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): August 7,
2008
BLACKROCK
KELSO CAPITAL CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware
|
001-33559
|
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:
|
[
]
|
Written
communications pursuant to Rule 425 under the Securities Act (17 CFR
230.425)
|
|
[
]
|
Soliciting
material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
240.14a-12)
|
|
[
]
|
Pre-commencement
communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))
|
|
[
]
|
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
August 7, 2008, the Registrant issued a press release announcing its financial
results for the quarter ended June 30, 2008. 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
7.01.
|
REGULATION
FD DISCLOSURE.
|
The
Registrant issued a press release, filed herewith as Exhibit 99.1, and by this
reference incorporated herein, on August 7, 2008 announcing the declaration of a
third quarter dividend of $0.43 per share and
a share repurchase plan for up to 2.5% of the Registrant’s outstanding shares of
common stock. The dividend is payable on September 30, 2008 to
stockholders of record as of September 15, 2008.
The
information disclosed under this Item 7.01, 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 August 7, 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
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|||
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Date: August
7, 2008
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By:
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/s/
Frank D. Gordon
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|
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Name:
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Frank
D. Gordon
|
||
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Title:
|
Chief
Financial Officer
|
||
EXHIBIT
INDEX
|
Exhibit
Number
|
Description
|
|
99.1
|
Press
Release, dated as of August 7, 2008
|
Exhibit
99.1
|
Investor
Contact:
|
Press
Contact:
|
|
Frank
Gordon
|
Brian
Beades
|
|
212.810.5858
|
212.810.5596
|
BlackRock
Kelso Capital Corporation Declares Regular Third Quarter Dividend of $0.43 per
Share,
Announces
June 30, 2008 Quarterly Financial Results and
Share Repurchase Plan
New York, New York, August 7,
2008 - BlackRock Kelso Capital Corporation (NASDAQ:BKCC) (“BlackRock
Kelso Capital” or the “Company”) announced today that its Board of Directors has
declared a third quarter dividend of $0.43 per share payable on September 30,
2008 to stockholders of record as of September 15, 2008.
BlackRock
Kelso Capital also announced financial results for the quarter ended June 30,
2008.
HIGHLIGHTS:
Investment
Portfolio: $1.15 billion
Net
Assets: $672 million
Net
Asset Value per share: $12.31
Portfolio
Activity for the Quarter Ended June 30, 2008:
Cost
of investments during period: $80.0 million
Sales,
repayments and other exits during period: $23.5 million
Number
of new portfolio companies invested: 2
Number
of portfolio companies at end of period: 64
Operating
Results for the Quarter Ended June 30, 2008 (in thousands, except per share
amounts):
Net
investment income: $23,264
Net
investment income per share: $0.44
Net
realized and unrealized losses: ($11,404)
Net
realized and unrealized losses per share: ($0.21)
Net
increase in net assets from operations: $11,859
Net
increase in net assets from operations per share: $0.22
Portfolio
and Investment Activity
During
the three months ended June 30, 2008, we invested $80.0 million across 2
new and 3 existing portfolio companies. This compares to investing
$297.2 million across 10 new and 5 existing portfolio companies for the three
months ended June 30, 2007. Additionally, we received proceeds
from sales/repayments of principal of approximately $23.5 million during the
three months ended June 30, 2008, versus $166.5 million for the three months
ended June 30, 2007.
At
June 30, 2008, our net portfolio consisted of 64 portfolio companies and was
invested 60% in senior secured loans, 31% in unsecured or subordinated debt
securities, 5% in senior secured notes, 4% in equity investments and less than
1% in cash, cash equivalents and foreign currency. This compares to
69% in senior secured loans, 21% in unsecured or subordinated debt securities,
3% in senior secured notes, 6% in equity investments and less than 1% in cash,
cash equivalents and foreign currency at June 30, 2007. Our average
portfolio company investment by value was approximately $18.0 million at June
30, 2008, versus $18.3 million at June 30, 2007. As of June 30, 2008,
approximately $26.2 million par amount of loans were on non-accrual
status.
Our
weighted average yield on invested capital was 11.3% at June 30, 2008 and 12.5%
at June 30, 2007, respectively. The weighted average yields on our
senior secured loans and other debt securities were 10.3% and 12.8%,
respectively, at June 30, 2008, versus 12.2% and 13.4% at June 30,
2007. Yields on
1
invested
capital exclude common equity investments, preferred equity investments with no
stated dividend rate, short-term investments, cash, cash equivalents and foreign
currency.
We
continue to have substantial capital resources available to fund additional
investments. At June 30, 2008, we had $61.0 million available under
our amended and restated senior secured, multi-currency credit
facility.
Since
our inception of operations in July 2005, we have invested in excess of $1.7
billion across more than 105 portfolio companies in transactions involving more
than 65 financial sponsors.
Results
of Operations
Results
comparisons are for the three and six months ended June 30, 2008 and
2007.
Investment
Income
Investment
income totaled $34.9 million and $70.6 million, respectively, for the three and
six months ended June 30, 2008, compared to $33.2 million and $58.3 million
for the three and six months ended June 30, 2007. The increase in
investment income for the three and six months ended June 30, 2008 reflects the
growth of our portfolio as a result of the deployment of debt capital under our
credit facility and equity capital from our initial public offering in July
2007. Many of our floating rate debt investments bear interest based
on the London Interbank Offered Rate (LIBOR). For the 2008 periods,
investment income increased despite lower prevailing levels of LIBOR
compared to the prior periods, as fixed rate instruments as a percentage of our
debt investments increased to 52% at June 30, 2008 from 36% at June 30,
2007. 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.
Expenses
Net
expenses for the three and six months ended June 30, 2008 were $11.6 million and
$24.1 million, respectively, versus $15.8 million and $26.9 million for the
three and six months ended June 30, 2007. Of these totals, for the
three and six months ended June 30, 2008, $4.3 million and $9.5 million,
respectively, were interest and other credit facility expenses, versus $5.4
million and $9.1 million for the three and six months ended June 30,
2007. In addition, $5.8 million and $9.5 million of
performance-based incentive fees were included in these totals for the three and
six months ended June 30, 2007, respectively. There were no incentive
fees for the three and six months ended June 30, 2008. Expenses net
of performance-based incentive fees and interest and other credit facility
expenses for the three and six months ended June 30, 2008 were $7.3 million and
$14.6 million, respectively, versus $5.7 million and $10.3 million for the three
and six months ended June 30, 2007. Net expenses for the three and
six months ended June 30, 2007 were net of base management fee waivers of $1.1
million and $2.1 million, respectively, which terminated upon the completion of
our IPO in 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 and an increase in other general and
administrative expenses.
Net
Investment Income
Net
investment income totaled $23.3 million and $46.5 million, or $0.44 per share
and $0.88 per share, respectively, for the three and six months ended June 30,
2008. For the three and six months ended June 30, 2007, net
investment income totaled $17.4 million and $31.4 million, or $0.42 per share
and $0.79 per share, respectively.
2
Net
Realized Gains (Losses)
Total
net realized gains (losses) for the three and six months ended June 30, 2008
were ($1.5) million and ($1.3) million, respectively, compared to $0.5 million
and $0.3 million for the three and six months ended June 30,
2007. The losses are primarily a result of forward currency contracts
used to hedge our investments denominated in foreign currencies.
Net
Unrealized Depreciation
For
the three and six months ended June 30, 2008, the net change in unrealized
depreciation on the Company’s investments and foreign currency translation was
($9.9) million and ($72.8) million, respectively, versus ($5.2) million and
($2.0) million for the three and six months ended June 30, 2007. Net
unrealized depreciation was ($130.3) million at June 30, 2008 and ($0.6) million
at June 30, 2007. The net change in unrealized depreciation was
primarily a result of declines in market quotations for the quoted investments
in our portfolio, as well as reductions in the valuations of several unquoted
investments, including Tygem Holdings, Inc. We
believe the declines in valuations of our investments are due primarily to
instability of the credit markets and changes in the current interest rate
environment. The unrealized depreciation on investments does not have
an impact on our current ability to pay distributions to
stockholders.
Net
Change in Net Assets from Operations
For
the three and six months ended June 30, 2008, the net change in net assets from
operations was $11.9 million and ($27.6) million, or $0.22 per share and ($0.52)
per share, respectively, compared to $12.6 million and $29.7 million, or $0.31
per share and $0.75 per share, for the three and six months ended June 30,
2007.
Liquidity
and Capital Resources
At
June 30, 2008, we had $484 million in borrowings outstanding and $61 million
available for use under our $545 million credit facility, which matures in
December 2010.
On
January 14, 2008, we filed a Form N-2 registration statement with the SEC that
would permit us, after it is declared effective by the SEC, to offer, from time
to time, up to $1 billion of our common stock, preferred stock, debt securities,
warrants representing rights to purchase shares of our common stock, preferred
stock or debt securities and subscription rights.
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 three and six months ended June 30, 2008 totaled
$22.9 million, or $0.43 per share, and $45.6 million, or $0.86 per share,
respectively. For the three and six months ended June 30, 2007,
dividends paid totaled $16.8 million, or $0.42 per share, and $33.2 million, or
$0.84 per share, respectively. Tax characteristics of all dividends
will be reported to stockholders on Form 1099 after the end of the calendar
year.
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. Dividends reinvested pursuant to our dividend reinvestment
plan totaled $17.2 million for the six months ended June 30, 2008, versus
$16.8 million and $48.8 million for the six months ended June 30,
2007. Pursuant to our dividend reinvestment plan, the dividend
reinvestment price for the dividend paid to stockholders on June 30, 2008 was
95% of the closing market price of our common stock on that date, or $8.987 per
common share, which was less than our net asset value. Reinvestment
at this price resulted in a dilution of our net asset value of
approximately $0.09 per share at June 30, 2008.
3
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
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 we receive is treated as taxable income and
accordingly, distributed to stockholders. For the three and six
months ended June 30, 2008, these fees totaled $1.7 million and $2.6
million, respectively. For the three and six months ended
June 30, 2007, such fees totaled $2.5 million and $3.8 million,
respectively.
Share
Repurchase Plan
BlackRock
Kelso Capital also announced that its Board of Directors has approved a share
repurchase plan. Under this plan, the Company may repurchase up to
2.5% of its outstanding shares of common stock from time to time in open market
or privately negotiated transactions. The repurchase program does not
obligate the Company to acquire any specific number of shares and may be
discontinued at any time.
The
Company intends to fund the repurchases with available cash. The
repurchase plan is expected to be in effect through the earlier of June 30, 2009
or until the approved number of shares have been repurchased.
Conference
Call
BlackRock
Kelso Capital will host a web cast/teleconference call at 5:00 p.m. (Eastern
Time) on Thursday, August 7, 2008 to discuss its second quarter 2008 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 5:00 p.m. and referencing the BlackRock Kelso Capital
Corporation Conference Call (ID Number 57348765). 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. on
Thursday, August 7, 2008 and ending at midnight on Thursday, August 14,
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
57348765. 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
|
June
30,
2008
(Unaudited)
|
December 31,
2007
|
|||||||
|
Assets:
|
||||||||
|
Investments
at fair value:
|
||||||||
|
Non-controlled,
non-affiliated investments (amortized cost of $1,173,150,993 and
$1,049,585,229)
|
$ | 1,083,393,638 | $ | 1,018,013,709 | ||||
|
Non-controlled,
affiliated investments (amortized cost of $64,201,439 and
$66,907,657)
|
56,441,006 | 65,412,682 | ||||||
|
Controlled
investments (amortized cost of $42,449,140 and
$38,881,854)
|
9,374,448 | 14,834,395 | ||||||
|
Total
investments at fair value
|
1,149,209,092 | 1,098,260,786 | ||||||
|
Cash
and cash equivalents
|
4,731,097 | 5,077,695 | ||||||
|
Foreign
currency at fair value (cost of $204,243 and $10,291)
|
204,179 | 10,864 | ||||||
|
Net
unrealized appreciation on forward foreign currency
contracts
|
249,248 | — | ||||||
|
Interest
receivable
|
13,485,419 | 14,260,266 | ||||||
|
Dividends
receivable
|
2,695,021 | 1,796,615 | ||||||
|
Prepaid
expenses and other assets
|
1,849,822 | 2,414,954 | ||||||
|
Total
Assets
|
$ | 1,172,423,878 | $ | 1,121,821,180 | ||||
|
Liabilities:
|
||||||||
|
Payable
for investments purchased
|
$ | 8,700,000 | $ | — | ||||
|
Net
unrealized depreciation on forward foreign currency
contracts
|
— | 451,944 | ||||||
|
Credit
facility payable
|
484,000,000 | 381,300,000 | ||||||
|
Interest
payable on credit facility
|
331,558 | 1,508,277 | ||||||
|
Dividend
distributions payable
|
— | 3,310,606 | ||||||
|
Base
management fees payable
|
5,583,589 | 5,606,213 | ||||||
|
Accrued
administrative services
|
282,464 | 361,118 | ||||||
|
Other
accrued expenses and payables
|
1,340,156 | 1,091,153 | ||||||
|
Total
Liabilities
|
500,237,767 | 393,629,311 | ||||||
|
Net
Assets:
|
||||||||
|
Common
stock, par value $.001 per share, 100,000,000 and
40,000,000
common shares authorized, 54,624,543 and 52,825,109
issued
and outstanding
|
54,625 | 52,825 | ||||||
|
Paid-in
capital in excess of par
|
807,607,772 | 790,378,102 | ||||||
|
Distributions in excess of net investment income
|
(4,556,801 | ) | (5,411,353 | ) | ||||
|
Accumulated
net realized gain (loss)
|
(583,303 | ) | 729,635 | |||||
|
Net
unrealized depreciation
|
(130,336,182 | ) | (57,557,340 | ) | ||||
|
Total
Net Assets
|
672,186,111 | 728,191,869 | ||||||
|
Total
Liabilities and Net Assets
|
$ | 1,172,423,878 | $ | 1,121,821,180 | ||||
|
Net
Asset Value Per Share
|
$ | 12.31 | $ | 13.78 | ||||
5
BlackRock Kelso Capital Corporation
Statements
of Operations (Unaudited)
|
|
Three
months ended
June
30,
2008
|
Three
months ended
June
30,
2007*
|
Six
months ended
June
30,
2008
|
Six
months ended
June
30,
2007*
|
||||||||||||
|
Investment
Income:
|
||||||||||||||||
|
From
non-controlled, non-affiliated investments:
|
||||||||||||||||
|
Interest
|
$ | 32,528,115 | $ | 31,254,332 | $ | 65,616,322 | $ | 54,831,984 | ||||||||
|
Dividends
|
303,589 | 137,746 | 784,703 | 175,242 | ||||||||||||
|
Other
income
|
1,750 | 5,000 | 2,296 | 18,495 | ||||||||||||
|
From
non-controlled, affiliated investments:
|
||||||||||||||||
|
Interest
|
1,153,761 | 543,452 | 2,354,325 | 819,083 | ||||||||||||
|
Dividends
|
342,530 | 126,667 | 737,050 | 126,667 | ||||||||||||
|
From
controlled investments:
|
||||||||||||||||
|
Interest
|
544,191 | 924,581 | 1,073,757 | 1,849,556 | ||||||||||||
|
Dividends
|
— | 215,787 | — | 438,768 | ||||||||||||
|
Total
investment income
|
34,873,936 | 33,207,565 | 70,568,453 | 58,259,795 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Base
management fees
|
5,583,589 | 4,534,551 | 11,150,449 | 8,227,626 | ||||||||||||
|
Incentive
management fees
|
— | 5,831,674 | — | 9,524,323 | ||||||||||||
|
Administrative
services
|
311,998 | 259,773 | 605,433 | 478,476 | ||||||||||||
|
Professional
fees
|
240,141 | 396,195 | 838,471 | 542,786 | ||||||||||||
|
Director
fees
|
98,235 | 66,667 | 192,735 | 130,172 | ||||||||||||
|
Investment
advisor expenses
|
263,951 | 194,174 | 538,849 | 390,267 | ||||||||||||
|
Insurance
|
138,853 | 48,844 | 276,436 | 89,775 | ||||||||||||
|
Interest
and credit facility fees
|
4,292,574 | 5,434,516 | 9,506,631 | 9,149,321 | ||||||||||||
|
Amortization
of debt issuance costs
|
167,230 | 82,264 | 333,425 | 144,969 | ||||||||||||
|
Other
|
513,772 | 134,372 | 648,424 | 266,441 | ||||||||||||
|
Expenses
before management fee waiver
|
11,610,343 | 16,983,030 | 24,090,853 | 28,944,156 | ||||||||||||
|
Base
management fee waiver
|
— | (1,133,638 | ) | — | (2,056,907 | ) | ||||||||||
|
Net
expenses
|
11,610,343 | 15,849,392 | 24,090,853 | 26,887,249 | ||||||||||||
|
Net
Investment Income
|
23,263,593 | 17,358,173 | 46,477,600 | 31,372,546 | ||||||||||||
|
Realized
and Unrealized Gain (Loss):
|
||||||||||||||||
|
Net
realized gain (loss):
|
||||||||||||||||
|
Non-controlled,
non-affiliated investments
|
122,229 | 647,015 | 126,639 | 669,042 | ||||||||||||
|
Non-controlled,
affiliated investments
|
88,830 | — | 112,783 | — | ||||||||||||
|
Foreign
currency
|
(1,729,512 | ) | (177,828 | ) | (1,552,360 | ) | (392,730 | ) | ||||||||
|
Net
realized gain (loss)
|
(1,518,453 | ) | 469,187 | (1,312,938 | ) | 276,312 | ||||||||||
|
Net
change in unrealized appreciation or depreciation on:
|
||||||||||||||||
|
Non-controlled,
non-affiliated investments
|
(8,263,289 | ) | (393,538 | ) | (58,185,837 | ) | 2,717,064 | |||||||||
|
Non-controlled,
affiliated investments
|
470,657 | (79,234 | ) | (6,265,458 | ) | (12,524 | ) | |||||||||
|
Controlled
investments
|
(3,678,763 | ) | (5,139,175 | ) | (9,027,233 | ) | (5,139,175 | ) | ||||||||
|
Foreign
currency translation
|
1,585,589 | 408,120 | 699,686 | 437,590 | ||||||||||||
|
Net
change in unrealized appreciation or depreciation
|
(9,885,806 | ) | (5,203,827 | ) | (72,778,842 | ) | (1,997,045 | ) | ||||||||
|
Net
realized and unrealized gain (loss)
|
(11,404,259 | ) | (4,734,640 | ) | (74,091,780 | ) | (1,720,733 | ) | ||||||||
|
Net
Increase (Decrease) in Net Assets Resulting from
Operations
|
$ | 11,859,334 | $ | 12,623,533 | $ | (27,614,180 | ) | $ | 29,651,813 | |||||||
|
Net
Investment Income Per Share
|
$ | 0.44 | $ | 0.42 | $ | 0.88 | $ | 0.79 | ||||||||
|
Earnings
(Loss) Per Share
|
$ | 0.22 | $ | 0.31 | $ | (0.52 | ) | $ | 0.75 | |||||||
|
Basic
and Diluted Weighted-Average Shares Outstanding
|
53,289,838 | 40,968,979 | 53,059,946 | 39,741,957 | ||||||||||||
*
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) our future operating results; (2) our
business prospects and the prospects of our portfolio companies; (3) the impact
of investments that we expect to make; (4) our contractual arrangements and
relationships with third parties; (5) the dependence of our future success
on the general economy and its impact on the industries in which we invest; (6)
the ability of our portfolio companies to achieve their objectives; (7) our
expected financings and investments; (8) the adequacy of our cash resources and
working capital; (9) the timing of cash flows, if any, from the operations
of our portfolio companies; (10) the ability of the Advisor to locate suitable
investments for us and to monitor and administer our investments; (11) the
ability of the Advisor to attract and retain highly talented professionals;
(12) fluctuations in foreign currency exchange rates; and (13) the impact
of changes to tax legislation and, generally, our tax position.
BlackRock
Kelso Capital’s Annual Report on Form 10-K for the year ended December 31, 2007
filed with the SEC identifies 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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