TICC Announces Results of Operations for the Quarter Ended September 30, 2011 and Quarterly Distribution of $0.25 per Share
(firmenpresse) - GREENWICH, CT -- (Marketwire) -- 11/08/11 -- TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended September 30, 2011 and a distribution of $0.25 per share for the fourth quarter of 2011.
HIGHLIGHTS
On August 10, 2011, we closed a $225 million debt securitization financing transaction, in which a wholly-owned subsidiary of the Company holds the equity. The senior notes of the debt securitization vehicle have an initial face amount of $101,250,000, were rated AAA/Aaa by Standard & Poor's Ratings Services and Moody's Investors Service, Inc., respectively, and bear interest at three-month LIBOR plus 2.25%. The senior notes have a stated maturity date of July 25, 2021 and are subject to a three year non-call period. The debt securitization vehicle has a three year reinvestment period.
Total investment income for the third quarter of 2011 amounted to approximately $11.1 million, which remained essentially the same from the second quarter of 2011.
For the quarter ended September 30, 2011, we recorded net investment income of approximately $11.6 million, or approximately $0.36 per share. Excluding the impact of a capital gains incentive fee accrual reduction of approximately $4.1 million, our core net investment income(1) was approximately $7.5 million, or approximately $0.23 per share. We also recorded net unrealized depreciation of approximately $20.1 million and net realized capital gains of approximately $0.1 million. In total, we had a net decrease in net assets resulting from operations of approximately $8.4 million or approximately $0.26 per share for the third quarter.
As of the end of the third quarter of 2011 there were no loans on non-accrual status.
Our operating expenses before the capital gains incentive fee for the quarter ended September 30, 2011 were approximately $3.6 million, which were up from the second quarter of 2011 by approximately $0.6 million.
Our weighted average credit rating on a fair value basis was 2.2 at the end of the third quarter of 2011 (compared to 2.2 at the end of the second quarter of 2011).
The capital gains portion of our incentive fee expense was reduced by approximately $4.1 million for the quarter ended September 30, 2011. The previous quarter's accrual of approximately $5.0 million was reduced to approximately $900,000 based on the change in net realized and unrealized gains and losses during the third quarter of 2011. The capital gains incentive fee expense, as reported under generally accepted accounting principles, is calculated on the basis of net realized and unrealized gains and losses at the end of each period. The expense related to the hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of the Investment Advisory Agreement (the "Agreement") on such date. The $5.0 million capital gains incentive fee accrual as of the second quarter of 2011, as well as the $4.1 million reduction for the quarter ended September 30, 2011, relate entirely to the hypothetical liquidation calculation.
The amount of the capital gains incentive fee which will actually be payable is determined in accordance with the terms of the Agreement and is calculated as of the end of each calendar year (or upon termination of the Agreement). The terms of the Agreement state that the capital gains incentive fee calculation is based on net realized gains, if any, offset by gross unrealized depreciation for the calendar year. No effect is given to gross unrealized appreciation in this calculation.
Our Board of Directors has declared a distribution of $0.25 per share for the fourth quarter of 2011.
Payable Date: December 30, 2011
Record Date: December 16, 2011
During the third quarter of 2011, we deployed approximately $81.0 million in 21 investments. For the same period, we received proceeds of approximately $9.0 million from repayments and amortization payments on our debt investments. As of September 30, 2011, we had approximately $35.0 million of uncommitted funds remaining in the securitization vehicle; as of today, we have approximately $6.0 million remaining uncommitted.
With respect to our CLO investments for the quarter ending September 30, 2011, we recorded approximately $1.0 million in interest payments, $56,000 in principal payments at par and approximately $3.1 million in CLO equity distributions. In total, since we began investing in this asset class through September 30, 2011, we have recorded approximately $6.0 million in interest payments, $2.7 million in principal payments at par and $12.4 million in CLO equity distributions.
At the end of the third quarter, this asset class represented approximately 20.5% of our total assets on a fair value basis.
At September 30, 2011, the weighted average yield of our debt investments was approximately 11.4%, down from 12.9% at June 30, 2011.
At September 30, 2011, net asset value per share was $9.34 compared with the net asset value per share at December 31, 2010 of $9.85. The September 30, 2011 net asset value incorporates the impact of the capital gains incentive fee accrual.
On a supplemental basis, we provide information relating to core net investment income which is a non-GAAP measure. This measure is provided in addition to, but not a substitute for, net investment income. Core net investment income represents net investment income excluding our capital gains incentive fee. As the capital gains incentive fee is based on a hypothetical event that did not occur, we believe that core net investment income is a useful indicator of non-hypothetical transactions during this period.
The following table provides a reconciliation of net investment income to core net investment income (for the three and nine months ended September 30, 2011):
We will host a conference call to discuss our third quarter results today, Tuesday, November 8, 2011 at 10:00 AM ET. Please call 877-317-6789 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-344-7529, and the replay passcode is 10006510.
The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-K for the period ended December 31, 2010, and subsequent reports on Form 10-Q as they are filed.
About TICC Capital Corp.
We are a publicly traded business development company principally engaged in providing capital to small to mid-size companies. While the structures of our financings vary, we look to invest primarily in the debt of established businesses. Companies interested in learning more about financing opportunities should contact Debdeep Maji at (203) 983-5285 or visit our website at .
Forward-Looking Statements
This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.
Contacts:
Bruce Rubin
203-983-5280
Patrick Conroy
203-983-5282
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Datum: 08.11.2011 - 07:00 Uhr
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