RYE BROOK, N.Y., Nov. 9, 2010 /PRNewswire-FirstCall/ -- Full
Circle Capital Corporation (Nasdaq: FULL) today announced its
financial results for the first fiscal 2011 quarter ended
September 30, 2010.
The company also announced that its board of directors, on
November 5, 2010, declared a
distribution for its second fiscal quarter ending December 31, 2010 of $0.225 per share. This distribution will be
payable on January 14, 2011 to
shareholders of record on December 31,
2010. The annualized distribution of $0.90 per share equates to a current yield of
10.7%, based on the closing price of the company's common stock on
November 8, 2010.
Full Circle Capital Corporation was formed on April 16, 2010 and commenced operations on
August 31, 2010. As a result, there
is no comparable period to compare results for the quarter ended
September 30, 2010. Additionally,
financial results for the first fiscal quarter ended September 30, 2010 reflect only one month of
operations and revenues.
Financial Highlights for First Fiscal 2011 Quarter Ended
September 30, 2010
- Net asset value was $9.36 per
share at September 30, 2010
- Weighted average portfolio interest rate was 12.16% at
September 30, 2010
- Total investment income was $867,600
- Net investment income was $306,800, which was impacted by $144,000 of non-recurring organizational
costs
- Net income was $207,000, or
$0.10 per share based on the weighted
average shares outstanding for the quarter
- Total portfolio investments were $96.3
million (including U.S. treasury bills held of $25.0 million)
- At September 30, 2010, excluding
U.S. Treasury bills, 85% of investments were first lien
senior secured loans
- At September 30, 2010, long term
debt outstanding was $16.9 million,
including $13.5 million under the
company's senior leverage facility and $3.4
million under its senior unsecured notes
- On October 15, 2010 Full Circle
paid its first quarterly distribution of $0.225 per share, prorated to $0.076 per share to represent the number of days
remaining in its first quarter of operations after its initial
public offering was priced on August 31,
2010
For the period from August 31,
2010 (commencement of operations) to September 30, 2010
- Net investment income was $0.0649
per share (excluding $67,200 of
non-recurring organizational costs, net investment income would
have been $0.0758 per share)
"With the purchase of the seasoned, performing,
well-collateralized portfolio immediately prior to our initial
public offering, we delivered results that were consistent with our
expectations," said John Stuart,
chairman and CEO of Full Circle Capital Corp. "The portfolio
reflects our strategy of providing first lien senior secured loans
and stretch senior secured or uni-tranche loan solutions to smaller
and lower middle market companies. We expect that this strategy
will allow us to achieve higher yields as well as to maintain a
first lien senior secured position over the borrowers' collateral
to guard against future losses. In the near term we expect several
portfolio realizations at par, which we believe, when combined with
our IPO proceeds and credit facilities, will provide us with ample
resources for growth to meet our investment objective to generate
both current income and capital appreciation. As our portfolio
grows, we expect to drive increasing returns from higher yields,
fee income and equity participations from new originations."
First Quarter Fiscal 2011 Results
Net asset value at September 30,
2010 was $9.36 per share. For
the period from the company's offering date, August 31, 2010, to the quarter-end of
September 30, 2010, Full Circle
recorded net unrealized depreciation resulting from valuations of
$105,900. This consisted of
$197,100 of net unrealized
appreciation on debt investments, offset by $303,000 of net unrealized depreciation on equity
investments. The company also recorded $6,100 of realized gains.
At September 30, 2010, Full
Circle's portfolio (excluding U.S. Treasury bill holdings) included
investments in 17 companies. The average portfolio company
investment at September 30, 2010 was
$4.2 million. The weighted
average interest rate on investments was 12.16%. The company
generated $802,200 of interest income
during the period, of which approximately 97% was paid in cash with
the remaining 3% paid in payment-in-kind ("PIK") interest. At fair
value, 85% of portfolio investments were first lien loans, 6% were
second lien loans and 9% were equity investments. Approximately 70%
of the debt investment portfolio, at fair value, bore interest at
floating rates. All of the floating rate loans carry a
minimum interest rate floor which protects the company's return in
a low rate environment. The estimated loan-to-value ratio on the
company's loans was 51% at September 30,
2010.
Full Circle's ratings distribution for debt investments at
September 30, 2010 on the one
(highest) to five (lowest) rating scale at fair value was 3.06, an
improvement from 3.21 at June 30,
2010 (pro forma), as disclosed in the company's prospectus
dated August 31, 2010.
Initial Public Offering
Full Circle Capital completed its initial public offering on
August 31, 2010, selling 2,000,000
shares of common stock at $9.00 per
share, resulting in $18 million of
gross proceeds and approximately $15.8
million of net proceeds. Full Circle used the net
proceeds of the offering to temporarily reduce outstanding
indebtedness under its credit facility, to enable it to fund new
investments in portfolio companies and for general corporate
purposes.
Immediately prior to the pricing of the offering, Full Circle
acquired through a series of transactions a portfolio consisting of
approximately $72.3 million of debt
and equity investments from two existing private funds, Full Circle
Partners, LP and Full Circle Fund, Ltd., formed in 2005 and 2007
respectively, which are referred to herein, collectively, as the
''Legacy Funds," in exchange for an aggregate of approximately 4.2
million shares of Full Circle common stock and approximately
$3.4 million of senior unsecured
notes issued to the investors in the Legacy Funds. Full Circle also
assumed approximately $27.5 million
of outstanding debt from the Legacy Funds' existing credit
facilities, in connection with its acquisition of the Legacy Funds
and its entry into a new secured revolving credit facility with
FCC, LLC d/b/a First Capital.
Conference Call Details
Management will host a conference call to discuss these results
on Wednesday, November 10, 2010 at
10:00 a.m. ET. To participate
in the conference call, please call 866-305-6438 (domestic call-in)
or 706-643-6383 (international call-in) and reference code
#23923037.
A live webcast of the conference call and the accompanying slide
presentation will be available at
http://ir.fccapital.com/CorporateProfile.aspx?iid=4151676. All
participants should call or access the website approximately 10
minutes before the conference begins.
A telephone replay of the conference call will be available from
1:00 p.m. ET on November 10 until 11:59
p.m. ET on November 17 by
calling 800-642-1687 (domestic) or 706-645-9291 (international) and
entering confirmation #23923037. An archived replay of the
conference call and slide presentation will also be available in
the investor relations section of the company's website for 90
days.
About Full Circle Capital Corporation
Full Circle Capital Corporation (www.fccapital.com) is a
closed-end investment company that has elected to be treated as a
business development company under the Investment Company Act of
1940. Full Circle lends to and invests in asset-based senior
secured loans and, to a lesser extent, mezzanine loans and equity
securities issued by smaller and lower middle-market companies that
operate in a diverse range of industries. Full Circle's investment
objective is to generate both current income and capital
appreciation through debt and equity investments.
Forward-Looking Statements
This press release contains forward-looking statements which
relate to future events or Full Circle's future performance or
financial condition. Any statements that are not statements of
historical fact (including statements containing the words
"believes," "plans," "anticipates," "expects," "estimates" and
similar expressions) should also be considered to be
forward-looking statements. These forward-looking statements are
not guarantees of future performance, condition or results and
involve a number of risks and uncertainties. Actual results may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described from time
to time in Full Circle's filings with the Securities and Exchange
Commission. Full Circle undertakes no duty to update any
forward-looking statements made herein.
Company Contact:
|
Investor Relations
Contacts:
|
|
John E. Stuart, CEO
|
Stephanie Prince/Jody
Burfening
|
|
Full Circle Capital Corporation
|
Lippert/Heilshorn &
Associates
|
|
914-220-6300
|
212-838-3777
|
|
Jstuart@fccapital.com
|
sprince@lhai.com
|
|
|
|
FULL CIRCLE
CAPITAL CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENTS OF ASSETS AND LIABILITIES
|
|
|
September
30,
|
|
June
30,
|
|
|
2010
(Unaudited)
|
|
2010
(Audited)
|
|
Assets
|
|
|
|
|
Affiliated Investments at Fair
Value (Cost of $12,662,570 and $-)
|
$12,456,958
|
|
$-
|
|
Investments at Fair Value (Cost
of $83,741,649 and $-)
|
83,841,407
|
|
-
|
|
Cash
|
272,804
|
|
1,455
|
|
Deposit with Broker
|
4,000,000
|
|
-
|
|
Interest Receivable
|
862,787
|
|
-
|
|
Dividends Receivable
|
57,500
|
|
-
|
|
Due from Affiliates
|
79,327
|
|
-
|
|
Prepaid Expenses
|
155,116
|
|
-
|
|
Other Assets
|
27,510
|
|
-
|
|
Deferred Offering
Expenses
|
-
|
|
425,463
|
|
Total Assets
|
101,753,409
|
|
426,918
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
Accounts Payable
|
318,240
|
|
-
|
|
Accrued Liabilities
|
28,151
|
|
-
|
|
Due to Broker
|
24,999,413
|
|
-
|
|
Dividends Payable
|
470,555
|
|
-
|
|
Interest Payable
|
109,096
|
|
-
|
|
Other Current
Liabilities
|
372,000
|
|
-
|
|
Accrued Offering
Expenses
|
525,064
|
|
425,463
|
|
Accrued Organizational
Expenses
|
48,236
|
|
12,500
|
|
Total Current
Liabilities
|
26,870,755
|
|
437,963
|
|
Long Term
Liabilities
|
|
|
|
|
Line of Credit
|
13,522,538
|
|
-
|
|
Distribution Notes
|
3,404,583
|
|
-
|
|
Total Long Term
Liabilities
|
16,927,121
|
|
-
|
|
Total Liabilities
|
43,797,876
|
|
437,963
|
|
Net Assets
|
$57,955,533
|
|
$(11,045)
|
|
Components of Net
Assets
|
|
|
|
|
Common Stock, par value $0.01
per share
|
|
|
|
|
(100,000,000 authorized;
6,191,515 and 100 issued
|
|
|
|
|
and outstanding,
respectively)
|
$61,915
|
|
$1
|
|
Paid-in capital in excess of
par
|
58,169,726
|
|
1,499
|
|
Overdistributed Net Investment
Income
|
(176,317)
|
|
-
|
|
Accumulated Net Realized Gains
(Losses)
|
6,063
|
|
-
|
|
Accumulated Net Unrealized Gains
(Losses)
|
(105,854)
|
|
-
|
|
Deficit accumulated during
development stage
|
-
|
|
(12,545)
|
|
Net Assets
|
$57,955,533
|
|
$(11,045)
|
|
Net Asset Value Per
Share
|
$9.36
|
|
$(110.45)
|
|
|
|
|
|
FULL CIRCLE
CAPITAL CORPORATION AND SUBSIDIARIES
|
|
CONSOLIDATED
STATEMENT OF OPERATIONS (Unaudited)
|
|
|
|
|
|
Three months
ended
|
|
|
September
30, 2010
|
|
Investment Income
|
|
|
Interest Income
|
$711,430
|
|
Interest Income from
affiliate
|
90,774
|
|
Dividend Income from
affiliate
|
57,500
|
|
Other Income
|
7,878
|
|
Total Investment
Income
|
867,582
|
|
|
|
|
Operating
Expenses
|
|
|
Management Fee
|
106,984
|
|
Incentive Fee
|
112,686
|
|
Total Advisory
Fees
|
219,670
|
|
|
|
|
Allocation of Overhead
Expenses
|
30,090
|
|
Interest Expense
|
113,531
|
|
Directors Fees
|
29,107
|
|
Administration Fees
|
34,371
|
|
Professional Services
Expense
|
39,148
|
|
Bank Fees
|
5,010
|
|
Other
|
40,499
|
|
Organizational
Expenses
|
143,983
|
|
Total Gross Operating
Expenses
|
655,409
|
|
|
|
|
Management Fee Waiver and
Expense Reimbursement
|
(94,610)
|
|
Total Net Operating
Expenses
|
560,799
|
|
|
|
|
Net Investment Income
(Loss)
|
306,783
|
|
Change in Unrealized Gain
(Loss)
|
(105,854)
|
|
Realized Gain (Loss)
|
6,063
|
|
Net Increase (Decrease) in Net
Assets Resulting from Operations
|
$206,992
|
|
|
|
|
Earnings (loss) per common
share
|
$0.10
|
|
Weighted average shares of
common stock outstanding
|
2,086,338
|
|
|
|
|
Financial
Highlights for the period from August 31, 2010 (commencement of
operations) to
September 30, 2010
(Unaudited)
|
|
|
|
|
Per Share Data:
|
|
|
Net asset value at beginning of
period
|
$9.40
|
|
Net investment income
|
0.06
|
|
Net unrealized appreciation
(depreciation)
|
(0.02)
|
|
Realized gain (loss)
|
0.00
|
|
Dividends declared and
paid
|
(0.08)
|
|
Net asset value at end of
period
|
$9.36
|
|
|
|
SOURCE Full Circle Capital Corporation