Bain Capital Specialty Finance Inc (BCSF) 2024 Q3 法說會逐字稿

Good day, everyone, and welcome to today's Bain Capital Specialty Finance third quarter ended September 30, 2024, earnings conference call. (Operator Instructions)

大家好，歡迎參加今天的貝恩資本專業金融第三季截至 2024 年 9 月 30 日的收益電話會議。（操作員說明）

Please note, this call is being recorded.

請注意，此通話正在錄音。

(Operator Instructions) It is now my pleasure to turn today's program over to Katherine Schneider with Investor Relations.

（操作員說明） 現在我很高興將今天的節目交給投資者關係部門的凱瑟琳·施奈德 (Katherine Schneider)。

Thank you, Britney, and good morning, everyone, and welcome to the Bain Capital Specialty Finance third quarter ended September 30, 2024, conference call. Yesterday after market close, we issued our earnings press release and investor presentation of our quarterly results, a copy of which is available on Bain Capital Specialty Finance's Investor Relations website.

謝謝布蘭妮，大家早安，歡迎參加截至 2024 年 9 月 30 日的貝恩資本專業金融第三季電話會議。昨天收盤後，我們發布了收益新聞稿和季度業績投資者介紹，其副本可在貝恩資本專業金融的投資者關係網站上取得。

Following our remarks today, we will hold a question-and-answer session for analysts and investors. This call is being webcast, and a replay will be available on our website. This call and webcast are property of Bain Capital Specialty Finance and any authorized broadcast in any form is strictly prohibited.

在今天的演講之後，我們將為分析師和投資者舉行問答會。該電話會議正在網路直播，我們的網站上將提供重播。本次電話會議和網路廣播屬於貝恩資本專業金融的財產，嚴禁以任何形式進行任何授權廣播。

Any forward-looking statements made today do not guarantee future performance, and actual results may differ materially. These statements are based on current management expectations, which include risks and uncertainties, which are identified in the Risk Factors section of our Form 10-Q that could cause actual results to differ materially from those indicated.

今天做出的任何前瞻性陳述並不保證未來的業績，實際結果可能存在重大差異。這些陳述是基於目前管理階層的預期，其中包括風險和不確定性，這些風險和不確定性在我們的表格 10-Q 的風險因素部分中確定，可能導致實際結果與所示結果有重大差異。

Bain Capital Specialty Finance assumes no obligation to update any forward-looking statements at this time, unless required to do so by law. Lastly, past performance does not guarantee future results.

除非法律要求，貝恩資本專業金融目前不承擔更新任何前瞻性聲明的義務。最後，過去的表現並不能保證未來的結果。

So with that, I'd like to turn the call over to our CEO, Michael Ewald.

因此，我想將電話轉給我們的執行長 Michael Ewald。

Thanks, Katherine, and good morning, and thanks to all of you for joining us here today on our earnings call. I'm joined today by Mike Boyle, our President; and our Chief Financial Officer, Amit Joshi.

謝謝凱瑟琳，早安，謝謝大家今天參加我們的財報電話會議。今天我們的總裁 Mike Boyle 也加入了我的行列。以及我們的財務長阿米特喬希 (Amit Joshi)。

In terms of the agenda for the call, I'll start with an overview of our third quarter ended September 30, 2024, results, and then provide some thoughts on our performance, the overall market environment and our positioning. Thereafter, Mike and Amit will discuss our investment portfolio and financial results in greater detail. And as usual, we'll also leave some time for questions at the end.

就電話會議的議程而言，我將首先概述截至 2024 年 9 月 30 日的第三季業績，然後提供對我們的業績、整體市場環境和我們的定位的一些想法。此後，麥克和阿米特將更詳細地討論我們的投資組合和財務表現。像往常一樣，我們最後也會留一些時間來提問。

So yesterday after market closed, we delivered strong third quarter results. Q3 net investment income per share was $0.53 as we continue to benefit from high base interest rates across our portfolio.

因此，昨天收盤後，我們發布了強勁的第三季業績。第三季每股淨投資收益為 0.53 美元，因為我們繼續受益於整個投資組合的高基本利率。

Our net investment income return represented an annualized yield of 11.9% on book value and covered our regular dividend by 126%. Q3 earnings per share were $0.51, or an annualized return on equity of 11.5% as credit fundamentals remained healthy across our portfolio. As of September 30, our net asset value per share was $17.76, an increase of 0.3% from the prior quarter end.

我們的淨投資收益回報率以帳面價值計算的年化收益率為11.9%，涵蓋我們的定期股息126%。第三季每股收益為 0.51 美元，年化股本回報率為 11.5%，因為我們的投資組合信貸基本面保持健康。截至 9 月 30 日，我們的每股淨值為 17.76 美元，較上季末成長 0.3%。

Subsequent to quarter end, our Board declared a fourth quarter dividend equal to $0.42 per share and payable to record date holders as of December 31, 2024. The Board also declared an additional dividend of $0.03 per share for shareholders of record as of December 31, as we had previously announced back in February. This brings total dividends for the fourth quarter to $0.45 per share or a 10.1% annualized rate on ending book value as of September 30, which we believe represents an attractive yield for our shareholders.

季度末後，我們的董事會宣布第四季度股息為每股 0.42 美元，並將支付給截至 2024 年 12 月 31 日的記錄日期持有人。正如我們之前在 2 月宣布的那樣，董事會還宣布向截至 12 月 31 日在冊股東派發每股 0.03 美元的額外股息。這使得第四季度的股息總額達到每股 0.45 美元，即截至 9 月 30 日的期末帳面價值的年化利率為 10.1%，我們認為這對我們的股東來說是一個有吸引力的收益率。

Turning now to the market environment. During the third quarter, we continued to see active deal flow with increased transaction levels, driven by both M&A and new LBO activity as volumes returned to levels comparable to historical periods.

現在轉向市場環境。第三季度，在併購和新的槓桿收購活動的推動下，我們繼續看到活躍的交易流和交易水平的上升，交易量恢復到與歷史時期相當的水平。

Based on current market conditions, we would expect these trends to continue into 2025, supported by the large amount of private equity dry powder, pressures for private equity sponsors to return capital back to their investors and a likely lower interest rate environment from the higher levels seen in recent years.

根據目前的市場狀況，我們預計這些趨勢將持續到 2025 年，受到大量私募股權乾粉、私募股權發起人向投資者返還資本的壓力以及較高水平可能較低的利率環境的支持近年來所見。

Our Private Credit Group's long-standing presence in the middle market, combined with our strong focus and expertise across myriad industries, enables us to generate an attractive deal pipeline while remaining highly selective in our investments.

我們的私人信貸集團在中間市場的長期存在，加上我們對眾多行業的強烈關注和專業知識，使我們能夠創造有吸引力的交易管道，同時在投資中保持高度選擇性。

Gross originations during Q3 were $413 million, up 278% year over year and approximately 35% from Q2 levels of $307 million. This quarter, our platform was particularly active providing capital to new platforms that we sourced from our sponsor relationships who value the specialized industry expertise that Bain Capital Credit brings as a source of differentiation versus other lenders.

第三季的總營收為 4.13 億美元，年增 278%，比第二季的 3.07 億美元成長約 35%。本季度，我們的平台特別積極地向新平台提供資金，這些平台是我們從贊助商關係中獲得的，這些平台重視貝恩資本信貸帶來的專業行業專業知識，作為與其他貸方的差異化來源。

While the private credit market continues to experience significant growth as many private lenders have moved upmarket, we continue to see attractive opportunities to source and underwrite investment opportunities in the core middle market and serve as a value-added capital provider and business partner to growing businesses.

雖然隨著許多私人貸款機構轉向高端市場，私人信貸市場繼續經歷顯著增長，但我們仍然看到在核心中間市場尋找和承銷投資機會的誘人機會，並為成長型企業提供增值資本和業務合作夥伴。

We value this segment of the market given its stable size premium and insulation to large market volatility. Across our direct originations to new platforms during the third quarter, the median EBITDA of our borrowers was approximately $33 million, consistent with our core borrower EBITDA focus of between $25 million and $75 million.

我們看重這一部分市場，因為它具有穩定的規模溢價和對市場大幅波動的絕緣性。在第三季我們直接發起的新平台中，我們借款人的 EBITDA 中位數約為 3,300 萬美元，與我們的核心借款人 EBITDA 重點在 2,500 萬至 7,500 萬美元之間一致。

Relative value remains attractive on new investments within this segment of the market. While we have seen some recent spread compression across the broader market this year, terms and structure continue to be attractive. The weighted average yield on Q3 investments to new companies was 10.7%, with a median leverage levels of 4.5 times on these new these originations.

對於該市場領域的新投資來說，相對價值仍然具有吸引力。儘管今年整體市價差有所壓縮，但條款和結構仍然具有吸引力。第三季新公司投資的加權平均收益率為 10.7%，這些新公司的槓桿水準中位數為 4.5 倍。

We continue to place a heavy emphasis on investing in structures, which benefit from strong lender controls through credit agreement documentation containing financial covenants and having control positions among lender groups.

我們繼續高度重視對結構的投資，這些結構透過包含財務契約的信貸協議文件以及在貸方團體中擁有控制地位，受益於貸方的強大控制。

96% of our Q3 originations to new companies were structured with documentation containing financial covenants tied specifically to management's forecasts, and we have majority control positions in nearly 87% of these debt tranches, allowing us to drive eventual outcomes at our discretion. These statistics are consistent with our broader portfolio, showing our continued focus on these core tenets of our investing strategy.

我們在第三季向新公司發放的貸款中，96% 的文件包含專門與管理層預測相關的財務契約，而且我們在其中近87% 的債務中擁有多數控制權，這使我們能夠自行決定推動最終結果。這些統計數據與我們更廣泛的投資組合一致，顯示我們持續關注投資策略的這些核心原則。

Moving on to credit quality. Our portfolio companies continue to exhibit strong fundamental performance in the current market environment.

轉向信用品質。我們的投資組合公司在當前市場環境下持續展現出強勁的基本面表現。

Leverage statistics across our borrowers remain healthy at 4.8 times overall based on our portfolio company median levels. Interest coverage also remain solid across our portfolio at approximately 1.7 times at quarter end despite continued elevated base rates. Investments on nonaccrual remain low across the portfolio, which is 1.1% of the total portfolio at fair value.

根據我們投資組合公司的中位數水平，我們借款人的槓桿統計數據總體保持在 4.8 倍的健康水平。儘管基本利率持續上升，但我們的投資組合的利息覆蓋率在季度末仍保持穩定，約為 1.7 倍。投資組合中的非應計投資仍較低，以公允價值計算佔投資組合總額的 1.1%。

Credit risk rating trends were also stable during the quarter, with only a small percentage of our portfolio underperforming and on our watch list. We believe our strong record, track record of solid company performance is a testament to Bain Capital's disciplined and highly selective underwriting process.

本季信用風險評等趨勢也保持穩定，我們的投資組合中只有一小部分錶現不佳並處於我們的觀察名單上。我們相信，我們良好的記錄和穩健的公司業績記錄證明了貝恩資本紀律嚴明且高度選擇性的承銷流程。

Lastly, at the end of the third quarter, our gross and net leverage ratios for BCSF were 1.14 times and 1.09 times, respectively, which falls in the middle of our target leverage ratio of 1.0 to 1.5 times, and position us well with ample dry powder to capitalize on new investment opportunities in the current environment.

最後，截至第三季末，我們的BCSF 總槓桿率和淨槓桿率分別為1.14 倍和1.09 倍，處於我們目標槓桿率1.0 至1.5 倍的中間位置，這使我們處於有利的位置，擁有充足的乾貨。

I will now turn the call over to Mike Boyle, our President, to walk through our investment portfolio in greater detail. Mike?

我現在將把電話轉給我們的總裁 Mike Boyle，以更詳細地介紹我們的投資組合。麥克風？

Thanks, Michael, and good morning, everyone. I'll start with our investment activity for the third quarter and then provide an update on our current portfolio.

謝謝邁克爾，大家早安。我將從第三季的投資活動開始，然後提供我們目前投資組合的最新情況。

New fundings during the third quarter were $413 million into 83 portfolio companies, including $331 million into 16 new companies and $82 million into 67 existing companies. Sales and repayment activity totaled approximately $248 million, resulting in net investment fundings of $165 million in the quarter.

第三季向 83 家投資組合公司注入了 4.13 億美元的新資金，其中向 16 家新公司注入了 3.31 億美元，向 67 家現有公司注入了 8,200 萬美元。銷售和還款活動總計約 2.48 億美元，本季淨投資資金達 1.65 億美元。

This quarter, we remained focused on investing in first lien senior secured loans with 97% of our new investment fundings in first lien structures and 3% in preferred or common equity.

本季度，我們仍專注於投資第一留置權優先擔保貸款，97% 的新投資資金投資於第一留置權結構，3% 投資於優先或普通股。

As Michael highlighted earlier in the call, new investments made in the quarter were 80% to new portfolio companies and 20% to existing or incumbent companies. We added 16 new companies this quarter, which led to an improvement in our single name company diversification to 159 different companies in the current portfolio.

正如邁克爾早些時候在電話會議中所強調的那樣，本季的新投資中 80% 投資於新的投資組合公司，20% 投資於現有或現任公司。本季我們增加了 16 家新公司，這使得我們的單一名稱公司多元化程度有所提高，目前投資組合中擁有 159 家不同的公司。

In making new investments, we leverage Bain Capital's deep industry expertise across a wide range of sectors, including industries such as hotel, gaming and leisure, aerospace and defense and business services.

在進行新投資時，我們利用貝恩資本在多個領域深厚的產業專業知識，包括飯店、遊戲和休閒、航空航太和國防以及商業服務等產業。

Our sponsor relationships often value Bain Capital's knowledge base across a wide spectrum of industries, including specialized industries, which enable us to be a value-added partner to private equity sponsors through multiple cycles. Turning now to our current investment portfolio.

我們的保薦人關係通常重視貝恩資本在各行業（包括專業產業）的知識庫，這使我們能夠在多個週期中成為私募股權保薦人的增值合作夥伴。現在轉向我們目前的投資組合。

At the end of the third quarter, the size of our portfolio at fair value was approximately $2.4 billion across a diversified set of 159 companies operating across 31 industries. Our portfolio primarily consists of first lien senior secured loans given our focus on downside management and investing in the top of the capital structure.

截至第三季末，我們的投資組合以公允價值計算的規模約為 24 億美元，涵蓋 31 個產業的 159 家多元化公司。鑑於我們專注於下行管理和投資於資本結構的頂層，我們的投資組合主要包括第一留置權優先擔保貸款。

As of September 30, 63% of the portfolio at fair value was invested in first lien debt, 3% in second lien debt, 2% in subordinated debt, 7% in preferred equity, 9% in equity and other interests, and 16% across our joint ventures, including 10% in the ISLP and 6% in the SLP. The vast majority of our underlying investments within both of these joint ventures are first lien loans.

截至9 月30 日，以公允價值計算的投資組合中63% 投資於第一留置權債務，3% 投資於第二留置權債務，2% 投資於次級債務，7% 投資於優先股，9 % 投資於股權及其他權益，16% 投資於優先股。我們在這兩家合資企業中的絕大多數基礎投資都是第一留置權貸款。

As of September 30, the weighted average yield of the investment portfolio at amortized cost was 12.1% as compared to 13.1% as of June 30. This decline in yields was partially driven by the decrease in base rates, which contributed about 38 basis points to this yield decline, but it was primarily driven by the decrease in dividends from our aviation portfolio and our joint ventures.

截至9月30日，投資組合以攤餘成本計算的加權平均收益率為12.1%，而截至6月30日為13.1%。殖利率下降的部分原因是基本利率下降，導致殖利率下降約 38 個基點，但主要是由於我們的航空投資組合和合資企業的股息減少所致。

It's worth noting that the spread on our debt investments remain relatively constant quarter over quarter from 663 basis points over SOFR in Q2 to 653 basis points over SOFR in Q3. 91% of our debt investments bear interest at a floating rate, which positions the company favorably in today's higher interest rate environment.

值得注意的是，我們的債務投資利差季度環比保持相對穩定，從第二季度較 SOFR 663 個基點增至第三季度較 SOFR 653 個基點。我們 91% 的債務投資以浮動利率計息，這使公司在當今較高的利率環境中處於有利地位。

Moving now to portfolio credit quality trends. Our fundamentals remain healthy. As highlighted earlier, portfolio company fundamentals exhibited solid trends, with a median net leverage across our portfolio of 4.8 times at quarter end versus 4.7 times in the prior quarter. Credit quality trends within our internal risk rating scales were also stable quarter over quarter.

現在轉向投資組合信用品質趨勢。我們的基本面依然健康。如同前面所強調的，投資組合公司的基本面表現出穩健的趨勢，季度末我們投資組合的淨槓桿中位數為 4.8 倍，而上一季為 4.7 倍。我們內部風險評等範圍內的信用品質趨勢也逐季維持穩定。

Risk rating 1 and 2 investments, which indicate that the company was performing in line or better than expectations, totaled 96% of our portfolio as of September 30 as compared to 97% in the prior quarter.

截至 9 月 30 日，風險評級為 1 和 2 的投資（表明該公司的表現符合或優於預期）總計占我們投資組合的 96%，而上一季為 97%。

Risk rating 3 and 4 are underperforming investments comprise just 4% of our portfolio at fair value. Investments on nonaccrual represented 1.9% and 1.1% of the total investment portfolio at amortized cost and fair value, respectively, as of September 30.

風險評級 3 和 4 屬於表現不佳的投資，以公平價值計算，僅占我們投資組合的 4%。截至 9 月 30 日，非應計投資分別佔以攤餘成本和公允價值計算的總投資組合的 1.9% 和 1.1%。

This is compared to 1.2% and 1.0%, respectively, as of June 30. Lastly, we would highlight the performance across our aggregate 120-plus companies within our underlying joint ventures continue to perform well and consistent with our broader portfolio.

截至 6 月 30 日，這一數字分別為 1.2% 和 1.0%。最後，我們要強調的是，我們旗下合資企業內總共 120 多家公司的業績持續表現良好，並且與我們更廣泛的投資組合保持一致。

I'll now turn the call over to Amit who will provide a more detailed financial review.

我現在將把電話轉給阿米特，他將提供更詳細的財務審查。

Thank you, Mike, and good morning, everyone. I'll start the review of our third quarter 2024 results with our income statement. Total investment income was $72.5 million for three months ended September 30, 2024, as compared to $72.3 million for the three months ended June 30, 2024.

謝謝你，麥克，大家早安。我將從損益表開始回顧 2024 年第三季的業績。截至2024年9月30日止三個月的總投資收益為7,250萬美元，而截至2024年6月30日止三個月的總投資收益為7,230萬美元。

The increase in investment income was primarily driven by an increase in other income. Our investment income continues to benefit from high-quality source of investment income, largely driven by contractual cash income across its investments.

投資收益的成長主要是由其他收入的成長所帶動的。我們的投資收入持續受益於高品質的投資收入來源，主要由投資的合約現金收入驅動。

Interest income and dividend income represented 92% of our total investment income in Q3. Total expenses before taxes for the third quarter were $37.5 million as compared to $38 million in the second quarter. Net investment income for the quarter was $34 million or $0.53 per share as compared to $33.1 million or $0.51 per share for the prior quarter.

利息收入和股息收入佔第三季總投資收入的92%。第三季稅前總支出為 3,750 萬美元，而第二季為 3,800 萬美元。本季的淨投資收益為 3,400 萬美元，即每股 0.53 美元，而上一季的淨投資收益為 3,310 萬美元，即每股 0.51 美元。

During the three months ended September 30, 2024, the company had net realized and unrealized losses of $900,000. Net income for three months ended September 30, 2024, was $33.1 million or $0.51 per share.

截至 2024 年 9 月 30 日的三個月內，該公司已實現和未實現的淨虧損為 90 萬美元。截至 2024 年 9 月 30 日的三個月淨利為 3,310 萬美元，即每股 0.51 美元。

Moving over to our balance sheet. As of September 30, our investment portfolio at fair value totaled $2.4 billion and total assets of $2.5 billion. Total net assets were $1.1 billion as of September 30, 2024. NAV per share was $17.76, an increase of $0.06 per share or a 0.3% increase from $17.70 at the end of second quarter as we demonstrated strong NII overearning of our dividend, coupled with stable credit quality across our portfolio.

轉向我們的資產負債表。截至9月30日，我們的投資組合公允價值總計24億美元，總資產25億美元。截至 2024 年 9 月 30 日，淨資產總額為 11 億美元。每股淨值為 17.76 美元，每股增加 0.06 美元，較第二季末的 17.70 美元增加 0.3%，因為我們表現出強勁的股息 NII 超額收益，以及整個投資組合穩定的信用品質。

At the end of Q3, our debt-to-equity ratio was 1.14 times as compared to 1.03 times for the end of Q2. Our net leverage ratio, which represents principal debt outstanding less cash and unsettled trade, was 1.09 times at the end of Q3 as compared to 0.95 times at the end of Q2.

第三季末，我們的負債股本比率為 1.14 倍，而第二季末為 1.03 倍。我們的淨槓桿率（即未償本金減去現金和未結算交易）在第三季末為 1.09 倍，而第二季末為 0.95 倍。

As of September 30, approximately 54% of our outstanding debt was in floating rate debt and 46% in our fixed rate debt. Our debt funding continues to benefit from low fixed rate debt structures. For the three months ended September 30, 2024, the weighted average interest rate on our debt outstanding was 5.1% as compared to 5.1% as of the prior quarter end.

截至 9 月 30 日，我們的未償債務中約 54% 為浮動利率債務，46% 為固定利率債務。我們的債務融資持續受益於低固定利率債務結構。截至 2024 年 9 月 30 日的三個月，我們的未償債務加權平均利率為 5.1%，而上一季末為 5.1%。

The weighted average maturity across our total debt commitment was approximately 4.5 years at September 30, 2024. Liquidity at quarter totaled $562 million, including $501.3 million of undrawn capacity on our revolving credit facility, $59.8 million of cash and cash equivalents, including $29.3 million of restricted cash and around $600,000 of unsettled trade net of receivables and payable of investment.

截至 2024 年 9 月 30 日，我們總債務承諾的加權平均期限約為 4.5 年。本季流動性總計5.62 億美元，包括循環信貸額度中未提取的5.013 億美元、現金和現金等價物5,980 萬美元，其中包括2,930 萬美元的限制性現金以及約60 萬美元的未結算貿易（扣除投資的應收帳款和應付帳款）。

Subsequent to quarter end, our Board declared a fourth quarter 2024 dividend equal to $0.42 per share and a special dividend, as previously announced, of $0.03 per share, bringing total Q4 dividend to $0.45 per share. Both dividends are payable on January 31, 2025, to stockholders of record date on December 31, 2024. As a reminder, our Board declared a total of $0.12 per share additional dividend, driven by our strong overearning in 2023.

季度末後，我們的董事會宣布 2024 年第四季股息為每股 0.42 美元，特別股息（如先前宣布的那樣為每股 0.03 美元），使第四季度股息總額達到每股 0.45 美元。兩次股利均將於2025年1月31日支付給登記日為2024年12月31日的股東。謹此提醒，在我們 2023 年強勁的超額獲利的推動下，我們的董事會宣布追加每股 0.12 美元的額外股息。

These special dividends have been paid out in installments of $0.03 per share per quarter throughout the year. We currently estimate that our spillover income totaled approximately $1.13 per share, representing over 2 times of our quarterly regular dividend. We will continue to monitor our undistributed earning against prudent capital management considerations.

這些特別股息全年每季以每股 0.03 美元的價格分期支付。我們目前估計我們的溢出收入總計約為每股 1.13 美元，相當於我們季度定期股息的 2 倍以上。我們將繼續根據審慎的資本管理考量來監控我們的未分配利潤。

With that, I'll turn the call back over to Mike Ewald for the closing remarks.

接下來，我會將電話轉回給 Mike Ewald 作結束語。

Thanks, Amit. In closing, we are pleased to deliver another strong quarter of attractive earnings for our shareholders with NII well in excess of our dividend and steady NAV growth as our underlying borrowers continue to perform well.

謝謝，阿米特。最後，我們很高興為我們的股東帶來又一個強勁的季度有吸引力的收益，NII 遠遠超過我們的股息，並且由於我們的基礎借款人繼續表現良好，資產淨值穩定增長。

We believe the company remains well positioned to source new middle-market lending opportunities given our own dry powder, global footprint and deep industry expertise, while remaining disciplined in our credit selection. As always, we thank you for the privilege of managing our shareholders' capital.

我們相信，鑑於我們自己的乾粉、全球足跡和深厚的行業專業知識，該公司仍處於尋找新的中間市場貸款機會的有利地位，同時在信貸選擇方面保持嚴格。一如既往，我們感謝您有幸管理我們的股東資本。

Britney, please open the line for questions.

布蘭妮，請打開提問線。

(Operator Instructions) Paul Johnson, KBW.

（操作員說明）Paul Johnson，KBW。

I just like to kind of maybe get a sense of just within the portfolio yield declined this quarter 100 basis points or so quarter over quarter. What was kind of the interplay of the decline in yield sort of due to some sort of lower reset on the base rates versus spread compression? It sounded like in your comments that spreads were actually fairly stable quarter-over-quarter. So just kind of like to get a sense of what's driving the yield decline this quarter?

我只是想了解本季投資組合收益率季減 100 個基點左右。由於基本利率與利差壓縮之間的某種較低重置，殖利率下降之間有何交互作用？在您的評論中，聽起來好像季度與季度之間的利差實際上相當穩定。那麼想了解一下是什麼導致了本季殖利率下降？

Sure. Thanks for the question, Paul. So as we noted, about 38 basis points of that yield decline was driven by lower base rate. There was another about 10 basis points that was driven by the decrease on spreads on the credit assets in the portfolio. So fairly stable, as you noted and as we spoke about in our prepared remarks.

當然。謝謝你的提問，保羅。正如我們所指出的，收益率下降約 38 個基點是由基準利率下降造成的。另外還有約 10 個基點，這是由於投資組合中信貸資產利差下降所致。正如您所指出的以及我們在準備好的發言中談到的那樣，相當穩定。

The biggest step down in yield was really driven by the dividend income that was earned in BCSF quarter-over-quarter. So about $6.1 million was earned in Q3 versus about $8.2 million earned in the prior quarter. And that also was really driven by both our aviation investment called Gale, where we did not distribute all of the earnings. There we decided to invest some into the fleet of planes.

收益率最大降幅實際上是由 BCSF 季度環比賺取的股息收入所推動的。因此，第三季的營收約為 610 萬美元，而上一季的營收約為 820 萬美元。這實際上也是由我們名為 Gale 的航空投資推動的，我們沒有分配所有收益。在那裡，我們決定對機隊進行一些投資。

And so that drove some of the step down as well as a slight step down in some of the dividends earned from our joint ventures. So it was primarily just driven by those dividends, not actual degradation in the spreads of the assets that we're originating.

因此，這導致我們從合資企業賺取的股息有所下降，也略有下降。因此，這主要是由這些股息驅動的，而不是我們所發起的資產利差的實際下降。

Got it. I appreciate that. That's really helpful. And then how do you guys think about -- I mean, your pipeline, I mean, in terms of spreads and where that's shaping up to kind of the average spread in the portfolio at this point?

知道了。我很欣賞這一點。這真的很有幫助。然後你們如何看待——我的意思是，你們的管道，我的意思是，就利差而言，以及目前投資組合中的平均利差在哪裡？

It seems like M&A, from what you're seeing at least, is picking up. Do you expect there to be some more spread compression in the portfolio as the portfolio churns into next year?

至少從你所看到的來看，併購似乎正在加速。隨著投資組合進入明年，您是否預期投資組合中的利差會進一步壓縮？

Thanks, Paul. Look, I think a lot of the spread compression has kind of played out during the course of this year. I think what we're seeing now is a lot more bifurcation in spreads based on the quality of the credit, which is certainly helpful to see.

謝謝，保羅。看，我認為今年期間已經發揮了很多傳播壓縮作用。我認為我們現在看到的是基於信貸品質的利差出現了更多的分歧，這當然是有幫助的。

So I think the well bank sponsor with an A+ credit you might still see some spread compression there, but the sort of more average deal or the sponsor that hasn't gotten as much coverage or maybe lenders having left our core middle market and gone upmarket leaves a little bit more room for us to operate.

因此，我認為擁有A+ 信用的銀行贊助商可能仍然會看到一些利差壓縮，但那種更平均的交易或贊助商沒有獲得盡可能多的覆蓋範圍，或者貸方可能已經離開我們的核心中端市場並進入高端市場給我們留下多一點的操作空間。

I think there, we'll still see spreads hang in pretty similar to the numbers that we saw this quarter.

我認為，我們仍然會看到利差與本季看到的數字非常相似。

And then, I mean, in terms of the private credit premium, yield premium to the syndicated markets, I mean, how do you guys think about the international private credit market? I mean do you see that market as potentially a little bit more insulated with the premium that private credit gets over the bank syndicated market just due to more competition in the middle market here in the US? Or I'm just curious if there's any kind of relation between the two?

然後，我的意思是，就私人信貸溢價、銀團市場的收益率溢價而言，你們如何看待國際私人信貸市場？我的意思是，您是否認為該市場可能會因為美國中間市場的競爭加劇而受到私人信貸相對於銀行銀團市場的溢價的影響？或者我只是好奇這兩者之間是否有某種關係？

Yes. I'd say a couple of things. One is, we're still seeing 150, 200-basis-point spread, at least in the US between our assets and the more typical probably syndicated loan market. That same relationship doesn't necessarily exist in Europe just because neither of the markets, quite frankly, neither the syndicated market nor the private credit market is as developed over there.

是的。我想說幾件事。一是，我們的資產與更典型的可能銀團貸款市場之間仍然存在 150、200 個基點的利差，至少在美國是如此。同樣的關係在歐洲不一定存在，因為坦白說，無論是銀團市場還是私人信貸市場，那裡的市場都不那麼發達。

So it's harder to kind of benchmark one versus the other. What I would say, though, is in today's environment, from a relative value perspective, spreads are fairly similar right now between US and Europe.

因此，很難對一種方法與另一種方法進行比較。不過，我想說的是，在當今的環境下，從相對價值的角度來看，美國和歐洲之間的利差目前相當相似。

The caveat I would give you is that, in the US, you're seeing some of this pressure on some PIK optional interest, especially in the larger cap market, we're not seeing as much in our core middle market. You are seeing that pressure in Europe in the core middle market.

我要向您提出的警告是，在美國，您會看到一些 PIK 可選權益面臨一些壓力，特別是在較大的資本市場，我們在核心中間市場沒有看到那麼多壓力。您在歐洲核心中間市場看到了這種壓力。

And so if you're thinking like-for-like, the spreads are the same, but there's a demand for PIK optionality in Europe that makes Europe marginally less attractive for those particular deals. So at this point, it's less about pricing relative value and more about structure relative value when we weigh US versus Europe.

因此，如果您考慮同類交易，價差是相同的，但歐洲對 PIK 選擇性的需求使得歐洲對這些特定交易的吸引力略有下降。因此，在這一點上，當我們權衡美國與歐洲時，更多的是關於結構相對價值，而不是定價相對價值。

That's an interesting dynamic there. And then just on the credit quality, there was a little bit of deterioration, I mean just within your credit ranking, your credit scoring of investments. I mean there's 11 companies rated 3 and 4 this quarter versus 8 last quarter. There was a small increase in nonaccruals. So what was the driver of I guess the number of companies rated 3 and 4? Is that just the companies going on nonaccrual? Or is there is there any more there?

這是一個有趣的動態。然後就信用品質而言，有一點惡化，我的意思是在您的信用排名、投資的信用評分中。我的意思是，本季有 11 家公司評級為 3 和 4，而上季有 8 家公司。非應計費用略有增加。那麼，我猜評級為 3 和 4 的公司數量的驅動因素是什麼？難道只有那些採用非應計利潤的公司嗎？或者還有嗎？

Yes. It's still quite idiosyncratic. So there are some companies that are -- it's not necessarily going on nonaccrual. It's just companies that are going on our watch list for performance under the original underwrite.

是的。這還挺有特色的。因此，有些公司不一定是非應計利潤。這些公司只是在原始承保下列入我們的績效觀察名單的公司。

But I noted there's -- it's not concentrated in any industry or really any theme that's been pulling through. It has still been quite idiosyncratic in the -- that small percentage of our portfolio that's risk rating 3 and 4.

但我注意到，它並不集中在任何行業或真正正在經歷的任何主題。我們投資組合中風險評級為 3 和 4 的一小部分仍然相當特殊。

Got it. And then just last one for me real quick. The $2.8 million small realized net gain, or realized gain in the portfolio this quarter, was there anything in particular that drove that? Was there an exit of any investments?

知道了。然後我就快點做最後一個。本季已實現 280 萬美元的小幅淨收益或投資組合的已實現收益，是否有什麼特別因素推動了這一成長？是否有任何投資退出？

Yes. So it was the exit of an investment called BlackBrush, which was in the restructuring that happened during COVID that we finally completed the sale and exit well above our par value, and we took the keys there. So it was that legacy exit from that company called BlackBrush.

是的。因此，這是一項名為 BlackBrush 的投資的退出，該投資是在新冠疫情期間發生的重組中，我們最終完成了遠高於票面價值的出售和退出，我們在那裡拿到了鑰匙。這就是 BlackBrush 公司的遺留退出。

(Operator Instructions) Derek Hewett, Bank of America.

（操作員指示）Derek Hewett，美國銀行。

Congrats on the good quarter. Could you talk about your plans to address the $300 million of bonds that mature in early 2026? Are your -- are you going to use your credit facility to take care of that maturity? Are you interested in tapping the unsecured market again later on next year?

恭喜季度表現良好。您能否談談處理 2026 年初到期的 3 億美元債券的計畫？您是否打算使用您的信用額度來滿足到期日的需要？您是否有興趣在明年稍後再次開拓無擔保市場？

Yes. I mean, we are prudently talking to all our banking partners. We are in continuous dialogue with them. And I would say our intend would be to access the market in 2025. As you highlighted, we have two unsecured, which will mature in 2026.

是的。我的意思是，我們正在謹慎地與所有銀行合作夥伴進行對話。我們正在與他們持續對話。我想說，我們的目標是在 2025 年進入市場。正如您所強調的，我們有兩個無抵押債券，將於 2026 年到期。

So we definitely will access the market. But at the same time, as you saw, we did increase our revolving facility, so between those two we'll prudently manage our liability.

所以我們一定會進入市場。但同時，正如您所看到的，我們確實增加了我們的周轉設施，因此在這兩者之間我們將謹慎管理我們的責任。

(Operator Instructions) It appears we have no further questions in the queue. I'll turn the program back over to Michael Ewald for any additional or closing remarks.

（操作員說明）隊列中似乎沒有其他問題了。我會將節目轉回給邁克爾·埃瓦爾德 (Michael Ewald)，以便他發表補充或結束語。

Thanks, Britney, and thanks again to all of you for joining us on our call today. Again, we're very pleased with the results of the third quarter, and we look forward to bringing you more news at the end of next quarter. Hope everyone has a good day.

謝謝布蘭妮，再次感謝大家參加我們今天的電話會議。再次，我們對第三季的業績感到非常滿意，並期待在下個季度末為您帶來更多消息。希望每個人都有美好的一天。

Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any time, and have a wonderful day.

謝謝。今天的節目到此結束。感謝您的參與。您可以隨時斷開連接，祝您有美好的一天。