Business Development Corporation of America Reports Third Quarter 2011 Results
NEW YORK--(BUSINESS WIRE)-- Business Development Corporation of America (“BDCA” or the “Company”) announced on November 14, 2011, its operating results for the quarter ended September 30, 2011.
“The release of BDCA’s Form 10-Q for the quarter ended September 30, 2011,continues to demonstrate the dynamic growth of BDCA, our business development corporation focused on the middle market,” said Peter Budko, Chief Executive of BDCA’s advisor. “Our net investment income from our portfolio of 13 loans exceeded our dividends declared for the period, and our per share valuation increased by 3.4% from $8.65 to $8.94. Our dividend remains at 8.11% on a $10 share. Since quarter end we have purchased nine additional investments for $3.3 million against a “face value” of $3.8 million in industries including telecom, auto manufacturing, gaming, retail, computer software, oil and gas exploration and utilities. In addition to co-investing with other relationships, we continue to co-invest with Main Street Capital (NYSE: MAIN) as well as utilize our line of credit which Main Street provided to acquire these recent investments as well as our earlier investments.”
“We continue to evaluate a substantial number of opportunities to assist middle market companies grow by providing needed capital to this underserved market, as traditional regional and local bank lenders continue to be sidelined or have given up the business altogether. At a time when America’s growth is positioned to accelerate, the capital to fuel that growth remains scarce. As a result, BDCA is able to generate attractive risk adjusted returns for our investors,” offered Bob Grunewald, Chief Investment Officer of BDCA’s advisor.
“Our management team continues to outperform and exceed our expectations,”said Nicholas Schorsch, Chairman of the Board of BDCA. “This is not surprising, because unlike a number of other non-traded BDCs, our fund is externally managed by a team of skilled professionals singularly dedicated to the success of BDCA; they have no conflicting loyalties, can buy the best deals in the market, can co-invest and can operate at a lower cost to shareholders since we operate under a single-tiered structure with no additional sub-advisor fees. This structure will allow for a more fluid exit were we to exit onto an exchange.”
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STATEMENTS OF ASSETS AND LIABILITIES |
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| September 30, 2011 | December 31, 2010 | |||||||
| (Unaudited) | ||||||||
| ASSETS | ||||||||
| Investments, at fair value (cost of $4,641,052 and $0, respectively) | $ | 4,641,052 | $ | — | ||||
| Cash and cash equivalents | 435,108 | 754 | ||||||
| Interest receivable | 50,008 | — | ||||||
| Due from affiliate | 750,581 | 1,175,806 | ||||||
| Deferred credit facility financing costs, net | 62,500 | — | ||||||
| Prepaid expenses and other assets | 42,930 | — | ||||||
| Total assets | $ | 5,982,179 | $ | 1,176,560 | ||||
| LIABILITIES | ||||||||
| Revolving credit facility | $ | 2,200,000 | $ | — | ||||
| Accounts payable and accrued expenses | 276,701 | 984,439 | ||||||
| Interest and credit facility fees payable | 6,761 | — | ||||||
| Stockholder distributions payable | 25,857 | — | ||||||
| Total liabilities | $ | 2,509,319 | $ | 984,439 | ||||
| Preferred stock, $.001 par value, 50,000,000 shares authorized, none issued and outstanding | $ | — | $ | — | ||||
| Common stock, $.001 par value, 450,000,000 and 100,000,000 shares authorized respectively 388,412 and 22,222 shares issued and outstanding, respectively | 388 | 22 | ||||||
| Capital in excess of par value | 3,495,326 | 199,978 | ||||||
| Accumulated distributions in excess of net investment income | (22,854 | ) | (7,879 | ) | ||||
| Net assets | 3,472,860 | 192,121 | ||||||
| Total liabilities and net assets | $ | 5,982,179 | $ | 1,176,560 | ||||
| Net asset value per share | $ | 8.94 | $ | 8.65 | ||||
| STATEMENTS OF OPERATIONS | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| For the Three Months Ended
September 30, |
For the
Nine Months Ended September 30, |
For the Period from May 5, 2010 (Date of Inception) to September 30, |
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| 2011 | 2010 | 2011 | 2010 | |||||||||||||
| Investment income: | ||||||||||||||||
| Interest from investments | $ | 61,634 | $ | — | $ | 61,634 | $ | — | ||||||||
| Interest from cash and cash equivalents | 87 | — | 87 | — | ||||||||||||
| Total investment income | 61,721 | — | 61,721 | — | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Contract termination fee | 320,000 | — | 320,000 | — | ||||||||||||
| Interest and credit facility financing expenses | 25,839 | — | 50,839 | — | ||||||||||||
| Organization expenses | — | 7,738 | — | 7,738 | ||||||||||||
| Management fees | 6,739 | — | 6,739 | — | ||||||||||||
| Incentive fees | 37,209 | — | 37,209 | — | ||||||||||||
| General & administrative | 100,499 | 10 | 250,663 | 10 | ||||||||||||
| Expenses before expense waivers and reimbursements | 490,286 | 7,748 | 665,450 | 7,748 | ||||||||||||
| Waiver of management and incentive fees | (43,948 | ) | — | (43,948 | ) | — | ||||||||||
| Expense support reimbursement | (570,663 | ) | — | (570,663 | ) | |||||||||||
| Total expenses net of expense waivers and reimbursements | (124,325 | ) | 7,748 | 50,839 | 7,748 | |||||||||||
| Net investment income (loss) | 186,046 | (7,748 | ) | 10,882 | (7,748 | ) | ||||||||||
| Net increase (decrease) in net assets resulting from operations | $ | 186,046 | $ | (7,748 | ) | $ | 10,882 | $ | (7,748 | ) | ||||||
| Weighted average - basic and diluted earnings (loss) per common share | $ | 1.26 | $ | (0.35 | ) | $ | 0.17 | $ | (0.35 | ) | ||||||
| Weighted average common stock outstanding - basic and diluted | 147,578 | 22,222 | 64,466 | 22,222 | ||||||||||||
A registration statement relating to the common stock of BDCA was filed with and has been declared effective by the U.S. Securities and Exchange Commission (the “SEC”). These securities have not been approved or disapproved by the SEC or any state securities commission, nor have they passed upon the accuracy or adequacy of the prospectus. The offering of BDCA’s common stock is being made solely by means of a written prospectus forming part of the effective registration statement. The prospectus, which is available at http://www.sec.gov or may be obtained by calling 1-888-518-8073, contains additional information about BDCA. The prospectus should be read carefully by an investor before investing. Investors are advised to consider the investment objective, risks, charges and expenses of BDCA carefully before investing. This press release is not an offer to sell these securities and is not soliciting an offer to buy these securities in any state where the offer and sale is not permitted.
This press release may contain forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. Actual results and trends could differ materially from those set forth in such statements due to various factors.
To arrange interviews with American Realty Capital executives, please contact Tony DeFazio at 484-532-7783 or tony@defaziocommunications.com.
CONTACT:
DeFazio Communications, LLC
Anthony J. DeFazio, 484-532-7783
tony@defaziocommunications.com
or
Business Development Corporation of America
Brian S. Block, EVP & CFO, 212-415-6500
bblock@arlcap.com
KEYWORDS: United States North America New York
INDUSTRY KEYWORDS: Professional Services Finance
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