NEW YORK--(BUSINESS WIRE)--CM Finance Inc (Nasdaq:CMFN) (“CMFN” or “the Company”) today announced financial results for its fiscal first quarter ended September 30, 2014.
- Investment portfolio increased by $25.0 million, or 9%, from last quarter, to $298.7 million
- Yield, at cost, on debt portfolio increased to 11.72% from 10.82% last quarter
- Four debt investments made during the quarter with a weighted average yield of 14.1%
- UBS financing facility: upsized by $24.5 million, extended term and added flexibility
- Declared dividend of $.3375 per share for quarter ended December 31, 2014
|Portfolio results, as of September 30, 2014:|
|Investment portfolio, at fair value||$||298.7mm|
|Weighted Average yield on debt investments, at cost||11.72%|
|Weighted Average yield on debt investments, at fair value||11.15%|
|Net Asset Value per share||$||14.65|
|Portfolio activity in the current quarter:|
|Number of new investments||4|
|Total capital invested||$||54.6mm|
|Proceeds from repayments, sales, and amortization||$||30.0mm|
|Number of portfolio companies, end of period||25|
|Net investment income||$||4.6mm|
|Net investment income per share||$||0.34|
|Net increase in net assets from operations||$||4.6mm|
|Net increase in net assets from operations per share||$||0.34|
Dividend declared per share (paid October 1, 2014)
Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said, “We enter our new fiscal year optimistic about the portfolio. We continue to see significant deal flow, and an increasingly favorable environment to structure investments with attractive structural and economic terms. We have opportunistically begun to exit lower-yielding, liquid investments as we have had the ability to originate loans with better risk/reward characteristics.”
On November 6, 2014, the Company’s Board of Directors declared a fourth calendar quarter dividend of $.3375 per share payable on January 5, 2015 to shareholders of record as of December 18, 2014.
The Company reported net investment income of $4.6 million, or $0.34 per share, and an immaterial amount of net realized and unrealized losses. The total net increase in net assets for the quarter was $4.6 million, or $0.34 per share. At September 30, 2014, net asset value (NAV) per share was $14.65.
Portfolio and Investment Activities
During the quarter, we continued to grow and diversify our investment portfolio. We added four new investments and funded one pre-existing commitment in the fiscal first quarter, which totaled $54.6 million, and realized $30.0 million of repayments, sales proceeds, and amortization. Growth in net investments was approximately $25.0 million (at fair value). Three of our four investments in the fiscal first quarter were to new portfolio companies. Our investments in new portfolio companies during the quarter averaged $17.4 million, and had a weighted average yield of 14.1%.
At September 30, 2014, our investment portfolio of $298.7 million (at fair value) consisted of investments in 25 portfolio companies, of which 48.0% were first lien investments, 50.7% were second lien investments, and 1.3% were warrant positions. At September 30, 2014, our average portfolio company investment at fair value was $11.9 million. We had no nonperforming loans in the portfolio.
As of September 30, 2014 and June 30, 2014, respectively, our weighted average total yield of debt and income producing securities at amortized cost (which includes interest income and amortization of fees and discounts) was 11.72% and 10.82%, respectively, and our weighted average total yield of debt and income producing securities at fair value (which includes interest income and amortization of fees and discounts) was 11.15% and 10.44%, respectively.
As of September 30, 2014, we had $18.0 million in cash, $12.0 million in restricted cash, and $28.5 million of capacity under our revolving credit facility. Our net assets totaled $200.2 million.
Subsequent to quarter end, the Company invested $27.8 million in new and existing portfolio companies and received repayment or sales proceeds of $19.7 million.
About CM Finance Inc
The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation and amortization of at least $15 million. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc, please visit www.cmfn-inc.com.
Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.
|CM Finance Inc and subsidiaries|
|Consolidated Statement of Assets and Liabilities|
September 30, 2014
June 30, 2014
|Non-controlled, non-affiliated investments, at fair value (amortized cost of $296,539,888 and $271,682,258, respectively)||$||298,672,633||$||273,710,465|
|Derivatives, at fair value (cost $0 and $0, respectively)||987,590||563,866|
|Deferred debt issuance costs||3,330,671||459,676|
|Prepaid expenses and other assets||537,280||730,562|
|Revolving credit facility||21,487,523||9,091,314|
|Payable for investments purchased||1,194,000||16,660,000|
|Derivatives, at fair value (cost $0 and $0, respectively)||987,590||563,866|
|Base management fees payable||1,107,453||313,237|
|Income-based incentive fees payable||386,629||-|
|Accrued deferred financing costs||2,787,292||-|
|Accrued expenses and other liabilities||675,862||694,143|
|Common Stock, par value $0.001 per share (100,000,000 shares authorized, 13,666,666 and 13,666,666 shares issued and outstanding, respectively)||13,667||13,667|
|Additional paid-in capital||198,810,786||198,810,786|
|Accumulated net realized loss||(123,598||)||-|
|Distributions in excess of net investment income||(635,839||)||(635,839||)|
|Net unrealized appreciation on investments||2,132,745||2,028,207|
|Total Net Assets||200,197,761||200,216,821|
|Total Liabilities and Net Assets||$||335,567,193||$||308,759,998|
|Net Asset Value Per Share||$||14.65||$||14.65|
For the three
|Payment in-kind interest income||561,020|
|Other fee income||336,568|
|Total investment income||7,860,869|
|Amortization of deferred debt issuance costs||172,892|
|Base management fees||1,107,453|
|Income-based incentive fees||969,458|
|Capital gains incentive fees||138,049|
|Custodian and administrator fees||88,690|
|Allocation of administrative costs from advisor||191,420|
|Waiver of income-based incentive fees||(582,829||)|
|Waiver of capital gains incentive fees||(138,049||)|
|Net investment income||$||4,612,500|
|Net realized and unrealized losses on investment transactions:|
|Net realized losses on investments||(123,598||)|
|Net change in unrealized appreciation on investments||104,538|
|Net realized and unrealized losses||(19,060||)|
|Net increase in net assets resulting from operations||$||4,593,440|
|Basic and diluted:|
|Net investment income per share||0.34|
|Earnings per share||0.34|
|Weighted Average Shares of Common Stock Outstanding||13,666,666|
|Dividends declared per common share||0.3375|