Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

x

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

 

FOR THE QUARTER ENDED SEPTEMBER 30, 2008

 

 

o

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

COMMISSION FILE NUMBER: 000-51233

 

GLADSTONE INVESTMENT CORPORATION

(Exact name of registrant as specified in its charter)

 

DELAWARE

 

83-0423116

(State or other jurisdiction of incorporation or organization)

 

(I.R.S. Employer Identification No.)

 

1521 WESTBRANCH DRIVE, SUITE 200

MCLEAN, VIRGINIA 22102

(Address of principal executive office)

 

(703) 287-5800

(Registrant’s telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o.

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer,” and “smaller reporting company” in Rule
12 b-2 of the Exchange Act.

 

Large accelerated filer o  Accelerated filer x  Non-accelerated filer o Smaller reporting company o.

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
Yes 
o  No x .

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. The number of shares of the issuer’s Common Stock, $0.001 par value, outstanding as of October 31, 2008 were 22,080,133.

 

 

 



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

 

TABLE OF CONTENTS

 

PART I.

FINANCIAL INFORMATION

 

 

 

 

Item 1.

Financial Statements (Unaudited)

 

 

 

 

 

Condensed Consolidated Statements of Assets and Liabilities as of September 30, 2008 and March 31, 2008

3

 

Condensed Consolidated Schedules of Investments as of September 30, 2008 and March 31, 2008

4

 

Condensed Consolidated Statements of Operations for the three and six months ended September 30, 2008 and 2007

10

 

Condensed Consolidated Statements of Changes in Net Assets for the six months ended September 30, 2008 and 2007

11

 

Condensed Consolidated Statements of Cash Flows for the six months ended September 30, 2008 and 2007

12

 

Financial Highlights for the three and six months ended September 30, 2008 and 2007

13

 

Notes to Condensed Consolidated Financial Statements

14

 

 

 

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

26

 

Overview

26

 

Results of Operations

32

 

Liquidity and Capital Resources

38

 

 

 

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

41

 

 

 

Item 4.

Controls and Procedures

41

 

 

 

PART II.

OTHER INFORMATION

 

 

 

 

Item 1.

Legal Proceedings

41

 

 

 

Item 1A.

Risk Factors

41

 

 

 

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

42

 

 

 

Item 3.

Defaults Upon Senior Securities

42

 

 

 

Item 4.

Submission of Matters to a Vote of Security Holders

42

 

 

 

Item 5.

Other Information

43

 

 

 

Item 6.

Exhibits

43

 

 

 

SIGNATURES

43

 

2



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

September 30,

 

March 31,

 

 

 

2008

 

2008

 

ASSETS

 

 

 

 

 

Non-Control/Non-Affiliate investments (Cost 9/30/08: $139,536; Cost 3/31/08:$166,416)

 

$

115,133

 

$

142,739

 

Control investments (Cost 9/30/08: $144,221; Cost 3/31/08: $138,354)

 

157,246

 

145,407

 

Affiliate investments (Cost 9/30/08: $63,846; Cost 3/31/08: $46,035)

 

53,877

 

47,458

 

Total investments at fair value (Cost 9/30/08: $347,603; Cost 3/31/08: $350,805)

 

326,256

 

335,604

 

Cash and cash equivalents

 

33,900

 

9,360

 

Interest receivable

 

1,353

 

1,662

 

Prepaid insurance

 

204

 

90

 

Deferred finance costs

 

46

 

324

 

Due from Custodian

 

3,048

 

4,399

 

Due from Adviser (Refer to Note 4)

 

 

89

 

Other assets

 

456

 

765

 

TOTAL ASSETS

 

$

365,263

 

$

352,293

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

Fee due to Administrator (Refer to Note 4)

 

$

212

 

$

208

 

Fee due to Adviser (Refer to Note 4)

 

27

 

 

Borrowings under line of credit

 

130,965

 

144,835

 

Accrued expenses

 

549

 

716

 

Other liabilities

 

102

 

89

 

TOTAL LIABILITIES

 

131,855

 

145,848

 

NET ASSETS

 

$

233,408

 

$

206,445

 

 

 

 

 

 

 

ANALYSIS OF NET ASSETS:

 

 

 

 

 

Common stock, $0.001 par value, 100,000,000 shares authorized, 22,080,133 and 16,560,100 shares issued and outstanding at September 30, 2008 and March 31, 2008, respectively

 

$

22

 

$

17

 

Capital in excess of par value

 

264,814

 

224,173

 

Net unrealized depreciation of investment portfolio

 

(21,346

)

(15,201

)

Net unrealized depreciation of derivative

 

(53

)

(53

)

Accumulated net investment loss

 

(10,029

)

(2,491

)

TOTAL NET ASSETS

 

$

233,408

 

$

206,445

 

 

 

 

 

 

 

 

 

NET ASSETS PER SHARE

 

$

10.57

 

$

12.47

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

3



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF SEPTEMBER 30, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

NON-CONTROL/NON-AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Senior Syndicated Loans:

 

 

 

 

 

 

 

 

 

Activant Solutions, Inc.

 

Service - enterprise software and services

 

Senior Term Debt (4.8%, Due 5/2013) (3)

 

$

1,673

 

$

1,332

 

Advanced Homecare Holdings, Inc.

 

Service - home health nursing services

 

Senior Term Debt (7.5%, Due 8/2014) (3)

 

2,962

 

2,607

 

Aeroflex, Inc.

 

Service - provider of highly specialized electronic equipment

 

Senior Term Debt (6.1%, Due 8/2014) (3)

 

1,895

 

1,782

 

Compsych Investments Corp.

 

Service - employee assistance programs

 

Senior Term Debt (6.5%, Due 2/2012) (3), (5)

 

3,277

 

2,940

 

CRC Health Group, Inc.

 

Service - substance abuse treatment

 

Senior Term Debt (6.0%, Due 2/2012) (3)

 

7,838

 

6,350

 

Critical Homecare Solutions, Inc.

 

Service - home therapy and respiratory treatment

 

Senior Term Debt (6.5%, Due 1/2012) (3), (5)

 

4,447

 

4,178

 

Generac Acquisition Corp.

 

Manufacturing - standby power products

 

Senior Term Debt (5.3%, Due 11/2013) (3), (5)

 

6,868

 

4,743

 

Graham Packaging Holdings Company

 

Manufacturing - plastic containers

 

Senior Term Debt (5.1%, Due 10/2011) (3)

 

3,408

 

2,999

 

Hargray Communications Group, Inc.

 

Service - triple-play (cable, phone, internet) provider

 

Senior Term Debt (6.0%, Due 6/2014) (3)

 

897

 

783

 

HMTBP Acquisition II Corp.

 

Service - aboveground storage tanks

 

Senior Term Debt (5.8%, Due 5/2014) (3), (5)

 

3,858

 

3,549

 

Huish Detergents, Inc.

 

Manufacturing - household cleaning products

 

Senior Term Debt (5.8%, Due 4/2014) (3)

 

1,976

 

1,699

 

Hyland Software, Inc.

 

Service - provider of enterprise content management software

 

Senior Term Debt (5.6%, Due 7/2013) (3)

 

3,929

 

3,564

 

Interstate Fibernet, Inc.

 

Service - provider of voice and data telecommunications services

 

Senior Term Debt (7.8%, Due 7/2013) (3)

 

9,886

 

8,635

 

KIK Custom Products, Inc.

 

Manufacturing - consumer products

 

Senior Term Debt (5.5%, Due 5/2014) (3)

 

3,961

 

2,732

 

Kronos, Inc.

 

Service - workforce management solutions

 

Senior Term Debt (6.0%, Due 6/2014) (3)

 

1,961

 

1,706

 

Local TV Finance, LLC

 

Service - television station operator

 

Senior Term Debt (4.9%, Due 5/2013) (3)

 

990

 

839

 

LVI Services, Inc.

 

Service - asbestos and mold remediation

 

Senior Term Debt (8.6%, Due 11/2010) (3), (5)

 

5,950

 

4,275

 

MedAssets, Inc.

 

Service - pharmaceuticals and healthcare GPO

 

Senior Term Debt (7.5%, Due 10/2013) (3), (5)

 

3,983

 

3,703

 

Network Solutions, LLC

 

Service - internet domain solutions

 

Senior Term Debt (5.2%, Due 3/2014) (3)

 

8,673

 

6,764

 

Open Solutions, Inc.

 

Service - software outsourcing for financial institutions

 

Senior Term Debt (5.1%, Due 1/2014) (3)

 

2,670

 

1,806

 

Ozburn-Hessey Holding Co. LLC

 

Service - third party logistics

 

Senior Term Debt (6.6%, Due 8/2012) (3)

 

7,575

 

6,469

 

Pinnacle Foods Finance, LLC

 

Manufacturing - branded food products

 

Senior Term Debt (5.4%, Due 4/2014) (3)

 

1,960

 

1,705

 

PTS Acquisition Corp.

 

Manufacturing - drug delivery and packaging technologies

 

Senior Term Debt (6.0%, Due 4/2014) (3)

 

6,912

 

6,360

 

QTC Acquisition, Inc.

 

Service - outsourced disability evaluations

 

Senior Term Debt (6.0%, Due 11/2012) (3)

 

1,919

 

1,649

 

Radio Systems Corporation

 

Service - design electronic pet containment products

 

Senior Term Debt (5.6%, Due 9/2013) (3)

 

1,881

 

1,768

 

Rally Parts, Inc.

 

Manufacturing - aftermarket motorcycle parts and accessories

 

Senior Term Debt (6.3%, Due 11/2013) (3)

 

2,472

 

1,548

 

RPG Holdings, Inc.

 

Manufacturing and design - greeting cards

 

Senior Term Debt (non-accrual) (3)

 

4,553

 

2,048

 

SafeNet, Inc.

 

Service - chip encryption products

 

Senior Term Debt (5.8%, Due 4/2014) (3)

 

2,964

 

2,252

 

SGS International, Inc.

 

Service - digital imaging and graphics

 

Senior Term Debt (6.3%, Due 12/2011) (3)

 

1,476

 

1,353

 

Survey Sampling, LLC

 

Service - telecommunications-based sampling

 

Senior Term Debt (9.0%, Due 5/2011) (3), (5)

 

2,702

 

2,331

 

Triad Laboratory Alliance, LLC

 

Service - regional medical laboratories

 

Senior Term Debt (7.3%, Due 12/2011) (3), (5)

 

4,143

 

3,677

 

Wastequip, Inc.

 

Service - process and transport waste materials

 

Senior Term Debt (6.0%, Due 2/2013) (3)

 

2,907

 

2,180

 

WaveDivision Holdings, LLC

 

Service - cable

 

Senior Term Debt (5.8%, Due 6/2014) (3), (5)

 

1,915

 

1,796

 

West Corporation

 

Service - business process outsourcing

 

Senior Term Debt (5.8%, Due 10/2013) (3)

 

3,340

 

2,538

 

Subtotal - Senior Syndicated Loans

 

 

 

 

 

$

127,821

 

$

104,660

 

 

 

 

 

 

 

 

 

 

 

Non-Syndicated Loans

 

 

 

 

 

 

 

 

 

B-Dry, LLC

 

Service - basement waterproofer

 

Revolving Credit Facility, $-0- available (6.7%, Due 10/2009)

 

$

750

 

$

688

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014) (5)

 

6,715

 

6,161

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014) (5)

 

3,950

 

3,624

 

 

 

 

 

Common Stock Warrants (4)

 

300

 

 

 

 

 

 

 

 

11,715

 

10,473

 

 

 

 

 

 

 

 

 

 

 

Total Non-Control/Non-Affiliate Investments

 

 

 

$

139,536

 

$

115,133

 

 

4



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF SEPTEMBER 30, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

CONTROL INVESTMENTS

 

 

 

 

 

 

 

A. Stucki Holding Corp.

 

Manufacturing - railroad freight car products

 

Senior Term Debt (7.0%, Due 3/2012)

 

$

12,319

 

$

12,319

 

 

 

 

 

Senior Term Debt (9.2%, Due 3/2012) (6)

 

10,725

 

10,725

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 3/2014)

 

8,586

 

8,586

 

 

 

 

 

Preferred Stock (4)

 

4,387

 

4,938

 

 

 

 

 

Common Stock (4)

 

130

 

12,438

 

 

 

 

 

 

 

36,147

 

49,006

 

 

 

 

 

 

 

 

 

 

 

Acme Cryogenics, Inc.

 

Manufacturing - manifolds and pipes for industrial gasses

 

Senior Subordinated Term Debt (11.5%, Due 3/2013)

 

14,500

 

14,500

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,984

 

7,873

 

 

 

 

 

Common Stock (4)

 

1,045

 

 

 

 

 

 

Common Stock Warrants (4)

 

25

 

 

 

 

 

 

 

 

22,554

 

22,373

 

 

 

 

 

 

 

 

 

 

 

ASH Holdings Corp.

 

Retail and Service - school buses and parts

 

Revolver, $400 available (non-accrual, Due 3/2010)

 

1,600

 

 

 

 

 

 

Senior Subordinated Term Debt (non-accrual, Due 1/2012)

 

5,250

 

 

 

 

 

 

Preferred Stock (4)

 

2,500

 

 

 

 

 

 

Common Stock Warrants (4)

 

4

 

 

 

 

 

 

 

 

9,354

 

 

 

 

 

 

 

 

 

 

 

 

Cavert II Holding Corp.

 

Manufacturing - bailing wire

 

Revolving Credit Facility, $300 available (8.0%, Due 10/2010)

 

2,700

 

2,700

 

 

 

 

 

Senior Term Debt (8.3%, Due 10/2012)

 

6,012

 

6,013

 

 

 

 

 

Senior Term Debt (10.0%, Due 10/2012) (6)

 

3,000

 

3,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 10/2014)

 

4,670

 

4,671

 

 

 

 

 

Preferred Stock (4)

 

4,110

 

4,416

 

 

 

 

 

Common Stock (4)

 

69

 

1,407

 

 

 

 

 

 

 

20,561

 

22,207

 

 

 

 

 

 

 

 

 

 

 

Chase II Holdings Corp.

 

Manufacturing - traffic doors

 

Revolving Credit Facility, $605 available (6.5%, Due 3/2008)

 

3,895

 

3,895

 

 

 

 

 

Senior Term Debt (8.8%, Due 3/2011)

 

9,350

 

9,350

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2011) (6)

 

7,760

 

7,760

 

 

 

 

 

Senior Subordinated Term Debt (13.0%, Due 3/2013)

 

6,168

 

6,168

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,961

 

8,877

 

 

 

 

 

Common Stock (4)

 

61

 

6,200

 

 

 

 

 

 

 

34,195

 

42,250

 

 

 

 

 

 

 

 

 

 

 

Galaxy Tool Holding Corp.

 

Manufacturing - aerospace and plastics

 

Senior Subordinated Term Debt (13.5%, Due 8/2013) (7)

 

17,250

 

17,250

 

 

 

 

 

Preferred Stock (4), (7)

 

4,112

 

4,112

 

 

 

 

 

Common Stock (4), (7)

 

48

 

48

 

 

 

 

 

 

 

21,410

 

21,410

 

 

 

 

 

 

 

 

 

 

 

Total Control Investments

 

$

144,221

 

$

157,246

 

 

5



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF SEPTEMBER 30, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Danco Acquisition Corp.

 

Manufacturing - machining and sheet metal work

 

Revolving Credit Facility, $2,600 available (9.3%, Due 10/2010)

 

$

400

 

$

378

 

 

 

 

 

Senior Term Debt (9.3%, Due 10/2012) (5)

 

5,325

 

5,059

 

 

 

 

 

Senior Term Debt (11.5%, Due 4/2013) (5)

 

9,157

 

8,653

 

 

 

 

 

Redeemable Preferred Stock (4)

 

2,500

 

2,678

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

871

 

 

 

 

 

 

 

17,385

 

17,639

 

 

 

 

 

 

 

 

 

 

 

Mathey Investments, Inc.

 

Manufacturing - pipe-cutting and pipe-fitting equipment

 

Revolving Credit Facility, $2,000 available (9.0%, Due 3/2011)

 

 

 

 

 

 

 

Senior Term Debt (9.0%, Due 3/2013) (5)

 

2,437

 

2,413

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2014) (5), (6)

 

7,263

 

7,191

 

 

 

 

 

Common Stock (4)

 

500

 

520

 

 

 

 

 

Common Stock Warrants (4)

 

277

 

303

 

 

 

 

 

 

 

10,477

 

10,427

 

 

 

 

 

 

 

 

 

 

 

Noble Logistics, Inc.

 

Service - aftermarket auto parts delivery

 

Revolving Credit Facility, $-0- available (8.5%, Due 12/2009)

 

2,000

 

1,740

 

 

 

 

 

Senior Term Debt (10.5%, Due 12/2011) (5)

 

5,902

 

5,135

 

 

 

 

 

Senior Term Debt (12.5%, Due 3/2011) (5), (6)

 

7,000

 

5,880

 

 

 

 

 

Senior Subordinated Term Debt (12.5%, Due 7/2008) (5)

 

500

 

498

 

 

 

 

 

Preferred Stock (4)

 

1,932

 

 

 

 

 

 

Common Stock (4)

 

1,500

 

 

 

 

 

 

 

 

18,834

 

13,253

 

 

 

 

 

 

 

 

 

 

 

Quench Holdings Corp.

 

Service - sales, installation and service of water coolers

 

Senior Subordinated Term Debt (10.0%, Due 8/2013) (5)

 

8,000

 

4,400

 

 

 

 

 

Preferred Stock (4)

 

2,950

 

2,379

 

 

 

 

 

Common Stock Warrants (4)

 

447

 

 

 

 

 

 

 

 

11,397

 

6,779

 

 

 

 

 

 

 

 

 

 

 

Tread Corp.

 

Service - regional medical laboratories

 

Senior Term Debt (12.5%, Due 5/2013) (5)

 

5,000

 

4,938

 

 

 

 

 

Preferred Stock (4)

 

750

 

772

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

69

 

 

 

 

 

 

 

5,753

 

5,779

 

 

 

 

 

 

 

 

 

 

 

Total Affiliate Investments

 

 

 

 

 

$

63,846

 

$

53,877

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

$

347,603

 

$

326,256

 

 


(1)

 

Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company.

(2)

 

Percentage represents the weighted average interest rates in effect at September 30, 2008, and due date represents the contractual maturity date.

(3)

 

Marketable securities, such as syndicated loans, are valued based on the indicative bid price on or near September 30, 2008, offered by the respective syndication agent’s trading desk, or secondary desk.

(4)

 

Security is non-income producing.

(5)

 

Fair value based on opinions of value submitted by Standard & Poor’s Securities Evaluations, Inc. at September 30, 2008.

(6)

 

Last Out Tranche of senior debt, meaning if the portfolio company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(7)

 

Valued at cost due to recent acquisition.

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

6



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

NON-CONTROL/NON-AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Senior Syndicated Loans:

 

 

 

 

 

 

 

 

 

Activant Solutions, Inc.

 

Service - enterprise software and services

 

Senior Term Debt (6.7%, Due 5/2013) (3)

 

$

1,734

 

$

1,478

 

Advanced Homecare Holdings, Inc.

 

Service - home health nursing services

 

Senior Term Debt (6.4%, Due 8/2014) (3)

 

2,977

 

2,829

 

Aeroflex, Inc.

 

Service - provider of highly specialized electronic equipment

 

Senior Term Debt (6.4%, Due 8/2014) (3)

 

1,898

 

1,851

 

Compsych Investments Corp.

 

Service - employee assistance programs

 

Senior Term Debt (5.5%, Due 2/2012) (3), (5)

 

3,421

 

2,965

 

CRC Health Group, Inc.

 

Service – substance abuse treatment

 

Senior Term Debt (4.9%, Due 2/2012) (3)

 

9,878

 

8,536

 

Critical Homecare Solutions, Inc.

 

Service - home therapy and respiratory treatment

 

Senior Term Debt (6.1%, Due 1/2012) (3), (5)

 

4,505

 

4,480

 

Dealer Computer Services, Inc.

 

Manufacturing & Service - systems for automotive retailers

 

Senior Term Debt (6.8%, Due 9/2013) (3)

 

1,799

 

1,595

 

Generac Acquisition Corp.

 

Manufacturing - standby power products

 

Senior Term Debt (7.2%, Due 11/2013) (3), (5)

 

6,874

 

5,435

 

Graham Packaging Holdings Company

 

Manufacturing - plastic containers

 

Senior Term Debt (5.9%, Due 10/2011) (3)

 

5,420

 

4,938

 

Hargray Communications Group, Inc.

 

Service - triple-play (cable, phone, internet) provider

 

Senior Term Debt (4.9%, Due 6/2014) (3)

 

963

 

860

 

HMTBP Acquisition II Corp.

 

Service - aboveground storage tanks

 

Senior Term Debt (4.9%, Due 5/2014) (3), (5)

 

3,878

 

3,529

 

Hudson Products Holdings, Inc.

 

Manufacturing - heat transfer solutions

 

Senior Term Debt (7.0%, Due 12/2013) (3)

 

6,020

 

5,283

 

Huish Detergents, Inc.

 

Manufacturing - household cleaning products

 

Senior Term Debt (4.7%, Due 4/2014) (3)

 

1,986

 

1,652

 

Hyland Software, Inc.

 

Service - provider of enterprise content management software

 

Senior Term Debt (5.9%, Due 7/2013) (3)

 

3,955

 

3,671

 

Interstate Fibernet, Inc.

 

Service - provider of voice and data telecommunications services

 

Senior Term Debt (6.7%, Due 7/2013) (3)

 

9,932

 

9,676

 

KIK Custom Products, Inc.

 

Manufacturing - consumer products

 

Senior Term Debt (4.9%, Due 5/2014) (3)

 

3,981

 

2,746

 

Kronos, Inc.

 

Service - workforce management solutions

 

Senior Term Debt (5.0%, Due 6/2014) (3)

 

1,971

 

1,577

 

Lexicon Marketing USA, Inc.

 

Service - marketing to Hispanic community

 

Senior Term Debt (non-accrual) (3), (5)

 

2,947

 

412

 

Local TV Finance, LLC

 

Service - television station operator

 

Senior Term Debt (5.2%, Due 5/2013) (3)

 

995

 

824

 

LVI Services, Inc.

 

Service - asbestos and mold remediation

 

Senior Term Debt (7.5%, Due 11/2010) (3), (5)

 

6,369

 

5,083

 

MedAssets, Inc.

 

Service - pharmaceuticals and healthcare GPO

 

Senior Term Debt (5.2%, Due 10/2013) (3), (5)

 

4,004

 

3,702

 

National Mentor Holdings, Inc.

 

Service - home health care

 

Senior Term Debt (4.8%, Due 6/2013) (3)

 

1,968

 

1,672

 

Network Solutions, LLC

 

Service - internet domain solutions

 

Senior Term Debt (5.2%, Due 3/2014) (3)

 

9,196

 

7,355

 

NPC International Inc.

 

Service - Pizza Hut franchisee

 

Senior Term Debt (4.7%, Due 5/2013) (3)

 

2,895

 

2,537

 

Open Solutions, Inc.

 

Service - software outsourcing for financial institutions

 

Senior Term Debt (5.8%, Due 1/2014) (3)

 

2,678

 

2,196

 

Ozburn-Hessey Holding Co. LLC

 

Service - third party logistics

 

Senior Term Debt (6.3%, Due 8/2012) (3)

 

7,628

 

5,979

 

Pinnacle Foods Finance, LLC

 

Manufacturing - branded food products

 

Senior Term Debt (7.4%, Due 4/2014) (3)

 

3,971

 

3,454

 

PTS Acquisition Corp.

 

Manufacturing - drug delivery and packaging technologies

 

Senior Term Debt (7.1%, Due 4/2014) (3)

 

6,948

 

5,697

 

QTC Acquisition, Inc.

 

Service - outsourced disability evaluations

 

Senior Term Debt (5.4%, Due 11/2012) (3)

 

1,930

 

1,638

 

Radio Systems Corporation

 

Service - design electronic pet containment products

 

Senior Term Debt (5.5%, Due 9/2013) (3)

 

1,966

 

1,807

 

Rally Parts, Inc.

 

Manufacturing - aftermarket motorcycle parts and accessories

 

Senior Term Debt (5.2%, Due 11/2013) (3)

 

2,486

 

2,074

 

RPG Holdings, Inc.

 

Manufacturing and design - greeting cards

 

Senior Term Debt (8.8%, Due 12/2011) (3)

 

4,553

 

3,869

 

SafeNet, Inc.

 

Service - chip encryption products

 

Senior Term Debt (7.1%, Due 4/2014) (3)

 

2,980

 

2,382

 

SGS International, Inc.

 

Service - digital imaging and graphics

 

Senior Term Debt (6.9%, Due 12/2011) (3)

 

1,594

 

1,430

 

Stolle Machinery Company

 

Manufacturing - can-making equipment and parts

 

Senior Term Debt (7.8%, Due 9/2012) (3)

 

494

 

458

 

Survey Sampling, LLC

 

Service - telecommunications-based sampling

 

Senior Term Debt (5.2%, Due 5/2011) (3), (5)

 

2,931

 

2,527

 

Synagro Technologies, Inc.

 

Service - waste treatment and recycling

 

Senior Term Debt (5.1%, Due 3/2014) (3)

 

498

 

422

 

Triad Laboratory Alliance, LLC

 

Service - regional medical laboratories

 

Senior Term Debt (5.9%, Due 12/2011) (3), (5)

 

4,900

 

4,154

 

United Surgical Partners International, Inc.

 

Service - outpatient surgical provider

 

Senior Term Debt (5.4%, Due 4/2014) (3)

 

1,320

 

1,152

 

Wastequip, Inc.

 

Service - process and transport waste materials

 

Senior Term Debt (4.9%, Due 2/2013) (3)

 

2,922

 

2,337

 

WaveDivision Holdings, LLC

 

Service - cable

 

Senior Term Debt (6.7%, Due 6/2014) (3), (5)

 

1,925

 

1,814

 

West Corporation

 

Service - business process outsourcing

 

Senior Term Debt (5.3%, Due 10/2013) (3)

 

3,357

 

2,929

 

Subtotal – Senior Syndicated Loans

 

 

 

 

 

$

154,647

 

$

131,005

 

 

 

 

 

 

 

 

 

 

 

Non-Syndicated Loans

 

 

 

 

 

 

 

 

 

B-Dry, LLC

 

Service - basement waterproofer

 

Revolving Credit Facility, $-0- available (7.3%, Due 10/2008)

 

750

 

750

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014)

 

6,749

 

6,749

 

 

 

 

 

Senior Term Debt (10.0%, Due 5/2014)

 

3,970

 

3,970

 

 

 

 

 

Common Stock Warrants (4)

 

300

 

265

 

 

 

 

 

 

 

11,769

 

11,734

 

Total Non-Control/Non-Affiliate Investments

 

 

 

$

166,416

 

$

142,739

 

 

7



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

CONTROL INVESTMENTS

 

 

 

 

 

 

 

A. Stucki Holding Corp.

 

Manufacturing - railroad freight car products

 

Senior Term Debt (7.6%, Due 3/2012)

 

$

13,391

 

$

13,391

 

 

 

 

 

Senior Term Debt (9.8%, Due 3/2012) (6)

 

11,000

 

11,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 3/2014)

 

5,486

 

5,486

 

 

 

 

 

Preferred Stock (4)

 

4,387

 

4,748

 

 

 

 

 

Common Stock (4)

 

130

 

10,062

 

 

 

 

 

 

 

34,394

 

44,687

 

 

 

 

 

 

 

 

 

 

 

Acme Cryogenics, Inc.

 

Manufacturing - manifolds and pipes for industrial gasses

 

Senior Subordinated Term Debt (11.5%, Due 3/2013)

 

14,500

 

14,500

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,984

 

7,795

 

 

 

 

 

Common Stock (4)

 

1,045

 

2,977

 

 

 

 

 

Common Stock Warrants (4)

 

25

 

291

 

 

 

 

 

 

 

22,554

 

25,563

 

 

 

 

 

 

 

 

 

 

 

ASH Holdings Corp.

 

Retail and Service - school buses and parts

 

Revolver, $1,250 available (non-accrual, Due 3/2010)

 

750

 

 

 

 

 

 

Senior Subordinated Term Debt (non-accrual, Due 1/2012)

 

5,250

 

 

 

 

 

 

Preferred Stock (4)

 

2,500

 

 

 

 

 

 

Common Stock Warrants (4)

 

4

 

 

 

 

 

 

 

 

8,504

 

 

 

 

 

 

 

 

 

 

 

 

Cavert II Holding Corp.

 

Manufacturing - bailing wire

 

Revolving Credit Facility, $600 available (8.0%, Due 10/2010)

 

2,400

 

2,400

 

 

 

 

 

Senior Term Debt (8.3%, Due 10/2012)

 

6,337

 

6,337

 

 

 

 

 

Senior Term Debt (10.0%, Due 10/2012) (6)

 

3,000

 

3,000

 

 

 

 

 

Senior Subordinated Term Debt (13%, Due 10/2014)

 

4,671

 

4,671

 

 

 

 

 

Preferred Stock (4)

 

4,110

 

4,252

 

 

 

 

 

Common Stock (4)

 

69

 

688

 

 

 

 

 

 

 

20,587

 

21,348

 

 

 

 

 

 

 

 

 

 

 

Chase II Holdings Corp.

 

Manufacturing - traffic doors

 

Revolving Credit Facility, $220 available (7.1%, Due 3/2008)

 

3,280

 

3,280

 

 

 

 

 

Senior Term Debt (8.8%, Due 3/2011)

 

9,900

 

9,900

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2011) (6)

 

7,840

 

7,840

 

 

 

 

 

Senior Subordinated Term Debt (13.0%, Due 3/2013)

 

6,168

 

6,168

 

 

 

 

 

Redeemable Preferred Stock (4)

 

6,961

 

8,455

 

 

 

 

 

Common Stock (4)

 

61

 

3,508

 

 

 

 

 

 

 

34,210

 

39,151

 

 

 

 

 

 

 

 

 

 

 

Quench Holdings Corp.

 

Service - sales, installation and service of water coolers

 

Revolving Credit Facility, $-0- available (7.1%, Due 3/2009)

 

1,500

 

1,500

 

 

 

 

 

Senior Term Debt (7.1%, Due 3/2011)

 

4,250

 

4,250

 

 

 

 

 

Senior Subordinated Term Debt (11.5%, Due 3/2011)

 

7,820

 

7,820

 

 

 

 

 

Equipment Line Note (7)

 

1,088

 

1,088

 

 

 

 

 

Preferred Stock (4)

 

3,000

 

 

 

 

 

 

Common Stock Warrants (4)

 

447

 

 

 

 

 

 

 

 

18,105

 

14,658

 

 

 

 

 

 

 

 

 

 

 

Total Control Investments

 

 

 

 

 

$

138,354

 

$

145,407

 

 

8



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED SCHEDULES OF INVESTMENTS

AS OF MARCH 31, 2008

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

Company (1)

 

Industry

 

Investment (2)

 

Cost

 

Fair
Value

 

 

 

 

 

 

 

 

 

 

 

AFFILIATE INVESTMENTS

 

 

 

 

 

 

 

Danco Acquisition Corp.

 

Manufacturing - machining and sheet metal work

 

Revolving Credit Facility, $2,400 available (9.3%, Due 10/2010)

 

$

600

 

$

600

 

 

 

 

 

Senior Term Debt (9.3%, Due 10/2012)

 

5,550

 

5,550

 

 

 

 

 

Senior Term Debt (11.5%, Due 4/2013)

 

8,578

 

8,578

 

 

 

 

 

Redeemable Preferred Stock (4)

 

2,500

 

2,576

 

 

 

 

 

Common Stock Warrants (4)

 

3

 

1,045

 

 

 

 

 

 

 

17,231

 

18,349

 

 

 

 

 

 

 

 

 

 

 

Mathey Investments, Inc.

 

Manufacturing - pipe-cutting and pipe-fitting equipment

 

Revolving Credit Facility, $2,000 available (9.0%, Due 3/2011) (8)

 

 

 

 

 

 

 

Senior Term Debt (9.0%, Due 3/2013) (8)

 

2,500

 

2,500

 

 

 

 

 

Senior Term Debt (12.0%, Due 3/2014) (8)

 

7,300

 

7,300

 

 

 

 

 

Common Stock (4), (8)

 

500

 

500

 

 

 

 

 

Common Stock Warrants (4), (8)

 

277

 

277

 

 

 

 

 

 

 

10,577

 

10,577

 

 

 

 

 

 

 

 

 

 

 

Noble Logistics, Inc.

 

Service - aftermarket auto parts delivery

 

Revolving Credit Facility, $100 available (7.1%, Due 12/2009)

 

1,900

 

1,900

 

 

 

 

 

Senior Term Debt (8.5%, Due 12/2011)

 

6,077

 

6,077

 

 

 

 

 

Senior Term Debt (10.5%, Due 3/2011) (6)

 

7,000

 

7,000

 

 

 

 

 

Preferred Stock (4)

 

1,750

 

2,108

 

 

 

 

 

Common Stock (4)

 

1,500

 

1,447

 

 

 

 

 

 

 

18,227

 

18,532

 

Total Affiliate Investments

 

 

 

 

 

$

46,035

 

$

47,458

 

 

 

 

 

 

 

 

 

 

 

Total Investments

 

 

 

 

 

$

350,805

 

$

335,604

 

 


(1)

 

Certain of the listed securities are issued by affiliate(s) of the indicated portfolio company.

(2)

 

Percentage represents the weighted average interest rates in effect at March 31, 2008, and due date represents the contractual maturity date.

(3)

 

Marketable securities, such as syndicated loans, are valued based on the indicative bid price on or near March 31, 2008, offered by the respective syndication agent’s trading desk, or secondary desk.

(4)

 

Security is non-income producing.

(5)

 

Fair value based on opinions of value submitted by Standard & Poor’s Securities Evaluations, Inc. at March 31, 2008.

(6)

 

Last Out Tranche of senior debt, meaning if the portfolio company is liquidated then the holder of the Last Out Tranche is paid after the senior debt.

(7)

 

Total available for future borrowing for the purposes of purchasing equipment is $1,500. The undrawn amount of $411 may be drawn to purchase additional equipment through 10/31/2010. The interest rate on all amounts drawn on the equipment line note is 12% except for one draw of $188 whose interest rate is 15%. Each draw on the equipment line note is subject to its own amortization and maturity, typically over a period of 20-24 months. At March 31, 2008, the last amortization payment due under current amounts drawn under the equipment line note is 11/2009.

(8)

 

Valued at cost due to recent acquisition.

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

9



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

September 30,

 

September 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

INVESTMENT INCOME

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

Non-Control/Non-Affiliate investments

 

$

2,134

 

$

4,080

 

$

4,458

 

$

7,329

 

Control investments

 

2,735

 

2,612

 

5,304

 

5,177

 

Affiliate investments

 

1,349

 

375

 

2,460

 

801

 

Cash and cash equivalents

 

22

 

61

 

46

 

114

 

Total interest income

 

6,240

 

7,128

 

12,268

 

13,421

 

Other income

 

576

 

28

 

586

 

35

 

Total investment income

 

6,816

 

7,156

 

12,854

 

13,456

 

 

 

 

 

 

 

 

 

 

 

EXPENSES

 

 

 

 

 

 

 

 

 

Loan servicing fee (Refer to Note 4)

 

1,258

 

1,260

 

2,511

 

2,454

 

Base management fee (Refer to Note 4)

 

435

 

453

 

861

 

812

 

Administration fee (Refer to Note 4)

 

212

 

228

 

447

 

436

 

Interest expense

 

1,084

 

2,023

 

2,186

 

3,438

 

Amortization of deferred finance costs

 

140

 

216

 

278

 

426

 

Professional fees

 

183

 

110

 

314

 

266

 

Stockholder related costs

 

200

 

157

 

301

 

195

 

Insurance expense

 

55

 

73

 

108

 

136

 

Directors fees

 

48

 

68

 

95

 

122

 

Taxes and licenses

 

24

 

41

 

67

 

83

 

General and administrative expenses

 

90

 

35

 

122

 

92

 

Expenses before credit from Adviser

 

3,729

 

4,664

 

7,290

 

8,460

 

Credits to base management fee (Refer to Note 4)

 

(696

)

(503

)

(1,270

)

(887

)

Total expenses net of credit to base management fee

 

3,033

 

4,161

 

6,020

 

7,573

 

NET INVESTMENT INCOME

 

3,783

 

2,995

 

6,834

 

5,883

 

 

 

 

 

 

 

 

 

 

 

REALIZED AND UNREALIZED (LOSS) GAIN ON INVESTMENTS

 

 

 

 

 

 

 

 

 

Realized loss on sale of Non-Control/Non-Affiliate investments

 

(2,498

)

(3

)

(4,215

)

(52

)

Net unrealized depreciation of Non-Control/Non-Affiliate investments

 

(5,191

)

(7,308

)

(726

)

(7,836

)

Net unrealized appreciation of Control investments

 

10,840

 

180

 

5,973

 

5,454

 

Net unrealized (depreciation) appreciation of Affiliate investments

 

(5,978

)

(231

)

(11,393

)

454

 

Net loss on investments

 

(2,827

)

(7,362

)

(10,361

)

(1,980

)

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

 

$

956

 

$

(4,367

)

$

(3,527

)

$

3,903

 

 

 

 

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER COMMON SHARE:

 

 

 

 

 

 

 

 

 

Basic and Diluted

 

$

0.04

 

$

(0.26

)

$

(0.17

)

$

0.24

 

 

 

 

 

 

 

 

 

 

 

SHARES OF COMMON STOCK OUTSTANDING:

 

 

 

 

 

 

 

 

 

Basic and diluted weighted average shares

 

22,080,133

 

16,560,100

 

21,011,740

 

16,560,100

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

10



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN NET ASSETS

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

 

 

Six Months Ended September 30,

 

 

 

2008

 

2007

 

Operations:

 

 

 

 

 

Net investment income

 

$

6,834

 

$

5,883

 

Realized loss on sale of investments

 

(4,215

)

(52

)

Net unrealized depreciation of portfolio

 

(6,146

)

(1,928

)

Net (decrease) increase in net assets from operations

 

(3,527

)

3,903

 

 

 

 

 

 

 

Capital transactions:

 

 

 

 

 

Issuance of common stock

 

41,290

 

 

Shelf offering registration costs

 

(643

)

(31

)

Distributions to stockholders

 

(10,157

)

(7,452

)

Increase (decrease) in net assets from capital transactions

 

30,490

 

(7,483

)

 

 

 

 

 

 

Total increase (decrease) in net assets

 

26,963

 

(3,580

)

 

 

 

 

 

 

Net Assets

 

 

 

 

 

Beginning of period

 

206,445

 

222,818

 

End of period

 

$

233,408

 

$

219,238

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

11



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

CONSOLIDATED STATEMENTS OF CASH FLOWS

(DOLLAR AMOUNTS IN THOUSANDS)

(UNAUDITED)

 

 

 

Six Months Ended September 30,

 

 

 

2008

 

2007

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net (decrease) increase in net assets resulting from operations

 

$

(3,527

)

$

3,903

 

Adjustments to reconcile net (decrease) increase in net assets resulting from operations to net cash provided by (used in) operating activities:

 

 

 

 

 

Purchase of investments

 

(36,612

)

(113,784

)

Principal repayments of investments

 

22,284

 

38,306

 

Proceeds from the sale of investments

 

13,296

 

5,809

 

Net unrealized depreciation of investment portfolio

 

6,146

 

1,928

 

Net realized loss on sales of investments

 

4,215

 

52

 

Net amortization of premiums and discounts

 

19

 

218

 

Amortization of deferred finance costs

 

278

 

426

 

Decrease (increase) in interest receivable

 

309

 

(695

)

Decrease in due from custodian

 

1,351

 

10,258

 

Increase in prepaid insurance

 

(114

)

(164

)

Decrease (increase) in other assets

 

309

 

(195

)

Increase (decrease) in other liabilities

 

13

 

(16

)

Increase in administration fee payable to Administrator (See Note 4)

 

4

 

66

 

Increase in base management fee payable to Adviser (See Note 4)

 

123

 

254

 

Decrease in loan servicing fee payable to Adviser (See Note 4)

 

(7

)

(6

)

(Decrease) increase in accrued expenses

 

(167

)

496

 

Net cash provided by (used in) operating activities

 

7,920

 

(53,144

)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Net proceeds from the issuance of common stock

 

40,647

 

 

Borrowings from line of credit

 

129,000

 

147,100

 

Repayments of line of credit

 

(142,870

)

(101,050

)

Deferred finance costs

 

 

(22

)

Shelf offering registration costs

 

 

(32

)

Distributions paid

 

(10,157

)

(7,452

)

Net cash provided by financing activities

 

16,620

 

38,544

 

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS

 

24,540

 

(14,600

)

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD

 

9,360

 

37,789

 

 

 

 

 

 

 

CASH AND CASH EQUIVALENTS, END OF PERIOD

 

$

33,900

 

$

23,189

 

 

THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS.

 

12



Table of Contents

 

GLADSTONE INVESTMENT CORPORATION

FINANCIAL HIGHLIGHTS

(DOLLAR AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)

(UNAUDITED)

 

 

 

Three Months Ended September 30,

 

Six Months Ended September 30,

 

 

 

2008

 

2007

 

2008

 

2007

 

Per Share Data (1)

 

 

 

 

 

 

 

 

 

Balance at beginning of period

 

$

10.77

 

$

13.73

 

$

12.47

 

$

13.46

 

 

 

 

 

 

 

 

 

 

 

Income from investment operations:

 

 

 

 

 

 

 

 

 

Net investment income (2)

 

0.17

 

0.18

 

0.33

 

0.35

 

Realized loss on sale of investments (2)

 

(0.11

)

 

(0.20

)

 

Net unrealized depreciation of investments (2)

 

(0.02

)

(0.44

)

(0.30

)

(0.12

)

Total from investment operations

 

0.04

 

(0.26

)

(0.17

)

0.23

 

 

 

 

 

 

 

 

 

 

 

Distributions from:

 

 

 

 

 

 

 

 

 

Net investment income

 

(0.24

)

(0.23

)

(0.48

)

(0.45

)

Total distributions (3)

 

(0.24

)

(0.23

)

(0.48

)

(0.45

)

 

 

 

 

 

 

 

 

 

 

Rights offering costs

 

 

 

(0.03

)

 

Effect of distribution of stock rights offering after record date (4)

 

 

 

(1.22

)

 

Net asset value at end of period

 

$

10.57

 

$

13.24

 

$

10.57

 

$

13.24

 

 

 

 

 

 

 

 

 

 

 

Per share market value at beginning of period

 

$

6.38

 

$

14.21

 

$

9.32

 

$

14.87

 

Per share market value at end of period

 

$

6.88

 

$

12.84

 

$

6.88

 

$