Daily News: November 8, 2017

Monroe Capital BDC Posts Strong Q3 Financial Results


Monroe Capital posted net investment income of $6.9 million in Q3/17, compared to $6.1 million for Q2/17. Adjusted net investment income was $7.0 million for Q3/17 compared to $6.1 million for the quarter ended June 30, 2017.

The company had debt and equity investments in 66 portfolio companies, with a total fair value of $431.1 million, as of September 30, 2017 as compared to debt and equity investments in 67 portfolio companies, with a total fair value of $445.5 million, as of June 30, 2017. The company’s portfolio consists primarily of first lien loans, representing 86.5% of the portfolio as of September 30, 2017 and 87.2% of the portfolio as of June 30, 2017. As of September 30, 2017, the weighted average contractual and effective yield on the company’s investments was 9.8% and 9.9%, respectively, as compared to the weighted average contractual and effective yield of 9.4% and 9.6%, respectively, as of June 30, 2017.

CEO Theodore L. Koenig said, “We are pleased to report another quarter of strong earnings for Q3/17, with adjusted net investment income of $0.35 per share, representing the 14th straight quarter where per share adjusted net investment income met or exceeded our quarterly per share dividend. We have also made our 20th consecutive quarterly dividend payment to our shareholders without any reduction in our distributions.

“As of quarter end, our portfolio totaled $431.1 million in investments at fair value, which represented a slight decline from the end of the second quarter due to significant prepayment activity during the third quarter, particularly near the end of the quarter. However, since the end of the quarter we have added approximately $23 million of investments to the portfolio, net of prepayments.

“Our available capacity on our revolving credit facility and remaining SBA-guaranteed debentures will allow us to continue to grow our portfolio and create long term value for our shareholders. We are also very excited about our new joint venture with NLV Financial, the parent of National Life Insurance, for our MRCC Senior Loan Fund, which we believe will complement our existing investment portfolio and provide very attractive risk-adjusted returns for our shareholders.”