American Capital Senior Floating Reports Net Investment Income for the Fourth Quarter and Year Ended December 31 …

NEW YORK–(BUSINESS WIRE)–

American Capital Senior Floating, Ltd. (“ACSF” or the “Company”) (ACSF) today reported net investment income of $2.8 million, or $0.28 per share, and net earnings of $7.7 million, or $0.77 per share, for the quarter ended December31, 2016. ACSF reported net investment income of $11.8 million, or $1.18 per share, and net earnings of $30.5 million, or $3.05 per share, for the year ended December31, 2016 and net asset value (“NAV”) of $136.8 million, or $13.68 per share, as of December31, 2016.

FOURTH QUARTER 2016 FINANCIAL HIGHLIGHTS

  • Investing activities
    • Invested $34.9 million into 20 new obligors
    • Sold $10.1 million of investments and received $17.4 million of repayments, including distributions received from our collateralized loan obligations (“CLOs”)
  • Invested $34.9 million into 20 new obligors
  • Sold $10.1 million of investments and received $17.4 million of repayments, including distributions received from our collateralized loan obligations (“CLOs”)
  • Net investment income of $0.28 per share, or $2.8 million
    • Decreased $0.03 per share from Q3 2016 net investment income of $0.31 per share
  • Decreased $0.03 per share from Q3 2016 net investment income of $0.31 per share
  • Net earnings of $0.77 per share, or $7.7 million
    • Decreased $0.26 per share from Q3 2016 net earnings of $1.03 per share due to lower net unrealized appreciation in Q4 2016 as compared to Q3 2016
  • Decreased $0.26 per share from Q3 2016 net earnings of $1.03 per share due to lower net unrealized appreciation in Q4 2016 as compared to Q3 2016
  • NAV of $13.68 per share, or $136.8 million as of December31, 2016
    • $0.48 per share increase from September30, 2016 NAV per share of $13.20
  • $0.48 per share increase from September30, 2016 NAV per share of $13.20
  • Monthly cash distributions to stockholders of $0.097 per share ($0.291 for the quarter)
    • 8.5% annualized yield on the December31, 2016 NAV per share
    • 9.8% annualized yield on the December31, 2016 closing market price of $11.90 per share
  • 8.5% annualized yield on the December31, 2016 NAV per share
  • 9.8% annualized yield on the December31, 2016 closing market price of $11.90 per share
  • $244.9 million investment portfolio at fair value as of December31, 2016
    • $188.1 million, or 77%, in first lien floating rate loans
    • $15.5 million, or 6%, in second lien floating rate loans
    • $41.3 million, or 17%, of equity in CLOs
  • $188.1 million, or 77%, in first lien floating rate loans
  • $15.5 million, or 6%, in second lien floating rate loans
  • $41.3 million, or 17%, of equity in CLOs
  • 6.50% investment portfolio yield at cost as of December31, 2016
  • 2.76% cost of funds as of December31, 2016
  • 0.77x debt to equity ratio as of December31, 2016

YEAR ENDED 2016 FINANCIAL HIGHLIGHTS

  • Investing activities
    • Invested $94.3 million into 64 new loan obligors and 3 new CLO equity positions
    • Sold $44.8 million of investments and received $59.4 million of repayments, including distributions received from our CLOs
  • Invested $94.3 million into 64 new loan obligors and 3 new CLO equity positions
  • Sold $44.8 million of investments and received $59.4 million of repayments, including distributions received from our CLOs
  • Net investment income of $1.18 per share, or $11.8 million
    • Decreased $0.09 per share from 2015 net investment income of $1.27 per share
  • Decreased $0.09 per share from 2015 net investment income of $1.27 per share
  • Net earnings of $3.05 per share, or $30.5 million
    • $4.52 per share improvement from the 2015 net loss from operations of ($1.47) per share
  • $4.52 per share improvement from the 2015 net loss from operations of ($1.47) per share
  • Cash distributions to stockholders of $1.164 per share declared in 2016

Strong technical conditions in the leveraged loan and CLO markets contributed to ACSF’s strong portfolio performance and earnings during the fourth quarter and full year 2016,” said Kevin Braddish, President and Chief Executive Officer. “Going forward, we believe we are well positioned to use the benefits of the Ivy Hill platform and its access to the Ares Management platform to manage ACSF’s investment portfolio and navigate changing market conditions.”

PORTFOLIO AND INVESTMENT ACTIVITY

As of December31, 2016, the fair value of ACSF’s portfolio totaled $244.9 million and was comprised of $188.1 million, or 77%, of first lien floating rate loans, $15.5 million, or 6%, of second lien floating rate loans (collectively, the “Loan Portfolio”) and $41.3 million (or 17%) of CLO equity (the “CLO Portfolio” and, together with the Loan Portfolio, the “Investment Portfolio”).

As of December31, 2016, ACSF’s Loan Portfolio was diversified across 149 issuers and 45 industries and its CLO Portfolio was invested in 21 issuers across 15 different collateral managers. The following table depicts the Investment Portfolio activity by investment type for the quarter ended December31, 2016: