ACAS Logo Portfolio Company
BOSTON| CHICAGO| DALLAS| FRANKFURT| HONG KONG| LONDON| LOS ANGELES| NEW YORK| PARIS| WASHINGTON, DC
print this

NEWS

American Capital logo

Two Bethesda Metro Center
14th Floor
Bethesda, MD 20814
(301) 951-6122
(301) 654-6714 Fax
Info@AmericanCapital.com
www.AmericanCapital.com

FOR IMMEDIATE RELEASE:
May 1, 2007

Contact
John Erickson, Chief Financial Officer (301) 951-6122
Tom McHale, Senior Vice President, Finance (301) 951-6122

AMERICAN CAPITAL INCREASES Q2 DIVIDEND 11% TO $0.91
REPORTS $0.75 NOI AND $0.88 EARNINGS PER BASIC SHARE IN Q1 2007

Bethesda, MD – May 1, 2007 – American Capital Strategies Ltd. (NASDAQ: ACAS) announced today its second quarter 2007 dividend and its results for the first quarter of 2007.

SECOND QUARTER 2007 DIVIDEND DECLARATION
American Capital’s Board of Directors has declared a second quarter 2007 regular dividend of $0.91 per share to record holders as of June 11, 2007, payable on July 2, 2007.  This is an 11% increase over the second quarter 2006 dividend of $0.82 per share.  American Capital has paid a total of $1.6 billion in dividends and paid or declared dividends of $24.24 per share since its August 1997 IPO at $15.00 per share.

2007 DIVIDEND GUIDANCE
American Capital is forecasting total 2007 dividends of $3.68 per share to be paid from ordinary taxable income earned in 2007.  This would represent an 11% growth over the total 2006 dividends of $3.33 per share.  American Capital anticipates that its 2007 ordinary taxable income will exceed its dividends paid and it will elect to pay a 4% excise tax and retain its excess ordinary taxable income.  The estimated remaining 2007 dividends per share are $0.92 and $0.96 per share for the third and fourth quarters of 2007, respectively.

2007 OTHER GUIDANCE
The following guidance assumes the economic and capital market environment throughout 2007 remains substantially the same as in 2006.

American Capital is forecasting 12% to 22% growth in net asset value per share ("NAV") over its December 31, 2006 NAV per share of $29.42, to a value in the range of $32.90 to $35.90 per share by December 31, 2007 (a reduction from previous guidance). American Capital is forecasting that it will have between $15 billion and $21 billion of alternative assets under management by year end ($2 billion lower than previous guidance), of which $6 billion to $8 billion will be in funds managed by American Capital; the balance will be on American Capital's balance sheet. In addition, American Capital is forecasting $0.76 to $0.80 in net operating income (earnings less appreciation, depreciation, gains and loss ("NOI")) per basic share in the second quarter of 2007.

FIRST QUARTER 2007 RESULTS
American Capital announced today its results for the first quarter of 2007.  Earnings for the quarter decreased 17% to $134 million, compared to $162 million for the first quarter of 2006. On a basic per share basis for the quarter, earnings decreased 35% to $0.88 per basic share compared to $1.35 per basic share for the first quarter of 2006.  Earnings were also $0.42 per basic share below American Capital's forecasted range.  For the quarter, net portfolio appreciation and realized gains totaled $16 million compared to $46 million for the first quarter of 2006.

Earnings less unrealized appreciation and depreciation ("Realized Earnings") decreased 27% to $0.83 per basic share for the quarter compared to $1.14 per basic share for the first quarter of 2006.  NOI decreased 3% to $0.75 per basic share from $0.77 per basic share for the first quarter of 2006.  NOI was $0.03 per basic share below American Capital's forecasted range.

In the first quarter of 2007, American Capital received $17 million of revenue related to its and its wholly-owned portfolio companies' management of $2.9 billion of assets at European Capital, American Capital Equity I and American Capital CLO 2007-1.  This is a 131% increase in revenues over the first quarter of 2006.

"The quarter was solid with portfolio companies continuing to perform well," said Malon Wilkus, American Capital Chairman, President and CEO, "but several factors caused us to miss our NOI and earnings guidance.  Our stock compensation expense increased from $0.08 per basic share in Q4 2006 to $0.12 per basic share in Q1 2007, which had not been in our forecast.  This $0.04 per basic share increase was not due to the issuance of new grants but rather was driven by an increase in our estimated number of shares that will vest in 2007 pursuant to FAS 123R.  In addition to the impact from the stock compensation expense, several forecasted buyouts were lost and other transactions shifted to Q2 representing approximately $0.03 per basic share.  Finally, our unrealized appreciation came in below plan, which was primarily due to the reduction of $47 million of previously recognized appreciation on our investment in ASABiofuels, an ethanol company.  Our $76 million investment in ASABiofuels continues to be an excellent investment and is currently valued at $128 million, $52 million over its cost.  The main driver of our dividend and performance is our portfolio companies and they continue to perform extremely well."

First quarter 2007 dividends were $0.89 per share, an 11% growth over the first quarter 2006 dividends of $0.80 per share.  For the quarter, American Capital's dividend payout ratio was 107% of Realized Earnings of $0.83 per basic share.  Over the past year, the dividend payout ratio was 83% of Realized Earnings.  American Capital's NAV per share at March 31, 2007 was $30.36, a $5.06 or 20% growth over the March 31, 2006 NAV per share of $25.30.

"The market remains robust with plentiful opportunities," said Ira Wagner, Chief Operating Officer.  "We are currently reviewing nearly $40 billion of investment opportunities and we have $2.7 billion of investment opportunities under signed term-sheets or letters of intent. We continue to adhere to our investment discipline and as a result we are losing a higher percentage of our bids for buyouts which leads us to investing a higher percentage in debt investments.  Our discipline is reflected in our static pool data that shows our investments are maturing very nicely.  Our 32% returns generated on the equity investments made over the past five year's static pools (28% return over the past ten years) place us in the top ranks of private equity investors while our total returns were far less volatile than the private equity industry over the past ten years.  You can see the detail of our equity returns in the static pool charts below."

In the first quarter of 2007, American Capital invested $1.1 billion of capital and received $0.6 billion of proceeds from realizations of portfolio investments.  In addition, American Capital funds under management invested an additional $0.6 billion, for a total of $1.7 billion of investments in the first quarter of 2007.  In the first quarter of 2007, American Capital had $20 million of net appreciation, depreciation, realized gains and losses comprised of net realized gains of $13 million and net appreciation of $7 million.

"Credit quality remains excellent," said Chief Financial Officer John Erickson.  "Defaults and non-performing loans remain at very low levels in our portfolio as well as in the overall commercial finance industry. During our first quarter valuation meetings we continued to see good performance in our portfolio companies and saw no signs that the residential mortgage market or foreclosures in the housing market was having an impact outside of the housing sector.  We are also pleased to have rolled out our first managed CLO totaling $400 million.  This is our third fund under management, an expansion of our alternative asset management strategy, which produced 7% of our revenue in the first quarter.  We expect funds under management will total $6 to $8 billion by year end. Finally, it's worth noting the consistency of the performance of our investments.  We delivered a 22% earnings return on equity over the past twelve months and an 18% earnings return on equity over the past five years."

The weighted average effective interest rate on American Capital's total investments in debt securities as of March 31, 2007 was 12.2%.  At March 31, 2007, loans totaling $208 million, with a fair value of $55 million, were on non-accrual.  Delinquent and non-accruing loans to 16 portfolio companies totaled $219 million, or 4% of total loans at March 31, 2007, compared to $245 million, or 7% of total loans at March 31, 2006.  The $55 million fair value of non-accrual loans represented 1% of total loans at fair value at March 31, 2007, compared to $55 million fair value of non-accrual loans representing 2% of total loans at fair value at March 31, 2006.

Since inception in September of 2005 through March 31, 2007, European Capital, managed by a wholly-owned consolidated subsidiary of American Capital, has invested in 45 portfolio companies totaling $2.1 billion.  European Capital declared a dividend for the first quarter of 2007, of which American Capital received dividend income totaling $15 million from its $654 million equity investment at cost in European Capital, a 9% annualized dividend yield.

Since its August 1997 IPO through the first quarter of 2007, American Capital has earned a 16% compounded annual return, including interest, dividends, fees and net gains, on 186 realizations of senior debt, subordinated debt and equity investments, totaling $5.3 billion of invested capital.  These realizations represent 36% of all amounts invested by American Capital since its August 1997 IPO.  Proceeds from these realizations exceeded the total associated prior quarter valuation of the investments by 2%.

THIRD PARTY VALUATION OF PORTFOLIO INVESTMENTS
American Capital's Board of Directors is responsible for determining the fair value of American Capital's portfolio investments on a quarterly basis. In that regard, the board retained Houlihan Lokey Howard & Zukin Financial Advisors Inc. ("Houlihan Lokey") to assist it by having Houlihan Lokey regularly review a designated percentage of fair value determinations. Houlihan Lokey is a leading valuation firm in the U.S., engaged in approximately 1,000 valuation assignments per year for clients worldwide. Each quarter, Houlihan Lokey reviews American Capital's determination of the fair value of its portfolio company investments that have been portfolio companies for at least one year and that have a fair value in excess of $25 million. In the first quarter of 2007, Houlihan Lokey reviewed valuations of 11 portfolio company investments having an aggregate $680 million in fair value as of the period end. Over the last four quarters, Houlihan Lokey has reviewed 86 portfolio companies totaling $4.9 billion in fair value as of their respective valuation dates. In addition, Houlihan Lokey representatives attend American Capital's quarterly valuation meetings and provide periodic reports and recommendations to the Audit and Compliance Committee of the Board of Directors.

For those portfolio company investments that Houlihan Lokey has reviewed during each applicable period, using the scope of review set forth by American Capital's Board of Directors, the Board has made a fair value determination that is within the aggregate range of fair value for such investments as determined by Houlihan Lokey.

 

Financial highlights for the quarter are as follows:

AMERICAN CAPITAL STRATEGIES, LTD.

CONSOLIDATED BALANCE SHEETS

As of March 31, 2007, December 31, 2006 and March 31, 2006

(in millions)


    

Q1

2007

    

Q4

2006

    

Q1 2007

Versus

Q4 2006

    

Q1

2006

    

Q1 2007

Versus

Q1 2006

  
         $     %       $    %  
     (unaudited)     (unaudited)  

Assets

                

Investments at fair value (cost of $8,350, $7,781 and $5,502 respectively)

    $ 8,653     $ 8,076     $ 577     7 %   $ 5,513     $ 3,140    57 %

Cash and cash equivalents

      153       77       76     99 %     68       85    125 %

Restricted cash

      88       233       (145 )   -62 %     84       4    5 %

Interest receivable

      62       44       18     41 %     35       27    77 %

Other

      171       179       (8 )   -4 %     100       71    71 %
                                                   

Total assets

    $ 9,127     $ 8,609     $ 518     6 %   $ 5,800     $ 3,327    57 %
                                                   

Liabilities and Shareholders’ Equity

                

Debt

    $ 4,006     $ 3,926     $ 80     2 %   $ 2,519     $ 1,487    59 %

Derivative agreements

      15       13       2     15 %     5       10    200 %

Accrued dividends payable

      137       130       7     5 %     96       41    43 %

Other

      188       198       (10 )   -5 %     59       129    219 %
                                                   

Total liabilities

      4,346       4,267       79     2 %     2,679       1,667    62 %
                                                   

Commitments and contingencies

                

Shareholders’ equity:

                

Undesignated preferred stock, $0.01 par value,

                

5.0 shares authorized, 0 issued and outstanding

      —         —         —       0 %     —         —      0 %

Common stock, $0.01 par value, 200.0 shares authorized,

               

161.7, 151.6 and 123.6 issued and

                

157.5, 147.6 and 123.4 outstanding, respectively

      2       1       1     100 %     1       1    100 %

Capital in excess of par value

      4,420       3,980       440     11 %     3,100       1,320    43 %

Notes receivable from sale of common stock

      (7 )     (7 )     —       0 %     (7 )     —      0 %

Undistributed net realized earnings

      79       88       (9 )   -10 %     20       59    295 %

Net unrealized appreciation of investments

      287       280       7     3 %     7       280    4000 %
                                                   

Total shareholders’ equity

      4,781       4,342       439     10 %     3,121       1,660    53 %
                                                   

Total liabilities and shareholders’ equity

    $ 9,127     $ 8,609     $ 518     6 %   $ 5,800     $ 3,327    57 %
                                                   

 

AMERICAN CAPITAL STRATEGIES, LTD.

CONSOLIDATED STATEMENTS OF OPERATIONS

Three Months Ended March 31, 2007 and 2006

(in millions, except per share data)

(unaudited)


     Q1
2007		     Q1
2006		     Q1 2007 Versus Q1 2006  
         $     %  

OPERATING INCOME:

         

Investing operating income (1)

    $ 205     $ 136     $ 69     51 %

Asset management and advisory operating income (2)

      45       37       8     22 %
                              

Total operating income

      250       173       77     45 %
                              

OPERATING EXPENSES:

         

Interest

      62       36       26     72 %

Salaries, benefits and stock-based compensation

      51       23       28     122 %

General and administrative

      25       15       10     67 %
                              

Total operating expenses

      138       74       64     86 %
                              

OPERATING INCOME BEFORE INCOME TAXES

      112       99       13     13 %
                              

Benefit (provision) for income taxes

      2       (6 )     8     NM  
                              

NET OPERATING INCOME

      114       93       21     23 %
                              

Net realized gain on investments

         

Portfolio company investments

      10       43       (33 )   -77 %

Derivative agreements

      3       1       2     200 %
                              

Total net realized gain

      13       44       (31 )   -70 %
                              

REALIZED EARNINGS

      127       137       (10 )   -7 %
                              

Net unrealized appreciation (depreciation) of investments

         

Portfolio company investments

      6       3       3     100 %

Unrealized gain on exchange rate

      8       —         8     100 %

Derivative agreements

      (7 )     21       (28 )   NM  
                              

Total net unrealized appreciation

      7       24       (17 )   -71 %
                              

INCREASE IN NET ASSETS RESULTING FROM OPERATIONS BEFORE CUMULATIVE EFFECT OF ACCOUNTING CHANGE

      134       161       (27 )   -17 %

Cumulative effect of accounting change, net of tax

      —         1       (1 )   -100 %
                              

NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS (“EARNINGS”)

    $ 134     $ 162     $ (28 )   -17 %
                              

NET OPERATING INCOME PER COMMON SHARE*:

         

Basic

    $ 0.75     $ 0.77     $ (0.02 )   -3 %

Diluted

    $ 0.73     $ 0.77     $ (0.04 )   -5 %

REALIZED EARNINGS PER COMMON SHARE*:

         

Basic

    $ 0.83     $ 1.14     $ (0.31 )   -27 %

Diluted

    $ 0.81     $ 1.13     $ (0.32 )   -28 %

EARNINGS PER COMMON SHARE*:

         

Basic

    $ 0.88     $ 1.35     $ (0.47 )   -35 %

Diluted

    $ 0.86     $ 1.34     $ (0.48 )   -36 %

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING:

         

Basic

      152.7       119.9       32.8     27 %

Diluted

      156.1       121.1       35.0     29 %

DIVIDENDS DECLARED PER COMMON SHARE

    $ 0.89     $ 0.80     $ 0.09     11 %

NM = Not meaningful


* May not recalculate due to rounding.


(1) The investing operating income consists of interest, dividends, prepayment fees and other fee income.
(2) The asset management and advisory operating income consists primarily of asset management fees and reimbursements, dividends from portfolio company fund managers, transaction structuring fees, equity and loan financing fees, portfolio company management and administrative fees and other fee income.

 

 

AMERICAN CAPITAL STRATEGIES, LTD.

OTHER FINANCIAL INFORMATION

Three Months Ended March 31, 2007, December 31, 2006 and March 31, 2006

(dollars in millions, except per share data)

(unaudited)


    

Q1

2007

    

Q4

2006

    

Q1 2007
Versus

Q4 2006

    

Q1

2006

    

Q1 2007

Versus

Q1 2006

  
         $     %       $     %  

Assets Under Management:

               

American Capital Assets at Fair Value (2)

    $ 7,879     $ 7,305     $ 574     8 %   $ 5,234       2,645     51 %

Externally Managed Assets at Fair Value (3)

      2,874       2,494       380     15 %     475       2,399     505 %
                                                    

Total

    $ 10,753     $ 9,799     $ 954     10 %   $ 5,709     $ 5,044     88 %
                                                    

Capital Resources Under Management:

               

American Capital Assets at Fair Value plus Available Capital Resources (2)

    $ 8,841     $ 7,689     $ 1,152     15 %   $ 6,107       2,734     45 %

Externally Managed Assets at Fair Value plus Available Capital Resources (3)

      3,198       2,898       300     10 %     1,074       2,124     198 %
                                                    

Total

    $ 12,039     $ 10,587     $ 1,452     14 %   $ 7,181     $ 4,858     68 %
                                                    

New Investments:

               

Senior Debt

    $ 460     $ 1,050     $ (590 )   -56 %   $ 190     $ 270     142 %

Subordinated Debt

      230       196       34     17 %     159       71     45 %

Preferred Equity

      215       146       69     47 %     165       50     30 %

Common Equity

      25       43       (18 )   -42 %     53       (28 )   -53 %

Common Equity warrants

      4       7       (3 )   -43 %     23       (19 )   -83 %

CMBS Investments

      129       155       (26 )   -17 %     73       56     77 %

CDO/CLO Investments

      32       63       (31 )   -49 %     34       (2 )   -6 %
                                                    

Total

    $ 1,095     $ 1,660     $ (565 )   -34 %   $ 697     $ 398     57 %
                                                    

American Capital Sponsored Buyouts

    $ 459     $ 360     $ 99     28 %   $ 405     $ 54     13 %

Financing for Private Equity Buyouts

      153       716       (563 )   -79 %     15       138     920 %

Direct Investments

      181       153       28     18 %     12       169     1408 %

CMBS Investments

      129       155       (26 )   -17 %     73       56     77 %

CDO/CLO Investments

      32       63       (31 )   -49 %     34       (2 )   -6 %

Add-on Financing for Acquisitions

      57       95       (38 )   -40 %     140       (83 )   -59 %

Add-on Financing for Recapitalizations

      70       105       (35 )   -33 %     8       62     775 %

Add-on Financing for Growth

      4       —         4     100 %     2       2     100 %

Add-on Financing for Working Capital in Distressed Situations

      2       5       (3 )   -60 %     8       (6 )   -75 %

Add-on Financing for Working Capital

      8       8       —       0 %     —         8     100 %
                                                    

Total

    $ 1,095     $ 1,660     $ (565 )   -34 %   $ 697     $ 398     57 %
                                                    

Realizations (1):

               

Scheduled Principal Amortization

    $ 18     $ 15     $ 3     20 %   $ 14     $ 4     29 %

Senior Loan Syndications

      424       266       158     59 %     43       381     886 %

Principal Prepayments

      105       437       (332 )   -76 %     206       (101 )   -49 %

Payment of Accrued Payment-in-kind Interest and Dividends and Original Issue Discount

      3       17       (14 )   -82 %     7       (4 )   -57 %

Sale of Equity Investments

      20       746       (726 )   -97 %     99       (79 )   -80 %
                                                    

Total

    $ 570     $ 1,481     $ (911 )   -62 %   $ 369     $ 201     54 %
                                                    

Appreciation, Depreciation, Gains and Losses:

               

Gross Realized Gains

    $ 17     $ 116     $ (99 )   -85 %   $ 59     $ (42 )   -71 %

Gross Realized Losses

      (7 )     (48 )     41     85 %     (16 )     9     56 %
                                                    

Portfolio Net Realized Gains

      10       68       (58 )   -85 %     43       (33 )   -77 %

Taxes on Realized Gains

      —         (17 )     17     100 %     —         —       0 %

Net Realized Gains From Interest Rate Derivatives

      3       4       (1 )   -25 %     1       2     200 %
                                                    

Net Realized Gains

      13       55       (42 )   -76 %     44       (31 )   -70 %
                                                    

Gross Unrealized Appreciation at 40, 52 and 29 Portfolio Companies

      171       306       (135 )   -44 %     159       12     8 %

Gross Unrealized Depreciation at 30, 32 and 22 Portfolio Companies

      (162 )     (114 )     (48 )   42 %     (119 )     (43 )   -36 %
                                                    

Current Portfolio Net Unrealized Appreciation

      9       192       (183 )   -95 %     40       (31 )   -78 %

Net Depreciation From the Recognition of Net Realized Gains

      (3 )     (64 )     61     -95 %     (37 )     34     92 %

Net Unrealized Appreciation for Foreign Currency Translation

      8       18       (10 )   -56 %     —         8     100 %

Interest Rate Derivatives, net

      (7 )     (2 )     (5 )   250 %     21       (28 )   NM  
                                                    

Net Unrealized Appreciation

      7       144       (137 )   -95 %     24       (17 )   -71 %
                                                    

Net Gains, Losses, Appreciation and Depreciation

    $ 20     $ 199     $ (179 )   -90 %   $ 68     $ (48 )   -71 %
                                                    

Other Financial Data:

               

Net Asset Value per Share

    $ 30.36     $ 29.42     $ 0.94     3 %   $ 25.30     $ 5.06     20 %

Market Capitalization

    $ 6,977     $ 6,829     $ 148     2 %   $ 4,337     $ 2,640     61 %

Total Enterprise Value

    $ 10,830     $ 10,678     $ 152     1 %   $ 6,789     $ 4,041     60 %

Credit Quality:

               

Weighted Average Effective Interest Rate on Debt Investments

      12.2 %     12.3 %         12.7 %    

Loans on Non-Accrual at Face

    $ 208     $ 183     $ 25     14 %   $ 177     $ 31     18 %

Loans on Non-Accrual at Fair Value

    $ 55     $ 54     $ 1     2 %   $ 55     $ —       0 %

Past Due Loans at Face

    $ 11     $ 12     $ (1 )   -8 %   $ 68     $ (57 )   -84 %

Past Due and Non-Accrual Loans at Face as a Percentage of Total Loans

      4 %     4 %         7 %    

Past Due and Non-Accrual Loans at Fair Value as a Percentage of Total Loans

      1 %     1 %         4 %    

Number of Portfolio Companies on Non-Accrual and Past Due

      16       14           15      

Debt to Equity Conversions at Face Value

    $ —       $ —       $ —       0 %   $ —        

Return on Equity:

               

LTM Net Operating Income Return on Average Equity at Cost

      11.6 %     12.0 %         13.4 %    

LTM Realized Earnings Return on Average Equity at Cost

      15.3 %     16.9 %         16.4 %    

LTM Earnings Return on Average Equity

      21.6 %     24.6 %         16.3 %    

Current Quarter Net Operating Income Return on Average Equity at Cost Annualized

      10.6 %     11.4 %         12.3 %    

Current Period Realized Earnings Return on Average Equity at Cost

      11.9 %     17.0 %         18.2 %    

Current Quarter Earnings Return on Average Equity Annualized

      11.8 %     29.9 %         21.5 %    

Dividends:

               

Dividend Coverage (Realized Earnings per Basic Share/Dividend per Share) (4)

      0.93x       1.32x           1.43x      

Dividend Payout Ratio (Dividend per Share/Realized Earnings per Basic Share) (4)

      1.07x       0.76x           0.70x      

LTM Dividend Coverage (Realized Earnings per Basic Share/Dividend per Share) (4)

      1.20x       1.33x           1.24x      

LTM Dividend Payout Ratio (Dividend per Share/Realized Earnings per Basic Share) (4)

      0.83x       0.75x           0.81x      

NM = Not meaningful


(1) Excludes Repayments of European Capital Limited Bridge Loans
(2) Excludes American Capital’s investment in European Capital
(3) Includes European Capital, American Capital Equity I and American Capital CLO 2007-1
(4) The Company has elected to retain net long-term capital gains and pay a federal tax on behalf of its shareholders. The taxes paid by the Company are included in its Realized Earnings per Basic Share. For income tax purposes, the net long-term capital gains is treated as a deemed distribution to the Company’s shareholders, but is not included in the Dividends per Share.



    Static Pool    

Pre-

1999 - 2007
Aggregate

    

2002 - 2007
Aggregate

  

Portfolio Statistics (1)
($ in millions, unaudited)

   Pre-1999     1999     2000     2001     2002     2003     2004     2005     2006     2007      

Internal Rate of Return-All Investments(2)

     10.6 %     8.7 %     8.2 %     20.2 %     9.8 %     22.1 %     18.4 %     22.0 %     24.7 %     31.0 %     16.5 %     19.2 %

Internal Rate of Return - Equity Investments Only(2)(10)

     28.6 %     (35.6 )%     10.9 %     49.2 %     15.2 %     30.1 %     29.6 %     35.3 %     49.2 %     56.9 %     28.4 %     31.7 %

Original Investments and Commitments

   $ 382     $ 380     $ 395     $ 370     $ 944     $ 1,370     $ 2,249     $ 3,375     $ 4,543     $ 625     $ 14,633     $ 13,106  

Total Exits and Prepayments of Original Investments

   $ 284     $ 263     $ 261     $ 268     $ 589     $ 927     $ 1,092     $ 946     $ 627     $ 42     $ 5,299     $ 4,223  

Total Interest, Dividends and Fees Collected

   $ 152     $ 141     $ 118     $ 145     $ 267     $ 312     $ 397     $ 404     $ 302     $ 14     $ 2,252     $ 1,696  

Total Net Realized (Loss) Gain on Investments

   $ (32 )   $ (45 )   $ (37 )   $ 43     $ (10 )   $ 137     $ 95     $ 33     $ 40     $ —       $ 224     $ 295  

Current Cost of Investments

   $ 99     $ 61     $ 135     $ 84     $ 328     $ 407     $ 1,099     $ 2,322     $ 3,247     $ 566     $ 8,348     $ 7,969  

Current Fair Value of Investments

   $ 104     $ 43     $ 130     $ 45     $ 254     $ 433     $ 1,115     $ 2,599     $ 3,349     $ 566     $ 8,638     $ 8,316  

Net Unrealized Appreciation/(Depreciation)

   $ 5     $ (18 )   $ (5 )   $ (39 )   $ (74 )   $ 26     $ 16     $ 277     $ 102     $ —       $ 290     $ 347  

Non-Accruing Loans at Face

   $ —       $ 18     $ —       $ 31     $ 54     $ 23     $ 5     $ 77     $ —       $ —       $ 208     $ 159  

Non-Accruing Loans at Fair Value

   $ —       $ 8     $ —       $ 5     $ 13     $ 8     $ —       $ 21     $ —       $ —       $ 55     $ 42  

Equity Interest at Fair Value(9)

   $ 55     $ 10     $ 2     $ 17     $ 35     $ 172     $ 200     $ 1,457     $ 935     $ 162     $ 3,045     $ 2,961  

Debt to EBITDA(3)(4)(5)

     2.7       6.1       6.5       4.0       6.0       5.4       4.8       4.3       5.1       6.9       4.9       5.0  

Interest Coverage(3)(5)

     5.6       1.1       1.5       2.4       1.9       1.5       2.2       2.4       1.8       1.4       2.0       2.0  

Debt Service Coverage(3)(5)

     2.8       0.8       1.4       1.4       1.5       1.1       1.8       1.7       1.5       1.3       1.6       1.6  

Average Age of Companies(5)

     52 yrs       47 yrs       22 yrs       27 yrs       38 yrs       34 yrs       37 yrs       33 yrs