BCP Investment Corp (BCIC) 2023 Q4 法說會逐字稿

Welcome to Portman Ridge Finance Corporation's fourth-quarter and full-year 2023 earnings conference call. An earnings press release was distributed yesterday, March 13, 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-K filed yesterday with the SEC. As a reminder, this conference call is being recorded by replay purposes.

歡迎參加 Portman Ridge Finance Corporation 的第四季和 2023 年全年財報電話會議。昨天（3 月 13 日）收盤後發布了一份收益新聞稿。新聞稿的副本以及收益報告可在該公司網站 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-K 表格一併進行審查。提醒一下，本次電話會議是出於重播目的而錄製的。

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. Portman Ridge Finance Corporation assumes no obligation to update any such forward-looking statements unless required by law.

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所述的因素），實際結果可能與前瞻性陳述中的結果有重大差異。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聲明的義務。

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; Patrick Schafer, Chief Investment Officer; and Brandon Satoren, Chief Accounting Officer.

Portman Ridge Finance Corporation 執行長、總裁兼董事 Ted Goldthorpe 將在今天的電話會議上發言。傑森‧魯斯，財務長； Patrick Schafer，首席投資長；和首席會計官布蘭登·薩托倫 (Brandon Satoren)。

With that, I would now like to turn the call over to Ted Goldthorpe, Chief Executive Officer of Portman Ridge.

現在，我想將電話轉給波特曼·里奇執行長特德·戈德索普 (Ted Goldthorpe)。

Good morning, and thanks, everyone, for joining our fourth-quarter and full-year 2023 earnings call. I'm joined today by our Chief Financial Officer, Jason Roos; our Chief Investment Officer, Patrick Schafer; and our Chief Accounting Officer, Brandon Satoren. I'll provide brief highlights on the company's performance and activities for the year. Patrick will provide commentary on our investment portfolio and our markets, and Jason will discuss our operating results and financial condition in greater detail.

早安，感謝大家參加我們的 2023 年第四季和全年財報電話會議。今天我們的財務長傑森·羅斯 (Jason Roos) 也加入了我的行列。我們的首席投資長 Patrick Schafer；以及我們的首席會計官布蘭登·薩托倫 (Brandon Satoren)。我將簡要介紹公司今年的業績和活動。派崔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。

Yesterday, Portman Ridge announced its fourth-quarter and full-year 2023 results. And we are pleased with the solid earnings power of the portfolio despite operating in a somewhat challenging market conditions. During the year, we saw a 10% increase in total investment income and a 16% increase in core investment income year over year. Additionally, our net asset value per share increased from $22.65 per share to $22.76 per share quarter over quarter. Credit quality also improved in the quarter with a reduction in non-accruals on a cost market value and company count basis.

昨天，Portman Ridge 公佈了第四季和 2023 年全年業績。儘管市場條件頗具挑戰性，但我們對投資組合的穩健獲利能力感到滿意。全年總投資收益年增10%，核心投資收益較去年同期成長16%。此外，我們的每股淨值季比從每股 22.65 美元增加到每股 22.76 美元。本季的信貸品質也有所改善，以成本市場價值和公司數量計算的非應計費用有所減少。

We continued our accretive repurchase program, purchasing 101,680 shares at an average cost of approximately $1.8 million during the fourth quarter. Due to the continued strong performance this past quarter, the Board of Directors was able to approve another strong dividend for the first quarter of 2024 in the amount of $0.69 per share, a level that represents a 12.1% annualized return on net asset value. For the full-year 2023, total dividends distributed to shareholders amounted to $2.75 per share, representing a 7.4% increase as compared to the dividend distributed in 2022.

我們繼續實施增量回購計劃，第四季以平均成本約 180 萬美元購買了 101,680 股股票。由於上一季持續強勁的業績，董事會批准了 2024 年第一季的另一次強勁股息，每股 0.69 美元，這一水平相當於 12.1% 的年化淨資產回報率。2023年全年，向股東派發的股利總額為每股2.75美元，較2022年發放的股利成長7.4%。

Turning to conditions in our primary market, new deal activity began picking up in late Q4. And while a primary market has been consistently active for most of 2024 so far, deal activity during 2023 as a whole was meaningfully down relative to 2022 and 2021.

就我們的一級市場狀況而言，新交易活動在第四季末開始回升。儘管迄今為止 2024 年大部分時間一級市場一直保持活躍，但 2023 年整個交易活動相對 2022 年和 2021 年大幅下降。

On the sponsor finance front, the fourth-quarter deal activity began to tick up through a combination of valuation expectations being more reasonable and a belief by most industry participants that interest rates have either reached their peak or near enough that new buyers could reasonably estimate their cost of capital. In both the sponsor and non-sponsor activity, we continue to find the investment opportunities to be very attractive given the combination of higher benchmark rates, lower leverage on new deals, higher equity contributions from sponsors, and better documentation.

在贊助商融資方面，第四季度的交易活動開始增加，原因是估值預期更加合理，而且大多數行業參與者相信利率已經達到峰值或接近峰值，新買家可以合理地估計他們的利率。成本。在保薦人和非保薦人活動中，我們繼續發現投資機會非常有吸引力，因為基準利率較高、新交易槓桿率較低、保薦人股權貢獻較高以及更好的文件記錄。

As has been the case for the last couple of quarters, we continue to be very selective on new investment opportunities, and have overall found investments in existing portfolio companies more attractive in new borrowers. To that end, during the fourth quarter, 55% of our capital deployed was in existing portfolio companies as compared to 45% being deployed in new into new borrowers, three new borrowers to be specific. Our goal continues to be -- to maintain an exceptionally diverse -- diversified portfolio and invest in companies that potential -- have the potential to provide strong returns for our shareholders.

與過去幾季的情況一樣，我們繼續對新的投資機會非常挑剔，總體上發現現有投資組合公司的投資對新借款人更具吸引力。為此，在第四季度，我們部署的 55% 資本投入了現有的投資組合公司，而 45% 的資本投入了新借款人（具體是三個新借款人）。我們的目標仍然是——保持極其多元化的投資組合，並投資於有潛力為我們的股東帶來豐厚回報的公司。

Refocusing on Portman Ridge, we continue to believe our buyback. Our stock remains undervalued throughout 2023 and consistently repurchased shares under a renewed stock purchase program. During the year, we repurchased an incremental 224,933 shares for an aggregate cost of approximately $4.4 million. This compares to an aggregate cost of $3.8 million for full-year 2022. Consistent with prior years, the company's Board of Directors renewed our $10 million stock buyback program for another year.

重新關注波特曼嶺，我們仍然相信我們的回購。2023 年，我們的股票仍然被低估，並根據新的股票購買計畫持續回購股票。年內，我們回購了 224,933 股增量股票，總成本約 440 萬美元。相較之下，2022 年全年的總成本為 380 萬美元。與往年一樣，公司董事會將 1,000 萬美元的股票回購計畫再延長一年。

And 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長帕特里克·謝弗 (Patrick Schafer)，以審查我們的投資活動。

Thanks, Ted. Turning now to slide 5 of our presentation and the sensitivity of our earnings to interest rates. As of December 31, 2023, approximately 90% of our debt portfolio are either floating rate -- were floating rate to either a spread -- with a full rate with the spread to the interest rate index such as SOFR or primary. But substantially, all of these is being linked to SOFR.

謝謝，泰德。現在轉向我們簡報的第 5 張投影片以及我們的收益對利率的敏感度。截至2023 年12 月31 日，我們約90% 的債務投資組合要么是浮動利率——要么​​是利差浮動利率——要么​​是與SOFR 等利率指數或主要利率指數利差的全利率。但實質上，所有這些都與 SOFR 相關。

As you can see from the chart, the underlying benchmark rates of our assets during the quarter lagged the prevailing market rates and still remain below the SOFR rate as of March 8, 2024. But between the market transition last year from LIBOR to SOFR and the recent pause from the Fed, the gap is the narrowest it has been since the onset of the Fed rate hikes cycle.

從圖表中可以看出，本季我們資產的基礎基準利率落後於現行市場利率，截至 2024 年 3 月 8 日仍低於 SOFR 利率。但從去年市場從 LIBOR 轉向 SOFR 到最近聯準會暫停升息之間，差距是自聯準會升息週期開始以來最窄的。

For illustrative purposes, if all of our assets were to reset to a three-month SOFR rate, we would expect to generate an incremental $86,000 of quarterly income. Having said that, slide 7 shows the aggregate impact to NII on a run rate basis of both our assets and liabilities as of December 31, 2023. Given the relatively shallow benchmark curve and limited financial impact of this analysis, we will likely be retiring this slide going forward from our earnings presentations as we have been relatively in equilibrium for the past few quarters.

出於說明目的，如果我們的所有資產都重置為三個月 SOFR 利率，我們預計將產生 86,000 美元的增量季度收入。話雖如此，投影片 7 顯示了截至 2023 年 12 月 31 日我們的資產和負債的運行率對 NII 的整體影響。鑑於基準曲線相對較淺且該分析的財務影響有限，我們可能會從我們的收益報告中取消這張投影片，因為我們在過去幾個季度相對處於平衡狀態。

Skipping down to slide 11. Originations for the fourth quarter remain at a lower level than prior year fourth quarter, as well as below the repayment levels, resulting in net repayments in sales of approximately $30.1 million. Our new investments made during the quarter are expected to yield a spread to SOFR of 798 basis points on par value, and the investments were purchased at a cost of approximately 96.3% of par. Our investment securities portfolio at the end of the fourth quarter remained highly diversified. We ended the year with investments spread across 27 different industries and 100 different entities, all while maintaining an average par balance per entity of approximately $3.1 million.

跳至投影片 11。第四季的資金來源仍低於去年第四季的水平，也低於償還水平，導致銷售額淨償還額約為 3,010 萬美元。我們在本季進行的新投資預計將產生以票面價值計算的 SOFR 798 個基點的利差，而這些投資的購買成本約為票面價值的 96.3%。截至第四季末，我們的投資證券組合仍保持高度多元化。年底，我們的投資遍及 27 個不同產業和 100 個不同實體，同時每個實體的平均票面餘額維持在約 310 萬美元。

Turning to slide 12. In aggregate, securities on non-accrual status remain relatively low and decreased to seven investments at the end of the fourth quarter of 2023, as compared to eight investments on non-accrual status as of September 30, 2023, as one of our borrowers emerged from bankruptcy in Q4 and our restructured loan return to cash pay. These seven investments on non-accrual status at the end of the fourth quarter of 2023 represent 1.3% and 3.2% of the Company's investment portfolio at fair value and amortized cost, respectively.

轉到投影片 12。整體而言，非應計狀態的證券仍相對較低，並在2023 年第四季末減少至7 項投資，而截至2023 年9 月30 日，非應計狀態的投資有8 項，因為我們的一位借款人出現了從第四季度的破產和我們的重組貸款回歸到現金支付。截至2023年第四季末，這七項非應計投資分別占公司以公允價值和攤餘成本計算的投資組合的1.3%和3.2%。

On slide 13, excluding our non-accrual investments, we have an aggregate debt securities fair value of $373 million, which represents a blended price of 94.3% of par and is 88% comprised of first-lien loans at par value. Assuming the par recovery, our December 31, 2023 at fair values reflected potential of $29.2 million of incremental NAV value, a 13.7% increase or $3.12 per share, excluding any recovery on non-accrual investments. If we were to overlay an illustrative 10% default rate and 70% recovery rate to the entire debt securities portfolio, again, excluding nonaccrual investments, the incremental NAV value potential would be $1.83 per share or an 8% increase to NAV per share as of December 31, 2023.

在投影片13 中，不包括我們的非應計投資，我們的債務證券公允價值總額為3.73 億美元，相當於面額94.3% 的混合價格，其中88% 由以面額計算的第一留置權貸款組成。假設票面價值恢復，我們 2023 年 12 月 31 日的公允價值反映了 2,920 萬美元增量資產淨值的潛力，成長 13.7% 或每股 3.12 美元，不包括非應計投資的任何恢復。如果我們將說明性的10% 違約率和70% 回收率涵蓋到整個債務證券投資組合，同樣不包括非應計投資，則增量資產淨值潛力將為每股1.83 美元，或每股資產淨值增加8%。

Finally, turning to slide 14. If you aggregate the three portfolios acquired over the last three years, we have purchased a combined $434.8 million of investments, and have realized over 82% of these investments at a combined realized and unrealized mark of 102% of fair value at the time of closing the respective mergers.

最後，翻到投影片 14。如果將過去三年收購的三個投資組合進行匯總，我們已購買了總計4.348 億美元的投資，並且已實現了其中超過82% 的投資，已實現和未實現的總金額為交割時公允價值的102%各自的合併。

I'll now turn the call over to Jason to further discuss our financial results for the period.

我現在將把電話轉給傑森，進一步討論我們這段期間的財務表現。

Thanks, Patrick. As both Ted and Patrick previously mentioned, our results for the fourth-quarter and full-year 2023 reflect strong financial performance.

謝謝，派崔克。正如 Ted 和 Patrick 之前所提到的，我們第四季和 2023 年全年的業績反映了強勁的財務表現。

Our total investment income for the full-year 2023 was $76.3 million, of which $63.5 million was attributable to interest income from the debt securities portfolio. This compares to total investment income for the full-year 2022 of $69.6 million, of which $55.8 million was attributable to interest income from the debt securities portfolio. The increase was largely due to growth in the previously discussed interest income, PIK dividend, and fee income. Excluding the impact of purchase price accounting, our core investment income for the year was $74.5 million, an increase of $10.3 million as compared to core investment income of $64.2 million in 2022.

我們2023年全年的總投資收入為7,630萬美元，其中6,350萬美元來自債務證券投資組合的利息收入。相較之下，2022 年全年總投資收入為 6,960 萬美元，其中 5,580 萬美元來自債務證券投資組合的利息收入。這一增長主要是由於先前討論的利息收入、PIK 股息和費用收入的增長。剔除購買價格核算的影響，我們今年的核心投資收入為7,450萬美元，比2022年的核心投資收入6,420萬美元增加了1,030萬美元。

Our net investment income for the full-year 2023 was $34.8 million or $3.66 per share. As of December 31, 2023 and December 31, 2022, the weighted average contractual interest rate on our interest earning debt securities was approximately 12.5% and 11.1% respectively. We continue to believe the portfolio remains well positioned to generate incremental revenue in future quarters due to the current rate environment.

我們 2023 年全年的淨投資收入為 3,480 萬美元，即每股 3.66 美元。截至2023年12月31日及2022年12月31日，生息債務證券的加權平均合約利率分別約為12.5%及11.1%。我們仍然相信，由於當前的利率環境，該投資組合仍然能夠在未來幾季產生增量收入。

Total expenses for the year ended December 31, 2023 were $46.8 million compared to total expenses of $40.7 million for the full-year 2022. This increase was largely due to an increase in interest and amortization of debt issuance costs, which was largely driven by the increase in interest rates on the company's liabilities.

截至 2023 年 12 月 31 日的年度總費用為 4,680 萬美元，而 2022 年全年總費用為 4,070 萬美元。這一增長主要是由於債務發行成本的利息和攤銷增加，而債務發行成本的增加主要是由公司負債利率的上升所推動的。

Our net asset value for the fourth quarter of 2023 was $213.5 million or $22.76 per share, an increase of $0.11 per share as compared to $214.8 million or $22.65 per share in the third quarter of 2023. The quarter-over-quarter increase in NAV per share, despite total NAV decreasing slightly, was predominantly driven by the repurchase of 101,680 shares during the fourth quarter.

2023 年第四季的淨資產值為 2.135 億美元，即每股 22.76 美元，較 2023 年第三季的 2.148 億美元，即每股 22.65 美元增加了 0.11 美元。儘管總資產淨值略有下降，但每股資產淨值環比增長主要是由於第四季度回購了 101,680 股股票。

Turning to the liability side of the balance sheet, as of December 31, 2023, we had a total of $325.7 million par value of borrowings outstanding at a current weighted average interest rate of 7%. This balance was comprised of $92 million in borrowings under our revolving credit facility, $108 million of 4.78% notes due 2026, and $125.7 million in secured notes due 2029.

轉向資產負債表的負債方面，截至 2023 年 12 月 31 日，我們的未償還借款面額總計 3.257 億美元，目前加權平均利率為 7%。該餘額包括我們循環信貸額度下的 9,200 萬美元借款、2026 年到期的 1.08 億美元利率為 4.78% 的票據以及 2029 年到期的 1.257 億美元有擔保票據。

As of the end of the year, we had $23 million of available borrowing capacity under the senior secured revolving credit facility and no remaining borrowing capacity under the 2018-2 notes, as the reinvestment period ended shortly after our draw on November 20, 2022. As of December 31, 2023, our leverage ratio was 1.5 times on a gross basis and 1.2 times on a net basis. From a regulatory perspective, our asset coverage ratio at year end was 165%.

截至年底，我們在優先擔保循環信貸安排下擁有 2,300 萬美元的可用借款能力，而 2018-2 票據下沒有剩餘借款能力，因為再投資期在 2022 年 11 月 20 日提款後不久就結束了。截至2023年12月31日，我們的槓桿率為總槓桿率為1.5倍，淨槓桿率為1.2倍。從監管角度來看，我們年末的資產覆蓋率為165%。

Finally, and as announced March 13, 2024, a quarterly distribution of $0.69 per share was approved by the Board and declared payable on April 2, 2024, to stockholders of record at the close of business on March 25, 2024. This is a $0.01 per share distribution increase as compared to the first quarter of 2023. Total stockholder distributions for 2023 amounts to $2.75 per share.

最後，正如 2024 年 3 月 13 日宣布的那樣，董事會批准了每股 0.69 美元的季度分配，並宣佈於 2024 年 4 月 2 日向 2024 年 3 月 25 日收盤時登記在冊的股東支付。與 2023 年第一季相比，每股分配增加了 0.01 美元。2023 年股東分配總額為每股 2.75 美元。

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

這樣，我會將電話轉回特德。

Thank you, Jason. Ahead of questions, I'd like to reemphasize that we believe we are well positioned to take advantage of the current market environment as shown throughout 2023. Through our proven investment strategy, we believe we will be able to deliver strong returns to our shareholders in 2024. Thank you once again to all of our shareholders for your ongoing support.

謝謝你，傑森。在提問之前，我想再次強調，我們相信我們已做好充分準備，能夠充分利用 2023 年全年的當前市場環境。透過我們行之有效的投資策略，我們相信我們將能夠在 2024 年為股東帶來豐厚的回報。再次感謝所有股東一直以來的支持。

This concludes our prepared remarks, and I will turn over the call for any questions.

我們準備好的演講到此結束，我將轉交任何問題的電話。

(Operator Instructions) Christopher Nolan, Ladenburg.

（操作員說明）克里斯多福諾蘭，拉登堡。

Hey, guys. My question is one-time reimbursement expense relate to, please?

大家好。我的問題是一次性報銷費用與什麼有關？

eah, yeah. Hey, Chris. This is Jason. That�s a reimbursement to the fund related to and for administrative transition services paid to personnel of OHAI, Garrison, and HCAP following the acquisition of those BDCs.

呃，是啊。嘿，克里斯。這是傑森。這是對收購 OHAI、Garrison 和 HCAP 後支付給這些 BDC 人員的行政過渡服務相關基金的補償。

Okay. And then, given the 2018-2 secured notes are no longer in their reinvestment period, and given the slow cautious investment perspective, you guys are taking on new investments. How should we look at the balance sheet growing or not growing in couple of quarters?

好的。然後，考慮到 2018 年 2 月的擔保票據不再處於再投資期，並且考慮到緩慢謹慎的投資觀點，你們正在進行新的投資。我們該如何看待資產負債表連續幾季成長或不成長？

Yeah. Hey, Chris. It's Patrick. So I'd say, I think the way I would frame it is, I think relative to December 31, I think you could reasonably expect more of a reduction in terms of our liabilities. As you saw at the end of the quarter, we had something like $70 million of cash on the balance sheet. I think it's reasonable to assume a chunk of that is ultimately going to go towards debt repayment.

是的。嘿，克里斯。是派崔克。所以我想說，我認為我的框架方式是，相對於 12 月 31 日，我認為你可以合理地預期我們的負債會減少更多。正如您在本季末看到的那樣，我們的資產負債表上有大約 7000 萬美元的現金。我認為可以合理地假設其中很大一部分最終將用於償還債務。

But I would say absent that, we would expect, generally speaking, over the course of the year, I would imagine to be in a relatively stable place. I mean, if you assume, again, some chunk of that is repaid, you probably be down to something like somewhere between 1.3 and 1.4 times gross leverage, and probably on the lower end from a net leverage perspective.

但我想說的是，如果沒有這一點，一般來說，我們預計在這一年中，我會處於相對穩定的位置。我的意思是，如果您再次假設其中一部分已償還，那麼您的總槓桿率可能會下降到 1.3 到 1.4 倍之間，從淨槓桿率的角度來看，可能處於較低水平。

I could stay in that leverage that we have for the quarter, and that is right within our wheelhouse in terms of what we set our target leverage ranges is on a long-term basis. So I think from that point forward, you could reasonably expect relatively consistent portfolio size again, obviously, timing around when things are repaid versus new investments. But I think, generally speaking, we're probably on the tail end of our decrease in our portfolio in favor of debt repayment.

我可以保持本季的槓桿水平，就我們設定的長期目標槓桿範圍而言，這正是我們的掌控範圍。因此，我認為從那時起，您可以合理地預期再次相對一致的投資組合規模，顯然，償還貸款與新投資的時間表。但我認為，一般來說，我們可能正處於減少投資組合以支持債務償還的尾聲。

Got you. And then, final question is on the driver. I noticed that ATP Oil is no longer nonaccrual. Was the exit from that the driver for the realized loss?

明白你了。然後，最後一個問題是關於司機的。我注意到 ATP 油不再是非應計的。退出是已實現損失的驅動因素嗎？

So no, I don't think I don't think ATP was ever on nonaccrual. It's an equity position, so it's not -- it doesn't have a stated coupon or anything to otherwise have it accrue.

所以不，我不認為 ATP 曾經是非應計製的。這是一個股權頭寸，所以它不是——它沒有規定的優惠券或任何其他可以累積的東西。

The realized losses you're seeing there, Chris, are related to primarily a couple of CLOs that were called this last quarter. And as a result, we flipped previously recognized unrealized losses into realized this quarter.

克里斯，你看到的已實現損失主要與上個季度的幾個 CLO 有關。因此，我們將先前確認的未實現損失轉為本季已實現損失。

Got you. And you guys are holding the equity strips on those CLOs, right?

明白你了。你們持有這些 CLO 的股權，對嗎？

Correct. I mean, again, it's As Jason mentioned, I think one or two of them.

正確的。我的意思是，正如傑森所提到的，我認為其中有一兩個。

Not anymore.

不再。

Yeah. Finally got called. So no. But broadly speaking, when you look at our CLO bucket, that is the equity strips.

是的。終於接到電話了。所以不行。但從廣義上講，當你看我們的 CLO 桶時，那就是權益條帶。

I'll get back in line. Thank you.

我會回去排隊。謝謝。

Paul Johnson, KBW.

保羅·約翰遜，KBW。

Yeah. Good morning. Thanks for taking my question. I can ask on the reimbursement, but I'm just -- are those expenses, the advisor essentially reimburse for this quarter, are those expenses done and over with at this point, or do you expect there'll be more of those next -- this year? Or where do those stand?

是的。早安.感謝您提出我的問題。我可以詢問報銷事宜，但我只是 - 這些費用是顧問在本季度基本上報銷的嗎？或是那些站在哪裡？

No, no. That was a one-time expense reimbursement, and I would say, for a good run rate on it, administrative expenses, you should look at the quarter amount for that being roughly the $400,000, $450,000. That's the quarterly run rate going forward. So you should see that.

不，不。這是一次性費用報銷，我想說，為了獲得良好的運行率，行政費用，你應該看看季度金額大約是 400,000 美元、450,000 美元。這是未來的季度運行率。所以你應該看到這一點。

Yeah. Got you. Okay. And then, yeah, thanks for that. And then, as far as the realization, I mean, it sounds like most of that is driven by CLOs this quarter getting called away. I mean, were those � were most of those realized losses? That -- I mean, that obviously, position, where those already March? Or was there any extra markdown this quarter from those?

是的。明白你了。好的。然後，是的，謝謝你。然後，就實現而言，我的意思是，聽起來大部分都是由本季度 CLO 被叫走推動的。我的意思是，這些是已實現損失的大部分嗎？那——我的意思是，顯然，那個位置，那些已經行進的人在哪裡？或者本季有任何額外的降價嗎？

Yeah. So you're seeing total $15.6 million total realized loss, about $14.4 million of that was flipped from unrealized to realized. And then, the remainder was incremental this quarter related to a couple of other CLO positions that we still hold.

是的。因此，您會看到總已實現損失總計 1,560 萬美元，其中約 1,440 萬美元從未實現轉為已實現。然後，其餘部分是本季增量，與我們仍然持有的其他幾個 CLO 職位相關。

That's okay. I appreciate it. That's helpful. And then, in terms of just leverage in the portfolio. Obviously, you guided you're seeing a good spot from that leverage base. I mean, where you�d like to have the portfolio running going forward around levels, or do you feel comfortable actually adding a little bit of leverage into the year?

沒關係。我很感激。這很有幫助。然後，就投資組合中的槓桿而言。顯然，您引導您從槓桿基礎上看到了一個好位置。我的意思是，您希望投資組合在未來的水平上運行，或者您是否願意在今年增加一點槓桿？

Yeah. It's a great question. I mean, we provided guidance on where we want to be in terms of target leverage range. And obviously, on a net basis, we�re at the -- we're below the low end of that. The investment environment today is very attractive. We're seeing very wide spreads and obviously, high SOFR.

是的。這是一個很好的問題。我的意思是，我們就目標槓桿範圍的目標提供了指導。顯然，從淨值來看，我們處於——我們低於該水平的低端。今天的投資環境非常有吸引力。我們看到價差非常大，而且 SOFR 顯然很高。

So it is a decent deployment environment, but we're continuing to be pretty prudent about investing money. So I don't think you're going to see a big spike in leverage. But I think we are operating at the low end of our target range.

因此，這是一個不錯的部署環境，但我們在投資方面仍然非常謹慎。所以我認為槓桿率不會大幅上升。但我認為我們的營運處於目標範圍的低端。

Okay. And then, last one for me, simple one, but on the share repurchases for the quarter, do you guys have any on hand and estimation of how, what per share basis that was accretive to NAV this quarter?

好的。然後，對我來說，最後一個問題很簡單，但是關於本季度的股票回購，你們手頭上有沒有任何現有的資料並估計本季度的資產淨值是如何增加的，每股基礎價值是多少？

Yeah. We'll have to get back to you on that one. I don't have that on hand.

是的。我們必須就此問題與您聯繫。我手邊沒有那個。

That�s okay. No problem. All right. Thanks for taking my questions.

沒關係。沒問題。好的。感謝您回答我的問題。

Thanks.

謝謝。

Steven Martin, Slater.

史蒂文馬丁，斯萊特。

Hi. Most of my questions have been asked and answered. Can you talk about the trends in PIK for the quarter? And also, I know you've talked about the portfolio for the quarter, but we're close to the end of the quarter. Can you say anything about deployments and repayments so far or where you expect?

你好。我的大部分問題都已被提出並得到解答。您能談談本季 PIK 的趨勢嗎？而且，我知道您已經談論了本季的投資組合，但我們已經接近本季末了。您能談談到目前為止的部署和還款情況或您的預期嗎？

Yeah. I think starting with your latter question. Look, I think probably, where we sit today, we might be a little bit down still for the quarter, but there's a couple of things that we're working on just from an investment perspective. So as I mentioned to Christopher Nolan, just depending on whether that some of those things ultimately hit in March versus get finalized in early April. Obviously, it affects a little bit of that. But I would say we're probably still slight net repayer.

是的。我想從你的後一個問題開始。我認為，就我們今天的情況而言，本季的業績可能仍會略有下降，但從投資的角度來看，我們正在做一些事情。正如我向克里斯多福諾蘭提到的，這取決於其中一些事情最終是在三月發生還是在四月初完成。顯然，它會影響一點點。但我想說，我們可能還是輕微的淨還款者。

Okay. And on the PIK?

好的。那麼在 PIK 上呢？

Yeah. On the PIK. Look, I wouldn't expect there to be meaningful trends in any direction. As we've talked about before, there are a lot of instances where, as we're thinking about an investment in a security, we're taking the combination of cash and PIK and thinking about it in as an aggregate investment. So from our perspective, if we think we can structure a higher overall returning piece of paper but a little -- a small component of that is PIK, we think that's an attractive opportunity to do so.

是的。在 PIK 上。聽著，我不認為任何方向都會出現有意義的趨勢。正如我們之前討論過的，在許多情況下，當我們考慮對證券進行投資時，我們會將現金和 PIK 結合起來，並將其視為一項整體投資。因此，從我們的角度來看，如果我們認為我們可以建立一份整體回報更高的論文，但其中一小部分是 PIK，我們認為這是一個有吸引力的機會。

Obviously, there are small instances where we intentionally go into a transaction with an all-PIK security. But I think generally speaking, if you look at our peak investment, our PIK income as a whole broadly, it's in situations where there is a mix of cash and PIK component to the securities.

顯然，在一些小例子中，我們故意使用全 PIK 證券進行交易。但我認為一般來說，如果你從整體上看我們的峰值投資、我們的 PIK 收入，你會發現證券中存在現金和 PIK 成分的情況。

Okay. And can you talk about the portfolio restructurings, leverage ratio within the portfolio, what you're expecting in trend?

好的。您能談談投資組合重組、投資組合內的槓桿率以及您對趨勢的預期嗎？

Yeah. I think we �- no, a great question. I think we � there�s -- it somewhere on our slides. I think our leverage ratios are roughly flat from the portfolio quarter over quarter. Again, I think generally speaking, we've mentioned this trend, but new positions tend to be, I'll say lower levered than perhaps legacy positions just because of the interest coverage and how borrowers are thinking about that.

是的。我認為我們……不，這是一個很好的問題。我想我們就在那裡——它就在我們幻燈片上的某個地方。我認為我們的槓桿率與投資組合的季度環比大致持平。再說一次，我認為一般來說，我們已經提到了這種趨勢，但我想說的是，新頭寸的槓桿率往往低於傳統頭寸，這只是因為利息覆蓋率以及借款人對此的看法。

But I would say, again, on the whole, if you look at our market as well as BDCs broadly, underlying performance of companies continues to hold up. People are still seeing somewhat decent revenue and EBITDA trends. So I'd say on the margin, we probably would expect flat to decreasing leverage over the whole of our portfolio.

但我想說，總的來說，如果你廣泛地審視我們的市場和 BDC，你會發現公司的基本業績持續保持強勁。人們仍然看到了相當不錯的收入和 EBITDA 趨勢。因此，我想說的是，我們可能會預期整個投資組合的槓桿率將持平或下降。

And amendment?

以及修正案？

First of all, like you saw this last quarter, nonaccruals were down. I think you're going to -- I think credit quality as we sit here today is stable across the portfolio.

首先，正如您在上個季度看到的那樣，非應計費用有所下降。我認為你會——我認為我們今天坐在這裡的整個投資組合的信用品質是穩定的。

And what about amendments and extensions?

那麼修改和擴充呢？

I would say, there's probably still a little bit of an uptick in extension activity in general just because, again, as we've mentioned some of these trends. The M&A market is coming back where I think generally speaking, sponsors obviously try and get themselves as much flexibility as they can in terms of when they might want to exit to the portfolio.

我想說的是，總體而言，擴展活動可能仍有一點上升，只是因為我們已經提到了其中一些趨勢。併購市場正在回歸，我認為一般來說，贊助商顯然會嘗試在何時退出投資組合方面獲得盡可能多的靈活性。

So we're definitely seeing still some reasonable amount of amendment or extension activity just because, look, we like the credit with companies performing fine. We're happy to give the borrower the sponsor, two more years to decide whether they want to exit the company. But I wouldn't say there's any uptick in forced extensions and things like that. I think it's generally a relatively stable/average type of environment for that activity.

因此，我們肯定會看到一些合理數量的修改或延期活動，只是因為我們喜歡表現良好的公司的信用。我們很高興為借款人提供兩年的時間來決定他們是否要退出公司。但我不會說強制延期之類的事情有任何增加。我認為對於該活動來說，這通常是相對穩定/平均的環境類型。

And in the past, you've said you were getting paid for those. Would you still make the same comment?

過去，您說過您會因此獲得報酬。你還會做出同樣的評論嗎？

Yes. We still either get a fee or or some type of pricing again. The market right now, we are seeing where we sit today, broadly speaking, spreads coming in as a whole in terms of new deals. So sometimes, keeping the spread the same is the same -- is an economic benefit to us as opposed to some type of repricing transaction.

是的。我們仍然會再次收取費用或某種類型的定價。目前的市場，我們看到今天所處的位置，總體而言，新交易方面的價差整體上出現。因此，有時，保持利差相同是一樣的——這對我們來說是一種經濟利益，而不是某種類型的重新定價交易。

But yes, I'd say generally speaking, that those activities are not for free. But again, in a situation where a company has meaningfully delevered and they want an incremental two or three years, keeping it at, let's say, at $650 as opposed to getting price down at $600 is actually an economic benefit to us. So I would say you're still getting paid for it, but it sometimes depending on the characteristics, it's a little bit less obvious how you're getting paid.

但是，是的，我想說一般來說，這些活動不是免費的。但同樣，在一家公司已經有意義地去槓桿化並且他們希望在兩到三年內增量的情況下，保持在650 美元而不是把價格降到600 美元實際上對我們來說是一種經濟利益。所以我想說你仍然會為此獲得報酬，但有時取決於特徵，你如何獲得報酬有點不太明顯。

All right. Thank you very much.

好的。非常感謝。

David Miyazaki, Confluence Investment Management.

大衛宮崎，Confluence 投資管理公司。

Thank you. Thank you for taking my questions. Could you just remind us what your longer-term plan is for your CLO investments? You�re around about, let's say, about $9 million now that you're holding. Where do you plan to take this in the future?

謝謝。感謝您回答我的問題。您能否提醒我們您的 CLO 投資的長期計劃是什麼？比方說，你現在持有的資產約為 900 萬美元。您將來打算把它帶到哪裡？

Yeah. I mean, the plan is to get to zero. I mean, we're trying to wind down the portfolio and get the CLOs called. So the plan is to get to zero.

是的。我的意思是，計劃是歸零。我的意思是，我們正在努力縮減投資組合並召集 CLO。所以計劃是歸零。

Okay. That was my thought on that. And does that affect where your target leverage ratio is? As that winds down, that do you feel like you have more capacity to take the balance sheet leverage up higher?

好的。這就是我的想法。這會影響您的目標槓桿率嗎？隨著時間的推移，您是否覺得您有更大的能力提高資產負債表槓桿率？

In my opinion, not particularly again. It's $8 million. It doesn't have a meaningful impact on the asset side. We generally feel like we want to be in the 1.25 to 1.4 times net leverage. So I wouldn't say that that necessarily has a meaningful impact on how we think about leverage for the portfolio as a whole and how we think about either taking up or down that leverage for a little bit.

在我看來，又不是特別的。這是800萬美元。它對資產方面並沒有產生有意義的影響。我們普遍認為我們希望淨槓桿處於 1.25 至 1.4 倍之間。因此，我不會說這必然會對我們如何看待整個投資組合的槓桿以及我們如何考慮稍微提高或降低槓桿產生有意義的影響。

I'd say, we probably would be more focused on the macro in terms of where we think the economy and broadly as well as how attractive we think the investing environment is. That probably would be more so driving our leverage decisions as opposed to the CLO portfolio itself.

我想說，我們可能會更關注宏觀經濟，以及我們認為投資環境的吸引力。與 CLO 投資組合本身相比，這可能更能推動我們的槓桿決策。

Okay. Great. Thanks. And then, if I just step back and widen the lens a little bit. I mean, Ted, you and the teams have a lot of experience in the middle market. One of the things that managers in the industry tend to do is talk about the ideal borrower profile to go after. And it's almost always whatever they happen to be working on.

好的。偉大的。謝謝。然後，如果我退後一步，把鏡頭放大一點。我的意思是，特德，你和團隊在中間市場有豐富的經驗。行業管理者傾向於做的事情之一就是談論要追求的理想藉款人概況。而且幾乎總是他們正在做的事情。

And since you're working in the upper middle market and you've worked with some of these acquisitions that have been hit from the lower middle market, at $100 million, it looks like in EBITDA, it's been your home neighborhood as far as what your weighted average EBITDA is. Is that pretty close to what your, say, the median would be? And how do you feel about where you are? Do you like that neighborhood? Or do you think that you should be going up bigger, is one of the trends I hear about? Or do you like sticking in the middle or lower side where you have more bargaining power?

由於你在中高端市場工作，並且你已經參與了一些來自中低端市場的收購，價值 1 億美元，從 EBITDA 來看，它一直是你的家鄉。這是否非常接近您的中位數？您對自己所處的位置感覺如何？你喜歡那個街區嗎？還是你認為你應該做得更大，這是我聽到的趨勢之一？還是你喜歡堅持在中間或較低的位置，這樣你有更多的議價能力？

Yeah. I think the latter. I mean, our franchise is really what would I call big enough. So we do want to lend to companies below $15 million of EBITDA. Our weighted average EBITDA on our portfolio, I think is a little misleading. It skews high versus where I think our real franchise is. I mean, the reality is some of our peers are competing head-to-head with the syndicated markets and the banks, which we are not.

是的。我認為是後者。我的意思是，我們的特許經營權確實是我所說的足夠大的。因此，我們確實希望向 EBITDA 低於 1500 萬美元的公司提供貸款。我認為我們投資組合的加權平均 EBITDA 有點誤導。與我認為我們真正的特許經營權相比，它的偏差很大。我的意思是，現實是我們的一些同行正在與銀團市場和銀行正面競爭，而我們不是。

And just given our size as a platform, we just think -- you can see our average spread to LIBOR is L750 versus a market at the large cap end of like L525. So our credit quality is very stable, nonaccrual is really low. So we think as long as the company is big enough, we think we get paid extra returns and we don't see a discernible difference in credit quality. So I would say that weighted average EBITDA always looks high if you really think about our core franchise and it's driven by a couple of outliers.

考慮到我們作為一個平台的規模，我們只是認為 - 你可以看到我們與倫敦銀行同業拆借利率 (LIBOR) 的平均利差是 L750，而大盤市場的平均利差是 L525。所以我們的信用品質非常穩定，應計利息很低。因此，我們認為只要公司夠大，我們就可以獲得額外的回報，而且信用品質沒有明顯的差異。因此，我想說，如果你真正考慮我們的核心特許經營權，那麼加權平均 EBITDA 看起來總是很高，而且它是由幾個異常值驅動的。

Okay. Yeah. That oftentimes tend to be one of the limitations of looking at weighted averages.

好的。是的。這往往是查看加權平均值的限制之一。

Yeah. I mean, also it�s against -- to that point. There�s a lot of instances where if we get involved in a roll-up acquisition strategy at $40 million of EBITDA, that might be $180 million of EBITDA now, but obviously our original investment was $40 million, and that�s how we look at it. And so, we tend to be a little bit more active in, I would say, the quote-unquote syndicated market, but more so in periods of stress where we�re looking at acquiring assets off of bank balance sheets and things like that and those would tend to skew higher EBITDA, but that is more of an opportunistic purchasing as opposed to, as Ted said, at the core of our franchise.

是的。我的意思是，在這一點上它也是反對的。在許多情況下，如果我們參與 4000 萬美元 EBITDA 的匯總收購策略，那麼現在的 EBITDA 可能是 1.8 億美元，但顯然我們最初的投資是 4000 萬美元，這就是我們的看法在它。因此，我想說，我們傾向於在報價-非報價銀團市場中更加活躍，但在壓力時期更是如此，我們正在考慮從銀行資產負債表中收購資產以及類似的事情，這些往往會導致更高的EBITDA，但這更多的是一種機會主義購買，而不是像特德所說的那樣，是我們特許經營的核心。

Right. Okay. Last topic, I like slide 14. It�s always -- I mean, it�s just good to see the history of how you march through acquiring assets. And the industry has a mixed bag of outcomes with regard to acquiring portfolios of loans from other managers. And I mean, what can you say about how your realizations or even what it used to ongoing wind downs have been relative to your expectations?

正確的。好的。最後一個主題，我喜歡投影片 14。我的意思是，看到你如何收購資產的歷史總是很好的。該行業在從其他管理公司收購貸款組合方面的結果好壞參半。我的意思是，你能說一下你的實現，甚至它用於持續減少的情況與你的期望的關係嗎？

And when we look at the larger amounts that are still held, are you getting to a point where the proportion of difficult loans and conditions is higher now because the end of the portfolio is harder to wind down? Or do you think that the progress is going to be relatively linear?

當我們查看仍然持有的較大金額時，您是否已經達到了困難貸款和條件的比例現在更高的程度，因為投資組合的末端更難結束？或者您認為進展會相對線性嗎？

I think the latter. It�s a great question, actually. I mean, the reality is if you look at slide 14, I mean, the Oak Hill portfolio were basically out of Harvest for less than $10 million of exposure and we don�t -- it�s not on here because that�s like the original platform was KCAP and we�re down to a very small number in KCAP too.

我認為是後者。實際上，這是一個很好的問題。我的意思是，現實情況是，如果你看一下幻燈片14，我的意思是，Oak Hill 投資組合基本上都在Harvest 之外，風險敞口不到1000 萬美元，而我們沒有——它不在這裡，因為那就像最初的平台是 KCAP，我們的 KCAP 數量也減少到了極少數。

So really, the legacy loans relate to Garrison. A number of those loans, some are more challenged than not, but most of them are lower yielding. And so, Garrison had an on balance sheet CLO structure. So those are the types of loans, those lower spreading loans tend to be the ones that get refinanced later. That being said, we closed the Garrison transaction end of 2020. So we�re 3.5 years into that portfolio. So a lot of those legacy loans are coming up on maturities and other things.

事實上，遺留貸款與加里森有關。這些貸款中有很多，有些面臨的挑戰更大，但大多數貸款的收益率較低。因此，加里森在資產負債表上有一個 CLO 結構。這些就是貸款的類型，那些利差較低的貸款往往是後來獲得再融資的貸款。話雖這麼說，我們在 2020 年底完成了 Garrison 交易。所以我們已經進入該投資組合 3.5 年了。因此，許多遺留貸款將到期或發生其他問題。

One suggestion that, very smart shareholders said to us yesterday is, we may want to break out of that $69 million, how much we�ve extended. Because again, we tend to be -- in the Garrison portfolio specifically, we tend to be a small player. So we usually take the realization. There has been some instances of us extending because we like the credit and we could get more spread. And so, we should break that out for people around proactive extensions versus what else is in the portfolio.

非常聰明的股東昨天對我們提出的一個建議是，我們可能希望突破我們已經擴展的 6900 萬美元。因為，我們往往是──特別是在加里森投資組合中，我們往往是一個小參與者。所以我們通常採取認識。在某些情況下，我們會延期，因為我們喜歡信用並且可以獲得更多的利差。因此，我們應該為人們區分主動擴展和產品組合中的其他內容。

And then, we should also break out for you guys what�s like low yielding as a percentage of the remaining $69 million. But to answer your last -- to answer your very last question, we think it�s going to continue to be linear because a lot of these are coming up on two years or 18 months from the maturity date.

然後，我們也應該為大家介紹一下剩餘 6,900 萬美元中低收益所佔的百分比。但回答你的最後一個問題——回答你的最後一個問題，我們認為它將繼續呈線性，因為其中許多都是在到期日後兩年或 18 個月內出現的。

Okay. Yeah. That�s very helpful. I think that you probably have one of the best, if not the best perspective on taking over portfolios and working them out. And you�ve had a lot of success in recycling this capital and seemingly not come across big surprises to the downside in what you�re doing. So it�s helpful to have some granularity on how that�s actually unfolded and what�s left. So I appreciate that.

好的。是的。這非常有幫助。我認為，對於接管投資組合併解決它們，你可能擁有最好的視角之一，即使不是最好的視角。而且你在回收這些資本方面取得了很大的成功，並且似乎沒有遇到你正在做的事情帶來的巨大意外的負面影響。因此，對實際展開情況以及剩下的內容有一定的了解是有幫助的。所以我很欣賞這一點。

It�s good feedback. That�s good feedback. We got similar feedback from somebody yesterday, and I think it�s good feedback.

這是很好的回饋。這是很好的回饋。昨天我們從某人那裡得到了類似的回饋，我認為這是很好的回饋。

Okay. Thank you very much.

好的。非常感謝。

Thanks, Dave.

謝謝，戴夫。

Deepak Sarpangal, Repertoire Partners.

迪帕克·薩潘加爾（Deepak Sarpangal），劇目合作夥伴。

Thank you. Hey, Ted, Patrick, and team.

謝謝。嘿，泰德、派崔克和團隊。

Hey. How are you?

嘿。你好嗎？

Good to see another solid quarter. Yeah. It seemed like more further progress on both the portfolio management side, in terms of improvements in leverage and portfolio quality. And also, definitely on the capital allocation side, I know you�ve been buying back shares for a few years now, but seems to be increasing in size of that as well, given the accretion that it�s creating.

很高興看到又一個穩定的季度。是的。在槓桿率和投資組合品質的改善方面，投資組合管理方面似乎取得了更大的進展。而且，絕對在資本配置方面，我知道你已經回購股票幾年了，但考慮到它所創造的增值，回購規模似乎也在增加。

A few questions on each of those. One, on the buybacks and capital allocation, I know that you�ve been pretty consistent in repurchasing shares, and you�ve talked about seeing your stock as undervalued, but you�ve also talked about the environment increasingly becoming a pretty attractive place to invest. How do you think about balancing those two alternatives and where to deploy your capital? Especially, because it looked like, maybe in the previous year, you leaned into some of the weakness in the credit market, and appropriately so, had a lot more deployments than repayments on a net basis.

對每一個問題都有幾個問題。一，關於回購和資本配置，我知道您在回購股票方面一直相當一致，並且您談到了您的股票被低估，但您也談到了環境越來越成為一個非常有吸引力的地方投資。您如何考慮平衡這兩種選擇以及將資金部署在哪裡？特別是，因為看起來，也許在前一年，您陷入了信貸市場的一些疲軟狀態，因此，適當的部署比淨額還款要多得多。

And then I think also similarly now, as there was a little bit of an improvement, you�ve seen now more repayments or pay downs. But maybe, one, if you could talk, because I know, it looks like some of the newer investments are yielding quite a high number upfront and other good terms. So that was kind of like the first question, just on the capital allocation side.

然後我認為現在也類似，因為有了一點點改善，你現在看到了更多的還款或首付。但也許，一，如果你能談談，因為我知道，看起來一些較新的投資正在產生相當高的預付款和其他良好的條款。這有點像第一個問題，只是在資本配置方面。

And then on the portfolio management side, it seemed like we don�t have the full details, obviously, in terms of gross versus net by industry, but it seemed like there was either an exit or reduction in some of the areas that are probably those that you viewed as less attractive, whether it�s automotive, consumer, energy. I know you already have pretty low exposures there, but can you maybe talk about if there�s anything that we can�t see in that data, in terms of industry breakdown?

然後在投資組合管理方面，顯然，我們沒有按行業劃分的毛額與淨額的完整細節，但似乎某些領域可能存在退出或減少的情況。汽車、消費品還是能源。我知道你們在這方面的曝光度已經相當低了，但是您能否談談在行業細分方面是否有我們在這些數據中看不到的東西？

And then, finally, it looked like there were some interesting new investments. Just curious to learn more about. In particular, I think the newer ones were Morae, CineMedia -- Media or CineMedia Holdings and Tactical Air Systems. And then, I think there were some follow on investments, Metal Works and LB Holdco. I�d love to hear more about those. Thank you.

最後，看起來有一些有趣的新投資。只是好奇想了解更多。特別是，我認為較新的公司是 Morae、CineMedia -- Media 或 CineMedia Holdings 和 Tactical Air Systems。然後，我認為有一些後續投資，Metal Works 和 LB Holdco。我很想聽到更多有關這些的信息。謝謝。

Yeah. Well, why don�t I start, and Patrick can chime in as well. I mean, the new investments that we�re doing are incredibly attractive, and you can see it. We�ve picked up on a portfolio basis, 75 basis points of incremental spread over even just two quarters. And then, obviously, SOFR is higher.

是的。好吧，我為什麼不開始呢，派崔克也可以插話。我的意思是，我們正在進行的新投資非常有吸引力，你可以看到這一點。在投資組合的基礎上，我們甚至在短短兩個季度內就實現了 75 個基點的增量利差。然後，顯然，SOFR 更高。

The post regional banking crisis, there�s just no one lending last year. And so, we were able to do really low levered, widespread in deals. So we�re really excited about that vintage.

區域銀行危機後，去年根本沒有人放款。因此，我們能夠進行低槓桿、廣泛的交易。所以我們對這個年份感到非常興奮。

I would tell you that it�s gotten more competitive, so spreads have definitely come down year to date starting about February, particularly on generic sponsor finance. Just supply to ban, there�s just not that many good LBOs out there. So our new investments were very excited about.

我想告訴你，它的競爭變得更加激烈，因此從今年二月開始，利差肯定會下降，特別是在通用贊助商融資方面。只是供應禁令，那裡沒有那麼多好的槓桿收購。所以我們的新投資非常令人興奮。

On the exit side, yeah, you brought it up. I mean, we had a stressed auto supplier that we picked up in one of our acquisitions that we were taken out of this quarter. And I would tell you, we�re very excited to be taken out in many different ways. And so, that was good and away from that, I think a lot of the exit activity was relatively normal course. But yeah, the auto supplier in particular was something we were very excited to not have in our portfolio anymore.

在出口方面，是的，你提到了它。我的意思是，我們有一家壓力很大的汽車供應商，我們在本季的一項收購中收購了該供應商。我想告訴你，我們很高興能以多種不同的方式被淘汰。所以，這很好，除此之外，我認為很多退出活動都是相對正常的過程。但是，是的，我們非常高興我們的投資組合中不再有汽車供應商。

And then, on capital allocation, I would say, like this last year was the first year that I�ve run a BDC ever, where it made -- for the first time ever, the math made more sense for us to deploy capital than to buy back stock. But I think our philosophy is we should always be buying back stock, particularly when we�re trading below NAV, because we believe that NAV is NAV. And we think -- you heard Patrick�s comments, we think there�s 10% plus NAV upside in just things maturing apart.

然後，關於資本配置，我想說，就像去年是我經營 BDC 的第一年一樣，有史以來第一次，數學對我們部署資本來說比它更有意義回購股票。但我認為我們的理念是我們應該始終回購股票，特別是當我們的交易價格低於資產淨值時，因為我們相信資產淨值就是資產淨值。我們認為——你聽到了帕特里克的評論，我們認為只有成熟的事物才能帶來 10% 以上的資產淨值上升空間。

So we just think it�s good discipline to always be buying back stock, regardless of what the math says. But the math for the first time, and basically, in a long, long time, would support actually new deployment, as well as buy back stock. So as you said, we�ve increased our buyback program, but we�re also finding really good things to invest our money in.

因此，我們認為無論數學結果如何，始終回購股票都是良好的紀律。但數學第一次，基本上，在很長一段時間內，將支援實際上的新部署，以及回購股票。正如您所說，我們增加了回購計劃，但我們也發現了真正值得投資的好東西。

Yeah. And Deepak, taking some of your portfolio questions. So I�ll hit a couple of them and apologize if I don�t get all of them, since you listed a couple issues, you can�t necessarily remember them all.

是的。迪帕克（Deepak）回答了你的一些投資組合問題。所以，如果我沒有得到全部問題，我會打幾個並道歉，因為你列出了幾個問題，你不一定能記住它們。

But starting at the end, LB Holdco, that was actually a restructuring of a position we had in Lucky Bucks. The company emerged from bankruptcy and we received debt and equity as part of a take back. So that�s just a restructuring in the quarter.

但從最後開始，LB Holdco，這實際上是對我們在 Lucky Bucks 的部位的重組。該公司擺脫了破產，我們收到了債務和股權作為收回的一部分。所以這只是本季的重組。

Northeast Metal Works, I think it dates back to Q2. It was a legacy Harvest Capital HCAP portfolio. We actually did a refinancing with the company where we brought in another lender, reduced our exposure and put in place a new facility. So that�s really just, I�d call it a refinancing, but shows up as different securities because we brought in another person to reduced exposure there.

東北金屬廠，我認為可以追溯到第二季。這是 Harvest Capital 遺留下來的 HCAP 投資組合。實際上，我們與該公司進行了再融資，引入了另一家貸方，減少了我們的風險敞口並建立了新的設施。所以這真的很公平，我稱之為再融資，但顯示為不同的證券，因為我們引入了另一個人來減少那裡的風險敞口。

On to your three new borrowers. Again, just to give you a bit of a flavor. Tactical Air, it�s a defense business. They have two main segments. One is they actually work with the Air Force and the Navy to retrofit older airplanes with their like weapon systems and cockpit technology and things like that. So that�s one part of the business. And then -- and they�re one of the only folks that do that.

談談你的三個新借款人。再說一次，只是為了給你一點味道。戰術航空，這是一項國防業務。他們有兩個主要部分。一是他們實際上與空軍和海軍合作，用類似的武器系統和駕駛艙技術等改造舊飛機。這就是業務的一部分。然後——他們是唯一這樣做的人之一。

And then, the other part of the business is they actually -- I forget the name of the �- the technical name of the segment, but they do what�s called like the Red Team. So they actually -- their team, they have pilots, and engines, and airplanes, and they actually train and help with training exercises for the Navy and the Air Force, essentially acting as the quote-unquote enemy combatants for training simulations. So pretty good defensive business, secured by pretty stable contracts. We really like that business.

然後，業務的另一部分實際上是他們 - 我忘記了“該部分的技術名稱”的名稱，但他們做了所謂的“紅隊”。所以他們實際上——他們的團隊，他們有飛行員、發動機和飛機，他們實際上訓練並幫助海軍和空軍進行訓練演習，本質上充當訓練模擬的敵方戰鬥人員。防禦性業務相當不錯，有相當穩定的合約保障。我們真的很喜歡這項業務。

Morae, and we did a first-lien term loan there. Morae Global Corporation actually provides, it�s a tech-enabled business that provides like legal solutions and consulting services. So a lot of what they do is around software implementation and ongoing maintenance for Fortune 500 companies within their compliance and legal departments to help manage various different work streams between general legal paperwork, as well as litigation and lawsuits and discovery. And again, it�s a fairly large gamut of things that they support Fortune 500 companies with.

莫拉，我們在那裡辦理了第一留置權定期貸款。Morae Global Corporation 實際上是一家提供法律解決方案和諮詢服務的技術型企業。因此，他們所做的工作很多都是圍繞著財富500 強公司的合規和法律部門的軟體實施和持續維護，以幫助管理一般法律文書工作以及訴訟和訴訟和證據開示之間的各種不同工作流程。再說一次，他們為財富 500 強公司提供了相當廣泛的支持。

That particular transaction, we actually -- it was -- the company was making an acquisition in a different jurisdiction, and we structured a first-lien loan with some warrants attached to it as well that we think is a pretty attractive overall investment and security.

那個特定的交易，我們實際上- 它是- 該公司正在不同的司法管轄區進行收購，我們構建了第一留置權貸款，並附加了一些認股權證，我們認為這是一項相當有吸引力的整體投資和安全。

And then CineMedia, which would be the last one. That was a refinancing of an existing portfolio company of a large European private equity firm. It�s a US business, but it�s -- a European private equity firm owns it. They do a couple of different things around, I�ll call it, like video services and technology.

然後是 CineMedia，這將是最後一個。這是一家大型歐洲私募股權公司現有投資組合公司的再融資。這是一家美國企業，但它是一家歐洲私募股權公司擁有的。他們做了一些不同的事情，我稱之為，例如視訊服務和技術。

So part of what they do is they actually -- they have like -- it is their cards and software that go into set-top boxes for traditional broadcast technology. So you can think mostly in Europe where you have sort of Sky TV, SIM cards, and things like that. That�s a piece of their business. They also do -- they work with content providers to help them deliver their video and streams between, call it, like a Netflix and the internet provider who�s piping into your homes.

因此，他們所做的一部分實際上是他們的卡片和軟體進入了傳統廣播技術的機上盒。所以你可以認為主要是在歐洲，那裡有天空電視台、SIM 卡等等。這是他們的一部分業務。他們也這樣做——他們與內容提供商合作，幫助他們在 Netflix 和透過管道進入你家的網路供應商之間傳輸影片和串流媒體。

And then, lastly, they actually -- they also work with video streaming in a different area, but they help with ad targeting, content performance within applications and apps, and broadband management -- broadband device management, and things like that. So it�s a fairly diverse set of revenue streams. Again, we�re a senior secured first-line loan, again, that�s priced at 7.75% at 96.5%.

最後，它們實際上還可以在不同的領域處理視訊串流，但它們有助於廣告定位、應用程式和應用程式內的內容性能以及寬頻管理——寬頻設備管理，等等。因此，這是一組相當多樣化的收入來源。同樣，我們是優先擔保一線貸款，利率為 7.75%，利率為 96.5%。

So again, that�s just a flavor of that. And if you just think about that at a higher level, we�ve got a defense business and two business services that we�re adding, which we feel like are pretty attractive industries. And then, Ted already alluded to it, but I did hit an automotive supplier, which we would have no intention of getting back into that industry.

再說一遍，這只是其中的一種。如果您從更高的層面考慮這一點，我們將增加國防業務和兩項商業服務，我們認為這些產業是非常有吸引力的產業。然後，特德已經提到過，但我確實找到了一家汽車供應商，我們無意重返該行業。

That all sounds great. Yeah. I mean, I certainly recognize that you already have most of your investments in business services, high-tech industries, and healthcare and pharma, but seems like a continued progression, even more along that direction, which seems great.

這一切聽起來都很棒。是的。我的意思是，我當然認識到你們已經在商業服務、高科技產業、醫療保健和製藥領域進行了大部分投資，但似乎仍在持續進步，甚至沿著這個方向前進，這看起來很棒。

And then, just a quick follow up. I don�t have the details on the Lucky Bucks thing, but I had read something about how the company was -- they�re suing or in litigation with the former promoter of that business for a pretty big number. Is that something that could be interesting upside or is it kind of immaterial given the size of your equity stake there?

然後，快速跟進。我不知道有關 Lucky Bucks 事件的詳細信息，但我讀過一些有關該公司情況的信息 - 他們正在與該業務的前發起人提起訴訟或訴訟，要求支付相當大的金額。考慮到你在那裡的股權規模，這是否是一個有趣的好處，或者是否有點無關緊要？

I would not say it�s immaterial, but what I would say, in general is, look, it�s public, so I can talk to some extent on it. But it�s -- I would say that the facts look pretty persuasive, but you never know when you get involved in litigation. So I would say, it feels pretty interesting to us, obviously, to be pursuing, but I would -- again, I would say, that that�s not really baked into how we think about the equity position there.

我不會說它無關緊要，但我想說的是，總的來說，看，它是公開的，所以我可以在某種程度上談論它。但事實是——我想說，事實看起來很有說服力，但你永遠不知道什麼時候你會捲入訴訟。所以我想說，顯然，我們覺得追求這個目標非常有趣，但我會——再說一次，我會說，這並沒有真正融入我們對那裡股權狀況的思考中。

So again, you can take that for what it�s worth, but I -- if you read through the lawsuit, I�d say the facts are candidly pretty overwhelming. But having said that, legal, I wouldn�t want to handicap a legal process.

再說一次，你可以相信它的價值，但我——如果你讀完訴訟，我會說事實是坦率地壓倒性的。但話雖如此，我不想妨礙法律程序。

Sounds great. Keep up the great work. Thank you.

聽起來很棒。繼續努力。謝謝。

Thanks.

謝謝。

Thanks.

謝謝。

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

目前沒有其他問題。特德‧戈德索普先生，我將電話轉回給您。

Thank you very much. Thank you all for attending our call. And as per always, please reach out to us with any questions, which we�re happy to discuss. We look forward to speaking to you again on our next call and thank you so much.

非常感謝。感謝大家參加我們的電話會議。一如既往，如有任何問題，請聯絡我們，我們很樂意討論。我們期待在下次通話中再次與您交談，非常感謝您。

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。您現在可以斷開連線。