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Kohlberg Capital Corp. (KCAP) filed Quarterly Report for the period ended 2011-03-31.
Kohlberg Capital Corp. has a market cap of $166.96 million; its shares were traded at around $7.32 with a P/E ratio of 11.81 and P/S ratio of 5.69. The dividend yield of Kohlberg Capital Corp. stocks is 9.29%. Kohlberg Capital Corp. had an annual average earning growth of 94.4% over the past 5 years.
This is the annual revenues and earnings per share of KCAP over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of KCAP.
Highlight of Business Operations:
We are an internally managed, non-diversified closed-end investment company that has elected to be regulated as a business development company (“BDC”) under the Investment Company Act of 1940, as amended (the “1940 Act”). We originate, structure and invest in senior secured term loans, mezzanine debt and selected equity securities primarily in privately-held middle market companies. We define the middle market as comprising companies with earnings before interest, taxes, depreciation and amortization, which we refer to as “EBITDA,” of $10 million to $50 million and/or total debt of $25 million to $150 million. In addition to our middle market investment business, our wholly-owned portfolio company, Katonah Debt Advisors, manages collateralized loan obligation funds (“CLO Funds”) that invest in broadly syndicated loans, high-yield bonds and other corporate credit instruments. We acquired Katonah Debt Advisors and certain related assets prior to our initial public offering from affiliates of Kohlberg & Co., LLC (“Kohlberg & Co.”), a leading private equity firm focused on middle market investing. As of March 31, 2011, Katonah Debt Advisors had approximately $1.9 billion of assets under management.
At December 31, 2010, we had approximately $87 million of outstanding indebtedness through a secured credit facility. On January 31, 2011, we repaid in full the outstanding balance under this facility. As a result, approximately $73 million of collateral previously securing the facility was released to us and we also received a $2 million cash settlement from the lenders to settle litigation previously initiated by us against the lenders. In order to pay off this facility, we utilized proceeds received from the paydown, amortization or sale of portfolio loan investments totaling approximately $133 million together with available cash.
On March 16, 2011, we issued $55 million in aggregate principal amount of unsecured 8.75% convertible senior notes due 2016 (“Convertible Senior Notes”). On March 23, 2011, pursuant to an over-allotment option, we issued an additional $5 million of such Convertible Senior Notes for a total of $60 million in aggregate principal amount. The net proceeds for the Convertible Senior Notes, following underwriting expenses, were approximately $57.7 million. Interest on the Convertible Senior Notes is paid semi-annually in arrears on March 15 and September 15, at a rate of 8.75%, commencing September 15, 2011. The Notes mature on March 15, 2016 unless converted earlier. The Convertible Senior Notes are senior unsecured obligations of the Company.
The net change in unrealized appreciation for the three months ended March 31, 2011 is primarily due to (i) an approximate $2.7 million net increase in the market value of certain loans as a result of credit considerations and current market conditions; (ii) an approximate $2.9 million increase in the net value of CLO Fund securities; and (iii) an approximate $703,000 increase in the value of Katonah Debt Advisors (an approximate $800,000 increase in unrealized appreciation offset by an approximate $100,000 decrease in the cost basis of Katonah Debt Advisors).
The net change in stockholders equity resulting from operations for the three months ended March 31, 2011 and 2010 was an increase of approximately $10 million and an increase of $2 million, respectively, or an increase of $0.42 and $0.07 per share, respectively.
Net investment income and net realized gains (losses) represents the net change in stockholders equity before net unrealized appreciation or depreciation on investments. For the three months ended March 31, 2011, net investment income and realized gains was approximately $3 million, or $0.22 per share. For the three months ended March 31, 2010, net investment income and realized gains was approximately $306,000, or $0.11, per share.
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