Equus Announces First Quarter Net Asset Value
May 15 2014 - 8:52PM
Marketwired
Equus Announces First Quarter Net Asset Value
HOUSTON, TX--(Marketwired - May 15, 2014) - Equus Total Return,
Inc. (NYSE: EQS) (the "Fund" or "Equus") reports net assets as of
March 31, 2014, of $32.7 million, a decrease of approximately $0.5
million since December 31, 2013. Net assets per share
decreased to $3.09 as of March 31, 2014 from $3.14 as of December
31, 2013. Comparative data is summarized below (in thousands,
except per share amounts):
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As of
the Quarter Ended |
3/31/2014 |
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12/31/2013 |
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9/30/2013 |
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6/30/2013 |
|
3/31/2013 |
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Net
assets |
$32,679 |
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$33,217 |
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$29,373 |
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$30,167 |
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$31,416 |
Shares outstanding |
10,562 |
|
10,562 |
|
10,562 |
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10,562 |
|
10,562 |
Net
assets per share |
$3.09 |
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$3.14 |
|
$2.78 |
|
$2.86 |
|
$2.97 |
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The overall decline in net asset value during the first quarter
of 2014 was principally due to operating expenses of the Fund,
which was partially offset by the net change in the fair value of
the following:
- Spectrum Management, LLC ("Spectrum"). The Fund made its
initial investment in Spectrum in December 1999. Based on a
stabilization of operations beginning in the fourth quarter of
2013, the Fund utilized a market approach in determining fair
value, in lieu of an asset approach applying a liquidation analysis
that had been used previously. The Fund also received advice
and assistance from a third-party valuation firm to support its
valuation methodology and calculations. The fair value of the
Fund's holdings in Spectrum increased from $2.9 million at December
31, 2013 to $3.0 million at March 31, 2014. The Fund also
increased its accrued interest receivable in connection with this
investment by $0.2 million during the quarter, to a total of $0.3
million.
Significant events subsequent to the end of the first quarter of
2014 included the following:
- Announcement of Transformational Reorganization and Share
Exchange. On May 15, 2015, Equus announced its intent to
effect a transformational reorganization under the Investment
Company Act of 1940. The reorganization also involved the sale
by Equus of 2,112,000 shares of its common stock to MVC Capital,
Inc. (NYSE: MVC) ("MVC") in exchange for the Fund receiving 395,839
shares of MVC. The number of MVC shares that were received by
Equus is subject to adjustment following MVC's release of its Form
10-Q, which will include its published net asset value per share
for the quarter ended April 30, 2014. Under the terms of the
reorganization, Equus intends to pursue a merger or consolidation
with MVC, or a subsidiary of MVC, or one or more of MVC's portfolio
companies (the "Consolidation"). Absent Equus merging or
consolidating with/into MVC, the current intention is for Equus to
(i) consummate the Consolidation, (ii) terminate its election to be
classified as a business development company under the 1940 Act,
and (iii) be restructured as a publicly-traded operating company
focused on the energy and/or financial services sector. If, as
a result of the Consolidation, Equus is transformed into an
operating company, Equus intends to ensure that it satisfies the
continued listing criteria for operating companies pursuant to
applicable rules of the New York Stock Exchange.
About Equus
The Fund is a business development company that trades as a
closed-end fund on the New York Stock Exchange, under the symbol
"EQS". Additional information on the Fund may be obtained from the
Fund's website at www.equuscap.com.
This press release may contain certain forward-looking
statements regarding future circumstances. These forward-looking
statements are based upon the Fund's current expectations and
assumptions and are subject to various risks and uncertainties that
could cause actual results to differ materially from those
contemplated in such forward-looking statements including, in
particular, the performance of the Fund, including our ability to
achieve our expected financial and business objectives, our ability
to execute our reorganization and complete the transactions
contemplated thereby, the performance of our new investment in MVC
and the other risks and uncertainties described in the Fund's
filings with the SEC. Actual results, events, and performance may
differ. Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as to the date hereof.
Except as required by law, the Fund undertakes no obligation to
release publicly any revisions to these forward-looking statements
that may be made to reflect events or circumstances after the date
hereof or to reflect the occurrence of unanticipated events. The
inclusion of any statement in this release does not constitute an
admission by the Fund or any other person that the events or
circumstances described in such statements are material.
Contact: Patricia Baronowski Pristine Advisers, LLC (631)
756-2486
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