Alcentra Capital Corporation Announces Fourth Quarter 2014 Results, Fiscal Year 2014 Results

NEW YORK, March 18, 2015 /PRNewswire/ -- Alcentra Capital Corporation (NASDAQ: ABDC) ("Alcentra" or the "Company"), announced today its financial results for the fourth quarter of 2014. The Company reported net investment income of $4.5 million or $0.34 per share, for the fourth quarter 2014, and, including net realized and unrealized gains of $0.2 million, earnings of $4.7 million¹ before a provision for taxes on unrealized appreciation from portfolio investments, or $0.35 per share¹, for the same period.

For the 8-month post-IPO period from May 8, 2014 through December 31, 2014, the Company reported net investment income of $11.6 million or $0.86 per share, and, including net realized and unrealized gains of $4.8 million, earnings of $16.4 million¹ before a provision for taxes on unrealized appreciation from portfolio investments, or $1.22 per share¹, for the same period.

Mr. Paul J. Echausse, the Company's President and Chief Executive Officer, said, "The fourth quarter was our best quarter in terms of originations.  We grew the portfolio by $43.3 million on a net basis. Since our IPO on May 8, 2014, the portfolio has grown by approximately $73.7 million on a net basis for the 8 month post-IPO period, a 39.8% growth in the portfolio. Our gross originations were approximately $110.1 million which includes 16 new portfolio company investments. The investment amounts referenced herein are net of amortized costs."

"The weighted average yield on our debt portfolio was 11.7% at year end and the weighted average leverage on our portfolio is 3.4x EBITDA. In addition the yield on our debt portfolio has declined by 50 basis points since our IPO, and the weighted average leverage has declined by approximately 0.3 times EBITDA (from 3.7x EBITDA to 3.4x EBITDA). At a time when the BDC industry is focused on portfolio leverage, credit quality and the quality of investment originations, the aforementioned statistics are compelling," observed Mr. Echausse.

"We continue to find investments with companies that demonstrate good growth opportunities at reasonable leverage. We invested in six opportunities in the fourth quarter (five new portfolio companies and one refinancing of an existing portfolio company). I would like to point out a few year-end statistics that reinforce our differentiated investment strategy:

Net realized and unrealized gains of $4.7 million since the May 8, 2014 IPO demonstrates the opportunity for capital appreciation associated with our investment focus on growth companies;

The weighted average yield on our debt portfolio is 11.7% and the weighted average leverage in the debt portfolio is 3.4x EBITDA; thus demonstrating that we can generate good yields in our debt portfolio at moderate leverage;

$101.8 million of the portfolio (41.4%) had a first dollar loss at 0.0x-1.0x EBITDA; $93.0 million of the portfolio (37.8%) had a first dollar loss at 1.0x-3.0x EBITDA; $32.5 million of the portfolio (13.2%) had a first dollar loss of 3.0x-4.0x EBITDA; and $18.1 million of the portfolio (7.4%) had a first dollar loss of 4.0x-4.5x EBITDA; and $0.5 million of the portfolio (<1%) had a first dollar loss >4.5x EBITDA;

Our average portfolio company investment was approximately $8.8 million and there were no non-performing loans in the portfolio.

"With our focus on growth companies, we have assembled a portfolio that combines a good yield on our debt portfolio at moderate leverage, strong credit statistics with capital appreciation. We continue to remain disciplined at this point in the economic cycle," concluded Mr. Echausse.

At December 31, 2014, net asset value ("NAV") per share was $14.87, which is an increase of $0.24 from the $14.63 NAV at the time of our IPO.

¹ Earnings and earnings per share before a provision for taxes on unrealized appreciation from portfolio investments are non-GAAP financial measures that are calculated by subtracting the provision of taxes on unrealized gain on investments from Net Increase in Net Assets from Operations.  Reconciliations of these numbers to the most directly comparable GAAP financial measure are set forth in Schedule 1 hereto.

Capital Resources

As of December 31, 2014, we had $10.2 million of cash and $62.5 million drawn under our revolving credit facility and our net assets totaled $200.9 million

First Quarter 2015 Dividend Declaration

On March 10, 2015, the Company's Board of Directors declared the 2015 1st quarter calendar dividend of $0.34 per share, payable on April 6, 2015 to shareholders of record on March 31, 2015. The Company had previously paid a dividend of $0.34 per share on January 6, 2015 to shareholders of record on December 30, 2014.

David Scopelliti Named Senior Vice President

On March 10, 2015, the Company's Board of Directors elected David Scopelliti as a Senior Vice President. David joined the Company's external investment adviser, Alcentra NY, LLC, in September 2014 as a Senior Vice President. David has more than 25 years of experience in the leveraged finance industry. David replaces Scott Gold as an officer of Alcentra Capital Corporation. Scott will remain an officer of the Adviser and continue to work on originating investments for the Company and monitoring its portfolio companies.

About Alcentra Capital Corporation

Alcentra (www.alcentracapital.com) is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Alcentra's investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of subordinated debt and, to a lesser extent, senior debt and minority equity investments. Alcentra's investment activities are managed by its investment adviser, Alcentra NY, LLC.

About Alcentra NY, LLC

Alcentra NY, LLC, our investment adviser, is part of BNY Alcentra Group Holdings, Inc. ("Alcentra Group"), one of the world's leading sub-investment grade credit asset managers focusing on the U.S. and European markets. Alcentra Group has an investment track record that spans across 75 separate investment funds totaling approximately $22 billion (including accounts managed by Alcentra NY, LLC, Alcentra Ltd, and assets managed by Alcentra Group personnel for affiliates under dual officer arrangements).

FORWARD-LOOKING STATEMENTS

Statements included herein may contain "forward-looking statements," which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. Alcentra undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.

Schedule 1

Reconciliation of Non-GAAP Financial Measures

SOURCE Alcentra Capital Corporation

Related Links

http://www.alcentracapital.com