Good day, ladies and gentlemen, and welcome to the Gladstone Investment Corporation Third Quarter Ended December 31, 2014 Earnings Call and Webcast. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to introduce your host for today's conference, Mr. David Gladstone, Chairman. Sir, you may begin.

All right. Thank you, Amanda, and hello and good morning to all of you out there. This is David Gladstone, your Chairman, and this is the third quarter earnings conference call for shareholders and analysts of Gladstone Investment Corporation, stocks traded on NASDAQ under the symbol GAIN. And there are 2 preferred stocks. One is called GAINO, and the other is GAINP. Thank you all for calling in. We love this time with shareholders and -- able to tell you about what's going on in the company you're invested in. Or if you're a potential shareholder, tell you what's going on, so you can buy some shares. We like to give updates on the company, our portfolio and the business environment. I wish we could do this more often, but we only do it once a quarter. So you have an open invitation if you're ever in the area. We're in McLean, Virginia, outside of Washington, D.C., so stop by and say hello. We're a team of about 60 people now and some of the finest people in the business. Now we're going to hear from the General Counsel, Secretary, he's also President of the Administrator, Michael LiCalsi, who'll make the statement regarding forward-looking statements. Michael?

Good morning, everyone. This conference call may include forward-looking statements within the meaning of the Securities Act of 1933 and the Securities Exchange Act of 1934, including those with regard to the future performance of the company. These forward-looking statements inherently involve certain risks and uncertainties and other factors, even though they're based on our current plans, which we believe to be reasonable. Many of these forward-looking statements can be identified by the use of words such as anticipates, believes, expects, intends, will, should, may and similar expressions. There are many factors that may cause our actual results to be materially different from any future results that are expressed or implied by these forward-looking statements, including those factors listed under the caption Risk Factors in our Form 10-K filing and our registration statement as filed with the SEC, all of which can be found on our website at www.gladstoneinvestment.com or the SEC's website, www.sec.gov. And the company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. And please also note that past performance or market information is not a guarantee of future results. And please take the opportunity to visit our website, www.gladstoneinvestment.com, and sign up for our email notification service. You can also follow us on Facebook, the keyword The Gladstone Companies, and on Twitter, keyword GladstoneComps. The presentation today will be an overview, so we ask that you read our press release issued yesterday and also to review our Form 10-Q for the December 2014 quarter end, which we filed yesterday with the SEC. And you can access that on our website as well as the press release, www.gladstoneinvestment.com. Now let's turn to the President of the fund, David Dullum.

Thanks, Michael, and good morning to everyone. Generally, I'd like to briefly review what it is that we actually do here at GAIN, and this helps really to keep us focused on what our long-term goals are for GAIN while we update here and discuss the near-term results. So Gladstone Investment provides capital for the buy-out of businesses generally with annual sales between $20 million to $100 million. Our investment in any one company is comprehensive in that it usually consists of senior and subordinated debt in combination with equity. This combination of debt and equity produces the mix of assets which is the basis of our strategy for Gladstone Investment. Whereby the debt portion of our investment provides the income to pay and grow our monthly distributions, and then we look to the equity portion to increase the value and provide capital gains going forward from time to time. We might think about how are we different from other BDCs and other finance companies in that while we take a large equity position in the companies that we purchase, and that differs from other public BDCs, business development companies, that are predominantly debt-focused. So for instance, the proportion of equity and debt for the investments in our portfolio is approximately 30% to 70%. Most other BDCs' portfolios are around 10% to 90% in their proportion of equity to debt. As to other private equity funds, which are generally 10-year term private partnerships with a longer liquidity horizon for the investors, we are different in that, as a publicly traded entity, our structure allows daily liquidity for shareholders, frankly, just by going to the stock exchange and trading the stock. So also, we are able to keep an investment longer in our portfolio as we do generate income prior to…

Thank you. Good morning, everyone. The big news this quarter is that we originated 2 new deals totaling over $44 million, and we raised $41 million in new preferred equity. These actions have enabled us to expand our balance sheet and raise capital for future new deals. At the end of the December quarter, we had $412 million in total assets on our balance sheet, consisting of $394 million in investments at fair value, $5 million in cash and $13 million in other assets. Our portfolio at fair value increased by over 13% quarter-over-quarter. Our portfolio's allocation at cost is currently $333 million in debt investments to $124 million in equity investments, which is 73% to 27% debt to equity. The equity portion is where we have in the past, and hope to continue, to produce capital gains. As for our liabilities, at December 31, 2014, we had $96 million in borrowings outstanding on our $185 million credit facility, $81 million in term preferred stock and $9 million in other liabilities. Listeners will remember that in June 2014, we amended our credit facility, which allowed us to extend the maturity date of our line of credit to June 2017 plus 2 1-year extensions. We were also able to reduce our cost of capital by decreasing the interest rate from LIBOR plus 3.75% to LIBOR plus 3.25%. In addition, in September 2014, we upsized our credit facility capacity from $105 million to $185 million by adding additional lenders. In November 2014, we successfully completed a public offering of approximately 1.7 million shares of 6.75% Series B preferred stock at a public offering price of $25 per share. Gross proceeds totaled $41.4 million, and net proceeds after deducting underwriting discounts and operating expenses borne by us were $39.7 million. While these capital-raising…

All right, Melissa. Thank you for that good report. Thanks to Michael and Dave for their good reports. Gladstone Investment's third quarter was a great quarter. We're able to report some great accomplishments such as the strong origination activity, the Series B preferred stock offering and our onetime extra dividend. Net investment income of $0.22 a share exceeded our distribution run rate of $0.18 per share, and we believe we can continue the success going forward, especially for the quarter ending March 31, 2015. Each year in April, Dave Dullum and now Melissa Morrison, our CFO, work on the projections in an effort to figure out what we're going to have for income for the next year. And right now, it's a daunting task because you never want to increase the dividend and then not earn the dividend. Our board is very conservative. They don't want to raise the dividend and then not earn it or, worse yet, have to cut it. So it's a bit too early in the process to predict the dividend for the fiscal year ending March 31, 2016. We just have to wait and see what happens when we go through all of that analysis in April. So looking at the outlook for this company and, really, for all of the companies in the United States, it's just been a very sluggish recovery. We still have the same economic concerns that we mention each quarter. There's still a great deal of uncertainty around the Federal Reserve's monetary policy and the impact it will have on future interest rates. And while we have variable interest rates on most of our loans, increasing rates won't hurt us, but it's really not good for the economy or for the people borrowing money from us. The volatility in oil…

[Operator Instructions] I'm showing no questions at this time. I would like to turn the call back to David Gladstone for any closing remarks.

Okay. We have no questions. That's unusual. We usually get 2, 3, 4 questions. And so we'll move on now. And thank you all for calling in. And please read the Ks and Qs and our filings. And we'll go from there, so that's the end of this call.

Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone, have a great day.