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): November 9, 2017

 

 

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 November 9, 2017, the Registrant issued a press release announcing its financial results for the quarter ended September 30, 2017 and declared a dividend of $0.27 per share payable on December 29, 2017 to stockholders of record at the close of business on December 15, 2017. 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 November 9, 2017


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: November 9, 2017     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 Third Quarter 2017 Financial Results and Declares a Dividend of $0.27 Per Share

BOSTON – November 9, 2017 – THL Credit, Inc. (NASDAQ: TCRD) (“THL Credit” or the “Company”), a direct lender to lower middle market companies, today announced financial results for its third fiscal quarter ended September 30, 2017. Additionally, THL Credit announced that its Board of Directors has declared a fourth fiscal quarter 2017 dividend of $0.27 per share payable on December 29, 2017, to stockholders of record as of December 15, 2017.

HIGHLIGHTS

 

($ in millions, except per share amounts)

   As of Sept. 30,
2017
       

Portfolio results

    

Total assets

   $ 677.0    

Investment portfolio, at fair value

   $ 653.4    

Net assets

   $ 371.4    

Net asset value per share

   $ 11.34    

Weighted average yield on investments

     11.2  
     Quarter ended
Sept. 30, 2017
    Quarter ended
Sept. 30, 2016
 

Portfolio activity

 

 

Total portfolio investments made, at par

   $ 29.3     $ 32.8  

Number of new portfolio investments

     2       2  

Number of portfolio investments at end of period

     45       47  

Operating results

    

Total investment income

   $ 20.1     $ 21.6  

Net investment income

   $ 11.2     $ 10.5  

Net increase in net assets from operations

   $ 4.1     $ 9.9  

Net investment income per share

   $ 0.34     $ 0.32  

Dividends declared per share

   $ 0.27     $ 0.34  

 

1


PORTFOLIO AND INVESTMENT ACTIVITY

In the third quarter, THL Credit closed on two new investments totaling $19.0 million and an additional $10.3 million in follow-on investments at par in five existing portfolio companies.

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

 

  $17.6 million first lien senior secured term loan in Anexinet Corp., an independent provider of one-stop enterprise technology solutions;

 

  $1.4 million first lien senior secured term loan in Women’s Health USA, a management services organization that provides administrative services on an outsourced basis to physician practices specializing in women’s health;

 

  $4.1 million follow-on first lien senior secured term loan and $0.2 million equity contribution in Sciens Buildings Solutions, LLC;

 

  $3.0 million follow-on first lien senior secured term loan in MeriCal, LLC; and

 

  $3.0 million to fund follow-on revolver investments in three other existing portfolio companies.

Notable proceeds from realizations for the quarter included:

 

  $19.0 million from the repayment of a senior secured term loan and $1.2 million from the realization of equity holdings in Food Processing Holdings, LLC;

 

  $14.6 million from the sale of a senior secured term loan in RealD Inc., and

 

  $3.2 million from the sale of a senior secured term loan in CRS Reprocessing, LLC.

These transactions bring the total fair value of THL Credit’s investment portfolio to $653.4 million across 45 portfolio investments at the end of the third quarter. As of Sept. 30, 2017, THL Credit’s investment portfolio at fair value was allocated 64 percent in first lien senior secured debt, which includes unitranche investments, 7 percent in second lien debt, 3 percent in subordinated debt, 10 percent in the Logan JV, 3 percent in other income-producing securities and 13 percent in equity securities and warrants. The weighted average yield on new and follow-on investments made in the third quarter of 2017 was 8.8 percent. As of Sept. 30, 2017, the weighted average yield of the debt and income-producing securities, including the Logan JV and reflecting the impact of investments on non-accrual, in the investment portfolio at their current cost basis was 11.2 percent. As of Sept. 30, 2017, THL Credit had loans on non-accrual status with an aggregate amortized cost of $32.4 million and fair value of $19.7 million, or 5.0 percent and 3.0 percent of the portfolio’s amortized cost and fair value, respectively. As of Sept. 30, 2017, 92 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 8 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

 

2


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 Sept. 30, 2017 and 2016 was $20.1 million and $21.6 million, respectively, and consisted of $14.5 million and $16.2 million of interest income on debt securities (which included PIK interest of $0.4 million and $0.5 million and prepayment premiums of $0 and $0.6 million, respectively), $3.7 million and $2.8 million of dividend income, $1.1 million and $1.7 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 contraction in the overall investment portfolio since Sept. 30, 2016, which led to lower interest income. This decrease was offset primarily by an increase in dividend income related to the Logan JV.

Expenses

Expenses for the three months ended Sept. 30, 2017 and 2016 were $9.0 million and $11.1 million, respectively. For the three months ended Sept. 30, 2017 and 2016, base management fees were $2.6 million and $2.7 million, incentive fees were $0, which included a fee waiver of $0.8 million, and $2.6 million, with no fee waiver, administrator and other expenses were $2.2 million and $2.0 million and fees and expenses related to THL Credit’s borrowings were $4.4 million and $3.9 million, respectively. In addition, for the three months ended Sept. 30, 2017 and 2016, THL Credit recorded an income tax benefit related to its consolidated blocker corporations, excise and other taxes of $0.2 million and $0.1 million, respectively.

The decrease in operating expenses between the three month periods was due primarily to lower incentive fees due to portfolio performance and the Advisor waiving all of the incentive fee accrued for the current quarter, 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 one-time legal expenses associated with the exit of a portfolio investment in other expenses.

 

3


Net investment income

Net investment income totaled $11.2 million and $10.5 million for the three months ended Sept. 30, 2017 and 2016, or $0.34 and $0.32 per share based upon 32,721,686 and 33,169,376 weighted average common shares outstanding, respectively.

The increase in net investment income between the three month periods is primarily attributable to a decrease in incentive fee expenses and higher dividend income related to the Logan JV. This was offset by lower interest income on debt and other income-producing investments.

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

For the three months ended Sept. 30, 2017, THL Credit recognized a net realized loss of $11.3 million primarily from the $11.9 million loss on the sale of its senior secured term loan in CRS Reprocessing, LLC, which was partially offset by the gain on the realization of its equity holdings in Food Processing Holdings, LLC. For the three months ended Sept. 30, 2016, THL Credit recognized a net realized loss on portfolio investments of $25.0 million, primarily related to a $24.0 million realized loss recognized in connection with the restructurings of THL Credit’s investments in Loadmaster Derrick & Equipment, Inc. and Tri Starr Management Services, Inc.

Net change in unrealized appreciation (depreciation) on investments

For the three months ended Sept. 30, 2017 and 2016, THL Credit’s investment portfolio had a net change in unrealized appreciation (depreciation) of $4.8 million and $24.7 million, respectively.

The net change in unrealized appreciation (depreciation) on investments for the three months ended September 30, 2017 as compared to the three months ended September 30, 2016 was driven primarily by the reversal of prior period net unrealized depreciation related to certain restructured investments and the financial performance of certain portfolio companies.

Provision for taxes on unrealized gain on investments

For the three months ended Sept. 30, 2017 and 2016, THL Credit recognized a benefit (provision) for tax on unrealized gains of $0.4 million and ($0.4) 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 Sept. 30, 2017 and 2016, THL Credit’s interest rate derivative agreement had a net change in unrealized appreciation (depreciation) of $0 and $0.1 million, respectively.

 

4


For the three months ended Sept. 30, 2017 and 2016, THL Credit recognized a realized loss related to amounts paid on the interest rate derivative of $0 and $0.1 million, respectively.

The changes between the three month periods were due to capital market changes impacting swap rates. THL Credit’s five-year interest rate swap agreement expired on May 10, 2017.

Change in net assets resulting from operations

Change in net assets resulting from operations totaled $4.1 million and $9.9 million, or $0.13 and $0.30 per share based upon 32,721,686 and 33,169,376 weighted average common shares outstanding, for the three months ended Sept. 30, 2017 and 2016, respectively.

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

FINANCIAL CONDITION, INCLUDING LIQUIDITY AND CAPITAL RESOURCES

As of Sept. 30, 2017, THL Credit had cash of $3.5 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 Sept. 30, 2017, THL Credit had $297.4 million in outstanding borrowings, which was comprised of $75.0 million outstanding on the term loan facility and $112.4 million outstanding on the revolving credit facility, and $110.0 million of notes payable outstanding. As of Sept. 30, 2017, borrowings outstanding had a weighted average interest rate of 4.93 percent. For the nine months ended Sept. 30, 2017, THL Credit borrowed $85.9 million and repaid $82.8 million under the credit facilities.

For the nine months ended Sept. 30, 2017, THL Credit operating activities provided cash of $23.3 million primarily in connection with the purchase and sales of investments. Its financing activities provided $3.1 million of net borrowings on its credit facility and used $26.6 million for distributions to stockholders, $2.5 million to repurchase common stock and $0.1 million for the payment of financing and offering costs.

For the nine months ended Sept. 30, 2016, THL Credit operating activities provided cash of $90.9 million primarily from the sales and repayments of investments and its financing activities used $55.0 million to repay borrowings on its credit facility, $33.9 million for distributions to stockholders, $1.5 million to repurchase common stock and $0.1 million for the payment of financing and offering costs.

 

5


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. For the three month period ended Sept. 30, 2017, THL Credit repurchased 0.1 million shares of its common stock at an average price of approximately $9.71 per share, inclusive of commissions, or a weighted average discount to its net asset value of 15.6 percent. The total dollar amount of shares repurchased during the three month period ended Sept. 30, 2017 was $1.0 million. For the three month period ended Sept. 30, 2016, there were no stock repurchases.

These repurchases were completed pursuant to a $20.0 million stock repurchase program authorized by THL Credit’s Board of Directors on March 7, 2017. Unless extended by its board, 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 will immediately retire all such shares of common stock that it purchases.

RECENT DEVELOPMENTS

From Oct. 1, 2017 through Nov. 9, 2017, THL Credit closed three new first lien senior secured debt investments totaling $11.7 million in the IT services, Consumer services and Business services industries, one new equity investment totaling $0.2 million in the Consumer services industry and two follow-on first lien senior secured debt investments totaling $0.8 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 8.8 percent.

On Oct. 30, 2017, THL Credit sold its first lien senior secured term loan in Wheels Up Partners, LLC for $15.1 million.

On Oct. 30, 2017, THL Credit received proceeds of $5.5 million from the partial repayment of its first lien term loan in Alex Toys, LLC, which included a $0.08 million prepayment premium.

On Nov. 7, 2017, in consultation with its board of directors, THL Credit accepted the Advisor’s proposal to waive its incentive fee on net investment income for each of the three month periods ending Sept. 30, 2017 and Dec. 31, 2017 and entered into a fee waiver agreement whereby incentive fees on net investment income would be calculated under a new formula that would result in a lower incentive fee if such result was lesser than such calculation in effect prior to Jan. 1, 2018. Further, the Advisor will also waive the receipt of up to 25% of the incentive fees accrued for the period commencing on Jan 1, 2018 and ending on Dec. 31, 2018 to the extent necessary to support THL Credit paying a minimum quarterly distribution to the holders of its shares of common stock equal to $0.27 per share for each quarter of THL Credit’s fiscal year ended Dec. 31, 2018. Such incentive fees waived shall not be subject to recoupment.

 

6


On Nov. 7, 2017, THL Credit’s board of directors declared a dividend of $0.27 per share payable on Dec. 29, 2017 to stockholders of record at the close of business on Dec. 15, 2017.

CONFERENCE CALL

THL Credit will host a conference call to discuss these results and its business outlook on November 10, 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 95393307. 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 November 17, 2017, by dialing (855) 859-2056 (domestic) or (404) 537-3406 (international) and entering passcode 95393307. 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.

 

7


THL CREDIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)

(in thousands, except per share data)

 

     September 30, 2017     December 31, 2016  

Assets:

    

Investments at fair value:

    

Non-controlled, non-affiliated investments (cost of $485,847 and $519,837, respectively)

   $ 473,443     $ 501,992  

Controlled investments (cost of $167,062 and $150,765, respectively)

     179,972       167,207  

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

     4       4  

Cash

     3,545       6,376  

Interest, dividends, and fees receivable

     10,562       9,041  

Deferred financing costs

     2,007       2,527  

Deferred tax assets

     5,327       2,442  

Prepaid expenses and other assets

     1,629       1,225  

Due from affiliate

     475       590  
  

 

 

   

 

 

 

Total assets

   $ 676,964     $ 691,404  
  

 

 

   

 

 

 

Liabilities:

    

Loans payable ($187,360 and $182,862 face amounts, respectively, reported net of deferred financing costs of $1,012 and $1,207, respectively.)

   $ 186,348     $ 181,655  

Notes payable ($110,000 and $110,000 face amounts, respectively, reported net of deferred financing costs of $3,153 and $3,653, respectively.)

     106,847       106,347  

Deferred tax liability

     4,944       4,518  

Accrued incentive fees

     1,156       3,243  

Base management fees payable

     2,621       2,608  

Accrued expenses and other payables

     2,054       1,701  

Income taxes payable

     728       —    

Accrued interest and fees

     729       961  

Other deferred liabilities

     141       501  

Interest rate derivative

     —         50  
  

 

 

   

 

 

 

Total liabilities

     305,568       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 September 30, 2017 and December 31, 2016, respectively

     33       33  

Paid-in capital in excess of par

     435,111       437,623  

Net unrealized depreciation on investments, net of provision for taxes of $1,395 and $3,656, respectively

     (2,695     (5,197

Net unrealized depreciation on interest rate derivative

     —         (50

Accumulated net realized losses

     (75,074     (51,732

Accumulated undistributed net investment income

     13,029       8,428  
  

 

 

   

 

 

 

Total net assets attributable to THL Credit, Inc.

     370,404       389,105  

Net assets attributable to non-controlling interest

     992       715  
  

 

 

   

 

 

 

Total net assets

   $ 371,396     $ 389,820  
  

 

 

   

 

 

 

Total liabilities and net assets

   $ 676,964     $ 691,404  
  

 

 

   

 

 

 

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

   $ 11.34     $ 11.82  
  

 

 

   

 

 

 

 

8


THL CREDIT, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

(in thousands, except per share data)

 

     For the three months ended
September 30,
    For the nine months ended
September 30,
 
     2017     2016     2017     2016  

Investment Income:

    

From non-controlled, non-affiliated investments:

    

Interest income

   $ 13,510     $ 16,790     $ 41,245     $ 51,642  

Dividend income

     —         73       139       147  

Other income

     418       443       1,913       1,499  

From non-controlled, affiliated investments:

    

Other income

     279       373       820       1,238  

From controlled investments:

    

Interest income

     2,080       1,164       5,727       2,336  

Dividend income

     3,683       2,685       9,924       7,641  

Other income

     141       38       423       113  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total investment income

     20,111       21,566       60,191       64,616  

Expenses:

    

Interest and fees on borrowings

     4,023       3,484       11,836       10,488  

Base management fees

     2,621       2,678       7,834       8,390  

Incentive fees

     811       2,624       3,276       2,654  

Administrator expenses

     670       888       2,207       2,708  

Other general and administrative expenses

     462       542       1,508       1,720  

Amortization of deferred financing costs

     409       389       1,214       1,157  

Professional fees

     818       350       1,522       1,180  

Directors’ fees

     169       168       518       578  
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses before incentive fee waivers

     9,983       11,123       29,915       28,875  

Incentive fee waiver

     (811     —         (811     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Total expenses, net of incentive fee waivers

     9,172       11,123       29,104       28,875  

Income tax provision (benefit), excise and other taxes

     (215     (52     90       184  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income

     11,154       10,495       30,997       35,557  

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

    

Net realized (loss) gain on investments:

    

Non-controlled, non-affiliated investments

     (11,324     (25,100     (22,230     (27,064

Controlled investments

     —         120       —         (10,767

Foreign currency transactions

     6       —         (68     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized loss on investments

     (11,318     (24,980     (22,298     (37,831
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized (depreciation) appreciation on investments:

    

Non-controlled, non-affiliated investments

     10,421       20,021       5,165       (6,765

Controlled investments

     (5,795     4,654       (3,533     18,983  

Translation of assets and liabilities in foreign currencies

     (869     —         (1,389     —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net change in unrealized appreciation on investments

     3,757       24,675       243       12,218  

Net change in unrealized appreciation attributable to non-controlling interests

     162       —         276       —    
  

 

 

   

 

 

   

 

 

   

 

 

 

Net realized and unrealized loss from investments

     (7,399     (305     (21,779     (25,613

Provision for taxes on realized gain on investments

     (7     —         (842     —    

Benefit (provision) for taxes on unrealized gain on investments

     365       (381     2,261       (588
  

 

 

   

 

 

   

 

 

   

 

 

 

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

     358       (381     1,419       (588

Interest rate derivative periodic interest payments, net

     —         (66     (46     (232

Net change in unrealized appreciation on interest rate derivative

     —         144       50       104  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net increase in net assets resulting from operations

   $ 4,113     $ 9,887     $ 10,641     $ 9,228  
  

 

 

   

 

 

   

 

 

   

 

 

 

Net investment income per common share:

    

Basic and diluted

   $ 0.34     $ 0.32     $ 0.94     $ 1.07  

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

    

Basic and diluted

   $ 0.13     $ 0.30     $ 0.33     $ 0.28  

Dividends declared and paid

   $ 0.27     $ 0.34     $ 0.81     $ 1.02  

Weighted average shares of common stock outstanding:

    

Basic and diluted

     32,722       33,169       32,839       33,235  

 

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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 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.

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

212-366-5300

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