Business Development Corporation of America Announces First Quarter 2012 Results from Operations

NEW YORK, May 23, 2012 /PRNewswire/ -- Business Development Corporation of America ("BDCA" or the "Company") announced results of operations for the first quarter ended March 31, 2012. 

(Logo: http://photos.prnewswire.com/prnh/20120523/NY12959LOGO )

The Company commenced operations on August 25, 2011, subsequent to raising sufficient funds to meet escrow break requirements.  For the three months ended March 31, 2012, BDCA acquired $24.0 million of investments, at fair value, in 31 individual investments. In addition, BDCA received proceeds of $5.9 million during this period from selling certain investments and repayments. The Company realized a gain of $0.1 million from exiting such investments.  Net investment income (determined in accordance with generally accepted accounting principles) of $357,000 was generated during the first quarter of 2012, excluding realized and unrealized gains and losses.  During the same period, the Company paid distributions of $243,000

"Once again, we are pleased to report another strong quarter of operations for BDCA," stated Peter M. Budko, President and Chief Operating Officer of the Company. Mr. Budko noted, "We continue to fully cover our dividend from our core net investment income rather than rely upon investment gains and new equity raised to cover shortfalls. Our portfolio continues to be of high quality, with over 91 percent of our assets invested in senior secured loans. With continued unease in Europe and other economic concerns, we believe that our strategy of originating and participating in well structured, senior secured loans to middle market U.S. companies provides our investors with a conservative investment alternative."

Portfolio Highlights (dollar amounts in thousands):



March 31, 2012

December 31, 2011


Investments, at fair value

$         32,830

$         14,271


Net asset value per share (1)

$             9.18

$             9.00


Weighted average current coupon yield (2)

11.10%

10.79%


Number of portfolio investments

30

35


Number of industry groups

16

18





(1) Net asset value per share and common shares outstanding for the period ended March 31, 2012 and year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.

(2) Includes the effect of the amortization or accretion of loan premiums or discounts.

 

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

STATEMENTS OF ASSETS AND LIABILITIES

(in thousands except share and per share data)






March 31, 2012


December 31, 2011


(Unaudited)



ASSETS




Investments, at fair value (amortized cost of $32,520 and $14,294, respectively)

$

32,830



$

14,271


Cash and cash equivalents

1,120



828


Interest receivable

265



142


Due from affiliate

2,106



918


Deferred credit facility financing costs, net

38



50


Prepaid expenses and other assets

27



41


Total assets

36,386



16,250






LIABILITIES






Revolving credit facility

$

10,000



$

5,900


Payable for unsettled trades

1,007



1,914


Accounts payable and accrued expenses

145



154


Interest and credit facility fees payable

32



19


Stockholder distributions payable

166



56


Total liabilities

11,350



8,043






NET ASSETS




Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding

$



$


Common stock, $.001 par value, 450,000,000 shares authorized
2,726,639 and 912,297 shares issued and outstanding, respectively

3



1


Capital in excess of par value

24,645



8,235


Accumulated distributions in excess of net investment income

(3)



(7)


Accumulated net realized gain from investments

81



1


Net unrealized appreciation (depreciation) on investments

310



(23)


Net assets

25,036



8,207






Total liabilities and net assets

$

36,386



$

16,250






Net asset value per share *

$

9.18



$

9.00


Offering price per share excluding commissions and dealer manager fees

$

9.23



$

9.23


*Net asset value per share and common shares outstanding for the period ended March 31, 2012 and year ended December 31, 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.

 

 

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

STATEMENTS OF OPERATIONS

(dollars in thousands except share and per share data)

(Unaudited)













For the Three Months Ended March 31,



2012


2011

Investment income:





Interest income


$

569



$


Other income


41




Total investment income


610









Operating expenses:







Interest and credit facility financing expenses


106



13


Professional fees


119




Directors fees


29




Insurance


51




Management fees


98




Incentive fees


149




Other administrative


26



50


Expenses before expense waivers and reimbursements


578



63


Waiver of management and incentive fees


(247)




Expense support reimbursement


(78)




Total expenses, net of expense waivers and reimbursements


253



63







Net investment income (loss)


357



(63)







Realized and unrealized gain on investments:





Net realized gain from investments


80




Net change in unrealized appreciation on investments


333




Net realized and unrealized gain on investments


413









Net increase (decrease) in net assets resulting from operations


$

770



$

(63)







Per share information - basic and diluted*:





Net investment income (loss)


$

0.21



$

(2.82)


Net increase (decrease) in net assets resulting from operations


$

0.44



$

(2.82)


Weighted average common shares outstanding


1,739,161



22,223


*Per share information - basic and diluted and weighted average common shares outstanding for the three months ended March 31, 2012 and 2011 have been adjusted to reflect a stock dividend of $0.05 per share declared on March 29, 2012.

This announcement may contain certain forward-looking statements, including statements with regard to the future performance of BDCA. Words such as "believes," "expects," "projects," and "future" or similar expressions are intended to identify forward-looking statements. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results to differ materially from those projected in these forward-looking statements, and some of these factors are enumerated in the filings BDCA makes with the SEC. BDCA undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

 

SOURCE Business Development Corporation of America



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