BlackRock Kelso Capital Corp. (BKCC, Financial) filed Quarterly Report for the period ended 2010-06-30.
Blackrock Kelso Capital Corp. has a market cap of $613.3 million; its shares were traded at around $10.81 with a P/E ratio of 8.3 and P/S ratio of 4.9. The dividend yield of Blackrock Kelso Capital Corp. stocks is 11.9%.BKCC is in the portfolios of Chuck Royce of Royce& Associates.
Investment income totaled $28,210,955 and $33,439,628, respectively, for the three months ended June 30, 2010 and 2009, of which $15,576,232 and $19,179,036 were attributable to interest and fees on senior secured loans, $11,738,087 and $13,622,931 to interest earned on other debt securities, $856,021 and $633,754 to dividends from preferred equity securities, $3,115 and $3,907 to interest earned on cash equivalents and $37,500 and zero to other income, respectively. The decrease in investment income for the three months ended June 30, 2010 primarily reflects a reduction in the size of our portfolio due to sales, repayments and restructurings, as well as the impact of lower levels of LIBOR on interest income from our floating rate debt investments, which generally bear interest based on LIBOR. Total investments at their current cost basis were $886,663,311 at June 30, 2010, compared to $1,216,208,699 at June 30, 2009.
Expenses for the three months ended June 30, 2010 and 2009 were $7,790,318 and $7,904,225, respectively, which consisted of $4,151,014 and $4,647,032 in base management fees, $1,699,510 and $1,712,222 in interest expense and fees related to the Credit Facility, $385,297 and $340,273 in Advisor expenses, $587,884 and $171,197 in amortization of debt issuance costs, $220,987 and $201,927 in administrative services, $192,965 and $374,516 in professional fees, $182,203 and $131,864 in insurance expenses, $91,832 and $88,863 in director fees and $278,626 and $236,331 in other expenses, respectively. The decrease in base management fees reflects a decline in the quarterly portfolio values on which the fees are paid (in arrears). The increase in amortization of debt issuance costs reflects the incurrence of structuring and arrangement fees in connection with the amendment of our Credit Facility in April 2010. The decrease in professional fees reflects lower fees for legal and accounting services.
Investment income totaled $56,010,054 and $65,250,928, respectively, for the six months ended June 30, 2010 and 2009, of which $30,570,467 and $37,020,547 were attributable to interest and fees on senior secured loans, $23,736,914 and $26,808,331 to interest earned on other debt securities, $1,661,829 and $1,412,170 to dividends from preferred equity securities, $3,344 and $9,880 to interest earned on cash equivalents and $37,500 and zero to other income, respectively. The decrease in investment income for the six months ended June 30, 2010 primarily reflects a reduction in the size of our portfolio due to sales, repayments and restructurings, as well as the impact of lower levels of LIBOR on interest income from our floating rate debt investments, which generally bear interest based on LIBOR. Total investments at their current cost basis were $886,663,311 at June 30, 2010, compared to $1,216,208,699 at June 30, 2009.
Expenses for the six months ended June 30, 2010 and 2009 were $15,324,152 and $15,964,143, respectively, which consisted of $8,473,485 and $9,395,250 in base management fees, $493,951 and zero in incentive management fees, $2,821,764 and $3,548,611 in interest expense and fees related to the Credit Facility, $783,961 and $687,067 in Advisor expenses, $756,176 and $339,489 in amortization of debt issuance costs, $478,710 and $431,035 in administrative services, $396,231 and $606,566 in professional fees, $334,611 and $261,225 in insurance expenses, $187,669 and $184,155 in director fees and $597,594 and $510,745 in other expenses, respectively. The decrease in base management fees reflects a decline in the quarterly portfolio values on which the fees are paid (in arrears). The increase in incentive management fees is due to continued strong investment earnings, without the substantial net capital depreciation (including net realized and unrealized gains and losses) that had occurred in the prior period. The decrease in interest expense and fees related to the Credit Facility is mainly a result of reduced borrowing levels and lower prevailing levels of LIBOR. Total borrowings were $145,000,000 at June 30, 2010, compared to $376,000,000 at June 30, 2009. The increase in amortization of debt issuance costs reflects the incurrence of structuring and arrangement fees in connection with the amendment of our Credit Facility in April 2010. The decrease in professional fees reflects lower fees for legal and accounting services.
Our senior secured, multi-currency Credit Facility provides us with $620,000,000 in total availability, consisting of $475,000,000 in revolving loan commitments and $145,000,000 in term loan commitments. Commitments that mature on December 6, 2013 total $375,000,000, consisting of $275,000,000 of available revolving loans and $100,000,000 of available term loans. Commitments that mature on December 6, 2010, unless extended prior to such date, total $245,000,000, consisting of $200,000,000 of available revolving loans and $45,000,000 of available term loans. Subject to certain conditions, we have the ability in the future to seek additional commitments from new and existing lenders up to an additional $275,000,000 of revolving loan commitments and $250,000,000 of term loan commitments. The interest rates applicable to the commitments that mature in December 2013 are generally LIBOR plus a spread of either 3.00% or 3.25% for revolving loans, based on a pricing grid depending on our credit rating, and LIBOR plus 3.00% for term loans. The interest rates applicable to the commitments that mature in December 2010 are generally LIBOR plus 0.875% with respect to revolving loans and LIBOR plus 1.50% with respect to term loans. The facility does not contain a LIBOR floor requirement. At June 30, 2010, the effective LIBOR spread under the Credit Facility was 2.53%. The term loans have been fully drawn and, once repaid, may not be reborrowed. The Credit Facility is secured by substantially all of the assets in our portfolio, including cash and cash equivalents. At June 30, 2010, we had $145,000,000 drawn and outstanding under the Credit Facility, with $475,000,000 available to us, subject to compliance with customary affirmative and negative covenants,
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Blackrock Kelso Capital Corp. has a market cap of $613.3 million; its shares were traded at around $10.81 with a P/E ratio of 8.3 and P/S ratio of 4.9. The dividend yield of Blackrock Kelso Capital Corp. stocks is 11.9%.BKCC is in the portfolios of Chuck Royce of Royce& Associates.
Highlight of Business Operations:
On July 25, 2005, we completed a private placement of 35,366,589 shares of our common stock at a price of $15.00 per share that raised approximately $529 million in net proceeds. On July 2, 2007, we completed an initial public offering of 10,000,000 shares of our common stock at a price of $16.00 per share that raised approximately $150 million in net proceeds. On June 22, 2010, we closed an add-on public offering and sold 7,500,000 shares of our common stock at a price of $10.25 per share receiving approximately $73 million in net proceeds. On June 28, 2010, the underwriters of the add-on offering exercised their over-allotment option under the underwriting agreement and elected to purchase an additional 1,125,000 shares of common stock at a price of $10.25 per share resulting in approximately $11 million of net proceeds.Investment income totaled $28,210,955 and $33,439,628, respectively, for the three months ended June 30, 2010 and 2009, of which $15,576,232 and $19,179,036 were attributable to interest and fees on senior secured loans, $11,738,087 and $13,622,931 to interest earned on other debt securities, $856,021 and $633,754 to dividends from preferred equity securities, $3,115 and $3,907 to interest earned on cash equivalents and $37,500 and zero to other income, respectively. The decrease in investment income for the three months ended June 30, 2010 primarily reflects a reduction in the size of our portfolio due to sales, repayments and restructurings, as well as the impact of lower levels of LIBOR on interest income from our floating rate debt investments, which generally bear interest based on LIBOR. Total investments at their current cost basis were $886,663,311 at June 30, 2010, compared to $1,216,208,699 at June 30, 2009.
Expenses for the three months ended June 30, 2010 and 2009 were $7,790,318 and $7,904,225, respectively, which consisted of $4,151,014 and $4,647,032 in base management fees, $1,699,510 and $1,712,222 in interest expense and fees related to the Credit Facility, $385,297 and $340,273 in Advisor expenses, $587,884 and $171,197 in amortization of debt issuance costs, $220,987 and $201,927 in administrative services, $192,965 and $374,516 in professional fees, $182,203 and $131,864 in insurance expenses, $91,832 and $88,863 in director fees and $278,626 and $236,331 in other expenses, respectively. The decrease in base management fees reflects a decline in the quarterly portfolio values on which the fees are paid (in arrears). The increase in amortization of debt issuance costs reflects the incurrence of structuring and arrangement fees in connection with the amendment of our Credit Facility in April 2010. The decrease in professional fees reflects lower fees for legal and accounting services.
Investment income totaled $56,010,054 and $65,250,928, respectively, for the six months ended June 30, 2010 and 2009, of which $30,570,467 and $37,020,547 were attributable to interest and fees on senior secured loans, $23,736,914 and $26,808,331 to interest earned on other debt securities, $1,661,829 and $1,412,170 to dividends from preferred equity securities, $3,344 and $9,880 to interest earned on cash equivalents and $37,500 and zero to other income, respectively. The decrease in investment income for the six months ended June 30, 2010 primarily reflects a reduction in the size of our portfolio due to sales, repayments and restructurings, as well as the impact of lower levels of LIBOR on interest income from our floating rate debt investments, which generally bear interest based on LIBOR. Total investments at their current cost basis were $886,663,311 at June 30, 2010, compared to $1,216,208,699 at June 30, 2009.
Expenses for the six months ended June 30, 2010 and 2009 were $15,324,152 and $15,964,143, respectively, which consisted of $8,473,485 and $9,395,250 in base management fees, $493,951 and zero in incentive management fees, $2,821,764 and $3,548,611 in interest expense and fees related to the Credit Facility, $783,961 and $687,067 in Advisor expenses, $756,176 and $339,489 in amortization of debt issuance costs, $478,710 and $431,035 in administrative services, $396,231 and $606,566 in professional fees, $334,611 and $261,225 in insurance expenses, $187,669 and $184,155 in director fees and $597,594 and $510,745 in other expenses, respectively. The decrease in base management fees reflects a decline in the quarterly portfolio values on which the fees are paid (in arrears). The increase in incentive management fees is due to continued strong investment earnings, without the substantial net capital depreciation (including net realized and unrealized gains and losses) that had occurred in the prior period. The decrease in interest expense and fees related to the Credit Facility is mainly a result of reduced borrowing levels and lower prevailing levels of LIBOR. Total borrowings were $145,000,000 at June 30, 2010, compared to $376,000,000 at June 30, 2009. The increase in amortization of debt issuance costs reflects the incurrence of structuring and arrangement fees in connection with the amendment of our Credit Facility in April 2010. The decrease in professional fees reflects lower fees for legal and accounting services.
Our senior secured, multi-currency Credit Facility provides us with $620,000,000 in total availability, consisting of $475,000,000 in revolving loan commitments and $145,000,000 in term loan commitments. Commitments that mature on December 6, 2013 total $375,000,000, consisting of $275,000,000 of available revolving loans and $100,000,000 of available term loans. Commitments that mature on December 6, 2010, unless extended prior to such date, total $245,000,000, consisting of $200,000,000 of available revolving loans and $45,000,000 of available term loans. Subject to certain conditions, we have the ability in the future to seek additional commitments from new and existing lenders up to an additional $275,000,000 of revolving loan commitments and $250,000,000 of term loan commitments. The interest rates applicable to the commitments that mature in December 2013 are generally LIBOR plus a spread of either 3.00% or 3.25% for revolving loans, based on a pricing grid depending on our credit rating, and LIBOR plus 3.00% for term loans. The interest rates applicable to the commitments that mature in December 2010 are generally LIBOR plus 0.875% with respect to revolving loans and LIBOR plus 1.50% with respect to term loans. The facility does not contain a LIBOR floor requirement. At June 30, 2010, the effective LIBOR spread under the Credit Facility was 2.53%. The term loans have been fully drawn and, once repaid, may not be reborrowed. The Credit Facility is secured by substantially all of the assets in our portfolio, including cash and cash equivalents. At June 30, 2010, we had $145,000,000 drawn and outstanding under the Credit Facility, with $475,000,000 available to us, subject to compliance with customary affirmative and negative covenants,
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