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BOSTON, May 04, 2017 (GLOBE NEWSWIRE) -- THL Credit, Inc. (NASDAQ:TCRD) (“THL Credit” or the “Company”), a direct lender to lower middle market companies, announced today financial results for its first fiscal quarter ended March 31, 2017.  Additionally, THL Credit announced that its Board of Directors has declared a second fiscal quarter 2017 dividend of $0.27 per share payable on June 30, 2017, to stockholders of record as of June 15, 2017. PORTFOLIO AND INVESTMENT ACTIVITY In the first quarter, THL Credit closed on two new investments totaling $28.5 million and an additional $10.8 million in follow-on investments in seven existing portfolio companies. New investments, including follow-on investments, for the first quarter included: These transactions bring the total fair value of THL Credit’s investment portfolio to $693.1 million across 47 portfolio investments at the end of the first quarter. As of March 31, 2017, THL Credit’s investment portfolio at fair value was allocated 57 percent in first lien senior secured debt, which includes unitranche investments, 15 percent in second lien debt, 3 percent in subordinated debt, 9 percent in the Logan JV, 2 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield on new investments made in the first quarter of 2017 was 11.7 percent. As of March 31, 2017, the weighted average yield of the debt and income-producing securities, including the Logan JV, in the investment portfolio at their current cost basis was 11.4 percent. As of March 31, 2017, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.4 million and fair value of $0.8 million, or 1.9 percent and 0.1 percent of the portfolio’s amortized cost and fair value, respectively. As of March 31, 2017, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. This compares to the portfolio as of Dec. 31, 2016, which had a fair value of $669.2 million across 47 portfolio investments allocated 55 percent in first lien senior secured debt, which includes unitranche investments, 14 percent in second lien debt, 4 percent in subordinated debt, 9 percent in the Logan JV, 4 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield of the debt and other income-producing securities in the investment portfolio, including the Logan JV, at their cost basis was 11.2 percent. As of Dec. 31, 2016, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.8 million and fair value of $6.9 million, or 2.1 percent and 1.0 percent of the portfolio’s amortized cost and fair value, respectively. As of Dec. 31, 2016, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. Investment income Total investment income for the three months ended March 31, 2017 and 2016 was $19.8 million and $22.6 million, respectively, and consisted of $14.5 million and $17.6 million of interest income on debt securities (which included PIK interest of $0.8 million and $0.6 million and prepayment premiums of $0.1 million and $0.0 million, respectively), $3.1 million and $2.4 million of dividend income, $1.3 million and $1.8 million of interest income on other income-producing securities, and $0.9 million and $0.8 million of other income, including fees from THL Credit’s managed vehicles, respectively. The decrease in investment income between the three month periods was primarily due to the contraction in overall investment portfolio since March 31, 2016, which led to lower interest income, and additional loans that were put on non-accrual status or were restructured into non-income producing securities. This decrease was offset primarily by an increase in dividend income related to the Logan JV. Expenses Expenses for the three months ended March 31, 2017 and 2016 were $10.1 million and $9.2 million, respectively.  For the three months ended March 31, 2017 and 2016, base management fees were $2.6 million and $2.9 million, incentive fees were $1.3 million and $0.0 million, administrator and other expenses were $1.7 million and $2.2 million and fees and expenses related to THL Credit’s borrowings were $4.3 million and $3.9 million, respectively. In addition, for the three months ended March 31, 2017 and 2016, THL Credit recorded an income tax provision related to its consolidated blocker corporations, excise and other taxes of $0.2 million and $0.2 million, respectively. The increase in operating expenses between the three month periods was due primarily to higher costs related to borrowings and higher incentive fees. This increase was offset by lower base management fees as a result of portfolio contraction and lower other operating expenses. Net investment income Net investment income totaled $9.7 million and $13.4 million for the three months ended March 31, 2017 and 2016, or $0.29 and $0.40 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, respectively. The decrease in net investment income between the three month periods is primarily attributable to a decrease in interest on debt investments and a higher incentive fee. This was offset by lower base management fees and an increase in dividend income related to the Logan JV. Net realized gains and losses on investments For the three months ended March 31, 2017, THL Credit recognized a realized loss of $1.5 million on the sale of its two remaining CLO investments in Flagship VII, Ltd. and Flagship VIII, Ltd., which was offset by a change in unrealized appreciation totaling the same amount. THL Credit also recognized a $0.6 million gain from an investment in Gryphon Partners 3.5, L.P.  For the three months ended March 31, 2016, THL Credit recognized a net realized loss on portfolio investments of $16.5 million, primarily related to a $17.1 million realized loss recognized in connection with the restructurings of THL Credit’s investments in Dimont & Associates, Inc. and OEM Group, LLC. Net change in unrealized appreciation (depreciation) on investments For the three months ended March 31, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized (depreciation) appreciation of $(3.7) million and $3.4 million, respectively. The net change in unrealized appreciation (depreciation) on our investments for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016 was driven primarily by unrealized depreciation as a result of changes in capital market conditions and the financial performance of certain portfolio companies. Benefit (provision) for taxes on unrealized gain on investments For the three months ended March 31, 2017 and 2016, THL Credit recognized an income tax benefit (provision) for taxes on unrealized gains of $0.2 million and ($0.1) million related to consolidated subsidiaries, respectively. The change in provision for taxes on unrealized gains on investments relates primarily to changes in the unrealized appreciation (depreciation) of the investments held in taxable consolidated subsidiaries, other temporary differences and a change in the prior year estimates received from certain portfolio companies. Realized and unrealized appreciation (depreciation) on interest rate derivative For the three months ended March 31, 2017 and 2016, THL Credit’s interest rate derivative agreement had a net change in unrealized appreciation (depreciation) of $0.0 million and ($0.1) million, respectively. For the three months ended March 31, 2017 and 2016, THL Credit recognized a realized loss related to amounts paid on the interest rate derivative of $0.0 million and $0.1 million, respectively. The changes for the respective periods were due to capital market changes impacting swap rates. Change in net assets resulting from operations Change in net assets resulting from operations totaled $5.3 million and $0.0 million, or $0.16 and $0.00 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, for the three months ended March 31, 2017 and 2016, respectively. The increase in net assets resulting from operations for the respective periods is due primarily to net realized and unrealized losses in the portfolio. As of March 31, 2017, THL Credit had cash of $2.5 million. THL Credit’s liquidity and capital resources are derived from its credit facilities, equity and debt raises and cash flows from operations, including investment sales and repayments, and income earned. THL Credit’s primary use of funds includes making investments in portfolio companies, payment of dividends to stockholders and funding operating expenses.  THL Credit used, and expects to continue to use, these capital resources, together with proceeds from the turnover within the portfolio and from future public and private offerings of securities to finance its investment objectives. As of March 31, 2017, THL Credit had $317.6 million in outstanding borrowings, which was comprised of $75.0 million outstanding on the term loan facility, $132.6 million outstanding on the revolving credit facility and $110.0 million of notes payable outstanding. As of March 31, 2017, borrowings outstanding had a weighted average interest rate of 4.59 percent. For the three months ended March 31, 2017, THL Credit borrowed $39.4 million and repaid $14.5 million under the credit facilities and notes payable. For the three months ended March 31, 2017, THL Credit’s operating activities used cash of $19.8 million primarily from the purchases of investments. Its financing activities provided $24.9 million of net borrowings on its credit facility and used $8.9 million for distributions to stockholders. For the three months ended March 31, 2016, THL Credit’s operating activities provided cash of $19.9 million primarily from the sales and repayments of investments. Its financing activities used $6.3 million to repay borrowings on its credit facility, $11.3 million for distributions to stockholders and $0.5 million to repurchase common stock. On March 8, 2016, THL Credit’s board of directors authorized a $25.0 million stock repurchase program. This stock repurchase program terminated on March 8, 2017. On March 7, 2017, THL Credit’s board of directors authorized a new $20.0 million stock repurchase program. Unless extended by its board of directors, the stock repurchase program will terminate on March 7, 2018 and may be modified or terminated at any time for any reason without prior notice. The timing and amount of any stock repurchases will depend on the terms and conditions of the repurchase program and no assurances can be given that any particular amount will be purchased. THL Credit has provided its stockholders with notice of its intention to repurchase shares of its common stock in accordance with 1940 Act requirements. THL Credit will retire immediately all such shares of common stock that it purchases in connection with the stock repurchase program. There were no share repurchases for the three month period ending March 31, 2017. For the three month period ended March 31, 2016, THL Credit repurchased 0.1 million shares of its common stock at an average price of approximately $10.62 per share, inclusive of commissions, or a weighted average discount to its net asset value of 15.7 percent. The total dollar amount of shares repurchased during the three month period ended March 31, 2016 was $0.5 million. From Apr. 1, 2017 through May 4, 2017, THL Credit closed two new first lien senior secured debt investments totaling $16.0 million and $0.5 million of common equity in the consumer products and services industry and two follow-on first lien senior secured debt investments totaling $0.9 million. The new and follow-on floating rate investments have a combined weighted average yield based upon cost at the time of the investment of 9.6 percent. On Apr. 24, 2017, THL Credit received proceeds of $8.3 million from the repayment of its senior secured first lien term loan in HEALTHCAREfirst, Inc., at par. On May 2, 2017, THL Credit’s board of directors declared a dividend of $0.27 per share payable on June 30, 2017 to stockholders of record at the date of business on June 15, 2017. On May 4, 2017, THL Credit sold its $17.5 million second lien term loan in Hostway Corporation, with an amortized cost basis of $17.3 million, for $16.4 million. In connection with the sale, THL Credit recognized a realized loss of $0.9 million and reversed $2.6 million of unrealized depreciation resulting in a net asset value increase of $1.7 million in the second quarter. The Company will host a conference call to discuss these results and its business outlook on May 5, 2017, at 10:30 a.m. Eastern Standard Time.  The conference call will be led by Sam W. Tillinghast and Christopher J. Flynn, co-chief executive officers, and Terrence W. Olson, chief operating officer and chief financial officer. For those wishing to participate by telephone, please dial (877) 375-9141 (domestic) or (253) 237-1151 (international).  Use passcode 3756009.  The Company will also broadcast the conference call live via the Investor Relations section of its website at www.THLCreditBDC.com.  Starting approximately two hours after the conclusion of the call, a replay will be available through May 12, 2017, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering passcode 3756009.  The replay will also be available on the THL Credit’s website. AVAILABLE INFORMATION THL Credit’s filings with the Securities and Exchange Commission, press releases, earnings releases, investor presentation and other financial information are available on its website at www.THLCreditBDC.com. THL Credit, Inc. (NASDAQ:TCRD) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to generate both current income and capital appreciation, primarily through directly originated first lien secured loans, including unitranche investments. In certain instances, the Company also makes second lien, subordinated, or mezzanine debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity co-investments. The Company targets investments primarily in lower middle market companies with annual EBITDA generally between $5 million and $25 million that require capital for growth and acquisitions. The Company is headquartered in Boston, with additional investment teams in Chicago, Dallas, Los Angeles and New York. The Company’s investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940. For more information, please visit www.THLCreditBDC.com. Statements made in this press release may constitute forward-looking statements. Such statements reflect various assumptions by the Company concerning anticipated results and are not guarantees of future performance. The accuracy of such statements involves known and unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control, including the factors described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.


BOSTON, May 04, 2017 (GLOBE NEWSWIRE) -- THL Credit, Inc. (NASDAQ:TCRD) (“THL Credit” or the “Company”), a direct lender to lower middle market companies, announced today financial results for its first fiscal quarter ended March 31, 2017.  Additionally, THL Credit announced that its Board of Directors has declared a second fiscal quarter 2017 dividend of $0.27 per share payable on June 30, 2017, to stockholders of record as of June 15, 2017. PORTFOLIO AND INVESTMENT ACTIVITY In the first quarter, THL Credit closed on two new investments totaling $28.5 million and an additional $10.8 million in follow-on investments in seven existing portfolio companies. New investments, including follow-on investments, for the first quarter included: These transactions bring the total fair value of THL Credit’s investment portfolio to $693.1 million across 47 portfolio investments at the end of the first quarter. As of March 31, 2017, THL Credit’s investment portfolio at fair value was allocated 57 percent in first lien senior secured debt, which includes unitranche investments, 15 percent in second lien debt, 3 percent in subordinated debt, 9 percent in the Logan JV, 2 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield on new investments made in the first quarter of 2017 was 11.7 percent. As of March 31, 2017, the weighted average yield of the debt and income-producing securities, including the Logan JV, in the investment portfolio at their current cost basis was 11.4 percent. As of March 31, 2017, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.4 million and fair value of $0.8 million, or 1.9 percent and 0.1 percent of the portfolio’s amortized cost and fair value, respectively. As of March 31, 2017, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. This compares to the portfolio as of Dec. 31, 2016, which had a fair value of $669.2 million across 47 portfolio investments allocated 55 percent in first lien senior secured debt, which includes unitranche investments, 14 percent in second lien debt, 4 percent in subordinated debt, 9 percent in the Logan JV, 4 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield of the debt and other income-producing securities in the investment portfolio, including the Logan JV, at their cost basis was 11.2 percent. As of Dec. 31, 2016, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.8 million and fair value of $6.9 million, or 2.1 percent and 1.0 percent of the portfolio’s amortized cost and fair value, respectively. As of Dec. 31, 2016, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. Investment income Total investment income for the three months ended March 31, 2017 and 2016 was $19.8 million and $22.6 million, respectively, and consisted of $14.5 million and $17.6 million of interest income on debt securities (which included PIK interest of $0.8 million and $0.6 million and prepayment premiums of $0.1 million and $0.0 million, respectively), $3.1 million and $2.4 million of dividend income, $1.3 million and $1.8 million of interest income on other income-producing securities, and $0.9 million and $0.8 million of other income, including fees from THL Credit’s managed vehicles, respectively. The decrease in investment income between the three month periods was primarily due to the contraction in overall investment portfolio since March 31, 2016, which led to lower interest income, and additional loans that were put on non-accrual status or were restructured into non-income producing securities. This decrease was offset primarily by an increase in dividend income related to the Logan JV. Expenses Expenses for the three months ended March 31, 2017 and 2016 were $10.1 million and $9.2 million, respectively.  For the three months ended March 31, 2017 and 2016, base management fees were $2.6 million and $2.9 million, incentive fees were $1.3 million and $0.0 million, administrator and other expenses were $1.7 million and $2.2 million and fees and expenses related to THL Credit’s borrowings were $4.3 million and $3.9 million, respectively. In addition, for the three months ended March 31, 2017 and 2016, THL Credit recorded an income tax provision related to its consolidated blocker corporations, excise and other taxes of $0.2 million and $0.2 million, respectively. The increase in operating expenses between the three month periods was due primarily to higher costs related to borrowings and higher incentive fees. This increase was offset by lower base management fees as a result of portfolio contraction and lower other operating expenses. Net investment income Net investment income totaled $9.7 million and $13.4 million for the three months ended March 31, 2017 and 2016, or $0.29 and $0.40 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, respectively. The decrease in net investment income between the three month periods is primarily attributable to a decrease in interest on debt investments and a higher incentive fee. This was offset by lower base management fees and an increase in dividend income related to the Logan JV. Net realized gains and losses on investments For the three months ended March 31, 2017, THL Credit recognized a realized loss of $1.5 million on the sale of its two remaining CLO investments in Flagship VII, Ltd. and Flagship VIII, Ltd., which was offset by a change in unrealized appreciation totaling the same amount. THL Credit also recognized a $0.6 million gain from an investment in Gryphon Partners 3.5, L.P.  For the three months ended March 31, 2016, THL Credit recognized a net realized loss on portfolio investments of $16.5 million, primarily related to a $17.1 million realized loss recognized in connection with the restructurings of THL Credit’s investments in Dimont & Associates, Inc. and OEM Group, LLC. Net change in unrealized appreciation (depreciation) on investments For the three months ended March 31, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized (depreciation) appreciation of $(3.7) million and $3.4 million, respectively. The net change in unrealized appreciation (depreciation) on our investments for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016 was driven primarily by unrealized depreciation as a result of changes in capital market conditions and the financial performance of certain portfolio companies. Benefit (provision) for taxes on unrealized gain on investments For the three months ended March 31, 2017 and 2016, THL Credit recognized an income tax benefit (provision) for taxes on unrealized gains of $0.2 million and ($0.1) million related to consolidated subsidiaries, respectively. The change in provision for taxes on unrealized gains on investments relates primarily to changes in the unrealized appreciation (depreciation) of the investments held in taxable consolidated subsidiaries, other temporary differences and a change in the prior year estimates received from certain portfolio companies. Realized and unrealized appreciation (depreciation) on interest rate derivative For the three months ended March 31, 2017 and 2016, THL Credit’s interest rate derivative agreement had a net change in unrealized appreciation (depreciation) of $0.0 million and ($0.1) million, respectively. For the three months ended March 31, 2017 and 2016, THL Credit recognized a realized loss related to amounts paid on the interest rate derivative of $0.0 million and $0.1 million, respectively. The changes for the respective periods were due to capital market changes impacting swap rates. Change in net assets resulting from operations Change in net assets resulting from operations totaled $5.3 million and $0.0 million, or $0.16 and $0.00 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, for the three months ended March 31, 2017 and 2016, respectively. The increase in net assets resulting from operations for the respective periods is due primarily to net realized and unrealized losses in the portfolio. As of March 31, 2017, THL Credit had cash of $2.5 million. THL Credit’s liquidity and capital resources are derived from its credit facilities, equity and debt raises and cash flows from operations, including investment sales and repayments, and income earned. THL Credit’s primary use of funds includes making investments in portfolio companies, payment of dividends to stockholders and funding operating expenses.  THL Credit used, and expects to continue to use, these capital resources, together with proceeds from the turnover within the portfolio and from future public and private offerings of securities to finance its investment objectives. As of March 31, 2017, THL Credit had $317.6 million in outstanding borrowings, which was comprised of $75.0 million outstanding on the term loan facility, $132.6 million outstanding on the revolving credit facility and $110.0 million of notes payable outstanding. As of March 31, 2017, borrowings outstanding had a weighted average interest rate of 4.59 percent. For the three months ended March 31, 2017, THL Credit borrowed $39.4 million and repaid $14.5 million under the credit facilities and notes payable. For the three months ended March 31, 2017, THL Credit’s operating activities used cash of $19.8 million primarily from the purchases of investments. Its financing activities provided $24.9 million of net borrowings on its credit facility and used $8.9 million for distributions to stockholders. For the three months ended March 31, 2016, THL Credit’s operating activities provided cash of $19.9 million primarily from the sales and repayments of investments. Its financing activities used $6.3 million to repay borrowings on its credit facility, $11.3 million for distributions to stockholders and $0.5 million to repurchase common stock. On March 8, 2016, THL Credit’s board of directors authorized a $25.0 million stock repurchase program. This stock repurchase program terminated on March 8, 2017. On March 7, 2017, THL Credit’s board of directors authorized a new $20.0 million stock repurchase program. Unless extended by its board of directors, the stock repurchase program will terminate on March 7, 2018 and may be modified or terminated at any time for any reason without prior notice. The timing and amount of any stock repurchases will depend on the terms and conditions of the repurchase program and no assurances can be given that any particular amount will be purchased. THL Credit has provided its stockholders with notice of its intention to repurchase shares of its common stock in accordance with 1940 Act requirements. THL Credit will retire immediately all such shares of common stock that it purchases in connection with the stock repurchase program. There were no share repurchases for the three month period ending March 31, 2017. For the three month period ended March 31, 2016, THL Credit repurchased 0.1 million shares of its common stock at an average price of approximately $10.62 per share, inclusive of commissions, or a weighted average discount to its net asset value of 15.7 percent. The total dollar amount of shares repurchased during the three month period ended March 31, 2016 was $0.5 million. From Apr. 1, 2017 through May 4, 2017, THL Credit closed two new first lien senior secured debt investments totaling $16.0 million and $0.5 million of common equity in the consumer products and services industry and two follow-on first lien senior secured debt investments totaling $0.9 million. The new and follow-on floating rate investments have a combined weighted average yield based upon cost at the time of the investment of 9.6 percent. On Apr. 24, 2017, THL Credit received proceeds of $8.3 million from the repayment of its senior secured first lien term loan in HEALTHCAREfirst, Inc., at par. On May 2, 2017, THL Credit’s board of directors declared a dividend of $0.27 per share payable on June 30, 2017 to stockholders of record at the date of business on June 15, 2017. On May 4, 2017, THL Credit sold its $17.5 million second lien term loan in Hostway Corporation, with an amortized cost basis of $17.3 million, for $16.4 million. In connection with the sale, THL Credit recognized a realized loss of $0.9 million and reversed $2.6 million of unrealized depreciation resulting in a net asset value increase of $1.7 million in the second quarter. The Company will host a conference call to discuss these results and its business outlook on May 5, 2017, at 10:30 a.m. Eastern Standard Time.  The conference call will be led by Sam W. Tillinghast and Christopher J. Flynn, co-chief executive officers, and Terrence W. Olson, chief operating officer and chief financial officer. For those wishing to participate by telephone, please dial (877) 375-9141 (domestic) or (253) 237-1151 (international).  Use passcode 3756009.  The Company will also broadcast the conference call live via the Investor Relations section of its website at www.THLCreditBDC.com.  Starting approximately two hours after the conclusion of the call, a replay will be available through May 12, 2017, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering passcode 3756009.  The replay will also be available on the THL Credit’s website. AVAILABLE INFORMATION THL Credit’s filings with the Securities and Exchange Commission, press releases, earnings releases, investor presentation and other financial information are available on its website at www.THLCreditBDC.com. THL Credit, Inc. (NASDAQ:TCRD) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to generate both current income and capital appreciation, primarily through directly originated first lien secured loans, including unitranche investments. In certain instances, the Company also makes second lien, subordinated, or mezzanine debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity co-investments. The Company targets investments primarily in lower middle market companies with annual EBITDA generally between $5 million and $25 million that require capital for growth and acquisitions. The Company is headquartered in Boston, with additional investment teams in Chicago, Dallas, Los Angeles and New York. The Company’s investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940. For more information, please visit www.THLCreditBDC.com. Statements made in this press release may constitute forward-looking statements. Such statements reflect various assumptions by the Company concerning anticipated results and are not guarantees of future performance. The accuracy of such statements involves known and unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control, including the factors described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.


BOSTON, May 04, 2017 (GLOBE NEWSWIRE) -- THL Credit, Inc. (NASDAQ:TCRD) (“THL Credit” or the “Company”), a direct lender to lower middle market companies, announced today financial results for its first fiscal quarter ended March 31, 2017.  Additionally, THL Credit announced that its Board of Directors has declared a second fiscal quarter 2017 dividend of $0.27 per share payable on June 30, 2017, to stockholders of record as of June 15, 2017. PORTFOLIO AND INVESTMENT ACTIVITY In the first quarter, THL Credit closed on two new investments totaling $28.5 million and an additional $10.8 million in follow-on investments in seven existing portfolio companies. New investments, including follow-on investments, for the first quarter included: These transactions bring the total fair value of THL Credit’s investment portfolio to $693.1 million across 47 portfolio investments at the end of the first quarter. As of March 31, 2017, THL Credit’s investment portfolio at fair value was allocated 57 percent in first lien senior secured debt, which includes unitranche investments, 15 percent in second lien debt, 3 percent in subordinated debt, 9 percent in the Logan JV, 2 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield on new investments made in the first quarter of 2017 was 11.7 percent. As of March 31, 2017, the weighted average yield of the debt and income-producing securities, including the Logan JV, in the investment portfolio at their current cost basis was 11.4 percent. As of March 31, 2017, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.4 million and fair value of $0.8 million, or 1.9 percent and 0.1 percent of the portfolio’s amortized cost and fair value, respectively. As of March 31, 2017, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. This compares to the portfolio as of Dec. 31, 2016, which had a fair value of $669.2 million across 47 portfolio investments allocated 55 percent in first lien senior secured debt, which includes unitranche investments, 14 percent in second lien debt, 4 percent in subordinated debt, 9 percent in the Logan JV, 4 percent in other income-producing securities and 14 percent in equity securities and warrants. The weighted average yield of the debt and other income-producing securities in the investment portfolio, including the Logan JV, at their cost basis was 11.2 percent. As of Dec. 31, 2016, THL Credit had loans in three issuers on non-accrual status with an aggregate amortized cost of $13.8 million and fair value of $6.9 million, or 2.1 percent and 1.0 percent of the portfolio’s amortized cost and fair value, respectively. As of Dec. 31, 2016, 89 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as LIBOR, and 11 percent bore interest at fixed rates. Investment income Total investment income for the three months ended March 31, 2017 and 2016 was $19.8 million and $22.6 million, respectively, and consisted of $14.5 million and $17.6 million of interest income on debt securities (which included PIK interest of $0.8 million and $0.6 million and prepayment premiums of $0.1 million and $0.0 million, respectively), $3.1 million and $2.4 million of dividend income, $1.3 million and $1.8 million of interest income on other income-producing securities, and $0.9 million and $0.8 million of other income, including fees from THL Credit’s managed vehicles, respectively. The decrease in investment income between the three month periods was primarily due to the contraction in overall investment portfolio since March 31, 2016, which led to lower interest income, and additional loans that were put on non-accrual status or were restructured into non-income producing securities. This decrease was offset primarily by an increase in dividend income related to the Logan JV. Expenses Expenses for the three months ended March 31, 2017 and 2016 were $10.1 million and $9.2 million, respectively.  For the three months ended March 31, 2017 and 2016, base management fees were $2.6 million and $2.9 million, incentive fees were $1.3 million and $0.0 million, administrator and other expenses were $1.7 million and $2.2 million and fees and expenses related to THL Credit’s borrowings were $4.3 million and $3.9 million, respectively. In addition, for the three months ended March 31, 2017 and 2016, THL Credit recorded an income tax provision related to its consolidated blocker corporations, excise and other taxes of $0.2 million and $0.2 million, respectively. The increase in operating expenses between the three month periods was due primarily to higher costs related to borrowings and higher incentive fees. This increase was offset by lower base management fees as a result of portfolio contraction and lower other operating expenses. Net investment income Net investment income totaled $9.7 million and $13.4 million for the three months ended March 31, 2017 and 2016, or $0.29 and $0.40 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, respectively. The decrease in net investment income between the three month periods is primarily attributable to a decrease in interest on debt investments and a higher incentive fee. This was offset by lower base management fees and an increase in dividend income related to the Logan JV. Net realized gains and losses on investments For the three months ended March 31, 2017, THL Credit recognized a realized loss of $1.5 million on the sale of its two remaining CLO investments in Flagship VII, Ltd. and Flagship VIII, Ltd., which was offset by a change in unrealized appreciation totaling the same amount. THL Credit also recognized a $0.6 million gain from an investment in Gryphon Partners 3.5, L.P.  For the three months ended March 31, 2016, THL Credit recognized a net realized loss on portfolio investments of $16.5 million, primarily related to a $17.1 million realized loss recognized in connection with the restructurings of THL Credit’s investments in Dimont & Associates, Inc. and OEM Group, LLC. Net change in unrealized appreciation (depreciation) on investments For the three months ended March 31, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized (depreciation) appreciation of $(3.7) million and $3.4 million, respectively. The net change in unrealized appreciation (depreciation) on our investments for the three months ended March 31, 2017 as compared to the three months ended March 31, 2016 was driven primarily by unrealized depreciation as a result of changes in capital market conditions and the financial performance of certain portfolio companies. Benefit (provision) for taxes on unrealized gain on investments For the three months ended March 31, 2017 and 2016, THL Credit recognized an income tax benefit (provision) for taxes on unrealized gains of $0.2 million and ($0.1) million related to consolidated subsidiaries, respectively. The change in provision for taxes on unrealized gains on investments relates primarily to changes in the unrealized appreciation (depreciation) of the investments held in taxable consolidated subsidiaries, other temporary differences and a change in the prior year estimates received from certain portfolio companies. Realized and unrealized appreciation (depreciation) on interest rate derivative For the three months ended March 31, 2017 and 2016, THL Credit’s interest rate derivative agreement had a net change in unrealized appreciation (depreciation) of $0.0 million and ($0.1) million, respectively. For the three months ended March 31, 2017 and 2016, THL Credit recognized a realized loss related to amounts paid on the interest rate derivative of $0.0 million and $0.1 million, respectively. The changes for the respective periods were due to capital market changes impacting swap rates. Change in net assets resulting from operations Change in net assets resulting from operations totaled $5.3 million and $0.0 million, or $0.16 and $0.00 per share based upon 32,925,369 and 33,303,242 weighted average common shares outstanding, for the three months ended March 31, 2017 and 2016, respectively. The increase in net assets resulting from operations for the respective periods is due primarily to net realized and unrealized losses in the portfolio. As of March 31, 2017, THL Credit had cash of $2.5 million. THL Credit’s liquidity and capital resources are derived from its credit facilities, equity and debt raises and cash flows from operations, including investment sales and repayments, and income earned. THL Credit’s primary use of funds includes making investments in portfolio companies, payment of dividends to stockholders and funding operating expenses.  THL Credit used, and expects to continue to use, these capital resources, together with proceeds from the turnover within the portfolio and from future public and private offerings of securities to finance its investment objectives. As of March 31, 2017, THL Credit had $317.6 million in outstanding borrowings, which was comprised of $75.0 million outstanding on the term loan facility, $132.6 million outstanding on the revolving credit facility and $110.0 million of notes payable outstanding. As of March 31, 2017, borrowings outstanding had a weighted average interest rate of 4.59 percent. For the three months ended March 31, 2017, THL Credit borrowed $39.4 million and repaid $14.5 million under the credit facilities and notes payable. For the three months ended March 31, 2017, THL Credit’s operating activities used cash of $19.8 million primarily from the purchases of investments. Its financing activities provided $24.9 million of net borrowings on its credit facility and used $8.9 million for distributions to stockholders. For the three months ended March 31, 2016, THL Credit’s operating activities provided cash of $19.9 million primarily from the sales and repayments of investments. Its financing activities used $6.3 million to repay borrowings on its credit facility, $11.3 million for distributions to stockholders and $0.5 million to repurchase common stock. On March 8, 2016, THL Credit’s board of directors authorized a $25.0 million stock repurchase program. This stock repurchase program terminated on March 8, 2017. On March 7, 2017, THL Credit’s board of directors authorized a new $20.0 million stock repurchase program. Unless extended by its board of directors, the stock repurchase program will terminate on March 7, 2018 and may be modified or terminated at any time for any reason without prior notice. The timing and amount of any stock repurchases will depend on the terms and conditions of the repurchase program and no assurances can be given that any particular amount will be purchased. THL Credit has provided its stockholders with notice of its intention to repurchase shares of its common stock in accordance with 1940 Act requirements. THL Credit will retire immediately all such shares of common stock that it purchases in connection with the stock repurchase program. There were no share repurchases for the three month period ending March 31, 2017. For the three month period ended March 31, 2016, THL Credit repurchased 0.1 million shares of its common stock at an average price of approximately $10.62 per share, inclusive of commissions, or a weighted average discount to its net asset value of 15.7 percent. The total dollar amount of shares repurchased during the three month period ended March 31, 2016 was $0.5 million. From Apr. 1, 2017 through May 4, 2017, THL Credit closed two new first lien senior secured debt investments totaling $16.0 million and $0.5 million of common equity in the consumer products and services industry and two follow-on first lien senior secured debt investments totaling $0.9 million. The new and follow-on floating rate investments have a combined weighted average yield based upon cost at the time of the investment of 9.6 percent. On Apr. 24, 2017, THL Credit received proceeds of $8.3 million from the repayment of its senior secured first lien term loan in HEALTHCAREfirst, Inc., at par. On May 2, 2017, THL Credit’s board of directors declared a dividend of $0.27 per share payable on June 30, 2017 to stockholders of record at the date of business on June 15, 2017. On May 4, 2017, THL Credit sold its $17.5 million second lien term loan in Hostway Corporation, with an amortized cost basis of $17.3 million, for $16.4 million. In connection with the sale, THL Credit recognized a realized loss of $0.9 million and reversed $2.6 million of unrealized depreciation resulting in a net asset value increase of $1.7 million in the second quarter. The Company will host a conference call to discuss these results and its business outlook on May 5, 2017, at 10:30 a.m. Eastern Standard Time.  The conference call will be led by Sam W. Tillinghast and Christopher J. Flynn, co-chief executive officers, and Terrence W. Olson, chief operating officer and chief financial officer. For those wishing to participate by telephone, please dial (877) 375-9141 (domestic) or (253) 237-1151 (international).  Use passcode 3756009.  The Company will also broadcast the conference call live via the Investor Relations section of its website at www.THLCreditBDC.com.  Starting approximately two hours after the conclusion of the call, a replay will be available through May 12, 2017, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering passcode 3756009.  The replay will also be available on the THL Credit’s website. AVAILABLE INFORMATION THL Credit’s filings with the Securities and Exchange Commission, press releases, earnings releases, investor presentation and other financial information are available on its website at www.THLCreditBDC.com. THL Credit, Inc. (NASDAQ:TCRD) is a closed-end investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to generate both current income and capital appreciation, primarily through directly originated first lien secured loans, including unitranche investments. In certain instances, the Company also makes second lien, subordinated, or mezzanine debt investments, which may include an associated equity component such as warrants, preferred stock or other similar securities and direct equity co-investments. The Company targets investments primarily in lower middle market companies with annual EBITDA generally between $5 million and $25 million that require capital for growth and acquisitions. The Company is headquartered in Boston, with additional investment teams in Chicago, Dallas, Los Angeles and New York. The Company’s investment activities are managed by THL Credit Advisors LLC, an investment adviser registered under the Investment Advisers Act of 1940. For more information, please visit www.THLCreditBDC.com. Statements made in this press release may constitute forward-looking statements. Such statements reflect various assumptions by the Company concerning anticipated results and are not guarantees of future performance. The accuracy of such statements involves known and unknown risks, uncertainties and other factors that, in some ways, are beyond management’s control, including the factors described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this press release.


Piazza G.,Carnegie Mellon University | Felmetsger V.,OEM Group | Muralt P.,Eawag - Swiss Federal Institute of Aquatic Science and Technology | Olsson III R.H.,Sandia National Laboratories | Ruby R.,Avago Technologies
MRS Bulletin | Year: 2012

This article reports on the state-of-the-art of the development of aluminum nitride (AlN) thin-fi lm microelectromechanical systems (MEMS) with particular emphasis on acoustic devices for radio frequency (RF) signal processing. Examples of resonant devices are reviewed to highlight the capabilities of AlN as an integrated circuit compatible material for the implementation of RF fi lters and oscillators. The commercial success of thin-fi lm bulk acoustic resonators is presented to show how AlN has de facto become an industrial standard for the synthesis of high performance duplexers. The article also reports on the development of a new class of AlN acoustic resonators that are directly integrated with circuits and enable a new generation of reconfi gurable narrowband fi lters and oscillators. Research efforts related to the deposition of doped AlN fi lms and the scaling of sputtered AlN fi lms into the nano realm are also provided as examples of possible future material developments that could expand the range of applicability of AlN MEMS.© 2012 Materials Research Society.


Lin C.-M.,University of California at Berkeley | Chen Y.-Y.,Tatung University | Felmetsger V.V.,OEM Group | Senesky D.G.,Stanford University | Pisano A.P.,University of California at Berkeley
Advanced Materials | Year: 2012

An AlN/3C-SiC composite layer enables the third-order quasi-symmetric (QS 3) Lamb wave mode with a high quality factor (Q) characteristic and an ultra-high phase velocity up to 32395 ms -1. A Lamb wave resonator utilizing the QS 3 mode exhibits a low motional impedance of 91 Ω and a high Q of 5510 at a series resonance frequency (f s) of 2.92 GHz, resulting in the highest f s·Q product of 1.61 × 10 13 Hz among the suspended piezoelectric thin film resonators reported to date. Copyright © 2012 WILEY-VCH Verlag GmbH & Co. KGaA, Weinheim.


Jankus V.,OEM Group | Winscom C.,Brunel University | Monkman A.P.,OEM Group
Journal of Physics Condensed Matter | Year: 2010

We study triplet migration properties in NPB (N, N′-diphenyl-N, N′-bis(1-naphthyl)-1, 1′-biphenyl-4, 4′′-diamine) films using time resolved gated spectroscopy and dispersive migration theory as our main tools of analysis. We show that in NPB, a well-known hole transporter in organic light emitting diodes, at high excitation densities triplet migration follows two regimes - a dispersive non-equilibrium regime (distinguished by exciton energetical relaxation within the distribution of hopping sites and as a consequence the hopping frequency being time dependent) that evolves into a second, non-dispersive equilibrium regime. Further, we observe a third region, which we term acceleration. From the turning over time between dispersive and non-dispersive dynamics, we deduce the width of the triplet density of states(DOS). We observe how the DOS variance changes when one decreases the thickness of the NPB film and note how surface effects are becoming important. Furthermore, the DOS variance of NPB changes when another organic layer is evaporated on top, namely Ir(piq)3 (tris(1-phenylisoquinoline)iridium(III)). We believe that these changes are due to the different polarizable media in contact with the NPB film, either vacuum or Ir(piq)3. We also show in this paper that the triplet level when time approaches zero is much higher in energy than the relaxed triplet levels, as quoted in most published papers; these values are thus incorrect for NPB. Lastly, it is possible that even at room temperature, the dispersive regime might be important for triplet migration at high initial triplet concentrations and might affect the diffusion length of triplets to a certain extent. However, more experimentation needs to be performed in order to address this question. Overall, we have characterized the triplet migration dynamics of NPB fully and shown that it agrees with previously published observations for other organic semiconductors and theoretical considerations. © 2010 IOP Publishing Ltd.


News Article | November 25, 2016
Site: www.newsmaker.com.au

Refrigerated vehicles are used for transportation of vulnerable food, pharmaceutical and healthcare products. The increasing population and consumer spending on food products has surged their production globally. Among food products, dairy products and fresh fruits and vegetables require cold storage and transportation for their sustainability. The increasing global warming has been emerging as a matter of great concern for the food producers globally which is reducing the shelf life of these products in non-refrigerated conditions. Most of the pharmaceutical and healthcare products need protection from heat and light to maintain their chemical and biological formulation. All these concerns have been driving the refrigerated vehicles market globally and are expected to increase in terms of growth rate during 2014-2020. Refrigerated vehicles include a large types of vehicles used in several transportation requirements based on loading requirement. Some of their types include refrigerated vans, refrigerated trucks, refrigerated trailers, refrigerated railcars, refrigerated ships, refrigerated transport by air, refrigerated containers, atmosphere controlled containers, intermodal refrigerated containers, insulated containers, integral reefer containers and multimodal temperature containers. The increasing consumer awareness about fresh products is one of the important factors which have been escalating the demand for refrigerated vehicles globally. The developing and underdeveloped countries have an underdeveloped cold-supply chain infrastructure which leads to destruction of a large quantity of food products every year. This also increases warehousing charges of the food manufacturers and the distributors as they have to maintain local distribution points in the area of demand. The growing population and increasing per capita income in these countries is boosting the demand for food products which is further creating demands for the refrigerated vehicles in these countries. The dairy product consumption in Asia Pacific countries have also been increasing to a great extent in recent times. The pharmaceutical and healthcare industries have also been growing at a rapid pace in these developing countries which is creating demand for the refrigerated vehicles in this domain as well. The shortage of skilled labor and unstable fuel prices are the key hurdles for the refrigerated vehicles market. The companies operating in the refrigerated vehicles market are improving the fuel efficiency and noise reduction of these vehicles. There have been several technology development and introduction in the recent times by the refrigerated vehicle manufacturers. They include CorroGuard and ThermGuard by Great Dane, Strip door solution for refrigerated trucks  by R.O.M, GRIPTM by RTE, LED based indicator by Carrier, economical cold plates by Johnson, reefer monitoring system by PAR, reefer-trak sentry solutions by Star-Trak, Secureseal system by OEM Group, new alternator by Robert Bosch and Fleetview by Terion.


An process including supplying a mixture of a treatment liquid, ozone, carbon dioxide and optional agents for treatment of a non-diced or diced workpiece comprised of chemically sensitive materials within a system having a liquid supply line between a reservoir containing the treatment liquid and a treatment chamber housing the workpiece, one or more nozzles accepting the treatment liquid from the liquid supply line and spraying same onto the surface of the workpiece, including the process of spraying ozone introduced into an environment containing the workpiece, and the injection of carbon dioxide into the environment to preserve the workpiece support by controlling the liquid layer of the processing liquid, the processing temperature, and the introduction of carbon dioxide and ozone into the reaction chamber.


A solution for producing nanoscale thickness resistor films with sheet resistances above 1000/ (ohm per square) and low temperature coefficients of resistance (TCR) from 50 ppm/ C. to near zero is disclosed. In a preferred embodiment, a silicon-chromium based compound material (cermet) is sputter deposited onto a substrate at elevated temperature with applied rf substrate bias. The substrate is then exposed to a process including exposure to a first in-situ anneal under vacuum, followed by exposure to air, and followed then by exposure to a second anneal under vacuum. This approach results in films that have thermally stable resistance properties and desirable TCR characteristics.


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