BCP Investment Corp (BCIC) 2025 Q3 法說會逐字稿

Welcome to BCP Investment Corporation third quarter ended September 30, 2025 earnings conference call. An earnings press release was distributed yesterday November 6, after market closed.

歡迎參加 BCP 投資公司截至 2025 年 9 月 30 日的第三季財報電話會議。財報新聞稿已於昨（11 月 6 日）股市收盤後發布。

A copy of release along the earnings presentation is available on the company's website at www.bcpinvestmentcorporation.com in the Investor Relations section and should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC.

收益報告的副本可在公司網站 www.bcpinvestmentcorporation.com 的投資者關係部分查閱，並應與公司昨天向美國證券交易委員會提交的 10-Q 表格一起查看。

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 that guarantees of future performance or results and involve a number of risks and uncertainties.

再次提醒，本次電話會議將進行錄音，以便日後重播。請注意，今天的電話會議可能包含前瞻性陳述，這些陳述並非對未來績效或結果的保證，且涉及許多風險和不確定性。

Actual results may differ materially from those in forward-looking statements as a result of a number of factors, including those described in the company's filings with the SEC. BCP Investment Corporation assumes no obligation to update any such forward-looking statements unless required by law.

由於多種因素的影響，實際結果可能與前瞻性陳述中的結果有重大差異，這些因素包括公司向美國證券交易委員會提交的文件中所述的因素。除非法律要求，否則BCP投資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 BCP Investment Corporation; Brandon Satoren, Chief Financial Officer; and Patrick Schafer, Chief Investment Officer. With that, I would now like to turn the call over to Ted Goldfarb, Chief Executive Officer of BCP Investment Corp. Please go ahead, Ted.

今天參加電話會議的有BCP投資公司執行長、總裁兼董事泰德‧戈德索普(Ted Goldthorpe)、財務長布蘭登‧薩托倫(Brandon Satoren)和首席投資長派崔克‧沙弗(Patrick Schafer)。接下來，我將把電話會議交給BCP投資公司執行長泰德‧戈德法布(Ted Goldfarb)。請泰德發言。

Good morning. Welcome to our third quarter 2025 earnings call. I'm joined today by our Chief Financial Officer, Brandon Satoren, and our Chief Investment Officer, Patrick Schafer.

早安.歡迎參加我們2025年第三季財報電話會議。今天與我一同出席的有財務長布蘭登·薩托倫和首席投資官帕特里克·沙弗。

Following my opening remarks on the company's performance and activities during the third quarter, Patrick will provide commentary on our investment portfolio and our markets, and Brandon will discuss our operating results and financial condition in greater detail.

在我作完關於公司第三季業績和活動的開場白後，派崔克將對我們的投資組合和市場進行評論，布蘭登將更詳細地討論我們的經營業績和財務狀況。

We are pleased to report strong results for the third quarter our first earnings as a combined company on the completion of our merger with Logan Ridge on July 15, 2025. This milestone marks the beginning of a new chapter for BCIC, as we continue to leverage our expanded scale, broader portfolio diversification and enhanced operating efficiency to drive long-term value for shareholders.

我們很高興地宣布第三季業績強勁，這是我們自2025年7月15日與Logan Ridge完成合併以來，作為合併後公司首次實現盈利。這一里程碑標誌著BCIC新篇章的開始，我們將繼續利用擴大的規模、更廣泛的投資組合多元化和提高的營運效率，為股東創造長期價值。

I'm pleased to report meaningful progress on the value creation initiatives we announced in June 2025. Notably, consistent with our previously stated intentions, the company plans to commence a modified Dutch auction tender approximately $9 million combined with the daily share repurchases executed by the company under the buyback program as well as open market purchases by management, the adviser and its affiliates.

我很高興地報告，我們在2025年6月宣布的價值創造計畫取得了實質進展。值得注意的是，與我們先前宣布的意圖一致，公司計劃啟動一項約900萬美元的改良版荷蘭式拍賣要約，同時結合公司根據回購計劃執行的每日股票回購以及管理層、顧問及其關聯公司在公開市場上的購買。

We anticipate total repurchases when combined with managements, advisers and its affiliates ownership of BCIC's outstanding stock can approximate 10% by year-end. These actions underscore our continued focus on driving shareholder value and narrowing the discount to NAV.

我們預計，到年底，加上管理階層、顧問及其關聯公司持有的BCIC流通股比例，總回購額將接近10%。這些措施凸顯了我們持續致力於提升股東價值並縮小與淨值之間的折價。

During the quarter, we generated net investment income of $8.8 million or $0.71 per share compared with $4.6 million or $0.50 per share in the prior quarter. We expect to realize further benefits of our expanded scale and broader investment platform. For the fourth quarter of 2025, the Board of Directors approved a base distribution of $0.47 per share, which been annualized based on November 6, 2025 closing price of $12.13 per share represents a yield of 15.5%.

本季度，我們實現淨投資收益880萬美元，合每股0.71美元，上一季為460萬美元，合每股0.50美元。我們預計，隨著規模擴大和投資平台拓展，我們將獲得更多收益。董事會核准2025年第四季每股派息0.47美元，以2025年11月6日收盤價每股12.13美元計算，年化報酬率為15.5%。

Before handing over the call, I'd like to take a moment to address recent commentary in the broader private credit markets. While recent high-profile collapses of certain borrowers understandably drawn market attention, we firmly believe the full scale of concern for the overall private credit market is unwarranted.

在結束通話前，我想花一點時間談談近期關於更廣泛的私人信貸市場的評論。雖然近期一些借款人的高調破產事件理所當然地引起了市場的關注，但我們堅信，目前對整個私人信貸市場的擔憂程度是沒有必要的。

Echoing sentiment from other leaders in our industry, in the case of First Brands, for example, only 2% of its nearly $12 billion balance sheet was linked to private credit highlighting that events like this aren't signs of systemic weakness, if the sector has been subject to disproportionately heightened scrutiny despite its limited involvement in these high-profile bankruptcies.

與業內其他領導者的觀點相呼應，以 First Brands 為例，其近 120 億美元的資產負債表中只有 2% 與私人信貸有關，這表明​​，即使該行業在這些備受矚目的破產案中的參與程度有限，但如果該行業受到不成比例的嚴格審查，那麼此類事件並不是系統性弱點的跡象。

Looking ahead, our focus remains on disciplined capital allocation, maintaining a high-quality portfolio and delivering attractive risk-adjusted returns to our shareholders. With a larger, more diversified platform, and a stronger balance sheet, we believe we are well positioned to drive continued earnings growth and long-term value creation.

展望未來，我們將繼續專注於穩健的資本配置，維持高品質的投資組合，並為股東帶來具有吸引力的風險調整後收益。憑藉規模更大、多元化程度更高的平台和更穩健的資產負債表，我們相信我們已做好充分準備，推動盈利持續增長並創造長期價值。

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，我將把電話交給我們的首席投資長帕特里克·沙弗，讓他回顧一下我們的投資活動。

Thanks, Ted. Overall M&A activity in our core markets continued to increase during the quarter as a combination of easing benchmark rates and more settled tariff framework gave sponsors more confidence in the macro environment. To illustrate this, over 80% of our new fundings during the quarter -- we're a new borrowers, a significantly higher percentage than what has historically been over the last several quarters.

謝謝，泰德。本季度，我們核心市場的整體併購活動持續成長，這得益於基準利率的下調和關稅框架的趨於穩定，從而增強了投資者對宏觀環境的信心。舉例來說，本季我們新增融資中超過 80% 為新借款方，這一比例遠高於過去幾季的歷史水準。

With the renewed activity has also come renewed competition on deals and overall tightening of spreads. As we've noted in the past, our focus on companies with less than $50 million of EBITDA and our sourcing of non-sponsor-backed companies provides some inflation to these trends. We continue to be selective from a credit quality perspective and are focused on maximizing risk-adjusted returns for our shareholders.

隨著市場活動的復甦，交易競爭也隨之加劇，整體利差縮小。正如我們之前所指出的，我們專注於EBITDA低於5000萬美元的公司，並且我們只選擇非發起人支持的公司，這在一定程度上加劇了上述趨勢。我們將繼續從信用品質的角度進行篩選，並致力於為股東實現風險調整後收益最大化。

Turning to slide 10. Originations for the third quarter were $14.2 million and repayments of sales were $43.8 million, resulting in net repayments and sales of approximately $29.6 million. Overall yield on par of the new debt investments during the quarter was 12.5%. This compares to a 13.8% weighted average annualized yield, excluding income from nonaccruals and collateralized loan obligations, as of September 30, 2025.

請參閱第10張投影片。第三季新增貸款1,420萬美元，銷售還款4,380萬美元，淨還款額及銷售額約2,960萬美元。本季新增債務投資的以面額計算的整體收益率為12.5%。相較之下，截至2025年9月30日，不計非應計收入及擔保貸款憑證的加權平均年化報酬率為13.8%。

Excluding the impact of purchase discount accounting, the weighted average annualized yield, excluding income from non-accruals and collateralized loan applications, was approximately 10.3% as of September 30, 2025.

不計入購買折扣會計處理的影響，截至 2025 年 9 月 30 日，加權平均年化收益率（不包括非應計收入和抵押貸款申請）約為 10.3%。

Our investment portfolio at year-end remained highly diversified. We ended the third quarter with a debt investment portfolio, when excluding our investments in CLO funds, equities and joint ventures, spread across 79 different portfolio companies and 28 different industries, with an average par balance of $3.2 million per entity.

截至年末，我們的投資組合仍保持高度多元化。第三季末，若不計入對CLO基金、股票和合資企業的投資，我們的債務投資組合涵蓋79家不同的投資組合公司和28個不同的行業，平均每家公司的面額餘額為320萬美元。

Turning to slide 11. At the end of the third quarter of 2025, we had 10 investments on nonaccrual status, representing 3.8% and 6.3% of the portfolio at fair value and cost, respectively. This compares to six investments on nonaccrual status as of June 30, 2025, representing 2.1% and 4.8% of the portfolio at fair value and cost, respectively.

請看第11頁投影片。截至2025年第三季末，我們有10項投資處於非應計狀態，以公允價值和成本計算分別佔投資組合的3.8%和6.3%。相較之下，截至2025年6月30日，非應計狀態的投資為6項，以公允價值和成本計算分別佔投資組合的2.1%和4.8%。

I would note that the quarter-over-quarter increase does include investments acquired through the Logan Ridge transaction that were on nonaccrual at the time of that transaction. It's further worth noting that two of the investments currently on nonaccrual status, we continue to recognize interest income on a cash basis, but is only when payments are actually received.

需要指出的是，季度環比成長包含了透過 Logan Ridge 交易收購的投資，這些投資在交易時屬於非應計項目。此外，值得注意的是，目前有兩項投資處於非應計狀態，我們仍以現金制確認利息收入，但僅在實際收到款項時才進行確認。

On slide 12, excluding our nonaccrual investments, we have an aggregate debt investment portfolio of $429.5 million at fair value, which represents a blended price of 93.1% of par value and is 84.4% comprised of first-lien loans at par value. Assuming the par recovery, our September 30, 2025 fair values reflect a potential of $31.2 million of incremental net value or a 13.7% increase to NAV. But applying an illustrative 10% default rate and 7% recovery rate, our debt portfolio would generate an incremental $1.36 per share of NAV or a 7.8% increase as it rotates.

如第12頁投影片所示，剔除非應計投資後，我們的債務投資組合總價值為4.295億美元，以公允價值計算，其綜合價格為面額的93.1%，其中84.4%為以面額計算的優先擔保貸款。假設以面額回收，截至2025年9月30日，我們的公允價值反映了潛在的3,120萬美元淨值增量，或淨資產價值成長13.7%。但若採用10%的違約率及7%的回收率，則我們的債務投資組合在輪動過程中，每股淨值將增加1.36美元，或成長7.8%。

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

現在我將把電話交給布蘭登，讓他進一步討論我們本季的財務表現。

Thanks, Patrick. For the quarter ended September 30, 2025, the company generated $18.9 million in investment income an increase of $6.3 million compared to $12.6 million reported for the quarter ended June 30, 2025. Core income for the same period periods was $15.3 million and $12.6 million, respectively.

謝謝帕特里克。截至2025年9月30日的季度，公司投資收益為1,890萬美元，較截至2025年6月30日的季度報告的1,260萬美元增加了630萬美元。同期核心收益分別為1530萬美元和1260萬美元。

The increase in investment income from the prior quarter was primarily driven by the Logan Ridge acquisition, which contributed $7.4 million of GAAP income and $3.8 million of core. For the quarter ended September 30, 2025 gross expenses were $10.3 million and net expenses were $10.1 million, which includes the $0.2 million performance-based incentive fee waiver. This represents a $2 million increase compared to $8.1 million for the prior quarter. The increase in expenses compared to the prior quarter reflects the larger combined company.

投資收益較上一季成長主要得益於對 Logan Ridge 的收購，該收購貢獻了 740 萬美元的 GAAP 收益和 380 萬美元的核心收益。截至 2025 年 9 月 30 日的季度，總支出為 1,030 萬美元，淨支出為 1,010 萬美元，其中包括 20 萬美元的績效激勵費用豁免。與上一季的 810 萬美元相比，本季支出增加了 200 萬美元。支出較上一季增加，反映了合併後公司規模的擴大。

Accordingly, our net investment income for the quarter ended September -- for the third quarter of 2025 was $8.8 million or $0.71 per share, which constitutes an increase of $4.3 million or $0.21 per share from $4.6 million or $0.50 per share for the second quarter of 2025. Core net investment income for the third quarter of 2025 was $5.3 million or $0.42 per share compared to $4.6 million or $0.50 per share for the second quarter of 2025. As of September 30, 2025, our net asset value totaled $231.3 million, an increase of $66.6 million from the prior quarter's NAV of $164.7 million.

因此，截至9月30日止季（即2025年第三季），我們的淨投資收益為880萬美元，即每股0.71美元，較2025年第二季的460萬美元（每股0.50美元）增加了430萬美元（每股0.21美元）。 2025年第三季的核心淨投資收益為530萬美元，即每股0.42美元，而2025年第二季為460萬美元，即每股0.50美元。截至2025年9月30日，我們的淨資產總額為2.313億美元，較上一季的1.647億美元增加了6,660萬美元。

The increase in total NAV on a gross dollar basis was primarily driven by net realized and unrealized gains of $14.8 million, the $49.6 million impact on a GAAP basis of the Logan Ridge acquisition, partially offset by the third quarter distribution exceeding core net investment income for the prior -- compared to the prior quarter's distribution of $1.1 million.

以毛美元計算的總淨資產值增長主要由已實現和未實現的淨收益 1480 萬美元以及 Logan Ridge 收購按 GAAP 計算的 4960 萬美元影響所推動，部分被第三季度分配額超過上一季核心淨投資收益所抵消——而上一季的分配額為 110 萬美元。

On a per share basis, NAV was $17.55 per share as of September 30, 2025, representing a $0.34 decrease compared to $17.89 as of June 30, 2025. The decline in NAV per share was primarily due to core net investment income, which excludes purchase discount accretion, not fully covering the dividend for the quarter and approximately $4 million of mark-to-market losses across the portfolio.

截至 2025 年 9 月 30 日，每股淨值為 17.55 美元，較 2025 年 6 月 30 日的 17.89 美元下降了 0.34 美元。每股淨值的下降主要是由於核心淨投資收益（不包括購買折扣攤銷）未能完全覆蓋當季股息以及投資組合中約 400 萬美元的按市值計價損失。

As of September 30, 2025, our gross and net leverage ratios were 1.4 times and 1.3 times, respectively, compared to 1.6 times and 1.4 times respectively, in the prior quarter. Specifically, as of September 30, 2025, we had a total of $324.6 million of borrowings outstanding with a current weighted average contractual interest rate of 6.1%. This compares to $255.4 million of borrowings outstanding as of the prior quarter with a weighted average contractual interest rate 6%.

截至2025年9月30日，我們的總槓桿率和淨槓桿率分別為1.4倍和1.3倍，而上一季分別為1.6倍和1.4倍。具體而言，截至2025年9月30日，我們的未償借款總額為3.246億美元，目前加權平均合約利率為6.1%。相較之下，上一季未償借款總額為2.554億美元，加權平均合約利率為6%。

The company finished the quarter with $110 million of available borrowing capacity under the senior secured revolving credit facilities subject to borrowing base restrictions. Consistent with our long-term capital approach, we proactively extended and laddered our unsecured debt maturities, issuing a $75 million, a 7.75% note that is due in October 2030 and a $35 million, 7.5% note due October 2028, while at the same time, initiating the redemption of our 4.875% notes due in April 2026 expected to be completed on or about November 13. These actions diversify funding reduce near-term refinancing risk and enhance financial flexibility.

截至本季末，本公司在受借款基數限制的優先擔保循環信貸額度下，擁有1.1億美元的可用借款額度。秉承長期資本策略，我們積極延長並優化了無擔保債務的到期日，發行了7500萬美元、票面利率7.75%、將於2030年10月到期的票據，以及3500萬美元、票面利率7.5%、將於2028年10月到期的票據。同時，我們啟動了將於2026年4月到期、票面利率4.875%票據的贖回程序，預計將於11月13日左右完成。這些措施有助於分散融資來源，降低近期再融資風險，並增強財務彈性。

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

接下來，我將把電話轉回給泰德。

Thanks, Brandon. Other questions, I'd like to reemphasize how excited we are about the opportunities. The newly combined company are already creating. As we move forward, our focus remains on disciplined capital allocation, maintaining a high-quality portfolio and delivering attractive risk-adjusted returns for our shareholders.

謝謝布蘭登。關於其他問題，我想再次強調我們對合併後的新公司所面臨的機會感到多麼興奮。合併後的公司已經在創造這些機會。展望未來，我們將繼續專注於穩健的資本配置，維持高品質的投資組合，並為股東帶來具有吸引力的風險調整後收益。

With a more diversified platform and a strengthened balance sheet, we believe we are well positioned to drive the continued earnings growth and value creation and the earnings in the quarters ahead.

憑藉更多元化的平台和更強勁的資產負債表，我們相信我們有能力推動未來幾季的持續獲利成長和價值創造。

Thank you once again to all of our shareholders for your ongoing support. This concludes our prepared remarks, and I'll turn over the call for any questions.

再次感謝各位股東一直以來的支持。我的發言到此結束，接下來我將把提問環節交給各位。

(Operator Instructions) Erik Zwick, Lucid Capital Markets.

（操作說明）Erik Zwick，Lucid Capital Markets。

To start first -- I wanted to start first in terms of -- with your kind of announcement of potentially repurchasing 10% of the share. Just want to make sure, is that relative to the 9.30 million outstanding balance of about 13.96 million?

首先－我想先從您宣布可能回購10%股份這件事談起。我想確認一下，這是指相對於目前約1396萬股未償付餘額中的930萬股而言嗎？

It's relative to the transaction closing shares, which was about 13.2 million off the top of my head. Let me...

這與交易完成時的股份數量有關，我印像中大約是1320萬股。讓我…

Yes, when we announced -- when we closed the transaction, we committed to shareholders that we buyback a bunch of stock between like as soon as practically possible. And obviously, we were in a blackout period until today. So the intention is to buyback 10% of the closing amount of shares.

是的，我們在宣布完成交易時，就向股東承諾會盡快回購一部分股票。當然，在此之前我們一直處於禁售期。所以，我們計劃回購成交量10%的股票。

But Erik, the short answer is there were not a lot of days in Q3 that we could do anything because of some of the rules around six-day pulling off period, things like that. So it's off of a slightly higher number than the September 30, but that's going to be a decent approximation.

但艾瑞克，簡單來說，由於一些關於六天停工期之類的規定，第三季我們能做事的日子並不多。所以這個數字比9月30日略高一些，但這應該是比較準確的估計。

That's right. If you recall, we had -- I was going to say, Erik, we had to wait 60 days until after closing before we could turn the buyback back on, but we did provide some color on post quarter end. Daily repurchases in our subsequent events, which was about $1.2 million.

沒錯。如果你還記得的話，我們——我本來想說，艾瑞克，我們必須等到交易完成後的60天才能重新啟動股票回購，但我們在季度末之後也提供了一些細節。在隨後的事件中，我們進行了每日回購，金額約為120萬美元。

Actually, yes, I did see that, too. So great. Yes. That's helpful. And then secondly, looking at Slide 11 and just noticing the quarter-over-quarter improvement in your internal ratings performing versus underperforming.

是的，我也看到了。太好了。是的，這很有幫助。其次，看看第11張投影片，你會注意到你們內部評級中表現優異與表現不佳的季度環比都有所改善。

Was the majority of that change from June 30 to September 30, the result of the combination as well? Or is there any additional kind of upgrades going on within the combined portfolio?

從6月30日到9月30日，大部分的變化也是合併結果嗎？還是說合併後的投資組合還有其他類型的升級？

Yes. I mean the short answer is like both. I mean, there were certain upgrades going into the portfolio, but the reality is we added a significant chunk through the Logan and kind of using those internal ratings kind of gives you that. So again, it's a little bit of both, but my hunch is the -- without giving the specifics like the -- it's probably the assets from Logan coming on to the balance sheet in those ratings as opposed to a broad swath of increases.

是的。簡單來說，兩者兼具。我的意思是，投資組合中確實有一些升級，但實際上我們透過 Logan 收購增加了相當一部分資產，而這些內部評級也反映了這一點。所以，兩者兼而有之，但我的直覺是——在不透露具體細節的情況下——這些評級的提升很可能是因為 Logan 收購的資產計入了資產負債表，而不是因為一系列資產的評級普遍提高。

Yes, probably like the biggest surprise for us over the last six months is we really haven't had a lot of negative portfolio surprises. And we've had a bunch of positive portfolio surprises. And again, our LPs and our shareholders are a little rattled by some of the recent headlines out there around First Brands, Tricolor, this telecom name last week. The reality is a lot of those are really idiosyncratic. I mean a lot of them are related to fraud, number one.

是的，在過去六個月裡，我們最大的驚喜可能就是投資組合的負面情況不多，反而有很多正面的意外。不過，我們的有限合夥人和股東們最近確實對一些關於First Brands、Tricolor以及上週那家電信公司的新聞感到有些不安。但實際上，許多這類事件都屬於個別案例。首先，很多都與詐欺有關。

But number two is a lot of the underperformance has been in their asset-based parts of their business as opposed to their cash flow-based parts of their business. So this BDC sell-off, we think, is probably overdone. It's beginning to correct a little bit, but we're not seeing broad-based weakness in our portfolio.

但第二點是，這些公司業績不佳主要體現在其資產型業務而非現金流型業務。因此，我們認為此次對商業發展公司（BDC）的拋售可能過度了。目前情況已開始略有調整，但我們並未在我們的投資組合中看到普遍疲軟的跡象。

I appreciate the commentary there. And I would echo that sentiment just from the number of portfolios I've reviewed so far this earnings season. And just with respect to the 10 credits that are on nonaccrual at this point. Could you just kind of maybe walk through your strategy and methodology for resolving those, if there's any potential for restructurings or sales or resolutions in the near term for any of those?

我感謝您的評論。就我目前在本財報季審查的投資組合數量而言，我也深有同感。關於目前處於非應計狀態的10項信貸，您能否簡要介紹一下您的策略和方法，看看近期內是否有任何重組、出售或其他解決方案的可能性？

Yes, Erik, I mean, the short answer is they're all very like company specific. So there's one name that we're in the process of restructuring and that hopefully is going to get resolved in Q4, it maybe it flips into Q1, but that's a relatively near-term thing that we'll get resolved out. There's one of them that is for sale in the market and hopefully, they have a couple of provisions and hopefully some are all that get resolved in Q4 and then -- but other than that, the rest of them is, again, continuing to optimize what's the best return, whether that is putting a little bit more capital to growing the businesses, whether it's looking for restructuring the balance sheet or just an outright sale, each of the opportunities are like one-off and have their own crossing path. But there are, again, probably two or three companies that we would hope to have a near-term resolution on.

是的，埃里克，我的意思是，簡單來說，這些情況都與具體公司密切相關。我們正在對一家公司進行重組，希望能在第四季度解決，也可能要等到第一季度，但這應該是一個比較近期就能解決的問題。還有一家公司正在市場上出售，希望他們有一些附加條款，希望第四季能解決其中一部分問題。除此之外，其他公司的情況，我們仍在繼續優化，以尋求最佳回報，無論是增加資本投入以發展業務，還是尋求重組資產負債表，亦或是直接出售，每個機會都是獨一無二的，各有其發展軌跡。但總的來說，我們希望能夠盡快解決兩到三家公司的問題。

Erik, it's worth highlighting. Last quarter, you may have noticed there were two assets we put on cash basis income recognition, that's generally a good indicator when you start recognizing some income on the assets. And again, when those assets are current on the debt and paying their coupon interest.

埃里克，這一點值得強調。上個季度，你可能已經注意到，我們把兩項資產的收入確認方式改為了現金制，這通常是一個很好的指標，表明我們開始確認這些資產的收入了。而且，前提是這些資產能夠按時償還債務並支付票息。

Steven Martin, Slater Capital.

Steven Martin，Slater Capital。

Congratulations on getting the deal done and cleaning -- starting the cleanup process. With respect to the buyback, which you know we applaud, how is that going to affect your ability to continue to do deals going forward? And can you also talk about what the Q4 activity level looks like?

恭喜您完成交易並啟動清理工作。關於回購計劃，我們對此表示讚賞，但這會如何影響您未來繼續進行交易的能力？您能否也談談第四季的業務活動狀況？

Yes, I'll answer the first comment. I mean, if you look this quarter, we obviously came into the quarter with a lot of cash because we were just kind of gearing up for this, again, when you take huge step back, if you look at where spreads are in the middle market, versus where our stock trades, it's still accretive for us to buyback stock.

是的，我會回答第一個評論。我的意思是，如果你看看這個季度，很明顯我們季度初手頭上有很多現金，因為我們一直在為此做準備。再說一遍，當你從更宏觀的角度來看，如果你看看中間市場的價差，再看看我們股票的交易價格，回購股票對我們來說仍然是有利的。

So we aren't seeing -- there's a massive pipeline that I should really defer to Patrick on this, but we have a massive pipeline of what I would call generic sponsored finance. The ability to get premium pricing, I would say, or wider spreads. Our pipeline in that area is probably not as robust -- so we've a limited amount of supply like L475, L500 kind of thing. We're not seeing a lot of like much wider spread and stuff that we like right now. I don't know, Patrick, if you approve that.

所以，我們目前並沒有看到——這裡有一個龐大的項目儲備，關於這一點我應該請帕特里克來解釋，但我們確實有大量我稱之為“通用贊助融資”的項目儲備。也就是說，我們能夠獲得溢價，或者說更大的利差。我們在這個領域的儲備可能不夠充足——所以我們目前只有像L475、L500這類項目的供應有限。我們目前還沒有看到很多我們喜歡的、利差更大的項目。派崔克，我不知道你是否同意這一點。

No, those are right. I've kind of said this several times on our calls. But from our perspective, it's around getting the right pipeline in the portfolio as opposed to, as I said, that we could load up on S475, S500 (sic - see Press Release, L475, L500) unitranches. I'm not sure that, that ultimately spits out the right ROE for our shareholders.

不，你說得對。我在之前的電話會議上已經多次提到這一點。但從我們的角度來看，關鍵在於建立合適的投資組合，而不是像我剛才說的，大量買入S475、S500（原文如此——參見新聞稿，L475、L500）之類的單一貸款項目。我不確定那樣最終能否為我們的股東帶來理想的淨資產收益率。

So we're being careful and judicious with how we actually deploy our capital, but we do have a very, very large pipeline of opportunities to the extent that we feel like the credit and the pricing align with each other.

因此，我們在實際部署資本方面非常謹慎和明智，但我們確實有大量的機會儲備，只要我們認為信貸和定價能夠相互匹配。

(multiple speakers) your investing in your own stock at the -- where your own stock trades?

（多人發言）你是在你自己的股票交易的交易所投資你自己的股票嗎？

Yes, that's right. So again, we run the math every single quarter for our board and we show the math of doing a new investment versus the buyback and buybacks generally. They're kind of fairly similar, to be honest, depending on what you see on pricing, but buybacks over guaranteed return. And we feel like it's pretty shareholder friendly and we're supportive of making the right capital allocation decisions for our shareholders.

是的，沒錯。所以我們每季都會向董事會報告計算結果，以比較新投資和股票回購的利弊。說實話，兩者其實相當接近，具體取決於定價，但股票回購通常比保證收益更有優勢。我們認為這對股東非常有利，我們也支持為股東做出正確的資本配置決策。

Yes. And I think it's worth noting, Steve, that, just to sort of reinforcing the point that we think it's important to do for shareholders at these prices, especially because of the day one have impact.

是的。史蒂夫，我認為值得一提的是，這恰恰強調了我們認為在當前價格下對股東來說非常重要這一點，尤其因為這會對首日股價產生影響。

However, it is hard to buyback large swaths of our equity and maintain prudent leverage ratios. So you'll note the fund is going to buyback $7.5 million. Management is going to come in and fill out the rest of the order flows for the buyback. So recognizing exactly what you're heading at.

然而，要回購大量股權並維持合理的槓桿率並非易事。因此，您會注意到該基金將回購750萬美元的股票。管理層將介入並完成剩餘的回購訂單。所以，您需要清楚地了解接下來的計劃。

Yes. No, look, we applaud both and we have been a proponent of management increasing its stake as well. Just out of a curiosity, has there been any further realizations. I assume most of what's in the legacy LRFC portfolio is still a lot of equity?

是的。不，你看，我們對這兩種做法都表示讚賞，而且我們也一直支持管理層增持股份。只是好奇，有沒有其他新的進展？我猜想，LRFC原有的投資組合中大部分還是股權吧？

No, I don't think that's a fair statement. I don't have the number off the top of my head to be honest, Steve. But it's probably disproportionate relative to the rest of our book. But I would have to run the math, but I'd -- I mean, maybe it's one-third to 1/2 of it, $20 million or so of equity. But I would not say it's the majority of it.

不，我覺得這種說法不太公平。老實說，史蒂夫，我一時想不起來具體數字。但相對於我們書的其他部分來說，這可能比例過高。我得算算，但我覺得──我的意思是，也許佔了三分之一到二分之一，大概兩千萬美元左右的股權。但我不會說它是大部分。

Okay. On that same page, just out of curiosity on Page 10, the weighted average yield on debt investments at par is 13.8%, does that have something to do with the purchase accounting because it jumped up from 10.7% to 13.8%?

好的。出於好奇，在同一頁的第10頁，以面值計算的債務投資加權平均收益率為13.8%，這是否與購買會計處理有關，因為它從10.7%躍升至13.8%？

Yes, that's exactly right. So on a core basis, it's about 10.3%, Steve. But that is the impact of purchase accounting accretion you may note when you do an asset acquisition, the Board negotiates everything on a NAV-for-NAV basis, but the actual accounting for it, when you issue the equity, it actually is issued at the market price or closing stock price on the issuance date.

是的，完全正確。所以從核心股本來看，大約是10.3%，史蒂夫。但這就是收購會計增值的影響，你可能注意到，在進行資產收購時，董事會會以淨資產價值為基礎進行談判，但實際的會計處理，也就是發行股權時，實際上是按發行日的市場價格或收盤價發行的。

So because of the discount to NAV on the issuance date, that creates a large disconnect between the NAV you're bringing on. And the dollar value of the purchase reflected in your financials, which creates an unrealized gain that's allocated to the cost basis of your investment portfolio, which is accretive...

由於發行日淨資產值存在折價，導致您實際獲得的淨資產值與財務報表中反映的購買金額之間存在較大差距，從而產生未實現收益，該收益將計入您投資組合的成本基礎，從而增加您的收益…

I got that. You might want to consider either footnoting that or putting a second number there?

我明白了。您或許可以考慮加註腳或再加一個數字？

Yes, good call. Again, putting the two portfolios together was slightly dilutive on a yield at par basis. But as I mentioned on the call, our new origination was about 12.5% yield. So obviously, we're -- we're being thoughtful and selective about our new investments to kind of work on increasing that yield despite sort of where kind of spreads are going in the market in general.

是的，說得對。再次強調，將這兩個投資組合合併確實會略微稀釋收益率。但正如我在電話會議中提到的，我們新推出的貸款收益率約為12.5%。所以很顯然，儘管市場整體利差走向不明朗，我們仍然會謹慎選擇新的投資項目，並努力提高收益率。

Okay. Can you talk about PIK this quarter? It didn't move too much and what's going on, on the PIK side of the portfolio?

好的。能談談本季的PIK（實物支付）情況嗎？它波動不大，投資組合中PIK部分的情況如何？

Steve, it actually did come down quite a bit as a percentage of the book. It's down to about 14.3% and it was pulling up what it was last quarter, but it was quite a bit higher, north of 20%, I believe. Yes, 19.5%.

史蒂夫，實際上，它佔總帳面價值的比例確實下降了不少。現在大約是14.3%，比上個季度高了不少，我記得當時超過了20%。是的，19.5%。

As a percentage of the current quarter's income.

佔本季營收的百分比。

Yes, that's right. Yes, I mean, it's come down quite materially, Steve. It's got its come down on a combined basis by a quarter.

是的，沒錯。我的意思是，它確實大幅下降了，史蒂夫。總體而言，它下降了四分之一。

Yes, by 5 points. And again, we're -- as I said, like , but part of our strategy is a good amount, but -- not good amount, but we have securities on our book to have a mix of cash and cash and PIK, we have investments that we do that we look at a first-lien and a preferred equity investment together for the same company, and that preferred is PIK and the first lien is cash.

是的，領先5個百分點。而且，正如我所說，我們——就像……一樣，但我們策略的一部分是持有相當數量的證券，但——數量不多，但我們賬面上有證券，以實現現金和現金加實物支付的組合。我們進行的投資包括對同一家公司同時進行優先股和優先擔保投資，其中優先股是實物支付，而優先股是現金。

So again, as you've kind of noted before, not all PIK are bad PIK, but we are certainly actively working to reduce that number and are conscious of market perception of that and are being careful as we think about new deals and how we think about allocating to kind of make sure that we are overweighting cash opportunities versus things that have a blend of cash impact...

所以，正如您之前提到的，並非所有實物支付收益都是壞的，但我們當然正在積極努力減少實物支付收益的數量，並且我們意識到市場對此的看法，因此在考慮新交易以及如何分配資金時，我們都非常謹慎，以確保我們優先考慮現金機會，而不是那些現金影響複雜的項目…

Okay. Brandon overhead expenses and the expense side of the income statement. Is this quarter exemplary -- or is there -- does this quarter still have merger-related costs that are going to come out?

好的。布蘭登的管理費用和損益表中的費用部分。本季業績是否堪稱典範？或者說，本季是否仍有與併購相關的成本需要計入？

So this is actually a pretty decent run rate. Most of the transaction costs don't flow through the income statement here, they hit NAV on the closing date. There were some elevated expenses, obviously, for time spent integrating the portfolios, et cetera.

所以這實際上是一個相當不錯的運行率。大部分交易成本不會計入損益表，而是直接計入交割日的資產淨值。當然，整合投資組合等方面也存在一些較高的費用。

However, we closed on July 15. So there's next quarter we'll have 15 days of extra expenses. However, we think that $1.9 million, $1.8 million number is a reasonable run rate for the combined.

然而，我們在7月15日結束了營業。因此，下個季度我們將額外支出15天。不過，我們認為合併後的190萬美元或180萬美元的營運成本是合理的水平。

Got it. Professional fees were elevated. Is that still residual?

明白了。專業服務費漲了。那還是照服務費率計算的嗎？

Yes, exactly.

是的，正是如此。

Christopher Nolan, Ladenburg.

克里斯多福諾蘭，拉登堡。

Steve, just asked all my questions.

史蒂夫，他剛剛問完了我所有的問題。

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Just a quick follow-up. On the topic of the purchasing accounting accretion, was all of the discount recorded in 3Q? Or I suspect there may still be potentially more so what is that balance and over what kind of time period will the remaining amount be recognized?

再補充一點。關於採購會計上的增值，第三季是否已全部計入折扣？或者我懷疑可能還有剩餘，那麼剩餘金額是多少？將在多長時間內確認？

Yes. Brandon, but it's generally recognized over the duration of the underlying assets themselves -- so it's tough to tell you exactly in what that would be, the decline curve, if you will, is going to be based on how those assets get monetized and what their maturity dates are, et cetera.

是的，布蘭登，但通常情況下，價值體現在基礎資產本身的存續期內——所以很難確切地告訴你具體情況，下降曲線，如果你願意這麼稱呼的話，將取決於這些資產的貨幣化方式以及它們的到期日等等。

In terms of -- go ahead.

至於——請繼續。

I was going to say, Erik, there was about just north of $21 million of purchase accounting accretion. There's about $18 million left. So I would just say, generally speaking, the a lot of the purchase accounting increase in tends to work its way through the book in the first couple of quarters after closing.

我本來想說，艾瑞克，收購會計增值大約略高於2,100萬美元。還剩下約1800萬美元。所以我想說，一般來說，大部分收購會計增值會在交易完成後的頭幾季逐漸反映在帳面上。

It is recognized over time, but obviously, you have assets with shorter maturities, things like that and natural portfolio rotation as a result of the integration that again, this quarter, we had $3.6 million on effectively a stub quarter, so.

隨著時間的推移，這一點會被認識到，但顯然，你會有一些期限較短的資產，諸如此類，以及由於整合而導致的自然投資組合輪動，同樣，本季度，我們實際上在一個短暫的季度裡有 360 萬美元，所以。

Yes. Okay. So a greater amount up front end and it will kind of trail off as that portfolio matures and pay down over time. That's very helpful.

是的，好的。所以前期投入會比較多，隨著投資組合的成熟和時間的推移，投入會逐漸減少。這很有幫助。

There are no further questions at this time. I will now turn the call back over to Ted Goldthorpe for closing remarks.

目前沒有其他問題了。現在我將把電話轉回給泰德‧戈索普，請他作總結發言。

Thank you all for attending our call. As always, please reach out to us with any questions, which we're happy to discuss. We look forward to speaking to you again in March when we announce our fourth quarter and full year 2025 results. Have a good weekend, and thank you very much.

感謝各位參加本次電話會議。如有任何疑問，歡迎隨時聯絡我們，我們非常樂意解答。我們期待在三月再次與您交流，屆時我們將公佈2025年第四季及全年業績。祝您週末愉快，非常感謝！

Ladies and gentlemen, that concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝各位的參與。現在可以掛斷電話了。