Form 8-K

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): March 6, 2018

 

 

THL Credit, Inc.

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   814-00789   27-0344947

(State or other jurisdiction of

incorporation or organization)

 

(Commission

File Number)

 

(IRS Employer

Identification Number)

100 Federal Street, 31st Floor, Boston, MA 02110

(Address of principal executive offices)

Registrant’s telephone number, including area code (800) 450-4424

Not Applicable

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company  ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

 

 

 


Item 2.02. Results of Operations and Financial Condition.

On March 6, 2018, the Registrant issued a press release announcing its financial results for the quarter ended December 31, 2017 and declared a dividend of $0.27 per share payable on March 30, 2018 to stockholders of record at the close of business on March 20, 2018. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibit

Number

  

Description

99.1    Press Release, dated March 6, 2018


SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

    THL CREDIT, INC.
Date: March 6, 2018     By:  

/S/ TERRENCE W. OLSON

    Name:   Terrence W. Olson
    Title:  

Chief Financial Officer, Chief

Operating Officer & Treasurer

EX-99.1

Exhibit 99.1

 

LOGO

FOR IMMEDIATE RELEASE

THL Credit Reports Fourth Quarter 2017 Financial Results and Declares a Dividend of $0.27 Per Share

BOSTON – March 6, 2018 – THL Credit, Inc. (NASDAQ: TCRD) (“THL Credit” or the “Company”), a direct lender to lower middle market companies, today announced financial results for its fourth fiscal quarter ended December 31, 2017. Additionally, THL Credit announced that its Board of Directors has declared a first fiscal quarter 2018 dividend of $0.27 per share payable on March 30, 2018, to stockholders of record as of March 20, 2018.

“We are confident in the underlying value and future potential of the business, and we are proactively implementing strategies to achieve better alignment between the unrealized value in our portfolio and the market valuation of our company,” said Christopher Flynn, CEO of THL Credit. “To further demonstrate our commitment to TCRD, our Advisor has agreed to waive 100% of any earned incentive fees for 2018 and intends to purchase up to $10 million of TCRD stock under a prospective new 10b5-1 plan.”

HIGHLIGHTS

 

($ in millions, except per share amounts)

 
     As of Dec. 31,
2017
       

Portfolio results

    

Total assets

   $ 627.7    

Investment portfolio, at fair value

   $ 608.7    

Net assets

   $ 344.0    

Net asset value per share

   $ 10.51    

Weighted average yield on investments

     10.7  
     Year ended
Dec. 31, 2017
    Quarter ended
Dec. 31, 2017
 

Portfolio activity

 

 

Total portfolio investments made, at par

   $ 141.8     $ 49.8  

Total portfolio investments made, at cost

   $ 113.1     $ 22.7  

Number of new portfolio investments

     9       3  

Number of portfolio investments at end of period

     47       47  

Operating results

    

Total investment income

   $ 78.8     $ 18.6  

Net investment income

   $ 39.7     $ 8.7  

Net decrease in net assets from operations

   ($ 7.9   ($ 18.5

Net investment income per share

   $ 1.21     $ 0.27  

Dividends declared per share

   $ 1.08     $ 0.27  

 

1


PORTFOLIO AND INVESTMENT ACTIVITY

In the fourth quarter, THL Credit closed on three new investments totaling $11.9 million and an additional $37.9 million in follow-on investments in five existing portfolio companies.

New investments, including follow-on investments, for the fourth quarter included:

 

  $6.5 million first lien senior secured term loan and $0.2 million equity investment in smarTours, LLC and an affiliated entity, a pre-packaged travel tour operator to foreign destinations;

 

  $2.6 million first lien senior secured term loan and revolving loan in Whitney, Bradley & Brown, Inc., a provider of consulting and support services to the public and private sector;

 

  $2.6 million first lien senior secured term loan and revolving loan in Hansons Window & Construction, Inc., a provider of residential construction products to service the home repair and renovation market;

 

  Opportunistically purchased $28.2 million first lien senior secured term loan for $1.4 million prior to chapter eleven bankruptcy and $4.5 million DIP delayed draw term loan in Charming Charlie, LLC;

 

  $3.7 million delayed draw investment in LAI International, Inc.; and

 

  $1.5 million to fund investments in three other existing portfolio companies.

Notable proceeds from realizations for the quarter included:

 

  $6.3 million from the repayment of a first lien senior secured term loan and $9.2 million from the sale of our equity holdings in Thibaut, Inc., a controlled equity investment, resulting in a gain of $4.5 million;

 

  $15.1 million from the sale of senior secured term loans in Wheels Up Partners, LLC, and

 

  $5.5 million from the partial repayment of a first lien senior secured term loan in Alex Toys, LLC, at par.

These transactions, coupled with changes in net unrealized depreciation on the portfolio during the quarter, bring the total fair value of THL Credit’s investment portfolio to $608.7 million across 47 portfolio investments at the end of the fourth quarter. As of Dec. 31, 2017, THL Credit’s investment portfolio at fair value was allocated 67 percent in first lien senior secured debt, which includes unitranche investments, 11 percent in the Logan JV, 5 percent in second lien debt, 3 percent in subordinated debt, 2 percent in other income-producing securities and 12 percent in equity securities and warrants. The weighted average yield on new and follow-on investments made in the fourth quarter of 2017 was 8.5 percent. As of Dec. 31, 2017, the weighted average yield of the debt and income-producing securities, including the

 

2


Logan JV and reflecting the impact of investments on non-accrual, in the investment portfolio at their current cost basis was 10.7 percent. As of Dec. 31, 2017, THL Credit had loans on non-accrual status with an aggregate amortized cost of $56.3 million and fair value of $21.0 million, or 8.8 percent and 3.4 percent of the portfolio’s amortized cost and fair value, respectively. As of Dec. 31, 2017, 93 percent of its debt investments bore interest based on floating rates, which may be subject to interest rate floors, such as London Interbank offer rate, or LIBOR, or Canadian Dollar offer rate, or CDOR, and 7 percent of its debt investments 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 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 of its debt investments bore interest at fixed rates.

RESULTS OF OPERATIONS

Investment income

Total investment income for the three months ended Dec. 31, 2017 and 2016 was $18.6 million and $20.0 million, respectively, and consisted of $13.3 million and $14.2 million of interest income on debt securities (which included PIK interest of $0.3 million and $0.4 million and prepayment premiums of $0.1 million and $0.0 million, respectively), $3.4 million and $3.4 million of dividend income, $1.1 million and $1.5 million of interest income on other income-producing securities, and $0.8 million and $0.9 million of other income, including fees from THL Credit’s managed vehicles, respectively.

The decrease in investment income compared to the prior period was primarily due to a contraction in the overall investment portfolio since Dec. 31, 2016, which led to lower interest income.

Total investment income for the years ended Dec. 31, 2017 and 2016 was $78.8 million and $84.6 million, respectively, and consisted of $56.8 million and $63.0 million of interest income on debt securities (which included PIK interest of $1.7 million and $1.8 million and prepayment premiums of $0.1 million and $1.0 million, respectively), $13.5 million and $11.2 million of dividend income, $4.6 million and $6.7 million of interest income on other income-producing securities and $3.9 million and $3.7 million of other income, including fees from THL Credit’s managed vehicles, respectively.

 

3


The decrease in investment income from 2016 to 2017 was primarily due to a contraction in the overall investment portfolio since Dec. 31, 2016, which led to lower interest income. This decrease was partially offset by an increase in dividend income related to the Logan JV.

Expenses

Expenses for the three months ended Dec. 31, 2017 and 2016 were $9.9 million and $10.9 million, respectively. For the three months ended Dec. 31, 2017 and 2016, base management fees were $2.6 million and $2.6 million, incentive fees were $0.0 million and $1.8 million, administrator and other expenses were $1.5 million and $1.9 million and fees and expenses related to THL Credit’s borrowings were $5.7 million and $4.6 million, respectively. In addition, for the three months ended Dec. 31, 2017 and 2016, THL Credit recorded an income tax provision (benefit) related to its consolidated blocker corporations, excise and other taxes of $0.1 million and ($0.03) million, respectively.

The decrease in operating expenses was due to a decrease in incentive fees as a result of portfolio performance. This was partially offset by an increase in borrowing expenses, which included $1.2 million related to accelerated deferred financing costs related to the recent amendment to THL Credit’s credit facility.

Expenses for the years ended Dec. 31, 2017 and 2016 were $39.1 million and $39.9 million, respectively. For the years ended Dec. 31, 2017 and 2016, base management fees were $10.4 million and $11.0 million, incentive fees were $2.4 million, net of an $0.8 million incentive fee waiver, and $4.5 million, administrator and other expenses were $7.4 million and $8.1 million and fees and expenses related to THL Credit’s credit facility for the same periods were $18.8 million and $16.2 million, respectively. In addition, for the years ended Dec. 31, 2017 and 2016, THL Credit recorded an income tax provision related to its consolidated blocker corporations, excise and other taxes of $0.1 million and $0.1 million, respectively.

The decrease in operating expenses from 2016 to 2017 was due primarily to lower incentive fees due largely to portfolio performance, lower base management fees as a result of portfolio contraction, and lower administrator expenses. This decrease was partially offset by higher costs related to borrowings and the amendment to the credit facility described above.

Net investment income

Net investment income totaled $8.7 million and $9.1 million for the three months ended Dec. 31, 2017 and 2016, or $0.27 and $0.28 per share based upon 32,673,590 and 33,084,660 weighted average common shares outstanding, respectively.

 

4


Net investment income was lower due to a decrease in interest income from debt and income-producing securities as a result of contraction of the overall investment portfolio, which was partially offset by a decrease in incentive fees as a result of portfolio performance.

Net investment income totaled $39.7 million and $44.7 million for the years ended Dec. 31, 2017 and 2016, or $1.21 and $1.35 per share based upon 32,797,233 and 33,197,100 weighted average common shares outstanding, respectively.

The decrease in net investment income from 2016 to 2017 is primarily attributable to a decrease in interest on debt and other income-producing investments due to portfolio contraction and additional loans put on non-accrual status. This was offset by higher dividend income related to the Logan JV.

Net realized gains and losses on investments, net of income tax provision

For the three months ended Dec. 31, 2017, THL Credit recognized a net realized gain on portfolio investments of $5.0 million, primarily related to a realized gain from the exit of its equity investments in Thibaut, Inc. For the three months ended Dec. 31, 2016, THL Credit recognized a net realized loss on portfolio investments of $1.0 million, primarily related to a realized loss with the restructuring of THL Credit’s investment in Copperweld Bimetallics LLC, offset by a gain from an investment in Gryphon Partners 3.5, L.P.

For the year ended Dec. 31, 2017, THL Credit recognized a net realized loss of $17.3 million, primarily related to realized losses recognized in connection with the sale of certain debt investments. For the year ended Dec. 31, 2016, THL Credit recognized a net realized loss of $38.8 million, primarily related to realized losses recognized in connection with the restructuring of certain debt investments into equity investments.

For the year ended December 31, 2017, THL Credit recorded an income tax provision on realized gains of $0.8 million related to the exit of an investment held in a blocker corporation. There was no income tax provision on realized gains recorded for the year ended December 31, 2016.

Net change in unrealized appreciation (depreciation) on investments

For the three months ended Dec. 31, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized appreciation (depreciation) of ($32.2) million and ($0.9) million, respectively. For the years ended Dec. 31, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized appreciation (depreciation) of ($31.6) million and $11.3 million, respectively.

The net change in unrealized appreciation on investments was driven primarily by changes in the financial performance of certain portfolio companies.

 

5


Benefit for taxes on unrealized gain on investments

For the three months ended Dec. 31, 2017 and 2016, THL Credit recognized an income tax (provision) benefit for taxes on unrealized gains of ($0.1) million and $0.7 million related to consolidated subsidiaries, respectively. For the years ended Dec. 31, 2017 and 2016, the income tax benefit for taxes on unrealized gains on investments was $2.1 million and $0.1 million, respectively.

The change in provision for tax on unrealized gains on investments relates primarily to changes to the unrealized appreciation (depreciation) of the investments held in these taxable consolidated subsidiaries, the change in U.S. federal tax rates expected in future years and the exit of certain equity investments held in blocker corporations.

Change in net assets resulting from operations

Change in net assets resulting from operations totaled ($18.5) million and $7.9 million, or ($0.56) and $0.24 per share based upon 32,673,590 and 33,084,660 weighted average common shares outstanding, for the three months ended Dec. 31, 2017 and 2016, respectively.

Net decrease in net assets resulting from operations totaled ($7.9) million and $17.1 million, or ($0.24) and $0.51 per share based upon 32,797,233 and 33,197,100 weighted average common shares outstanding, for the years ended Dec. 31, 2017 and 2016, respectively.

The decrease in net assets resulting from operations for the respective periods is due primarily to net realized and unrealized losses in the portfolio.

FINANCIAL CONDITION, INCLUDING LIQUIDITY AND CAPITAL RESOURCES

As of Dec. 31, 2017, THL Credit had cash of $3.6 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 Dec. 31, 2017, THL Credit had $277.3 million in outstanding borrowings, which was comprised of $167.3 million outstanding on the revolving credit facility and $110.0 million of notes payable outstanding. As of Dec. 31, 2017, borrowings outstanding had a weighted average interest rate of 5.11 percent. For the year ended Dec. 31, 2017, THL Credit borrowed $103.4 million and repaid $120.3 million under the credit facilities, which excluded the refinancing of the $75.0 million term loan into the revolving credit facility.

 

6


For the year ended Dec. 31, 2017, THL Credit operating activities provided cash of $53.4 million primarily in connection with the purchase and sales of investments. Its financing activities used $16.9 million of net repayments on its credit facility, $35.4 million for distributions to stockholders, $2.5 million to repurchase common stock and $1.4 million for the payment of financing and offering costs.

For the year ended Dec. 31, 2016, THL Credit’s operating activities provided cash of $101.3 million primarily from the sales of investments, its financing activities used $75.8 million to repay borrowings on its credit facility, primarily from the net proceeds of the $25.0 million from the 2022 Notes, $42.8 million for distributions to stockholders, $4.0 million to repurchase common stock and $1.1 million for payment of financing and offering costs.

STOCK REPURCHASE PROGRAM

THL Credit has provided its stockholders with notice of its ability to repurchase shares of its common stock in accordance with 1940 Act requirements. Repurchases during the year ended December 31, 2017 were completed pursuant to a $20.0 million stock repurchase program authorized by THL Credit’s Board of Directors on March 7, 2017, which was extended on March 2, 2018. Unless extended by THL Credit’s Board of Directors, the stock repurchase program will expire on March 2, 2019. 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 will immediately retire all such shares of common stock that it purchases.

For the three month period ended Dec. 31, 2017, there were no stock repurchases. For the three month period ended Dec. 31, 2016, THL Credit repurchased 0.2 million shares of its common stock at an average price of approximately $10.23 per share, inclusive of commissions, or a weighted average discount to its net asset value of 13.7 percent. The total dollar amount of shares repurchased during the three month period ended Dec. 31, 2016 was $2.5 million.

For the year ended Dec. 31, 2017, THL Credit repurchased 0.3 million shares of its common stock at an average price of approximately $9.89 per share, inclusive of commissions, or a weighted average discount to its net asset value of 15.02 percent. The total dollar amount of shares repurchased during the year ended Dec. 31, 2017 was $2.5 million. For the year ended Dec. 31, 2016, THL Credit repurchased 0.4 million shares of its common stock at an average price of approximately $10.46 per share, inclusive of commissions, or a weighted average discount to its net asset value of 13.1 percent. The total dollar amount of shares repurchased during the year ended Dec. 31, 2016 was $4.0 million.

 

7


RECENT DEVELOPMENTS

From January 1, 2018 through March 6, 2018, THL Credit made follow-on investments of $7.5 million, including a $3.2 million investment in Logan JV, at a combined weighted average yield based upon cost at the time of the investment of 9.9%.

On March 2, 2018, in consultation with its board of directors, THL Credit accepted its Advisor’s proposal to waive 100% of the incentive fees accrued for the period commencing on January 1, 2018 and ending on December 31, 2018. Such incentive fees waived shall not be subject to recoupment.

On March 2, 2018, THL Credit’s board of directors declared a dividend of $0.27 per share payable on March 30, 2018 to stockholders of record at the close of business on March 20, 2018.

CONFERENCE CALL

THL Credit will host a conference call to discuss these results and its business outlook on March 7, 2018, at 10:30 a.m. Eastern Standard Time.

For those wishing to participate by telephone, please dial (877) 375-9141 (domestic) or (253) 237-1151 (international). Use passcode 8198307. 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 March 14, 2018, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering passcode 8198307. 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.

 

8


THL CREDIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(in thousands, except per share data)

 

     December 31, 2017     December 31, 2016  

Assets:

    

Investments at fair value:

    

Non-controlled, non-affiliated investments (cost of $484,816 and $519,837, respectively)

   $ 449,951     $ 501,992  

Controlled investments (cost of $155,547 and $150,765, respectively)

     158,736       167,207  

Non-controlled, affiliated investments (cost of $4 and $4, respectively)

     4       4  

Cash

     3,617       6,376  

Interest, dividends, and fees receivable

     7,835       9,041  

Deferred financing costs

     2,890       2,527  

Deferred tax assets

     2,661       2,442  

Prepaid expenses and other assets

     1,583       1,225  

Due from affiliate

     407       590  
  

 

 

   

 

 

 

Total assets

   $ 627,684     $ 691,404  
  

 

 

   

 

 

 

Liabilities:

    

Loans payable ($167,317 and $182,862 face amounts, respectively, reported net of
deferred financing costs of $0 and $1,207, respectively)

   $ 167,317     $ 181,655  

Notes payable ($110,000 and $110,000 face amounts, respectively, reported net of
deferred financing costs of $2,985 and $3,653, respectively)

     107,015       106,347  

Deferred tax liability

     2,336       4,518  

Accrued incentive fees

     972       3,243  

Base management fees payable

     2,556       2,608  

Accrued expenses and other payables

     2,829       1,701  

Accrued interest and fees

     551       961  

Other deferred liabilities

     79       501  

Interest rate derivative

     —         50  
  

 

 

   

 

 

 

Total liabilities

     283,655       301,584  

Net Assets:

    

Common stock, par value $.001 per share, 100,000 common shares authorized, 32,674 and 32,925 shares issued and outstanding at December 31, 2017 and December 31, 2016, respectively

     33       33  

Paid-in capital in excess of par

     434,197       437,623  

Net unrealized depreciation on investments, net of provision for taxes of $1,511
and $3,656, respectively

     (34,660     (5,197

Net unrealized depreciation on interest rate derivative

     —         (50

Accumulated net realized losses

     (67,393     (51,732

Accumulated undistributed net investment income

     11,150       8,428  
  

 

 

   

 

 

 

Total net assets attributable to THL Credit, Inc.

     343,327       389,105  

Net assets attributable to non-controlling interest

     702       715  
  

 

 

   

 

 

 

Total net assets

   $ 344,029     $ 389,820  
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 627,684     $ 691,404  
  

 

 

   

 

 

 

Net asset value per share attributable to THL Credit, Inc.

   $ 10.51     $ 11.82  
  

 

 

   

 

 

 

 

9


THL CREDIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

 

     For the years ended December 31,  
     2017     2016     2015  

Investment Income:

      

From non-controlled, non-affiliated investments:

      

Interest income

   $ 53,842     $ 66,077     $ 82,489  

Dividend income

     139       186       408  

Other income

     2,302       1,867       3,482  

From non-controlled, affiliated investments:

      

Other income

     1,089       1,588       2,228  

From controlled investments:

      

Interest income

     7,511       3,645       949  

Dividend income

     13,376       10,972       4,489  

Other income

     514       250       150  
  

 

 

   

 

 

   

 

 

 

Total investment income

     78,773       84,585       94,195  

Expenses:

      

Interest and fees on borrowings

     16,007       14,146       12,566  

Base management fees

     10,389       10,998       11,825  

Incentive fees

     3,185       4,461       11,894  

Administrator expenses

     2,869       3,625       3,677  

Other general and administrative expenses

     1,953       2,171       2,604  

Amortization of deferred financing costs

     2,748       2,071       1,894  

Professional fees

     1,858       1,531       1,518  

Directors’ fees

     693       727       888  
  

 

 

   

 

 

   

 

 

 

Total expenses before incentive fee waivers

     39,702       39,730       46,866  

Incentive fee waiver

     (811     —         —    
  

 

 

   

 

 

   

 

 

 

Total expenses, net of incentive fee waivers

     38,891       39,730       46,866  

Income tax provision (benefit), excise and other taxes

     168       155       (243
  

 

 

   

 

 

   

 

 

 

Net investment income

     39,714       44,700       47,572  

Realized Gain (Loss) and Change in Unrealized Appreciation on Investments:

      

Net realized (loss) gain on investments:

      

Non-controlled, non-affiliated investments

     (21,820     (27,935     170  

Controlled investments

     4,582       (10,914     20  

Foreign currency transactions

     (69     —         —    
  

 

 

   

 

 

   

 

 

 

Net realized (loss) gain on investments

     (17,307     (38,849     190  
  

 

 

   

 

 

   

 

 

 

Net change in unrealized (depreciation) appreciation on investments:

      

Non-controlled, non-affiliated investments

     (17,007     (8,250     (15,784

Controlled investments

     (13,253     19,391       (2,091

Translation of assets and liabilities in foreign currencies

     (1,346     —         —    
  

 

 

   

 

 

   

 

 

 

Net change in unrealized (depreciation) appreciation on investments

     (31,606     11,141       (17,875

Net change in unrealized (depreciation) appreciation attributable to non-controlling interests

     (13     140       —    
  

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss from investments

     (48,926     (27,568     (17,685

Provision for taxes on realized gain on investments

     (842     —         —    

Benefit (provision) for taxes on unrealized gain on investments

     2,146       137       (1,234
  

 

 

   

 

 

   

 

 

 

Benefit (provision) for taxes on realized and unrealized gain on investments

     1,304       137       (1,234

Interest rate derivative periodic interest payments, net

     (46     (276     (443

Net change in unrealized appreciation on interest rate derivative

     50       156       7  
  

 

 

   

 

 

   

 

 

 

Net (decrease) increase in net assets resulting from operations

   $ (7,904   $ 17,149     $ 28,217  
  

 

 

   

 

 

   

 

 

 

Net investment income per common share:

      

Basic and diluted

   $ 1.21     $ 1.35     $ 1.41  

Net (decrease) increase in net assets resulting from operations per common share:

      

Basic and diluted

   $ (0.24   $ 0.51     $ 0.84  

Dividends declared and paid

   $ 1.08     $ 1.29     $ 1.36  

Weighted average shares of common stock outstanding:

      

Basic and diluted

     32,797       33,197       33,637  

 

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About THL Credit, Inc.

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 origination 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.

Forward-Looking Statements

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.

Investor Contact:

THL Credit, Inc.

Lauren Vieira

617-790-6070

Media Contact:

Stanton Public Relations and Marketing, LLC

Doug Allen

646-502-3530

dallen@stantonprm.com

 

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