Capitala Finance Corp. Reports Fourth Quarter and Full Year 2016 Results

March 07, 2017

Capitala Finance Corp. (Nasdaq:CPTA) ("Capitala", the "Company", "we", "us", or "our") today announced its financial results for the fourth quarter and full year ended December 31, 2016.

Fourth Quarter Highlights

  • Net investment income of $6.7 million, or $0.43 per share, covered distributions paid for the sixth consecutive quarter
  • Net asset value per share of $15.79 at December 31, 2016, compared to $15.68 at September 30, 2016
  • Originated $66.9 million of investments (72% first lien secured) during the quarter with a weighted average yield on debt investments of 13.2%
  • Successful wind down of Capitala Senior Liquid Loan Fund I, LLC at par

Full Year Highlights

  • Net investment income of $29.0 million, or $1.84 per share
  • Paid distributions of $28.5 million, or $1.80 per share
  • Originated $120.8 million of new/add-on investments
  • Reduced energy concentration to 3.6% of portfolio, based on December 31, 2016 fair values, down from 8.8% at December 31, 2015
  • Successful first close on Capitala Private Credit Fund V, LP, providing co-investment opportunities for the Company

Management Commentary

In describing the Company's fourth quarter and full year activities, Joseph B. Alala, III, Chairman and Chief Executive Officer, stated, "We are pleased to report strong fourth quarter results, including dividend coverage for the sixth consecutive quarter, and an increase in NAV per share. Our direct origination platform continues to generate quality investment opportunities as evidenced by new investments made during the quarter. The investment advisor continues to enhance its staff to support underwriting of new investment opportunities and monitoring of existing investments.

To see additional information and the full report click here to go to the Investor Relations portion of our website.

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