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BlackRock Kelso Capital Corporation Declares Regular Third Quarter Dividend of $0.16 Per Share, Announces June 30, 2009 Quarterly Financial Results.

Article Excerpt
NEW YORK -- BlackRock Kelso Capital Corporation (NASDAQ:BKCC) ("BlackRock Kelso Capital" or the "Company") announced today that its Board of Directors has declared a third quarter dividend of $0.16 per share payable on October 2, 2009 to stockholders of record as of September 18, 2009.

BlackRock Kelso Capital also announced financial results for the quarter ended June 30, 2009.

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Portfolio and Investment Activity

During the three months ended June 30, 2009, we invested $11.9 million across two existing portfolio companies. This compares to investing $80.0 million across two new and three existing portfolio companies for the three months ended June 30, 2008. Sales and repayments of investment principal totaled $43.2 million during the three months ended June 30, 2009 versus $23.5 million during the three months ended June 30, 2008.

At June 30, 2009, our portfolio consisted of 62 portfolio companies and was invested 59% in senior secured loans, 31% in unsecured or subordinated debt securities, 6% in senior secured notes, 4% in equity investments and less than 1% in cash equivalents and foreign currency. This compares to 60% in senior secured loans, 31% in unsecured or subordinated debt securities, 5% in senior secured notes, 4% in equity investments and less than 1% in cash equivalents and foreign currency at June 30, 2008. Our average portfolio company investment at amortized cost was approximately $19.6 million at June 30, 2009, versus $20.0 million at June 30, 2008. At June 30, 2009, 1.7% of our total debt investments at fair value (or 6.9% at amortized cost) were on non-accrual status.

The weighted average yields of the debt and income producing equity securities in our portfolio at their current cost basis were 10.4% at June 30, 2009 and 11.3% at June 30, 2008. The weighted average yields on our senior secured loans and other debt securities at their current cost basis were 9.8% and 12.1%, respectively, at June 30, 2009, versus 10.3% and 12.8% at June 30, 2008. Yields exclude common equity investments, preferred equity investments with no stated dividend rate, short-term investments, cash equivalents and foreign currency.

At June 30, 2009, we had $1.8 million in cash equivalents and $169.0 million available under our senior secured, multi-currency credit facility.

Results of Operations

Results comparisons are for the three and six months ended June 30, 2009 and 2008.

Investment Income

Investment income totaled $33.4 million and $65.3 million, respectively, for the three and six months ended June 30, 2009, compared to $34.9 million and $70.6 million for the three and six months ended June 30, 2008. The decrease in investment income for the three and six months ended June 30, 2009 primarily reflects the impact of...

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