e497ad
Filed pursuant to Rule 497(a)
File No. 333-166012
Rule 482ad
Fifth Street Finance Corp. Announces Quarter Ended December 31, 2010 Financial Results
WHITE PLAINS, N.Y., January 31, 2011 Fifth Street Finance Corp. (NYSE: FSC) (Fifth Street or
we) announces its results for the first fiscal quarter ended December 31, 2010.
First Quarter 2011 Financial Highlights
|
|
|
Net investment income for the quarter ended December 31, 2010 was $14.1 million or $0.26
per share, as compared to $8.3 million or $0.22 per share for the quarter ended December
31, 2009; |
|
|
|
|
Net asset value per share was $10.44 as of December 31, 2010, as compared to $10.43 as
of September 30, 2010; |
|
|
|
|
Net unrealized appreciation for the quarter ended December 31, 2010 was $16.8 million
(including $10.3 million of reclassifications to realized losses) or $0.31 per share, as
compared to $1.0 million or $0.03 per share for the quarter ended December 31, 2009; |
|
|
|
|
Net realized gains (losses) on investments for the quarter ended December 31, 2010 were
($13.5 million) or ($0.25) per share, as compared to $0.1 million for the quarter ended
December 31, 2009; and |
|
|
|
|
Net increase in net assets resulting from operations for the quarter ended December 31,
2010 was $17.4 million or $0.32 per share, as compared to $9.5 million or $0.25 per share
for the quarter ended December 31, 2009; |
Second Quarter and Third Quarter 2011 Dividend Declarations
Our Board of Directors has declared monthly dividends for the second and third fiscal quarters of
2011 as follows:
|
|
|
$0.1066 per share, which was paid on January 31, 2011 to stockholders of record on
January 4, 2011; |
|
|
|
|
$0.1066 per share, payable on February 28, 2011 to stockholders of record on February 1,
2011; |
|
|
|
|
$0.1066 per share, payable on March 31, 2011 to stockholders of record on March 1, 2011; |
|
|
|
|
$0.1066 per share, payable on April 29, 2011 to stockholders of record on April
1, 2011; |
|
|
|
|
$0.1066 per share, payable on May 31, 2011 to stockholders of record on May 2,
2011; and |
|
|
|
|
$0.1066 per share, payable on June 30, 2011 to stockholders of record on June
1, 2011. |
Portfolio and Investment Activity
Our Board of Directors determined the fair value of our portfolio at December 31, 2010 to be $742.4
million, as compared to $563.8 million at September 30, 2010.
During the quarter ended December 31, 2010, we closed $273.1 million of new investments, including
funding $238.6 million across six new and seven existing portfolio companies. This compares to
funding $144.2 million across four new and three existing portfolio companies during the quarter
ended December 31, 2009.
At December 31, 2010, our portfolio consisted of investments in 45 companies, 41 of which were
completed in connection with investments by private equity sponsors and four of which were in
private equity funds. At fair value, 98.6% of our portfolio consisted of debt investments (86.5%
were first lien loans, 11.5% were second lien loans and the remainder were subordinated loans).
Our average portfolio company investment size at fair value (excluding equity-only investments) was
approximately $19.5 million at December 31, 2010, versus $16.6 million at September 30, 2010.
We are pleased to report that we have continued to build on the momentum from our first fiscal
quarter by closing over $75 million of new deals so far in the current quarter. In addition, we
have been progressing towards expanding our ING-led credit facility and are hopeful that it will
lead to substantial incremental capital from additional lenders with more favorable terms, stated
our Chief Executive Officer, Leonard M. Tannenbaum.
Our weighted average yield on debt investments at December 31, 2010 was 13.2%, and included a cash
component of 11.4%.
At December 31, 2010 and September 30, 2010, $366.0 million and $183.0 million, respectively, of
our portfolio of debt investments at fair value were at floating rates, which represented 50.0% and
32.8%, respectively, of our total portfolio of debt investments at fair value.
Results of Operations
Total investment income for the quarters ended December 31, 2010 and December 31, 2009 was $25.3
million and $13.2 million, respectively. For the quarter ended December 31, 2010, this amount
primarily consisted of $20.8 million of interest income from portfolio investments (which included
$3.1 million of PIK interest), and $4.5 million of fee income (which included $1.3 million of exit
fees). For the quarter ended December 31, 2009, total investment income primarily consisted of
$12.3 million of interest income from portfolio investments (which included $2.0 million of PIK
interest), and $0.9 million of fee income.
The increase in our total investment income for the quarter ended December 31, 2010 as compared to
the quarter ended December 31, 2009 was primarily attributable to higher average levels of
outstanding debt investments, which were principally due to an increase of 13 investments in our
portfolio in the year-over-year period, partially offset by scheduled amortization payments
received and other debt payoffs during the same period.
Expenses for the quarters ended December 31, 2010 and December 31, 2009 were $11.3 million and $4.9
million, respectively. Expenses increased for the quarter ended December 31, 2010 as compared to
the quarter ended December 31, 2009 by $6.4 million, primarily as a result of increases in the base
management fee, the incentive fee, interest expense, professional fees and other general and
administrative expenses. For the quarters ended December 31, 2010 and December 31, 2009, no base
management fee was incurred on our assets held in the form of cash and cash equivalents. Our
investment advisor voluntarily agreed to permanently waive this fee as of the end of each quarter
beginning March 31, 2010.
Net realized gain or loss on the sale of investments is the difference between the proceeds
received from dispositions of portfolio investments and their stated costs. During the quarters
ended December 31, 2010 and December 31, 2009, we recorded the following investment realization
events:
|
|
|
In October 2010, we received a cash payment of $8.7 million from Goldco, Inc. in full
satisfaction of all obligations under the loan agreement. The debt investment was exited at
par and no realized gain or loss was recorded on this transaction; |
|
|
|
|
In November 2010, we received a cash payment of $11.0 million from TBA Global, LLC in
full satisfaction of all obligations under the loan agreement. The debt investment was
exited at par and no realized gain or loss was recorded on this transaction; |
|
|
|
|
In November 2010, we restructured our investment in Vanguard Vinyl, Inc. The
restructuring resulted in a material modification of the terms of the loan agreement. As
such, we recorded a realized loss in the amount of $1.7 million; |
|
|
|
|
In December 2010, we restructured our investment in Nicos Polymers & Grinding, Inc. The
restructuring resulted in a material modification of the terms of the loan agreement. As
such, we recorded a realized loss in the amount of $3.9 million; |
|
|
|
In December 2010, we received a cash payment of $25.3 million from Boot Barn in full
satisfaction of all obligations under the loan agreement. The debt investment was exited at
par and no realized gain or loss was recorded on this transaction; |
|
|
|
|
In December 2010, we received a cash payment of $11.7 million from Western Emulsions,
Inc. in partial satisfaction of the obligations under the loan agreement. No realized gain
or loss was recorded on this transaction; |
|
|
|
|
In December 2010, we restructured our investment in Lighting by Gregory, LLC. The
restructuring resulted in a material modification of the terms of the loan agreement. As
such, we recorded a realized loss in the amount of $7.8 million; |
|
|
|
|
In October 2009, we received a cash payment in the amount of $0.1 million representing a
payment in full of all amounts due in connection with the cancellation of our loan
agreement with American Hardwoods Industries, LLC. We recorded a $0.1 million reduction to
the previously recorded $10.4 million realized loss on the investment in American
Hardwoods; and |
|
|
|
|
In October 2009, we received a cash payment of $3.9 million from Elephant & Castle, Inc.
in partial satisfaction of the obligations under the loan agreement. No realized gain or
loss was recorded on this transaction. |
Net unrealized appreciation or depreciation is the net change in the fair value of our investment
portfolio and our interest rate swaps during the reporting period, including the reversal of
previously recorded unrealized appreciation or depreciation when gains or losses are realized.
During the quarter ended December 31, 2010, we recorded net unrealized appreciation of $16.8
million. This consisted of $10.3 million of reclassifications to realized losses, $5.5 million of
net unrealized appreciation on debt investments, $0.3 million of net unrealized appreciation on
equity investments and $0.7 million of net unrealized appreciation on our interest rate swap.
During the quarter ended December 31, 2009, we recorded net unrealized appreciation of $1.0
million. This consisted primarily of $1.2 million of net unrealized appreciation on debt
investments, offset by $0.2 million of net unrealized depreciation on equity investments.
Liquidity and Capital Resources
As of December 31, 2010, we had $43.0 million in cash and cash equivalents, portfolio investments
(at fair value) of $742.4 million, $4.7 million of interest and fees receivable, $123.3 million of
SBA debentures payable, $89.0 million of borrowings outstanding under our credit facilities and
unfunded commitments of $95.3 million.
As of September 30, 2010, we had $76.8 million in cash and cash equivalents, portfolio investments
(at fair value) of $563.8 million, $3.8 million of interest receivable, $73.0 million of SBA
debentures payable and unfunded commitments of $49.5 million.
Fiscal Year 2011 Dividends
For fiscal year 2011, our Board of Directors has declared monthly dividends as follows:
|
|
|
$0.10 per share, which was paid on October 27, 2010 to stockholders of record on October
6, 2010; |
|
|
|
|
$0.11 per share, which was paid on November 24, 2010 to stockholders of record on
November 3, 2010; |
|
|
|
|
$0.11 per share, which was paid on December 29, 2010 to stockholders of record on
December 1, 2010; |
|
|
|
|
$0.1066 per share, which was paid on January 31, 2011 to stockholders of record on
January 4, 2011; |
|
|
|
|
$0.1066 per share, payable on February 28, 2011 to stockholders of record on February 1,
2011; |
|
|
|
|
$0.1066 per share, payable on March 31, 2011 to stockholders of record on March 1, 2011; |
|
|
|
|
$0.1066 per share, payable on April 29, 2011 to stockholders of record on April
1, 2011; |
|
|
|
|
$0.1066 per share, payable on May 31, 2011 to stockholders of record on May 2,
2011; and |
|
|
|
|
$0.1066 per share, payable on June 30, 2011 to stockholders of record on June
1, 2011. |
Dividends are paid from distributable (taxable) income. Our Board of Directors determines
dividends based on estimates of distributable (taxable) income, which differ from book income due
to temporary and permanent differences in income and expense recognition and changes in unrealized
appreciation and depreciation on investments.
Our amended dividend reinvestment plan (DRIP) provides for reinvestment of dividends, unless a
stockholder elects to receive cash. As a result, if our Board of Directors declares a cash
dividend, our stockholders who have not opted out of our DRIP will have their cash dividends
automatically reinvested in additional shares of our common stock, rather than receiving cash
dividends. If you are a stockholder and your shares of our common stock are held through a
brokerage firm or other financial intermediary and you wish to participate in the DRIP, please
contact your broker or other financial intermediary.
Portfolio Asset Quality
We utilize the following investment rating system for our investment portfolio:
|
|
|
Investment Rating 1 is used for investments that are performing above expectations
and/or a capital gain is expected. |
|
|
|
|
Investment Rating 2 is used for investments that are performing substantially within our
expectations, and whose risks remain neutral or favorable compared to the potential risk at
the time of the original investment. All new investments are initially rated 2. |
|
|
|
|
Investment Rating 3 is used for investments that are performing below our expectations
and that require closer monitoring, but where we expect no loss of investment return
(interest and/or dividends) or principal. Companies with a rating of 3 may be out of
compliance with financial covenants. |
|
|
|
|
Investment Rating 4 is used for investments that are performing below our expectations
and for which risk has increased materially since the original investment. We expect some
loss of investment return, but no loss of principal. |
|
|
|
|
Investment Rating 5 is used for investments that are performing substantially below our
expectations and whose risks have increased substantially since the original investment.
Investments with a rating of 5 are those for which some loss of principal is expected. |
At December 31, 2010, the distribution of our investments on the 1 to 5 investment rating scale at
fair value was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment at Fair |
|
Percentage of Total |
|
|
Investment Rating |
|
Value |
|
Portfolio |
|
Leverage Ratio |
1.
|
|
$ |
80,790,254 |
|
|
|
10.88 |
% |
|
|
3.00 |
|
2.
|
|
|
620,901,779 |
|
|
|
83.63 |
% |
|
|
3.40 |
|
3.
|
|
|
21,672,872 |
|
|
|
2.92 |
% |
|
|
11.16 |
|
4.
|
|
|
|
|
|
|
0.00 |
% |
|
|
|
|
5.
|
|
|
19,030,430 |
|
|
|
2.57 |
% |
|
NM1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
742,395,335 |
|
|
|
100.00 |
% |
|
|
3.25 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1Due to operating performance, this ratio is not measurable and, as a result, is
excluded from the total portfolio calculation. |
We may from time to time modify the payment terms of our investments, either in response to
current economic conditions and their impact on certain of our portfolio companies or in accordance
with tier pricing provisions in certain loan agreements. As of December 31, 2010, we had modified
the payment terms of our investments in four portfolio companies. Such modified terms include
increased PIK interest provisions and reduced cash interest rates. These modifications, and any
future modifications to our loan agreements, may limit the amount of interest income that we
recognize from the modified investments, which may, in turn, limit our ability to make
distributions to our stockholders.
At December 31, 2010, we had stopped accruing cash interest, PIK interest and OID on three
investments that had not paid all of their scheduled monthly cash interest payments for the period
ended December 31, 2010. At December 31, 2009, we had stopped accruing cash interest, PIK interest
and OID on five investments, including two investments that had not paid all of their scheduled
monthly cash interest payments.
Recent Developments
On January 4, 2011, we drew $22.0 million on the Wells Fargo facility. On January 28,
2011, we drew $25.0 million on the Wells Fargo facility. As of January 31, 2011, we had
$85.0 million outstanding under the facility.
On January 4, 2011, we closed a $19.0 million senior secured debt facility to support the
acquisition of a technology-enabled home-delivery pharmacy. The investment is backed by a
private equity sponsor and $17.0 million was funded at closing. The terms of this
investment include a $2.0 million revolver at an interest rate of LIBOR+6.0% per annum and
a $17.0 million Term Loan at an interest rate of LIBOR+10.5% per annum. This is a first
lien facility with a scheduled maturity of five years.
On January 6, 2011, we closed a $14.0 million senior secured debt facility to support the
acquisition of a provider of outsourced Medicaid eligibility services. The investment is
backed by a private equity sponsor and $12.0 million was funded at closing. The terms of
this investment include a $2.0 million revolver at an interest rate of LIBOR+6.5% per
annum with a 1.75% LIBOR floor, and a $12.0 million Term Loan at an interest rate of
LIBOR+10.0% per annum with a 1.75% LIBOR floor. This is a first lien facility with a
scheduled maturity of five years.
On January 6, 2011, we closed a $20.0 million senior secured debt facility to support the
acquisition of a manager and administrator of investment products. The investment is
backed by a private equity sponsor and $11.7 million was funded at closing. The terms of
this investment include a $20.0 million Term Loan at an interest rate of LIBOR+9.5% per
annum with a 2% LIBOR floor. This is a first lien facility with a scheduled maturity of
five years.
On January 14, 2011, we drew $12.0 million on the ING facility. On January 31, 2011, we
drew $27.0 million on the ING facility. As of January 31, 2011, we had $90.0 million
outstanding under the facility.
On January 14, 2011, we closed a $13.3 million senior secured debt facility to support the
acquisition of a provider of non-destructive pipe testing services. The investment is
backed by a private equity sponsor and $11.3 million was funded at closing. The terms of
this investment include a $2.0 million revolver at an interest rate of LIBOR+8.0% per
annum with a 2% LIBOR floor, a $5.3 million Term Loan A at an interest rate of LIBOR+8.0%
per annum with a 2% LIBOR floor, and a $6.0 million Term Loan B at an interest rate of
LIBOR+12% per annum with a 2% LIBOR floor. This is a first lien facility with a scheduled
maturity of five years.
On January 20, 2011, we closed a $10.0 million senior secured debt facility to support the
acquisition of an acquirer and operator of specialty pharmaceutical companies. The
investment is backed by a private equity sponsor and $10.0 million was funded at closing.
The terms of this investment include a $10.0 million Term Loan at an interest rate of
LIBOR+6.25% per annum with a 2% LIBOR floor. This is a first lien facility with a
scheduled maturity of five years.
On January 30, 2011, our Board of Directors declared the following dividends:
|
|
|
$0.1066 per share, payable on April 29, 2011 to stockholders of record on April
1, 2011; |
|
|
|
$0.1066 per share, payable on May 31, 2011 to stockholders of record on May 2,
2011; and |
|
|
|
$0.1066 per share, payable on June 30, 2011 to stockholders of record on June
1, 2011. |
On January 31, 2011, we paid a dividend in the amount of $0.1066 per share to stockholders
of record on January 4, 2011.
We are currently in negotiations with the lenders to the ING facility and new lender parties
thereto to potentially more than double our borrowing capacity under the ING facility, although we
have not yet obtained a commitment from these lenders for any such increase. As a result, there
are no assurances that we will be successful in our negotiations with these lenders or that we will
ultimately enter into any agreement with the lenders to expand our borrowing capacity under the ING
facility at all. In addition, any such agreement by these lenders to increase our borrowing
capacity under the ING facility may also be accompanied by other changes to the ING facility,
including changes to the maturity date of the ING facility.
In addition, we are also in the process of preparing an application to the SBA for a
second SBIC license. If approved, this license would provide us with the capability to
issue an additional $75 million of SBA-guaranteed debentures beyond the $150 million of
SBA-guaranteed debentures we, through our wholly-owned subsidiary, currently have the
ability to issue. However, there are no assurances that we will be successful in
obtaining a second SBIC license from the SBA.
Fifth Street Finance Corp.
Consolidated Statements of Assets and Liabilities
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
December 31, 2010 |
|
September 30, 2010 |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investments at fair value: |
|
|
|
|
|
|
|
|
Control investments (cost 12/31/10: $9,681,508; cost 9/30/10: $12,195,029) |
|
$ |
9,088,988 |
|
|
$ |
3,700,000 |
|
Affiliate investments (cost 12/31/10: $50,136,804; cost 9/30/10: $50,133,521) |
|
|
45,645,034 |
|
|
|
47,222,059 |
|
Non-control/Non-affiliate investments (cost 12/31/10: $695,146,171; cost
9/30/10: $530,168,045) |
|
|
687,661,313 |
|
|
|
512,899,257 |
|
Total
investments at fair value (cost 12/31/10: $754,964,483; cost 9/30/10: $592,496,595) |
|
|
742,395,335 |
|
|
|
563,821,316 |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
|
43,020,557 |
|
|
|
76,765,254 |
|
Interest and fees receivable |
|
|
4,663,901 |
|
|
|
3,813,757 |
|
Due from portfolio company |
|
|
151,962 |
|
|
|
103,426 |
|
Deferred financing costs |
|
|
7,026,645 |
|
|
|
5,465,964 |
|
Collateral posted to bank and other assets |
|
|
1,517,868 |
|
|
|
1,956,013 |
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
798,776,268 |
|
|
$ |
651,925,730 |
|
|
|
|
|
|
|
|
|
|
Liabilities and Net Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Accounts payable, accrued expenses and other liabilities |
|
$ |
708,382 |
|
|
$ |
1,322,282 |
|
Base management fee payable |
|
|
3,778,779 |
|
|
|
2,875,802 |
|
Incentive fee payable |
|
|
3,513,901 |
|
|
|
2,859,139 |
|
Due to FSC, Inc. |
|
|
1,261,541 |
|
|
|
1,083,038 |
|
Interest payable |
|
|
1,147,642 |
|
|
|
282,640 |
|
Payments received in advance from portfolio companies |
|
|
1,146,210 |
|
|
|
1,330,724 |
|
Loans payable |
|
|
89,000,000 |
|
|
|
|
|
SBA debentures payable |
|
|
123,300,000 |
|
|
|
73,000,000 |
|
Total Liabilities |
|
|
223,856,455 |
|
|
|
82,753,625 |
|
|
|
|
|
|
|
|
|
|
Net Assets: |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 150,000,000 shares authorized, 55,059,057 and
54,550,290 shares issued and outstanding at December 31, 2010 and September
30, 2010 |
|
|
550,591 |
|
|
|
545,503 |
|
Additional paid-in-capital |
|
|
625,519,180 |
|
|
|
619,759,984 |
|
Net unrealized depreciation on investments and interest rate swap |
|
|
(12,606,190 |
) |
|
|
(29,448,713 |
) |
Net realized loss on investments |
|
|
(46,541,180 |
) |
|
|
(33,090,961 |
) |
Accumulated undistributed net investment income |
|
|
7,997,412 |
|
|
|
11,406,292 |
|
Total Net Assets (equivalent to $10.44 and $10.43 per common share at
December 31, 2010 and September 30, 2010) |
|
|
574,919,813 |
|
|
|
569,172,105 |
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Net Assets |
|
$ |
798,776,268 |
|
|
$ |
651,925,730 |
|
Fifth Street Finance Corp.
Consolidated Statements of Operations
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months |
|
Three months |
|
|
ended December 31, |
|
ended December 31, |
|
|
2010 |
|
2009 |
Interest income: |
|
|
|
|
|
|
|
|
Control investments |
|
$ |
969 |
|
|
$ |
224,746 |
|
Affiliate investments |
|
|
1,162,516 |
|
|
|
2,259,501 |
|
Non-control/Non-affiliate investments |
|
|
16,489,184 |
|
|
|
7,673,326 |
|
Interest on cash and cash equivalents |
|
|
9,136 |
|
|
|
195,662 |
|
Total interest income |
|
|
17,661,805 |
|
|
|
10,353,235 |
|
|
|
|
|
|
|
|
|
|
PIK interest income: |
|
|
|
|
|
|
|
|
Control investments |
|
|
33,333 |
|
|
|
|
|
Affiliate investments |
|
|
281,800 |
|
|
|
331,616 |
|
Non-control/Non-affiliate investments |
|
|
2,828,555 |
|
|
|
1,630,158 |
|
Total PIK interest income |
|
|
3,143,688 |
|
|
|
1,961,774 |
|
|
|
|
|
|
|
|
|
|
Fee income: |
|
|
|
|
|
|
|
|
Control investments |
|
|
126,486 |
|
|
|
|
|
Affiliate investments |
|
|
133,554 |
|
|
|
253,777 |
|
Non-control/Non-affiliate investments |
|
|
4,267,216 |
|
|
|
661,364 |
|
Total fee income |
|
|
4,527,256 |
|
|
|
915,141 |
|
|
|
|
|
|
|
|
|
|
Dividend and other income: |
|
|
|
|
|
|
|
|
Control investments |
|
|
|
|
|
|
|
|
Affiliate investments |
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
2,434 |
|
|
|
11,333 |
|
Total dividend and other income |
|
|
2,434 |
|
|
|
11,333 |
|
|
|
|
|
|
|
|
|
|
Total Investment Income |
|
|
25,335,183 |
|
|
|
13,241,483 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Base management fee |
|
|
3,778,779 |
|
|
|
2,267,003 |
|
Incentive fee |
|
|
3,513,901 |
|
|
|
2,087,264 |
|
Professional fees |
|
|
690,489 |
|
|
|
301,605 |
|
Board of Directors fees |
|
|
49,500 |
|
|
|
38,000 |
|
Interest expense |
|
|
1,938,710 |
|
|
|
91,179 |
|
Administrator expense |
|
|
354,169 |
|
|
|
251,818 |
|
General and administrative expenses |
|
|
954,033 |
|
|
|
582,623 |
|
Total expenses |
|
|
11,279,581 |
|
|
|
5,619,492 |
|
Base management fee waived |
|
|
|
|
|
|
(727,067 |
) |
Net expenses |
|
|
11,279,581 |
|
|
|
4,892,425 |
|
|
|
|
|
|
|
|
|
|
Net Investment Income |
|
|
14,055,602 |
|
|
|
8,349,058 |
|
Unrealized appreciation on interest rate swap |
|
|
736,390 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized appreciation (depreciation) on investments: |
|
|
|
|
|
|
|
|
Control investments |
|
|
8,070,596 |
|
|
|
1,993,222 |
|
Affiliate investments |
|
|
(1,580,308 |
) |
|
|
399,934 |
|
Non-control/Non-affiliate investments |
|
|
9,615,845 |
|
|
|
(1,393,862 |
) |
Net unrealized appreciation on investments |
|
|
16,106,133 |
|
|
|
999,294 |
|
|
|
|
|
|
|
|
|
|
Realized gain (loss) on investments: |
|
|
|
|
|
|
|
|
Control investments |
|
|
(7,765,119 |
) |
|
|
|
|
Affiliate investments |
|
|
|
|
|
|
|
|
Non-control/Non-affiliate investments |
|
|
(5,685,100 |
) |
|
|
106,000 |
|
Net realized gain (loss) on investments |
|
|
(13,450,219 |
) |
|
|
106,000 |
|
|
|
|
|
|
|
|
|
|
Net increase in net assets resulting from operations |
|
$ |
17,447,906 |
|
|
$ |
9,454,352 |
|
|
|
|
|
|
|
|
|
|
Net investment income per common share basic and diluted |
|
$ |
0.26 |
|
|
$ |
0.22 |
|
Earnings per common share basic and diluted |
|
$ |
0.32 |
|
|
$ |
0.25 |
|
Weighted average common shares basic and diluted |
|
|
54,641,164 |
|
|
|
37,880,435 |
|
About Fifth Street Finance Corp.
Fifth Street Finance Corp. is a specialty finance company that lends to and invests in small and
mid-sized companies in connection with investments by private equity sponsors. Fifth Street Finance
Corp.s investment objective is to maximize its portfolios total return by generating current
income from its debt investments and capital appreciation from its equity investments.
Forward-Looking Statements
This press release may contain certain forward-looking statements, including statements with regard
to the future performance of Fifth Street Finance Corp. Words such as believes, expects,
projects, anticipates, and future or similar expressions are intended to identify
forward-looking statements. These forward-looking statements are subject to the inherent
uncertainties in predicting future results and conditions. Certain factors could cause actual
results to differ materially from those projected in these forward-looking statements, and these
factors are identified from time to time in Fifth Street Finance Corp.s filings with the
Securities and Exchange Commission. Fifth Street Finance Corp. undertakes no obligation to publicly
update or revise any forward-looking statements, whether as a result of new information, future
events or otherwise.
|
|
|
CONTACT: |
|
Fifth Street Finance Corp.
Stacey Thorne, Executive Director, Investor Relations
(914) 286-6811
stacey@fifthstreetfinance.com |