UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
__________________________________
FORM
8-K
CURRENT
REPORT
Pursuant
to section 13 or 15(d) of
the
Securities Exchange Act of 1934
Date
of Report (Date of Earliest Event Reported): March 10,
2008
BLACKROCK
KELSO CAPITAL CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware
|
000-51327
|
20-2725151
|
|
(State
or other jurisdiction of
|
(Commission
|
(IRS
Employer
|
|
incorporation
or organization)
|
File
Number)
|
Identification
Number)
|
40
East 52nd
Street
New
York, NY 10022
(Address
of principal executive offices)
(212)
810-5800
(Registrant’s
telephone number, including area code)
Not
Applicable
(Former
name or former address, if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following
provisions:
|
o
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
| o | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
| o | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| o | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
__________________________________
ITEM
2.02. RESULTS
OF OPERATIONS AND FINANCIAL CONDITION.
On
March 10, 2008, the Registrant issued a press release announcing its financial
results for the quarter and year ended December 31, 2007. The text of the
press release is included as Exhibit 99.1 to this Form 8-K.
The
information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is
being furnished and shall not be deemed “filed” for purposes of Section 18 of
the Securities Exchange Act of 1934 and shall not be deemed incorporated by
reference into any filing made under the Securities Act of 1933, except as
expressly set forth by specific reference in such filing.
ITEM
9.01. FINANCIAL
STATEMENTS AND EXHIBITS.
(d)
Exhibits.
|
Exhibit
Number
|
Description
|
|
99.1
|
Press
Release, dated as of March 10, 2008
|
SIGNATURE
Pursuant to the requirements of the
Securities Exchange Act of 1934, the registrant has duly caused this report to
be signed on its behalf by the undersigned thereunto duly
authorized.
|
BLACKROCK
KELSO CAPITAL CORPORATION
|
||||
|
Date: March
10, 2008
|
By:
|
/s/
Frank D. Gordon
|
|
|
|
Name:
|
Frank
D. Gordon
|
|||
|
Title:
|
Chief
Financial Officer
|
|||
EXHIBIT
INDEX
|
Exhibit
Number
|
Description
|
|
99.1
|
Press
Release, dated as of March 10, 2008
|
Exhibit
99.1
|
Investor
Contact:
|
Press
Contact:
|
|
Frank
Gordon
|
Brian
Beades
|
|
212.810.5858
|
212.810.5596
|
BlackRock
Kelso Capital Corporation Announces
Quarter
and Year Ended December 31, 2007 Financial Results
New York, March
10, 2008 - BlackRock Kelso Capital Corporation (NASDAQ:BKCC) (“BlackRock
Kelso” or the “Company”) today announced financial results for the quarter and
year ended December 31, 2007.
HIGHLIGHTS:
Investment
Portfolio: $1.1 billion
Net
Assets: $728 million
Net Asset Value per
share: $13.78
Portfolio Activity
for the Quarter Ended December 31, 2007:
Cost of investments
during period: $76.2 million
Sales, repayments
and other exits during period: $36.5 million
Number of new
portfolio companies invested: 2
Number of portfolio
company exits: 1
Number of portfolio
companies at end of period: 60
Portfolio Activity
for the Year Ended December 31, 2007:
Cost of investments
during period: $711.3 million
Sales, repayments
and other exits during period: $310.4 million
Number of new
portfolio companies invested: 26
Number of portfolio
company exits: 15
Number of portfolio
companies at end of period: 60
Operating Results
for the Quarter Ended December 31, 2007 (in thousands, except per share
amounts):
Net investment
income: $22,118
Net investment
income per share: $0.43
Net realized and
unrealized losses: ($38,016)
Net realized and
unrealized losses per share: ($0.73)
Net decrease in net
assets from operations: ($15,898)
Net decrease in net
assets from operations per share: ($0.31)
Operating Results
for the Year Ended December 31, 2007 (in thousands, except per share
amounts):
Net investment
income: $75,846
Net investment
income per share: $1.66
Net realized and
unrealized losses: ($59,626)
Net realized and
unrealized losses per share: ($1.31)
Net increase in net
assets from operations: $16,219
Net increase in net
assets from operations per share: $0.35
Portfolio
and Investment Activity
During the year
ended December 31, 2007, we invested $711.3 million across 26 new and 12
existing portfolio companies. This compares to investing $745.7
million across 35 new and 5 existing portfolio companies for the year ended
December 31, 2006. Additionally, we received proceeds from sales and
repayments of principal of approximately $310.4 and $138.4 million,
respectively, for the years ended December 31, 2007 and December 31,
2006.
1
At December 31,
2007, our net portfolio consisted of 60 portfolio companies and was invested 64%
in senior secured loans, 26% in unsecured or subordinated debt securities, 5% in
equity investments, 4% in senior secured notes and less than 1% in cash, cash
equivalents and foreign currency. This compares to 76% in senior secured loans,
17% in unsecured or subordinated debt securities, 4% in senior secured notes, 2%
in equity investments and less than 1% in cash, cash equivalents and foreign
currency at December 31, 2006. Our average portfolio company
investment by value was approximately $18 million at December 31, 2007 versus
$15 million at December 31, 2006.
Our weighted
average yield on invested capital was 12.4% at December 31, 2007 and 12.5% at
December 31, 2006, respectively. The weighted average yields on our
senior secured loans and other debt securities were 12.0% and 13.1%,
respectively, at December 31, 2007, versus 12.5% and 13.2%, respectively, at
December 31, 2006. Yields on invested capital exclude common equity
investments, preferred equity investments with no stated dividend rate,
short-term investments, cash and cash equivalents.
During the three
months ended December 31, 2007, we invested $76.2 million across two new and
three existing portfolio companies. This compares to investing $293.9
million across ten new and two existing portfolio companies for the three months
ended December 31, 2006. Sales and repayments of principal totaled
$36.5 million during the three months ended December 31, 2007 versus $69.7
million during the three months ended December 31, 2006. Overall
portfolio credit quality remains strong, with approximately $6.2 million par
amount of loans on non-accrual status at December 31, 2007.
On December 28,
2007, we raised an additional $145.0 million under our amended and restated $600
million senior secured, multi-currency credit facility through the issuance of
term loans to new and existing lenders. The net proceeds were used to
reduce the outstanding borrowings under the revolving portion of the credit
facility.
On July 2, 2007, we
closed on our initial public offering, through which we sold 10,000,000 newly
issued shares and raised $150.1 million, net of underwriting commissions and
expenses. We applied the net proceeds of this offering to reduce
borrowings outstanding under our credit facility.
Since our inception
of operations in July 2005, we have invested in excess of $1.5 billion across
more than 100 portfolio companies in transactions involving more than 60
financial sponsors.
Results
of Operations
Results comparisons
are for the quarters and years ended December 31, 2007 and December 31,
2006.
Investment
Income
Investment income
totaled $35.4 million and $17.9 million, respectively, for the quarters ended
December 31, 2007 and December 31, 2006, and $127.8 million and $53.9 million,
respectively, for the years ended December 31, 2007 and December 31,
2006. The increase in investment income for the quarter and year
ended December 31, 2007 reflects the growth of our portfolio and the transition
of the portfolio from temporary to long-term investments, as the portfolio was
not yet fully invested in the prior periods. Origination, closing
and/or commitment fees associated with investments in portfolio companies are
accreted into interest income over the respective terms of the applicable
loans.
2
Expenses
Net expenses for
the quarters ended December 31, 2007 and December 31, 2006 were $13.2
million and $5.7 million, respectively. Of these totals, for the
quarters ended December 31, 2007 and December 31, 2006, $5.8 million and $0.3
million, respectively, were interest and other credit facility
expenses. In addition, $3.1 million of performance-based incentive
fees were included in these totals for the quarter ended December 31,
2006. There were no incentive fees for the quarter ended December
31, 2007. Net
expenses for the years ended December 31, 2007 and December 31, 2006 were
$51.9 million and $14.0 million, respectively. Of these totals, $9.4
million and $4.4
million, respectively, were performance-based incentive fees and $20.3 million
and $0.3 million, respectively, were interest and other credit facility
expenses. Expenses net of performance-based incentive fees and
interest and other credit facility expenses for the quarters ended December 31,
2007 and December 31, 2006 were $7.4 million and $3.0 million, respectively.
Expenses net of performance-based incentive fees and interest and other credit
facility expenses for the years ended December 31, 2007 and December 31, 2006
were $24.3 million and $13.6 million, respectively. Net expenses for
the quarters ended December 31, 2007 and December 31, 2006 were net of base
management fee waivers of zero and $0.7 million, respectively, and $2.1 million
and $4.3 million, respectively, for the years ended December 31, 2007 and
December 31, 2006. The base management fee waivers terminated upon
the completion of our initial public offering in July 2007. These net
expenses consist of base management fees (net of waivers), administrative
services expenses, professional fees, director fees, investment advisor
expenses, insurance expenses, amortization of debt issuance costs and
miscellaneous other expenses. The increase in expenses was driven
primarily by an increase in base management fees resulting from the growth of
our portfolio, the incurrence of performance-based incentive fees and the
incurrence of borrowing costs under our credit facility. No incentive
fees were earned during the quarter ended December 31, 2007 as a result of the
increase in unrealized depreciation on
investments.
Net
Investment Income
Net investment
income totaled $22.1 million and $12.2 million, or $0.43 per share and $0.32 per
share, respectively, for the quarters ended December 31, 2007 and December 31,
2006. For the years ended December 31, 2007 and December 31, 2006,
net investment income totaled $75.8 million and $39.9 million, or $1.66 per
share and $1.09 per share, respectively.
Net
Realized Gains (Losses)
Total net realized
gains (losses) for the quarters ended December 31, 2007 and December 31, 2006
were ($1.3) million and $0.5 million, respectively, and ($0.6)
million and $0.5 million, respectively, for the years ended December 31, 2007
and December 31, 2006.
Net
Unrealized Appreciation (Depreciation)
For the quarters
ended December 31, 2007 and December 31, 2006, the net change in unrealized
appreciation (depreciation) on our investments, foreign currency translations
and cash equivalents was ($36.8) million and ($0.9) million, respectively, and
($59.0) million and $1.2 million, respectively, for the years ended December 31,
2007 and December 31, 2006. Net unrealized appreciation
(depreciation) was ($57.6) million and $1.4 million, respectively, at December
31, 2007 and December 31, 2006. The net change in unrealized
depreciation was primarily a result of overall declines in market quotations for
the quoted investments in our portfolio, as well as reductions in the valuation
of our investments in Tygem Holdings, Inc.
Net
Change in Net Assets from Operations
For the quarters
ended December 31, 2007 and December 31, 2006, the net change in net assets from
operations was ($15.9) million and $11.9 million, or ($0.31) per share and $0.31
per share, respectively. For the years ended December 31, 2007 and
December 31, 2006, the net increase in net assets from operations was $16.2
million and $41.6 million, or $0.35 per share and $1.13 per share,
respectively.
3
Liquidity
and Capital Resources
On July 2, 2007, we
closed on our initial public offering, through which we sold 10,000,000 newly
issued shares and raised $150.1 million, net of underwriting commissions and
expenses. Our liquidity and capital resources are also generated and
available through a senior secured, multi-currency $600 million, four-year
revolving credit facility maturing in December 2010 as well as from cash flows
from our operations, which primarily consists of interest earned and fees
received on senior secured loans and other debt securities. On
December 28, 2007, we raised $145.0 million under the credit facility through
the issuance of term loans to new and existing lenders. The net
proceeds were used to reduce the outstanding borrowings under the revolving
portion of the credit facility. At December 31, 2007, we had $381.3
million in borrowings outstanding and $218.7 million available for use under our
credit facility. On April 14, 2008, $55 million of availability under
the revolving portion of the credit facility expires. In the future,
we may raise additional equity or debt capital in the public or private markets
or may securitize a portion of our investments. The primary use of
such funds is expected to be investments in portfolio companies, cash
distributions to common stockholders and for other general corporate
purposes.
Dividends
Dividends paid to
stockholders for the quarters ended December 31, 2007 and December 31, 2006
totaled $22.4 million or $0.43 per share and $15.8 million or $0.42 per share,
respectively. For the years ended December 31, 2007 and December 31,
2006, dividends totaled $77.0 million or $1.69 per share and $42.4 million or
$1.15 per share, respectively. Tax characteristics of all dividends
will be reported to stockholders on Form 1099 after the end of the calendar
year.
We
intend to distribute quarterly dividends to our stockholders. Our quarterly
dividends, if any, will be determined by our Board of Directors.
We have elected to
be taxed as a regulated investment company under Subchapter M of the Internal
Revenue Code. To maintain our status as a regulated investment company, we must
distribute annually to our stockholders at least 90% of our investment company
taxable income and at least 98% of our income (both ordinary income and net
capital gains) to avoid an excise tax. We intend to make
distributions to our stockholders on a quarterly basis of substantially all of
our taxable net investment income. We also intend to make
distributions of net realized capital gains, if any, at least
annually.
We maintain an “opt
out” dividend reinvestment plan for our common stockholders. As a result, if we
declare a dividend, stockholders’ cash dividends will be automatically
reinvested in additional shares of our common stock, unless they specifically
“opt out” of the dividend reinvestment plan so as to receive cash
dividends.
We may not be able
to achieve operating results that will allow us to make dividends and
distributions at a specific level or to increase the amount of these dividends
and distributions from time to time. In addition, we may be limited in our
ability to make dividends and distributions due to the asset coverage test for
borrowings when applicable to us as a business development company under the
Investment Company Act of 1940 and due to provisions in our credit facilities.
If we do not distribute a certain percentage of our income annually, we will
suffer adverse tax consequences, including possible loss of our status as a
regulated investment company. We cannot assure stockholders that they will
receive dividends and distributions at any particular level or at
all.
With respect to the
dividends paid to stockholders, income from origination, structuring, closing,
commitment and other upfront fees associated with investments in portfolio
companies in which our investment advisor on our behalf provides significant
services to the portfolio company in connection with making the investment is
treated as taxable income and accordingly, distributed to stockholders. For the
quarters ended December 31, 2007 and December 31, 2006, these fees totaled $1.2
million and $1.9 million, respectively. For the years ended December
31, 2007 and December 31, 2006, such fees totaled $6.5 million and $4.1 million,
respectively.
Conference
Call
BlackRock Kelso
will host a web cast/teleconference call at 4:30 p.m. (Eastern Time) on Monday,
March 10, 2008 to discuss its fourth quarter and full year 2007 financial
results. All interested parties are welcome to
participate. You can access the teleconference by dialing, from the
United States, (800) 374-0176, or from outside the United States, (706)
679-3431, shortly before 4:30 p.m. and referencing the BlackRock Kelso Capital
Corporation Conference Call (ID Number 38246468). A live, listen-only
web cast will also be available via the investor relations section of
www.blackrockkelso.com.
Both the
teleconference and web cast will be available for replay by 8:00 p.m. (Eastern
Time) on Monday, March 10, 2008 and ending at midnight on Monday, March 17,
2008. To access the replay of the teleconference, callers from the
United States should dial (800) 642-1687 and callers from outside the United
States should dial (706) 645-9291 and enter the Conference ID Number
38246468. To access the web cast, please visit the investor relations
section of www.blackrockkelso.com.
4
BlackRock
Kelso Capital Corporation
Statements
of Assets and Liabilities (Unaudited)
|
December 31,
2007
|
December
31,
2006
|
|
|||||||
|
Assets:
|
|||||||||
|
Investments
at fair value:
|
|||||||||
|
Non-controlled/non-affiliated
investments (amortized cost of $1,049,585,229 and
$716,844,625)
|
$ | 1,018,013,709 | $ | 718,730,964 | |||||
|
Controlled
investments (amortized cost of $38,881,854 and
$35,437,060)
|
14,834,395 | 35,437,060 | |||||||
|
Affiliated
investments (amortized cost of $66,907,657 and $0)
|
65,412,682 | — | |||||||
|
Total
investments at fair value
|
1,098,260,786 | 754,168,024 | |||||||
|
Cash and cash
equivalents
|
5,077,695 | 3,036,413 | |||||||
|
Foreign
currency at fair value (cost of $10,291 and $119,714)
|
10,864 | 126,375 | |||||||
|
Interest
receivable
|
14,260,266 | 7,759,464 | |||||||
|
Dividends
receivable
|
1,796,615 | 43,270 | |||||||
|
Prepaid
expenses and other assets
|
2,414,954 | 1,125,838 | |||||||
|
Total
Assets
|
$ | 1,121,821,180 | $ | 766,259,384 | |||||
|
Liabilities:
|
|||||||||
|
Payable for
investments purchased
|
$ | — | $ | 16,260,000 | |||||
|
Unrealized
depreciation on forward foreign currency contracts
|
451,944 | 475,204 | |||||||
|
Credit
facility payable
|
381,300,000 | 164,000,000 | |||||||
|
Interest
payable on credit facility
|
1,508,277 | 152,793 | |||||||
|
Dividend
distributions payable
|
3,310,606 | 15,803,510 | |||||||
|
Base
management fees payable
|
5,606,213 | 2,157,082 | |||||||
|
Incentive
management fees payable
|
— | 4,443,298 | |||||||
|
Accrued
administrative services expenses
|
361,118 | 366,354 | |||||||
|
Other accrued
expenses and payables
|
1,091,153 | 801,221 | |||||||
|
Total
Liabilities
|
393,629,311 | 204,459,462 | |||||||
|
Net
Assets:
|
|||||||||
|
Common stock,
par value $.001 per share, 100,000,000 and 40,000,000 common shares
authorized, 52,825,109 and 37,627,405 issued and
outstanding
|
52,825 | 37,627 | |||||||
|
Paid-in
capital in excess of par
|
790,378,102 | 563,233,775 | |||||||
|
Distributions
in excess of net investment income
|
(5,411,353 | ) | (3,392,549 | ) | |||||
|
Accumulated
net realized gain
|
729,635 | 497,795 | |||||||
|
Net
unrealized appreciation (depreciation)
|
(57,557,340 | ) | 1,423,274 | ||||||
|
Total Net
Assets
|
728,191,869 | 561,799,922 | |||||||
|
Total
Liabilities and Net Assets
|
$ | 1,121,821,180 | $ | 766,259,384 | |||||
|
Net Asset
Value Per Share
|
$ | 13.78 | $ | 14.93 | |||||
5
BlackRock
Kelso Capital Corporation
Statements
of Operations (Unaudited)
|
Three
months ended
December
31, 2007
|
Three
months ended
December
31, 2006*
|
Year
ended
December
31, 2007
|
Year
ended
December
31, 2006*
|
|||||||||||||
|
Investment
Income:
|
||||||||||||||||
|
Interest
|
$ | 35,093,141 | $ | 17,866,921 | $ | 125,288,030 | $ | 53,309,078 | ||||||||
|
Dividends
|
238,606 | 31,020 | 2,132,403 | 461,223 | ||||||||||||
|
Other
income
|
20,700 | — | 355,695 | 122,134 | ||||||||||||
|
Total
investment income
|
35,352,447 | 17,897,941 | 127,776,128 | 53,892,435 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Base
management fees
|
5,606,214 | 2,876,109 | 19,152,889 | 11,094,308 | ||||||||||||
|
Incentive
management fees
|
— | 3,133,916 | 9,412,097 | 4,443,298 | ||||||||||||
|
Administrative
services
|
340,310 | (115,179 | ) | 1,144,394 | 760,188 | |||||||||||
|
Professional
fees
|
445,745 | (44,864 | ) | 1,249,491 | 486,359 | |||||||||||
|
Director
fees
|
147,525 | 64,526 | 399,385 | 286,113 | ||||||||||||
|
Investment
advisor expenses
|
267,941 | (12,843 | ) | 876,429 | 469,287 | |||||||||||
|
Insurance
|
139,095 | 42,311 | 341,016 | 167,610 | ||||||||||||
|
Interest and
credit facility fees
|
5,801,678 | 261,114 | 20,272,906 | 261,114 | ||||||||||||
|
Amortization
of debt issuance costs
|
179,918 | 18,318 | 387,706 | 18,318 | ||||||||||||
|
Other
|
282,382 | 186,096 | 726,914 | 327,872 | ||||||||||||
|
Expenses
before management fee waiver
|
13,210,808 | 6,409,504 | 53,963,227 | 18,314,467 | ||||||||||||
|
Base
management fee waiver
|
— | (719,027 | ) | (2,056,906 | ) | (4,314,255 | ) | |||||||||
|
Net
expenses
|
13,210,808 | 5,690,477 | 51,906,321 | 14,000,212 | ||||||||||||
|
Net investment
income before excise taxes
|
22,141,639 | 12,207,464 | 75,869,807 | 39,892,223 | ||||||||||||
|
Excise tax
expense
|
(24,035 | ) | — | (24,035 | ) | — | ||||||||||
|
Net
Investment Income
|
22,117,604 | 12,207,464 | 75,845,772 | 39,892,223 | ||||||||||||
|
Realized
and Unrealized Gain (Loss):
|
||||||||||||||||
|
Net realized
gain (loss) on:
|
||||||||||||||||
|
Investments
|
93,984 | 549,513 | 1,623,116 | 777,548 | ||||||||||||
|
Foreign
currency
|
(1,344,917 | ) | (7,072 | ) | (2,268,909 | ) | (298,151 | ) | ||||||||
|
Net realized
gain (loss)
|
(1,250,933 | ) | 542,441 | (645,793 | ) | 479,397 | ||||||||||
|
Net change in
unrealized appreciation (depreciation) on:
|
||||||||||||||||
|
Investments
and cash equivalents
|
(37,754,443 | ) | (320,530 | ) | (59,000,295 | ) | 1,646,103 | |||||||||
|
Foreign
currency translations
|
989,854 | (577,698 | ) | 19,681 | (463,067 | ) | ||||||||||
|
Net change in
unrealized appreciation (depreciation)
|
(36,764,589 | ) | (898,228 | ) | (58,980,614 | ) | 1,183,036 | |||||||||
|
Net realized
and unrealized gain (loss)
|
(38,015,522 | ) | (355,787 | ) | (59,626,407 | ) | 1,662,433 | |||||||||
|
Net
Increase (Decrease) in Net Assets Resulting from
Operations
|
$ | (15,897,918 | ) | $ | 11,851,677 | $ | 16,219,365 | $ | 41,554,656 | |||||||
|
Net Investment
Income Per Share
|
$ | 0.43 | $ | 0.32 | $ | 1.66 | $ | 1.09 | ||||||||
|
Earnings Per
Share
|
$ | (0.31 | ) | $ | 0.31 | $ | 0.35 | $ | 1.13 | |||||||
|
Basic and
Diluted Weighted-Average Shares Outstanding
|
51,987,529 | 37,625,405 | 45,714,141 | 36,632,218 | ||||||||||||
*
Certain amounts have been reclassified to conform to the current period’s
presentation.
6
About
BlackRock Kelso Capital Corporation
BlackRock Kelso
Capital Corporation is a business development company formed in early 2005 by
its management team, BlackRock, Inc. and principals of Kelso & Company, to
provide debt and equity capital to middle-market companies.
The Company's
investment objective is to generate both current income and capital appreciation
through debt and equity investments. The Company invests primarily in
middle-market companies in the form of senior and junior secured and unsecured
debt securities and loans, each of which may include an equity component, and by
making direct preferred, common and other equity investments in such
companies.
Forward-Looking
Statements
This press release,
and other statements that BlackRock Kelso Capital may make, may contain
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act, with respect to BlackRock Kelso Capital’s future
financial or business performance, strategies or expectations. Forward-looking
statements are typically identified by words or phrases such as “trend,”
“potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,”
“anticipate,” “current,” “intention,” “estimate,” “position,” “assume,”
“outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and
similar expressions, or future or conditional verbs such as “will,” “would,”
“should,” “could,” “may” or similar expressions. The information contained on
our website is not a part of this press release.
BlackRock Kelso
Capital cautions that forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time. Forward-looking
statements speak only as of the date they are made, and BlackRock Kelso Capital
assumes no duty to and does not undertake to update forward-looking statements.
Actual results could differ materially from those anticipated in forward-looking
statements and future results could differ materially from historical
performance.
In addition to
factors previously disclosed in BlackRock Kelso Capital's Securities and
Exchange Commission (SEC) reports and those identified elsewhere in this press
release, the following factors, among others, could cause actual results to
differ materially from forward-looking statements or historical performance: (1)
the introduction, withdrawal, success and timing of business initiatives and
strategies; (2) changes in political, economic or industry conditions, the
interest rate environment or financial and capital markets; (3) our relative and
absolute investment performance; (4) the impact of increased competition;
(5) the unfavorable resolution of legal proceedings that may occur; (6) the
extent and timing of any share repurchases; (7) the impact of legislative and
regulatory actions and reforms and regulatory, supervisory or enforcement
actions of government agencies relating to BlackRock Kelso Capital or its
service providers; (8) terrorist activities and international hostilities; and
(9) the impact of changes to tax legislation and, generally, the tax
position of the Company.
BlackRock Kelso
Capital’s Annual Report on Form 10-K for the year ended December 31, 2006 and
the Company’s subsequent reports filed with the SEC identify additional factors
that can affect forward-looking statements.
Available
Information
BlackRock Kelso Capital’s filings with the SEC, press
releases, earnings releases and other financial information are available on its
website at www.blackrockkelso.com
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