Quarterly report pursuant to Section 13 or 15(d)

Stockholders' Equity

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Stockholders' Equity
 9 Months Ended
Sep. 30, 2011
Stockholders' Equity [Abstract]  
Stockholders' Equity
6. Stockholders’ Equity

The following table summarizes the changes in stockholders’ equity for the nine months ended September 30, 2011:

 

                                                         
    Preferred
Stock		     Senior
Common
Stock		     Common
Stock		     Capital in
Excess of
Par Value		     Notes
Receivable
from
Employees		     Distributions
in Excess of
Accumulated
Earnings		     Total
Stockholders’
Equity		  
               
                                                         
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

Balance at December 31, 2010

   $ 2     $ —       $ 9     $ 174,261     $ (963 )    $ (61,934 )    $ 111,375  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
               

Issuance of common stock, net

     —         —         2       37,247       —         —         37,249  
               

Repayment of principal on employee notes receivable

     —         —         —         —         537       —         537  
               

Distributions declared to common, senior common and preferred stockholders

     —         —         —         —         —         (14,467 )      (14,467 ) 
               

Net income

     —         —         —         —         —         4,598       4,598  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  
               

Balance at September 30, 2011

   $ 2     $ —       $ 11     $ 211,508     $ (426 )    $ (71,803 )    $ 139,292  
   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

  

The following table is a summary of all outstanding notes issued to employees of the Adviser for the exercise of stock options:

 

                                                     

Date Issued

   Number
of
Options
Exercised		     Strike
Price of
Options
Exercised		     Amount of
Promissory
Note
Issued to
Employees		     Outstanding
Balance of
Employee
Loans at
September 30,
2011		     Outstanding
Balance of
Employee
Loans at
December 31,
2010		     Maturity
Date of
Note		   Interest
Rate
on
Note		  
               

Sep 2004

     25     $ 15.00     $ 375     $ 15     $ 20     Sep 2013     5.00 % 

Apr 2006

     12       16.10       193       4       5     Apr 2015     7.77 % 

May 2006

     50       16.85       843       —         531     May 2016     7.87 % 

May 2006

     2       16.10       32       32       32     May 2016     7.87 % 

Nov 2006

     25       15.00       375       375       375     Nov 2015     8.15 % 
   

 

 

            

 

 

    

 

 

    

 

 

              
               
      114             $ 1,818     $ 426     $ 963              
   

 

 

            

 

 

    

 

 

    

 

 

              

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, these notes were recorded as full recourse loans to employees and are included in the equity section of the accompanying consolidated balance sheets. As of September 30, 2011, each loan maintained its full recourse status.

 

The Company’s Board of Directors declared the following distributions per share for the three and nine months ended September 30, 2011 and 2010:

 

                                 
    For the three months ended
September 30,		     For the nine months ended
September 30,		  
    2011     2010     2011     2010  
         

Common Stock

   $ 0.375     $ 0.375     $ 1.125     $ 1.125  

Senior Common Stock

   $ 0.2625     $ 0.2625     $ 0.7875     $ 0.5250  

Series A Preferred Stock

   $ 0.4843749     $ 0.4843749     $ 1.4531247     $ 1.4531247  

Series B Preferred Stock

   $ 0.4688     $ 0.4688     $ 1.4063     $ 1.4063  

On February 2, 2011, the Company sold 725,000 shares of its common stock at $18.35 per share in an underwritten public offering of its common stock. The Company also granted the underwriters a 30-day option to purchase up to 108,750 shares of common stock on the same terms and conditions to cover over-allotments. On February 11, 2011, the underwriters exercised their option to purchase an additional 108,750 shares of common stock. The net proceeds, including the over-allotment, after deducting the underwriting discount and offering expenses were $14,325. The Company used the proceeds of the offering to repay a portion of the outstanding balance under its line of credit and for general corporate purposes.

On June 15, 2011, the Company sold 1,200,000 shares of its common stock at $17.55 per share in an underwritten public offering of its common stock. The Company also granted the underwriters a 30-day option to purchase up to 180,000 shares of common stock on the same terms and conditions to cover over- allotments. On July 6, 2011, the underwriters exercised their option to purchase an additional 174,000 shares of common stock. The net proceeds, including the over-allotment, after deducting the underwriting discount and offering expenses were $22,705. The Company used the proceeds of the offering to repay a portion of the outstanding balance under its line of credit and for general corporate purposes.

The Company has an open market sale agreement, or the Open Market Sale Agreement, with Jefferies & Company, Inc., or Jefferies, under which it may, from time to time, offer to sell shares of its common stock with an aggregate sales price of up to $25,000 on the open market through Jefferies, as agent, or to Jefferies, as principal. As of September 30, 2011, the Company had sold 192,365 shares with net proceeds of $3,400, and has a remaining capacity to sell up to $21,600 of common stock under the Open Market Sale Agreement with Jefferies. The program was not utilized during 2011.

On March 28, 2011, the Company commenced an offering of an aggregate of 3,500,000 shares of its 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 are intended to be offered pursuant to the primary offering and 500,000 shares are intended to be offered pursuant to the Company’s distribution reinvestment plan (the “DRIP”). The Company, however, reserves the right to reallocate the number of shares being offered between the primary offering and the DRIP. To date the Company has not sold any shares of senior common stock in this ongoing offering.