Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 6 Months Ended
Jun. 30, 2015
Equity [Abstract]  
Stockholders' Equity

10. Stockholders’ Equity

The following table summarizes the changes in our stockholders’ equity for the six months ended June 30, 2015 (dollars in thousands):

 

                                                    Distributions in
Excess of
Accumulated
Earnings		     Total
Stockholders’
Equity		  
    Shares Issued                       Additional
Paid in
Capital		     Notes
Receivable
from
Employees		      
    Preferred
Stock		     Senior Common
Stock		     Common
Stock		     Preferred
Stock		     Senior Common
Stock		     Common
Stock		          

Balance at December 31, 2014

     2,150,000        809,411        19,589,606      $ 2      $ 1      $ 20      $ 369,748      $ (375 )    $ (151,724 )    $ 217,672   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Issuance of senior common stock and common stock, net

     —          186,441        1,554,380        —          —          1        29,672        —          —          29,673   

Distributions declared to common, senior common and preferred stockholders

     —          —          —          —          —          —          —          —          (17,971 )      (17,971 ) 

Principal repayments of employee notes receivable

     —          —          —          —          —          —          —          375        —          375   

Net income

     —          —          —          —          —          —          —          —          1,125        1,125   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at
June 30, 2015

     2,150,000        995,852        21,143,986      $ 2      $ 1      $ 21      $ 399,420      $ —        $ (168,570 )    $ 230,874   
 

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Distributions

Our Board of Directors declared the following distributions per share for the three and six months ended June 30, 2015 and 2014:

 

     For the three months ended June 30,      For the six months ended June 30,  
     2015      2014      2015      2014  

Common Stock

    $ 0.375       $ 0.375       $ 0.75       $ 0.75   

Senior Common Stock

      0.2625         0.2625         0.525         0.525   

Series A Preferred Stock

      0.4843749         0.4843749         0.9687498         0.9687498   

Series B Preferred Stock

      0.4688         0.4688         0.9375         0.9375   

Series C Preferred Stock

      0.4453         0.4453         0.8906         0.8906   

ATM Program

On September 2, 2014 we entered into an open market sale agreement, or the ATM Program, with Cantor Fitzgerald & Co., or Cantor Fitzgerald, pursuant to which we may, from time to time, offer to sell shares of our common stock with an aggregate sales price of up to $100.0 million on the open market through Cantor Fitzgerald, acting as sales agent and/or principal. During the six months ended June 30, 2015, we raised approximately $27.2 million in net proceeds under the ATM Program. As of June 30, 2015, under the existing program, we have sold a total of 3.4 million shares with aggregate gross proceeds of $60.1 million, and have a remaining capacity to sell up to $39.9 million of common stock under the ATM Program with Cantor Fitzgerald.

Senior Common Program

In March 2011, we commenced an offering of an aggregate of 3,500,000 shares of our Senior Common Stock, par value $0.001 per share, at a price to the public of $15.00 per share, of which 3,000,000 shares were intended to be offered pursuant to the primary offering and 500,000 shares were intended to be offered pursuant to our senior common distribution reinvestment plan, or the DRIP. We elected not to extend this offering, which terminated according to its terms on March 28, 2015. During the three months ended March 31, 2015, we sold 189,052 shares of our Senior Common Stock at $15.00 per share and issued 5,134 shares of our Senior Common Stock under the Dividend Reinvestment Plan, or DRIP, program. The net proceeds, after deducting the underwriting discount and commission, were $2.6 million. At the conclusion of the offering on March 28, 2015, we had sold 927,994 shares of Senior Common Stock, for gross proceeds of $13.9 million, and issued an additional 27,038 shares of Senior Common Stock under the DRIP program.

Note to Employee

The following table is a summary of the note issued to an employee of the Adviser for the exercise of stock options (dollars in thousands). The note, and all corresponding interest, was repaid in full on May 7, 2015:

 

Date Issued

    Outstanding Balance
of Employee Loan at
June 30, 2015		      Outstanding Balance
of Employee Loan at
December 31, 2014		      Maturity Date
of Note		      Interest Rate
on Note		  

Nov 2006

    $ —         $ 375         Nov 2015         8.15 % 

The employee stock option program terminated in 2006. In accordance with ASC 505-10-45-2, “Equity,” receivables from employees for the issuance of capital stock to employees prior to the receipt of cash payment should be reflected in the balance sheet as a reduction to stockholders’ equity. Therefore, this note was recorded as a full recourse loan to the employee and is included in the equity section of the accompanying condensed consolidated balance sheets.