2013-02-06 22:05:21 -
New York, NY - February 06, 2013
First Quarter Fiscal Year 2013 Dividend Declared
Medley Capital Corporation (the "Company") (NYSE: MCC) today announced that its
Board of Directors declared a dividend for the quarter ended December 31, 2012
of $0.36 per share, payable on March 15, 2013 to stockholders of record as of
February 27, 2013. The dividend will be paid from earnings whose specific tax
characteristics will be reported to stockholders on Form 1099 after the end of
the calendar year.
Financial Results for the Quarter ended December 31, 2012
First Quarter Highlights
* Declared a dividend of $0.36 per share
* Net investment income of $0.39 per share
* Net income of $0.39 per share
* Net asset value (NAV) of $12.69 per
share
* Gross investment originations of $133.2 million
* Issued 5.5 million shares of our common stock for net proceeds of $72.3
million
"We are pleased to announce a dividend of $0.36 per share for the quarter end
December 31, 2012" said Mr. Brook Taube, CEO. "As we look forward in this
quarter and further into 2013, we expect net investment income will meet or
exceed the current dividend assuming we are able to deploy capital as planned"
continued Mr. Taube.
Portfolio Investments
The total value of our investments, including cash and cash equivalents, was
$522.4 million at December 31, 2012. During the quarter ended December
31, 2012, the Company originated $133.2 million of new investments and had $16.8
million of repayments resulting in net investment originations of $116.4
million. As of December 31, 2012, the Company had investments in securities of
46 portfolio companies with approximately 64.9% consisting of senior secured
first lien investments, 34.1% consisting of senior secured second lien
investments, 0.7% in equities / warrants and 0.3% consisting of cash and cash
equivalents. As of December 31, 2012, the weighted average yield based upon the
cost basis of our portfolio investments, excluding cash and cash equivalents,
was 14.0% and there were no assets on non-accrual status.
Results of Operations
The Company reported net investment income of $0.39 per share and net income of
$0.39 per share, respectively, calculated based upon the weighted average shares
outstanding, for the three months ended December 31, 2012. As of December
31, 2012, the Company's NAV was $12.69 per share.
Investment Income
For the three months ended December 31, 2012, gross investment income was $17.7
million and consisted of $14.8 million of portfolio interest income and $2.9
million of other fee income.
Expenses
For the three months ended December 31, 2012, total expenses were $8.1 million
and consisted of the following: base management fees net of waiver of $2.1
million, incentive fees of $2.4 million, interest and financing expenses of $2.3
million, professional fees of $0.3 million, administrator expenses of $0.5
million, directors fees of $0.1 million, and other general and administrative
related expenses of $0.4 million.
Net Investment Income
The Company reported net investment income of $9.6 million, or $0.39 on a
weighted average per share basis, for the quarter ended December 31, 2012.
Net Realized and Unrealized Gains/Losses
For the three months ended December 31, 2012, the Company reported net realized
gains of $0.2 million and net unrealized depreciation of $0.2 million.
Liquidity and Capital Resources
As of December 31, 2012, the Company had cash and cash equivalents of $1.7
million, $44.0 million of debt outstanding under its $182.0 million senior
secured revolving credit facility, $80.5 million of debt outstanding under its
senior secured term loan and $40.0 million in aggregate principal amount of
7.125% senior notes due 2019 were outstanding.
On January 30, 2013 the Company's board of directors declared a quarterly
dividend of $0.36 per share payable on March 15, 2013 to holders of record as of
February 27, 2013.
Webcast/Conference Call
The Company will host an earnings conference call and audio webcast at 10:00
a.m. (Eastern Time) on Thursday, February 7, 2013.
All interested parties may participate in the conference call by dialing (866)
831-6243 approximately 5-10 minutes prior to the call: international callers
should dial (617) 213-8855. Participants should reference Medley Capital
Corporation and the participant passcode of 58260481 when prompted. Following
the call you may access a replay of the event via audio webcast. This conference
call will be broadcast live over the Internet and can be accessed by all
interested parties through the Company's website,
www.medleycapitalcorp.com. To listen to the live call, please go to the
Company's website at least 15 minutes prior to the start of the call to register
and download any necessary audio software. For those who are not able to listen
to the live broadcast, a replay will be available shortly after the call on the
Company's website.
Financial Statements
Medley Capital Corporation
Consolidated Statements of Assets and Liabilities
(in thousands, except share and per share data)
As of
-------------------------------------------
December 31, 2012 September 30, 2012
---------------------- --------------------
(unaudited)
ASSETS
Investments at fair value
Non-controlled/non-affiliated
investments (amortized cost of
$513,307 and $394,482,
respectively) $ 512,261 $ 393,741
Affiliated investments
(amortized cost of
$8,825 and $8,679,
respectively) 8,433 8,208
---------------------- --------------------
Total investments at
fair value 520,694 401,949
Cash and cash equivalents 1,667 4,894
Interest receivable 6,079 3,940
Deferred financing costs,
net 5,526 4,652
Other assets 542 232
Deferred offering costs 61 104
---------------------- --------------------
Total assets $ 534,569 $ 415,771
---------------------- --------------------
LIABILITIES
Revolving credit facility
payable $ 44,000 $ 15,000
Term loan payable 80,500 55,000
Notes payable 40,000 40,000
Payable for investments
purchased - 10,212
Management and incentive
fees payable, net 4,500 3,515
Accounts payable and
accrued expenses 775 924
Administrator expenses
payable 522 466
Deferred revenue 163 174
Interest and fees payable 293 1,048
Due to affiliate - 13
Offering costs payable 68 80
---------------------- --------------------
Total liabilities $ 170,821 $ 126,432
---------------------- --------------------
NET ASSETS
Common stock, par value
$.001 per share,
100,000,000 common shares
authorized,
28,662,049 and
23,110,242 common
shares issued and
outstanding, $
respectively $ 29 23
Capital in excess of par
value 358,123 285,012
Accumulated undistributed
net investment income 6,857 5,560
Accumulated net realized
gain (loss) from
investments 177 (45)
Net unrealized
appreciation
(depreciation) on
investments (1,438) (1,211)
---------------------- --------------------
Total net assets 363,748 289,339
---------------------- --------------------
Total liabilities and net
assets $ 534,569 $ 415,771
---------------------- --------------------
NET ASSET VALUE PER SHARE $ 12.69 $ 12.52
---------------------- --------------------
Medley Capital Corporation
Consolidated Statements of Operations
(in thousands, except share and per share data)
For the three For the three
months ended months ended
12/31/2012 12/31/2011
-------------------- -------------------
(unaudited) (unaudited)
INVESTMENT INCOME
Interest from investments
Non-controlled/Non-affiliated
investments $ 14,471 $ 5,538
Affiliated investments 368 1,554
-------------------- -------------------
Total interest income 14,839 7,092
Interest from cash and cash
equivalents 1 2
Other fee income 2,879 1,135
-------------------- -------------------
Total investment income 17,719 8,229
-------------------- -------------------
EXPENSES
Base management fees 2,096 1,045
Incentive fees 2,404 1,207
Interest and financing expenses 2,317 282
Administrator expenses 522 296
Professional fees 292 292
Directors fees 113 115
Insurance 67 104
General and administrative 291 102
-------------------- -------------------
Expenses before management fee
waiver 8,102 3,443
Management fee waiver - (41)
-------------------- -------------------
Total expenses net of management fee
waiver 8,102 3,402
-------------------- -------------------
Net investment income before excise
taxes 9,617 4,827
Excise tax expense - (36)
-------------------- -------------------
NET INVESTMENT INCOME 9,617 4,791
-------------------- -------------------
REALIZED AND UNREALIZED GAIN (LOSS) ON
INVESTMENTS:
Net realized gain/(loss) from
investments 222 112
Net unrealized
appreciation/(depreciation) on
investments (226) (514)
-------------------- -------------------
Net gain/(loss) on investments (4) (402)
-------------------- -------------------
NET INCREASE IN NET ASSETS RESULTING
FROM OPERATIONS $ 9,613 $ 4,389
-------------------- -------------------
WEIGHTED AVERAGE - BASIC AND DILUTED
EARNINGS PER COMMON SHARE $ 0.39 $
0.25
WEIGHTED AVERAGE - BASIC AND DILUTED
NET
INVESTMENT INCOME PER COMMON SHARE $ 0.39 $
0.28
WEIGHTED AVERAGE COMMON STOCK
OUTSTANDING
- BASIC AND DILUTED 24,767,375 17,320,468
DIVIDENDS DECLARED PER COMMON SHARE $ 0.36 $
0.25
ABOUT MEDLEY CAPITAL CORPORATION
The Company is an externally-managed, non-diversified closed-end management
investment company that has filed an election to be treated as a business
development company under the Investment Company Act of 1940, as amended. The
Company's investment objective is to generate both current income and capital
appreciation, primarily through investments in privately negotiated debt and
equity securities of middle market companies. The Company is a direct lender
targeting private debt transactions ranging in size from $10 to $50 million to
borrowers principally located in North America. The Company's investment
activities are managed by its investment adviser, MCC Advisors LLC, which is an
investment adviser registered under the Investment Advisers Act of 1940, as
amended.
ABOUT MCC ADVISORS LLC
MCC Advisors LLC, an affiliate of Medley LLC ("Medley"), is a registered
investment adviser under the Investment Advisers Act of 1940, as amended. Medley
specializes in credit investing, including direct private lending and corporate
credit related strategies and provides first lien, second lien and unitranche
term loans to lower middle-market and middle-market companies with an investment
size between $7-50 million. Medley will support acquisition and growth
financings, leveraged buyouts, management buyouts, bank debt restructurings,
CAPEX, Chapter 11 exit financing and DIP financing. Medley is headquartered in
New York with offices in San Francisco.
FORWARD-LOOKING STATEMENTS
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 assumptions, risks and
uncertainties, which change over time. Actual results may differ materially from
those anticipated in any forward-looking statements as a result of a number of
factors, including those described from time to time in filings by the Company
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.
SOURCE: Medley Capital Corporation
Contact:
Richard T. Allorto
212.759.0777
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Medley Capital Corporation via Thomson Reuters ONE
[HUG#1676200]
