Alcentra Capital Corporation

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Alcentra Capital Corporation Announces Second Quarter 2014 Results

Aug 13, 2014

NEW YORK, Aug. 13, 2014 /PRNewswire/ -- Alcentra Capital Corporation (NASDAQ Global Select Market: "ABDC") ("Alcentra" or the "Company"), announced today its financial results for the second quarter of 2014. The Company reported net investment income of $2.5 million or $0.18 cents per share, for the period May 8, 2014 through June 30, 2014, and including net realized and unrealized gains of $1.5 million, for earnings of $3.78 million, or $0.28 per share, for the same period. At June 30, 2014, net asset value ("NAV") per share was $14.76.

On August 12, 2014, the Company's Board of Directors declared a third quarter calendar dividend of $0.34 per share payable on October 6, 2014 to shareholders of record of September 30, 2014.

The Company had previously paid a dividend of $0.178 per share on July 7, 2014 to shareholders of record of June 30, 2014.

Mr. Paul J. Echausse, the Company's President and Chief Executive Officer, said, "The second quarter period, albeit a short reporting period for us as a public company, demonstrated our ability to make investments in companies with good growth characteristics. We invested in four opportunities in the seven week post-IPO period (two new portfolio companies and two add-ons), and five opportunities since June 30, 2014 (two new portfolio companies and three add-ons), thus continuing our initiative to diversify and grow the portfolio. We are pleased with the quality of the new opportunities we are seeing in the current market. The fact that we have declared a $0.34 dividend for the third calendar quarter speaks to the confidence that we have in our current deal pipeline."

Portfolio and Investment Activity

As of June 30, 2014, our investment portfolio consisted of 21 companies with a fair value of $200.2 million, of which $72.2 million were first lien investments with a weighted average yield of 12.24% (36.1% of the portfolio); $7.4 million were second lien investments with a weighted average yield of 9.5% (3.7% of the portfolio); $64.2 million were in unsecured debt investments with a weighted average yield of 13.0% (32.1% of the portfolio); and $56.4 million were in preferred stock, common stock or warrants (28.2% of the portfolio). The weighted average yield on our debt portfolio was 12.3%. Our average portfolio company investment was approximately $10.4 million and there were no non-performing loans in the portfolio.

As we stated in our IPO presentation, we will be re-balancing the portfolio over the next twelve months to increase the percentage of our portfolio invested in debt and decrease the percentage of equity as well. If you look at the nature of the four transactions we closed prior to June 30, 2014, and the five transactions thereafter, you will see the implementation of this strategy being executed.

Highlights

Portfolio results, as of June 30, 2014


Total Assets

$227.0mm

Investment portfolio, at fair value

$200.2mm

Net Assets

$199.5mm

Weighted Average yield on debt investments

12.3%

Net Asset Value per share

$14.76



Portfolio activity in the current quarter


Number of new investments

2

Total capital deployed from IPO through June 30, 2014

$15.2mm

Proceeds from repayments, sales, and amortizations

  $2.3mm

Number of portfolio companies, end of period

21



Net investment income

$2.5mm

Net investment income per share

0.18

Net increase in new assets from operations

$2.0mm

Net increase in net assets from operations per share

0.15

Dividend declared per share (paid July 7, 2014)

0.178

 

About Alcentra Capital Corporation

Alcentra (www.alcentracapital.com) is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. Alcentra's investment objective is to generate both current income and capital appreciation primarily by making direct investments in lower middle-market companies in the form of subordinated debt and, to a lesser extent, senior debt and minority equity investments. Alcentra's investment activities are managed by its investment adviser, Alcentra NY, LLC.

About Alcentra NY, LLC

Alcentra NY, LLC, our investment adviser, is part of BNY Alcentra Group Holdings, Inc. ("Alcentra Group"), one of the world's leading sub-investment grade credit asset managers focusing on the U.S. and European markets. Alcentra Group has an investment track record that spans across 50 separate investment funds totaling approximately $24 billion (including accounts managed by Alcentra NY, LLC, Alcentra Ltd, and assets managed by Alcentra Group personnel for affiliates under dual officer arrangements).

FORWARD-LOOKING STATEMENTS

Statements included herein may contain "forward-looking statements," which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission including the final prospectus filed with the Securities and Exchange Commission on May 9, 2014. Alcentra undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.

SOURCE Alcentra Capital Corporation

For further information: Paul Echausse, Chief Executive Officer and President, 212-922-8960, paul.echausse@alcentra.com; Ellida McMillan, Chief Accounting Officer, 212-922-6644, ellida.mcmillan@alcentra.com


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