BCP Investment Corp (BCIC) 2023 Q2 法說會逐字稿

Welcome to Portman Ridge Finance Corporation's Second Quarter 2023 Earnings Conference Call. An earnings press release was distributed yesterday, August 9, after market close. A copy of the release along with an earnings presentation is available on the company's website at www.portmanridge.com in the Investor Relations section and should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC. As a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements, which are not guarantees of future performance 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 in the company's filings with the SEC.

歡迎參加波特曼里奇金融公司 2023 年第二季度收益電話會議。昨天（8 月 9 日）收盤後發布了一份收益新聞稿。該新聞稿以及收益報告的副本可在該公司網站 www.portmanridge.com 的投資者關係部分獲取，並應與該公司昨天向 SEC 提交的 10-Q 表格一併進行審查。謹此提醒，本次電話會議正在錄音以供重播之用。請注意，今天的電話會議可能包含前瞻性陳述，這些陳述不是對未來業績或結果的保證，並且涉及許多風險和不確定性。由於多種因素（包括該公司向美國證券交易委員會提交的文件中描述的因素），實際結果可能與前瞻性陳述中的結果存在重大差異。

Portman Ridge Finance Corporation assumes no obligation to update any such forward-looking statements unless required by law. Speaking on today's call will be Ted Goldthorpe, Chief Executive Officer, President and Director of Portman Ridge Finance Corporation; Jason Roos, Chief Financial Officer; and Patrick Schafer, Chief Investment Officer. With that, I would now like to turn the call over to Ted Goldthorpe, Chief Executive Officer of Portman Ridge.

除非法律要求，波特曼里奇金融公司不承擔更新任何此類前瞻性陳述的義務。 Portman Ridge Finance Corporation 首席執行官、總裁兼董事 Ted Goldthorpe 將在今天的電話會議上發言。傑森·魯斯，首席財務官；帕特里克·謝弗（Patrick Schafer），首席投資官。現在，我想將電話轉給波特曼·里奇首席執行官特德·戈德索普 (Ted Goldthorpe)。

Good morning, and thanks, everyone, for joining our second quarter 2023 earnings call. I'm joined today by our Chief Financial Officer, Jason Roos; and our Chief Investment Officer, Patrick Schafer. I'll provide brief highlights on the company's performance and activities for the quarter. Patrick will provide commentary on our investment portfolio and our markets, and Jason will discuss our operating results and financial condition in greater detail. Yesterday, Portman Ridge announced its second quarter 2023 results and continuing off the back of strong earnings momentum seen in the first quarter of 2023, we are pleased to announce a solid financial performance for Portman Ridge in both the second quarter of 2023 in the first half of 2023 overall.

早上好，感謝大家參加我們的 2023 年第二季度財報電話會議。今天我們的首席財務官傑森·羅斯 (Jason Roos) 也加入了我的行列。以及我們的首席投資官 Patrick Schafer。我將簡要介紹公司本季度的業績和活動。帕特里克將對我們的投資組合和市場發表評論，傑森將更詳細地討論我們的經營業績和財務狀況。昨天，Portman Ridge 公佈了2023 年第二季度業績，並在2023 年第一季度強勁的盈利勢頭的基礎上繼續發展，我們很高興地宣布Portman Ridge 在2023 年第二季度和上半年均實現了穩健的財務業績2023 年總體。

Our total investment income, core investment income and net investment income substantially increased as compared to the 3-month and 6-month period of last year as we continue to see the impact of rising rates have had in generating incremental revenues from our debt portfolio. Our core investment income for the second quarter of 2023 was $19.2 million, an increase of $5.5 million as compared to $13.7 million for the second quarter of 2022. Our strong performance this past quarter has allowed us to maintain our dividend of $0.69 per share, marking a $0.06 per share distribution increase as compared to the third quarter of 2022.

與去年 3 個月和 6 個月相比，我們的總投資收益、核心投資收益和淨投資收益大幅增加，因為我們繼續看到利率上升對我們的債務投資組合產生增量收入的影響。我們2023 年第二季度的核心投資收入為1,920 萬美元，比2022 年第二季度的1,370 萬美元增加了550 萬美元。我們上個季度的強勁表現使我們能夠維持每股0.69 美元的股息，標誌著與 2022 年第三季度相比，每股分配增加 0.06 美元。

In terms of a market update, M&A and deal activity picked up during the second quarter, particularly in the back half and early third quarter despite the continued macro overhang of elevated inflation rates and continued increases in the Fed funds rate. While we continue to see lender-friendly concessions on pricing and terms, the competitive dynamics are stronger than we've seen in several quarters. We remain very selective regarding new portfolio companies given the broader macroeconomic environment, but have found particularly attractive opportunities for add-on investments in existing portfolio companies looking to complete compete tuck-in acquisitions.

就市場更新而言，儘管通脹率上升和聯邦基金利率持續上升的宏觀影響持續存在，但第二季度的併購和交易活動有所回升，特別是在後半段和第三季度初。雖然我們繼續看到貸款人在定價和條款方面做出了有利於貸款人的讓步，但競爭動態比我們在幾個季度看到的更加強勁。考慮到更廣泛的宏觀經濟環境，我們對新的投資組合公司仍然非常挑剔，但我們發現對現有投資組合公司進行附加投資特別有吸引力的機會，以完成競爭性的收購。

Turning the focus back to the company. We continue to believe in the valuation of Portman Ridge as we continued repurchasing shares under our renewed stock purchase program. In Q2 of 2023, we repurchased an incremental [27,081] shares following on the trend seen throughout 2022 and the first quarter of 2023. We expect this trend of repurchasing Portman shares to continue throughout 2023 as we were able to do so. On this call, Patrick will also walk through the potential upside cases for our net asset value, but as it pertains to the current quarter performance, approximately 72% of our net losses in the investment portfolio were driven by our CLO equity positions. While this continues to be a challenging asset class given certain structural issues with the syndicated loan market, CLO equity represents less than 3% of our total assets.

將焦點重新轉向公司。我們繼續相信波特曼里奇的估值，因為我們根據新的股票購買計劃繼續回購股票。 2023 年第二季度，我們按照2022 年全年和2023 年第一季度的趨勢回購了增量[27,081] 股股票。我們預計這種回購波特曼股票的趨勢將在2023 年持續下去，因為我們能夠這樣做。在這次電話會議上，帕特里克還將介紹我們的資產淨值的潛在上漲情況，但由於它與當前季度的業績相關，我們投資組合中約 72% 的淨虧損是由我們的 CLO 股票頭寸造成的。儘管鑑於銀團貸款市場的某些結構性問題，這仍然是一個具有挑戰性的資產類別，但 CLO 權益僅占我們總資產的不到 3%。

Approximately 74% of our portfolio is in first lien debt and is now valued at a meaningful discount to par. If experienced normalized defaults or even elevated default rates versus history, we believe there's still embedded net asset value upside in our portfolio. Thus, this adds to our earnings momentum, driven by wider spreads on new origination and rising short-term interest rates to drive both potential NAV and earnings upside.

我們的投資組合中約 74% 屬於第一留置權債務，目前估值較面值大幅折扣。如果經歷了正常化的違約，甚至違約率高於歷史水平，我們相信我們的投資組合中仍然存在內在的資產淨值上升空間。因此，這增加了我們的盈利動力，受到新產品利差擴大和短期利率上升的推動，從而推動潛在的資產淨值和盈利上漲。

With that, I will turn the call over to Patrick Schafer, our Chief Investment Officer, for a review of our investment activity.

接下來，我將把電話轉給我們的首席投資官帕特里克·謝弗 (Patrick Schafer)，以審查我們的投資活動。

Thanks, Ted. Turning to Slide 5 of our earnings presentation and the sensitivity of our earnings to interest rates. As of June 30, 2023, approximately 90.9% of our debt securities portfolio were either floating rate with the spread to an interest rate index such as LIBOR, SOFR or Prime rate, with 69% of these being linked to SOFR. As you can see from the chart, the underlying benchmark rate of our assets during the quarter lagged the prevailing market rates and still remains meaningfully below the LIBOR and SOFR rates as of July 25, 2023. We expect this to normalize over time as the underlying 1-, 3- and 6-month contracts reset.

謝謝，特德。轉向我們收益演示的幻燈片 5 以及我們的收益對利率的敏感性。截至 2023 年 6 月 30 日，我們約 90.9% 的債務證券投資組合為浮動利率，並與 LIBOR、SOFR 或優惠利率等利率指數掛鉤，其中 69% 與 SOFR 掛鉤。從圖表中可以看出，本季度我們資產的基礎基準利率落後於現行市場利率，並且截至2023 年7 月25 日仍明顯低於LIBOR 和SOFR 利率。我們預計隨著時間的推移，這種情況將正常化，因為基礎利率1、3 和 6 個月的合同重置。

For illustrative purposes, if all of our assets were to reset to either a 3-month LIBOR or SOFR rate, respectively, we would expect to generate an incremental $484,000 of quarterly income. While our liability costs will also rise relative to their Q2 levels, we still expect a net positive benefit of approximately $0.04 per share, assuming all of our assets and liabilities are utilizing the same 3-month benchmark rate for an entire quarter, which is further illustrated on Slide 7.

出於說明目的，如果我們的所有資產分別重置為 3 個月 LIBOR 或 SOFR 利率，我們預計將產生 484,000 美元的增量季度收入。雖然我們的負債成本也將相對於第二季度的水平上升，但假設我們的所有資產和負債在整個季度都使用相同的3 個月基準利率，我們仍然預計每股淨正收益約為0.04 美元，這進一步如幻燈片 7 所示。

Skipping down to Slide 11. Both investment activity and originations for the quarter were slightly higher than prior quarter, resulting in net repayment and sales of approximately $21.0 million. Net deployments consisted of new fundings of approximately $15.3 million, offset by approximately $36.3 million of repayments and sales. These new investments are expected to yield a spread to SOFR of 828 basis points on the par balance and the investments were purchased at a cost of approximately [98.65%] of par, which will generate incremental income to the [stated] spread. As mentioned during our earnings call, it was our expectation that Q2 would generate more repayments than deployments as we intentionally drew up a portion of our revolver in Q4 2022 to invest ahead of several repayments.

跳至幻燈片 11。本季度的投資活動和發起均略高於上一季度，淨還款和銷售額約為 2100 萬美元。淨部署包括約 1530 萬美元的新資金，被約 3630 萬美元的還款和銷售所抵消。這些新投資預計將在票面餘額上產生 828 個基點的 SOFR 利差，並且這些投資是以票面價值約 [98.65%] 的成本購買的，這將為[所述]利差帶來增量收入。正如我們在財報電話會議中提到的，我們預計第二季度的還款額將多於部署額，因為我們特意在2022 年第四季度提取了一部分左輪手槍，以便在多次還款之前進行投資。

In May, we repaid $23.6 million of our 2018-2 secured notes. I would like to specifically call out 2 payments -- paydowns during the quarter, both of which occurred relatively early on. First, we completed the recapitalization of Northeast Metal works, an asset acquired as part of the merger with Harvest Capital in April 2023. As part of the transaction, we repaid approximately 1/3 of our position and restructured the remaining position to prioritize additional periodic repayments. Secondly, in mid-May, we refinanced out -- we will refinance out of our second lien term loan position in [Tex-Tech], which has been a portfolio company since the initial externalization transaction back in April 2019. In [addition], being one of our larger positions, it was by far our largest second lien position and allows us to further rotate into first lien senior secured loans.

5 月份，我們償還了 2018-2 年度擔保票據 2360 萬美元。我想特別指出兩筆付款——本季度的付款，這兩筆付款都發生在相對較早的時候。首先，我們完成了Northeast Metal Works 的資本重組，這是2023 年4 月與Harvest Capital 合併時收購的一項資產。作為交易的一部分，我們償還了大約1/3 的頭寸，並重組了剩餘頭寸，以優先考慮額外的定期投資還款。其次，在5 月中旬，我們進行了再融資——我們將從[Tex-Tech] 的第二個留置權定期貸款頭寸中進行再融資，自2019 年4 月首次外部化交易以來，該公司一直是一家投資組合公司。 [此外] ，作為我們較大的頭寸之一，它是迄今為止我們最大的第二留置權頭寸，使我們能夠進一步輪換為第一留置權高級擔保貸款。

During the quarter, we funded $600,000 into our -- Great Lakes joint venture, which has taken us close to being fully funded under that commitment. Similar to our experience with new assets on the balance sheet, incremental investments in our Great Lakes joint venture have come at increasing spreads and widening OID, which should result in higher returns going forward. Our investment securities portfolio at the end of the second quarter remained highly diversified with investments spread across 27 different industries and 104 different entities, all while maintaining an average par balance per entity of approximately $3.2 million.

本季度，我們向五大湖合資企業注資 60 萬美元，這使我們接近根據該承諾獲得全額資助。與我們在資產負債表上新資產的經驗類似，我們對五大湖合資企業的增量投資帶來了利差的增加和 OID 的擴大，這應該會帶來更高的未來回報。截至第二季度末，我們的投資證券投資組合仍然高度多元化，投資遍布 27 個不同行業和 104 個不同實體，同時每個實體的平均票面餘額保持在約 320 萬美元。

Turning to Slide 12. We had one new issuer in 2 incremental portfolio company investments to a nonaccrual as compared to March 31, 2023. One of which is a term loan for [Qualtek], which is valued at 53.82% of par and has recently emerged from bankruptcy from which we are looking to recover a portion of our initial investment. The second of which is a term loan for Lucky Bucks, which is valued at 28.2% of par. In aggregate, investments on nonaccrual status remained relatively low at 7 investments in the second quarter of 2023 as compared to 5 investments on nonaccrual status as of March 31, 2023. These 7 investments on nonaccrual status at the end of the second quarter of 2023 represents 0.8% and 2.6% of the company's portfolio at fair value and amortized cost, respectively.

轉向幻燈片12。與2023 年3 月31 日相比，我們在2 個增量投資組合公司投資中有一個新發行人為非應計利息。其中之一是[Qualtek] 的定期貸款，其估值為面值的53.82%，最近已發放擺脫破產，我們希望從中收回部分初始投資。其中第二筆是Lucky Bucks的定期貸款，價值為面值的28.2%。總體而言，2023 年第二季度非應計狀態投資仍相對較低，為7 項，而截至2023 年3 月31 日，非應計狀態投資為5 項。截至2023 年第二季度末，這7 項非應計狀態投資代表按公允價值和攤餘成本計算，分別占公司投資組合的0.8%和2.6%。

On Slide 13, as Ted mentioned, if we focus on the top 3 rows of the table and exclude our nonaccrual investments, we have an aggregate debt securities fair value of $410.6 million, of which represents a blended price of 92.18% of par and is 88% comprised of first lien loans at par value. Assuming a par recovery, our June 31, 2023 fair values reflect a potential of $34.8 million of incremental NAV, a 16.2% increase or 3.65 or $3.65 per share, excluding any recovery on the nonaccrual investments. For illustrative purposes, if you were to assume a 10% default rate and 70% recovery on this debt portfolio, there would still be an incremental $2.25 per share of NAV value or a 10% increase over time as the portfolio matures and is repaid, again, excluding any recovery on the nonaccrual investments. The default rate is above -- this default rate is by anything market is expecting or has experienced historically.

在幻燈片 13 上，正如 Ted 提到的，如果我們關注表格的前 3 行並排除我們的非應計投資，我們的債務證券公允價值總額為 4.106 億美元，其中混合價格為面值的 92.18%， 88% 是按面值計算的第一留置權貸款。假設票面價值恢復，我們 2023 年 6 月 31 日的公允價值反映了 3480 萬美元增量資產淨值的潛力，增長 16.2%，即每股 3.65 或 3.65 美元，不包括非應計投資的任何恢復。出於說明目的，如果您假設該債務投資組合的違約率為10%，回收率為70%，那麼隨著投資組合的成熟和償還，每股資產淨值仍會增加2.25 美元，或者隨著時間的推移增加10%，再次排除非應計投資的任何回收。違約率高於——這個違約率是市場預期或歷史上經歷過的任何情況。

Turning finally to Slide 14. If you aggregate these 3 portfolios, over the last 5 years -- 3 years, we have repurchased a combined $434.8 million of investments, have realized over 73% of these positions at a combined realized and unrealized mark of 102% of fair value at the time of closing the respective mergers. We were able to achieve these results despite the global pandemic in 2020 and most of 2021 and a weak market for almost all asset classes in 2022. In a similar vein as the previous slide. As of June 30, 2023, there remains an incremental $12.8 million of value as compared to par in these portfolios, which equates to $9.4 million or a 4.4% increase when applying a similar 10% default rate and 70% recovery analysis and excluding nonaccrual investments. I'll now turn the call over to Jason to further discuss our financial results for the period.

最後轉向幻燈片14。如果將這3 個投資組合進行匯總，在過去5 年至3 年中，我們已回購了總計4.348 億美元的投資，已實現了其中超過73% 的頭寸，已實現和未實現的總金額為102各自合併完成時公允價值的%。儘管 2020 年和 2021 年的大部分時間發生了全球大流行，並且 2022 年幾乎所有資產類別的市場都疲軟，但我們仍然能夠實現這些成果。與上一張幻燈片類似。截至2023 年6 月30 日，這些投資組合的價值與面值相比仍增加1,280 萬美元，在應用類似的10% 違約率和70% 回收率分析並排除非應計投資時，相當於940 萬美元或增加4.4% 。我現在將把電話轉給傑森，進一步討論我們這一時期的財務業績。

Thanks, Patrick. As both Ted and Patrick previously mentioned, despite operating under a challenging economic environment, our results for second quarter of 2023 reflect strong financial performance. Our total investment income increased by $4.6 million to $19.6 million in the second quarter of 2023 in comparison to $15 million in the second quarter of 2022. As we continue to see the impact of rising rates on our portfolio. This reported total investment income represents a $700,000 decrease from the $20.3 million of reported total investment income in the first quarter of 2023.

謝謝，帕特里克。正如 Ted 和 Patrick 之前提到的，儘管在充滿挑戰的經濟環境下運營，我們 2023 年第二季度的業績反映了強勁的財務業績。 2023 年第二季度，我們的總投資收入增加了 460 萬美元，達到 1960 萬美元，而 2022 年第二季度為 1500 萬美元。我們繼續看到利率上升對我們投資組合的影響。報告的總投資收入比 2023 年第一季度報告的總投資收入 2030 萬美元減少了 70 萬美元。

The quarter-over-quarter decrease was largely due to reduced payments in-kind income seen in the second quarter when compared to the first quarter of 2023. As well as lower paydown income and lower purchase accretion as the discount associated with investments acquired through mergers and acquisitions continues to run off. Excluding the impact of purchase price accounting, our core investment income for the second quarter of 2023 was $19.2 million, an increase of $5.5 million as compared to $13.7 million for the second quarter of 2022 and a decrease of $100,000 as compared to $19.3 million for the first quarter of 2023.

環比下降主要是由於與 2023 年第一季度相比，第二季度支付的實物收入減少。此外，還款收入減少，購買增量減少，因為與通過合併獲得的投資相關的折扣並且收購繼續減少。剔除購買價格會計的影響，我們2023年第二季度的核心投資收入為1920萬美元，比2022年第二季度的1370萬美元增加了550萬美元，比2022年第二季度的1930萬美元減少了10萬美元。 2023 年第一季度。

Our net investment income for the second quarter of 2023 was $7.9 million, an increase of $2.4 million as compared to $5.5 million for the second quarter of 2022 and a decrease of $600,000 as compared to $8.5 million for the first quarter of 2023. The quarter-over-quarter decrease was largely due to the aforementioned decreases seen in payment in-kind income, pay down income and purchase discount accretion. For the 6 months ended June 30, 2023, our NII was $16.4 million, an increase of $3 million as compared to $13.4 million in the same 6-month period from 2022.

我們2023年第二季度的淨投資收益為790萬美元，比2022年第二季度的550萬美元增加了240萬美元，比2023年第一季度的850萬美元減少了60萬美元。環比下降主要是由於上述實物支付收入、首付收入和購買折扣增加的減少。截至 2023 年 6 月 30 日的 6 個月，我們的 NII 為 1,640 萬美元，比 2022 年同期 6 個月的 1,340 萬美元增加了 300 萬美元。

As of June 30, 2023, and March 31, 2023, the weighted average contractual interest rate on our interest-earning debt securities was approximately 12.1% and 11.7%, respectively. We believe the portfolio continues to be well-positioned in a rising rate environment to generate incremental revenue in future quarters. Total expenses were relatively flat quarter-over-quarter at $11.7 million for the second quarter of 2023 as compared to total expenses of $11.8 million seen in the first quarter of 2023. This quarter-over-quarter decrease highlights our efforts to continuing to reduce overall expenses in certain areas such as administrative services, professional fees and other general and administrative costs.

截至2023年6月30日和2023年3月31日，生息債務證券的加權平均合同利率分別約為12.1%和11.7%。我們相信，該投資組合在利率上升的環境中將繼續處於有利地位，以便在未來幾個季度產生增量收入。 2023 年第二季度的總費用為 1,170 萬美元，環比持平，而 2023 年第一季度的總費用為 1,180 萬美元。這一環比下降凸顯了我們為繼續減少總體費用而做出的努力某些領域的費用，例如行政服務、專業費用以及其他一般和行政費用。

Our net asset value for the second quarter of 2023 was $215 million or $22.54 per share as compared to $225.1 million or $23.56 per share in the first quarter of 2023. A significant driver of the quarter-over-quarter decline is attributable to realized losses from impairment taken against our CLO equity positions as well as markdowns on that portfolio. On the liability side of the balance sheet as of June 30, 2023, we had a total of $333.7 million par value of borrowings outstanding, comprised of $78 million in borrowings under our revolving credit facility, $108 million of [4.875%] notes due 2026 and $147.7 million in secured notes due 2029.

我們 2023 年第二季度的淨資產值為 2.15 億美元，即每股 22.54 美元，而 2023 年第一季度為 2.251 億美元，即每股 23.56 美元。環比下降的一個重要驅動因素是已實現的虧損我們對CLO 股票頭寸進行的減值以及該投資組合的減價。截至2023 年6 月30 日，在資產負債表的負債方面，我們的未償還借款面值總計為3.337 億美元，其中包括循環信貸額度下的7800 萬美元借款、2026 年到期的1.08 億美元[4.875 %] 票據以及 2029 年到期的 1.477 億美元擔保票據。

This balance represents a quarter-over-quarter decrease of $24.6 million, driven by a $23.6 million repayment on the secured notes due 2029. As of the end of the quarter, we had $37 million of available borrowing capacity under the senior secured revolving credit facility and no remaining borrowing capacity under the 2018-2 revolving credit facility as the reinvestment period ended shortly after our draw on November 20, 2022. As of June 30, 2023, our debt-to-equity ratio was 1.6x on a gross basis and 1.4x on a net basis. From a regulatory perspective, our asset coverage ratio at quarter end was 163%.

這一餘額環比減少了 2460 萬美元，原因是 2029 年到期的擔保票據償還了 2360 萬美元。截至本季度末，我們在高級擔保循環信貸安排下擁有 3700 萬美元的可用借款能力由於再投資期在我們於2022 年11 月20 日提款後不久就結束，因此2018-2 循環信貸安排下沒有剩餘借貸能力。截至2023 年6 月30 日，我們的債務股本比率為1.6 倍，並且淨值增長1.4 倍。從監管角度來看，季末我們的資產覆蓋率為163%。

Lastly, and as announced today, a quarterly distribution of $0.69 per share was approved by the Board and declared payable on August 31, 2023, to stockholders of record at the close of business on August 22, 2023. This is a $0.06 per share distribution increase as compared to the third quarter of 2022. Including the distribution subsequent to the announcement of full year 2022 earnings results, total stockholder distributions for 2023 amount to $2.06 per share.

最後，正如今天宣布的那樣，董事會批准了每股 0.69 美元的季度分配，並宣佈於 2023 年 8 月 31 日向 2023 年 8 月 22 日收盤時登記在冊的股東支付。這是每股 0.06 美元的分配與2022 年第三季度相比有所增加。包括2022 年全年盈利結果公佈後的分配，2023 年股東分配總額為每股2.06 美元。

With that, I will turn the call back over to Ted.

這樣，我會將電話轉回給特德。

Thank you, Jason. Ahead of questions, I'd like to reemphasize that we believe we are well-positioned to take advantage of opportunities that arise from the current market environment by continuing to be selective and resourceful in our investment decision-making.

謝謝你，傑森。在提問之前，我想再次強調，我們相信，通過繼續在投資決策中保持選擇性和足智多謀，我們有能力利用當前市場環境中出現的機會。

Overall, we believe we remain situated to continue to deliver attractive returns to our shareholders throughout the second half of 2023 and as we have demonstrated in the first half of 2023. Thank you once again to all our shareholders for your ongoing support. This concludes our prepared remarks, and I'll now turn the call over to the operator for any questions.

總體而言，我們相信我們仍將在 2023 年下半年繼續為股東帶來有吸引力的回報，正如我們在 2023 年上半年所證明的那樣。再次感謝所有股東的持續支持。我們準備好的發言到此結束，如果有任何問題，我現在將把電話轉給接線員。

The floor is now open for your questions.

現在請大家提問。

(Operator Instructions)

（操作員說明）

Your first question comes from Christopher Nolan with Ladenburg Thalmann.

你的第一個問題來自克里斯托弗·諾蘭和拉登堡·塔爾曼。

Did the share repurchases have any accretion to NAV per share? And if so, can you quantify?

股票回購是否增加了每股資產淨值？如果是這樣，你能量化嗎？

Yes, we bought about, what, $500,000 -- about $500,000 worth of equity in the quarter. I think if you look at it 6 months to date, I think it's about $0.37 of NAV roughly.

是的，我們在本季度購買了大約 50 萬美元——價值大約 50 萬美元的股票。我認為，如果你看看迄今為止的 6 個月，我認為資產淨值大約約為 0.37 美元。

Also, were there any nonrecurring items in EPS?

另外，每股收益中是否有非經常性項目？

Yes. I would say on the expense side, there's probably about -- well, I know there's about $100,000 of nonrecurring or onetime legal expense and the professional expenses. Other than that, our other income fees are generally kind of onetime in nature, but do have a recurring effect quarter-over-quarter, it's generally pretty somewhat volatile, but there is always some fee income that we see in that line. I would say it's -- it trended up this quarter from last quarter due to some onetime items in there about $300/$400 [grand] roughly.

是的。我想說，在費用方面，可能有大約——嗯，我知道大約有 100,000 美元的非經常性或一次性法律費用和專業費用。除此之外，我們的其他收入費用通常是一次性的，但確實會按季度產生經常性影響，通常相當不穩定，但我們在該行中總會看到一些費用收入。我想說的是，由於其中一些一次性物品大約為 300 美元/400 美元[大]，本季度的價格比上季度有所上升。

Great. And then, I guess, finally, for -- I'm seeing for the [BDCs I cover] incremental asset quality deterioration. Strategically, do you see the developing environment to be conducive to more consolidation in the BDC space?

偉大的。然後，我想，最後，我看到 [我涵蓋的 BDC] 資產質量不斷惡化。從戰略上講，您認為發展環境是否有利於 BDC 領域的進一步整合？

That's not what I thought you're going with that question. I would say, I think a lot of the low-hanging fruit has been picked, I think, in terms of M&A. But again, scale is becoming more and more and more important across broad credit. And you're seeing like both in terms of getting financing from banks, which is becoming more scarce and also in servicing our clients appropriately. So scale is definitely important. I don't see any near-term M&A, but it is a good question. It's something we're always looking for. And obviously, we always get phone calls on M&A opportunities.

我不認為你會問這個問題。我想說，我認為在併購方面，很多容易實現的目標已經被採摘。但同樣，規模在整個信貸領域變得越來越重要。您會看到，從銀行獲得融資（銀行融資變得越來越稀缺）以及為我們的客戶提供適當服務方面都是如此。所以規模絕對重要。我沒有看到任何近期的併購，但這是一個很好的問題。這是我們一直在尋找的東西。顯然，我們總是接到有關併購機會的電話。

Sounds good. I'll get back in the queue. Thanks, guys.

聽起來不錯。我會回到隊列中。多謝你們。

Our next question comes from Ryan Lynch with KBW.

我們的下一個問題來自 KBW 的 Ryan Lynch。

First is just a clarification. Did you say 72% of the realized losses, which was kind of reflecting the $6 million to $7 million of losses was related to the CLO positions? Or was that 72% of realized and unrealized losses?

首先只是澄清一下。您是否說過 72% 的已實現損失（這在某種程度上反映了 600 萬至 700 萬美元的損失）與 CLO 頭寸有關？或者這是已實現和未實現損失的 72%？

Yes, Ryan. So of the $6.7 million realized, about $5.6 million of that was related to the CLOs.

是的，瑞安。因此，在實現的 670 萬美元中，約 560 萬美元與 CLO 有關。

Okay. And then so a couple of questions on that then. So what drove the decline in, I guess, CLOs that -- because that wasn't offset by realized gain or unrealized gains, I guess all those what kind of drove the lower valuations in your CLO book? Because it didn't seem like broadly syndicated loan prices really moved lower in the quarter. In fact, they were up...

好的。然後有幾個問題。那麼，我猜是什麼導致了 CLO 的下跌——因為這並沒有被已實現的收益或未實現的收益所抵消，我想所有這些因素都導致了你的 CLO 賬簿中估值的降低？因為本季度銀團貸款價格似乎並未真正下降。事實上，他們已經起來了……

Yes, let me clarify that a little bit, Ryan. So the CLOs did have about $900,000 in unrealized that flipped into realized as part of that $5.6 million that I just mentioned. And the remainder of that -- well, all of the $5.6 million was flipped into realized as part of an impairment. So we reduced the cost base of the instrument. It wasn't a sale of the positions. And that's driven by the -- basically the accounting and the fair value based on the future cash flow expectations of that CLO equity? And I'll pass it to Patrick.

是的，讓我澄清一下，瑞安。因此，CLO 確實有大約 90 萬美元的未實現資金，這些資金變成了我剛才提到的 560 萬美元資金的一部分。剩下的 560 萬美元全部作為減值準備轉為實現。因此我們降低了儀器的成本基礎。這不是職位的出售。這是由——基本上是基於 CLO 股權未來現金流預期的會計和公允價值驅動的？我會將其傳遞給帕特里克。

Yes. Having said all that, there is still a -- again, despite whether you consider it unrealized whether as an impairment versus remains unrealized there were some, I'll call it, fair value declines in the CLO portfolio and by and large, to your point, the syndicated market hasn't moved very much. But what we've seen, honestly, this quarter for the first time in a while, and we can talk about the reasons why. But a lot of the CLO managers themselves are actually selling some of the assets within the portfolio, sometimes to meet certain tests sometimes for other reasons. But given that most of our the CLO vehicles that we're invested in are out of the reinvestment period, if you sell an asset at 90, that's just a low -- (inaudible) be hit relative to NAV.

是的。話雖如此，還是有一個——再次強調，無論你是否認為它是未實現的，是否作為減值與仍未實現的，我稱之為CLO 投資組合的公允價值下降，總的來說，對你來說就這一點而言，銀團市場並沒有發生太大變化。但老實說，這是我們一段時間以來第一次在本季度看到的情況，我們可以談談其中的原因。但許多 CLO 經理本身實際上正在出售投資組合中的一些資產，有時是為了滿足某些測試，有時是出於其他原因。但考慮到我們投資的大多數 CLO 工具都已經過了再投資期，如果你以 90 的價格出售資產，相對於資產淨值來說，這只是一個低點（聽不清）。

And so what we saw, particularly -- again, it's across a number of the -- we have, I guess, 3 different managers in total between our CLOs and by and large, the majority of the, call it, markdown or decline in fair valve, it's from the managers themselves selling assets at below par.

因此，我們所看到的，特別是——我想，我們的 CLO 之間總共有 3 名不同的經理，總的來說，大多數人稱之為降價或下降。公平的閥門，它來自管理者自己以低於面值的價格出售資產。

Yes. So Ryan, thematically, what's happening which obviously is incredibly frustrating is the way CLOs are set up, obviously, they manage to test. And you've obviously had ratings migration down or things on downgrade watch. And so as Patrick said, a lot of it is portfolio repositioning around downgrades. And obviously, that hurts the valuation of the CLO equity. So I mean, I guess the only silver lining is only 2.5% of our remaining portfolio.

是的。所以 Ryan，從主題上講，正在發生的事情顯然令人難以置信，這就是 CLO 的設置方式，顯然，他們設法進行測試。顯然，你的評級已經下降，或者評級下調了。正如帕特里克所說，其中很大一部分是圍繞降級進行投資組合重新定位。顯然，這損害了 CLO 股權的估值。所以我的意思是，我想唯一的一線希望是我們剩餘投資組合的 2.5%。

Yes. Okay. Makes sense. And then I guess on the other portion then, so that kind of covers, I think a lot of the realized losses, but there were still some unrealized losses in the quarter as well as some realized that was outside of the CLOs. What drove those declines? I know there were -- I think you said two new nonaccruals, I haven't been able to calculate it. Were those driven by markdowns in the two new nonaccruals? Or what was kind of the overriding factors for the other write-downs in the portfolio?

是的。好的。說得通。然後我想在另一部分，所以這種覆蓋，我認為很多已實現的損失，但本季度仍然有一些未實現的損失，以及一些意識到的損失不在 CLO 之外。是什麼導致了這些下降？我知道有——我想你說的是兩個新的非應計項目，我無法計算出來。這些是由兩項新的非應計費用降價推動的嗎？或者投資組合中其他減記的最重要因素是什麼？

Yes, I think it's probably a little bit from the nonaccruals, but I did the bigger impact, probably about half of, call it, the non-CLO impact is from one position it's called (inaudible). It's a mark-to-market decline. We continue to work with the company and the lender group and we feel pretty decent that markdown quarter-over-quarter is really just temporary, and we would anticipate that sort of reversing itself in the kind of near- to medium-term.

是的，我認為這可能有一點來自非應計費用，但我產生了更大的影響，可能大約一半，稱之為非 CLO 影響來自它所謂的一個位置（聽不清）。這是按市值計算的下降。我們繼續與該公司和貸款機構合作，我們感覺季度環比降價實際上只是暫時的，我們預計這種情況會在中短期內扭轉。

So that's kind of about half of the market is really just what we have very much characterized mark-to-market and probably most of the rest of the other half is due to two other positions. One is called Anthem Sports Entertainment. It's just a large position, and we mark it down 2 or 3 points sort of consistent with sort of mark-to-market. Again, it's not a significant markdown on a percentage basis, but it's a relatively large position, so it has kind of an outsized dollar impact.

因此，大約一半的市場實際上正是我們按市值計價的，而另一半的其餘大部分可能是由於另外兩個頭寸所致。其中之一名為 Anthem Sports Entertainment。這只是一個很大的頭寸，我們將其下調 2 或 3 個點，這與按市值計價是一致的。同樣，這並不是一個以百分比為基礎的重大降價，但它是一個相對較大的頭寸，因此它對美元的影響很大。

And then the third one is HTC or [Hostway] company has been underperforming a little bit. They are in the process of selling a number of assets various different assets within the company that we'd expect to realize a decent chunk of that loan in the kind of near- to medium-term. And the remainder of it will kind of continue on. So again, I think we feel relatively good that most of that markdown is temporary or call it, mark-to-market is supposed to credit necessarily.

第三個是 HTC 或 [Hostway] 公司，表現有點不佳。他們正在出售公司內部的許多不同資產，我們預計這些資產將在中短期內實現相當大一部分貸款。剩下的部分將會繼續下去。因此，我認為我們感覺相對良好，因為大部分降價都是暫時的，或者稱其為“按市值計價”，這應該是必然的。

Yes. And then one of the -- on the nonaccrual side, it is two new securities, but it's only one new issuer. And one of those issuers is expected to emerge from bankruptcy or [its emerge] from bankruptcy. So that will also -- the nonaccrual line should also be stable to positive -- barring some surprises. So I'd say thematically, credit quality in the portfolio despite Patrick's comments is pretty stable actually. And again, we don't expect a big spike in nonaccruals going forward.

是的。然後其中之一 - 在非應計方面，它是兩種新證券，但它只是一個新發行人。這些發行人之一預計將擺脫破產或擺脫破產。因此，除非出現一些意外，否則非應計利潤也應該穩定為正值。因此，我想說的是，儘管帕特里克發表了評論，但投資組合中的信用質量實際上相當穩定。同樣，我們預計未來非應計費用不會大幅增加。

Okay. What kind of -- on that point and when you're talking about [Hostway] and then the potential recovery for there. You guys talked about some potential upside to NAV if some of your senior loans that aren't on nonaccrual status today are kind of recovered or you even ran through a scenario where there was x percentage of the falls in certain recoveries. I guess, when -- I mean, what do you think changes in the environment before those start getting written up? Or is it just a very slow sort of accretion? Like if everything -- those companies continue to perform kind of lay that down foundation. Is it just going to be, do you think, a slow accretion over time as they get closer to maturity and repay, which could obviously take years or does something have to happen and broader in the market regarding spreads or something like that? Or what is sort of the -- what do you see as the potential catalyst or time frame to eventually recover those potential write-downs?

好的。什麼樣的——在這一點上，當你談論 [Hostway] 時，然後是那裡的潛在復蘇。你們談到了資產淨值的一些潛在上升空間，如果您今天不處於非應計狀態的一些高級貸款得到了某種程度的收回，或者您甚至遇到了某些回收率下降了x百分比的情況。我想，我的意思是，在這些開始被寫下來之前，你認為環境會發生什麼變化？或者它只是一種非常緩慢的增長？就像所有事情一樣——這些公司繼續表現，奠定了基礎。您認為，隨著時間的推移，隨著它們接近成熟和償還，這是否會緩慢增長，這顯然可能需要數年時間，或者市場上是否必鬚髮生一些關於利差或類似情況的更廣泛的事情？或者您認為最終恢復這些潛在減記的潛在催化劑或時間框架是什麼？

Yes. So I think -- we think there's a lot of embedded upside in the book because of this mark-to-market phenomenon. And the way our matrix works in terms of markdowns, there's a bit of a lag. So obviously, today, as we sit here today, obviously, the loan and high-yield market have tightened recently. So some of that should -- will just be mark-to-market based on indices. And then the number two is, obviously, a lot of its driven by activity levels. So activity levels have been really, really muted this year, like repayments are really low. But we are seeing pickup in M&A and a pickup in activity levels. And so some of that is just these companies get sold, there's a huge pull to par effect.

是的。所以我認為，由於這種按市值計價的現象，我們認為這本書有很多內在的好處。我們的矩陣在降價方面的工作方式存在一點滯後。顯然，今天，當我們今天坐在這裡時，顯然，貸款和高收益市場最近已經收緊。因此，其中一些應該只是根據指數按市值計價。顯然，第二個因素很大程度上是由活動水平驅動的。因此，今年的活動水平真的非常低迷，就像還款真的很低一樣。但我們看到併購活動有所回升，活動水平也有所回升。因此，其中一些只是這些公司被出售，對平價效應有巨大的拉動。

I mean one thing that's affecting us is, generally speaking, is some companies are doing these small incrementals and the small incrementals are pricing wide to where the existing debt stacks are. So even though there's no credit issue, it reprices not only the first lien, but it reprices the second lien preferred, and reprices the whole capital structure. And so when companies go out to these smaller add-ons, that also could have a pretty big impact on "mark-to-market" even though there's no credit issue. So we've seen that in a couple of names where we're marked at a pretty big discount to par, but there's no credit issue and it's generating really good yields.

我的意思是，影響我們的一件事是，一般來說，一些公司正在做這些小增量，而這些小增量的定價範圍與現有債務堆棧的範圍相當。因此，即使不存在信用問題，它不僅會重新定價第一個留置權，還會重新定價第二個優先留置權，並重新定價整個資本結構。因此，當公司購買這些較小的附加產品時，即使不存在信用問題，也可能對“按市價計價”產生相當大的影響。因此，我們在幾個名稱中看到了這一點，我們的標價相對於面值有相當大的折扣，但不存在信貸問題，而且產生了非常好的收益率。

So I mean, the answer to your question is a mixture of all of them like, a, there's a pull to par factor just for maturities. And we don't have a lot of like long-term maturities given our loans. Number two is tightening of the market, which we've seen a little bit of that happened over the last couple of months. And number 3 is they're correlated because if the market starts tightening, people can obviously get things done easier and therefore, activity level should pick up M&A-wise. And there you get some pops on valuations when things get taken out.

所以我的意思是，你的問題的答案是所有這些問題的混合體，例如，僅對到期日有拉動。考慮到我們的貸款，我們沒有很多類似的長期期限。第二是市場收緊，我們在過去幾個月已經看到了一些這種情況的發生。第三，它們是相關的，因為如果市場開始收緊，人們顯然可以更輕鬆地完成工作，因此，併購活動水平應該會有所上升。當東西被取出時，你會得到一些關於估值的數據。

Yes. Okay. I understand. I know we're obviously talking about the future, which is incredibly hard to nobody can predict, but I appreciate the comment on that.

是的。好的。我明白。我知道我們顯然正在談論未來，這對任何人來說都很難預測，但我很欣賞對此的評論。

One other last question that I actually just came up as I was kind of thinking about your previous comments on the CLO. So I want to circle back to the discussion on the CLOs and the write-downs -- is -- I know it's a very small percentage of your portfolio at this point, especially with the most recent markdowns, but the sort of trend that happened in the second quarter of maybe having to move some stuff around because of maybe some downgrades or things like that and having to sell at losses. Is there any reason to expect that, that would stop in the third quarter? Or is there another risk potential for continued write-downs? And again, I know it's a smaller portfolio, but could we continue to see that in the third quarter write-downs from the CLOs?

最後一個問題實際上是我在思考您之前對 CLO 的評論時提出的。所以我想回到關於 CLO 和減記的討論 - 我知道這在你的投資組合中只佔很小的比例，特別是最近的減價，但發生的那種趨勢在第二季度，可能由於一些降級或類似的事情而不得不轉移一些東西，並且不得不虧本出售。有沒有理由預計這種情況會在第三季度停止？或者是否存在繼續減記的其他潛在風險？再說一遍，我知道這是一個較小的投資組合，但我們能否在第三季度繼續看到抵押貸款債券的減記？

Yes, it's a good question. I mean, the answer -- the short answer to your question is like, I don't know, like it feels like a lot of that repositioning was done in the first half of the year. And obviously, people are feeling much, much better about the economy and all that. So there's been way less ratings movements recently, but obviously, ratings are a lagging indicator. So I don't have a great answer for your question. We think we're marked very conservatively on those. And obviously, we took a big write-down this quarter. But it's hard to -- to be honest, it's hard to know because we're not the manager of those couple of securities, right? So like I don't want to like say something that turns out to be wrong because we just don't know.

是的，這是一個好問題。我的意思是，對你的問題的簡短回答是，我不知道，感覺很多重新定位都是在今年上半年完成的。顯然，人們對經濟等的感覺好多了。因此，最近收視率變動幅度要小得多，但顯然，收視率是一個滯後指標。所以我對你的問題沒有一個很好的答案。我們認為我們在這些方面的表現非常保守。顯然，我們本季度進行了大幅減記。但說實話，很難知道，因為我們不是這兩種證券的管理者，對吧？所以就像我不想說一些被證明是錯誤的事情，因為我們只是不知道。

That's sure. That's totally fair. Okay. That's all for me. I appreciate the time today.

那是肯定的。這完全公平。好的。這就是我的全部。我很感激今天的時間。

Thank you so much.

太感謝了。

Next question comes from Steven Martin with Slater.

下一個問題來自史蒂文·馬丁和斯萊特。

A couple of my questions have been asked and answered. Of your portfolio, the public the debt, the senior portion of your portfolio, how would -- what would you bet the average mark is?

我的幾個問題已被提出並得到解答。在你的投資組合中，公共債務，你的投資組合的高級部分，你會打賭平均分數是多少？

Yes. I mean it's somewhere in -- I'd say the total is probably representative of the senior portfolio, which is somewhere in the low 90s, 91 to 93 sense of par give or take. I think our portfolio as a whole is 91 spot 6 or 9 spot 7. I don't think the -- on the senior loan versus the second lien is significantly different. Again, senior loans make up 75% of the total portfolio in 80 -- high 80% of the debt portfolio. So you could probably think of that as a pretty comparable number like in terms of representing the first lien portfolio as a whole.

是的。我的意思是，它在某個地方——我想說，總數可能代表了高級投資組合，它在 90 年代低的某個地方，91 到 93 的標准給予或接受感覺。我認為我們的投資組合作為一個整體是 91 個點 6 或 9 個點 7。我不認為高級貸款與第二留置權有顯著不同。同樣，高級貸款佔 80 年投資組合總額的 75%，佔債務組合的 80%。因此，您可能會認為這是一個相當可比的數字，就像代表整個第一留置權投資組合一樣。

So that's why you say that there's a lot of accretion opportunity or NAV recovery in the senior portion of the portfolio?

這就是為什麼你說投資組合的高級部分有很多增值機會或資產淨值恢復的原因？

Correct. In the portfolio as a whole, obviously, it's significantly weighted towards senior and that's how I think we called that out specifically because as we're thinking about default rates and recovery rates, obviously, recovery rates would be much higher in senior positions as opposed to junior positions.

正確的。顯然，在整個投資組合中，它顯著偏向高級職位，我認為我們就是這樣專門指出這一點的，因為當我們考慮違約率和回收率時，顯然，高級職位的回收率會高得多到初級職位。

Okay. The nonperformings, you had the chart which I love of the acquisitions you've done and how those portfolios have realized -- realized and unrealized. Of the nonperformings, how many of them are BC partner -- BC originated versus sort of old purchase portfolio position?

好的。對於不良資產，您有我喜歡的圖表，其中顯示了您所做的收購以及這些投資組合如何實現——已實現和未實現。在不良資產中，有多少是 BC 合作夥伴——BC 起源於某種舊的購買投資組合頭寸？

Yes. (inaudible) only one is a BC-originated asset and the rest of them, the remaining I guess we're talking about 6 issuers or 6 portfolio companies so the remaining 5 are various different kind of legacy, call it, physicians or at a minimum, we're in the book before we took over, and that would include going all the way back to the KCAP externalization. We call it 5 of 6 borrowers are, again, between KCAP and these acquisitions are -- we'll call it legacy. We don't like to use that word, but call it legacy.

是的。 （聽不清）只有一個是BC 起源的資產，其餘的，我想我們談論的是6 個發行人或6 個投資組合公司，所以剩下的5 個是各種不同類型的遺產，稱之為醫生或在至少，我們在接手之前就已經在書中了，這將包括一路回到 KCAP 外部化。我們稱之為 6 個借款人中的 5 個處於 KCAP 之間，而這些收購是——我們稱之為遺產。我們不喜歡使用這個詞，而是稱之為遺產。

And when you underwrote those acquisitions, are these surprises? And are these bad outcomes versus what you underwrote? Or is this where you had already -- it was part of your purchase accounting?

當您承銷這些收購時，這些是否令人驚訝？這些糟糕的結果與您承保的結果相符嗎？或者這是您已經存在的地方——它是您採購會計的一部分？

Yes, good question. Honestly, I would need to look at them all individually. I do think a decent amount of the 6. My hunch is -- so again, of the 6 -- just go back. Of the 6, 2 are -- again, they're like kind of, I'll call them, like not real accruals there. One is $75,000 note that we converted an equity position to a senior note. It was never on accrual in the first place. It would never had any fair value. So that really -- again, in my perspective, that's not really a credit issue whatsoever.

是的，好問題。老實說，我需要單獨查看它們。我確實認為 6 中的相當多。我的預感是——同樣，6 中——就回去吧。在這 6 項中，有 2 項是——我會這樣稱呼它們，就像不是真正的應計費用。其中一張是 75,000 美元的票據，我們將股權頭寸轉換為優先票據。它從一開始就不是應計的。它永遠不會有任何公允價值。因此，在我看來，這實際上並不是一個信用問題。

So that drops you down to, call it, 5 portfolio companies. One is a $500,000 remaining of a position from the original KCAP that was already marked 50-something [cents] when we told it was on nonaccrual when we took it over. There's a very small piece that we've been waiting to get sort of flushed out of a state bankruptcy process. It's been in this process for I don't know, like 4 years or so. So that brings you down to 4. One of them is a BC portfolio company. That brings you down to 3. I think 2 of the remaining 3 were on nonaccrual at the time we took it over. So maybe call it one was a surprise versus the 5 that we sort of took over in terms of our underwriting.

這樣你就只剩下 5 家投資組合公司了。其中一個是原始 KCAP 剩餘 50 萬美元的頭寸，當我們接管該頭寸時，我們告知該頭寸為非應計利息，該頭寸已標記為 50 多美分。我們一直在等待一個很小的部分從州破產程序中被清除。我不知道這個過程已經持續了四年左右。這樣一來，您的數量就減少到 4 家。其中一家是 BC 投資組合公司。這樣就減少到了 3 個。我認為在我們接管時，剩下的 3 個中有 2 個是非應計的。因此，與我們在承保方面接手的 5 家相比，也許稱其為 1 家是一個驚喜。

Okay. Ted, what is the prospect and you've talked about the third quarter a little. We're only halfway through. What's the prospect for deployment versus repayment in the third quarter?

好的。特德，前景如何，您已經談到了第三季度。我們才完成一半。第三季度部署與還款的前景如何？

I would say we continue to see good opportunities to deploy, although the market is getting a little -- like literally in a very, very -- like over the last like 3 weeks, the market has gotten tighter for the first time in probably 4 quarters. And then repayments continue to be muted. I would say, we're getting some one-off payments, but I would say repayment activity, we haven't seen a big pickup as compared to average.

我想說的是，我們繼續看到很好的部署機會，儘管市場正在變得有點——就像字面意義上的——就像過去三週那樣，市場可能在 4 年來首次變得更加緊張。宿舍。然後還款繼續減少。我想說的是，我們得到了一些一次性付款，但我想說的是還款活動，與平均水平相比，我們還沒有看到大幅回升。

I think the only additional thing I would add to Ted's comment is we did -- like the Tex-Tech repayment was in sort of the middle of May, which was a relatively chunky position. It was almost $13 million. As we kind of think about deployment, that cash is sort of in the system waiting to be deployed in just the way that our market works. The private deals tend to have a bit of a lead time. So you could expect even all else being equal, that $12 million to be sort of redeployed into various different investments that perhaps were not on the books as of June 30.

我想我要在 Ted 的評論中補充的唯一一點是我們所做的——就像 Tex-Tech 的還款是在五月中旬，這是一個相對寬鬆的位置。這幾乎是 1300 萬美元。當我們考慮部署時，現金就在系統中等待以我們市場運作的方式進行部署。私人交易往往有一點提前期。因此，即使其他條件相同，您也可以預期這 1200 萬美元將被重新部署到各種不同的投資中，而截至 6 月 30 日，這些投資可能尚未記錄在案。

Yes. Then I mean not to state the obvious, Tex-Tech was a second lien. And so we can recycle that into comparably yielding first liens and you obviously get better advance rates. So it's an ROE accretive let's put it that way.

是的。那麼我的意思是不說顯而易見的事情，Tex-Tech 是第二留置權。因此，我們可以將其回收為具有相對收益的第一留置權，並且您顯然可以獲得更好的預付款率。所以我們可以這麼說，這是一種 ROE 增值。

Right. But would you expect, if repayments are muted, would you expect to deploy $10 million this quarter, $20 million, $30 million, is there some sort of guesstimate you have?

正確的。但是，如果還款較少，您會預計本季度部署 1000 萬美元、2000 萬美元、3000 萬美元嗎？您有某種猜測嗎？

I'd say probably more in the 10 to 20 range as not -- probably not the 30 range, but I'd say more in the -- again, just pure deployments, probably more in the $10 million to $20 million range.

我會說可能更多在10 到20 範圍內，而不是——可能不是30 範圍，但我會說更多在——再次，只是純粹的部署，可能更多在1000 萬美元到2000 萬美元範圍內。

Okay. And one last one. You -- for the last -- at least the last 2 or 3 quarters, you've outearned your NII has far exceeded your dividend rate. And I know this is a question that you sort of expect. What's the prospect for either a dividend increase or some form of special between now and the end of the year? Or do we have to wait till after December?

好的。還有最後一張。你——在過去——至少在過去的兩三個季度，你的 NII 收入遠遠超過了你的股息率。我知道這是您所期待的一個問題。從現在到年底，增加股息或採取某種形式的特別措施的前景如何？還是必須等到12月以後？

I think here's a challenge to the dividend policy is, obviously, we're way over in our dividend. The challenge we have is the way we do our dividend is the forward curve for rates. When we set our dividend quarter, was down like 200 basis points in the next 2 years. And obviously, this higher for longer, the market is getting more comfortable with higher for longer, so that 2-year out curve has actually -- has gone up a lot. So we always want to make sure our dividend is protected around cuts and short-term rates, and we have a huge cushion for that. And number 2 is we're going to have to reprice some of our CLO debt on our balance sheet, right, which is going to be a bit of an increase. So all that stuff means that if we take a big, big hit on short-term rates, and we have to reprice all of our on-balance sheet CLO debt.

我認為股息政策面臨的挑戰顯然是，我們的股息已經遠遠超過了。我們面臨的挑戰是我們發放股息的方式是遠期利率曲線。當我們設定股息季度時，未來兩年下降了 200 個基點。顯然，這種持續上漲的時間更長，市場對持續上漲的時間越來越適應，因此兩年期曲線實際上已經上升了很多。因此，我們始終希望確保我們的股息在削減和短期利率方面受到保護，並且我們為此擁有巨大的緩衝。第二，我們將不得不在資產負債表上重新定價我們的部分 CLO 債務，對吧，這將會有所增加。因此，所有這些都意味著，如果我們的短期利率受到重大打擊，我們就必須重新定價所有表內 CLO 債務。

We can still easily cover our dividend. So yes, we'll revisit it next quarter. We revisited every single quarter. It's just hard when in short-term rates forward are moving around as much as they have been. The answer is we will revisit our dividend again in our November meeting.

我們仍然可以輕鬆支付股息。所以是的，我們將在下個季度重新審視它。我們每個季度都會重新審視。當短期利率像以前一樣波動時，這確實很困難。答案是我們將在 11 月份的會議上再次討論我們的股息。

Yes, because the year-over-year has been a nice percentage increase up until now. But last year in the third quarter you upped the dividend. So if you don't up the dividend, your year-over-year is pretty flat.

是的，因為到目前為止，同比增長幅度很大。但去年第三季度你提高了股息。因此，如果你不提高股息，你的同比增長率將相當持平。

One other question on the CLOs. If you guys think that the CLOs are realizing losses or the non -- outside manager CLOs are realizing losses that you don't think are warranted. Are you allowed to go buy those securities from them at that discount?

關於 CLO 的另一個問題。如果你們認為 CLO 正在實現損失，或者非外部經理 CLO 正在實現您認為不合理的損失。你可以以這個折扣從他們那裡購買這些證券嗎？

I mean there is -- I put it this way, Steve, there's nothing that would prevent us from doing it other than they don't necessarily like tell us when they're going to sell stuff and what they're going to sell. So it would be very challenging to sort of like line that up. But conceptually, we could. We don't -- I mean, again, we could call them up and say, hey, before you sell anything in these vehicles, call us, which we could do. But they don't like give us a heads up as they're in the process of selling things and what they're going to sell. So it's tough for us to like have advanced warning of their plans.

我的意思是 - 我這樣說，史蒂夫，沒有什麼可以阻止我們這樣做，除了他們不一定喜歡告訴我們他們什麼時候要賣東西以及他們要賣什麼。因此，將其排列起來將非常具有挑戰性。但從概念上講，我們可以。我們不——我的意思是，我們可以打電話給他們說，嘿，在你出售這些車輛中的任何東西之前，給我們打電話，我們可以這樣做。但他們不喜歡提前通知我們，因為他們正在銷售東西以及他們將要銷售的東西。所以我們很難喜歡提前警告他們的計劃。

Got it. And guys for the future, like, no more CLOs. Unless you're going to self-manage them so you can control them. All right, I'll talk to you guys later.

知道了。未來的人們，比如，不再有 CLO。除非你要自我管理它們以便你可以控制它們。好吧，我稍後再和大家聊。

(Operator Instructions) Another question comes in from Christopher Nolan with Ladenburg Thalmann.

（操作員說明）克里斯托弗·諾蘭和拉登堡·塔爾曼提出了另一個問題。

Just a quick follow-up on the CLO question. Any timetable when you can basically unwind this position? I know you guys have been holding on to it, but given your portfolio managers are selling, can we see a timeframe in terms of you exiting CLOs?

只是對 CLO 問題的快速跟進。有什麼時間表可以基本上解除這個頭寸嗎？我知道你們一直堅持持有，但鑑於你們的投資組合經理正在出售，我們能否看到你們退出 CLO 的時間表？

Yes. I'd say in most of our positions, we are not the majority holder, so we don't really have control over the exit for ones that we do, which are a very small subset. We certainly look at that, Chris. But obviously, again, kind of where the market is right now and again, putting aside the manager's behavior, we do think there is there is some far more [temporal] declines or unrealized losses in the syndicated market just from kind of mark-to-market and things like that. So I think our hope would be to kind of exit those in a more normalized environment. But for the most part, we don't actually have control over those within our CLOs were a relatively small percentage of the equity.

是的。我想說的是，在我們的大多數職位上，我們都不是多數股東，因此我們實際上無法控制我們所持有的職位的退出，而這些職位只是很小的一部分。我們當然會關注這一點，克里斯。但顯然，市場時不時地出現這種情況，拋開經理的行為不談，我們確實認為，銀團市場中存在一些更多的[暫時]下降或未實現的損失，只是從盯市到-市場之類的東西。所以我認為我們的希望是在一個更加正常化的環境中退出。但在大多數情況下，我們實際上無法控制我們的 CLO 中那些相對較小比例的股權。

There are no further questions at this time. Mr. Goldthorpe, I turn the call back over to you.

目前沒有其他問題。戈德索普先生，我將電話轉回給您。

Thank you very much, and thanks, everyone, for joining us today, and we look forward to speaking to you again in early November when we'll be announcing our third quarter 2023 results. Thank you so much, and enjoy the end of your summer.

非常感謝大家今天加入我們，我們期待在 11 月初再次與大家交談，屆時我們將宣布 2023 年第三季度的業績。非常感謝你，祝你夏天結束愉快。

Ladies and gentlemen, this concludes today's conference call. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。您現在可以斷開連接。