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

Portfolio Highlights (dollar amounts in thousands):

September 30, 2012

December 31, 2011

Investments, at fair value

$         102,048

$         14,271

Net asset value per share (1)

$               9.44

$             9.00

Weighted average effective yield (2)

8.16%

10.79%

Number of portfolio investments

44

34

Number of industry groups

16

18

         ______________________

(1)

Net asset value per share and common shares outstanding for the year ended December 31, 2011 have been adjusted to reflect a special common stock distribution 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

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except share and per share data)

September 30, 2012

December 31, 2011

(Unaudited)

ASSETS

Investments, at fair value (amortized cost of $100,917 and $14,294, respectively)

$

102,048

$

14,271

Cash and cash equivalents

4,970

828

Cash collateral on deposit with custodian

11,417

—

Interest receivable

1,174

142

Due from affiliate

1,127

918

Deferred credit facility financing costs, net

787

50

Unrealized gain on total return swap

580

—

Receivable due on total return swap

348

—

Prepaid expenses and other assets

154

41

Receivable for unsettled trades

3,521

—

Total assets

$

126,126

$

16,250

LIABILITIES

Revolving credit facility

$

14,818

$

5,900

Payable for unsettled trades

17,553

1,914

Management fees payable

176

—

Accounts payable and accrued expenses

90

154

Interest and credit facility fees payable

91

19

Payable for common stock repurchases

86

—

Stockholder distributions payable

632

56

Total liabilities

33,446

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,
9,821,991 and 912,297 shares issued and outstanding, respectively

10

1

Capital in excess of par value

90,240

8,235

Accumulated distributions in excess of net investment income

(334)

(7)

Accumulated undistributed net realized gain from investments and total return swap

1,053

1

Net unrealized appreciation (depreciation) on investments and total return swap

1,711

(23)

Net assets

92,680

8,207

Total liabilities and net assets

$

126,126

$

16,250

Net asset value per share *

$

9.44

$

9.00

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

BUSINESS DEVELOPMENT CORPORATION OF AMERICA

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except share and per share data)

(Unaudited)

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2012

2011

2012

2011

Investment income:

Interest income

$

1,959

$

62

$

3,677

$

62

Other income

14

—

63

—

Total investment income

1,973

62

3,740

62

Operating expenses:

Contract termination fee

—

320

—

320

Interest and credit facility financing expenses

192

26

420

51

Professional fees

137

—

364

—

Directors fees

18

—

57

—

Insurance

51

—

154

—

Management fees

402

7

730

7

Incentive fees

572

37

968

37

Other administrative

35

101

75

251

Expenses before expense waivers and

  reimbursements from Adviser

1,407

491

2,768

666

Waiver of management and incentive fees

(798)

(44)

(1,522)

(44)

Expense support reimbursement from Adviser

—

(571)

(266)

(571)

Total expenses net of expense waivers and

  reimbursements from Adviser

609

(124)

980

51

Net investment income

1,364

186

2,760

11

Realized and unrealized gain on investments:

Net realized gain from investments

344

—

926

—

Net realized gain from total return swap

390

—

390

—

Net unrealized appreciation on investments

1,184

—

1,154

—

Net unrealized appreciation on total return swap

580

—

580

—

Net realized and unrealized gain on

   investments

2,498

—

3,050

—

Net increase in net assets resulting from

  operations

$

3,862

$

186

$

5,810

$

11

Per share information - basic and diluted*:

Net investment income

$

0.16

$

1.26

$

0.55

$

0.17

Net increase in net assets resulting from

   operations

$

0.47

$

1.26

$

1.15

$

0.17

Weighted average common shares outstanding

8,297,178

147,598

5,042,363

64,473

*Per share information - basic and diluted and weighted average common shares outstanding for the three and nine months ended September 30, 2011 have been adjusted to reflect a special common stock distribution of $0.05 per share declared on March 29, 2012.

BUSINESS DEVELOPMENT CORPORATION OF AMERICA 

ADJUSTED PORTFOLIO NET INVESTMENT INCOME

(in thousands)

(Unaudited) 

     The difference between our GAAP net investment income and our portfolio net investment income is due to the inclusion of realized gains from our total return swap ("TRS") in portfolio net investment income, which represents the interest income received from the underlying loans in the TRS offset by interest paid to Citibank, N.A. to finance such loans, and the net realized gains or losses from the sale of the underlying loans in the TRS. We subsequently remove the net realized gains or losses from the TRS to determine adjusted portfolio net investment income. The following table sets forth a reconciliation between GAAP net investment income and adjusted portfolio net investment income during the nine months ended September 30, 2012 and 2011 (dollars in thousands):

For the Three Months Ended September 30,

For the Nine Months Ended September 30,

2012

2011

2012

2011

GAAP net investment income

$

1,364

$

186

$

2,760

$

11

GAAP realized gains on total return swap

390

—

390

—

Portfolio net investment income

$

1,754

$

186

$

3,150

$

11

Less realized gains on total return swap

44

—

44

—

Adjusted portfolio net investment income

$

1,710

$

186

$

3,106

$

11

Distributions paid

$

1,500

$

-

$

2,511

$

-

Undistributed adjusted portfolio net

  investment income

$

210

$

186

$

595

$

11

Distributions declared

$

1,706

$

26

$

3,087

$

26