Cion Investment Corp (CION) 2025 Q3 法說會逐字稿

Greetings. Welcome to Cion Investment Corporation. Third quarter 2025 earnings call. (Operator Instruction). I will now turn the conference over to Charles Arestia, Managing Director and Head of Investor Relations.

問候。歡迎來到Cion投資公司。2025年第三季財報電話會議。（操作說明）現在我將把會議交給董事總經理兼投資者關係主管查爾斯·阿雷斯蒂亞。

Good morning and welcome to Cion Investment Corporation's Third quarter 2025 earnings conference call.

早安，歡迎參加Cion投資公司2025年第三季業績電話會議。

An earnings press release was distributed earlier this morning before market opened. A copy of the release, along with the supplemental earnings presentation is available on the company's website at www.scionbdc.com and in the investor resources section. It should be reviewed in conjunction with the company's Form-10Q filed with the SEC. As a reminder, this conference call is being recorded for replay purposes.

今天早上開盤前，公司發布了獲利新聞稿。新聞稿的副本以及補充收益簡報可在公司網站 www.scionbdc.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 表格進行審查。再次提醒，本次電話會議將會被錄音，以便回放。

Please note that today's conference call may contain forward-looking statements which are not guaranteed to future performance or results and involve a number of risks and uncertainties.

請注意，今天的電話會議可能包含前瞻性陳述，這些陳述並不保證未來的表現或結果，並涉及許多風險和不確定性。

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.

由於多種因素的影響，實際結果可能與前瞻性聲明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。

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

今天與我一起參加電話會議的有：Cion Investment Corporation 聯合執行長 Michael A. Reisner、總裁兼首席投資長 Gregg Bresner 以及財務長 Keith Franz。

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

接下來，我將把電話交給麥可·雷斯納。請繼續，邁克爾。

Thank you, Charles, and good morning everyone. Overall, we reported a strong Third quarter with continued NA appreciation and significant quarterly earnings.

謝謝你，查爾斯，大家早安。整體而言，我們第三季業績強勁，北美市場持續成長，季獲利顯著。

We reported $0.74 a share in net investment income for the third quarter, driven by robust transaction activity involving 20 of our portfolio companies with several fee events, new investments, and repayments.

第三季度，我們每股淨投資收益為 0.74 美元，這主要得益於我們投資組合中的 20 家公司開展的強勁交易活動，其中包括多項費用事件、新投資和還款。

As in past quarters, increased transaction activity tends to translate into higher earning quarters through increased transaction-related fees and other yield enhancement measures, such as MOIs, exit fees, and call protection.

與過去幾季一樣，交易活動的增加往往會透過增加交易相關費用和其他收益增強措施（如MOI、退出費和贖回保護）轉化為更高的收益季度。

During the Third quarter, we realized significant transaction-related accretion related to a portfolio company that is part of our opportunistic strategy.

第三季度，我們實現了與投資組合公司相關的重大交易收益，該公司是我們機會主義策略的一部分。

As we discussed on our prior call, we expected this transaction to close in the Third quarter, which contributed meaningfully to our net investment income.

正如我們在先前的電話會議中所討論的，我們預計這筆交易將在第三季完成，這將對我們的淨投資收益做出重大貢獻。

Excluding the income from this transaction, we still would have covered our base dividend for the quarter, which we believe reflects the ongoing earnings power of our portfolio.

即使不計入此交易的收入，我們仍然可以支付本季的基本股息，我們認為這反映了我們投資組合持續的獲利能力。

Greg will discuss this transaction in greater detail later on during the call, but I want to reiterate how we view our opportunistic strategy as a differentiated component of our overall earnings potential.

Greg 將在稍後的電話會議中更詳細地討論這筆交易，但我想重申一下，我們如何看待我們的機會主義策略，將其視為我們整體盈利潛力的一個差異化組成部分。

While these contributions can appear episodically, we consider these potential earnings to be a strategic component of our portfolio as we manage the business and the dividend over the longer-term.

雖然這些收益可能偶爾出現，但我們認為這些潛在收益是我們投資組合的策略組成部分，因為我們對業務和股息的管理著眼於更長遠的未來。

We appreciate that the timing of these contributions can be difficult to predict, which is why we provided the additional context on our prior earnings call.

我們理解這些貢獻的時間很難預測，因此我們在先前的財報電話會議上提供了更多背景資訊。

Going forward, we plan to provide comparable guidance on any similar anticipated transactional income to help manage investor expectations in the short-term, should conditions allow.

展望未來，如果條件允許，我們將對任何類似的預期交易收入提供類似的指導，以幫助管理投資者的短期預期。

As we have mentioned previously, we believe the volatility that these potential returns create tends to skew meaningfully to the upside versus consensus expectations, and thus should be evaluated on a longer-term perspective.

正如我們之前提到的，我們認為這些潛在收益所產生的波動性往往會顯著偏向高於市場普遍預期，因此應該從更長期的角度來看待。

Our net asset value increased 2.5% quarter over quarter to $14.86 up from $14.50 in the prior quarter, driven largely by fair value increases in our equity portfolio, with significant increases in Longview Power and Palmetto Solar.

我們的淨資產值環比增長 2.5%，從上一季的 14.50 美元增至 14.86 美元，這主要得益於我們股票投資組合的公允價值增長，其中 Longview Power 和 Palmetto Solar 的公允價值增長尤為顯著。

Following the upsize of our share repurchase program announced in the prior quarter, we were able to take advantage of a meaningful sector-wide sell-off in the BDC space in September to repurchase our shares in the open market, which remains (Inaudible) of the NA.

繼上一季宣布擴大股票回購計畫後，我們得以利用 9 月 BDC 領域的整體拋售潮，在公開市場回購我們的股票，這些股票仍屬於北美（聽不清楚）。

Overall, we repurchased approximately 330,000 shares at an average price of $9.86 per share during the quarter and have continued repurchasing shares in the fourth quarter.

本季度，我們以每股 9.86 美元的平均價格回購了約 330,000 股股票，並在第四季度繼續回購股票。

So far in the fourth quarter through last week, we have repurchased approximately 325,000 shares at an average price of $9.33 per share.

截至上週，第四季至今，我們已回購約 325,000 股股票，平均價格為每股 9.33 美元。

The largest contributor to our quarterly Nav growth was Longview Power, which continues to see tailwinds from stronger fundamental performance and broader sector growth from AI-driven digital infrastructure demand.

對我們季度淨利潤成長貢獻最大的是 Longview Power，該公司持續受益於更強勁的基本面表現以及人工智慧驅動的數位基礎設施需求帶來的更廣泛的行業成長。

Longview is now our largest equity position, and we are pleased with the underlying asset performance so far.

Longview 目前是我們最大的股權投資，我們對迄今為止的基礎資產表現感到滿意。

Looking ahead, we believe successful monetization of our equity positions will be a significant driver of the growth potential for our stock, and we are encouraged by recent trends on that front.

展望未來，我們相信成功變現我們的股權將成為我們股票成長潛力的重要驅動力，我們對這方面的近期趨勢感到鼓舞。

Despite broader headlines about problematic loans in the credit space, we believe our portfolio continues to perform well.

儘管信貸領域充斥著問題貸款的新聞，但我們相信我們的投資組合仍然表現良好。

Underlying LTM adjusted EBITDA growth trends in our portfolio companies in our debt portfolio remain in the mid to high single-digits, and our portfolio non-accruals remain relatively low at 1.75% of the portfolio at fair value. We added two names to non-accrual status this quarter, including a relatively small position in one of our very few second lien holdings.

我們債務投資組合中投資組合公司的基本 LTM 調整後 EBITDA 成長趨勢仍保持在個位數中高水平，並且我們投資組合的非應計項目仍然相對較低，按公允價值計算佔投資組合的 1.75%。本季我們將兩隻股票列入非應計狀態，其中包括我們為數不多的第二留置權持倉之一，持倉量相對較小。

Following our quarterly review process, we downgraded three loans, including the 2 new non-accruals I just mentioned, partially offset by upgrading 1 loan that was subsequently repaid at par at quarter end.

經過季度審查，我們下調了三筆貸款的評級，包括我剛才提到的兩筆新的非應計貸款，部分被升級的一筆貸款所抵消，該筆貸款隨後在季度末按面值償還。

Overall, investments risk rated four or five comprise approximately 2.4% of the portfolio at fair value.

整體而言，風險等級為四級或五級的投資約佔投資組合的公允價值的 2.4%。

I'm also excited to announce today a shift in our timing of paying-based distributions to our shareholders, beginning in January 2026.

今天我很高興地宣布，我們將從 2026 年 1 月起調整向股東發放股利的時間。

We will be converting to paying base distributions from quarterly to monthly.

我們將把基本分紅的支付頻率從季度改為月度。

We are pleased with the continued performance of our portfolio and believe that shareholders will appreciate the increased frequency of our base distributions going forward.

我們對投資組合的持續表現感到滿意，並相信股東們會欣賞我們未來增加基本分紅的頻率。

We've also declared a base distribution of $0.36 per share for the fourth quarter of 2025, the same amount as the third quarter, and Keith will discuss this in more detail.

我們也宣布 2025 年第四季每股派發 0.36 美元的基本股息，與第三季相同，Keith 將對此進行更詳細的討論。

In summary, we believe that this was a strongholder for Cion and a reinforcement of our differentiated strategy, which pairs traditional first lean focused direct lending with an opportunistic capability to enhance overall returns over the longer-term.

總而言之，我們認為這是 Cion 的一項重要舉措，也是對我們差異化策略的強化，該策略將傳統的優先精簡型直接貸款與把握機會的能力相結合，以提高長期整體回報。

We have seen a noticeable pick up in repayment activity in recent quarters, which allows us to redeploy into our active pipeline and allows us to recapture incremental fee income as the portfolio turns over.

近幾個季度，我們看到還款活動大幅增加，這使我們能夠將資金重新投入到我們活躍的業務流程中，並隨著投資組合的更替，重新獲得增量費用收入。

I'm especially proud of Scion's performance amidst the highly competitive operating environment.

在競爭激烈的市場環境下，Scion 的表現尤其令我感到自豪。

There's certainly no shortage of press out there today on the headwinds of spread compression, looser lender protections, and credit concerns driven by recent high profile bankruptcies.

如今，關於利差收窄、貸款機構保護措施放鬆以及近期備受矚目的破產事件引發的信貸擔憂等不利因素，媒體報道鋪天蓋地。

We have no direct exposure to these names or sectors. We believe that our results today validate the diligent work of our team and con continue to source and execute on differentiated opportunities in a challenging environment.

我們並未直接投資這些公司或產業。我們相信，今天的成果證明了我們團隊的辛勤工作，我們將繼續在充滿挑戰的環境中尋找並掌握差異化的機會。

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

接下來，我將把電話交給格雷格，讓他來討論我們本季的投資組合和投資活動。

Thank you, Michael, and good morning everyone. We've remained highly selective with new portfolio company investments in Q3 as we are highly active and focused on transaction opportunities within our portfolio companies.

謝謝你，邁克爾，大家早安。第三季度，我們對新的投資組合公司投資仍然保持高度選擇性，因為我們非常積極地專注於投資組合公司內部的交易機會。

We were also effectively at full investment during most of the quarter and worked to maintain our targeted net leverage range of 1.25times to 1.3 times while simultaneously balancing the timing of expected investment pipeline investments versus repayment amounts. Most of our exiting repayments occurred towards the end of the quarter.

在本季大部分時間裡，我們的投資金額實際上都達到了飽和狀態，我們努力將淨槓桿率維持在 1.25 倍至 1.3 倍的目標範圍內，同時平衡預期投資項目與償還金額的時間安排。我們的大部分退出還款都發生在季度末。

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 looser credit documents in the market.

本季度，由於 2024 年創紀錄的私募債務融資的持續影響仍然導致市場上的票息差降低、槓桿水平升高和信貸文件寬鬆，我們基於信用和定價方面的考慮，放棄了對新投資組合公司潛在投資的更高比例。

As Michael discussed in his remarks, market conditions continue to rebound in Q3 as stronger economic indicators and reduced concerns regarding tariffs have boosted overall economic sentiment and equity markets. We focused our Q3 activities on incremental opportunities with our own portfolio companies as we had significant transaction and fee events with over 20 of our portfolio companies this quarter.

正如麥可在演講中所討論的那樣，隨著經濟指標走強和對關稅擔憂的減少，市場狀況在第三季度繼續反彈，提振了整體經濟情緒和股市。第三季度，我們把工作重點放在了與自有投資組合公司共同尋求增量機會上，因為本季度我們與 20 多家投資組合公司發生了重大交易和費用事件。

We believe our continued investment selectivity and proportional deployment levels helped us to invest in first lean loans at higher spreads when compared to the overall private and public loan markets during the quarter. The weighted average yields for our funded first lean investments for the quarter based on our investment costs were the equivalent of so far 7% for our direct strategy and so far 14% for our opportunistic strategy investments. As we discussed in previous quarters, the majority of our annual PIC income is strategically derived from highly structured first lead investments or where PIC income is incremental to our cash coupon.

我們相信，與本季整體私人和公共貸款市場相比，我們持續的投資選擇和相應的部署水準幫助我們以更高的利差投資於首批低利率貸款。根據我們的投資成本，本季我們已註資的首批精實投資的加權平均收益率，迄今為止，直接投資策略的收益率相當於 7%，機會投資策略的收益率相當於 14%。正如我們在前幾個季度討論的那樣，我們年度 PIC 收入的大部分戰略性地來自高度結構化的首輪投資，或者 PIC 收入是現金票息之外的增量。

Together these categories represented approximately 71% of our total pick investments in Q3. Approximately 67% of our PI investments are in portfolio companies risk rated either one or two, and 98% risk rated three or better. As a result, we believe this pick income may not compare to restructured pick driven by a deterioration in credit.

這些類別加起來約占我們第三季精選投資總額的 71%。我們約 67% 的 PI 投資投向風險評級為 1 或 2 的投資組合公司，98% 的投資組合公司風險評級為 3 或更高。因此，我們認為這種精選收益可能無法與因信用惡化而重組的精選收益相提並論。

Turning now to our Q3 investment and portfolio activity. Our Q3 investment activity consisted of a co-lead investment in one doom portfolio company, metric, and incremental add-on investments and secondary purchases in existing portfolio companies including Abbess and Young, Cenex, Community Tree Services, David's Bridle, Invisible Boats, INW, ID Hill, Lab Gear, Juice Plus, Precision Medical, StatinMed, and Technical Air Support.

現在來看看我們第三季的投資和投資組合活動。我們第三季的投資活動包括對一家前景黯淡的投資組合公司進行聯合領投，以及對現有投資組合公司進行增量追加投資和二級市場收購，這些公司包括 Abbess and Young、Cenex、Community Tree Services、David's Bridle、Invisible Boats、INW、ID Hill、Labrec、Juice Plus、David's Bridle、Invisible Boats.

During Q3 we made a total of approximately $73 million in investment commitments across one new and 12 existing portfolio companies, of which 65 million was funded.

第三季度，我們對一家新投資組合公司和 12 家現有投資組合公司共投入約 7,300 萬美元，其中 6,500 萬美元已到位。

We also funded a total of 8 million of previously unfunded commitments.

我們也為先前未獲得資金支持的承諾提供了總計 800 萬美元的資金。

We had sales and repayments totaling $151 million for the quarter, which consisted of the full repayment of the first lien loans for American Family Care, Healthycommerce, HW Lochner, Key Impact, Lemans, Nova Compression, and Rogers Mechanical.

本季我們的銷售額和還款總額為 1.51 億美元，其中包括全額償還 American Family Care、Healthycommerce、HW Lochner、Key Impact、Lemans、Nova Compression 和 Rogers Mechanical 的第一個留置權貸款。

As a result of all these activities, our net funded investments decreased by approximately 69 million during the quarter.

由於上述所有活動，本季我們的淨投資額減少了約 6,900 萬美元。

As Michael referenced, our NA increase during the quarter was driven primarily by net increase 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.

正如麥可所提到的，本季我們的淨資產成長主要得益於投資組合未實現市值淨成長，因為市場狀況改善和關稅擔憂減少對可比上市公司估值和整體預期宏觀經濟前景產生了積極影響。

Four notable portfolio companies for the quarter were Longview Power, Palmetto Solar, Juice Plus, and Anthem Sports. The value of our equity investments in Longview Power and Palmetto Solar increased due to the strong fundamental performance and projected financial outlook for these companies, as Michael mentioned, Scion co-led the consensual restructuring and refinancing of Juice Plus during the quarter, which resulted in significant realized earnings for Scion and repositioned Juice Plus to fuel product growth and strategic investments. Our investment in Juice Plus represents an illustrative example of our opportunistic first lean investment strategy where we acquire lightly syndicated first lean loan tranches in quality companies at significant discounts to par due to technical reasons where we expect to have active roles in the processes. That drive the refinancing or restructuring of the investments. Historically, we have been able to realize healthy earnings on our firstly restructured and recapitalized transactions as our realized weighted average total recoveries have been in excess of the amortized cost of these investments at the time of the restructuring. Additional examples include our investments in Longview Power, Yakatt, Heritage Power, and Dayton Superior.

本季值得關注的四家投資組合公司分別是 Longview Power、Palmetto Solar、Juice Plus 和 Anthem Sports。正如邁克爾所提到的，由於 Longview Power 和 Palmetto Solar 這兩家公司強勁的基本面表現和預計的財務前景，我們對它們的股權投資價值有所增長。此外，Scion 在本季共同主導了 Juice Plus 的協商重組和再融資，這為 Scion 帶來了可觀的已實現收益，並使 Juice Plus 重新定位，以推動產品成長和策略投資。我們對 Juice Plus 的投資是我們機會主義的首筆精益投資策略的一個典型例子，即由於技術原因，我們以遠低於面值的價格收購優質公司中輕度銀團化的首筆精益貸款部分，並期望在這些過程中發揮積極作用。這便會推動投資的再融資或重組。從歷史上看，我們首次進行重組和資本重組的交易都實現了健康的收益，因為我們實現的加權平均總回收額超過了重組時這些投資的攤銷成本。其他例子包括我們對 Longview Power、Yakatt、Heritage Power 和 Dayton Superior 的投資。

We experienced a mark to market decline in our first lean debt investments inthem Sports, which were driven primarily by the less than expected ramping of the revenue for the quarter. The company continues the transition from a subscription-based to an advertising-driven revenue model and as in the process of integrating a recent strategic acquisition completed in the second quarter.

我們在體育領域的首批精益債務投資遭遇了市值下降，這主要是由於該季度收入成長低於預期。該公司繼續從訂閱制收入模式向廣告驅動型收入模式轉型，並且正在整合第二季完成的一項策略性收購。

From a portfolio credit perspective, our non-accruals increased from 1.3% of fair value in Q2 to 1.75% in the third quarter. This increase was driven by the addition of two new names to non-accrual. Our firstly an investment in Trademark Global, and secondly an investment in Aspira.

從投資組合信貸的角度來看，我們的非應計項目佔公允價值的比例從第二季的 1.3% 增加到第三季的 1.75%。這一增長是由於非應計項目中新增了兩個名字。我們首先投資了 Trademark Global，其次投資了 Aspira。

Trademark Global's operations have been materially impacted by tariffs in 2025 as the company continues to diversify its sourcing away from China. While the company is executing a comprehensive plan to rebuild its earnings, we have placed on non-accrual and will reassess based on the company's execution of that plan.

Trademark Global 的營運在 2025 年受到了關稅的重大影響，因為該公司正在繼續將其採購來源從中國多元化。雖然該公司正在執行一項全面的計劃來重建其盈利能力，但我們已將其列入非應計名單，並將根據該公司執行該計劃的情況重新評估。

Aspire is rolling out a new generation of subscription products to its customers, which has impacted short-term performance. During the quarter, we sold our second lead investment Securis, which removed the name from non-accrual. On an absolute basis, non-accruals continue to be in line with historical experience, and we are pleased with the continued credit performance of our portfolio, particularly in the current interest rate environment.

Aspire 正在向其客戶推出新一代訂閱產品，這影響了短期業績。本季度，我們出售了第二筆領投投資 Securis，這使得 Securis 從非應計名單中移除。從絕對值來看，非應計項目仍然符合歷史經驗，我們對投資組合的持續信貸表現感到滿意，尤其是在當前的利率環境下。

Overall our portfolio remains defensive in nature with approximately 80% in first lead investments. Approximately 98% of our portfolio remains risk rated 3% or better. Our risk graded 3 investments, which are investments where we expect full repayment but are either spending more engagement time or have seen increased risk since the initial asset purchase decrease from approximately 11.6% in Q2 to 10.4% in Q3. I'll now turn the call over to Keith.

整體而言，我們的投資組合仍以防禦為主，其中約 80% 為首輪領投投資。我們投資組合中約 98% 的資產風險評級仍為 3% 或更低。我們風險等級為 3 的投資，即我們預期能夠全額償還的投資，但要么投入了更多時間，要么自初始資產購買以來風險有所增加的投資，從第二季度的約 11.6% 下降到第三季度的 10.4%。現在我將把電話交給基斯。

Okay, thank you, Gregg, and good morning, everyone.

好的，謝謝你，格雷格，大家早安。

During the third quarter, net investment income was $38.6 million or $0.74 per share compared to $16.9 million or $0.32 per share reported in the second quarter.

第三季淨投資收益為 3,860 萬美元，即每股 0.74 美元，而第二季報告的淨投資收益為 1,690 萬美元，即每股 0.32 美元。

Total investment income was 78.7 million during the third quarter as compared to 52.2 million reported during the second quarter. This is an increase of 26.5 million or an increase of about 51% quarter over quarter.

第三季總投資收益為7870萬，而第二季為5220萬。這比上一季增加了2650萬，增幅約為51%。

The increase in total investment income was driven primarily by higher interest income earned as a result of certain investments being restructured and other yield enhancing prepayment fees recorded during the quarter, as well as higher transaction fees earned from origination and amendment activity when compared to the prior quarter.

總投資收益的成長主要得益於某些投資重組帶來的利息收入增加，以及本季記錄的其他提高收益的提前還款費用，此外，與上一季相比，發起和修改活動產生的交易費用也更高。

On the expense side, total operating expenses were 40.1 million compared to 35.3 million reported in the second quarter.

在支出方面，總營運支出為 4,010 萬，而第二季報告的支出為 3,530 萬。

The increase in operating expenses was primarily driven by higher advisory fees due to higher investment income earned during the quarter.

營運費用的增加主要是由於本季投資收益增加，導致諮詢費上漲。

At September 30th, we had total assets of approximately $1.9 billion and total equity or net assets of $773 million with total debt outstanding of about $1.1 billion.52 million shares outstanding.

截至 9 月 30 日，我們的總資產約為 19 億美元，總權益或淨資產為 7.73 億美元，未償債務總額約為 11 億美元，流通股數為 52 萬股。

Our portfolio at fair value ended the quarter at $1.7 billion and the weighted average yield on our debt and other income producing investments at advertised cost was 10.9% at September 30th.

截至 9 月 30 日，我們以公允價值計算的投資組合價值為 17 億美元，以公允價值計算的債務和其他收益型投資的加權平均收益率為 10.9%。

Our pick income for the 3rd quarter was largely impacted by one of our portfolio companies in connection with its amended loan facility. The amount capitalized was about 5 million for the quarter, and excluding this transaction, our pick as a percentage of total income for the third quarter would have been lower and in the mid-teens level.

第三季我們的精選收益很大程度上受到了我們投資組合中的一家公司因其貸款安排的修訂而受到的影響。本季資本化金額約為 500 萬美元，如果排除這筆交易，我們第三季選擇佔總收入的百分比會更低，在 15% 左右。

At September 30th, our NAB was $14.86 per share as compared to $14.50 per share at the end of June.

截至 9 月 30 日，我們的 NAB 股價為每股 14.86 美元，而 6 月底的股價為每股 14.50 美元。

The increase of $0.36 per share or 2.5% was due to mark to market price increases in our portfolio, mostly due to price increases from our equity book and the creative nature of a share repurchase program during the quarter.

每股上漲 0.36 美元或 2.5%，是由於我們投資組合的市值上漲，主要是由於我們的股票帳面價格上漲以及本季股票回購計畫的創新性。

We ended the 3rd quarter with a strong and flexible balance sheet with over $1 billion in uncovered assets, a strong debt servicing capacity, an interest coverage ratio of about 2 times, and solid liquidity.

第三季末，我們擁有強勁且靈活的資產負債表，未覆蓋資產超過 10 億美元，償債能力強勁，利息保障倍數約 2 倍，流動性良好。

We had over $105 million in cash and short-term investments and another $100 million available under our credit facilities to further finance our investment pipeline and continue to support our existing portfolio companies.

我們擁有超過 1.05 億美元的現金和短期投資，另有 1 億美元可透過我們的信貸額度進一步為我們的投資項目提供資金，並繼續支持我們現有的投資組合公司。

At September 30th, we continue to have a healthy debt mix with about 63% in unsecured debt and 37% in senior secured bank debt. About 75% of our debt capital is in floating rate, which aligns well and creates a natural hedge with our mostly floating rate investment portfolio.

截至 9 月 30 日，我們的債務結構依然健康，其中約 63% 為無擔保債務，37% 為優先擔保銀行債務。我們約 75% 的債務資本是浮動利率的，這與我們主要為浮動利率的投資組合非常契合，並形成了一種天然的對沖。

A well diversified debt structure is focused on unsecured debt in order to maximize our balance sheet flexibility.

我們採用多元化的債務結構，專注於無擔保債務，以最大限度地提高資產負債表的靈活性。

And at the same time creates a strong buffer for our financial covenants.

同時，也為我們的財務契約創造了強而有力的緩衝。

At the end of the quarter, our net debt to equity ratio decreased to 1.28 times from 1.39 times at the end of June.

截至本季末，我們的淨負債權益比率從 6 月底的 1.39 倍下降至 1.28 倍。

And the weighted average cost of our debt capital was about 7.5%, which is unchanged from the second quarter.

我們的債務資本加權平均成本約為 7.5%，與第二季持平。

We currently manage our portfolio and leverage levels on a net of cash basis as all of our outstanding debt is currently non-callable and at their minimums.

目前，我們以現金淨額為基礎管理投​​資組合和槓桿水平，因為我們所有未償債務目前均不可贖回且處於最低水平。

Now turning to distributions during the third quarter, we paid a base distribution to our shareholders of $0.36 per share, which is the same.

現在來看第三季的分紅情況，我們向股東支付了每股 0.36 美元的基本分紅，與上一季持平。

12 month distribution yield based on the quarter end market price was about 15.7%. As announced this morning, we declared a fourth quarter base distribution of $0.36 per share, which is the same as the 3rd quarter. The 4th quarter base distribution will be paid on December 15th to shareholders a record as of December first.

根據季度末市場價格計算，12 個月的分配收益率約為 15.7%。正如今天早上宣布的那樣，我們宣布第四季度基本分紅為每股 0.36 美元，與第三季度相同。第四季基本分紅將於12月15日支付給12月1日登記在冊的股東。

And finally, we also announced this morning that we will be changing the timing of paying base distributions to our shareholders from quarterly to monthly beginning in January 2026 to better align with our shareholder base.

最後，我們今天早上也宣布，從 2026 年 1 月起，我們將把向股東支付基本股利的時間從季度改為月度，以便更好地與我們的股東群體保持一致。

Monthly based distributions will continue to be declared quarterly in advance.

按月分配的款項將繼續提前按季公佈。

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

好的，現在我將把電話轉回給接線員，他會開通線路回答問題。

(Operator Instruction) (Inaudible).

（操作說明）（聽不清楚）。

Thank you. Good morning. First question, maybe for Keith, and I appreciate all of the commentary kind of walking through the puts and takes there and the, interest income for the quarter. Curious if you could kind of break it down either in terms of dollar terms or percentage terms and, what of that $51 million what came from kind of regular ongoing interest payments and what was more from the periodic in non-recurring events.

謝謝。早安.第一個問題，或許應該問 Keith，我很感謝你對本季買賣交易和利息收入所做的所有評論。我很想知道您能否用美元或百分比來具體說明一下，這 5100 萬美元中，哪些來自定期的利息支付，哪些來自非經常性事件。

Yeah, I would think that, on a baseline basis, we kind of had interest income similar to what we recorded in Q2, maybe slightly up, and then the rest of it came from, the restructured investments that we experienced during the quarter.

是的，我認為，從基準來看，我們的利息收入與第二季記錄的大致相同，可能略有成長，其餘部分則來自我們在本季進行的重組投資。

Okay, that's helpful, and maybe a similar line of questioning on the, pick income in the quarter you noted the $5 million of capitalized, cost, so that that was, more one time in nature is that the correct interpretation that that $5 million part.

好的，這很有幫助。或許可以就季度收入提出類似的問題，您提到了 500 萬美元的資本化成本，所以這更像是一次性支出，那麼對這 500 萬美元部分的正確解釋是什麼？

I don't know if I'd necessarily use that vernacular, but yes, that was a pick event that occurred, uniquely in this quarter.

我不知道是否應該使用那種說法，但沒錯，那是本季獨有的一次選秀事件。

Okay, and then so the remaining call it $12 million or so, could you provide a breakout of that part? What is structured versus kind of credit related because I know you've got a fair amount that's, structured by design.

好的，那麼剩下的部分，大概是 1200 萬美元左右，您能提供這部分的明細嗎？什麼是結構化貸款，什麼是信貸相關貸款？因為我知道你有很多貸款是按計劃結構化的。

Yeah, no different than, the pool that Greg had mentioned on his comments that the majority of that is.

是的，和格雷格在評論中提到的游泳池沒什麼區別，那大部分都是游泳池。

Got it. Okay, thanks. And then just curious, as you, seem fairly optimistic about the originations, Outlook, and just curious if you could provide any commentary on the pipeline in terms of, the size relative to maybe, 3 months ago and also just the quality of what you're seeing in terms of, structure and yield, as you look forward to, future activity.

知道了。好的，謝謝。我很好奇，您似乎對貸款發放和前景相當樂觀，所以想請您就目前的貸款規模（與三個月前相比）以及貸款結構和收益率等方面提供一些評論，並展望一下未來的貸款活動。

Hi, Eric. It's Gregg. Definitely more robust than we've seen, this year. More activity. It's broader based.

嗨，艾瑞克。是格雷格。絕對比我們今年看到的要強勁得多。更多活動。它的基礎更廣泛。

There's definitely been a pickup in M&A.

併購活動確實有所回升。

Which, is different from the first two quarters, and I would say in terms of, spreads and things like that, pretty consistent with what we've done in the past. I would say we've definitely, what I would call traditional middle market type spreads.

這與前兩個季度有所不同，就價差等方面而言，我認為與我們過去所做的相當一致。我認為我們絕對擁有我所謂的傳統中階市價差。

Excellent thank you that's all for me right now thanks for taking my questions.

太好了，謝謝。我暫時就這些問題，感謝您回答我的問題。

Okay.

好的。

(Operator Instruction).

（操作說明）

We appreciate everyone taking time out of their day to join us, and we look forward to communicating with you early next year.

感謝大家抽空參加，我們期待明年年初與大家交流。

Thank you, everyone. Take care.

謝謝大家。小心。

(Operator Instruction).

（操作說明）