Full Circle Capital Provides Update on First Quarter 2015 Portfolio Activity
October 01 2014 - 8:00AM
Business Wire
First Quarter Direct and Managed Investments
Totaled $37.9 million
Full Circle Capital Corporation (NASDAQ:FULL) (“Full Circle
Capital”) today released an update of its investment portfolio
activity for the first quarter of fiscal 2015 ended September 30,
2014.
During the first quarter of 2015, Full Circle Capital completed
portfolio investments totaling approximately $37.9 million, either
directly or through vehicles it manages. This includes direct
investments in four new portfolio companies totaling approximately
$21.2 million, direct follow-on investments in existing portfolio
companies totaling approximately $6.7 million and investments made
through FC Capital Investment Partners, a vehicle managed by Full
Circle Capital, of $10.0 million. These new portfolio investments
are first lien secured debt investments in companies operating in
the Software Security, Oil Field Services and Healthcare sectors.
Also during the quarter, US Path Labs, LLC fully repaid its $3.5
million loan facility and Full Circle Capital sold $12.5 million of
syndicated loans, including both Dynamic Energy Services
International, LLC and RCS Capital Corp., in order to redeploy
capital into higher returning assets.
Full Circle Capital restructured its loan facility to Blackstrap
Broadcasting, LLC, with the loan returning to performing status as
of September 22, 2014. In conjunction with this restructuring, the
Company funded an additional $6.0 million to purchase the balance
of the first lien facility. As a result, Full Circle Capital now
holds a first lien loan with a face value of $11.2 million. This
loan carries an interest rate of 11.00% (LIBOR +10.00%, with a
1.00% LIBOR floor) and is providing a 14.6% yield on the pro forma
fair value, as adjusted for the transaction.
Full Circle Capital also amended the terms of its outstanding
warrant in Advanced Cannabis Solutions, Inc. The Company previously
held warrants to buy 1 million shares at an exercise price of $5.50
per share; following the amendment, Full Circle Capital holds
warrants to buy 1.4 million shares at an exercise price of $4.00
per share.
Gregg J. Felton, Full Circle Capital’s President and Co-Chief
Executive Officer, stated, “The ongoing pace of origination
activity remains at robust levels, building on our strong fourth
quarter results. Full Circle Capital continues to increase its
asset production through an expanding variety of channels and
across a broad set of industries.
“We believe that the more liquid credit markets have begun to
show signs of weakness with approximately $8.9 billion flowing out
of high yield and leveraged loan funds during the past nine months.
Since we expect credit fundamentals to remain relatively strong, we
believe the softening demand from traditional high yield investors
will enhance our origination opportunities.”
John Stuart, Full Circle Capital’s Chairman and Co-Chief
Executive Officer commented, “We are also pleased to have announced
the restructuring of our loan to Blackstrap Broadcasting, LLC which
is now a performing asset with what we consider an attractive
yield. We remain focused on optimizing outcomes of certain
underperforming legacy positions as we believe the resolution of
these positions, combined with continued portfolio growth and
diversification, provides a stronger foundation for stockholder
returns.”
About Full Circle Capital
Full Circle Capital Corporation (Nasdaq: FULL) is a Greenwich,
Connecticut based closed-end investment company that has elected to
be treated as a business development company under the Investment
Company Act of 1940. Full Circle Capital lends to and invests in
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 Capital’s investment objective is to generate both current
income and capital appreciation through debt and equity
investments. For additional information visit the company’s
website, www.fccapital.com.
Forward-Looking Statements
This press release contains forward-looking statements which
relate to future events or Full Circle Capital'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 Capital's filings with the Securities and
Exchange Commission. Full Circle Capital undertakes no duty to
update any forward-looking statements made herein.
Company Contacts:Full Circle Capital CorporationGregg J.
Felton, Co-Chief Executive OfficerJohn Stuart, Co-Chief Executive
Officer203-900-2100info@fccapital.comorInvestor Relations
Contacts:Lippert/Heilshorn & AssociatesStephanie PrinceJody
Burfening212-838-3777sprince@lhai.com
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