NEW YORK, Feb. 2, 2015 (GLOBE NEWSWIRE) -- CM Finance Inc. (Nasdaq:CMFN), previously announced that on January 28, 2015, the Company's board of directors declared a first calendar quarter distribution of $0.3469 per share payable on April 2, 2015 to shareholders of record as of March 18, 2015.
The distribution is a 2.8% increase over quarterly distributions in 2014 and represents a 9.25% return on the IPO price of $15.00 per share in February, 2014. Based on the closing price of $11.41 per share on January 29, 2015, the dividend represents a yield of 12.2%.
In connection with the Company's IPO, the investment manager had agreed to permanently waive: (i) all or portions of the incentive fee for 2015 and 2016, to the extent required to support an annualized dividend yield of 9.25% and 9.375% per annum, respectively, based on the IPO price.
Mr. Michael C. Mauer, the Company's Chief Executive Officer, said, "CM Finance is committed to delivering an attractive return to shareholders and growing it over time. We continue to focus on generating an appropriate risk adjusted return to our stockholders and supporting it through one of the most favorable incentive fee structures in the industry given the fee waivers in place through 2016."
About CM Finance Inc
The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's primary investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation by investing directly in debt and related equity of privately held lower middle market companies to help these companies fund acquisitions, growth or refinancing. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation and amortization of at least $15 million. The Company's investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about CM Finance Inc., please visit www.cmfn-inc.com.
Forward-Looking Statements
Statements included herein may contain "forward-looking statements," which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.