To: Elroy who wrote (13044 ) 11/3/2012 5:17:46 AM From: Steve Felix Read Replies (1) | Respond to Well, can't say much for myself as I could never get a good answer for this: O borrowing at between 2% and 4%, yet not too long ago they floated their F issue at 6.63%. Message 28516831 sec.gov "We expect that our expenses for this offering will be approximately $350,000" we’re generating an annualized yield of 13.6% as of June 30. We also hold equity positions and many transactions that can act as yield enhancers or capital gains contributors as such positions generate distributions ." Mickey Schleien John F. Barry III Sure, I’ll start with this one. So we view the excise tax as relatively cheap financing. It’s a 4% excise tax on undistributed capital that relates to not hitting a 98% distribution in a particular year. The more important payout requirement is the 90% related to preservation of RIC status which of courses is very important, and our intention is to continue being a non-tax paying RIC from that standpoint. And as you mentioned, spillover is something we can utilize where we can count distributions over the next several quarters towards the prior tax year distribution requirement. and we would have to distribute I think it’s by May, somewhere in that timeframe, Brian – in order to meet our distribution requirement for the August tax year. So we have plenty of time to meet that requirement. We’re being very, very careful to make sure investors are seeing the dividend as a rock solid proposition. We’re not making guarantees about the future but by keeping our dividend adjustments in I think the modest increase category we think we’re enhancing our ability to do that for the long term. And I think in our industry we probably have the highest coverage by a country mile with any of our peers in the last twelve months of net investment income versus distribution payout. seekingalpha.com
