PORTFOLIO: IVQ 2017
As of December 31, 2017, our portfolio totaled $11.8 billion of fair value and we had total assets of $12.3 billion. At December 31, 2017, the weighted average yield on our debt and other income producing securities at amortized cost was 9.7% and the weighted average yield on total investments at amortized cost was 8.7%, up from the 9.6% and 8.5%, respectively that we reported at September 30, 2017. Our portfolio yields increased since the end of the third quarter, primarily from the increase in LIBOR.
Our stockholders’ equity at December 31st was $7.1 billion, resulting in net asset value per share of $16.65, up 1% compared to a quarter-ago as well as up 1% from December 31, 2016. As of December 31, 2017, our debt-to-equity ratio was 0.7 times and our debt-to-equity ratio net of available cash of approximately $260 million was 0.66 times. At December 31, 2017, we had approximately $2.5 billion of undrawn availability, primarily under our revolving credit facilities subject to borrowing base and other restrictions.
During the fourth quarter, we had three positions come off non-accrual compared to two new non-accrual investments. At the end of the fourth quarter, non-accruals as a percent of the total portfolio at cost, decreased to 3.1% as compared to the third quarter at 3.4%. When looking at non-accruals at fair value, they increased slightly from 0.9% in Q3 2017 to 1.4% in Q4 2017. Despite this modest increase, we feel the portfolio is well-positioned and we have significant capabilities to manage any non-performing investments.
VARSITY BRANDS: IVQ 2017 CC
Q: I would like to dig into Varsity Brands. I understand that this was an attractive investment for you that you’ve grown with over time. However, can you talk about the comfort you have in allowing the sponsor to take $300 million in a divi off the table while you enter into a subordinated position in the credit obviated as second lien term loan for a longer tenure at a fairly tight spread?
We like the company. We can invest in the company for a long time. We’ve got a lot of confidence in the sponsor. To be clear, it’s a second lien investment, not a subordinated debt investment. And I don’t think we’d be first the person who have done a dividend recap in the last two or three years.