- GAAP Net investment loss of ($0.03) per
share, or net investment income of $0.21 per share excluding a
one-time legal settlement expense, providing distribution coverage
of 101%
- 0.55x net leverage reflecting a net
reduction in investments, and a 8.2% decline in NAV to $8.38 per
share primarily resulting from further net unrealized depreciation
on legacy assets and a one-time legal settlement expense of $17.5
million
- Total liquidity of $271 million, or
$253 million adjusting for a one-time legal settlement expense
- Increased our exposure to traditional
first lien senior secured debt through our newly formed joint
venture, BCIC Senior Loan Partners, LLC; representing nearly half
of our gross deployments during the third quarter
BlackRock Capital Investment Corporation (NASDAQ:BKCC)
(“BlackRock Capital Investment Corporation” or the “Company,” “we,”
“us” or “our”) announced today that its Board of Directors declared
a quarterly distribution of $0.21 per share, payable on January 2,
2017 to stockholders of record as of December 19, 2016.
“The third quarter proved to be another difficult period for the
Company as we continue to work through issues pertaining to the
legacy portfolio, including the previously disclosed pending
settlement of the AL Solutions litigation. To be clear, the
Company’s portfolio challenges remain concentrated in legacy
investments. Since March 6, 2015, which is when we assumed
responsibility for managing the investment activities of the
Company, our team has deployed over $400 million in performing new
investments,” commented Steven F. Sterling, Chairman and CEO of
BlackRock Capital Investment Corporation.
“The Company’s financial position with moderate net leverage at
.55x and good liquidity at $253 million continues to afford us the
flexibility to navigate the challenges and to execute on the
deployment of new capital. That said, there remain lumpy positions
requiring special attention that will constrain our pace of capital
deployment. Further, general market conditions have become less
compelling for junior debt investments, thus 70% of our deployment
during the quarter was centered on investments in BCIC Senior Loan
Partners, which was formed during 2Q, and our portfolio company
Gordon Brothers Finance Company wherein the risk-adjusted return in
the underlying first lien exposure is more attractive.
“From an idea generation perspective, we saw a 65% increase,
sequentially, in investment opportunities. This included a rise in
ideas referred to us by BlackRock’s Global Capital Markets team. On
an annualized basis through the third quarter, the team’s idea
generation is the highest observed over the last 5 years. This
momentum continued into the fourth quarter. However, overall deal
quality has diminished as evidenced by the recent notable rise in
dividend recapitalizations and covenant lite transactions.”
Financial Highlights
Q3
2016 Q2 2016 Q3 2015 Total
Per Total Per Total
Per ($'s in millions, except per share data)
Amount Share Amount
Share Amount Share
Net Investment Income/(loss) $ (2.1 ) $ (0.03 ) $ 21.6 $ 0.30 $
23.8 $ 0.32 Net realized and unrealized gains/(losses) $ (36.9 ) $
(0.51 ) $ (31.2 ) $ (0.43 ) $ (2.1 ) $ (0.03 ) Basic
earnings/(loss) per share $ (39.1 ) $ (0.54 ) $ (9.6 ) $ (0.13 ) $
21.7 $ 0.29 Distributions declared $ 15.2 $ 0.21 $ 15.2 $ 0.21 $
15.7 $ 0.21 Net Investment Income/(loss), as adjusted1 $
(2.1 ) $ (0.03 ) $ 21.6 $ 0.30 $ 17.7 $ 0.24
Basic earnings/(loss) per share, as
adjusted1
$ (39.1 ) $ (0.54 ) $ (9.6 ) $ (0.13 )
$ 15.7 $ 0.21
As of
As of As of As of
September 30, June 30, December 31,
September 30, ($'s in millions, except per share
data) 2016 2016 2015
2015 Total assets $ 971.3 $ 1,036.8 $ 1,148.4
$ 1,194.3 Investment portfolio, at fair market value $ 946.6 $
1,011.9 $ 1,117.0 $ 1,149.8 Debt outstanding $ 321.4 $ 348.1 $
362.6 $ 374.2 Total net assets $ 608.1 $ 661.4 $ 753.8 $ 790.7 Net
asset value per share $ 8.38 $ 9.13 $ 10.17 $ 10.66
Net leverage ratio2
0.55x 0.52x 0.47x 0.45x
Business Updates
- As previously disclosed, the Company
has been named as a defendant, together with 52nd Street Capital
Advisors LLC (“52nd Street”), our former investment adviser, and
certain other defendants, in two wrongful death and personal injury
actions that were filed by the families of the three decedents and
certain injured persons (the “Plaintiffs”) on June 22, 2012 and
August 23, 2012, in the Circuit Court of Hancock County in West
Virginia. The Company and 52nd Street have reached an agreement in
principle with the Plaintiffs to settle actions for $17.5 million
(the “Settlement Payment”). Although a definitive settlement
agreement remains subject to final documentation and Court
approval, the Company has determined that it is reasonably likely
to enter into a definitive settlement agreement with the
Plaintiffs, and the Settlement Payment has been accrued as of
September 30, 2016, and is expected to be paid during the fourth
quarter using available cash and amounts available under its credit
facility.
- The New Gulf Resources, LLC (“New
Gulf”) restructuring was finalized as the company emerged from
bankruptcy and subsequently changed its name to ETX Energy, LLC.
Our $21.0 million par senior secured notes, $4.5 million par senior
subordinated PIK notes and 4,000 shares of equity warrants with a
$1.6 million aggregate fair market value as of the prior quarter
end, were exchanged for 5.1% combined ownership in ETX Energy, LLC
and ETX Energy Management Company, LLC. The result was an
incremental net realized and unrealized loss of $1.6 million during
the quarter.
- BCIC Senior Loan Partners, LLC (“Senior
Loan Partners”), a recently formed joint venture with Windward
Investments LLC, began making investments during the quarter.
During the third quarter, Senior Loan Partners made investments in
three new portfolio companies with committed and outstanding
amounts of $26.6 million and $24.5 million, respectively. The three
new investments at par are (i) a $10.0 million first lien term loan
to AP Plastics Group, LLC, a provider of high quality PVC compounds
primarily used to make vinyl for building product applications,
(ii) a $7.0 million first lien term loan to Pasternack Enterprises,
Inc., a leading distributor of engineering-grade components for
radio frequency equipment and (iii) a $7.5 million first lien in
NSM Sub Holdings Corp., a provider of complex rehab technology
solutions for patients with loss of mobility. Additionally, Senior
Loan Partners had unfunded commitments of approximately $2.1
million to NSM Sub Holdings Corp.
- Since inception of our share repurchase
program through September 30, 2016, we have purchased 4.6 million
shares at an average price of $7.98 per share, including brokerage
commissions, for a total of $36.3 million. There were no share
repurchases during the third quarter. The cumulative repurchases
since BlackRock entered into the investment management agreement
with the Company totaled approximately 2.8 million shares for $24.0
million, representing 66% of total share repurchase activity, on a
dollar basis, since inception. As of quarter-end, the Company had
approximately 1.2 million additional shares authorized for
repurchase.
___________________1 Non-GAAP basis financial measure. See
Supplemental Information on page 8.2 Calculated less available cash
and receivable for investments sold, plus payable for investments
purchased, unamortized debt issuance costs and legal settlement
payable.
Portfolio and Investment
Activity*($’s in millions)
Three months ended
September 30, 2016
Three months ended June
30, 2016
Three months ended
September 30, 2015
Commitments $ 43.8 $ 76.3 $
76.9 Investment exits $ 73.6 $ 161.4 $ 10.8 Number of
portfolio company investments at the end of period 38 40 43
Weighted average yield of debt and income producing equity
securities, at fair market value 11.4% 11.1% 11.6% % of Portfolio
invested in Secured debt, at fair market value 69% 72% 72% % of
Portfolio invested in Unsecured debt, at fair market value 16% 14%
18% % of Portfolio invested in Equity, at fair market value 15% 14%
10% Average investment by portfolio company, at amortized cost
(excluding investments below $5.0 million) $ 32.6
$ 33.3 $ 33.5
*balance sheet amounts above are as of period end
- We invested $43.8 million during the
quarter, while sales, repayments and other exits of investments
totaled $73.6 million, resulting in a $29.8 million net decrease in
our portfolio due to investment activity. Approximately 93% of our
proceeds from exits during the quarter were represented by one
portfolio company, MediMedia USA, Inc., while approximately 70% of
our deployments during the quarter were through Senior Loan
Partners and Gordon Brothers Finance Company, two existing
portfolio companies that primarily invest in senior secured, first
lien exposure with attractive risk-adjusted returns.
- Our non-accrual rate declined compared
to the prior quarter as a result of the aforementioned
restructuring of New Gulf. As of September 30, 2016, our
non-accruals were 4.0% of our total debt investments at fair market
value, and 11.1% at amortized cost, compared with 5.0% and 12.7%,
respectively, for the prior quarter. Our average internal
investment rating at fair market value declined to 1.40 at the end
of this quarter, from 1.31 last quarter end.
- The portion of our portfolio invested
in equity securities increased one percentage point during the
quarter to 15% at quarter end, due primarily to the deployment of
$21.0 million of equity capital into our newly formed joint
venture, BCIC Senior Loan Partners, LLC. Our portfolio composition
of secured debt, at fair market value, decreased three percentage
points to 69% at quarter end, primarily resulting from the early
repayment of MediMedia USA, Inc. during the quarter. Unsecured debt
increased two percentage points to 16%, due to a combination of
deployments during the quarter as well as net depreciation in our
total portfolio resulting in a smaller overall portfolio at fair
market value. Total portfolio yield increased 30 basis points
sequentially, largely a result of New Gulf converting from
non-accruing debt to equity during the current quarter.
- Net unrealized depreciation increased
$10.4 million during the current quarter, bringing total balance
sheet unrealized depreciation to $104.7 million. During the period,
gross unrealized depreciation of $36.1 million primarily from
legacy assets was partially offset by $3.0 million of gross
unrealized appreciation. Further, there was $22.8 million of
unrealized appreciation during the quarter due primarily to the
reversal of previously recognized unrealized depreciation on the
New Gulf investment.
- Fee income earned on capital
structuring, prepayments, commitment, administration and amendments
during the current quarter totaled $0.5 million, as compared to
$4.1 million earned during the preceding quarter, and $1.9 million
earned during the prior year quarter. Excluding fee income and the
impact of a $2.9 million quarterly reduction to investment income
due to non-accruals, investment income would have decreased
approximately 11% versus the prior year quarter, as a result of a
net reduction in the overall income producing assets over the
comparable periods.
Third Quarter Financial Updates
- Both GAAP Net Investment Income/(Loss)
(“NII/NIL”), and NIL, as adjusted, were ($2.1) million, or ($0.03)
per share, for the three months ended September 30, 2016, which
included the impact of a one-time legal settlement expense of $17.5
million. Excluding this one-time expense, NII was $15.4 million, or
$0.21 per share, for distribution coverage of 101%. As of
quarter-end, our run rate NII, as adjusted, is $0.22 per share
based on average fee income over the trailing twelve month period,
and $0.20 per share excluding any fee income. These imply expected
distribution coverages of 105% and 94%, respectively.
- During the quarter, there was no
accrual for incentive management fees based on gains due largely to
the net unrealized depreciation in the portfolio as of September
30, 2016. A hypothetical liquidation is performed each quarter end
resulting in an additional accrual if the amount is positive or a
reversal to the existing accrual if the amount is negative.
However, the resulting fee accrual is not due and payable until
June 30, if at all. There is currently no balance accrued for
incentive management fees based on gains as of the measurement
period ending September 30, 2016. Furthermore, no incentive
management fees based on income were earned and payable for the
quarter, as the distributable income amount was reduced below the
hurdle by the net unrealized depreciation in the portfolio for the
trailing four quarter period. As a result, there were no pro-forma
incentive management fees based on income for the quarter causing
our NIL, as adjusted, to equal our GAAP NIL of $(0.03) per
share.
- As compared to the comparable 2015
period weighted average, our nine month 2016 weighted average cost
of debt decreased approximately 100 bps to 4.35%. This was
primarily driven by (i) refinancing our $158 million 6.5% senior
secured notes with proceeds from our revolving credit facility and
(ii) the subsequent lowering of the interest rate margin on the
credit facility pursuant to the amendment and restatement earlier
in the year. Borrowing costs for the nine month period of 2016, on
a dollar basis, are more than 30% lower than that of the comparable
2015 period.
- Tax characteristics of all 2015
distributions were reported to stockholders on Form 1099 after the
end of the calendar year. Our 2015 tax distributions of $1.05 per
share were comprised of ordinary income. Our return of capital
distributions since inception are $1.96 per share. At our
discretion, we may carry forward taxable income in excess of
calendar year distributions and pay a 4% excise tax on this income.
We will accrue excise tax on estimated undistributed taxable income
as required. There was no undistributed taxable income carried
forward from 2015. For more information on our GAAP distributions,
please refer to the Section 19 Notice that may be posted within the
Distribution History section of our website.
Liquidity and Capital Resources
- At September 30, 2016, we had total
liquidity of $270.9 million, consisting of $6.9 million in cash and
cash equivalents and $264.0 million of availability under our
credit facility, subject to leverage and borrowing base
restrictions. The credit facility was amended and extended during
the first quarter to a February 2021 maturity.
- Our net leverage, adjusted for
available cash, receivables for investments sold, payables for
investments purchased, unamortized debt issuance costs and a legal
settlement payable, stood at 0.55x at quarter-end, and our 288%
asset coverage ratio provided the Company with available debt
capacity under its asset coverage requirements of $284.4 million.
Further, as of quarter-end, 88% of our portfolio was invested in
qualifying assets, exceeding the 70% regulatory requirement of a
business development company.
Conference Call
BlackRock Capital Investment Corporation will host a
webcast/teleconference at 10:00 a.m. (Eastern Time) on Thursday,
November 3, 2016, to discuss its third quarter 2016 financial
results. All interested parties are welcome to participate. You can
access the teleconference by dialing, from the United States, (866)
409-1555, or from outside the United States, (913) 312-1444,
shortly before 10:00 a.m. and referencing the BlackRock Capital
Investment Corporation Conference Call (ID Number 2826956). A live,
listen-only webcast will also be available via the investor
relations section of www.blackrockbkcc.com. Both the teleconference
and webcast will be available for replay by 1:00 p.m. on Thursday,
November 3, 2016 and ending at 1:00 p.m. on Thursday, November 17,
2016. To access the replay of the teleconference, callers from the
United States should dial (888) 203-1112 and callers from outside
the United States should dial (719) 457-0820 and enter the
Conference ID Number 2826956.
Prior to the webcast/teleconference, an investor presentation
that complements the earnings conference call will be posted to
BlackRock Capital Investment Corporation’s website within the
presentations section of the investor relations page
(http://www.blackrockbkcc.com/InvestorRelations/Presentations/index.htm).
BlackRock Capital Investment Corporation
Consolidated Statements of Assets and Liabilities
(Unaudited)
September 30, December 31, 2016
2015 Assets Investments at fair value:
Non-controlled, non-affiliated investments (cost of $691,723,702
and $876,732,386) $ 589,930,309 $ 826,766,931 Non-controlled,
affiliated investments (cost of $58,605,978 and $62,003,676)
59,048,465 67,163,896 Controlled investments (cost of $299,356,072
and $214,393,103) 297,615,553
223,065,737 Total investments at fair value (cost of
$1,049,685,752 and $1,153,129,165) 946,594,327 1,116,996,564 Cash
and cash equivalents 6,917,319 12,414,200 Receivable for
investments sold 501,876 1,408,841 Interest receivable 11,052,549
13,531,749 Prepaid expenses and other assets 6,210,311
4,040,147 Total Assets $ 971,276,382
$ 1,148,391,501
Liabilities Payable for
investments purchased $ 88,789 $ — Debt 321,387,256 362,551,503
Interest payable 1,098,658 7,826,690 Distributions payable
15,236,372 15,560,829 Base management fees payable 5,188,116
5,986,455 Accrued administrative services — 219,917 Legal
settlement payable (See Note 9) 17,500,000 — Other accrued expenses
and payables 2,661,524 2,493,492
Total Liabilities 363,160,715
394,638,886
Net Assets
Common stock, par value $.001 per share,
200,000,000 common sharesauthorized, 77,106,093 and 76,747,083
issued and 72,554,128 and 74,099,182 outstanding
77,106 76,747 Paid-in capital in excess of par 876,341,036
873,338,049 Undistributed / (Distributions in excess of) net
investment income (8,807,961 ) (17,112 ) Accumulated net realized
loss (118,452,947 ) (60,922,258 ) Net unrealized appreciation
(depreciation) (104,738,746 ) (38,513,195 ) Treasury stock at cost,
4,551,965 and 2,647,901 shares held (36,302,821 )
(20,209,616 ) Total Net Assets 608,115,667
753,752,615 Total Liabilities and Net Assets $
971,276,382 $ 1,148,391,501 Net Asset Value
Per Share $ 8.38 $ 10.17
Three months Three months Nine
months Nine months
ended ended ended ended
BlackRock Capital Investment
Corporation
September 30,
September 30,
September 30,
September 30,
Consolidated Statements of Operations (Unaudited)
2016
2015
2016
2015
Investment Income: Interest income: Non-controlled,
non-affiliated investments $ 17,139,313 $ 24,580,626 $ 60,619,008 $
71,305,161 Non-controlled, affiliated investments 1,253,797
1,403,530 3,885,738 4,425,767 Controlled investments
5,259,605 4,424,566
14,388,693 13,756,072 Total interest
income 23,652,715 30,408,722 78,893,439 89,487,000 Fee income:
Non-controlled, non-affiliated investments: prepayment fees 6,644 —
3,006,644 1,159,150 Non-controlled, non-affiliated investments:
capital structuring fees — 1,097,139 1,077,569 1,127,139
Non-controlled, non-affiliated investments: other 350,116 670,352
1,136,841 1,444,735 Controlled investments 182,328
127,350 251,750
303,033 Total fee income 539,088
1,894,841 5,472,804
4,034,057 Dividend income: Non-controlled,
non-affiliated investments 188,017 416,294 586,219 818,041
Non-controlled, affiliated investments 608,970 411,647 1,691,344
1,221,488 Controlled investments 1,164,662
808,524 2,775,603
2,066,515 Total dividend income 1,961,649
1,636,465 5,053,166
4,106,044 Total investment income
26,153,452 33,940,028
89,419,409 97,627,101
Expenses:
Legal settlement (See Note 9) 17,500,000 — 17,500,000 — Base
management fees 5,188,115 5,784,734 16,600,294 18,691,632 Interest
and credit facility fees 3,831,364 5,806,749 12,641,384 18,385,547
Incentive management fees — (4,224,731 ) — (3,189,459 )
Professional fees 575,000 585,752 1,679,000 1,725,404
Administrative services 295,477 277,893 1,051,417 1,394,644
Director fees 160,250 187,000 521,750 523,500 Investment advisor
expenses 87,500 309,730 262,500 714,343 Other 646,737
1,417,751 2,208,862
2,724,856 Total expenses 28,284,443
10,144,878 52,465,207
40,970,467
Net Investment Income
(Loss) (2,130,991 ) 23,795,150
36,954,202 56,656,634
Realized and Unrealized Gain (Loss): Net realized gain
(loss): Non-controlled, non-affiliated investments (25,059,103 )
2,585,808 (55,998,664 ) 26,448,361 Non-controlled, affiliated
investments — — — 121,381,408 Controlled investments
(1,532,024
)
— (1,532,024 )
(18,585,006 ) Net realized gain (loss) (26,591,127 )
2,585,808 (57,530,688 )
129,244,763 Net change in unrealized appreciation
(depreciation) on: Non-controlled, non-affiliated investments
(1,887,748 ) (10,758,801 ) (53,904,719 ) (27,727,694 )
Non-controlled, affiliated investments (5,478,931 ) (398,513 )
(2,268,111 ) (117,257,791 ) Controlled investments (2,909,601 )
6,985,460 (10,413,153 ) 19,230,175 Foreign currency translation
(74,783 ) (481,276 ) 360,432
(1,024,639 ) Net change in unrealized
appreciation (depreciation) (10,351,063 )
(4,653,130 ) (66,225,551 ) (126,779,949
) Net realized and unrealized gain (loss) (36,942,190 )
(2,067,322 ) (123,756,239 )
2,464,814
Net Increase (Decrease) in Net Assets
Resulting from Operations $ (39,073,181 ) $ 21,727,828
$ (86,802,037 ) $ 59,121,448
Net
Investment Income (Loss) Per Share Basic $ (0.03 ) $
0.32 $ 0.51 $ 0.76 Diluted $
(0.03 ) $ 0.30 $ 0.51 $ 0.73
Earnings (Loss) Per Share Basic $ (0.54 ) $
0.29 $ (1.19 ) $ 0.79 Diluted $ (0.54 )
$ 0.28 $ (1.19 ) $ 0.76
Average Shares Outstanding Basic 72,554,128
74,670,477 72,786,313
74,702,748 Diluted 72,554,128
84,567,205 72,786,313
84,599,475
Distributions Declared Per
Share $ 0.21 $ 0.21 $ 0.63
$ 0.63
Supplemental Information
The Company reports its financial results on a GAAP basis;
however, management believes that evaluating the Company’s ongoing
operating results may be enhanced if investors have additional
non-GAAP basis financial measures. Management reviews non-GAAP
financial measures to assess ongoing operations and, for the
reasons described below, considers them to be effective indicators,
for both management and investors, of the Company’s financial
performance over time. The Company’s management does not advocate
that investors consider such non-GAAP financial measures in
isolation from, or as a substitute for, financial information
prepared in accordance with GAAP.
The Company records its liability for incentive management fees
based on income as it becomes legally obligated to pay them, based
on a hypothetical liquidation at the end of each reporting period.
The Company’s obligation to pay incentive management fees with
respect to any fiscal quarter is based on a formula that reflects
the Company’s results over a trailing four-fiscal quarter period
ending with the current fiscal quarter. The Company is legally
obligated to pay the amount resulting from the formula less any
cash payments of incentive management fees during the prior three
quarters. The formula’s requirement to reduce the incentive
management fee by amounts paid with respect to such fees in the
prior three quarters has caused the Company’s incentive management
fee expense to become, and currently is expected to be,
concentrated in the fourth quarter of each year. Management
believes that reflecting incentive management fees throughout the
year, as the related investment income is earned, is an effective
measure of the Company’s profitability and financial performance
that facilitates comparison of current results with historical
results and with those of the Company’s peers. The Company’s “as
adjusted” results reflect incentive management fees based on the
formula the Company utilizes for each trailing four-fiscal quarter
period, with the formula applied to the current quarter’s
incremental earnings and without any reduction for incentive
management fees paid during the prior three quarters. The resulting
amount represents an upper limit of each quarter’s incremental
incentive management fees that the Company may become legally
obligated to pay at the end of the year. Prior year amounts are
estimated in the same manner. These estimates represent upper
limits because, in any calendar year, subsequent quarters’
investment underperformance could reduce the incentive management
fees payable by the Company with respect to prior quarters’
operating results. Similarly, the Company records its liability for
incentive management fees based on capital gains by performing a
hypothetical liquidation at the end of each reporting period. The
accrual of this hypothetical capital gains incentive management fee
is required by GAAP, but it should be noted that a fee so
calculated and accrued is not due and payable until the end of the
measurement period, or every June 30. The incremental incentive
management fees disclosed for a given period are not necessarily
indicative of actual full year results. Changes in the economic
environment, financial markets and other parameters used in
determining such estimates could cause actual results to differ and
such differences could be material. For a more detailed description
of the Company’s incentive management fee, please refer to the
Company's Annual Report on Form 10-K/A for the fiscal year ended
December 31, 2015, on file with the Securities and Exchange
Commission ("SEC").
Computations for the periods below are derived from the
Company's financial statements as follows:
Three months ended
September 30, 2016
Three months ended
September 30, 2015
Nine months ended
September 30, 2016
Nine months ended
September 30, 2015
GAAP Basis: Net Investment
Income/(Loss) $ (2,130,991) $ 23,795,150 $ 36,954,202 $ 56,656,634
Net Investment Income/(Loss) per share (0.03) 0.32 0.51 0.76
Addback: GAAP incentive management fee expense based on Gains —
(4,224,731) — (3,200,520) Addback: GAAP incentive management fee
expense based on Income — — — 11,061
Pre-Incentive
Fee1: Net Investment Income/(Loss) $ (2,130,991)
$ 19,570,419 $ 36,954,202 $ 53,467,175 Net Investment Income/(Loss)
per share (0.03) 0.26 0.51 0.72 Less: Incremental incentive
management fee expense based on Income — 1,821,960 — 3,180,456
As Adjusted2: Net Investment Income/(Loss) $
(2,130,991) $ 17,748,459 $ 36,954,202 $ 50,286,719 Net Investment
Income/(Loss) per share (0.03) 0.24 0.51
0. 67
1 Pre-Incentive Fee: Amounts are adjusted to
remove all incentive management fees. Such fees are calculated but
not necessarily due and payable at this time.
2 As Adjusted: Amounts are adjusted to remove the
incentive management fee expense based on gains, as required by
GAAP, and to include only the incremental incentive management fee
expense based on Income. The incremental incentive management fee
is calculated based on the current quarter's incremental earnings,
and without any reduction for incentive management fees paid during
the prior calendar quarters. Amounts reflect the Company's ongoing
operating results and reflect the Company's financial performance
over time.
About BlackRock Capital Investment Corporation
BlackRock Capital Investment Corporation is a business
development company that provides debt and equity capital to
middle-market companies.
The Company's investment objective is to generate both current
income and capital appreciation through debt and equity
investments. The Company invests primarily in middle-market
companies in the form of senior and junior secured and unsecured
debt securities and loans, each of which may include an equity
component, and by making direct preferred, common and other equity
investments in such companies.
Forward-looking statements
This press release, and other statements that BlackRock Capital
Investment Corporation may make, may contain forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act, with respect to BlackRock Capital Investment
Corporation’s future financial or business performance, strategies
or expectations. Forward-looking statements are typically
identified by words or phrases such as “trend,” “potential,”
“opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,”
“assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,”
“seek,” “achieve,” and similar expressions, or future or
conditional verbs such as “will,” “would,” “should,” “could,” “may”
or similar expressions.
BlackRock Capital Investment Corporation cautions that
forward-looking statements are subject to numerous assumptions,
risks and uncertainties, which may change over time.
Forward-looking statements speak only as of the date they are made,
and BlackRock Capital Investment Corporation assumes no duty to and
does not undertake to update forward-looking statements. Actual
results could differ materially from those anticipated in
forward-looking statements and future results could differ
materially from historical performance.
In addition to factors previously disclosed in BlackRock Capital
Investment Corporation’s SEC reports and those identified elsewhere
in this press release, the following factors, among others, could
cause actual results to differ materially from forward-looking
statements or historical performance: (1) our future operating
results; (2) our business prospects and the prospects of our
portfolio companies; (3) the impact of investments that we expect
to make; (4) our contractual arrangements and relationships with
third parties; (5) the dependence of our future success on the
general economy and its impact on the industries in which we
invest; (6) the ability of our portfolio companies to achieve their
objectives; (7) our expected financings and investments; (8) the
adequacy of our cash resources and working capital, including our
ability to obtain continued financing on favorable terms; (9) the
timing of cash flows, if any, from the operations of our portfolio
companies; (10) the impact of increased competition; (11) the
ability of our investment advisor to locate suitable investments
for us and to monitor and administer our investments; (12)
potential conflicts of interest in the allocation of opportunities
between us and other investment funds managed by our investment
advisor or its affiliates; (13) the ability of our investment
advisor to attract and retain highly talented professionals; (14)
fluctuations in foreign currency exchange rates; and (15) the
impact of changes to tax legislation and, generally, our tax
position.
BlackRock Capital Investment Corporation’s Annual Report on Form
10-K/A for the year ended December 31, 2015, filed with the SEC
identifies additional factors that can affect forward-looking
statements.
Available Information
BlackRock Capital Investment Corporation’s filings with the SEC,
press releases, earnings releases and other financial information
are available on its website at www.blackrockbkcc.com. The
information contained on our website is not a part of this press
release.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20161102006474/en/
BlackRock Capital Investment CorporationInvestors:Nik
Singhal, 212-810-5427orPress:Brian Beades, 212-810-5596
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