Monroe Capital BDC net income rises by a fifth

The firm also reports portfolio fair value of $233.5 million invested across 40 companies, which achieved an average yield of 11 percent last year.  

 Monroe Capital Corporation (MRCC), the Chicago-based business development company, has reported that net income increased by 21 percent in the last quarter of 2014. Net investment income rose to $4.6 million or $0.49 per share for the fourth quarter of 2014, up from $3.8 million or $0.40 per share in the prior quarter. The vehicle’s board of directors also declared a dividend increase of 3 percent, bringing its quarterly cash dividend to $0.35 per share, or $1.40 annualized, the firm said in its earnings statement last Friday (6 March).

“This represents the fifth consecutive quarter of per share adjusted net investment income growth for MRCC. We are very pleased that we have been able to grow our per share net investment income for each of the last five quarters and are comfortably covering our fourth quarter dividend,” chief executive Ted Koenig said in a statement. “This strong dividend coverage has resulted in the decision by our board of directors to increase our quarterly dividend in the amount of 3 percent to $0.35 per share for the first quarter of 2015, at a time when several other BDCs have cut their dividend payout,” he continued.

MRCC also reported that it had debt and equity investments in 40 portfolio companies, with a total fair value of $233.5 million, as of December 31 2014, compared to a fair value of $234.7 million on September 30 last year in the same amount of companies.

Monroe’s BDC portfolio is made up of mostly first lien loans, which represented 94.6 percent of the portfolio as of December 31. At the end of last year, the weighted average yield on portfolio investments was 11 percent.