Home | Business News | Browse by Publication | B | Business Wire

BlackRock Kelso Capital Corporation Doubles Dividend to $0.32 per Share, Announces September 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 fourth quarter dividend of $0.32 per share payable on January 4, 2010 to stockholders of record as of December 21, 2009. The amount of this dividend represents an increase of $0.16 per share over the Company's $0.16 per share third quarter dividend.

The increase in the dividend marks a return to the Company's practice of distributing to its stockholders an amount that is more reflective of its net investment income.* Earlier this year and in light of the previously unsettled economic conditions, the Company had taken the conservative step of temporarily reducing its dividend to preserve operating flexibility. The Company's recent operating results warrant a return to the previous dividend policy. In addition, the Company expects to carry forward to 2010 any 2009 taxable income in excess of 2009 distributions.

James R. Maher, Chairman and Chief Executive Officer of BlackRock Kelso Capital, commented: "We are pleased that our operating results and strong balance sheet have enabled us to increase the amount of our dividend distributions to stockholders. There are attractive investment opportunities available in the middle-market and a dwindling number of capital providers to middle-market companies. We are excited to have the capital resources and disciplined investment process in place to take advantage of these opportunities."

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

[TABLE OMITTED] [TABLE OMITTED] [TABLE OMITTED]

Portfolio and Investment Activity

During the three months ended September 30, 2009, we invested $11.0 million across five existing portfolio companies. This compares to investing $8.7 million across existing portfolio companies for the three months ended September 30, 2008. Sales and repayments of investment principal totaled $28.3 million during the three months ended September 30, 2009, versus $60.6 million during the three months ended September 30, 2008.

At September 30, 2009, our portfolio consisted of 60 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 and cash equivalents. This compares to 57% in senior secured loans, 29% in unsecured or subordinated debt securities, 5% in senior secured notes, 3% in equity investments and 6% in cash and cash equivalents at September 30, 2008. Our average portfolio company investment at amortized cost was approximately $19.1 million at September 30, 2009, versus $19.8 million at September 30, 2008. At September 30, 2009, 2.4% of our total debt investments at fair value (or 5.5% 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 10.9% at September 30, 2009 and 11.9% at...