Cion Investment Corp (CION) 2025 Q2 法說會逐字稿

Greetings, and welcome to the CION Investment Corporation second-quarter 2025 earnings call. (Operator Instructions) And as a reminder, this conference is being recorded.

您好，歡迎參加 CION 投資公司 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄製中。

It is now my pleasure to introduce to you, Charlie Arestia, Managing Director and Head of IR. Thank you, sir. You may begin.

現在我很高興向大家介紹董事總經理兼投資者關係主管 Charlie Arestia。謝謝您，先生。你可以開始了。

Good morning, and welcome to CION Investment Corporation's second-quarter 2025 earnings conference call. An earnings press release was distributed earlier this morning before market open. A copy of the release, along with the supplemental earnings presentation, is available on the company's website at www.cionbdc.com in the Investor Resources section. It should be reviewed in conjunction with the company's Form 10-Q filed with the SEC.

早安，歡迎參加 CION 投資公司 2025 年第二季財報電話會議。今天早上市場開盤前發布了一份收益新聞稿。新聞稿的副本以及補充收益報告可在公司網站 www.cionbdc.com 的「投資者資源」部分找到。應結合公司向美國證券交易委員會提交的 10-Q 表進行審查。

As a reminder, this conference call is being recorded for replay purposes. Please note that today's conference call may contain forward-looking statements, which are not guarantees of future performance or results, and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the company's filings with the SEC.

提醒一下，本次電話會議將會被錄音以供重播。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。

Joining me on today's call will be Michael Reisner, CION Investment Corporation's Co-Chief Executive Officer; Gregg Bresner, President and Chief Investment Officer; and Keith Franz, Chief Financial Officer.

參加今天電話會議的還有 CION 投資公司聯合執行長 Michael Reisner、總裁兼首席投資長 Gregg Bresner 和財務長 Keith Franz。

With that, I would like to now turn the call over to Michael Reisner. Please go ahead, Michael.

現在，我想將電話轉給邁克爾·賴斯納 (Michael Reisner)。請繼續，邁克爾。

Thank you, Charlie, and good morning, everyone. Thank you all for joining our call today. This morning, CION reported $0.32 in quarterly net investment income for the second quarter, mainly impacted by 2 positions, including our restructuring of Anthem Entertainment, which we discussed in the prior quarter, and the exit of our position in several hospital loans, which Gregg will discuss. Excluding this onetime impact, our quarterly net investment income would have exceeded our base dividend level of $0.36 per share. As I will touch upon in a bit, we are keeping our dividend steady at this time.

謝謝你，查理，大家早安。感謝大家今天參加我們的電話會議。今天上午，CION 報告第二季度季度淨投資收益為 0.32 美元，主要受到 2 個頭寸的影響，包括我們在上一季度討論過的對 Anthem Entertainment 的重組，以及我們在幾筆醫院貸款中的頭寸退出，Gregg 將對此進行討論。除去這一一次性影響，我們的季度淨投資收益將超過每股 0.36 美元的基準股息水準。正如我稍後會談到的，我們目前保持股息穩定。

Our net asset value increased 1.5% quarter-over-quarter to $14.50, up from $14.28 in the first quarter, driven by fair value increases in our equity positions in Longview Power, David's Bridal and several other smaller positions. We also continued to repurchase shares in the open market during the quarter, which remains accretive to our NAV. Longview Power is our second largest equity position, and saw improved valuation this quarter due to better-than-expected financial performance and strong capacity auction results.

我們的淨資產價值環比增長 1.5% 至 14.50 美元，高於第一季的 14.28 美元，這得益於我們在 Longview Power、David's Bridal 和其他幾個較小頭寸的股權公允價值增加。本季我們也持續在公開市場回購股票，這仍然有助於增加我們的資產淨值。Longview Power 是我們的第二大股權，由於財務表現優於預期以及產能拍賣結果強勁，本季估值有所提高。

As we have noted on prior calls, we expect some quarterly volatility in the fair value marks of our equity positions in David's Bridal, given the relative size of the position and the nature of its business. This quarter, our positions in David's were marked higher due to improved trading performance of comparable companies, increased clarity around potential impact of tariffs and the continued growth of a high multiple Pearl digital marketplace.

正如我們在先前的電話會議中指出的那樣，考慮到 David's Bridal 股權頭寸的相對規模及其業務性質，我們預計其公允價值將出現一些季度波動。本季度，由於可比公司交易業績的改善、關稅潛在影響的更加清晰以及高倍數 Pearl 數位市場的持續成長，我們在 David's 的持股顯著增加。

We are pleased with the continued credit performance of our portfolio as underlying fundamentals remain encouraging. We are seeing weighted average adjusted EBITDA growth at the portfolio company level in the mid-single digits on an LTM basis, reflecting sustainable growth and healthy operations.

由於基本面依然令人鼓舞，我們對投資組合的持續信用表現感到滿意。我們看到，投資組合公司層級的加權平均調整後 EBITDA 成長率在 LTM 基礎上達到中等個位數，反映了永續成長和健康營運。

Following our quarterly valuation process, we downgraded investments in portfolio companies on our internal risk rated scale and upgraded investments in 4 portfolio companies. Several of our rating upgrades were due to anticipated repayments subsequent to the quarter, following portfolio company sales or other transactions where we have received notification of a pending payoff. Investments risk rated 4 or 5 represent less than 2% of the portfolio at fair value, similar to the prior quarter. Overall, nonaccruals remain low at 1.37% of the portfolio at fair value.

在我們的季度估值流程之後，我們根據內部風險評級量表下調了對投資組合公司的投資評級，並上調了對 4 家投資組合公司的投資評級。我們的幾次評級上調都是因為預期在本季度之後會進行還款，在投資組合公司出售或其他交易之後，我們收到了待付款通知。風險評級為 4 或 5 的投資佔投資組合公允價值的比例不到 2%，與上一季相似。整體而言，非應計項目仍處於較低水平，以公允價值計算僅佔投資組合的 1.37%。

Capital markets were especially volatile in early Q2, and our share buyback activity accelerated as a result. We repurchased approximately 699,000 shares of our common stock at an average price of $9.37 during the quarter. We are excited to announce that our Board has authorized a $20 million upsize to our share repurchase program, which was renewed at our quarterly Board meeting earlier this week. We continue to believe that our share buyback preserves strong alignment with our shareholders, along with our insider purchasing, and remains a prudent use of capital as long as is accretive to NAV.

第二季初資本市場尤其動盪，我們的股票回購活動也因此加速。本季度，我們以平均 9.37 美元的價格回購了約 699,000 股普通股。我們很高興地宣布，董事會已批准將股票回購計畫增加 2,000 萬美元，該計畫在本週稍早的季度董事會會議上得到了續約。我們仍然相信，我們的股票回購以及內部購買與我們的股東保持緊密的一致性，並且只要能夠增加資產淨值，就仍然是謹慎的資本使用方式。

When we spoke with you last quarter, investors were attempting to digest a roll-in of macroeconomic challenges, including the initial wave of steep tariff declarations on various trading partners around the globe. Since then, improved clarity around both the strategy behind the tariffs as well as negotiated deals has led to a broader market rally and stronger sentiment. While it is too soon to say whether this trend will continue into the back half of the year, initial discussions with our portfolio companies remain positive. Repayments accelerated this quarter, and we expect additional repayments in the third quarter, which should allow us to deploy into our forward pipeline while balancing our overall leverage profile. Overall, we are pleased with our growth in NAV and continued steady credit performance in our portfolio.

當我們上個季度與您交談時，投資者正試圖消化一系列宏觀經濟挑戰，包括對全球各貿易夥伴徵收的第一波高關稅。自那時起，關稅背後的策略以及談判協議的清晰度不斷提高，導致市場出現更廣泛的反彈，市場情緒也更加強勁。雖然現在判斷這一趨勢是否會持續到下半年還為時過早，但與我們的投資組合公司的初步討論仍然是積極的。本季還款速度加快，我們預計第三季將有更多還款，這將使我們能夠部署到我們的遠期管道中，同時平衡我們的整體槓桿狀況。整體而言，我們對資產淨值的成長以及投資組合持續穩定的信貸表現感到滿意。

Regarding earnings, I want to share some incremental context around our dividend policy, even our net investment income for the period. We are maintaining our dividend at $0.36 per share for a couple of reasons. The first, what we believe is a nonrecurring nature of the impact to our earnings this quarter as a result of the 2 positions I mentioned. And second, we are currently leading the recapitalization of one of our larger portfolio companies in a transaction that we expect to close in the third quarter, which we believe will be highly accretive to both earnings and NAV.

關於收益，我想分享一些有關我們的股息政策的增量背景信息，甚至是我們該期間的淨投資收益。由於以下幾個原因，我們將股息維持在每股 0.36 美元。首先，我們認為，我提到的兩個職位對我們本季收益的影響是非經常性的。其次，我們目前正在主導我們較大的投資組合公司之一的資本重組，預計該交易將在第三季完成，我們相信這將極大地增加收益和資產淨值。

As we have mentioned in the past, we encourage investors not to overly focus on any particular 90-day window when evaluating our performance, as this does not reflect how we manage our investment and portfolio management processes. As we outlined at our Investor Day earlier this year, we see our opportunistic investing strategy as a strong complement to our core direct lending strategy, allowing CION to enhance shareholder returns, while remaining focused on a conservative first lien position. While we acknowledge that this can introduce some volatility into our earnings on a quarter-to-quarter basis, we believe this volatility tends to skew meaningfully to the upside, and thus should be evaluated on a longer-term perspective.

正如我們過去所提到的，我們鼓勵投資者在評估我們的績效時不要過度關注任何特定的 90 天窗口，因為這並不能反映我們如何管理我們的投資和投資組合管理流程。正如我們在今年稍早的投資者日上所概述的那樣，我們認為機會主義投資策略是我們核心直接貸款策略的有力補充，使 CION 能夠提高股東回報，同時繼續專注於保守的優先留置權地位。雖然我們承認這可能會為我們的季度收益帶來一些波動，但我們認為這種波動往往會明顯偏向上行，因此應該從長期角度進行評估。

With that, I'll now turn the call over to Gregg to discuss our portfolio and investment activity during the quarter.

現在，我將把電話轉給格雷格，討論我們本季的投資組合和投資活動。

Thank you, Michael, and good morning, everyone. We remained highly selective with new investments in Q2 as we were effectively at full investment during most of the quarter, and work to maintain our targeted net leverage level as we balance the timing of expected investment pipeline investments versus repayment amounts.

謝謝你，邁克爾，大家早安。由於我們在本季度的大部分時間都處於全額投資狀態，因此我們在第二季度對新投資保持了高度選擇性，並且努力在平衡預期投資管道投資與還款金額的時間安排時保持我們的目標淨槓桿水平。

During the quarter, we passed on a historically higher percentage of potential investments in new portfolio companies based on credit and pricing considerations as the continued hangover of record 2024 private debt fundraising still translated into lower coupon spreads, higher leverage levels and (inaudible) credit documents for potential transactions.

在本季度，我們基於信貸和定價考慮，放棄了對新投資組合公司歷史性更高比例的潛在投資，因為 2024 年創紀錄的私人債務融資的持續後遺症仍然轉化為更低的票面利差、更高的槓桿水平和（聽不清）潛在交易的信用文件。

As Michael discussed in his remarks, market conditions rebounded in Q2 as stronger economic indicators and reduced concerns regarding tariffs have boosted overall economic sentiment and equity markets. We focused our Q2 activities on incremental investments with our portfolio companies, particularly for strategic add-on acquisitions, business development and other corporate initiatives. We believe our continued investment selectivity and proportional deployment levels helped us to invest in first lien loans at higher spreads when compared to the overall private and public (inaudible) markets during the quarter. The weighted average yield for our total funded first lien debt investments for the quarter based on our investment costs with the equivalent of SOFR plus 6.96%.

正如邁克爾在演講中所討論的，由於經濟指標走強和對關稅的擔憂減少提振了整體經濟情緒和股票市場，市場狀況在第二季度出現反彈。我們第二季的活動重點是與投資組合公司進行增量投資，特別是策略性附加收購、業務發展和其他企業計劃。我們相信，與本季整體私人和公共（聽不清楚）市場相比，我們持續的投資選擇性和比例部署水準幫助我們以更高的利差投資了第一留置權貸款。本季我們全部已融資的優先留置權債務投資的加權平均收益率是基於我們的投資成本，相當於 SOFR 加上 6.96%。

As we discussed in previous quarters, the majority of our annual PIK income is strategically derived from highly structured first lien investments or where PIK income is incremental to our cash coupon. For example, we invest in litigation finance portfolios where we are first lien lender against a diverse mix of thousands of mass torque or single event cases. We are able to attain higher yields with attractive loan-to-value structures by matching flexible PIK timing features with strict cash flow sweeps upon collections from settlements. These investments represent approximately 17% of our PIK income.

正如我們在前幾個季度所討論的那樣，我們的年度 PIK 收入大部分戰略性地來自高度結構化的優先留置權投資，或者 PIK 收入對我們的現金息票來說是增量。例如，我們投資於訴訟融資組合，其中我們是針對數千起大規模扭矩或單一事件案件的多元化組合的第一留置權貸款人。透過將靈活的 PIK 時間特徵與結算收款時的嚴格現金流清掃相結合，我們能夠以有吸引力的貸款價值結構獲得更高的收益。這些投資約占我們 PIK 收入的 17%。

We have begun to experience increasing repayments from our litigation portfolios as the long court docket delays from COVID are starting to thaw and cases are being resolved, settled and distributed. Recent higher-profile cases that have settled include Gilead, [Zantech] and Astroworld. Approximately 68% of our PIK investments are on portfolio companies risk-rated either 1 or 2, and 96% risk-rated 3 or better. As a result, we believe this PIK income may not compare to restructured PIK driven by a deterioration in credit.

隨著新冠疫情造成的法庭案件長期拖延開始緩解，案件正在解決、和解和分配，我們從訴訟組合中獲得的償還金額開始增加。最近備受矚目的案件已解決，其中包括 Gilead、[Zantech] 和 Astroworld。我們的 PIK 投資中約有 68% 是針對風險評級為 1 或 2 的投資組合公司，96% 是針對風險評級為 3 或更高的投資組合公司。因此，我們認為，這種 PIK 收入可能無法與因信用惡化而重組的 PIK 相比。

Turning now to our Q2 investment and portfolio activity. Our Q2 investment activity consisted of add-on investment commitments and secondary purchases in existing portfolio companies, including American Clinical, Anthem Sports, [Aspira], Avison Young, Berlitz, Carestream Health, [Community Tree Services], David's Bridal, [Juice Plus], and [Securus Aventiv].

現在來談談我們第二季的投資和投資組合活動。我們第二季的投資活動包括對現有投資組合公司的附加投資承諾和二次收購，包括 American Clinical、Anthem Sports、[Aspira]、Avison Young、Berlitz、Carestream Health、[Community Tree Services]、David's Bridal、[Juice Plus] 和[Securus Aventiv]

During Q2, we made a total of approximately $41 million in investment commitments across 10 existing portfolio companies, of which $29 million was funded. Over 99% of the investment commitments were in the form of first lien loans. We also funded a total of $10 million of previously unfunded commitments.

第二季度，我們對 10 家現有投資組合公司做出了總計約 4,100 萬美元的投資承諾，其中實際到位資金 2,900 萬美元。超過 99% 的投資承諾都是以優先留置權貸款的形式。我們也為先前未獲資助的承諾提供了總計 1000 萬美元的資助。

We had sales and repayments totaling $88 million for the quarter, which consisted of the full repayment of the first lien loans for [American Lawyer Media, Nanos Bio], and (inaudible). We expect Q3 repayment activity to be consistent with or greater than the level we received in Q2 as we have already received the full repayments of [HW Locker and Rogers Mechanical] in early Q3, and expect several other companies to fully repay prior to the end of Q3. As a result of all of these activities, our net funded investments decreased by approximately $49 million during the quarter.

本季我們的銷售和還款總額為 8,800 萬美元，其中包括全額償還 [American Lawyer Media、Nanos Bio] 的第一留置權貸款，以及（聽不清楚）。我們預計第三季的還款活動將與第二季的還款水準保持一致或更高，因為我們已經在第三季初收到了 [HW Locker 和 Rogers Mechanical] 的全部還款，並且預計其他幾家公司將在第三季結束前全部還款。由於所有這些活動，我們本季的淨融資投資減少了約 4,900 萬美元。

As Michael referenced, our NAV increase during the quarter was driven primarily by net increases in the unrealized mark-to-market value of the portfolio as improved market conditions and reduced tariff concerns positively impacted comparable public company valuations and the overall projected macroeconomic outlook. Four notable portfolio companies for the quarter were Longview Power, David's Bridal, [Four Wall Entertainment] and our residual secured loans in 2 regional hospitals.

正如麥可所提到的，我們本季的淨值成長主要是由於投資組合未實現的市值淨增加，因為市場條件的改善和關稅擔憂的降低對可比上市公司估值和整體預測的宏觀經濟前景產生了積極影響。本季四家值得注意的投資組合公司是 Longview Power、David's Bridal、[Four Wall Entertainment] 以及我們在兩家地區醫院的剩餘擔保貸款。

Our equity investment in Longview Power increased primarily due to strong financial outlook, higher baseload capacity auction pricing and a projected stronger multiyear demand outlook for power production driven by data centers, AI and other consumer consumption.

我們對 Longview Power 的股權投資增加主要是由於強勁的財務前景、更高的基本負載容量拍賣價格以及預計資料中心、人工智慧和其他消費者消費推動的電力生產多年期需求前景更加強勁。

As we mentioned on previous quarterly calls, we expect to see significant quarter-to-quarter volatility in the marks of David's Bridal equity due to the larger overall relative size of our investment as well as the highly seasonal nature of the company's operations. The mark-to-market increase in David's Bridal for the quarter was driven primarily by improved comparable pulp trading multiples and the continued growth in David's Pearl marketplace business as a percentage of the total business mix.

正如我們在之前的季度電話會議上提到的那樣，由於我們的投資總體相對規模較大，並且該公司的運營具有很強的季節性，我們預計 David's Bridal 股權的市值將出現明顯的季度波動。本季 David's Bridal 的市價成長主要得益於可比較紙漿交易倍數的提高以及 David's Pearl 市場業務佔總業務組合的百分比的持續成長。

We experienced a mark-to-market decline in our first lien debt investment in 4Wall Entertainment, a leading full-service lighting, video and rigging company to the live entertainment and TV film production sectors. The decline was driven primarily by lower trailing earnings performance from the far-reaching industry effects of the 2023 Writers Guild strike and LA fire activity that greatly impacted TV and film production activities. The company expects rebounding trends to continue into 2026.

我們對 4Wall Entertainment 的優先留置權債務投資經歷了按市價計算的下降，4Wall Entertainment 是一家為現場娛樂和電視電影製作領域提供全方位服務的領先燈光、視頻和索具公司。下降的主要原因是 2023 年編劇協會罷工和洛杉磯火災對電視和電影製作活動產生了深遠的影響，導致往績獲利表現下降。該公司預計反彈趨勢將持續到 2026 年。

Lastly, we exited our residual secured loans to 2 hospitals within the CarePoint system. In conjunction with CarePoint's bankruptcy process, our lender group agreed to forward sell our remaining first lien interest at a discount to par plus accrued interest in exchange for an expedited cash payment as opposed to restructuring into new relatively small tranches with long-term maturities.

最後，我們將剩餘的擔保貸款轉讓給了 CarePoint 系統內的兩家醫院。結合 CarePoint 的破產程序，我們的貸款集團同意以低於票面價值加上應計利息的價格預售我們剩餘的第一留置權權益，以換取快速現金支付，而不是重組為新的相對較小的長期到期部分。

From a portfolio credit perspective, our nonaccruals increased from 1.2% of fair value in Q1 to 1.37% in Q2. This increase was due to the initial classification of our new Term Loan C investment in the Anthem Sports to nonaccrual this quarter. During the quarter, Anthem Sports completed a significant acquisition or CION co-led a new financing tranche. In conjunction with the acquisition, Anthem recapitalized its debt structure by the exchange and bifurcation of its previous term loans into new B and C tranches. The contractual interest component of the new tranche C consists of a nominal PIK payment and a MOIC to be paid upon exit or refinance. Given the deferred payment profile of the tranche C, we have elected to initially place the investment on nonaccrual immediately at the closing of the transaction, and intend to reevaluate based on the accreted value level of the tranche over time.

從投資組合信貸角度來看，我們的不提費用從第一季的公允價值的 1.2% 增加到第二季的 1.37%。這一增長是由於本季度我們對 Anthem Sports 的新定期貸款 C 投資初步歸類為不計提。在本季度，Anthem Sports 完成了一項重大收購，或者 CION 共同領導了一筆新的融資。在此次收購的同時，Anthem 透過將其先前的定期貸款交換和拆分為新的 B 類和 C 類貸款，對其債務結構進行了資本重組。新 C 部分合約利息部分包括名義 PIK 付款和退出或再融資時支付的 MOIC。鑑於 C 部分的延期付款情況，我們選擇在交易結束時立即將投資置於不計息狀態，並打算根據該部分隨時間的累積價值水平重新評估。

On an absolute basis, nonaccruals continue to be largely in line with historical experience, and we are pleased with the continued credit performance of our portfolio, particularly in the current interest rate environment. Overall, our portfolio remains defensive in nature, with approximately 85% in first lien investments. Over 98% of our portfolio remains risk rated 3 or better. Our risk-rated 3 investments, which are investments where we expect full payment, but it is spending more engagement time and/or have seen increased risk to the initial asset purchase, increased from approximately 10.3% in Q1 and to 11.6% in Q2, driven primarily by increased engagement time in several names due to transaction-related activity.

從絕對值來看，不提列項目仍然與歷史經驗基本一致，我們對投資組合的持續信貸表現感到滿意，特別是在當前的利率環境下。整體而言，我們的投資組合仍具有防禦性，其中約 85% 為第一留置權投資。我們投資組合中超過 98% 的風險評級仍為 3 或更高。我們的風險評級為 3 的投資，即我們預期全額付款的投資，但它花費了更多的參與時間和/或初始資產購買的風險增加了，從第一季的約 10.3% 增加到第二季度的 11.6%，主要是由於交易相關活動導致幾個名稱的參與時間增加。

I will now turn the call over to Keith.

現在我將把電話轉給基斯。

Okay. Thank you, Gregg, and good morning, everyone. During the second quarter, net investment income was $16.9 million or $0.32 per share compared to $19.3 million or $0.36 per share reported in the first quarter. Total investment income was $52.2 million during the second quarter as compared to $56.1 million reported during the first quarter. This is a decrease of $3.9 million or a decrease of about 7% quarter-over-quarter. The decrease in total investment income was driven primarily by a decrease in interest income as a result of certain investments being restructured during the quarter as well as lower transaction fees earned from origination and amendment activity when compared to the prior quarter.

好的。謝謝你，格雷格，大家早安。第二季度，淨投資收入為 1,690 萬美元，即每股 0.32 美元，而第一季為 1,930 萬美元，即每股 0.36 美元。第二季總投資收入為 5,220 萬美元，而第一季為 5,610 萬美元。與上一季相比，這一數字減少了 390 萬美元，降幅約為 7%。總投資收入的減少主要是由於本季度某些投資重組導致的利息收入減少，以及與上一季相比，發起和修改活動所獲得的交易費用減少。

On the expense side, total operating expenses were $35.3 million compared to $36.8 million reported in the first quarter. The decrease in operating expenses was primarily driven by lower advisory fees, a decrease in interest expense on our debt due to the benefits of repositioning our debt capital during the prior quarters and slightly lower G&A costs during the second quarter.

在費用方面，總營運費用為 3530 萬美元，而第一季報告為 3,680 萬美元。營運費用的下降主要是由於諮詢費用的降低、由於前幾季重新配置債務資本帶來的好處導致債務利息支出的減少以及第二季度一般及行政費用略有下降。

At June 30, we had total assets of approximately $1.9 billion and total equity or net assets of $759 million, with total debt outstanding of $1.1 billion and 52.3 million shares outstanding.

截至 6 月 30 日，我們的總資產約為 19 億美元，總股權或淨資產為 7.59 億美元，未償還債務總額為 11 億美元，流通股數為 5,230 萬股。

Our portfolio at fair value ended the quarter at $1.8 billion, and the weighted average yield on our debt and other income-producing investments at amortized cost was 12.4% at June 30, which is up 22 basis points from the first quarter.

截至本季末，我們的投資組合公允價值為 18 億美元，截至 6 月 30 日，我們的債務和其他創收投資的攤銷成本加權平均收益率為 12.4%，比第一季上升了 22 個基點。

At June 30, our NAV was $14.50 per share as compared to $14.28 per share at the end of March. The increase of $0.22 per share or 1.5% was primarily due to mark-to-market price increases in our portfolio, mostly due to price volatility from our equity book, and the accretive nature of our share repurchase program during the quarter.

截至 6 月 30 日，我們的資產淨值為每股 14.50 美元，而 3 月底為每股 14.28 美元。每股 0.22 美元或 1.5% 的成長主要是由於我們投資組合的以市價計算的價格上漲，這主要是由於我們的股票帳簿的價格波動，以及本季我們的股票回購計畫的增值性質。

We ended the second quarter with a strong and flexible balance sheet with over $1 billion in unencumbered assets, a strong debt servicing capacity, an interest coverage ratio of about 2x and solid liquidity. We had over $65 million in cash and short-term investments and over $100 million available under our credit facilities to further finance our investment pipeline and continue to support our existing portfolio companies.

我們在第二季結束時擁有強勁且靈活的資產負債表，無抵押資產超過 10 億美元，償債能力強勁，利息覆蓋率約 2 倍，流動性穩健。我們擁有超過 6,500 萬美元的現金和短期投資，以及超過 1 億美元的信貸額度，以進一步資助我們的投資管道並繼續支持我們現有的投資組合公司。

At June 30, we continue to have a healthy debt mix, with about 62% unsecured debt and 38% in senior secured with about 75% in floating rate. At the end of the quarter, our net debt-to-equity ratio was unchanged at 1.39x and the weighted average cost of our debt capital was about 7.5%, which is also unchanged from the first quarter as SOFR rates remained relatively flat.

截至 6 月 30 日，我們的債務結構仍然健康，其中無擔保債務約佔 62%，優先擔保債務約佔 38%，浮動利率債務約佔 75%。截至本季末，我們的淨負債權益比率保持不變，為 1.39 倍，債務資本的加權平均成本約為 7.5%，由於 SOFR 利率保持相對平穩，這一比率也與第一季持平。

The benefits of repositioning our debt capital during the prior quarters and the increase in the unsecured debt mix to over 60% of our total debt capital with about 75% in floating rate continues to bring additional strength and flexibility to our balance sheet while also creating a natural hedge to our overall market interest rate risk.

在前幾季重新配置我們的債務資本以及將無擔保債務組合增加到我們總債務資本的 60% 以上（其中浮動利率約佔 75%）的好處繼續為我們的資產負債表帶來額外的實力和靈活性，同時也為我們的整體市場利率風險創造了自然對沖。

Now turning to distributions. During the second quarter, we paid a base distribution to our shareholders of $0.36 per share, which is the same as the first quarter base distribution. The trailing 12-month distribution yield through the second quarter based on the average NAV was about 10%, and the trailing 12-month distribution yield based on the quarter-end market price was 15.6%.

現在轉向分佈。第二季度，我們向股東支付了每股 0.36 美元的基本分配，與第一季的基本分配相同。截至第二季度，基於平均資產淨值的過去 12 個月分配收益率約為 10%，基於季度末市場價格的過去 12 個月分配收益率為 15.6%。

As announced this morning, we declared our third quarter base distribution of $0.36 per share, which is the same as the second quarter. The third quarter base distribution will be paid on September 16 to shareholders of record as of September 2.

正如今天上午宣布的那樣，我們宣布第三季度基本分配為每股 0.36 美元，與第二季度相同。第三季基本分配將於 9 月 16 日支付給 9 月 2 日登記在冊的股東。

Okay. With that, I will now turn the call back to the operator who will open the line for questions.

好的。說完這些，我現在將電話轉回給接線員，接線員將開通熱線來回答問題。

(Operator Instructions) Erik Zwick, Lucid Capital Markets.

（操作員指示）Erik Zwick，Lucid Capital Markets。

Wanted to start with a question, I guess, on the pipeline and your expectations for originations in 3Q and kind of really nagging that up against just your commentary that repayments in 3Q could be equal or greater to 2Q. So just trying to get a sense of whether we might see the portfolio move a little bit lower in the 3Q or if you have some insight that potential for originations could offset those repayments?

我想先問一個問題，關於管道和您對第三季度發起額的預期，並且真的有點糾結於您的評論，即第三季度的還款額可能等於或大於第二季度。所以只是想了解我們是否會看到投資組合在第三季度略有下降，或者您是否認為發起的潛力可以抵消這些償還？

Erik, it's Gregg. I would say it's too early to tell, but we have a number of investment opportunities in the pipeline. I think it's a question of whether some of that slips over into Q4. It's always hard to judge when we're going to close things. But we are seeing some significant opportunity pipeline. So it will depend on the timing of both sides of the repayments plus the new investments. So it's hard to give you exact estimate right now.

艾瑞克，我是格雷格。我想說現在下結論還為時過早，但我們有很多投資機會正在醞釀中。我認為問題在於其中的一些因素是否會延續到第四季。我們總是很難判斷什麼時候該結束一切。但我們看到了一些重要的機會。因此，這將取決於雙方還款和新投資的時間。因此現在很難給你準確的估計。

No, I appreciate that, and I know it's hard to have 100% clarity. So maybe kind of given that and just kind of the -- looking at the earnings run rate here in 2Q, and I know you mentioned you expect some positive benefits in 3Q from the restructuring, but there are some, I guess, headwinds from the smaller investment portfolio. And if we look at the SOFR curve would suggest 100 basis points of compression from the rate environment over the next 12 months or so, and I believe about 90%, 91% of your portfolio is subject to floating rate. So maybe just kind of help me understand the path back to NII per share covering the declared dividend reach.

不，我很感激，而且我知道很難做到 100% 的清晰度。因此，也許考慮到這一點，並且只是看看第二季度的盈利運行率，我知道您提到您預計重組會在第三季度帶來一些積極效益，但我猜想，較小的投資組合會帶來一些阻力。如果我們看一下 SOFR 曲線，就會發現未來 12 個月左右利率環境將壓縮 100 個基點，我相信您的投資組合中約有 90% 到 91% 將受浮動利率影響。因此，也許只是幫助我了解如何回到每股 NII 來涵蓋已宣布的股息範圍。

Sure. So it's a combination of things. When you see SOFR, we're looking at the same curves, I think in an environment where SOFR is going down, we typically see spreads widen. They usually run inverse to each other. And also when there is more activity, so if there are more refinancings or more M&A activity picks up, we tend to generate significantly more investment income upfront in the form of fees and transaction fees and origination fees. So in the past, those 2 have historically have offset each other, at least in the directions they run. So we believe any cut and SOFR, we will see activity both uptick in fees and then there's typically an uptick in spreads.

當然。所以這是多種因素的綜合作用。當您看到 SOFR 時，我們看到的是相同的曲線，我認為在 SOFR 下降的環境中，我們通常會看到利差擴大。它們通常彼此相反。而且當有更多活動時，如果有更多的再融資或更多的併購活動增加，我們往往會以費用、交易費和發起費的形式預先產生更多的投資收入。因此，在過去，這兩者在歷史上是相互抵消的，至少在它們運行的方向上是如此。因此，我們相信，任何降息和 SOFR 都會導致費用上漲，利差通常會上漲。

Got it. So it sounds like it may be kind of maybe a multi-quarter path to get back to NII covering the dividend? Or do you think you can get back there in 3Q?

知道了。所以聽起來這可能是一種多季度路徑，以回到 NII 覆蓋股息？或者您認為您可以在第三季重返那裡嗎？

Yes. I think based on my prepared comments, the activity we're doing in Q3, we're hopeful we can get there this quarter. There comes a time that we don't think we're going to get back there. That's why we consider cutting the dividend.

是的。我認為根據我準備好的評論，我們在第三季度開展的活動，我們希望能夠在本季度實現目標。有時候我們會覺得我們無法回到過去。這就是我們考慮削減股利的原因。

And one last one, and I'll step aside and jump back in the queue. Just in terms of the share repurchase, the activity was quite a bit stronger in the 2Q than we had seen previously. And I know you've got the increased authorization. So just how should I think about your appetite or the pace of buyback over the next quarter or 2?

最後一個問題，我將退到一邊，重新回到隊列中。僅就股票回購而言，第二季的活動比我們之前看到的要強勁得多。我知道你已經獲得了更高的授權。那麼我該如何看待您未來一、兩個季度的購回意願或速度呢？

Yes. I think as we alluded to, this was a big quarter because of what we saw after tariffs were announced. I think it was in the programmatic buyback we have in place is meant to support the stock and we buy more, the more accretive it is as it trends down. We are hopeful that as we get our story out there, the stock will start to gain momentum, and you hopefully will not see as much buyback this quarter, but that does depend on the market.

是的。我認為，正如我們提到的那樣，由於關稅公佈後我們看到的情況，這是一個重要的季度。我認為，我們實施的計畫回購是為了支持股票，我們買的越多，隨著股價下跌，其增值作用就越大。我們希望，隨著我們的故事傳播開來，股票將開始獲得動力，並希望您本季不會看到太多的回購，但這確實取決於市場。

There are no further questions at this time. I now would like to turn the floor back over to Michael Reisner for any closing remarks.

目前沒有其他問題。現在我想把發言權交還給邁克爾賴斯納 (Michael Reisner) 來做結束語。

Great. We just hope thank everyone for joining us today. I hope everyone enjoys the rest of the summer. We look forward to coming back to you next quarter. Thank you, everyone.

偉大的。我們只是希望感謝大家今天的加入我們。我希望大家能享受剩下的夏天。我們期待下個季度再次與您聯繫。謝謝大家。

This does conclude today's teleconference. We thank you for your participation. You may disconnect your lines at this time.

今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路。