Monroe BDC Posts Fourth Quarter and 2019 Financial Results

Monroe Capital BDC posted its fourth quarter and 2019 financial results.

Q4/19 financial highlights are:

• Paid quarterly dividend of $0.35 per share ($1.40 annualized), our 29th consecutive quarterly dividend payment and our 23rd consecutive quarterly dividend payment where per share Adjusted Net Investment Income (a non-GAAP measure described in our press release) met or exceeded our quarterly dividend per share;

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• Current annual cash dividend yield to shareholders of approximately 13.5%1;

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•  Shares trading at a Price to NAV of 0.85×2;

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• Net investment income of $7.6 million, or $0.37 per share; and

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• Adjusted Net Investment Income of $7.7 million, or $0.37 per share B

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                    1. Based on closing share price as of March 3, 2020

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                    2. Based on closing share price as of March 3, 2020 and book value per share as of December 31, 2019

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                 Full year 2019 financial highlights include:

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                             1. Net investment income of $29.0 million, or $1.42 per share

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                             2. Adjusted Net Investment Income (a non GAAP measure described in our press release) of $29.1 million, or $1.42 per share

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                             3. Net increase in net assets resulting from operations of $19.2 million, or $0.94 per share

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                          “This is the 23rd straight quarter where per share Adjusted Net Investment Income of $0.37 per share met or exceeded our quarterly per share dividend. In the prior quarter, our Adjusted Net Investment Income was $0.35 per share. We have also made our 29th consecutive quarterly dividend payment to our shareholders,” said Chief Executive Officer Theodore L. Koenig.

                          “In January 2020, an arbitrator issued an award in favor of one of our borrowers, the estate of Rockdale Blackhawk, LLC (“Rockdale”), in a pending legal proceeding between the estate of Rockdale and a national insurance carrier. The lenders to Rockdale, including MRCC, will share in the proceeds of this arbitration award with the estate. The exact amount of the award has yet to be finalized because attorneys’ fees, interest and certain other amounts included as part of the award still need to be determined. We expect this to resolve over the next few quarters, but based upon the award we expect proceeds to exceed the cost basis of our outstanding loans to Rockdale. We believe this to be a very positive development in this matter.”

                          Koenig added that during the quarter, the size of Monroe’s portfolio declined somewhat as a result of repayments in the ordinary course on certain portfolio loan assets. The firm expect to redeploy a portion of the proceeds it receives from these repayments in the near term and expect to redeploy the proceeds from the Rockdale award once it is finalized, into current yielding assets which should positively contribute to its earnings in future quarters.