average' shares = $0.3101] Realized gain (loss) on investments = - $0.292 million [- $0.0141/share] Realized Earnings = $6.126 million [$0.2960/share] Unrealized appreciation = - $2.450 million [- $0.1184/share] Net Increase in Net Assets Resulting from Operations = $3.676 million [$0.1776/share] PNNT has a current dividend of $0.22/share Net Investment Income $3.941 million [divided by 21.069 million 'average' shares = $0.1871] Realized gain (loss) on investments = - $0.402 million [- $0.0191/share] Realized Earnings = $3.539 million [$0.1680/share] Unrealized appreciation = $11.665 million [$0.5536/share] Net Increase in Net Assets Resulting from Operations = $15.204 million [$0.7216/share] TAXI has a current dividend of $0.19/share Net Investment Income $3.825 million [divided by 17.714 million 'average' shares = $0.2159] Realized gain (loss) on investments = - $5.124 million [- $0.2893/share] Realized Earnings = - $1.299 million [- $0.0733/share] Unrealized appreciation = $5.676 million [$0.3204/share] Net Increase in Net Assets Resulting from Operations = $4.337 million [$0.2448/share] I would have needed to use 20 million shares to get the per share data to match TAXI's TCAP has a current dividend of $0.35/share Net Investment Income $2.542 million [divided by 6.871 million 'average' shares = $0.3699] Realized gain (loss) on investments = $0.000 million [$0.0000/share] Realized Earnings = $2.542 million [$0.3699/share] Unrealized appreciation = $0.382 million [$0.0555/share] Income Tax expense = - $0.076 million [- $0.0110/share] Net Increase in Net Assets Resulting from Operations = $2.848 million [$0.4145/share] TICC has a current dividend of $0.20/share Net Investment Income $5.772 million [divided by 22.708 million 'average' shares = $0.2542] Realized gain (loss) on investments = $0.933 million [$0.0410/share] Realized Earnings = $6.705 million [$0.2953/share] Unrealized appreciation = - $0.955 million [- $0.0420/share] Net Increase in Net Assets Resulting from Operations = $5.750 million [$0.2532/share] TTO has a current dividend of $0.2625/share Net investment income = - $1.119 million [divided by 8.876 million shares = - $0.1261/share] Adjusted NII [which includes $2.330 million in ROC divs] = $1.211 million [$0.1364/share] Net realized gain on investments $0.000 million [$0.0000/share] Realized Earnings = - $1.119 million [- $0.1261/share] ROC Adjusted Realized Earnings = $1.211 million [$0.1364/share] Unrealized appreciation = $7.095 million [$0.7993/share] Net Increase (Decrease) in Net Assets Resulting from Operations = $5.977 million [$0.6734/share] ROC Adjusted Net Increase in Net Assets Resulting from Operations = $8.307 million [$0.9359/share] NOTE #1: This page is ment to be a supplement for those already getting monthly sector updates from another source. Data entry errors sporadically happen. There are other metrics not covered here that should not be ignored. NOTE #2: This page has a forcasting spreadsheet - and until that mathamatical model has had a year or two of testing, it is probably best for you to totally ignore it. NOTE #3: The owner of this site owns shares in NGPC - and this could distort the coverage of that BDC. |