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): November 5,
2009
BLACKROCK
KELSO CAPITAL CORPORATION
(Exact
name of registrant as specified in its charter)
|
Delaware
|
001-33559
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20-2725151
|
|
(State
or other jurisdiction of
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(Commission
|
(IRS
Employer
|
|
incorporation
or organization)
|
File
Number)
|
Identification
Number)
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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)
|
|
[
]
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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))
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[
]
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Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))
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|
ITEM
2.02.
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RESULTS
OF OPERATIONS AND FINANCIAL
CONDITION.
|
On
November 5, 2009, the Registrant issued a press release announcing its financial
results for the quarter ended September 30, 2009. 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 to be “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.
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REGULATION
FD DISCLOSURE.
|
The
Registrant issued a press release, filed herewith as Exhibit 99.1, and by this
reference incorporated herein, on November 5, 2009 announcing the declaration of
a fourth quarter dividend of $0.32 per share. The dividend is payable on
January 4, 2010 to stockholders of record as of December 21, 2009.
The
information disclosed under this Item 7.01, including Exhibit 99.1 hereto, is
being furnished and shall not be deemed to be “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.
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ITEM
9.01.
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FINANCIAL
STATEMENTS AND EXHIBITS.
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(d)
Exhibits.
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Exhibit
Number
|
Description
|
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99.1
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Press
Release, dated as of November 5, 2009
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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.
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BLACKROCK
KELSO CAPITAL CORPORATION
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|||
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Date: November
5, 2009
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By:
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/s/
Frank D. Gordon
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Name:
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Frank
D. Gordon
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||
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Title:
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Chief
Financial Officer
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||
EXHIBIT
INDEX
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Exhibit
Number
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Description
|
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99.1
|
Press
Release, dated as of November 5, 2009
|
Exhibit
99.1
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Investor
Contact:
|
Press
Contact:
|
|
Frank
Gordon
|
Brian
Beades
|
|
212.810.5858
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212.810.5596
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BlackRock
Kelso Capital Corporation Doubles Dividend to $0.32 per Share,
Announces
September 30, 2009 Quarterly Financial Results
New York, New York, November 5,
2009 - BlackRock Kelso Capital Corporation (NASDAQ:BKCC) (“BlackRock Kelso Capital” or the “Company”)
announced today that its Board of Directors has declared a fourth quarter
dividend of $0.32 per share payable on January 4, 2010 to stockholders of record
as of December 21, 2009. The amount of this dividend represents an
increase of $0.16 per share over the Company’s $0.16 per share third quarter
dividend.
The
increase in the dividend marks a return to the Company’s practice of
distributing to its stockholders an amount that is more reflective of its net
investment income.* Earlier this year and in light of the previously
unsettled economic conditions, the Company had taken the conservative step of
temporarily reducing its dividend to preserve operating
flexibility. The Company’s recent operating results warrant a return
to the previous dividend policy. In addition, the Company expects to
carry forward to 2010 any 2009 taxable income in excess of 2009
distributions.
James
R. Maher, Chairman and Chief Executive Officer of BlackRock Kelso Capital,
commented: “We are pleased that our operating results and strong
balance sheet have enabled us to increase the amount of our dividend
distributions to stockholders. There are attractive investment
opportunities available in the middle-market and a dwindling number of capital
providers to middle-market companies. We are excited to have the
capital resources and disciplined investment process in place to take advantage
of these opportunities.”
BlackRock
Kelso Capital also announced financial results for the quarter ended September
30, 2009.
HIGHLIGHTS:
Investment
Portfolio: $881.2 million
Net
Assets: $540.4 million
Net
Indebtedness (borrowings less cash and cash equivalents): $347.0
million
Net
Asset Value per share: $9.59
Portfolio
Activity for the Quarter Ended September 30, 2009:
Cost
of investments during period: $11.0 million
Sales,
repayments and other exits during period: $28.3 million
Number
of portfolio companies at end of period: 60
Operating
Results for the Quarter Ended September 30, 2009:
Net
investment income per share: $0.39
Dividends
declared per share: $0.16
Net
increase in net assets from operations per share: $0.55
Net
investment income: $21.8 million
Net
realized and unrealized gains: $9.4 million
Net
increase in net assets from operations: $31.1 million
Portfolio
and Investment Activity
During
the three months ended September 30, 2009, we invested $11.0 million across five
existing portfolio companies. This compares to investing $8.7 million
across existing portfolio companies for the three months ended September 30,
2008. Sales and repayments of investment principal totaled $28.3
million during the three months ended September 30, 2009, versus $60.6 million
during the three months ended September 30, 2008.
* To
satisfy the annual distribution requirements to maintain its qualification as a
regulated investment company under the Internal Revenue Code, the Company must
distribute a certain percentage of its net investment income determined on a tax
basis, which may differ from net investment income determined in accordance with
generally accepted accounting principles.
At
September 30, 2009, our portfolio consisted of 60 portfolio companies and was
invested 59% in senior secured loans, 31% in unsecured or subordinated debt
securities, 6% in senior secured notes, 4% in equity investments and less than
1% in cash and cash equivalents. This compares to 57% in senior
secured loans, 29% in unsecured or subordinated debt securities, 5% in senior
secured notes, 3% in equity investments and 6% in cash and cash equivalents at
September 30, 2008. Our average portfolio company investment at
amortized cost was approximately $19.1 million at September 30, 2009, versus
$19.8 million at September 30, 2008. At September 30, 2009, 2.4% of
our total debt investments at fair value (or 5.5% at amortized cost) were on
non-accrual status.
The
weighted average yields of the debt and income producing equity securities in
our portfolio at their current cost basis were 10.9% at September 30, 2009 and
11.9% at September 30, 2008. The weighted average yields on our
senior secured loans and other debt securities at their current cost basis were
10.0% and 13.2%, respectively, at September 30, 2009, versus 11.6% and 12.2% at
September 30, 2008. Yields exclude common equity investments,
preferred equity investments with no stated dividend rate, short-term
investments, cash and cash equivalents.
At
September 30, 2009, we had $0.5 million in cash and cash equivalents and $197.5
million available under our senior secured, multi-currency credit
facility.
Results
of Operations
Results
comparisons are for the three and nine months ended September 30, 2009 and
2008.
Investment
Income
Investment
income totaled $29.4 million and $94.6 million, respectively, for the three and
nine months ended September 30, 2009, compared to $37.4 million and $108.0
million for the three and nine months ended September 30, 2008. The
decrease in investment income for the three and nine months ended September 30,
2009 primarily reflects the impact of lower levels of the London Interbank
Offered Rate, or LIBOR, on interest income from our floating rate debt
investments, which generally bear interest based on
LIBOR. Three-month LIBOR averaged 0.41% and 0.83% during the three
and nine months ended September 30, 2009, respectively, compared to 2.91% and
2.98% during the three and nine months ended September 30, 2008.
Expenses
Expenses
for the three and nine months ended September 30, 2009 were $7.6 million and
$23.5 million, respectively, versus $11.9 million and $36.0 million for the
three and nine months ended September 30, 2008. Of these
totals, for the three and nine months ended September 30, 2009, $1.5 million and
$5.0 million, respectively, were interest and other credit facility expenses,
versus $4.3 million and $13.8 million for the three and nine months ended
September 30, 2008. Expenses also consist of base management fees,
investment advisor expenses, professional fees, administrative services
expenses, amortization of debt issuance costs, insurance expenses, director fees
and miscellaneous other expenses. The decrease in interest expense
and fees related to the credit facility for the three and nine months ended
September 30, 2009 is mainly a result of reduced borrowing costs from lower
prevailing levels of LIBOR. The decrease in base management fees for
the three and nine months ended September 30, 2009 reflects a decline in the
quarterly portfolio values on which the fees are paid (in
arrears). Other general and administrative expenses were generally
lower than in the prior periods due to the reduced level of new investment
originations. For the three and nine months ended September 30, 2009
and 2008, there were no incentive management fees paid. We may incur
such fees in the three months ending December 31, 2009 and
thereafter.
Net
Investment Income
Net
investment income totaled $21.8 million and $71.1 million, or $0.39 per share
and $1.28 per share, respectively, for the three and nine months ended September
30, 2009. For the three and nine months ended September 30, 2008, net
investment income totaled $25.6 million and $72.1 million, or $0.47 per share
and $1.34 per share, respectively.
Net
Realized Gain or Loss
Total
net realized gain or loss for the three and nine months ended September 30, 2009
were losses of ($56.3) million and ($64.9) million, respectively, compared to a
gain of $29.2 thousand and a loss of ($1.3) million for the three and nine
months ended September 30, 2008. Net realized loss from the
disposition of investments resulted
2
primarily
from the restructuring of our investments in Advanstar Inc., Alpha Media Group
Inc. and Mattress Giant Corporation in the third quarter and United
Subcontractors Inc. in the second quarter of 2009. Substantially all
of the net realized loss represents amounts that had been reflected in
unrealized depreciation on investments in prior periods. Foreign
currency losses of ($1.0) million and ($2.5) million for the three and nine
months ended September 30, 2009, respectively, mainly represent losses on
forward currency contracts used to hedge our investments denominated in foreign
currencies.
Net
Unrealized Appreciation or Depreciation
For
the three and nine months ended September 30, 2009, the net change in unrealized
appreciation or depreciation on the Company’s investments and foreign currency
translation was appreciation of $65.7 million and $44.7 million, respectively,
versus depreciation of ($44.4) million and ($117.2) million for the three and
nine months ended September 30, 2008. The net unrealized appreciation
on investments for the three and nine months ended September 30, 2009 includes
$60.6 million and $57.7 million relating to reversals of prior period net
unrealized depreciation as a result of investment restructurings and
dispositions. Net unrealized depreciation was ($264.6) million at
September 30, 2009 and ($174.7) million at September 30, 2008. The
net unrealized appreciation for the three and nine months ended September 30,
2009 was primarily a result of the reversals described above and improved
capital market conditions. The valuations of our investments were
favorably impacted by market-wide decreases in interest yields, as well as
increases in multiples used to estimate the fair value of some of our
investments. Market-wide movements and trading multiples are not
necessarily indicative of any fundamental change in the condition or prospects
of our portfolio companies.
Net
Change in Net Assets from Operations
For
the three and nine months ended September 30, 2009, the net change in net assets
from operations was $31.1 million and $50.9 million, or $0.55 per share and
$0.91 per share, respectively, compared to ($18.8) million and ($46.4) million,
or ($0.34) per share and ($0.87) per share, for the three and nine months ended
September 30, 2008.
Liquidity
and Capital Resources
At
September 30, 2009, we had $0.5 million in cash and cash equivalents, $347.5
million in borrowings outstanding and, subject to leverage restrictions, $197.5
million available for use under our $545 million credit facility, which matures
in December 2010. At September 30, 2009, we were in compliance with
regulatory coverage requirements with an asset coverage ratio of 255% and were
in compliance with all financial covenants under our credit
facility. In the near term, we expect to meet our liquidity needs
through use of the remaining availability under our credit facility and
continued cash flows from operations. In the future, we may raise
additional equity or debt capital off our shelf registration statement, among
other options. The primary use of funds will be investments in
portfolio companies, cash distributions to our stockholders, repayment of
indebtedness and other general corporate purposes.
Dividends
Dividends
declared to stockholders for the three and nine months ended September 30, 2009
totaled $9.0 million, or $0.16 per share, and $26.7 million, or $0.48 per share,
respectively. For the three and nine months ended September 30, 2008,
dividends declared totaled $23.5 million, or $0.43 per share, and $69.1 million,
or $1.29 per share, respectively. Tax characteristics of all dividends will be
reported to stockholders on Form 1099 after the end of the calendar
year.
We
have elected to be taxed as a regulated investment company, or RIC, under
Subchapter M of the Internal Revenue Code. To maintain our status as
a RIC, 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 have made,
and intend to continue to make, timely distributions sufficient to satisfy the
annual distribution requirements to maintain our qualification as a
RIC. We also intend to make distributions of net realized capital
gains, if any, at least annually. We may, at our discretion, carry
forward taxable income in excess of calendar year distributions and pay a 4%
excise tax on this income. We will accrue excise tax on estimated
undistributed taxable income as required, although at this time there are no
assurances that the Company’s 2009 taxable income will exceed 2009
distributions.
3
Income
we receive from origination, structuring, closing, commitment and other upfront
fees associated with investments in portfolio companies is treated as taxable
income when received and accordingly, distributed to
stockholders. For the three and nine months ended September 30,
2009, there were no such fees. For the three and nine months ended
September 30, 2008, these fees totaled zero and $2.6 million,
respectively.
Temporary
guidance issued by the Internal Revenue Service earlier this year permits
publicly-traded RICs to distribute stock to satisfy their distribution
requirements if stated conditions are met. Our Board of Directors has
not yet made a determination whether to utilize the new guidance.
Dividend
Reinvestment and Dividend Reinvestment Plan
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. With respect to our dividends
declared to stockholders for the nine months ended September 30, 2009, a total
of $9.1 million was reinvested pursuant to our dividend reinvestment
plan. With respect to our dividends declared to stockholders for the
nine months ended September 30, 2008, a total of $28.7 million was reinvested
pursuant to our dividend reinvestment plan.
Under
the terms of our amended and restated dividend reinvestment plan, dividends may
be paid in newly issued or treasury shares of our common stock at a price equal
to 95% of the market price on the dividend payment date. This feature
of the plan means that, under certain circumstances, we may issue shares of our
common stock at a price below NAV per share, which could cause our stockholders
to experience dilution. With respect to our dividends declared to
stockholders for the nine months ended September 30, 2009, reinvestment at such
prices resulted in cumulative dilution of our NAV of approximately $0.13 per
share.
Share
Repurchase Plan
In
August 2008, our Board of Directors approved a share repurchase plan under which
we may repurchase up to 2.5% of our outstanding shares of common stock from time
to time in open market or privately negotiated transactions. In May
2009, our Board of Directors approved an extension and increase to the plan
which authorized us to repurchase up to an additional 2.5% of our outstanding
shares of common stock. The repurchase plan does not obligate us to
acquire any specific number of shares and may be discontinued at any
time. The repurchase plan is expected to be in effect through the
earlier of June 30, 2010 or until the approved number of shares has been
repurchased. There were no purchases during the three months ended
September 30, 2009. During the nine months ended September 30, 2009,
we purchased a total of 583,572 shares of our common stock on the open market
for $2.2 million, including brokerage commissions. Since inception of
the repurchase plan through September 30, 2009, we have purchased 961,679 shares
of our common stock on the open market for $5.4 million, including brokerage
commissions. At September 30, 2009, the total number of remaining
shares authorized for repurchase was 1,794,971. We are currently
holding the shares we repurchased in treasury.
Notice
is hereby given in accordance with Section 23(c) of the Investment Company Act
of 1940 that from time to time we may purchase shares of our common stock in the
open market at prevailing market prices.
4
Conference
Call
BlackRock
Kelso Capital will host a webcast/teleconference call at 4:30 p.m. (Eastern
Time) on Thursday, November 5, 2009 to discuss its third quarter 2009 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 34017498). A live, listen-only
webcast will also be available via the investor relations section of
www.blackrockkelso.com.
Both
the teleconference and webcast will be available for replay by 8:00 p.m. on
Thursday, November 5, 2009 and ending at midnight on Thursday, November 12,
2009. 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
34017498. To access the webcast, please visit the investor relations
section of www.blackrockkelso.com.
5
BlackRock
Kelso Capital Corporation
Statements
of Assets and Liabilities (Unaudited)
|
September
30,
2009
|
December 31,
2008
|
|||||||
|
Assets:
|
||||||||
|
Investments
at fair value:
|
||||||||
|
Non-controlled,
non-affiliated investments (amortized cost of $1,011,492,301 and
$1,115,354,825)
|
$ | 843,297,117 | $ | 875,633,291 | ||||
|
Non-controlled,
affiliated investments (amortized cost of $63,497,562 and
$64,268,941)
|
26,884,202 | 40,015,080 | ||||||
|
Controlled
investments (amortized cost of $69,902,772 and
$56,207,945)
|
10,495,706 | 11,196,555 | ||||||
|
Total
investments at fair value (amortized cost of $1,144,892,635 and
$1,235,831,711)
|
880,677,025 | 926,844,926 | ||||||
|
Cash
equivalents
|
162,880 | 15,024,972 | ||||||
|
Cash
denominated in foreign currencies (cost of $342,871 and
$764,413)
|
349,803 | 761,299 | ||||||
|
Unrealized
appreciation on forward foreign currency contracts
|
— | 717,972 | ||||||
|
Interest
receivable
|
16,496,729 | 16,300,537 | ||||||
|
Dividends
receivable
|
6,174,061 | 4,161,246 | ||||||
|
Prepaid
expenses and other assets
|
1,961,554 | 2,380,988 | ||||||
|
Total
Assets
|
$ | 905,822,052 | $ | 966,191,940 | ||||
|
Liabilities:
|
||||||||
|
Payable
for investments purchased
|
$ | 1,850,238 | $ | 1,005,101 | ||||
|
Unrealized
depreciation on forward foreign currency contracts
|
408,512 | 1,054,165 | ||||||
|
Credit
facility payable
|
347,500,000 | 426,000,000 | ||||||
|
Interest
payable on credit facility
|
273,677 | 835,491 | ||||||
|
Dividend
distributions payable
|
9,015,440 | 19,463,166 | ||||||
|
Base
management fees payable
|
4,555,811 | 5,725,029 | ||||||
|
Accrued
administrative services
|
189,957 | 170,445 | ||||||
|
Other
accrued expenses and payables
|
1,652,122 | 1,643,042 | ||||||
|
Total
Liabilities
|
365,445,757 | 455,896,439 | ||||||
|
Net
Assets:
|
||||||||
|
Common
stock, par value $.001 per share, 100,000,000 common shares authorized,
57,308,179 and 55,670,594 issued and
56,346,500
and 55,292,487 outstanding
|
57,308 | 55,671 | ||||||
|
Paid-in
capital in excess of par
|
826,790,721 | 818,627,914 | ||||||
|
Undistributed
net investment income
|
48,174,028 | 3,855,016 | ||||||
|
Accumulated
net realized gain (loss)
|
(64,606,945) | 243,475 | ||||||
|
Net
unrealized depreciation
|
(264,612,917) | (309,295,567) | ||||||
|
Treasury
stock at cost, 961,679 and 378,107 shares held
|
(5,425,900) | (3,191,008) | ||||||
|
Total
Net Assets
|
540,376,295 | 510,295,501 | ||||||
|
Total
Liabilities and Net Assets
|
$ | 905,822,052 | $ | 966,191,940 | ||||
|
Net
Asset Value Per Share
|
$ | 9.59 | $ | 9.23 | ||||
6
|
BlackRock
Kelso Capital Corporation
Statements
of Operations (Unaudited)
|
Three
months ended
September
30,
2009
|
Three
months ended
September
30,
2008
|
Nine
months ended
September
30,
2009
|
Nine
months ended
September
30,
2008
|
||||||||||||
|
Investment
Income:
|
||||||||||||||||
|
From
non-controlled, non-affiliated investments:
|
||||||||||||||||
|
Interest
|
$ | 27,636,401 | $ | 35,516,763 | $ | 90,126,212 | $ | 101,133,085 | ||||||||
|
Dividends
|
451,908 | 472,562 | 1,322,664 | 1,257,265 | ||||||||||||
|
Other
income
|
— | 16,142 | — | 18,438 | ||||||||||||
|
From
non-controlled, affiliated investments:
|
||||||||||||||||
|
Interest
|
753,690 | 1,170,717 | 1,668,208 | 3,525,042 | ||||||||||||
|
Dividends
|
279,079 | 257,618 | 820,493 | 994,668 | ||||||||||||
|
From
controlled investments:
|
||||||||||||||||
|
Interest
|
238,408 | 11,910 | 672,837 | 1,085,667 | ||||||||||||
|
Total
investment income
|
29,359,486 | 37,445,712 | 94,610,414 | 108,014,165 | ||||||||||||
|
Expenses:
|
||||||||||||||||
|
Base
management fees
|
4,555,811 | 5,841,124 | 13,951,061 | 16,991,573 | ||||||||||||
|
Interest
and credit facility fees
|
1,456,369 | 4,311,893 | 5,004,980 | 13,818,524 | ||||||||||||
|
Investment
advisor expenses
|
341,872 | 283,301 | 1,028,939 | 822,150 | ||||||||||||
|
Professional
fees
|
342,878 | 622,532 | 949,444 | 1,461,003 | ||||||||||||
|
Administrative
services
|
174,490 | 261,744 | 605,525 | 867,177 | ||||||||||||
|
Amortization
of debt issuance costs
|
172,031 | 149,068 | 511,520 | 482,493 | ||||||||||||
|
Insurance
|
152,181 | 119,781 | 413,406 | 396,217 | ||||||||||||
|
Director
fees
|
84,083 | 82,450 | 268,238 | 275,185 | ||||||||||||
|
Other
|
298,190 | 191,941 | 808,935 | 840,365 | ||||||||||||
|
Total
expenses
|
7,577,905 | 11,863,834 | 23,542,048 | 35,954,687 | ||||||||||||
|
Net Investment
Income
|
21,781,581 | 25,581,878 | 71,068,366 | 72,059,478 | ||||||||||||
|
Realized
and Unrealized Gain (Loss):
|
||||||||||||||||
|
Net
realized gain (loss):
|
||||||||||||||||
|
Non-controlled,
non-affiliated investments
|
(55,331,272 | ) | 187,711 | (62,394,229 | ) | 314,350 | ||||||||||
|
Non-controlled,
affiliated investments
|
— | — | 12,240 | 112,783 | ||||||||||||
|
Foreign
currency
|
(981,390 | ) | (158,501 | ) | (2,468,431 | ) | (1,710,861 | ) | ||||||||
|
Net
realized gain (loss)
|
(56,312,662 | ) | 29,210 | (64,850,420 | ) | (1,283,728 | ) | |||||||||
|
Net
change in unrealized appreciation or depreciation on:
|
||||||||||||||||
|
Non-controlled,
non-affiliated investments
|
82,569,638 | (36,330,023 | ) | 71,526,349 | (94,515,860 | ) | ||||||||||
|
Non-controlled,
affiliated investments
|
(13,462,326 | ) | (1,700,589 | ) | (22,434,442 | ) | (7,966,047 | ) | ||||||||
|
Controlled
investments
|
(1,969,822 | ) | (9,392,438 | ) | (4,320,733 | ) | (18,419,671 | ) | ||||||||
|
Foreign
currency translation
|
(1,460,443 | ) | 3,018,444 | (88,524 | ) | 3,718,130 | ||||||||||
|
Net
change in unrealized appreciation or depreciation
|
65,677,047 | (44,404,606 | ) | 44,682,650 | (117,183,448 | ) | ||||||||||
|
Net
realized and unrealized gain (loss)
|
9,364,385 | (44,375,396 | ) | (20,167,770 | ) | (118,467,176 | ) | |||||||||
|
Net Increase (Decrease) in Net
Assets Resulting from Operations
|
$ | 31,145,966 | $ | (18,793,518 | ) | $ | 50,900,596 | $ | (46,407,698 | ) | ||||||
|
Net
Investment Income Per Share
|
$ | 0.39 | $ | 0.47 | $ | 1.28 | $ | 1.34 | ||||||||
|
Earnings
(Loss) Per Share
|
$ | 0.55 | $ | (0.34 | ) | $ | 0.91 | $ | (0.87 | ) | ||||||
|
Basic
and Diluted Weighted-Average Shares Outstanding
|
56,338,835 | 54,632,752 | 55,738,396 | 53,588,041 | ||||||||||||
7
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.
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, including our ability to obtain continued financing on favorable
terms; (9) the timing of cash flows, if any, from
the operations of our portfolio companies; (10) the ability of our investment
advisor to locate suitable investments for us and to monitor and administer our
investments; (11) the ability of our investment 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, 2008
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. The information contained on our website is
not a part of this press release.
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