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News Article | May 9, 2017
Site: globenewswire.com

NEW YORK, May 09, 2017 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our third fiscal quarter ended March 31, 2017. For the March 2017 quarter, we earned net investment income ("NII") of $73.1 million, or $0.20 per weighted average share, down $0.04 per weighted average share from the December 2016 quarter. This decrease was primarily driven by a decline in interest income due to lower prepayment fees, a lower coupon First Tower refinancing, and reduced yields from certain structured credit investments close to expected call dates, partially offset by a decrease in management fees. For the March 2016 quarter, our NII was $87.6 million, or $0.25 per weighted average share. NII decreased year-over-year in the March 2017 quarter by $0.05 per weighted average share. For the March 2017 quarter, our net income (“NI”) was $19.5 million or $0.05 per weighted average share, a decrease of $0.23 per weighted average share from the December 2016 quarter NI of $100.9 million, or $0.28 per weighted average share, and a decrease of $0.16 per weighted average share from the March 2016 quarter NI of $75.5 million, or $0.21 per weighted average share. NI decreased in the March 2017 quarter compared to each prior period primarily due to the factors above and unrealized depreciation in the energy, financial, and structured credit sectors. We continue to prioritize secured lending. As of March 31, 2017 and December 31, 2016, our portfolio consisted of the following: During the March 31, 2017 and December 31, 2016 quarters, our investment originations and repayment activity is summarized as follows: For a listing of transactions completed during the quarter, please see the section titled “Portfolio Investment Activity” in our form 10-Q for the quarter ended March 31, 2017. In addition to NPRC’s $2.06 billion of real estate assets at fair value, we and NPRC continued our investment in the online lending industry with a focus on super-prime, prime, and near-prime consumer and small business borrowers. As of March 31, 2017, we and NPRC own $785.5 million of online loans at fair value directly and through securitization interests, across multiple origination and underwriting platforms. Our online business currently yields more than a 12% return on our invested capital (net of all incurred costs and expected losses). Four bank credit facilities currently support NPRC’s online business. A NPRC subsidiary closed a consumer securitization during the December 2016 quarter. We are invested in structured credit investments with individual standalone financings non-recourse to Prospect and with our risk capped at our net investment amount. As of March 31, 2017 and December 31, 2016, our structured credit portfolio at fair value consisted of the following: To date, we have exited seven structured credit investments totaling $153.6 million with an average realized IRR of 16.8% and cash on cash multiple of 1.42 times. Since August 29, 2016 (the date of our June 2016 earnings release), 17 of our structured credit investments completed refinancings to reduce the cost of liabilities (three of which occurred after March 2017) and three additional structured credit investments completed multi-year extensions of the reinvestment period of such investments. We are working on identifying for our independent management teams further structured credit investment refinancings and extensions in the portfolio to enhance value. To date during the June 2017 quarter, we have completed new and follow-on investments as follows: The following table summarizes key leverage statistics as of March 31, 2017 and December 31, 2016. We repaid our $167.5 million August 2016 convertible note issue at maturity. In the current June 2017 quarter, we refinanced (or provided notice to call) a majority of our debt maturing in less than one year as follows: For the remainder of calendar year 2017, we have liability maturities of $67.2 million. On August 29, 2014, we renegotiated and closed an expanded five and a half year revolving credit facility (the “Facility”), summarized as follows: We have diversified our counterparty risk. As of March 31, 2017, 21 institutional lenders committed to the Facility compared to five lenders at June 30, 2010, one of the most diversified bank groups in our industry. The revolving period of the Facility extends through March 2019, with an additional one-year amortization period to March 2020, with distributions allowed after the completion of the revolving period. We currently have no borrowings drawn under our Facility. We have eight separate unsecured debt issuances aggregating $1.7 billion outstanding, not including our program notes, with maturities ranging from October 2017 to June 2024. As of March 31, 2017, $1.006 billion of program notes were outstanding with staggered maturities through October 2043. As a tax-efficient regulated investment company, our 90% minimum shareholder dividend payout requirement is based on taxable income rather than GAAP NII. Taxable income can decouple significantly from NII, especially relating to income generated from our structured credit investments. Refinancing liabilities, resetting maturities, and tax-loss-creating portfolio turnover of the loans inside our structured credit investments, as well as other factors, make estimation of taxable income a challenging exercise.  Taxable income is only disclosed to us by each structured credit collateral manager on an annual basis. We expect to disclose taxable income after such information becomes available to us. Prospect will host an earnings call on Wednesday, May 10, 2017 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to June 9, 2017, call 877-344-7529 passcode 10105743.  The call will be available prior to June 9, 2017 on Prospect’s website, www.prospectstreet.com. For copies of our corporate presentation, our recent shareholder letter, and our performance data please see http://shareholder.prospectstreet.com. Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.


News Article | May 9, 2017
Site: globenewswire.com

NEW YORK, May 09, 2017 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our third fiscal quarter ended March 31, 2017. For the March 2017 quarter, we earned net investment income ("NII") of $73.1 million, or $0.20 per weighted average share, down $0.04 per weighted average share from the December 2016 quarter. This decrease was primarily driven by a decline in interest income due to lower prepayment fees, a lower coupon First Tower refinancing, and reduced yields from certain structured credit investments close to expected call dates, partially offset by a decrease in management fees. For the March 2016 quarter, our NII was $87.6 million, or $0.25 per weighted average share. NII decreased year-over-year in the March 2017 quarter by $0.05 per weighted average share. For the March 2017 quarter, our net income (“NI”) was $19.5 million or $0.05 per weighted average share, a decrease of $0.23 per weighted average share from the December 2016 quarter NI of $100.9 million, or $0.28 per weighted average share, and a decrease of $0.16 per weighted average share from the March 2016 quarter NI of $75.5 million, or $0.21 per weighted average share. NI decreased in the March 2017 quarter compared to each prior period primarily due to the factors above and unrealized depreciation in the energy, financial, and structured credit sectors. We continue to prioritize secured lending. As of March 31, 2017 and December 31, 2016, our portfolio consisted of the following: During the March 31, 2017 and December 31, 2016 quarters, our investment originations and repayment activity is summarized as follows: For a listing of transactions completed during the quarter, please see the section titled “Portfolio Investment Activity” in our form 10-Q for the quarter ended March 31, 2017. In addition to NPRC’s $2.06 billion of real estate assets at fair value, we and NPRC continued our investment in the online lending industry with a focus on super-prime, prime, and near-prime consumer and small business borrowers. As of March 31, 2017, we and NPRC own $785.5 million of online loans at fair value directly and through securitization interests, across multiple origination and underwriting platforms. Our online business currently yields more than a 12% return on our invested capital (net of all incurred costs and expected losses). Four bank credit facilities currently support NPRC’s online business. A NPRC subsidiary closed a consumer securitization during the December 2016 quarter. We are invested in structured credit investments with individual standalone financings non-recourse to Prospect and with our risk capped at our net investment amount. As of March 31, 2017 and December 31, 2016, our structured credit portfolio at fair value consisted of the following: To date, we have exited seven structured credit investments totaling $153.6 million with an average realized IRR of 16.8% and cash on cash multiple of 1.42 times. Since August 29, 2016 (the date of our June 2016 earnings release), 17 of our structured credit investments completed refinancings to reduce the cost of liabilities (three of which occurred after March 2017) and three additional structured credit investments completed multi-year extensions of the reinvestment period of such investments. We are working on identifying for our independent management teams further structured credit investment refinancings and extensions in the portfolio to enhance value. To date during the June 2017 quarter, we have completed new and follow-on investments as follows: The following table summarizes key leverage statistics as of March 31, 2017 and December 31, 2016. We repaid our $167.5 million August 2016 convertible note issue at maturity. In the current June 2017 quarter, we refinanced (or provided notice to call) a majority of our debt maturing in less than one year as follows: For the remainder of calendar year 2017, we have liability maturities of $67.2 million. On August 29, 2014, we renegotiated and closed an expanded five and a half year revolving credit facility (the “Facility”), summarized as follows: We have diversified our counterparty risk. As of March 31, 2017, 21 institutional lenders committed to the Facility compared to five lenders at June 30, 2010, one of the most diversified bank groups in our industry. The revolving period of the Facility extends through March 2019, with an additional one-year amortization period to March 2020, with distributions allowed after the completion of the revolving period. We currently have no borrowings drawn under our Facility. We have eight separate unsecured debt issuances aggregating $1.7 billion outstanding, not including our program notes, with maturities ranging from October 2017 to June 2024. As of March 31, 2017, $1.006 billion of program notes were outstanding with staggered maturities through October 2043. As a tax-efficient regulated investment company, our 90% minimum shareholder dividend payout requirement is based on taxable income rather than GAAP NII. Taxable income can decouple significantly from NII, especially relating to income generated from our structured credit investments. Refinancing liabilities, resetting maturities, and tax-loss-creating portfolio turnover of the loans inside our structured credit investments, as well as other factors, make estimation of taxable income a challenging exercise.  Taxable income is only disclosed to us by each structured credit collateral manager on an annual basis. We expect to disclose taxable income after such information becomes available to us. Prospect will host an earnings call on Wednesday, May 10, 2017 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to June 9, 2017, call 877-344-7529 passcode 10105743.  The call will be available prior to June 9, 2017 on Prospect’s website, www.prospectstreet.com. For copies of our corporate presentation, our recent shareholder letter, and our performance data please see http://shareholder.prospectstreet.com. Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.


GREENWICH, Conn.--(BUSINESS WIRE)--Eagle Point Credit Company Inc. (the “Company”) (NYSE:ECC, NYSE:ECCA, NYSE:ECCB, NYSE:ECCZ), today announced that it plans to report financial results for the quarter ended March 31, 2017 prior to the opening of the financial markets on Tuesday, May 23, 2017. The Company will discuss its financial results on a conference call on that day at 10:00 a.m. (Eastern Time). Thomas P. Majewski, Chief Executive Officer, will host the call along with Kenneth P. Onorio, Chief Financial Officer. All interested parties are welcome to participate in the conference call via one of the following methods: The Company is a non-diversified, closed-end management investment company. The Company’s investment objectives are to generate high current income and capital appreciation primarily through investment in equity and junior debt tranches of collateralized loan obligations. The Company is externally managed and advised by Eagle Point Credit Management LLC. The principals of Eagle Point Credit Management LLC are Thomas P. Majewski, Daniel W. Ko and Daniel M. Spinner. The Company makes certain unaudited portfolio information available each month on its website in addition to making certain other unaudited financial information available on its website (www.eaglepointcreditcompany.com). This information includes (1) an estimated range of the Company’s net investment income (“NII”) and realized capital gains or losses per weighted average share of common stock for each calendar quarter end, generally made available within the first fifteen days after the applicable calendar month end, (2) an estimated range of the Company’s NAV per share of common stock for the prior month end and certain additional portfolio-level information, generally made available within the first fifteen days after the applicable calendar month end, and (3) during the latter part of each month, an updated estimate of NAV, if applicable, and, with respect to each calendar quarter end, an updated estimate of the Company’s NII and realized capital gains or losses for the applicable quarter, if available. This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. 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 risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the U.S. Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.


BOSTON, May 12, 2017 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we”, “us”, “our” or “GECC”), (NASDAQ:GECC), today announced its financial results for the quarter ended March 31, 2017 and filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission. “We continue to be pleased at the pace of monetization of the legacy Full Circle portfolio, as well as with a number of names from the MAST-contributed portfolio and more recently acquired positions, as catalysts have resulted in a quicker repricing of these opportunities than we had anticipated. With that backdrop, we have a healthy amount of dry powder to deploy as the market presents compelling total return opportunities,” said Peter A. Reed, Chief Executive Officer of GECC. As of March 31, 2017, we held 23 debt investments across 20 companies, totaling approximately $149.6 million. Debt investments represented 98% of invested capital, as of March 31, 2017, with 94% of invested capital allocated to first lien and/or senior secured debt instruments and 4% of invested capital in unsecured debt obligations. We also had equity investments in seven companies, totaling approximately $2.6 million. As of March 31, 2017, the weighted average current yield on our debt portfolio was approximately 12.63% with approximately 47% of invested debt capital in floating rate debt instruments. During the quarter ended March 31, 2017, we deployed approximately $75.9 million (1) into new and existing investments across eight companies (two new, six existing). The weighted average price of the new debt investments was $0.98, carrying a weighted average current yield of 12.29%. Nearly all of these investments are first lien and / or senior secured investments with potential catalysts to unlock value. During the quarter ended March 31, 2017, we monetized 17 investments, in part or in full, for approximately $78.8 million (2), at a weighted average current yield of 13.34%, including the complete exit of one investment acquired from Full Circle, at a slight gain. Our weighted average realization price was $0.99. Total investment income for the quarter ended March 31, 2017 was approximately $7.3 million, or $0.58 per share. Net expenses for the period ended March 31, 2017 were approximately $3.2 million, or $0.26 per share. Net realized gains for the quarter ended March 31, 2017 were approximately $2.0 million, or $0.16 per share. Net unrealized depreciation from investments for the quarter ended March 31, 2017 was approximately $2.7 million, or ($0.21) per share. As of March 31, 2017, available liquidity from cash and cash equivalents was approximately $66.8 million, comprised of cash and cash equivalents, including investments in money market mutual funds. Total debt outstanding as of March 31, 2017 was approximately $33.7 million, comprised entirely of the 8.25% notes due June 30, 2020 (NASDAQ:FULLL). Our board of directors declared the monthly distributions for the third quarter of 2017 at $0.083 per share. The schedule of distribution payments is as follows: Our distribution policy has been designed to set a base distribution rate that is well-covered by NII that will be supplemented by special distributions from NII in excess of the declared distribution and as catalyst-driven investments are realized. During April 2017, we sold our position in Chester Downs & Marina LLC for approximately $6.3 million, including accrued interest.  We realized approximately $0.3 million of gains on the disposition of the investment. During April and May 2017, we sold the remaining $6.3 million of our position in Everi Payments, Inc. for approximately $6.8 million, including accrued interest.  We realized approximately $0.6 million of gains on the disposition of the investment. During May 2017, we received approximately $2.8 million in proceeds from the disposition of the primary asset of Double Deuce Lodging, LLC. The Company’s $10 million self-tender offer expired at 5:00 p.m., New York City time, on May 5, 2017.  The Company purchased 869,565 shares, representing approximately 6.94% of its outstanding shares, at a price of $11.50 per share on a pro rata basis for a total cost of approximately $10 million, excluding fees and expenses relating to the self-tender offer.  The purchase price represented approximately 85% of net asset value per share as of March 31, 2017. Great Elm Capital Corp. will host a conference call and webcast on Monday, May 15, 2017 at 10:00 a.m. New York City time to discuss its first quarter financial results. All interested parties are invited to participate in the conference call by dialing (844) 820-8297; international callers should dial (661) 378-9758. Participants should enter the Conference ID 20957666 when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit http://www.greatelmcc.com/ under Investor Relations. Additionally, the conference call with be webcast simultaneously at http://edge.media-server.com/m/p/quvzyvm2. Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC’s investment objective is to generate both current income and capital appreciation, while seeking to protect against risk of permanent capital loss. GECC focuses on special situations and catalyst-driven investments as it seeks to generate attractive risk-adjusted returns. Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “potential,” “continue,” “upside,” and “potential,” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: conditions in the credit markets, the price of GECC common stock, performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. 1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and payment in kind “PIK” interest. 2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). (1) The per share data was derived by using the weighted average shares outstanding during the period. (2) The per share data for distributions declared reflects the actual amount of distributions of record per share for the period.


News Article | May 9, 2017
Site: globenewswire.com

NEW YORK, May 09, 2017 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our third fiscal quarter ended March 31, 2017. For the March 2017 quarter, we earned net investment income ("NII") of $73.1 million, or $0.20 per weighted average share, down $0.04 per weighted average share from the December 2016 quarter. This decrease was primarily driven by a decline in interest income due to lower prepayment fees, a lower coupon First Tower refinancing, and reduced yields from certain structured credit investments close to expected call dates, partially offset by a decrease in management fees. For the March 2016 quarter, our NII was $87.6 million, or $0.25 per weighted average share. NII decreased year-over-year in the March 2017 quarter by $0.05 per weighted average share. For the March 2017 quarter, our net income (“NI”) was $19.5 million or $0.05 per weighted average share, a decrease of $0.23 per weighted average share from the December 2016 quarter NI of $100.9 million, or $0.28 per weighted average share, and a decrease of $0.16 per weighted average share from the March 2016 quarter NI of $75.5 million, or $0.21 per weighted average share. NI decreased in the March 2017 quarter compared to each prior period primarily due to the factors above and unrealized depreciation in the energy, financial, and structured credit sectors. We continue to prioritize secured lending. As of March 31, 2017 and December 31, 2016, our portfolio consisted of the following: During the March 31, 2017 and December 31, 2016 quarters, our investment originations and repayment activity is summarized as follows: For a listing of transactions completed during the quarter, please see the section titled “Portfolio Investment Activity” in our form 10-Q for the quarter ended March 31, 2017. In addition to NPRC’s $2.06 billion of real estate assets at fair value, we and NPRC continued our investment in the online lending industry with a focus on super-prime, prime, and near-prime consumer and small business borrowers. As of March 31, 2017, we and NPRC own $785.5 million of online loans at fair value directly and through securitization interests, across multiple origination and underwriting platforms. Our online business currently yields more than a 12% return on our invested capital (net of all incurred costs and expected losses). Four bank credit facilities currently support NPRC’s online business. A NPRC subsidiary closed a consumer securitization during the December 2016 quarter. We are invested in structured credit investments with individual standalone financings non-recourse to Prospect and with our risk capped at our net investment amount. As of March 31, 2017 and December 31, 2016, our structured credit portfolio at fair value consisted of the following: To date, we have exited seven structured credit investments totaling $153.6 million with an average realized IRR of 16.8% and cash on cash multiple of 1.42 times. Since August 29, 2016 (the date of our June 2016 earnings release), 17 of our structured credit investments completed refinancings to reduce the cost of liabilities (three of which occurred after March 2017) and three additional structured credit investments completed multi-year extensions of the reinvestment period of such investments. We are working on identifying for our independent management teams further structured credit investment refinancings and extensions in the portfolio to enhance value. To date during the June 2017 quarter, we have completed new and follow-on investments as follows: The following table summarizes key leverage statistics as of March 31, 2017 and December 31, 2016. We repaid our $167.5 million August 2016 convertible note issue at maturity. In the current June 2017 quarter, we refinanced (or provided notice to call) a majority of our debt maturing in less than one year as follows: For the remainder of calendar year 2017, we have liability maturities of $67.2 million. On August 29, 2014, we renegotiated and closed an expanded five and a half year revolving credit facility (the “Facility”), summarized as follows: We have diversified our counterparty risk. As of March 31, 2017, 21 institutional lenders committed to the Facility compared to five lenders at June 30, 2010, one of the most diversified bank groups in our industry. The revolving period of the Facility extends through March 2019, with an additional one-year amortization period to March 2020, with distributions allowed after the completion of the revolving period. We currently have no borrowings drawn under our Facility. We have eight separate unsecured debt issuances aggregating $1.7 billion outstanding, not including our program notes, with maturities ranging from October 2017 to June 2024. As of March 31, 2017, $1.006 billion of program notes were outstanding with staggered maturities through October 2043. As a tax-efficient regulated investment company, our 90% minimum shareholder dividend payout requirement is based on taxable income rather than GAAP NII. Taxable income can decouple significantly from NII, especially relating to income generated from our structured credit investments. Refinancing liabilities, resetting maturities, and tax-loss-creating portfolio turnover of the loans inside our structured credit investments, as well as other factors, make estimation of taxable income a challenging exercise.  Taxable income is only disclosed to us by each structured credit collateral manager on an annual basis. We expect to disclose taxable income after such information becomes available to us. Prospect will host an earnings call on Wednesday, May 10, 2017 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to June 9, 2017, call 877-344-7529 passcode 10105743.  The call will be available prior to June 9, 2017 on Prospect’s website, www.prospectstreet.com. For copies of our corporate presentation, our recent shareholder letter, and our performance data please see http://shareholder.prospectstreet.com. Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.


BOSTON, May 12, 2017 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we”, “us”, “our” or “GECC”), (NASDAQ:GECC), today announced its financial results for the quarter ended March 31, 2017 and filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission. “We continue to be pleased at the pace of monetization of the legacy Full Circle portfolio, as well as with a number of names from the MAST-contributed portfolio and more recently acquired positions, as catalysts have resulted in a quicker repricing of these opportunities than we had anticipated. With that backdrop, we have a healthy amount of dry powder to deploy as the market presents compelling total return opportunities,” said Peter A. Reed, Chief Executive Officer of GECC. As of March 31, 2017, we held 23 debt investments across 20 companies, totaling approximately $149.6 million. Debt investments represented 98% of invested capital, as of March 31, 2017, with 94% of invested capital allocated to first lien and/or senior secured debt instruments and 4% of invested capital in unsecured debt obligations. We also had equity investments in seven companies, totaling approximately $2.6 million. As of March 31, 2017, the weighted average current yield on our debt portfolio was approximately 12.63% with approximately 47% of invested debt capital in floating rate debt instruments. During the quarter ended March 31, 2017, we deployed approximately $75.9 million (1) into new and existing investments across eight companies (two new, six existing). The weighted average price of the new debt investments was $0.98, carrying a weighted average current yield of 12.29%. Nearly all of these investments are first lien and / or senior secured investments with potential catalysts to unlock value. During the quarter ended March 31, 2017, we monetized 17 investments, in part or in full, for approximately $78.8 million (2), at a weighted average current yield of 13.34%, including the complete exit of one investment acquired from Full Circle, at a slight gain. Our weighted average realization price was $0.99. Total investment income for the quarter ended March 31, 2017 was approximately $7.3 million, or $0.58 per share. Net expenses for the period ended March 31, 2017 were approximately $3.2 million, or $0.26 per share. Net realized gains for the quarter ended March 31, 2017 were approximately $2.0 million, or $0.16 per share. Net unrealized depreciation from investments for the quarter ended March 31, 2017 was approximately $2.7 million, or ($0.21) per share. As of March 31, 2017, available liquidity from cash and cash equivalents was approximately $66.8 million, comprised of cash and cash equivalents, including investments in money market mutual funds. Total debt outstanding as of March 31, 2017 was approximately $33.7 million, comprised entirely of the 8.25% notes due June 30, 2020 (NASDAQ:FULLL). Our board of directors declared the monthly distributions for the third quarter of 2017 at $0.083 per share. The schedule of distribution payments is as follows: Our distribution policy has been designed to set a base distribution rate that is well-covered by NII that will be supplemented by special distributions from NII in excess of the declared distribution and as catalyst-driven investments are realized. During April 2017, we sold our position in Chester Downs & Marina LLC for approximately $6.3 million, including accrued interest.  We realized approximately $0.3 million of gains on the disposition of the investment. During April and May 2017, we sold the remaining $6.3 million of our position in Everi Payments, Inc. for approximately $6.8 million, including accrued interest.  We realized approximately $0.6 million of gains on the disposition of the investment. During May 2017, we received approximately $2.8 million in proceeds from the disposition of the primary asset of Double Deuce Lodging, LLC. The Company’s $10 million self-tender offer expired at 5:00 p.m., New York City time, on May 5, 2017.  The Company purchased 869,565 shares, representing approximately 6.94% of its outstanding shares, at a price of $11.50 per share on a pro rata basis for a total cost of approximately $10 million, excluding fees and expenses relating to the self-tender offer.  The purchase price represented approximately 85% of net asset value per share as of March 31, 2017. Great Elm Capital Corp. will host a conference call and webcast on Monday, May 15, 2017 at 10:00 a.m. New York City time to discuss its first quarter financial results. All interested parties are invited to participate in the conference call by dialing (844) 820-8297; international callers should dial (661) 378-9758. Participants should enter the Conference ID 20957666 when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit http://www.greatelmcc.com/ under Investor Relations. Additionally, the conference call with be webcast simultaneously at http://edge.media-server.com/m/p/quvzyvm2. Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC’s investment objective is to generate both current income and capital appreciation, while seeking to protect against risk of permanent capital loss. GECC focuses on special situations and catalyst-driven investments as it seeks to generate attractive risk-adjusted returns. Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “potential,” “continue,” “upside,” and “potential,” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: conditions in the credit markets, the price of GECC common stock, performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. 1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and payment in kind “PIK” interest. 2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). (1) The per share data was derived by using the weighted average shares outstanding during the period. (2) The per share data for distributions declared reflects the actual amount of distributions of record per share for the period.


News Article | May 10, 2017
Site: www.prnewswire.com

Nextel Brazil's average monthly service revenue per subscriber (ARPU) for the first quarter of 2017 was $21, a 31% increase on a reported basis, and a 5% increase on a constant currency basis, compared to the same quarter last year. Nextel Brazil's average monthly churn rate for the first quarter of 2017 was 3.71%, a 63 basis point decrease compared to the same quarter last year. Nextel Brazil's cost per gross addition (CPGA) was $84 for the first quarter of 2017, a $12 decrease on a reported basis, and a 28% decrease on a constant currency basis, compared to the same quarter last year. Nextel Brazil's cash cost per user (CCPU) was $19 for the first quarter of 2017, a $4 increase on a reported basis, and a 1% decrease on a constant currency basis, compared to the same quarter last year. During the first quarter, the Company spent $118 million of cash and investments, primarily related to $45 million of cash used in operating activities (including approximately $30 million paid for interest and $19 million paid for annual spectrum license fees), $28 million of cash used for capital expenditures and $42 million of cash for scheduled principal payments. At quarter-end, the Company's sources of funding included $213 million of cash and short-term investments, $163 million of cash held in escrow to secure indemnification obligations in connection with the sale of Nextel Mexico and $92 million in cash pledged as collateral to secure certain performance bonds in Brazil. "We are making good progress working with our lenders to obtain multiple years of principal amortization relief on our loans," said Dan Freiman, NII's Chief Financial Officer. "Our ongoing discussions reflect a common interest in making the necessary modifications to our loan terms to allow adequate time for us to continue to build the scale in our business we need to generate free cash flow. We're optimistic that we will reach an agreement with our lenders." Additional details regarding the Company's results, including a more detailed explanation on local currency operating metrics, are included in the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2017 that was filed with the Securities and Exchange Commission today. Additional operational and financial details, including a quarterly earnings presentation, are also available under the Company's Investor Relations link at www.nii.com. In addition to the financial results prepared in accordance with accounting principles generally accepted in the United States (GAAP) provided throughout this press release and in the attached financial tables, NII Holdings has presented consolidated adjusted OIBDA, as well as Nextel Brazil's ARPU, CCPU, and CPGA. These measures are non-GAAP financial measures and should be considered in addition to, but not as substitutes for, the information prepared in accordance with GAAP. Reconciliations from GAAP results to these non-GAAP financial measures are provided in the notes to the attached financial tables. To view these and other reconciliations of non-GAAP financial measures that the Company uses, visit the investor relations link at www.nii.com. NII Holdings, Inc., a publicly held company based in Reston, Virginia, is a provider of differentiated mobile communication services for businesses and high value consumers in Brazil. NII Holdings, operating under the Nextel brand, offers fully integrated wireless communication tools with digital cellular voice services, data services and wireless Internet access. Visit the Company's website at www.nii.com. Nextel, the Nextel logo and Nextel Direct Connect are trademarks and/or service marks of Nextel Communications, Inc. Visit NII Holdings' news room for news and to access our markets' news centers: nii.com/newsroom. "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995.  This news release includes "forward-looking statements" within the meaning of the securities laws. The statements in this news release regarding the business and economic outlook, future performance, modifications to loan agreements, future funding or possible strategic transactions and guidance, as well as other statements that are not historical facts, are forward-looking statements. Forward-looking statements are estimates and projections reflecting management's judgment based on currently available information and involve a number of risks and uncertainties that could cause actual results to differ materially from those suggested by the forward-looking statements.  With respect to these forward-looking statements, management has made assumptions regarding, among other things, the Company's ability to fund the business and meet its business plans, customer growth and retention, pricing, network usage, operating costs, the timing of various events, the economic and regulatory environment and the foreign currency exchange rates that will prevail during the remainder of 2017. Future performance cannot be assured and actual results may differ materially from those in the forward-looking statements. Some factors that could cause actual results to differ include the risks and uncertainties relating to: the impact of liquidity constraints, including the inability to access escrowed and pledged funds when expected, our ability to reach agreement with lenders on amendments to the terms of our financing arrangements, the impact of more intense competitive conditions and changes in economic conditions in Brazil, the performance of the Company's networks, the Company's ability to provide services that customers want or need, the ability of the Company to continue as a going concern, the Company's ability to execute its business plan, and the additional risks and uncertainties that are described in NII Holdings' Annual Report on Form 10-K for the year ended December 31, 2016, as well as in other reports filed from time to time by NII Holdings with the Securities and Exchange Commission. This press release speaks only as of its date, and NII Holdings disclaims any duty to update the information herein. NON-GAAP RECONCILIATIONS FOR THE THREE MONTHS ENDED MARCH 31, 2017 AND THE THREE MONTHS ENDED MARCH 31, 2016 (UNAUDITED) Consolidated operating income before depreciation and amortization, or OIBDA, represents operating income before depreciation and amortization expense. Consolidated adjusted operating income before depreciation and amortization, or adjusted OIBDA, represents consolidated operating income before depreciation expense, amortization expense, material asset impairments, severance costs associated with publicly announced restructuring plans and other material non-recurring or unusual charges. Consolidated OIBDA and consolidated adjusted OIBDA are not measurements under accounting principles generally accepted in the United States, may not be similar to consolidated OIBDA and consolidated adjusted OIBDA measures of other companies and should be considered in addition to, but not as substitutes for, the information contained in our statements of operations. We believe that consolidated OIBDA and consolidated adjusted OIBDA provide useful information to investors because they are indicators of our operating performance, especially in a capital intensive industry such as ours, since they exclude items that are not directly attributable to ongoing business operations. Consolidated OIBDA and consolidated adjusted OIBDA can be reconciled to our consolidated statements of operations as follows (in millions): Average monthly revenue per subscriber unit in service, or ARPU, is an industry term that measures service revenues, which we refer to as subscriber revenues, per period from our customers divided by the weighted average number of subscriber units in commercial service during that period.  ARPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to ARPU measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations.  We believe that ARPU provides useful information concerning the appeal of our rate plans and service offerings and our performance in attracting and retaining high value customers.  Other revenue includes revenues for such services as roaming, handset maintenance, cancellation fees, analog and other.  ARPU can be calculated as follows (in millions, except ARPU): Cost per gross add, or CPGA, is an industry term that is calculated by dividing our selling, marketing and handset and accessory subsidy costs, excluding costs unrelated to initial customer acquisition, by our new subscribers during the period, or gross adds.  CPGA is not a measurement under accounting principles generally accepted in the United States, may not be similar to CPGA measures of other companies and should be considered in addition, but not as a substitute for, the information contained in our statements of operations.  We believe CPGA is a measure of the relative cost of customer acquisition.  CPGA can be calculated as follows (in millions, except CPGA): Cash cost per handset/unit, or CCPU, represents the sum of cost of service, general and administrative expenses and customer retention and other costs divided by average handsets in service during the period and divided by the number of months in the period. CCPU is not a measurement under accounting principles generally accepted in the United States, may not be similar to CCPU measures of other companies and should not be considered in addition to, but not as a substitute for, the information contained in our statements of operations.  We believe CCPU is a measure of the recurring costs we incur on a monthly basis to provide service to our subscribers. The CCPU calculation excludes material asset impairments, severance costs associated with publicly announced restructuring plans and other material non-recurring or unusual charges and is calculated as follows (in thousands, except CCPU): The following table shows the impact of changes in foreign currency exchange rates on certain financial measures for the three months ended March 31, 2016 compared to the same period in 2017 by (i) adjusting the relevant measures for the three months ended March 31, 2016 to levels that would have resulted if the average foreign currency exchange rates for the three months ended March 31, 2016 were the same as the average foreign currency exchange rates that were in effect for the three months ended March 31, 2017; and (ii) comparing the actual and adjusted financial measures for the three months ended March 31, 2016 to the similar financial measures for the three months ended March 31, 2017 to show the percentage change in those measures before and after taking those adjustments into account. The amounts reflected in the following table for operating income before depreciation and amortization on a consolidated basis and segment earnings for Nextel Brazil, before the adjustments for changes in foreign currency exchange rates, are based on the calculations contained elsewhere in these non-GAAP reconciliations for the three months ended March 31, 2017 and 2016. The average foreign currency exchange rates for each of the relevant currencies during each of the three months ended March 31, 2017 and 2016 are included in the notes to the table below. The information reflected in the following table is not a measurement under accounting principles generally accepted in the United States and should be considered in addition to, but not as a substitute for, the information contained in our statements of operations. We believe that these calculations provide useful information concerning our relative performance for the three months ended March 31, 2017 compared to the same period in 2016 by removing the impact of the significant difference in the average foreign currency exchange rates in effect for those periods. To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/nii-holdings-reports-2017-first-quarter-results-300454847.html


News Article | May 9, 2017
Site: globenewswire.com

NEW YORK, May 09, 2017 (GLOBE NEWSWIRE) -- Prospect Capital Corporation (NASDAQ:PSEC) (“Prospect”, “our”, or “we”) today announced financial results for our third fiscal quarter ended March 31, 2017. For the March 2017 quarter, we earned net investment income ("NII") of $73.1 million, or $0.20 per weighted average share, down $0.04 per weighted average share from the December 2016 quarter. This decrease was primarily driven by a decline in interest income due to lower prepayment fees, a lower coupon First Tower refinancing, and reduced yields from certain structured credit investments close to expected call dates, partially offset by a decrease in management fees. For the March 2016 quarter, our NII was $87.6 million, or $0.25 per weighted average share. NII decreased year-over-year in the March 2017 quarter by $0.05 per weighted average share. For the March 2017 quarter, our net income (“NI”) was $19.5 million or $0.05 per weighted average share, a decrease of $0.23 per weighted average share from the December 2016 quarter NI of $100.9 million, or $0.28 per weighted average share, and a decrease of $0.16 per weighted average share from the March 2016 quarter NI of $75.5 million, or $0.21 per weighted average share. NI decreased in the March 2017 quarter compared to each prior period primarily due to the factors above and unrealized depreciation in the energy, financial, and structured credit sectors. We continue to prioritize secured lending. As of March 31, 2017 and December 31, 2016, our portfolio consisted of the following: During the March 31, 2017 and December 31, 2016 quarters, our investment originations and repayment activity is summarized as follows: For a listing of transactions completed during the quarter, please see the section titled “Portfolio Investment Activity” in our form 10-Q for the quarter ended March 31, 2017. In addition to NPRC’s $2.06 billion of real estate assets at fair value, we and NPRC continued our investment in the online lending industry with a focus on super-prime, prime, and near-prime consumer and small business borrowers. As of March 31, 2017, we and NPRC own $785.5 million of online loans at fair value directly and through securitization interests, across multiple origination and underwriting platforms. Our online business currently yields more than a 12% return on our invested capital (net of all incurred costs and expected losses). Four bank credit facilities currently support NPRC’s online business. A NPRC subsidiary closed a consumer securitization during the December 2016 quarter. We are invested in structured credit investments with individual standalone financings non-recourse to Prospect and with our risk capped at our net investment amount. As of March 31, 2017 and December 31, 2016, our structured credit portfolio at fair value consisted of the following: To date, we have exited seven structured credit investments totaling $153.6 million with an average realized IRR of 16.8% and cash on cash multiple of 1.42 times. Since August 29, 2016 (the date of our June 2016 earnings release), 17 of our structured credit investments completed refinancings to reduce the cost of liabilities (three of which occurred after March 2017) and three additional structured credit investments completed multi-year extensions of the reinvestment period of such investments. We are working on identifying for our independent management teams further structured credit investment refinancings and extensions in the portfolio to enhance value. To date during the June 2017 quarter, we have completed new and follow-on investments as follows: The following table summarizes key leverage statistics as of March 31, 2017 and December 31, 2016. We repaid our $167.5 million August 2016 convertible note issue at maturity. In the current June 2017 quarter, we refinanced (or provided notice to call) a majority of our debt maturing in less than one year as follows: For the remainder of calendar year 2017, we have liability maturities of $67.2 million. On August 29, 2014, we renegotiated and closed an expanded five and a half year revolving credit facility (the “Facility”), summarized as follows: We have diversified our counterparty risk. As of March 31, 2017, 21 institutional lenders committed to the Facility compared to five lenders at June 30, 2010, one of the most diversified bank groups in our industry. The revolving period of the Facility extends through March 2019, with an additional one-year amortization period to March 2020, with distributions allowed after the completion of the revolving period. We currently have no borrowings drawn under our Facility. We have eight separate unsecured debt issuances aggregating $1.7 billion outstanding, not including our program notes, with maturities ranging from October 2017 to June 2024. As of March 31, 2017, $1.006 billion of program notes were outstanding with staggered maturities through October 2043. As a tax-efficient regulated investment company, our 90% minimum shareholder dividend payout requirement is based on taxable income rather than GAAP NII. Taxable income can decouple significantly from NII, especially relating to income generated from our structured credit investments. Refinancing liabilities, resetting maturities, and tax-loss-creating portfolio turnover of the loans inside our structured credit investments, as well as other factors, make estimation of taxable income a challenging exercise.  Taxable income is only disclosed to us by each structured credit collateral manager on an annual basis. We expect to disclose taxable income after such information becomes available to us. Prospect will host an earnings call on Wednesday, May 10, 2017 at 11:00 am. Eastern Time. Dial 888-338-7333. For a replay prior to June 9, 2017, call 877-344-7529 passcode 10105743.  The call will be available prior to June 9, 2017 on Prospect’s website, www.prospectstreet.com. For copies of our corporate presentation, our recent shareholder letter, and our performance data please see http://shareholder.prospectstreet.com. Prospect Capital Corporation (www.prospectstreet.com) is a business development company that focuses on lending to and investing in private businesses. Our investment objective is to generate both current income and long-term capital appreciation through debt and equity investments. We have elected to be treated as a business development company under the Investment Company Act of 1940 (“1940 Act”). We are required to comply with a series of regulatory requirements under the 1940 Act as well as applicable NASDAQ, federal and state rules and regulations. We have elected to be treated as a regulated investment company under the Internal Revenue Code of 1986. This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, whose safe harbor for forward-looking statements does not apply to business development companies. Any such statements, other than statements of historical fact, are highly likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under our control, and that we may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from any forward-looking statements. Such statements speak only as of the time when made. We undertake no obligation to update any such statement now or in the future.


BOSTON, May 12, 2017 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we”, “us”, “our” or “GECC”), (NASDAQ:GECC), today announced its financial results for the quarter ended March 31, 2017 and filed its quarterly report on Form 10-Q with the U.S. Securities and Exchange Commission. “We continue to be pleased at the pace of monetization of the legacy Full Circle portfolio, as well as with a number of names from the MAST-contributed portfolio and more recently acquired positions, as catalysts have resulted in a quicker repricing of these opportunities than we had anticipated. With that backdrop, we have a healthy amount of dry powder to deploy as the market presents compelling total return opportunities,” said Peter A. Reed, Chief Executive Officer of GECC. As of March 31, 2017, we held 23 debt investments across 20 companies, totaling approximately $149.6 million. Debt investments represented 98% of invested capital, as of March 31, 2017, with 94% of invested capital allocated to first lien and/or senior secured debt instruments and 4% of invested capital in unsecured debt obligations. We also had equity investments in seven companies, totaling approximately $2.6 million. As of March 31, 2017, the weighted average current yield on our debt portfolio was approximately 12.63% with approximately 47% of invested debt capital in floating rate debt instruments. During the quarter ended March 31, 2017, we deployed approximately $75.9 million (1) into new and existing investments across eight companies (two new, six existing). The weighted average price of the new debt investments was $0.98, carrying a weighted average current yield of 12.29%. Nearly all of these investments are first lien and / or senior secured investments with potential catalysts to unlock value. During the quarter ended March 31, 2017, we monetized 17 investments, in part or in full, for approximately $78.8 million (2), at a weighted average current yield of 13.34%, including the complete exit of one investment acquired from Full Circle, at a slight gain. Our weighted average realization price was $0.99. Total investment income for the quarter ended March 31, 2017 was approximately $7.3 million, or $0.58 per share. Net expenses for the period ended March 31, 2017 were approximately $3.2 million, or $0.26 per share. Net realized gains for the quarter ended March 31, 2017 were approximately $2.0 million, or $0.16 per share. Net unrealized depreciation from investments for the quarter ended March 31, 2017 was approximately $2.7 million, or ($0.21) per share. As of March 31, 2017, available liquidity from cash and cash equivalents was approximately $66.8 million, comprised of cash and cash equivalents, including investments in money market mutual funds. Total debt outstanding as of March 31, 2017 was approximately $33.7 million, comprised entirely of the 8.25% notes due June 30, 2020 (NASDAQ:FULLL). Our board of directors declared the monthly distributions for the third quarter of 2017 at $0.083 per share. The schedule of distribution payments is as follows: Our distribution policy has been designed to set a base distribution rate that is well-covered by NII that will be supplemented by special distributions from NII in excess of the declared distribution and as catalyst-driven investments are realized. During April 2017, we sold our position in Chester Downs & Marina LLC for approximately $6.3 million, including accrued interest.  We realized approximately $0.3 million of gains on the disposition of the investment. During April and May 2017, we sold the remaining $6.3 million of our position in Everi Payments, Inc. for approximately $6.8 million, including accrued interest.  We realized approximately $0.6 million of gains on the disposition of the investment. During May 2017, we received approximately $2.8 million in proceeds from the disposition of the primary asset of Double Deuce Lodging, LLC. The Company’s $10 million self-tender offer expired at 5:00 p.m., New York City time, on May 5, 2017.  The Company purchased 869,565 shares, representing approximately 6.94% of its outstanding shares, at a price of $11.50 per share on a pro rata basis for a total cost of approximately $10 million, excluding fees and expenses relating to the self-tender offer.  The purchase price represented approximately 85% of net asset value per share as of March 31, 2017. Great Elm Capital Corp. will host a conference call and webcast on Monday, May 15, 2017 at 10:00 a.m. New York City time to discuss its first quarter financial results. All interested parties are invited to participate in the conference call by dialing (844) 820-8297; international callers should dial (661) 378-9758. Participants should enter the Conference ID 20957666 when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit http://www.greatelmcc.com/ under Investor Relations. Additionally, the conference call with be webcast simultaneously at http://edge.media-server.com/m/p/quvzyvm2. Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC’s investment objective is to generate both current income and capital appreciation, while seeking to protect against risk of permanent capital loss. GECC focuses on special situations and catalyst-driven investments as it seeks to generate attractive risk-adjusted returns. Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “potential,” “continue,” “upside,” and “potential,” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are the following: conditions in the credit markets, the price of GECC common stock, performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof. 1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and payment in kind “PIK” interest. 2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). (1) The per share data was derived by using the weighted average shares outstanding during the period. (2) The per share data for distributions declared reflects the actual amount of distributions of record per share for the period.


NEW YORK--(BUSINESS WIRE)--Harvest Capital Credit Corporation (“Harvest Capital” or the “Company”) (NASDAQ:HCAP) announced that its Board of Directors declared distributions of $0.1125 per share for the months of April, May and June. The April distribution is payable on May 26, 2017 to shareholders of record on May 19, 2017. The May distribution is payable on June 22, 2017 to shareholders of record on June 15, 2017. The June distribution is payable on July 27, 2017 to shareholders of record on July 20, 2017. The Company's distributions may include a return of capital to shareholders to the extent that the Company's net investment income and net capital gains are insufficient to support the distributions. Distributions that are treated for tax purposes as a return of capital will reduce each shareholder's basis in his, her or its shares. Returns of shareholder capital also have the effect of reducing the Company's assets. For the quarter ended March 31, 2017, the Company reported a $2.5 million increase in net income (loss), compared to the quarter ended March 31, 2016. Net income was $2.3 million or $0.37 per share compared to a loss of $(0.1) million or $(0.02) per share for the quarter ended March 31, 2016. For the quarter ended March 31, 2017, the Company reported a 13.0% decrease in net investment income and core net investment income, compared to the quarter ended March 31, 2016. Net investment income and core net investment income were $2.2 million, or $0.35 per share, for the quarter ended March 31, 2017, compared to $2.6 million, or $0.41 per share, for the quarter ended March 31, 2016. The increase in net income was primarily attributable to a $1.2 million positive change in net realized gains (losses) on investments and a $1.6 million positive change in net unrealized appreciation (depreciation), partially offset by a $0.3 million decrease in net investment income, for the quarter ended March 31, 2017, as compared to the quarter ended March 31, 2016. Net investment income and core net investment income decreased primarily as a result of lower non-recurring interest and fee income and higher non-accruals in the quarter ended March 31, 2017, as compared to the quarter ended March 31, 2016. As of March 31, 2017, our total portfolio investments at fair value and total assets were $138.8 million and $148.6 million, respectively, compared to $134.1 million and $143.0 million at December 31, 2016. Net asset value per share was $13.89 at March 31, 2017, compared to $13.86 at December 31, 2016. During the first quarter of 2017, the Company made investments in eight companies totaling $16.1 million. Five of the investments were in new portfolio companies and three were additional investments in existing portfolio companies. The Company also had investment sales, payoffs and commitment expirations totaling $10.7 million during the three months ended March 31, 2017. The investment activity for the quarter ended March 31, 2017 was as follows: On February 17, 2017, the Company made a $2.0 million junior secured debt investment in Turning Point Brands, Inc. The investment carries a fixed cash rate of interest of 11.00%. On February 23, 2017, the Company made an additional $1.0 million senior secured debt investment in existing portfolio company WBL SPE II, LLC. The investment carries a fixed cash interest rate of 14.50%. On March 17, 2017, the Company made an additional $0.1 million equity investment in existing portfolio company Mercury Network, LLC. On March 22, 2017, the Company made a $0.5 million equity investment in Flight Engine Leasing XII LLC. On March 29, 2017, the Company made an additional $1.5 million debt investment in existing portfolio company Safety Services Acquisition Corp ("Safety"), bringing the Company's total debt investment to $7.5 million. The proceeds were used to fully refinance Safety's senior debt. As a result of the transaction, the Company's investment was converted from junior secured to senior secured and the interest rate was reduced from 15.00% (12.50% Cash/2.50% PIK) to LIBOR + 11.00% with a 1.00% LIBOR floor. On March 31, 2017, the Company made a $1.1 million senior secured debt investment and a $0.3 million equity investment in Flight Engine Leasing V LLC. The debt investment carries a cash interest rate equal to the greater of 13.00% or LIBOR + 7.00%. On March 31, 2017, the Company made a $4.0 million senior secured debt investment in Wetmore Tool and Engineering Company. The investment carries an interest rate of 13.00% (12.00% Cash / 1.00% PIK). On March 31, 2017, the Company made a $5.5 million senior secured debt investment and a $0.2 million equity investment in VTK Acquisition, Inc. The debt investment consists of a $3.5 million term loan that carries an interest rate of LIBOR + 12.00% and a $2.0 million revolver commitment that carries an interest rate of LIBOR + 6.50%. As of March 31, 2017, $0.4 million was outstanding under the revolver. On February 17, 2017, the Company received a par payoff on its $3.8 million junior secured debt investment in North Atlantic Trading Company, Inc. The Company generated a gross internal rate of return (“IRR”) of 12.9% on this exit. IRR is the rate of return that makes the net present value of all cash flows into or from the investment equal to zero, and is calculated based on the amount of each cash flow received or invested by the Company and the day it was received or invested. On February 27, 2017, the Company received a par payoff on its $0.5 million senior secured debt investment in WBL SPE I, LLC. The Company generated an IRR of 15.6% on this exit. "We are pleased to report another quarter of strong earnings at Harvest Capital Credit for the first quarter of 2017, with net investment income ("NII") and core net investment income (“Core NII”) of $0.35 per share, which covers our dividend for the quarter of $0.34 per share,” declared Richard P. Buckanavage, President and CEO. “The performance of the portfolio remains solid and enabled us to enjoy an increase in net asset value per share, which at $13.89 at quarter end was $0.03 per share higher than last quarter,” observed Mr. Buckanavage. “Our dividend coverage ratio of 103% for the first quarter, and the $0.44 per share of spillover income carried over from 2016, should provide shareholders with confidence in our current dividend payout level,” concluded Mr. Buckanavage. The Company employs various risk management and monitoring tools to categorize and assess its investments. No less frequently than quarterly, the Company applies an investment risk rating system which uses a five-level numeric scale. The following is a description of the conditions associated with each investment rating: As of March 31, 2017, the weighted average risk rating of the debt investments in the Company's portfolio increased to 2.03 from 2.01 in the previous quarter. Also, as of March 31, 2017, seven of the Company’s thirty debt investments were rated 1, eighteen investments were rated 2, two investments were rated 3, two investments were rated 4, and one investment was rated 5. As of March 31, 2017, two loans and a revenue linked security were on non-accrual status. As of March 31, 2017, the Company had $8.2 million of cash and restricted cash and $28.2 million of undrawn capacity on its $55.0 million senior secured revolving credit facility. The credit facility is secured by all of the Company’s assets and has an accordion feature that allows the size of the facility to increase up to $85.0 million. On January 27, 2017, the Company entered into an equity distribution agreement with JMP Securities LLC to sell up to 1,000,000 shares of our common stock from time to time at prevailing market prices or at negotiated prices. During the three months ended March 31, 2017, the Company sold 109,774 shares at an average price of $14.22 per share. Additionally, the Company holds six syndicated loans totaling $21.2 million at fair value as of March 31, 2017. These investments could be sold and the proceeds re-invested in our core lower-middle market strategy, as attractive opportunities arise. On April 19, 2017, the Company made a $4.0 million junior secured debt investment in Shannon Specialty Floorings, LLC. The investment carries an interest rate of LIBOR + 11.00% with a 1.00% LIBOR floor. On April, 28 2017, the Company made a $3.3 million senior secured debt investment in King Engineering Associates, Inc. The investment is comprised of a $3.0 million term loan and a $0.3 million revolver (unfunded at closing) and carries an interest rate of LIBOR + 10.00% on funded balances. On April 28, 2017, we amended our senior secured revolving credit facility to, among other things, (i) extend the expiration of the revolving period from April 30, 2017 to October 30, 2018; (ii) extend the maturity date from October 29, 2018 to the earlier of (x) April 30, 2020, or (y) the date that is six (6) months prior to the maturity of any of the Company's outstanding unsecured longer-term indebtedness, which, based on the Company's outstanding Notes that mature on January 16, 2020, the maturity date under the facility would be July 16, 2019; and (iii) subject to certain conditions, provide limited borrowing base credit for the Company's loans to (x) certain portfolio companies in which the Company or HCAP Equity Holdings, LLC owns in excess of ten percent of the portfolio company's equity interests and (y) certain special purpose entity portfolio companies formed to hold specified assets, which loans previously did not receive borrowing base credit. We are initiating a process to transition the provision of administrative services to the Company from JMP Credit Advisors LLC, our existing administrator, which is based in Alpharetta, Georgia, to HCAP Advisors LLC, our investment adviser, which is based in New York, New York. The transition, which will also result in changes to the personnel providing those administrative services, is expected to occur sometime before March 31, 2018, but could occur on a shorter timeline that provides for an orderly transition. The transition will allow the Company to bring this function and the personnel providing such services into the Company's principal executive office in New York. The Company will host a conference call on Wednesday, May 10, 2017 at 11:00 a.m. Eastern Time to discuss its first quarter results. All interested parties are invited to participate in the conference call by dialing (888) 566-6060 (domestic) or (973) 200-3100 (international). Participants should enter the Conference ID 74604497 when prompted. Harvest Capital Credit Corporation (NASDAQ: HCAP) provides customized financing solutions to privately held small and mid-sized companies in the U.S., generally targeting companies with annual revenues of less than $100 million and annual EBITDA of less than $15 million. The Company’s investment objective is to generate both current income and capital appreciation primarily by making direct investments in the form of subordinated debt, senior debt and, to a lesser extent, minority equity investments. Harvest Capital Credit Corporation is externally managed and has elected to be treated as a business development company under the Investment Company Act of 1940. This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not of historical fact (including statements containing the words "believes", "plans", "anticipates", "expects", "estimates", and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events, except as may be required by law. (1) All per share amounts are basic and diluted unless indicated otherwise. The purpose of core net investment income is to present net investment income without the effect of incentive fees related to items not included in net investment income, and without the effect of any excise taxes related to realized capital gains and losses. Incentive fees are reflected above the net investment income line on the income statement and thus affect net investment income for GAAP purposes. However, realized gains or losses and unrealized appreciation or depreciation are reflected below the net investment income line item on the income statement. Accordingly, capital gains incentive fees are reflected above the net investment income line item in the income statement even though the related realized gains or losses and unrealized appreciation or depreciation are reflected below the net investment income line item on the income statement. Any excise taxes related to realized capital gains and losses are also reflected above the net investment income line item in the income statement even though the related realized gains or losses and unrealized appreciation or depreciation are reflected below the net investment income line item on the income statement. Core net investment income adds the capital gains incentive fee and any excise taxes related to realized capital gains and losses back to net investment income so the capital gains incentive fee, any excise taxes related to realized capital gains and losses and the related realized gains or losses and unrealized appreciation or depreciation are all excluded from net investment income. The capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such cumulative realized capital gains exceed cumulative realized and unrealized capital losses through the end of such fiscal year (less the aggregate amount of any previously paid capital gain incentive fee). The Company also records an expense accrual relating to the capital gains incentive fee payable by the Company to its investment adviser when (i) the cumulative unrealized and realized gains on its investments exceed all cumulative realized and unrealized capital losses on its investments and (ii) the capital gains incentive fee that would be payable exceeds the aggregate amount of any previously paid capital gain incentive fee given the fact that a capital gains incentive fee would be owed to the investment adviser if the Company were to liquidate its investment portfolio at such time. Any decrease in unrealized appreciation in subsequent periods will result in the reversal of some or all of such previously recorded expense accrual. The actual incentive fee payable to the Company's investment adviser related to capital gains is determined and payable in arrears at the end of each fiscal year and is only based on cumulative realized capital gains, including realized capital gains for such period, but not unrealized capital gains.

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