Harvest Capital Credit Corporation (“Harvest Capital” or the
“Company”) (NASDAQ: HCAP) announced that its Board of Directors
declared distributions of $0.1125 per share for the months of
October, November and December. The October distribution is payable
on November 30, 2017 to shareholders of record on November 24,
2017. The November distribution is payable on December 29, 2017 to
shareholders of record on December 22, 2017. The December
distribution is payable on January 26, 2018 to shareholders of
record on January 19, 2018. The Company's distributions may include
a return of capital to shareholders to the extent that the
Company's net investment income and net capital gains are
insufficient to support the distributions. Distributions that are
treated for tax purposes as a return of capital will reduce each
shareholder's basis in his, her or its shares. Returns of
shareholder capital also have the effect of reducing the Company's
assets.
FINANCIAL HIGHLIGHTS
Q3-17 Q3-16 YTD-17 YTD-16 Amount
Per share Amount Per share Amount Per share
Amount Per share
Net investment income $1,559,983
$0.24 $2,978,672 $0.47 $6,312,346 $0.99 $7,619,546 $1.21
Core
net investment income (1) $2,296,786 $0.36 $2,978,672 $0.47
$7,049,149 $1.10 $7,619,546 $1.21 Net realized (losses) gains on
investments ($8,333,556) ($1.29) $701,879 $0.11 ($8,062,441)
($1.26) ($462,680) ($0.07) Net change in unrealized appreciation
(depreciation) $6,440,422 $1.00 ($1,310,501) ($0.20) $1,890,658
$0.29 ($3,927,150) ($0.63)
Net (loss) income ($333,151)
($0.05) $2,370,050 $0.38 $140,563 $0.02 $3,229,716 $0.51 Weighted
average shares outstanding (basic and diluted) 6,415,099 6,286,216
6,391,134 6,282,371 (1) Core net investment income
and core net investment income per share are non-GAAP financial
measures. Reconciliations of core net investment income and core
net investment income per share to the most directly comparable
GAAP financial measure and other information regarding these
non-GAAP financial measures are set forth in Schedule 1 hereto.
PORTFOLIO ACTIVITY
September 30,2017
December 31,2016
Portfolio investments at fair value $ 113,521,938 $
134,101,534 Total assets $ 117,049,784 $ 142,989,647 Net assets $
82,565,983 $ 87,122,296 Shares outstanding 6,419,820 6,287,496 Net
asset value per share $ 12.86 $ 13.86
Q3-17
Q3-16 YTD - 17 YTD -16 Portfolio
activity during the period: New debt investments $ 10,200,000 $
5,580,723 $ 40,727,222 $ 25,880,723 New equity investments 950,000
— 3,593,640 3,900,000 Exits of debt investments (38,722,627 )
(3,994,442 ) (49,429,272 ) (14,439,625 ) Exits of equity
investments (96,218 ) (100,000 ) (180,597 ) (390,284 ) Principal
repayments (2,254,812 ) (7,352,352 ) (16,354,522 )
(14,459,211 ) Net activity $ (29,923,657 ) $ (5,866,071 ) $
(21,643,529 ) $ 491,603
September 30,2017
December 31,2016
Number of portfolio company investments 33 31 Weighted
average yield of debt and other income producing investments (1):
Cash 11.2 % 12.3 % PIK 1.6 % 1.4 % Fee amortization 1.0 %
1.7 % Total 13.8 % 15.4 % Weighted average yield on total
investments (1): Cash 10.7 % 11.5 % PIK 1.5 % 1.3 % Fee
amortization 0.9 % 1.6 % Total 13.1 % 14.4 % (1)
The weighted average yield on debt and
other income-producing investments is computed using the effective
interest rates for our debt investments and other income producing
investments, including cash and PIK interest as well as the
accretion of deferred fees. The individual investment yields are
then weighted by the respective fair values of the investments (as
of the date presented) in calculating the weighted average
effective yield as a percentage of our debt and other
income-producing investments. The IAG Revenue Linked Security was
excluded from the calculation as of September 30, 2017 because it
was on non-accrual status on that date. CRS Reprocessing, LLC and
Peekay Acquisition, LLC were excluded from the calculation as of
December 31, 2016 because they were on non-accrual status on that
date. Shinnecock CLO 2006-1, Ltd. and other equity components of
the investment portfolio were also excluded from these calculations
either because they do not have stated interest rates or are
non-income producing.
The weighted average yield on total
investments takes the same yields but weights them to determine the
weighted average effective yield as a percentage of the Company's
total investments. The weighted average annualized yield on the
Company’s investments for a given period will generally be higher
than what investors in our common stock would realize in a return
over the same period because the dollar-weighted average annualized
yield does not reflect the Company’s expenses or any sales load
that may be paid by investors.
THIRD QUARTER 2017 OPERATING RESULTS
For the quarter ended September 30, 2017, the Company reported a
$2.7 million decrease in net income, compared to the quarter ended
September 30, 2016. The net loss was $(0.3) million, or $(0.05) per
share, compared to net income of $2.4 million, or $0.38 per share,
for the quarter ended September 30, 2016.
For the quarter ended September 30, 2017, the Company reported a
$1.4 million decrease in net investment income, compared to the
quarter ended September 30, 2016. Net investment income was $1.6
million, or $0.24 per share, for the quarter ended September 30,
2017, compared to $3.0 million, or $0.47 per share, for the quarter
ended September 30, 2016.
For the quarter ended September 30, 2017, the Company reported a
$0.7 million decrease in core net investment income, compared to
the quarter ended September 30, 2016. Core net investment income
was $2.3 million, or $0.36 per share, for the quarter ended
September 30, 2017, compared to $3.0 million, or $0.47 per share,
for the quarter ended September 30, 2016.
The decrease in net income for the quarter ended September 30,
2017 was primarily attributable to a $1.3 million negative change
in net realized and unrealized losses on investments and a $1.4
million decrease in net investment income in the quarter ended
September 30, 2017, as compared to the quarter ended
September 30, 2016.
Net investment income decreased in the quarter ended September
30, 2017, as compared to the quarter ended September 30, 2016,
primarily as a result of lower investment income and higher
interest expense in the quarter ended September 30, 2017.
Investment income was lower as a result of a smaller investment
portfolio and a lower weighted average effective yield for the
quarter ended September 30, 2017 as compared to the quarter ended
September 30, 2016.
Core net investment income decreased in the quarter ended
September 30, 2017, as compared to the quarter ended September 30,
2016, primarily as a result of lower investment income in the
quarter ended September 30, 2017. During the quarter ended
September 30, 2017, the Company incurred $0.7 million of
non-recurring expenses related to its redemption of the Company's
7.00% Notes due 2020 (the "2020 Notes"). This amount was added back
to net investment income and is not reflected in the calculation of
core net investment income.
As of September 30, 2017, our total portfolio investments at
fair value and total assets were $113.5 million and $117.0 million,
respectively, compared to $134.1 million and $143.0 million at
December 31, 2016. Net asset value per share was $12.86 at
September 30, 2017, compared to $13.86 at December 31,
2016.
During the third quarter of 2017, the Company made investments
in three companies totaling $11.2 million. Two of the investments
were in new portfolio companies and one was an additional
investment in an existing portfolio company. The Company also had
investment sales and payoffs totaling $38.7 million during the
three months ended September 30, 2017. The investment activity for
the quarter ended September 30, 2017 was as follows:
NEW AND INCREMENTAL INVESTMENTS
On July 7, 2017, the Company made a $3.3
million senior secured debt investment and a $1.0 million equity
investment in Instant Sales Solutions, Inc. The debt investment
consists of a $3.0 million term loan that carries a fixed cash
interest rate of 13.25% and a $0.3 million revolver that carries an
interest rate of LIBOR plus 9.0% with a 1.00% LIBOR floor.
On August 31, 2017, the Company made an
additional $0.4 million senior secured debt investment in King
Engineering Associates, Inc. The debt investment carries an
interest rate of LIBOR plus 10.00%.
On September 25, 2017, the Company made a
$6.5 million junior secured debt investment in ProAir Holdings
Corporation. The debt investment carries a fixed cash interest rate
of 12.75%.
INVESTMENT SALES AND PAYOFFS
On July 3, 2017, the Company received a full
repayment at par on its $9.6 million senior secured debt investment
in Fox Rent A Car, Inc ("Fox"). The Company also received a $1.0
million exit fee and a $0.1 million warrant amendment fee. The
Company generated an IRR of 18.9% on its debt investment in Fox and
still retains its warrant position in the company. IRR is the rate
of return that makes the net present value of all cash flows into
or from the investment equal to zero, and is calculated based on
the amount of each cash flow received or invested by the Company
and the day it was invested or received.
On July 12, 2017, the Company received a full
repayment at par plus a 1.0% prepayment fee on its $7.0 million
junior secured debt investment in Novitex Acquisition, LLC. The
Company generated an IRR of 13.3% on its investment.
On July 12, 2017, the Company received a full
repayment at par plus a 2.0% prepayment fee on its $4.0 million
junior secured debt investment in SourceHOV LLC. The Company
generated an IRR of 13.0% on its investment.
On July 25, 2017, the Company received a full
repayment at par on its $5.5 million senior secured debt investment
in Brite Media Group LLC. The Company generated an IRR of 13.3% on
its investment.
On August 7, 2017, the Company received a
full repayment at par plus a 2.0% prepayment fee on its $1.6
million junior secured debt investment in Mercury Network, LLC
("Mercury"). The Company generated an IRR of 12.8% on its debt
investment. On the same date, the Company also sold its remaining
equity investment in the company for $0.2 million. The Company
generated an IRR of 99.0% on its equity investment. On a combined
basis, the Company generated an IRR of 18.8% on its investments in
Mercury.
On August 9, 2017, the Company received a
full repayment at par on its $3.1 million senior secured debt
investment in Lanco Acquisition, LLC. The Company also received
$0.1 million for its common equity warrant. The Company generated
an IRR of 17.1% on its investment.
On September 11, 2017, the Company sold its
junior secured debt investment in CRS Reprocessing, LLC for $0.1
million. The investment had been on non-accrual and was fair valued
at $0.0 million on June 30, 2017. The Company generated an IRR of
(37.2)% on its investment.
On September 30, 2017, the Company wrote off
its debt and equity investments in Peekay Acquisition, LLC. The
investments had been fair valued at $0 since March 31, 2017. The
Company generated an IRR of (21.7%) on its investments in the
company.
“Although net investment income, which was impacted by
non-recurring charges related to our baby bond refinancing, was
only $0.24 per share,we are pleased to report another quarter in
which Harvest Capital Credit out-earned its dividend of $0.34 per
share by generating $0.36 per share of core net investment income
for the third quarter of 2017,” declared Richard P. Buckanavage,
President and CEO. “These results were achieved despite a
substantially smaller portfolio due to several unplanned exits that
occurred during the quarter,” observed Mr. Buckanavage. “The
deployment environment remains competitive and will likely remain
so for the foreseeable future. Rest assured that we will not
compromise our underwriting standards or stretch for yield in this
market. While we have transactions under mandate scheduled to close
in the fourth quarter, this management team and our board are
comfortable with a slower rate of growth or no portfolio growth
should this environment persist. It is also worth noting that, as
of September 30, 2017, but after giving effect to the special
dividend paid in October, we maintain $0.23 per share of spillover
income in which to support future dividend payments,” concluded Mr.
Buckanavage.
CREDIT QUALITY
The Company employs various risk management and monitoring tools
to categorize and assess its investments. No less frequently than
quarterly, the Company applies an investment risk rating system
which uses a five-level numeric scale. The following is a
description of the conditions associated with each investment
rating:
- Investment Rating 1 is used for
investments that are performing above expectations, and whose risks
remain favorable compared to the expected risk at the time of the
original investment.
- Investment Rating 2 is used for
investments that are performing within expectations and whose risks
remain neutral compared to the expected risk at the time of the
original investment. All new loans are initially rated 2.
- Investment Rating 3 is used for
investments that are performing below expectations and that require
closer monitoring, but where no loss of return or principal is
expected. Portfolio companies with a rating of 3 may be out of
compliance with financial covenants.
- Investment Rating 4 is used for
investments that are performing substantially below expectations
and whose risks have increased substantially since the original
investment. These investments are often in workout. Investments
with a rating of 4 are those for which there is an increased
possibility of some loss of return but no loss of principal is
expected.
- Investment Rating 5 is used for
investments that are performing substantially below expectations
and whose risks have increased substantially since the original
investment. These investments are almost always in workout.
Investments with a rating of 5 are those for which some loss of
return and principal is expected.
As of September 30, 2017, the weighted average risk rating of
the debt investments in the Company's portfolio improved to 2.02
from 2.05 in the previous quarter. Also, as of September 30, 2017,
twelve of the Company’s twenty-seven debt investments were rated 1,
eleven investments were rated 2, two investments were rated 3, two
investments were rated 4 and no investments were rated 5. As of
September 30, 2017, one revenue linked security was on non-accrual
status.
LIQUIDITY AND CAPITAL RESOURCES
As of September 30, 2017, the Company had $2.5 million of cash
and restricted cash and $50.2 million of undrawn capacity on its
$55.0 million senior secured revolving credit facility. The credit
facility is secured by all of the Company’s assets and has an
accordion feature that allows the size of the facility to increase
up to $85.0 million.
Additionally, the Company holds four syndicated loans totaling
$10.4 million at fair value as of September 30, 2017. These
investments could be sold and the proceeds re-invested in our core
lower-middle market strategy, as attractive opportunities
arise.
BABY BOND OFFERING
On August 24, 2017, the Company closed the public offering of
$25.0 million in aggregate principal amount of its 6.125% Notes due
2022 (the "2022 Notes"). On September 1, 2017, the Company closed
on an additional $3.75 million in aggregate principal amount of
2022 Notes to cover the over-allotment option exercised by the
underwriters. In total, the Company issued 1,150,000 of the 2022
Notes at a price of $25.00 per Note. The total net proceeds to the
Company from the 2022 Notes, after deducting underwriting discounts
of $0.9 million and offering expenses of $0.2 million, were $27.7
million. The Company used the proceeds of the 2022 Notes to redeem
its 2020 Notes in full on September 23, 2017. The 2022 Notes trade
on NASDAQ under the ticker symbol HCAPZ.
SIGNIFICANT DEVELOPMENTS SUBSEQUENT TO SEPTEMBER 30,
2017
On September 29, 2017, the Company entered into an equity
distribution agreement with JMP Securities to sell up to 1.0
million shares of our common stock from time to time at prevailing
market prices or at negotiated prices. Since then the Company has
sold 63,000 shares at an average sales price, after sales
commission, of $13.43 per share. Net proceeds to the Company were
$0.8 million.
On various dates in October 2017, the Company made additional
senior secured debt investments in existing portfolio company,
Infinite Care, LLC ("ICC"), totaling $0.5 million. ICC is in
default under the terms of its credit agreement, and in October
2017, the Company designated and directed HCAP ICC, LLC, a wholly
owned subsidiary of the Company, to exercise its proxy rights under
a stock pledge agreement with ICC. Pursuant to this designation and
direction, HCAP ICC, LLC removed the existing sole manager of ICC
and HCAP ICC, LLC was appointed as sole manager of ICC.
On October 18, 2017, the Company made an additional $3.2 million
senior secured debt investment and a $0.5 million equity investment
in existing portfolio company, King Engineering Associates,
Inc.
On October 25, 2017, the Company received a full repayment at
par on its $0.8 million senior secured debt investment in Flight
Engine Leasing V, LLC. The Company generated an IRR of 15.5% on
this investment. The Company retained its equity investment in the
borrower’s parent Flight Lease XIII, LLC.
On October 27, 2017, our compensation committee and board of
directors approved an increase in the cap on amounts payable by the
Company under the administration agreement to cover increased costs
associated with moving the administrative functions of the Company
from Alpharetta, Georgia to its headquarters in New York, New York.
For the 2017 fiscal year, the Company and JMP Credit Advisors had
agreed to a cap that set the maximum amount that would be payable
by the Company for services under the administration agreement in
2017 at $1.2 million. Our compensation committee and board of
directors approved an increase in this cap to the extent necessary
to reimburse JMP Credit Advisors for costs and expenses payable by
the Company under the administration agreement for fiscal year 2017
in excess of the existing cap, up to an additional $0.2 million,
for a total cap on all amounts to be paid by the Company under the
administration agreement for fiscal year 2017 of $1.4 million. The
additional $0.2 million was expensed in the three months ended
September 30, 2017.
On October 31, 2017, the Company received a full repayment at
par on its $0.1 million senior secured debt investment in Flight
Engine Leasing III, LLC. The Company generated an IRR of 16.6% on
this investment. The Company retained its equity investment in the
borrower's parent, Flight Lease XI, LLC.
CONFERENCE CALL
The Company will host a conference call on Tuesday, November 7,
2017 at 11:00 a.m. Eastern Time to discuss its third quarter
results. All interested parties are invited to participate in the
conference call by dialing (888) 566-6060 (domestic) or (973)
200-3100 (international). Participants should enter the Conference
ID 99314208 when prompted.
ABOUT HARVEST CAPITAL CREDIT CORPORATION
Harvest Capital Credit Corporation (NASDAQ: HCAP) provides
customized financing solutions to privately held small and
mid-sized companies in the U.S., generally targeting companies with
annual revenues of less than $100 million and annual EBITDA of less
than $15 million. The Company’s investment objective is to generate
both current income and capital appreciation primarily by making
direct investments in the form of subordinated debt, senior debt
and, to a lesser extent, minority equity investments. Harvest
Capital Credit Corporation is externally managed and has elected to
be treated as a business development company under the Investment
Company Act of 1940.
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 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, except as may be required by law.
Harvest Capital Credit
Corporation
Consolidated Statements of Assets and
Liabilities (Unaudited)
September 30,
December 31, 2017 2016 ASSETS:
Non-affiliated/non-control investments, at fair value (cost of
$77,983,127 at 9/30/17 and $120,162,148 at 12/31/16) $ 79,019,618 $
119,032,736 Affiliated investments, at fair value (cost of
$37,435,271 at 9/30/17 and $15,994,294 at 12/31/16) 33,238,936
12,137,552 Control investments, at fair value (cost of $1,211,067
at 9/30/17 and $2,943,277 at 12/31/16) 1,263,384 2,931,246
Total investments, at fair value (cost of $116,629,465 at
9/30/17 and $139,099,719 at 12/31/16) 113,521,938 134,101,534
Cash 358,730 4,472,749 Restricted cash 2,115,585 3,084,229
Interest receivable 228,324 578,140 Accounts receivable – other
40,742 27,135 Deferred offering costs 83,513 98,549 Deferred
financing costs 546,329 542,342 Other assets 154,623 84,969
Total assets $ 117,049,784 $ 142,989,647
LIABILITIES: Revolving line of credit $
4,800,000 $ 26,946,613 Unsecured notes (net of deferred offering
costs of $1,001,793 at 9/30/17 and $715,258 at 12/31/16) 27,748,207
26,784,742 Accrued interest payable 118,007 421,534 Accounts
payable - base management fees 638,264 693,190 Accounts payable -
incentive management fees — 202,235 Accounts payable -
administrative services 494,925 276,214 Accounts payable - accrued
expenses 663,882 499,907 Other liabilities 20,516 42,916
Total liabilities 34,483,801 55,867,351
Commitments and contingencies (Note 8)
NET ASSETS:
Common stock, $0.001 par value, 100,000,000 shares authorized,
6,445,596 issued and 6,419,820 outstanding at 9/30/17 and 6,313,272
issued and 6,287,496 outstanding at 12/31/16 6,446 6,313 Capital in
excess of common stock 92,210,266 90,433,114 Treasury shares at
cost, 25,776 shares at 9/30/17 and 12/31/16, respectively (322,137
) (322,137 ) Accumulated realized losses on investments (9,599,947
) (1,537,506 ) Net unrealized depreciation on investments
(3,107,527 ) (4,998,185 ) Undistributed net investment income
3,378,882 3,540,697 Total net assets 82,565,983
87,122,296
Total liabilities and net assets $
117,049,784 $ 142,989,647 Common stock
outstanding 6,419,820 6,287,496 Net asset value per common
share $ 12.86 $ 13.86
Harvest Capital Credit
Corporation
Consolidated Statements of Operations
(Unaudited)
Three Months Ended September 30, Nine Months Ended September
30, 2017 2016 2017 2016
Investment Income:
Interest: Cash - non-affiliated/non-control investments $ 2,194,790
$ 4,339,105 $ 8,079,496 $ 12,447,029 Cash - affiliated investments
855,761 337,459 2,361,993 912,196 Cash - control investments 53,420
33,461 219,370 64,616 PIK - non-affiliated/non-control investments
190,821 422,920 767,892 964,136 PIK - affiliated investments
306,827 — 661,151 — PIK - control investments — 8,127 — 18,100
Amortization of fees, discounts and premiums
Non-affiliated/non-control investments 942,285 293,782 2,028,598
1,203,144 Affiliated investments 49,396 9,188 181,927 (36,658 )
Control investments 7,723 — 17,191 —
Total interest income 4,601,023 5,444,042 14,317,618 15,572,563
Other income 213,635 50,025 250,167 123,611
Total investment income 4,814,658
5,494,067 14,567,785 15,696,174
Expenses: Interest expense – revolving line of
credit 73,959 325,629 602,796 922,961 Interest expense - unused
line of credit 92,976 26,948 189,710 98,483 Interest expense -
deferred financing costs 52,872 71,785 180,592 204,777 Interest
expense - unsecured notes 619,458 481,251 1,581,960 1,443,753
Interest expense - deferred offering costs 49,676 49,696 154,121
146,181 Loss on extinguishment of debt 581,734 —
581,734 — Total interest expense 1,470,675 955,309
3,290,913 2,816,155 Professional fees 289,556 166,812
842,343 544,602 General and administrative 311,254 231,539 851,798
677,085 Base management fees 638,264 724,396 2,014,208 2,206,227
Incentive management fees — 230,760 58,005 1,192,147 Administrative
services expense 494,925 198,154 1,094,925
629,372
Total expenses 3,204,674
2,506,970 8,152,192 8,065,588
Net Investment Income, before taxes 1,609,984
2,987,097 6,415,593 7,630,586 Excise tax
(50,001 ) (8,425 ) (103,247 ) (11,040 )
Net Investment Income,
after taxes 1,559,983 2,978,672 6,312,346
7,619,546 Net realized (losses) gains: Non-Affiliated
/ Non-Control investments (6,233,135 ) 701,879 (5,962,020 ) 679,583
Affiliated investments (2,100,421 ) — (2,100,421 )
(1,142,263 ) Net realized (losses) gains (8,333,556 ) 701,879
(8,062,441 ) (462,680 ) Net change in unrealized appreciation
(depreciation) on investments: Non-Affiliated / Non-Control
investments 5,128,481 (446,642 ) 2,302,644 (2,199,337 ) Affiliated
investments 1,315,891 (863,859 ) (476,334 ) (1,727,813 ) Control
investments (3,950 ) — 64,348 — Net change in
unrealized appreciation (depreciation) on investments: 6,440,422
(1,310,501 ) 1,890,658 (3,927,150 )
Total net
change in unrealized and realized losses on investments
(1,893,134 ) (608,622 )
(6,171,783 ) (4,389,830 ) Net
(decrease) increase in net assets resulting from operations
$ (333,151 ) $ 2,370,050
$ 140,563 $ 3,229,716
Net investment income per share $0.24 $0.47 $0.99 $1.21 Net
(decrease) increase in net assets resulting from operations per
share ($0.05 ) $0.38 $0.02 $0.51 Weighted average shares
outstanding (basic and diluted) 6,415,099 6,286,216 6,391,134
6,282,371 Dividends paid per common share $0.34 $0.34 $1.02 $1.02
SCHEDULE 1
Reconciliations of Net Investment
Income to Core Net Investment Income
Three months ended September 30, Nine months ended September
30, 2017 2016 2017 2016 Amount Per share (1)
Amount Per share (1) Amount Per share (1)
Amount Per share (1) Net
investment income $1,559,983 $0.24 $2,978,672 $0.47 $6,312,346
$0.99 $7,619,546 $1.21 Loss on extinguishment of debt 581,734 0.09
— — 581,734 0.09 — — Interest expense on redeemed bonds during
required 30 day notice period 155,069 0.02 —
— 155,069 0.02 —
— Core net investment income $2,296,786 $0.36 $2,978,672
$0.47 $7,049,149 $1.10 $7,619,546 $1.21 (1) All per
share amounts are basic and diluted unless indicated otherwise. Per
share totals might not foot due to rounding.
The purpose of core net investment income is to present net
investment income without the effect of certain non-recurring
charges, without the effect of incentive fees related to items not
included in net investment income, and without the effect of any
excise taxes related to realized capital gains and losses. During
the three months ended September 30, 2017, this resulted in
excluding the non-recurring charges related to the Company's
redemption of its 2020 Notes. During this period, in conjunction
with the redemption of its 2020 Notes, the Company expensed the
unamortized deferred finance costs related to the 2020 Notes that
were redeemed and recorded this as a loss on extinguishment of
debt. Additionally, the Company was required to give the note
holders a 30 day notice period before redeeming the 2020 Notes. As
such, the Company had twice the amount of debt on its balance sheet
for 30 days than it otherwise would have had and incurred
additional interest expense as a result. The cost of these two
items has been added to net investment income in the calculation of
core net investment income.
© 2017 Harvest Capital Credit Corporation
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171107005857/en/
Investor & Media RelationsHarvest Capital Credit
CorporationRichard Buckanavage, 212-906-3592President & Chief
Executive Officerrbuckanavage@harvestcaps.comorCraig Kitchin,
678-392-3150Chief Financial Officerckitchin@harvestcaps.com
Harvest Capital Credit (NASDAQ:HCAP)
Historical Stock Chart
From Feb 2024 to Mar 2024
Harvest Capital Credit (NASDAQ:HCAP)
Historical Stock Chart
From Mar 2023 to Mar 2024