NEW YORK, Dec. 11, 2020 (GLOBE NEWSWIRE) — Medley Capital Company (NYSE: MCC) (the “Firm”) as we speak introduced monetary outcomes for the quarter ended September 30, 2020.
Fourth Quarter Abstract
- Internet asset worth of $150.6 million, or, $55.30 per share, vs. $149.3 million, or, $54.83 per share, at June 30, 2020
- Internet earnings of $0.47 per share
- Internet funding lack of $(0.32) per share
- The board of administrators didn’t declare a dividend this quarter
The entire worth of our investments was $246.7 million at September 30, 2020. Through the quarter ended September 30, 2020, the Firm originated $0.7 million of investments and had $7.0 million of repayments and gross sales, leading to internet repayments and gross sales of $6.3 million. As of September 30, 2020, the Firm had investments in securities of 42 portfolio corporations with roughly 43.2% consisting of senior secured first lien investments, 5.6% consisting of senior secured second lien investments, 1.1% consisting of unsecured debt, 16.6% in MCC Senior Mortgage Technique JV and 33.5% in equities / warrants. As of September 30, 2020, the weighted common yield primarily based upon the price foundation of our earnings bearing portfolio investments, excluding money and money equivalents, was 8.5%.
Outcomes of Operations
For the three months ended September 30, 2020, the Firm reported internet funding loss per share and internet earnings per share of $(0.32) and $0.47, respectively, calculated primarily based upon the weighted common shares excellent.
For the 12 months ended September 30, 2020, the Firm reported internet funding loss per share and internet loss per share of $(1.00) and $(24.16), respectively, calculated primarily based upon the weighted common shares excellent.
For the three months ended September 30, 2020, whole funding earnings was roughly $4.4 million and consisted of $2.8 million of portfolio curiosity earnings, $1.5 million of dividend earnings and $0.1 million of payment earnings.
For the 12 months ended September 30, 2020, whole funding earnings was roughly $21.5 million and consisted of $14.2 million of portfolio curiosity earnings, $6.3 million of dividend earnings, $0.3 million of curiosity from money and money equivalents and $0.7 million of payment earnings.
On June 12, 2020, the Firm entered into an expense help settlement (the “ESA”) with MCC Advisors LLC and Medley LLC, pursuant to which MCC Advisors LLC and Medley LLC agreed (collectively and severally) to cap the administration payment and the entire Firm’s different working bills (besides curiosity bills, sure extraordinary strategic transaction bills, and different bills accredited by the particular committee of the board of administrators) at $667,000 monthly (the “Cap”). The Cap is in impact from June 1, 2020 by way of December 31, 2020.
For the three months ended September 30, 2020, whole bills earlier than the ESA had been roughly $5.6 million and consisted of the next: base administration charges of $1.4 million, curiosity and financing bills of $2.6 million, administrator bills of $0.5 million, unbiased administrators’ charges of $0.5 million, and different common and administrative associated bills of $0.6 million. Through the three months ended September 30, 2020, whole bills topic to the Cap had been $2.0 million, which resulted in $0.3 million of expense help due from MCC Advisors LLC. After taking the ESA into consideration, for the three months ended September 30, 2020, whole bills had been roughly $5.3 million.
For the 12 months ended September 30, 2020, whole bills earlier than the ESA had been roughly $24.9 million and consisted of the next: base administration charges of $6.4 million, curiosity and financing bills of $14.9 million, internet skilled charges of $(4.8) million, administrator bills of $2.2 million, unbiased administrators’ charges of $1.5 million, and different common and administrative associated bills of $4.7 million. Through the 12 months ending September 30, 2020, whole bills topic to the Cap had been $3.0 million, which resulted in $0.7 million of expense help due from MCC Advisors LLC. After taking the ESA into consideration, for the 12 months ended September 30, 2020, whole bills had been roughly $24.2 million.
Internet Funding Revenue/Loss
For the three months ended September 30, 2020, the Firm reported internet funding lack of $(0.9) million, or $(0.32), on a weighted common per share foundation.
For the 12 months ended September 30, 2020, the Firm reported internet funding lack of $(2.7) million, or $(1.00), on a weighted common per share foundation.
Internet Realized and Unrealized Features/Losses
For the three months and 12 months ended September 30, 2020, the Firm reported losses of $(10.2) million and $(50.0) million, respectively.
For the three months and 12 months ended September 30, 2020, the Firm reported unrealized appreciation/(depreciation) of $12.3 million and $(10.6) million, respectively.
For the three months and 12 months ended September 30, 2020, the Firm reported a loss on extinguishment of debt of $0 and $(2.5) million, respectively.
Liquidity and Capital Assets
As of September 30, 2020, the Firm had a money stability of $56.5 million.
As of September 30, 2020, the Firm had $74.0 million excellent in combination principal quantity of 6.50% unsecured notes due 2021 and $77.8 million excellent in combination principal quantity of 6.125% unsecured notes due 2023.
The board of administrators didn’t declare a dividend this quarter.
Medley Capital Company
Consolidated Statements of Belongings and Liabilities
(in 1000’s, besides share and per share knowledge)
|September 30, 2020||September 30, 2019|
|Investments at truthful worth|
|Non-controlled/non-affiliated investments (amortized price of $117,361 and $204,736, respectively)||$||114,322||$||189,895|
|Affiliated investments (amortized price of $92,899 and $108,310, respectively)||84,873||99,540|
|Managed investments (amortized price of $117,875 and $154,601, respectively)||47,549||107,454|
|Whole investments at truthful worth||246,744||396,889|
|Money and money equivalents||56,522||68,245|
|Receivable for inclinations and investments offered||—||419|
|Notes payable (internet of debt issuance prices of $906 and $5,274, respectively)||$||150,961||$||251,732|
|Accounts payable and accrued bills||2,108||11,957|
|Curiosity and costs payable||802||2,905|
|Administration and incentive charges payable||1,392||2,231|
|Administrator bills payable||157||862|
|As a result of affiliate||53||44|
|Frequent inventory, par worth $0.001 per share, 100,000,000 widespread shares approved, 2,723,709 and a couple of,723,709 widespread shares issued and excellent, respectively||$||3||$||3|
|Capital in extra of par worth||672,382||673,584|
|Whole distributable earnings/(loss)||(521,764||)||(457,154||)|
|Whole internet belongings||150,621||216,433|
|Whole liabilities and internet belongings||$||306,104||$||486,267|
|NET ASSET VALUE PER SHARE(1)||$||55.30||$||79.46|
(1) Approved, issued and excellent widespread shares and internet asset worth per share have been adjusted for the durations proven to replicate the one-for-twenty reverseinventory break up effected on July 24, 2020 on a retroactive foundation.
Medley Capital Company
Consolidated Statements of Operations
(in 1000’s, besides share and per share knowledge)
|For the three months
ended September 30
|For the years
ended September 30
|Curiosity from investments|
|Whole curiosity earnings||2,812||5,479||14,195||35,064|
|Curiosity from money and money equivalents||1||200||378||712|
|Whole funding earnings||4,420||8,116||21,522||46,299|
|Base administration charges||1,392||2,231||6,359||11,190|
|Curiosity and financing bills||2,623||5,308||14,935||24,049|
|Skilled charges, internet||29||4,743||(4,768||)||623|
|Common and administrative||145||2,752||3,285||19,323|
|Bills earlier than expense help reimbursement and administration and incentive payment waivers||5,639||16,325||24,952||67,166|
|Expense help reimbursement||(361||)||—||(710||)||—|
|Administration payment waiver||—||—||—||—|
|Whole bills internet of administration and incentive payment waivers||5,278||16,325||24,242||67,166|
|NET INVESTMENT INCOME||(858||)||(8,209||)||(2,720||)||(20,867||)|
|REALIZED AND UNREALIZED GAIN/(LOSS) ON INVESTMENTS|
|Internet realized acquire/(loss) from investments|
|Internet realized acquire/(loss) from investments||(10,212||)||(35,872||)||(49,979||)||(112,173||)|
|Internet unrealized appreciation/(depreciation) on investments|
|Internet unrealized appreciation/(depreciation) on investments||12,294||12,537||(10,633||)||38,498|
|Change in provision for deferred taxes on unrealized (appreciation)/depreciation on investments||50||—||—||—|
|Internet loss on extinguishment of debt||—||(104||)||(2,481||)||(2,033||)|
|Internet realized and unrealized acquire/(loss) on investments||2,132||(23,439||)||(63,093||)||(75,708||)|
|NET INCREASE/(DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS||$||1,274||$||(31,648||)||$||(65,813||)||$||(96,575||)|
|WEIGHTED AVERAGE – BASIC AND DILUTED EARNINGS PER COMMON SHARE(1)||$||0.47||$||(11.62||)||$||(24.63||)||$||(35.46||)|
|WEIGHTED AVERAGE – BASIC AND DILUTED NET INVESTMENT INCOME PER COMMON SHARE(1)||$||(0.32||)||$||(3.01||)||$||(0.68||)||$||(7.66||)|
|WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – BASIC AND DILUTED(1)||2,723,709||2,723,709||2,723,709||2,723,709|
|DIVIDENDS DECLARED PER COMMON SHARE(2)||$||—||$||—||$||—||$||3.00|
(1) Primary and diluted shares has been adjusted for the durations proven to replicate the one-for-twenty reverse inventory break up impacted on July 24, 2020 on a retroactive foundation.
(2) Dividends declared per widespread share has been adjusted for the durations proven to replicate the one-for twenty reverse inventory break up effected on July 24, 2020 on a retroactive foundation.
ABOUT MEDLEY CAPITAL CORPORATION
Medley Capital Company is a closed-end, externally managed enterprise improvement firm (“BDC”) that has widespread inventory which trades on the New York Inventory Alternate (NYSE: MCC) and has an impressive bond which trades on the New York Inventory Alternate beneath the image (NYSE: MCV). Medley Capital Company’s funding goal is to generate present earnings and capital appreciation by lending to privately-held center market corporations, primarily by way of straight originated transactions, to assist these corporations increase their companies, refinance and make acquisitions. Our portfolio typically consists of senior secured first lien loans and senior secured second lien loans. Medley Capital Company is externally managed by MCC Advisors LLC, which is an funding adviser registered beneath the Funding Advisers Act of 1940, as amended. For extra info, please go to Medley Capital Company at www.medleycapitalcorp.com.
ABOUT MCC ADVISORS LLC
MCC Advisors LLC is a subsidiary of Medley Administration Inc. (NYSE: MDLY, “Medley”). Medley is another asset administration agency providing yield options to retail and institutional traders. Medley’s nationwide direct origination franchise is a premier supplier of capital to the center market within the U.S. Medley has $3.4 billion of belongings beneath administration in two enterprise improvement corporations, Medley Capital Company (NYSE: MCC) and Sierra Revenue Company, and several other non-public funding automobiles. Over the previous 18 years, we have now offered capital to over 400 corporations throughout 35 industries in North America.1 For extra info, please go to Medley Administration Inc. at www.mdly.com.
This press launch comprises “forward-looking” statements, together with statements relating to the impression of the ESA. Such forward-looking statements replicate present views with respect to future occasions and monetary efficiency, and the Firm could make associated oral forward-looking statements on or following the date hereof. Statements that embody the phrases “ought to,” “would,” “count on,” “intend,” “plan,” “imagine,” “challenge,” “anticipate,” “search,” “will,” and related statements of a future or forward-looking nature determine forward-looking statements on this materials or related oral statements for functions of the U.S. federal securities legal guidelines or in any other case. Ahead-looking statements embody, however usually are not restricted to, the introduction, withdrawal, success and timing of enterprise initiatives and methods; modifications in political, financial or trade situations, the rate of interest atmosphere or situations affecting the monetary and capital markets, which may lead to modifications within the worth of our belongings; the relative and absolute funding efficiency and operations of MCC Advisors LLC; our enterprise prospects and the prospects of our portfolio corporations; the uncertainty relating to precise stage of bills the Firm incurs that might not be materially decrease than present bills on account of quite a lot of components, akin to surprising bills not lined by the ESA; and uncertainties related to the impression from the COVID-19 pandemic, together with its impression on the worldwide and U.S. capital markets and the worldwide and U.S. economic system, the size and period of the COVID-19 outbreak in the US in addition to worldwide and the magnitude of the financial impression of that outbreak, the impact of the COVID-19 pandemic on our enterprise prospects and the operational and monetary efficiency of our portfolio corporations, together with our and their potential to attain their respective aims, and the impact of the disruptions attributable to the COVID-19 pandemic on our potential to proceed to successfully handle our enterprise.
The foregoing overview of vital components shouldn’t be construed as exhaustive and needs to be learn along side the opposite cautionary statements which can be included within the “Threat Components” and different sections of the Firm’s most up-to-date Annual Report on Kind 10-Okay. The forward-looking statements on this press launch symbolize the Firm’s views as of the date of hereof. The Firm anticipates that subsequent occasions and developments will trigger its views to alter. Nevertheless, whereas the Firm could elect to replace these forward-looking statements sooner or later sooner or later, the Firm doesn’t have any present intention of doing so besides to the extent required by relevant regulation. It’s best to, due to this fact, not depend on these forward-looking statements as representing the Firm’s views as of any date subsequent to the date of this materials.
SOURCE: Medley Capital Company
Investor Relations Contact:
Head of Capital Markets & Threat Administration
Medley Administration Inc.
Jonathan Gasthalter/Nathaniel Garnick
Gasthalter & Co. LP
1 Medley Administration Inc. is the mum or dad firm of Medley LLC and several other registered funding advisors (collectively, “Medley”). Belongings beneath administration refers to belongings of Medley’s funds, which represents the sum of the online asset worth of such funds, the drawn and undrawn debt (on the fund stage, together with quantities topic to restrictions) and uncalled dedicated capital (together with commitments to funds which have but to start their funding durations). Belongings beneath administration are as of September 30, 2020.