67 WALL STREET, New York - April 9, 2013 - The Wall Street Transcript has just published its Investment Banks and Asset Management Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with public company CEOs, Equity Analysts and Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Consistent BDC Dividend Yield - Private Middle Market Funding - Decreased Bank Loan Competition - Exchanges Trading Volumes and Cash Flow
Companies include: Triangle Capital Corporation (TCAP)
In the following excerpt from the Investment Banks and Asset Management Report, the CEO of Triangle Capital discusses the outlook for his company for investors:
TWST: You recently released your fourth-quarter results. Can you give us some highlights from the quarter?
Mr. Tucker: The results for the fourth quarter were strong. We announced $0.57 per share in net investment income, and for the full year, we announced $2.16 in net investment income. The important comparison was total investment income for the year of $90 million was up 42%, and our net investment income at approximately $58 million was up also 42%. It was a very good year for us, a very active year. The number of transactions completed, the growth of assets and the profitability were all very strong.
TWST: Please comment on the strength of your liquidity position going into 2013 and your continued ability to invest in attractive opportunities.
Mr. Tucker: If you take the cash on our balance sheet, our $165 million senior credit facility, against which nothing is drawn at the current time, and available SBA debentures, our liquidity going into 2013 is approximately $250 million, which gives us a lot of flexibility to continue to invest as we find attractive deals.
TWST: What are your top strategic goals for 2013?
Mr. Tucker: I'd say our top strategic goal is to continue to find the best mezzanine deals in the market. That was our goal for last year, and I'd say that's our goal for this year as well.
TWST: Can you please summarize your dividend history for us? And what is the outlook for dividends over the next year?
Mr. Tucker: Since our IPO in 2007, we have raised the dividend a total of 15 times. Last year, that's in 2012, we raised the dividend three times, and we've raised it once already in 2013. The first quarter dividend we announced recently was an increase from $0.53 per share to $0.54 per share. I'd say the way we characterize our dividend history is that we have a history of earning the dividend, and that means that net investment income cumulatively has exceeded what we've paid out in dividends, and we think that's important.
But beyond that, we've had a history of increasing the dividend as our net investment income has gone up. And one last thing here, the fourth-quarter net investment income per share was $0.57, the dividend paid for the fourth quarter was $0.53. We have announced an increase to $0.54, which I think translates the feeling of optimism on our part that going forward we should see some continued growth in NII, which, if that occurs, will translate eventually into increased dividends.
TWST: In your view, what are the most significant risks facing BDCs in the current market and economic environment? And what attributes does Triangle Capital have that you believe makes it well-prepared to withstand those risks?
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.