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 no less than $0.07 Per Share for Fourth Quarter 2022

EVANSTON, Unwell., Aug. 04, 2022 (GLOBE NEWSWIRE) — Fidus Funding Company (NASDAQ:FDUS) (“Fidus” or the “Firm”), a supplier of personalized debt and fairness financing options, primarily to decrease middle-market firms primarily based in america, at this time introduced its monetary outcomes for the second quarter ended June 30, 2022.

Second Quarter 2022 Monetary Highlights

• Complete funding revenue of $21.2 million

• Internet 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⁾

• Internet 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 firms

• Obtained 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

• Internet 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 properly with debt investments delivering greater curiosity revenue on year-over-year progress in our debt portfolio, and fairness investments producing web realized good points 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 properly positioned to proceed constructing our debt portfolio and additional monetizing our fairness portfolio, and to generate enticing risk-adjusted returns over the long-term. We intend to remain targeted on rigorously deciding on investments in high-quality firms that function in industries we all know properly, generate sturdy free money move, and possess resilient enterprise fashions and optimistic long-term outlooks.”

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(1)   Supplemental info relating to 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 good points incentive charge expense or (reversal) attributable to realized and unrealized good points and losses. The administration settlement with our funding adviser offers {that a} capital good points incentive charge is set and paid yearly with respect to cumulative realized capital good points (however not unrealized capital good points) to the extent such realized capital good points exceed realized and unrealized losses. As well as, we accrue, however don’t pay, a capital good points incentive charge in reference to any unrealized capital appreciation, as acceptable. As such, we consider that adjusted web funding revenue is a helpful indicator of operations unique of any capital good points incentive charge expense or (reversal) attributable to realized and unrealized good points 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 offers 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 information):

The $0.7 million lower in complete 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 complete 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 obtained from fairness investments, and (iii) a $0.Eight million lower in charge 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, complete bills, together with the bottom administration charge waivers and revenue tax provision, had been $10.1 million, a lower of $5.2 million, or (33.9%) from the $15.Three million of complete bills, together with the bottom administration charge 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 charge, together with the bottom administration charge waiver, as a result of greater common complete 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 charge, and (iv) a $4.Four million lower in capital good points incentive charge accrued.

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

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

Portfolio and Funding Actions

As of June 30, 2022, the honest worth of our funding portfolio totaled $810.5 million and consisted of 73 lively portfolio firms and twelve portfolio firms which have bought their underlying operations. Our complete portfolio investments at honest worth had 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 price, 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 fastened price investments. As of June 30, 2022, our common lively portfolio firm funding at amortized value was $10.1 million, which excludes investments within the twelve portfolio firms which have bought 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 challenge 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:

• Alternative Expertise Options, LLC (dba Alternative 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 complete 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 set price 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 frequent fairness of AmeriWater, LLC, a number one supplier of water purification methods and aftermarket elements & consumables for healthcare and industrial functions.

On July 12, 2022, we exited our fairness funding in Palisade Firm, LLC. We obtained a distribution on our frequent fairness funding for a realized achieve 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 obtained a distribution on our frequent fairness funding for a realized achieve of roughly $3.2 million.

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

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

On August 1, 2022, we exited our debt funding in Healthfuse, LLC. We obtained fee in stuffed with $5.Three million on our first lien debt, which features a prepayment charge.

On August 2, 2022, we bought a portion of our fairness funding in Pfanstiehl, Inc. and realized a achieve of roughly $24.Three million. Along with 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 file 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 file as of December 2, 2022.

When declaring dividends, our board of administrators opinions estimates of taxable revenue out there for distribution, which differs from consolidated revenue beneath GAAP as a result of (i) modifications 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 willpower of 2022 taxable revenue, in addition to the tax attributes for 2022 dividends, shall be made after the shut of the 2022 tax yr. The ultimate tax attributes for 2022 dividends will usually embody unusual taxable revenue however might also embody capital good points, 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, except a stockholder elects to obtain money. In consequence, once we declare a money dividend, stockholders who haven’t “opted out” of the DRIP no less than two days previous to the dividend fee date may have their money dividends mechanically reinvested in extra shares of our frequent inventory. These stockholders whose shares are held by a dealer or different monetary middleman could 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 shall 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 essential 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 offers personalized debt and fairness financing options to decrease middle-market firms, which administration usually defines as U.S. primarily based firms with revenues between $10 million and $150 million. The Firm’s funding goal is to offer enticing risk-adjusted returns by producing each present revenue from debt investments and capital appreciation from fairness associated investments. Fidus seeks to companion with enterprise house owners, administration groups and monetary sponsors by offering personalized financing for change of possession transactions, recapitalizations, strategic acquisitions, enterprise growth 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 Inner Income Code of 1986, as amended. Fidus was shaped in February 2011 to proceed and broaden the enterprise of Fidus Mezzanine Capital, L.P., which commenced operations in Might 2007 and is licensed by the U.S. Small Enterprise Administration as a Small Enterprise Funding Firm (SBIC).

FORWARD-LOOKING STATEMENTS

This press launch could include sure forward-looking statements that are primarily based upon present expectations and are inherently unsure, together with, however not restricted to, statements in regards to the future efficiency and monetary situation of the Firm, the prospects of our current and potential portfolio firms and the monetary situation and talent of our current and potential portfolio firms to attain their goals. Any such statements, aside from statements of historic reality, are more likely to be affected by different unknowable future occasions and circumstances, together with parts of the longer term which can be or usually are not beneath the Firm’s management, and that the Firm could or could not have thought of, equivalent to modifications 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 more likely to differ materially from these estimates and projections of the longer term because of quite a lot of elements associated to modifications within the markets through which the Firm invests, modifications within the monetary, capital, and lending markets, and different elements described occasionally within the Firm’s filings with the Securities and Alternate Fee. Such statements converse 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 Property and Liabilities
(in 1000’s, besides shares and per share information)

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

Schedule 1

Supplemental Data Relating to Adjusted Internet 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 good points incentive charge expense or (reversal) attributable to realized and unrealized good points and losses. The administration settlement with our funding advisor offers {that a} capital good points incentive charge is set and paid yearly with respect to cumulative realized capital good points (however not unrealized capital good points) to the extent such realized capital good points exceed realized and unrealized losses for such yr, much less the combination quantity of any capital good points incentive charges paid in all prior years. As well as, we accrue, however don’t pay, a capital good points incentive charge in reference to any unrealized capital appreciation, as acceptable. As such, we consider that adjusted web funding revenue is a helpful indicator of operations unique of any capital good points incentive charge expense or (reversal) attributable to realized and unrealized good points 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 offers a reconciliation of web funding revenue to adjusted web funding revenue for the three and 6 months ended June 30, 2022 and 2021.