Base Dividend of $0.36 Per Share Declared for Third and Fourth Quarter 2022
Board of Administrators Declared Supplemental Dividend of $0.07 Per Share for Third Quarter 2022
Board of Administrators Declared Supplemental Dividend of not less than $0.07 Per Share for Fourth Quarter 2022

EVANSTON, In poor health., Aug. 04, 2022 (GLOBE NEWSWIRE) — Fidus Funding Company (NASDAQ:FDUS) (“Fidus” or the “Firm”), a supplier of custom-made debt and fairness financing options, primarily to decrease middle-market corporations primarily based in the USA, right now introduced its monetary outcomes for the second quarter ended June 30, 2022.

Second Quarter 2022 Monetary Highlights

• Whole funding revenue of $21.2 million
• Web funding revenue of $11.Zero million, or $0.45 per share
• Adjusted web funding revenue of $10.Four million, or $0.43 per share⁽¹⁾
• Web enhance in web property ensuing from operations of $8.Zero million, or $0.33 per share
• Invested $45.7 million in debt and fairness securities, together with two new portfolio corporations
• Acquired proceeds from repayments and realizations of $44.Eight million
• Paid supplemental dividend of $0.07 per share and common quarterly dividend of $0.36 per share on June 24, 2022
• Web asset worth (“NAV”) of $484.Zero million, or $19.80 per share, as of June 30, 2022
• Estimated spillover revenue (or taxable revenue in extra of distributions) as of June 30, 2022 of $57.9 million, or $2.37 per share

Administration Commentary

“For the second quarter, our portfolio carried out nicely with debt investments delivering increased curiosity revenue on year-over-year progress in our debt portfolio, and fairness investments producing web realized features of $18.2 million, or $0.74 per share. We consider our technique of constructing a portfolio of debt investments that produce recurring revenue and fairness investments that present us with incremental returns and a margin of security is clearly working, delivering worth for our shareholders,” mentioned Edward Ross, Chairman and CEO of Fidus funding Company. “With ranges of exercise within the decrease center market holding regular, we stay nicely positioned to proceed constructing our debt portfolio and additional monetizing our fairness portfolio, and to generate engaging risk-adjusted returns over the long-term. We intend to remain targeted on fastidiously deciding on investments in high-quality corporations that function in industries we all know nicely, generate robust free money movement, and possess resilient enterprise fashions and optimistic long-term outlooks.”

(1)   Supplemental info concerning adjusted web funding revenue:

On a supplemental foundation, we offer info referring to adjusted web funding revenue, which is a non-GAAP measure. This measure is offered along with, however not as an alternative to, web funding revenue. Adjusted web funding revenue represents web funding revenue excluding any capital features incentive payment expense or (reversal) attributable to realized and unrealized features and losses. The administration settlement with our funding adviser supplies {that a} capital features incentive payment is set and paid yearly with respect to cumulative realized capital features (however not unrealized capital features) to the extent such realized capital features exceed realized and unrealized losses. As well as, we accrue, however don’t pay, a capital features incentive payment in reference to any unrealized capital appreciation, as applicable. As such, we consider that adjusted web funding revenue is a helpful indicator of operations unique of any capital features incentive payment expense or (reversal) attributable to realized and unrealized features and losses. The presentation of this extra info shouldn’t be meant to be thought of in isolation or as an alternative to monetary outcomes ready in accordance with GAAP. Reconciliations of web funding revenue to adjusted web funding revenue are set forth in Schedule 1.

Second Quarter 2022 Monetary Outcomes

The next desk supplies a abstract of our working outcomes for the three months ended June 30, 2022, as in comparison with the identical interval in 2021 ({dollars} in 1000’s, besides per share knowledge):

The $0.7 million lower in whole funding revenue for the three months ended June 30, 2022, as in comparison with the identical interval in 2021 was primarily attributable to (i) a $0.Eight million enhance in whole curiosity revenue ensuing from a rise in common debt funding balances excellent, partially offset by a decrease weighted common yield on debt funding balances excellent, (ii) a $0.Eight million lower in dividend revenue as a result of decreased ranges of distributions acquired from fairness investments, and (iii) a $0.Eight million lower in payment revenue ensuing from a lower in modification, and origination charges, partially offset by a rise in prepayment charges.

For the three months ended June 30, 2022, whole bills, together with the bottom administration payment waivers and revenue tax provision, have been $10.1 million, a lower of $5.2 million, or (33.9%) from the $15.Three million of whole bills, together with the bottom administration payment waiver and revenue tax provision, for the three months ended June 30, 2021. The lower was primarily attributable to (i) a $0.Three million web enhance in base administration payment, together with the bottom administration payment waiver, as a result of increased common whole property, (ii) a $0.1 million enhance in curiosity and financing bills as a result of a rise in common borrowings excellent, partially offset by a lower within the weighted common rate of interest, (iii) a $1.Three million web lower within the revenue incentive payment, and (iv) a $4.Four million lower in capital features incentive payment accrued.

Web funding revenue elevated by $4.5 million, or 70.1%, to $11.Zero million through the three months ended June 30, 2022 as in comparison with the identical interval in 2021, on account of the $5.2 million lower in whole bills, together with base administration payment waiver and revenue tax provision, partially offset by the $0.6 million lower in whole funding revenue. Adjusted web funding revenue,⁽¹⁾ which excludes the capital features incentive payment accrual, was $0.43 per share, in-line with the prior yr.

For the three months ended June 30, 2022, the full web realized acquire/(loss) on investments, web of revenue tax (provision)/profit on realized features, was $18.2 million, as in comparison with whole web realized acquire/(loss) on investments, web of revenue tax (provision)/profit on realized features, of $2.2 million for a similar interval in 2021.

Portfolio and Funding Actions

As of June 30, 2022, the truthful worth of our funding portfolio totaled $810.5 million and consisted of 73 energetic portfolio corporations and twelve portfolio corporations which have offered their underlying operations. Our whole portfolio investments at truthful worth have been roughly 109.6% of the associated value foundation as of June 30, 2022. As of June 30, 2022, 39 portfolio firm’s debt investments bore curiosity at a variable fee, which represented $467.2 million, or 69.8%, of our debt funding portfolio on a good worth foundation, and the rest of our debt funding portfolio was comprised of mounted fee investments. As of June 30, 2022, our common energetic portfolio firm funding at amortized value was $10.1 million, which excludes investments within the twelve portfolio corporations which have offered their underlying operations. The weighted common yield on debt investments was 11.9% as of June 30, 2022. The weighted common yield was computed utilizing the efficient rates of interest for debt investments at value as of June 30, 2022, together with the accretion of authentic difficulty reductions and mortgage origination charges, however excluding investments on non-accrual standing and investments recorded as a secured borrowing, if any.

Second quarter 2022 funding exercise included the next new portfolio firm investments:

• Selection Know-how Options, LLC (dba Selection Service provider Options, LLC), a number one omnichannel international funds platform. Fidus invested $8.5 million in first lien debt and made a dedication as much as $1.Zero million of extra first lien debt.
• Virtex Enterprises, LP, a number one vertically built-in digital manufacturing companies supplier. Fidus invested $11.Zero million in second lien debt.

Liquidity and Capital Sources

As of June 30, 2022, we had $72.5 million in money and money equivalents and $100.Zero million of unused capability beneath our senior secured revolving credit score facility (the “Credit score Facility”). As of June 30, 2022, we had SBA debentures excellent of $128.5 million, $125.Zero million excellent of our 4.75% notes due January 2026 (the “January 2026 Notes”) and $125.Zero million excellent of our 3.50% notes due November 2026 (the “November 2026 Notes” and collectively with the January 2026 Notes the “Notes”). As of June 30, 2022, the weighted common rate of interest on whole debt excellent was 3.8%.

Subsequent Occasions

On July 6, 2022, we issued an extra $7.5 million in SBA debentures, which can pool in September 2022. Till the pooling date, the debentures bear curiosity at a hard and fast fee interim rate of interest of two.766%.

On July 8, 2022, we invested $7.Eight million in first lien debt, $2.Zero million in subordinated debt, and $1.Zero in widespread fairness of AmeriWater, LLC, a number one supplier of water purification methods and aftermarket components & consumables for healthcare and industrial functions.

On July 12, 2022, we exited our fairness funding in Palisade Firm, LLC. We acquired a distribution on our widespread fairness funding for a realized acquire of roughly $1.9 million.

On July 18, 2022 we made a dedication of $4.9 million in second lien debt of Magenta Purchaser, LLC, (dba Trellix), a number one international cybersecurity firm.

On July 27, 2022, we exited our fairness funding in Bandon Health (Texas) Inc. We acquired a distribution on our widespread fairness funding for a realized acquire of roughly $3.2 million.

On July 29, 2022, we exited our debt funding in Bedford Precision Elements LLC. We acquired cost in filled with $4.5 million on our first lien debt.

On August 1, 2022, we acquired a distribution on our widespread fairness funding in SES Buyers, LLC (dba SES Foam), leading to a realized acquire of roughly $9.Zero million.

On August 1, 2022, we exited our debt funding in Healthfuse, LLC. We acquired cost in filled with $5.Three million on our first lien debt, which features a prepayment payment.

On August 2, 2022, we offered a portion of our fairness funding in Pfanstiehl, Inc. and realized a acquire of roughly $24.Three million. Along side the transaction, we invested $10.Zero million in subordinated debt.

On August 3, 2022, we made a dedication of $20.Zero million in first lien debt of BP Thrift Purchaser LLC (dba Distinctive and Eco Thrift), an proprietor and operator of retail thrift shops.

Third and Fourth Quarter 2022 Dividends Declared

On August 1, 2022, our board of administrators declared a base dividend of $0.36 per share and a supplemental dividend of $0.07 per share for the third quarter, that are payable on September 23, 2022, to stockholders of document as of September 9, 2022. As well as, our board of administrators declared a base dividend of $0.36 per share and a supplemental dividend of $0.07 per share for the fourth quarter, that are payable on December 16, 2022, to stockholders of document as of December 2, 2022.

When declaring dividends, our board of administrators evaluations estimates of taxable revenue out there for distribution, which differs from consolidated revenue beneath GAAP as a result of (i) adjustments in unrealized appreciation and depreciation, (ii) non permanent and everlasting variations in revenue and expense recognition, and (iii) the quantity of undistributed taxable revenue carried over from a given yr for distribution within the following yr. The ultimate dedication of 2022 taxable revenue, in addition to the tax attributes for 2022 dividends, can be made after the shut of the 2022 tax yr. The ultimate tax attributes for 2022 dividends will usually embody peculiar taxable revenue however may additionally embody capital features, certified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that gives for reinvestment of dividends on behalf of its stockholders, until a stockholder elects to obtain money. Consequently, after we declare a money dividend, stockholders who haven’t “opted out” of the DRIP not less than two days previous to the dividend cost date can have their money dividends routinely reinvested in extra shares of our widespread inventory. These stockholders whose shares are held by a dealer or different monetary middleman might obtain dividends in money by notifying their dealer or different monetary middleman of their election.

Second Quarter 2022 Monetary Outcomes Convention Name

Administration will host a convention name to debate the working and monetary outcomes at 9:00am ET on Friday, August 5, 2022. To take part within the convention name, please dial (646) 307-1963 roughly 10 minutes previous to the decision. Worldwide callers ought to dial (800) 715-9871. Please reference convention ID # 1174205.

A dwell webcast of the convention name can be out there at http://investor.fdus.com/events-presentations. Please entry the web site 15 minutes previous to the beginning of the decision to obtain and set up any vital audio software program. An archived replay of the convention name may also be out there within the investor relations part of the Firm’s web site.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Funding Company supplies custom-made debt and fairness financing options to decrease middle-market corporations, which administration usually defines as U.S. primarily based corporations with revenues between $10 million and $150 million. The Firm’s funding goal is to supply engaging risk-adjusted returns by producing each present revenue from debt investments and capital appreciation from fairness associated investments. Fidus seeks to accomplice with enterprise homeowners, administration groups and monetary sponsors by offering custom-made financing for change of possession transactions, recapitalizations, strategic acquisitions, enterprise enlargement and different progress initiatives.

Fidus is an externally managed, closed-end, non-diversified administration funding firm that has elected to be handled as a enterprise improvement firm beneath the Funding Firm Act of 1940, as amended. As well as, for tax functions, Fidus has elected to be handled as a regulated funding firm beneath Subchapter M of the Inside Income Code of 1986, as amended. Fidus was shaped in February 2011 to proceed and develop the enterprise of Fidus Mezzanine Capital, L.P., which commenced operations in Could 2007 and is licensed by the U.S. Small Enterprise Administration as a Small Enterprise Funding Firm (SBIC).

FORWARD-LOOKING STATEMENTS

This press launch might include sure forward-looking statements that are primarily based upon present expectations and are inherently unsure, together with, however not restricted to, statements concerning the future efficiency and monetary situation of the Firm, the prospects of our present and potential portfolio corporations and the monetary situation and skill of our present and potential portfolio corporations to realize their goals. Any such statements, apart from statements of historic truth, are prone to be affected by different unknowable future occasions and circumstances, together with parts of the long run which are or should not beneath the Firm’s management, and that the Firm might or might not have thought of, similar to adjustments within the monetary and lending markets and the impression of rate of interest volatility, together with the decommissioning of LIBOR and rising rates of interest; accordingly, such statements can’t be ensures or assurances of any side of future efficiency. Precise developments and outcomes are extremely prone to fluctuate materially from these estimates and projections of the long run on account of a lot of components associated to adjustments within the markets by which the Firm invests, adjustments within the monetary, capital, and lending markets, and different components described occasionally within the Firm’s filings with the Securities and Trade Fee. Such statements communicate solely as of the time when made, and are primarily based on info out there to the Firm as of the date hereof and are certified of their entirety by this cautionary assertion. The Firm undertakes no obligation to replace any such assertion now or sooner or later, besides as required by relevant legislation.

FIDUS INVESTMENT CORPORATION
Consolidated Statements of Belongings and Liabilities
(in 1000’s, besides shares and per share knowledge)

FIDUS INVESTMENT CORPORATION
Consolidated Statements of Operations (unaudited)
(in 1000’s, besides shares and per share knowledge)

Schedule 1

Supplemental Data Relating to Adjusted Web Funding Earnings

On a supplemental foundation, we offer info referring to adjusted web funding revenue, which is a non-GAAP measure. This measure is offered along with, however not as an alternative to, web funding revenue. Adjusted web funding revenue represents web funding revenue excluding any capital features incentive payment expense or (reversal) attributable to realized and unrealized features and losses. The administration settlement with our funding advisor supplies {that a} capital features incentive payment is set and paid yearly with respect to cumulative realized capital features (however not unrealized capital features) to the extent such realized capital features exceed realized and unrealized losses for such yr, much less the combination quantity of any capital features incentive charges paid in all prior years. As well as, we accrue, however don’t pay, a capital features incentive payment in reference to any unrealized capital appreciation, as applicable. As such, we consider that adjusted web funding revenue is a helpful indicator of operations unique of any capital features incentive payment expense or (reversal) attributable to realized and unrealized features and losses. The presentation of this extra info shouldn’t be meant to be thought of in isolation or as an alternative to monetary outcomes ready in accordance with GAAP. The next desk supplies a reconciliation of web funding revenue to adjusted web funding revenue for the three and 6 months ended June 30, 2022 and 2021.