UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 ___________________________________

 

FORM 8-K

 

Current Report Pursuant to Section 13 or 15(d) of

the Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported):

 

May 8, 2014

 

GSV CAPITAL CORP.

(Exact name of registrant as specified in its charter)

 

Maryland 1-35156 27-4443543
(State or other jurisdiction (Commission File Number) (I.R.S. Employer Identification No.)
of incorporation)    

 

2925 Woodside Road

Woodside, CA 94062

(Address of principal executive offices and zip code)

 

Registrant’s telephone number, including area code: (650) 235-4769

 

Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

 
 

 

Item 2.02     Results of Operations and Financial Condition.

 

On May 8, 2014, the registrant issued a press release announcing its financial results for the fiscal quarter ended March 31, 2014. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

 

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, as amended, except as expressly set forth by specific reference in such filing.

 

Item 9.01 Financial Statements and Exhibits.

 

(a)Not applicable.

 

(b)Not applicable.

 

(c)Not applicable.

 

(d)Exhibits.

 

Exhibit No.   Description
     
99.1   Press release dated May 8, 2014

 

 
 

 

SIGNATURES

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

Date: May 8, 2014 GSV CAPITAL CORP.
     
  By: /s/ Stephen D. Bard
    Stephen D. Bard
    Chief Financial Officer, Chief Compliance
    Officer, Treasurer and Corporate Secretary

 

 

 

 

 

GSV Capital Corp. Reports First Quarter 2014 Results of Operations

 

Net Asset Value of $14.91 Per Share as of March 31, 2014;

Management Announces a $10 Million Buyback Program

 

WOODSIDE, Calif., May 8, 2014 (GLOBE NEWSWIRE) — GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the first quarter ended March 31, 2014.

 

"I'm pleased to report that despite a tumultuous period in the market for growth companies, our NAV was flat for the 1st Quarter ending March 31st, at $14.91 compared to $14.91 on December 31, 2013." said Michael Moe, GSV's founder and CEO.  "While our largest position Twitter’s fair value declined $22.1 million for the quarter, it was offset by positive gains in positions such as Dropbox, Palantir, and 2U."

 

"Overall, the fundamentals of our portfolio are very strong with an estimated revenue growth of 95.6% year over year. Moreover, in the 1st Quarter we sold Facebook and Control4 shares, resulting in net realized gains of $7.9 million.  Our fourth largest position 2U successfully completed an IPO on March 28, raising $104 million.

 

Given the material discount between the share price and NAV, GSV Capital's Board of Directors have authorized a share repurchase program of GSVC stock of up to $10 million over 12 months.   Under the repurchase program, the Company may repurchase its outstanding common stock in the open market provided that the Company complies with the prohibitions under its Insider Trading polices and procedures and the guidelines specified in Rule 10-B-18 of the Securities Exchange Act of 1934.  

 

GSV management anticipates liquidating its publicly held investments within one year of the expiration of the IPO lock-up.

 

As GSV’s portfolio matures and realizes a cumulative net gain, GSV intends to distribute a portion of such gains to shareholders in the form of a distribution.

 

Portfolio as of March 31, 2014

 

At March 31, 2014, the Company owns positions in 52 portfolio companies at an aggregate fair value of $368.0 million. Out of GSV’s 52 portfolio companies, the top 10 investments represented 80.5% of net asset value, and the top three investments represented 51.4% of net asset value.

 

 
 

  

GSV Capital Corp.

Page 2 of 6

 

Top Ten Investments at March 31, 2014

 

$ in millions  Fair
Value
   % of Net
Asset Value
 
Twitter, Inc.  $80.7    28.0%
Palantir Technologies, Inc.   42.4    14.7 
Dropbox, Inc.   25.1    8.7 
2U, Inc.   14.9    5.2 
Coursera, Inc.   14.5    5.0 
Control4 Corporation   12.3    4.3 
Solexel, Inc.   11.0    3.8 
SugarCRM, Inc.   10.5    3.7 
Avenues Global Holdings, LLC   10.2    3.6 
JAMF Holdings   10.0    3.5 
Total  $231.6    80.5%

 

Net assets totaled $288.0 million or $14.91 per share at March 31, 2014, as compared to $14.91 per share at December 31, 2013, and $12.69 per share at March 31, 2013.

 

First Quarter 2014 Portfolio Investment Activity

 

During the first quarter of 2014, GSV invested $21.8 million. New portfolio companies include Lyft, Inc. (peer to peer ridesharing), and EdSurge, Inc. (education media platform) and General Assembly, Inc. (21st century educational bootcamp). GSV made additional investments in existing portfolio companies StormWind, LLC; NestGSV, Inc.; Dailybreak, Inc.; AlwaysOn, Inc.; Fullbridge, Inc.; and JAMF Holdings.

 

GSV sold 203,700 shares of Control4 Corporation and 150,000 shares of Facebook, Inc. during the first quarter of 2014 for net proceeds of $4.6 million and $9.5 million, respectively.

 

At March 31, 2014, GSV is invested in 44 private companies and the following 8 public companies: Twitter, 2U, Control4, Chegg, Violin Memory, Silver Spring Networks, Facebook and ePals. Subsequent to quarter end, GSV Capital has made additionoal investments, including leading a $10 million round in Declara.

 

First Quarter 2014 Financial Results

 

GSV recorded a net realized gain on investments of $7,931,745 or $0.41 per share during the three months ended March 31, 2014, compared to a net realized loss on investments of $(3,346,892), or $(0.17) per share, for the three months ended March 31, 2013. Net investment loss was $(2,794,814), or $(0.14) per share, for the first quarter of 2014, compared to a net investment loss of $(2,567,725), or $(0.13) per share, for the first quarter of 2013. For the three months ended March 31, 2014, GSV had a net change in unrealized depreciation on investments of $(3,073,679), or $(0.16) per share, an increase from the prior year period due primarily to decreases in the fair value of Twitter, Inc. and Facebook, Inc. Net increase in net assets resulting from operations was $79,704, or $0.00 per share, for the three months ended March 31, 2014. This compares to a net decrease in net assets resulting from operations of $(7,491,255), or $(0.39) per share, for the three months ended March 31, 2013. Weighted average common shares outstanding were 19.3 million for the three months ended March 31, 2014 and March 31, 2013, respectively.

 

 
 

 

GSV Capital Corp.

Page 3 of 6

  

Conference Call and Webcast; Live Twitter Updates

 

Management will hold a conference call and webcast with live tweeting for investors today at 2:00 p.m. PT (5:00 p.m. ET).

 

Conference Call

The conference call number for U.S. participants is (877) 941-1466 and the conference call number for participants outside the U.S. is (480) 629-9867. The conference ID number for both call numbers is 4681236.

 

Webcast

Interested parties can listen to a live webcast of the call from the “Investors” section of GSV Capital’s website at http://investors.gsvcap.com/events.cfm.

 

Twitter

GSV Capital will also provide live updates via Twitter during the conference call. To access the tweets, follow GSV Capital on Twitter: @gsvcap

 

Replay

A replay of the conference call may be accessed through May 15, 2014 by dialing (800) 406-7325 (U.S.) or (303) 590-3030 (international), using conference ID number 4681236. An archived replay of the webcast will be available for 12 months following the live presentation.

 

About GSV Capital Corp.

 

GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the fund seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com

 

www.gsvcap.com

Follow GSV Capital on Twitter: @gsvcap

 

The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750

 

Forward-Looking Statements

 

Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.

 

Contact

 

Financial Profiles, Inc.

Kristen Papke, (310) 622-8225

gsv@finprofiles.com

 
 

 

GSV Capital Corp.

Page 4 of 6

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

   March 31, 2014   December 31, 2013 
ASSETS          
Investments at fair value:          
Investments in controlled securities (cost of $7,033,130 and $0, respectively)  $8,012,556   $- 
Investments in affiliated securities (cost of $63,818,718 and $64,912,527, respectively)   60,038,914    62,740,162 
Investments in non-control/non-affiliated securities (cost of $224,585,818 and $214,796,591, respectively)   299,972,346    292,643,491 
Investments owned and pledged (cost of $9,054,451 and $10,845,236, respectively)   9,089,805    10,865,200 
Investments in United States Treasury Bill (cost of $80,000,584 and $0, respectively)   79,999,900    - 
      Total Investments (cost of $384,492,701 and $290,554,354, respectively)   457,113,521    366,248,853 
           
Cash   4,063,165    7,219,203 
Restricted cash   22,139    22,264 
Deposit with Broker   10,000,000    - 
Due from:          
   GSV Asset Management(1)   -    3,039 
   Portfolio companies(1)   140,804    153,178 
Interest receivable   40,684    7,304 
Prepaid expenses   128,909    49,739 
Coupon interest receivable   -    11,141 
Dividend receivable   -    13,233 
Deferred credit facility fees   244,306    288,249 
Deferred debt issuance costs   3,201,159    3,378,121 
Deferred offering costs   228,285    184,710 
Other assets   334,575    368,524 
           
Total Assets   475,517,547    377,947,558 
           
LIABILITIES          
Due to:          
   GSV Asset Management   603,199    563,978 
Accounts payable   333,474    382,165 
Accrued incentive fees   11,493,204    10,523,552 
Accrued interest payable   171,063    1,056,563 
Accrued expenses   33,700    - 
Payable for securities purchased   80,000,584    - 
Net deferred tax liability   8,291,196    8,320,561 
Line of Credit   18,000,000    - 
Convertible senior notes embedded derivative liability   179,000    799,000 
Convertible senior notes payable 5.25% due September 15, 2018   68,365,979    68,335,295 
           
Total Liabilities   187,471,399    89,981,114 
           
Commitments and contingencies (Note 6)          
           
Net Assets  $288,046,148   $287,966,444 
           
NET ASSETS          
Common stock, par value $0.01 per share          
(100,000,000 authorized; 19,320,100 issued and outstanding)  $193,201   $193,201 
Paid-in capital in excess of par   275,837,514    275,837,514 
Accumulated net investment loss   (21,987,215)   (19,192,401)
Accumulated net realized loss on investments   (8,967,092)   (13,660,306)
Accumulated net unrealized appreciation (depreciation) on investments   42,969,740    44,788,436 
           
Net Assets  $288,046,148   $287,966,444 
           
Net Asset Value Per Share  $14.91   $14.91 

  

(1) This balance is a related party transaction. Refer to Note 2 for more detail.

 

 
 

  

GSV Capital Corp.

Page 5 of 6

GSV CAPITAL CORP. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF OPERATIONS

 

   Three months
ended
March 31, 2014
   Three months ended
March 31, 2013
 
INVESTMENT INCOME          
Interest income from affiliated securities  $39,928   $- 
Dividend income from affiliated securities   887    - 
Dividend income from non-control/non-affiliated securities   -    4,535 
Total Investment Income   40,815    4,535 
           
OPERATING EXPENSES          
Investment management fees   1,756,196    1,283,599 
Accrued incentive fees   969,652    - 
Costs incurred under administration agreement   908,532    887,984 
Directors’ fees   65,000    65,250 
Professional fees   456,539    236,886 
Interest and credit facility expense   1,179,725    - 
Insurance expense   59,736    53,013 
Investor relations expense   54,912    43,562 
Other expenses   18,251    1,966 
Gain on fair value adjustment for embedded derivative   (620,000)   - 
Total Operating Expenses   4,848,543    2,572,260 
           
Benefit for taxes on net investment loss   2,012,914    - 
           
Net Investment Loss   (2,794,814)   (2,567,725)
           
Net Realized Gain (Loss) on Investments   7,931,745    (3,346,892)
           
Benefit / (Provision) for taxes on Net Realized Capital Gains / (Losses)   (3,238,531)   - 
           
Net Change in Unrealized Depreciation on Investments   (3,073,679)   (1,576,638)
           
Benefit for taxes on Unrealized Depreciation of investments   1,254,983    - 
           
Net Increase (Decrease) in Net Assets Resulting From Operations  $79,704   $(7,491,255)
           
Net Increase (Decrease) in Net Assets Resulting From Operations Per Common Share – basic and diluted  $0.00   $(0.38)
           
Weighted Average Common Shares Outstanding:   19,320,100    19,320,100 

 

 
 

  

GSV Capital Corp.

Page 6 of 6

FINANCIAL HIGHLIGHTS

 

   Three months ended
March 31, 2014
(Unaudited)
   Three months ended
March 31, 2013
(Unaudited)
 
Per Share Data:          
Net asset value at beginning of period  $14.91   $13.07 
Net investment loss   (0.14)(1)   (0.13)(1)
Net realized gain (loss)   0.41(1)   (0.17)
Benefit / (Provision) for taxes on Net Realized Capital Gains / (Losses)   (0.17)(1)   - 
Net change in unrealized appreciation (depreciation)   (0.16)(1)   (0.08)(1)
Benefit for taxes on Unrealized Depreciation of investments   0.06(1)   - 
Net asset value at end of period  $14.91   $12.69 
           

 

(1) Based on weighted average number of shares outstanding for the year/period.