Capital Southwest Corp (CSWC) 2025 Q2 法說會逐字稿

Thank you for joining today's Capital Southwest second quarter fiscal year 2025 earnings call. Participating on the call today are Bowen Diehl, Chief Executive Officer; Michael Sarner, Chief Financial Officer; Josh Weinstein, Chief Investment Officer, and Chris Rehberger, Executive Vice President of Finance.

感謝您參加今天的 Capital Southwest 2025 財年第二季財報電話會議。今天參加電話會議的有執行長 Bowen Diehl、財務長 Michael Sarner、首席投資長 Josh Weinstein 和財務執行副總裁 Chris Rehberger。

I will now turn the call over to Chris Rehberger.

現在我將電話轉給 Chris Rehberger。

Thank you. I would like to remind everyone that in the course of this call, we will be making certain forward-looking statements. These statements are based on current conditions, currently available information, and management's expectations, assumptions, and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from such statements.

謝謝。我想提醒大家，在本次電話會議中，我們將做出一些前瞻性的陳述。這些聲明是基於當前狀況、目前可用的資訊以及管理層的期望、假設和信念。它們並非對未來結果的保證，並且受多種風險、不確定性和假設的影響，可能導致實際結果與此類陳述有重大差異。

For information concerning these risks and uncertainties, see Capital Southwest’s publicly available filings with the SEC. The company does not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances, or any other reason after the date of this press release, except as required by law.

有關這些風險和不確定性的信息，請參閱 Capital Southwest 向美國證券交易委員會提交的公開文件。除法律要求外，本公司不承擔更新或修改任何前瞻性聲明的義務，無論是由於新資訊、未來事件、情況變化或本新聞稿發布日期後的任何其他原因。

I will now hand the call off to our Chief Executive Officer, Bowen Diehl.

我現在將電話轉交給我們的執行長 Bowen Diehl。

Thanks, Chris. And thank you, everyone, for joining us for our second quarter fiscal year 2025 earnings call. We are pleased to be with you this morning and look forward to giving you an update on the performance of our company and our portfolio as we continue to diligently execute our investment strategy as stewards of your capital.

謝謝，克里斯。感謝大家參加我們的 2025 財年第二季財報電話會議。我們很高興今天早上能和你們在一起，並期待向你們通報我們公司和投資組合的業績，我們將繼續勤勉地執行我們的投資策略，作為你們資金的管理者。

Throughout our prepared remarks, we will refer to various slides in our earnings presentation, which can be found in the investor relations section of our website at www.capitalsouthwest.com. You will also find our quarterly earnings release issued last evening on our website.

在我們的準備演講中，我們將引用收益報告中的多張投影片，這些投影片可在我們網站 www.capitalsouthwest.com 的投資者關係板塊找到。您也可以在我們網站上找到昨晚發布的季度收益報告。

We'll now begin on slide 6 of the earnings presentation, where we have summarized some of the key performance highlights for the quarter. During the quarter, we generated pre-tax net investment income of $0.64 per share, which fully covered our regular dividend of $0.58 per share and our supplemental dividend of $0.06 per share paid during the quarter. Portfolio earnings continue to be strong, and as of the end of the quarter, we estimate that our undistributed taxable income was $0.64 per share.

我們現在從收益報告的第 6 張投影片開始，其中我們總結了本季的一些關鍵業績亮點。本季度，我們產生了每股 0.64 美元的稅前淨投資收益，完全涵蓋了本季支付的每股 0.58 美元的常規股息和每股 0.06 美元的補充股息。投資組合收益持續保持強勁，截至本季末，我們估計未分配應稅收入為每股 0.64 美元。

As we look forward to the December quarter, we are pleased to announce that our board of directors has declared a regular dividend of $0.58 per share for the quarter ended December 31, 2024. Our board has also declared a supplemental dividend of $0.05 per share, bringing total dividends declared for the December quarter to $0.63 per share.

展望 12 月季度，我們很高興地宣布，董事會宣布截至 2024 年 12 月 31 日的季度定期股息為每股 0.58 美元。我們的董事會也宣布派發每股 0.05 美元的補充股息，使 12 月季度宣布的股息總額達到每股 0.63 美元。

Deal flow in the lower middle market continues at a healthy pace this quarter, while competition in the market for both bank and non-bank lenders for quality deals continues to be fierce. This has resulted in tighter spreads on quality new deals, as well as slower net portfolio growth over the last two quarters for Capital Southwest as we have maintained our credit discipline.

本季中低端市場的交易流量持續保持健康的速度，而銀行和非銀行貸款機構在優質交易方面的市場競爭仍然非常激烈。由於我們維持了信貸紀律，這導致優質新交易的利差縮小，並且 Capital Southwest 過去兩個季度的淨投資組合成長放緩。

That said, our current backlog of deals in which we have either signed up or have received an indication that we are likely to win would indicate that net portfolio growth should be very strong in the December quarter. The deals we are currently underwriting continue to have loan-to-value levels ranging from 35% to 50%, resulting in significant equity capital cushions below our debt, and reasonable leverage levels of around three times debt to EBITDA.

也就是說，我們目前已簽署或收到可能獲勝跡象的交易積壓表明，12 月季度的淨投資組合成長應該非常強勁。我們目前承銷的交易的貸款價值比仍然在 35% 至 50% 之間，這使得我們的股權資本緩衝顯著低於債務，而合理的槓桿水平約為債務與 EBITDA 之比的三倍。

Deal closings in the lower middle market have always been lumpy from quarter to quarter, and that is certainly the case these past few quarters.

中低端市場的交易成交量每季都波動較大，過去幾季的情況更是如此。

Over the past decade, our team has done an excellent job generating attractive returns for our shareholders in all competitive environments. And I am highly confident we will continue our track record in the current environment. Josh Weinstein will provide additional color on the market, our investment activity, and the performance of our portfolio later in our prepared remarks.

在過去的十年中，我們的團隊在所有競爭環境中都表現出色，為股東創造了豐厚的回報。我非常有信心，在當前環境下，我們將繼續保持良好的表現。喬許溫斯坦 (Josh Weinstein) 稍後將在我們準備好的發言中提供有關市場、我們的投資活動以及我們投資組合的表現的更多細節。

Portfolio activity during the quarter consisted of $89.8 million in new commitments to four new portfolio companies and 11 existing portfolio companies, as add-on financing continued to be an important and highly attractive source of origination for us. Portfolio growth for the quarter was offset by $45.2 million in proceeds from four debt prepayments, which generated a weighted average realized IRR of 14.5%.

本季的投資組合活動包括向 4 家新投資組合公司和 11 家現有投資組合公司提供 8,980 萬美元的新承諾，因為附加融資仍然是我們一個重要且極具吸引力的資金來源。本季的投資組合成長被四筆債務預付所得的 4,520 萬美元所抵消，這產生了 14.5% 的加權平均實現 IRR。

On the capitalization front, during the quarter, we increased our ING-led corporate credit facility to $485 million from $460 million with the addition of one new bank lender. Additionally, we raised approximately $21 million in gross equity proceeds during the quarter through our equity ATM program at a weighted average share price of $24.49 per share, or 148% of the prevailing NIV per share. We remained diligent in ensuring that we have strong balance sheet liquidity while also funding a meaningful portion of our investment activity with accretive equity issuances.

在資本化方面，本季度，我們增加了一個新的銀行貸款機構，將 ING 主導的企業信貸額度從 4.6 億美元增加到 4.85 億美元。此外，本季我們透過股權 ATM 計畫籌集了約 2,100 萬美元的總股權收益，加權平均股價為每股 24.49 美元，相當於每股現行 NIV 的 148%。我們始終勤勉地確保我們擁有強大的資產負債表流動性，同時透過增值股權發行為我們投資活動的很大一部分提供資金。

We continue to maintain a conservative mindset to both BDC leverage and the balance sheet liquidity. Balance sheet liquidity at Capital Southwest remains robust, which Michael will provide additional commentary on in a moment.

我們繼續對 BDC 槓桿和資產負債表流動性保持保守的態度。西南資本的資產負債表流動性依然強勁，邁克爾稍後將對此提供補充評論。

Managing leverage to the lower end of our target range while ensuring strong balance sheet liquidity affords us the ability to continue to invest in new platform companies as well as provide financing for both growth capital and add-on acquisitions for our existing portfolio companies. We believe this strategy allows us to continue to grow our balance sheet through any capital markets environment, while also maintaining the flexibility to opportunistically repurchase our stock if it were to trade meaningfully grow NAV.

將槓桿率控制在目標範圍的低端，同時確保強勁的資產負債表流動性，使我們能夠繼續投資新的平台公司，並為現有投資組合公司的成長資本和附加收購提供融資。我們相信，這項策略使我們能夠在任何資本市場環境下繼續擴大我們的資產負債表，同時也能保持靈活性，以便在交易時適時回購我們的股票，從而顯著提高資產淨值。

On slide 7 and 8, we illustrate our continued track record of producing steady dividend growth consistent dividend coverage and solid value creation. Since the launch of our credit strategy almost 10 years ago, we have increased our quarterly dividend -- regular dividend 29 times and have never cut the regular dividend, all while maintaining strong coverage of our regular dividend with pre-tax net investment income.

在投影片 7 和 8 中，我們展示了我們持續實現穩定的股息成長、一致的股息覆蓋率和穩健的價值創造的記錄。自從近 10 年前推出信貸策略以來，我們已將季度股息（常規股息）增加了 29 次，並且從未削減過常規股息，同時保持了稅前淨投資收益對常規股息的強勁覆蓋。

In addition, over the same period, we have paid or declared 26 special or supplemental dividends totaling $4.06 per share. All generated from excess earnings and realized gains from our investment portfolio. Dividend sustainability strong credit performance and continued access to capital from multiple capital sources are all core to our overall business strategy. Our track record in all these areas demonstrates the strength of our investment and capitalization management strategies as well as the absolute alignment of all our decisions with the interest of our fellow shareholders.

此外，在同一時期，我們還支付或宣布了 26 次特別或補充股息，總計每股 4.06 美元。所有這些都來自我們投資組合的超額收益和已實現收益。股息可持續性、強勁的信貸表現以及持續從多種資本來源獲取資本都是我們整體業務策略的核心。我們在所有這些領域的業績記錄證明了我們的投資和資本管理策略的實力，以及我們的所有決策與股東利益的絕對一致。

As a reminder, slide 9 lays out a core tenants of our investment strategy in lending and investing in the Royal Middle market. The vast majority of our portfolio and deal activity is in first lien senior secured loans to companies backed by private equity firms. Currently, approximately 93% of our credit portfolio is backed by private equity firms, which provide important guidance and leadership to the portfolio companies as well as the potential for junior capital support if needed.

提醒一下，投影片 9 列出了我們在皇家中部市場貸款和投資的投資策略的核心原則。我們的投資組合和交易活動的絕大部分是向私募股權公司支持的公司提供優先留置權優先擔保貸款。目前，我們約 93% 的信貸組合由私募股權公司支持，這些公司為投資組合公司提供重要的指導和領導，並在需要時提供初級資本支持。

In the lower middle market, we often have the opportunity to invest on a minority basis in the equity of our portfolio companies (inaudible) with the private equity firm when we believe the equity thesis is compelling. As of the end of the quarter, our equity co-investment portfolio consisted of 72 investments with a total fair value of $134 million representing 9% of our total portfolio at fair value. Our equity portfolio was marked at 132% of our cost representing $32.5 million in embedded unrealized appreciation or $0.68 per share.

在中低端市場，當我們認為股權理論具有吸引力時，我們經常有機會與私募股權公司一起以少數股權的方式投資於我們投資組合公司（聽不清楚）的股權。截至本季末，我們的股權共同投資組合由 72 項投資組成，總公允價值為 1.34 億美元，占我們總投資組合公允價值的 9%。我們的股票投資組合價值為成本的 132%，代表 3,250 萬美元的內含未實現增值，即每股 0.68 美元。

Our equity portfolio continues to provide our shareholders participation in the attractive upside potential of these growing lower middle market businesses, often resulting from the institutionalization of the businesses by experienced private equity firms as well as the significant value accretion potential of strategic add-on acquisitions.

我們的股票投資組合繼續為我們的股東提供參與這些不斷增長的中低端市場業務的誘人上行潛力的機會，這通常源於經驗豐富的私募股權公司對這些業務的製度化，以及戰略附加收購的巨大價值增值潛力。

Equity co-investments across our portfolio provide our shareholders with the potential for asset value appreciation as well as equity distributions to Capital Southwest over time.

我們投資組合中的股權共同投資為我們的股東提供了資產價值增值的潛力以及隨著時間的推移向 Capital Southwest 的股權分配。

As illustrated on slide 10, our on-balance sheet credit portfolio ended the quarter at $1.4 billion, representing year-over-year growth of 17% from the $1.2 billion as of September 2023. For the current quarter, 100% of the new portfolio company debt originations were first lien senior secured. As of the end of the quarter, 98% of the credit portfolio was first lien senior secured with weighted average exposure per company remaining at 1%. We believe our portfolio granularity speaks to our continued investment discipline of maintaining a conservative posture to overall risk management as we grow our balance sheet. We expect this metric will continue to improve in our asset base growth.

如投影片 10 所示，本季末我們的資產負債表信貸組合為 14 億美元，較 2023 年 9 月的 12 億美元年增 17%。本季度，新投資組合公司 100% 的債務均以優先留置權擔保。截至本季末，98% 的信貸組合為優先留置權擔保，每家公司的加權平均風險敞口仍為 1%。我們相信，我們的投資組合粒度體現了我們在擴大資產負債表的同時，繼續保持保守的整體風險管理態度的投資原則。我們預計這項指標將隨著我們的資產基礎成長而持續改善。

I want to now hand the call over to Josh to review more specifics of our investment activity, the market environment and the performance of our portfolio for the quarter.

現在我想將電話交給喬希，讓他來回顧我們本季的投資活動、市場環境和投資組合表現的更多細節。

Thanks, Bowen. On slide 11, we detailed $89.8 million of capital invested in and committed to portfolio companies during the quarter. Capital committed during the quarter included $72 million in first lien senior secured debt across four new portfolio companies, in which we also invested a total of $975,000 in equity. In addition, we closed add-on financing for 11 existing portfolio of companies consisting of $16 million in first lien senior secured debt in $815,000 in equity.

謝謝，鮑文。在第 11 張投影片上，我們詳細介紹了本季投資於並承諾用於投資組合公司的 8,980 萬美元資本。本季承諾的資本包括對四家新投資組合公司的 7,200 萬美元第一留置權優先擔保債務，我們也向這些公司投資了總計 975,000 美元的股權。此外，我們還為 11 家現有公司組合完成了附加融資，其中包括 1,600 萬美元的優先留置權優先擔保債務和 815,000 美元的股權。

We are pleased with the strong market position that our team has established as a premier lender to the lower middle market. This is evidenced by the broad array of relationships across the countries from which our team is sourcing quality opportunities. As a point of reference, currently, there are more than 70 different private equity firms represented across our investment portfolio.

我們很高興看到我們的團隊作為中低端市場的首要貸款機構建立了強大的市場地位。我們的團隊在各國建立了廣泛的關係，從中尋找優質機會，證明了這一點。作為參考，目前，我們的投資組合中有超過 70 家不同的私募股權公司。

Additionally, in the last year, we closed 10 new platforms with financial sponsors, which we had not previously closed the deal, showing our continued penetration in the market. Since the loss of our credit strategy back in January 2015, we have completed transactions with over 100 different private equity firms across the country, including over 20%, which we have completed multiple transactions.

此外，去年我們與金融贊助商達成了 10 個新平台的交易，這些平台此前從未與我們達成過交易，這表明我們在市場上的滲透力不斷增強。自從2015年1月我們的信貸策略失敗以來，我們已經與全國100多家不同的私募股權公司完成了交易，其中超過20%的公司我們已經完成了多筆交易。

As Bowen mentioned, competition in the lower middle market over the last six months has been quite strong. This has resulted in tight loan pricing for high-quality opportunities. We in the depth and strength of the relationships, our team has cultivated over the years. We continue to source and gain opportunities with attractive risk return profiles, and we are very pleased with the current back auto transactions that should close between now and the end of the year.

正如鮑文所說，過去六個月中低端市場的競爭相當激烈。這導致優質貸款機會的貸款定價趨緊。我們團隊多年來培養了深厚而強大的關係。我們將繼續尋找並獲得具有吸引力的風險回報狀況的機會，我們對目前應該在現在到年底之間完成的汽車交易感到非常滿意。

Turning to slide 12. We continued our track record of strong returns on our exits, is for debt prepayments during the quarter. In total, these exits generated $45.2 million in total proceeds, generating a weighted average IRR of 14.5%. During the quarter, the prepayment activity was driven by the robust financing market as all four prepayments were refinancing transactions of portfolio companies with EBITDA in excess of $15 million. Two of the companies, ADS Tactical and WIS were large, syndicated credits formerly held at I-45, which were paid off at par. Over the past 10 years, we have realized 86 portfolio company exits, representing over $1.1 billion in proceeds that have generated a cumulative weighted average IRR of 13.9%.

翻到第 12 張投影片。我們延續了退出時強勁回報的記錄，用於本季的債務預付。總體而言，這些退出產生了 4,520 萬美元的總收益，產生了 14.5% 的加權平均 IRR。本季度，預付款活動受到強勁的融資市場的推動，因為所有四筆預付款都是投資組合公司的再融資交易，EBITDA 超過 1500 萬美元。其中兩家公司 ADS Tactical 和 WIS 是大型銀團信貸公司，之前在 I-45 持有，並按票面價值償還。在過去的 10 年裡，我們實現了 86 家投資組合公司的退出，收益超過 11 億美元，累計加權平均 IRR 為 13.9%。

On slide 13, we detail key statistics for our portfolio as of the end of the quarter. The total portfolio consisted of 118 unique companies with a fair value as of the end of the quarter, weighted 89.2% in first lien senior secured debt, 1.8% to second lien senior secured debt, 0.1% to subordinated debt and 8.9% to equity co-investments. The credit portfolio had a weighted average yield of 12.9% and weighted average leverage through our security of 3.8 times EBITDA.

在第 13 張投影片上，我們詳細介紹了截至本季末的投資組合的關鍵統計數據。截至本季末，總投資組合由 118 家具有公允價值的獨特公司組成，其中第一留置權優先擔保債務佔 89.2%，第二留置權優先擔保債務佔 1.8%，次級債務佔 0.1%，股權共同投資佔 8.9%。信貸組合的加權平均收益率為 12.9%，透過我們的證券計算的加權平均槓桿為 EBITDA 的 3.8 倍。

Overall, we are pleased with the operating performance across our loan portfolio. In fact, as shown on slide 14, the portfolio upgrades were meaningfully more than the downgrades this quarter. As a reminder, all loans upon origination are initially assigned an investment rating of two on a four-point scale, with one being the high rating and for being the lowest rating. We had five loans representing $80 million in fair value upgraded during the quarter, while having only one loan representing approximately $12 million in fair value downgraded during the quarter.

整體而言，我們對整個貸款組合的經營業績感到滿意。事實上，如投影片 14 所示，本季投資組合的升級幅度明顯大於降級幅度。提醒一下，所有貸款在發放時都會被初始分配一個四分制投資評級，其中一分為高，二分為最低。本季度，我們有五筆貸款的公允價值升級，總額為 8,000 萬美元，而本季只有一筆貸款的公允價值被下調，總額約 1,200 萬美元。

The portfolio remains healthy with 93.5% of the portfolio at fair value, weighted in one of the top two categories, one or two, and only 6.5% of the portfolio in the three or four categories. Cash flow coverage of debt service obligations across the portfolio remained at a healthy 3.4 times despite the higher base rate environment. With our loans across our portfolio, averaging approximately 43% of the portfolio company enterprise value. Quarter-over-quarter revenue and EBITDA growth on a weighted average basis was 2% and 1%, respectively.

投資組合保持健康，93.5% 的投資組合處於公允價值，權重集中在前兩個類別之一、一或兩個類別中，只有 6.5% 的投資組合處於前三個或四個類別中。儘管基準利率較高，但整個投資組合的債務償還義務現金流覆蓋率仍維持在健康的 3.4 倍。我們的貸款在整個投資組合中平均佔投資組合公司企業價值的 43% 左右。以加權平均計算，季度環比收入和 EBITDA 成長率分別為 2% 和 1%。

As seen on slide 15, our portfolio continues to be broadly diversified across industries, with an asset mix which provides strong security for our shareholders' capital. In addition to industry diversification, our average exposure per company is 1% of assets, which gives us great comfort in the overall risk profile of our portfolio.

如投影片 15 所示，我們的投資組合持續在各行業廣泛分散，其資產組合為股東的資本提供了強有力的保障。除了產業多元化之外，我們對每家公司的平均風險敞口佔資產的 1%，這讓我們對投資組合的整體風險狀況感到非常放心。

Our investment committee members utilized our cumulative experiences navigating through various economic cycles, to continually assess risk, both on a company-by-company basis as well as on the portfolio.

我們的投資委員會成員利用我們在各個經濟週期中累積的經驗，不斷評估各個公司以及整個投資組合的風險。

I will now hand the call to Michael to review the specifics of our financial performance for the quarter.

我現在將把電話交給邁克爾來審查我們本季度財務業績的具體情況。

Thanks, Josh. Specific to our performance for the quarter, as summarized on slide 16, pretax net investment income was $30 million or $0.64 per share as compared to $31.3 million or $0.69 per share in the prior quarter. Net investment income after tax was $31.2 million or $0.66 per share for the quarter. The main driver of the tax benefit this quarter was $1.5 million in deferred taxes related to our taxable subsidiary, CSCI, which holds the majority of our equity investments.

謝謝，喬希。具體到我們本季的業績，如第 16 頁投影片所述，稅前淨投資收入為 3,000 萬美元或每股 0.64 美元，而上一季為 3,130 萬美元或每股 0.69 美元。本季稅後淨投資收益為 3,120 萬美元，即每股 0.66 美元。本季度稅收優惠的主要驅動力是與我們的應稅子公司 CSCI 相關的 150 萬美元遞延稅款，該公司持有我們的大部分股權投資。

For the quarter, total investment income decreased to $48.7 million from $51.4 million in the prior quarter. The decrease was driven primarily by a $1.8 million reduction in onetime cash dividends from equity investments in the prior quarter as well as a decrease of approximately $800,000 in fee revenue quarter-over-quarter. The decrease in cash dividend income was the result of three non-recurring dividend recap transactions which occurred in the prior quarter.

本季度，總投資收入從上一季的 5,140 萬美元下降至 4,870 萬美元。下降的主要原因是上一季股權投資一次性現金股利減少 180 萬美元，以及費用收入較上季減少約 80 萬美元。現金股息收入的減少是由於上一季發生的三筆非經常性股息重估交易。

As of the end of the quarter, our loans on nonaccrual represented 3.5% of our investment portfolio at fair value and the weighted average yield in the portfolio on all investments was 12.7%.

截至本季末，我們的非應計貸款以公允價值計算占我們投資組合的 3.5%，所有投資組合的加權平均收益率為 12.7%。

During the quarter, we paid out a $0.58 per share regular dividend and a $0.06 per share supplemental dividend. As mentioned earlier, our board has declared a regular dividend of $0.58 per share in the supplemental dividend of $0.05 per share for the December quarter. Management and the board has spent significant time contemplating the impact of a lower interest rate environment on future earnings.

在本季度，我們支付了每股 0.58 美元的常規股息和每股 0.06 美元的補充股息。如前所述，我們的董事會已宣布 12 月季度每股 0.05 美元的補充股息中，常規股息為每股 0.58 美元。管理階層和董事會花了大量時間考慮低利率環境對未來收益的影響。

We have consistently maintained the setting a regular dividend at a level that we believe will never be cut in any foreseeable interest rate environment is key to generating stable, attractive shareholder returns over the long-term. We continued our strong track record of regular dividend coverage with 119% coverage for the 12 months ended September 30, 2024, and 111% cumulative coverage since the launch of our credit strategy in January 2015.

我們始終堅持將定期股息設定在我們認為在任何可預見的利率環境下都不會削減的水平，這是長期產生穩定、有吸引力的股東回報的關鍵。我們持續維持良好的定期股利覆蓋率記錄，截至 2024 年 9 月 30 日的 12 個月的覆蓋率為 119%，自 2015 年 1 月推出信貸策略以來的累積覆蓋率為 111%。

As a reminder, our intent is to continue to distribute to our shareholders the excess of our quarterly pre-tax NII on over our regular dividend in a quarterly supplemental dividend. We are confident in our ability to continue to distribute quarterly supplemental dividends for the foreseeable future based upon our current UTI balance of $0.64 per share and the expectation that we will harvest gains over time from our existing $0.68 per share in unrealized appreciation on the equity portfolio.

提醒一下，我們的目的是繼續以季度補充股利的形式向股東分配超出常規股利的季度稅前 NII。我們有信心，基於我們目前每股 0.64 美元的 UTI 餘額，以及我們將隨著時間的推移從現有的每股 0.68 美元的股票投資組合未實現增值中獲得收益的預期，我們有能力在可預見的未來繼續分配季度補充股息。

As seen on slide 17, LTM operating leverage ended the quarter at 1.7%, which improved slightly quarter-over-quarter. Our operating leverage of 1.7% continues to compare favorably to the BDC industry average of approximately 2.8%. We believe this metric speaks to the benefits of the internally managed BDC model and our absolute alignment with shareholders. The internally managed model has and will continue to produce real fixed cost leverage while also allowing for significant resources to be invested in people and infrastructure as we continue to build and manage a best-in-class BDC.

如投影片 17 所示，LTM 營業槓桿率在本季末為 1.7%，季減略有改善。我們的經營槓桿率為 1.7%，與 BDC 產業約 2.8% 的平均值相比仍具有優勢。我們相信這項指標體現了內部管理的 BDC 模型的優勢以及我們與股東的絕對一致。內部管理模式已經並將繼續產生真正的固定成本槓桿，同時也允許在我們繼續建造和管理一流的 BDC 時將大量資源投入到人員和基礎設施中。

Turning to slide 18. The company's NAV per share at the end of the quarter decreased slightly by $0.01 per share to $16.59 per share. The primary drivers of the NAV per share decrease for the quarter or net realized and unrealized depreciation on our investment portfolio, offset by accretion from the issuance of common stock at a premium to NAV per share.

翻到第 18 張投影片。該公司本季末的每股淨資產值小幅下降 0.01 美元至每股 16.59 美元。本季每股淨資產價值下降的主要驅動因素是我們的投資組合的淨已實現和未實現折舊，但被以高於每股淨資產價值的價格發行普通股所帶來的增值所抵消。

Turning to slide 19. We are pleased to report that our balance sheet liquidity is robust with approximately $475 million in cash and undrawn leverage commitments on our two credit facilities and our SDA dense debenture commitment, which altogether represents 3.6 times, the $133 million of unfunded commitment we had across our portfolio as of the end of the quarter.

翻到第 19 張投影片。我們很高興地報告，我們的資產負債表流動性強勁，我們的兩項信貸安排和 SDA 密集債券承諾的現金和未提取的槓桿承諾約為 4.75 億美元，總計相當於截至本季度末我們整個投資組合中 1.33 億美元未撥付承諾的 3.6 倍。

During the September quarter, commitments to the ING-led corporate credit facility increased to $485 million, up from $460 million in the prior quarter, with the addition of one new bank lender. In addition, based on the current borrowing base, we have access to the full $485 million in total commitments. This facility has an accordion feature allowing for the further increase in total commitments up to an aggregate of $750 million, allowing us to continue to grow our revolver capacity in lockstep with the growth of our overall balance sheet.

9 月季度，隨著一家新銀行的加入，荷蘭國際集團 (ING) 牽頭的企業信貸額度承諾從上一季的 4.6 億美元增至 4.85 億美元。此外，根據目前的借款基礎，我們可以獲得全部 4.85 億美元的承諾。該工具具有手風琴功能，允許將總承諾額進一步增加至總計 7.5 億美元，使我們能夠隨著整體資產負債表的增長繼續擴大循環信貸能力。

As a reminder, in March 2024, we submitted a MAC application to the FDA, which began the process towards a second SBIC license. We are actively working with the FDA. And we continue to be optimistic that we will complete this process by the end of this calendar year. Finally, as of the end of the September quarter, 46% our capital structure liabilities were an unsecured covenant free bonds with our earliest debt maturity in January 2026.

提醒一下，2024 年 3 月，我們向 FDA 提交了 MAC 申請，從而開始了第二個 SBIC 許可證的申請流程。我們正在積極與 FDA 合作。我們仍然樂觀地認為我們將在今年年底前完成這項進程。最後，截至 9 月季度末，我們 46% 的資本結構負債為無擔保無契約債券，最早的債務到期日為 2026 年 1 月。

Our regulatory leverage, as seen on slide 20, ended the quarter at a debt-to-equity ratio of 0.8 to 1, up from 0.75 to 1 as of the prior quarter. While optimal target leverage continues to be in the 0.8 to 0.95 range, we are weighing the impact of future base rate reductions and maintaining adequate cushion levels to allow us the flexibility to potentially increase leverage to support future earnings and dividend growth. We will continue to methodically and opportunistically raise secured and unsecured debt capital as well as equity capital through our ATM program, to ensure we maintain significant liquidity and conservative balance sheet leverage with adequate covenant cushions.

如投影片 20 所示，我們的監管槓桿在本季末的負債權益比率為 0.8 比 1，高於上一季的 0.75 比 1。雖然最佳目標槓桿率仍然在 0.8 至 0.95 範圍內，但我們正在權衡未來基準利率下調的影響，並保持足夠的緩衝水平，以便我們能夠靈活地提高槓桿率，以支持未來的收益和股息成長。我們將繼續透過 ATM 計畫有條不紊地、抓住機會地籌集有擔保和無擔保債務資本以及股權資本，以確保我們保持充足的流動性和保守的資產負債表槓桿率以及充足的契約緩衝。

From a capital markets perspective, BDCs have been very active in the unsecured debt market as investors remain constructive on new bond issuances. Despite not having any maturities within our debt structure until 2026, we are actively evaluating financing transactions to mitigate future capital market volatility and while also being mindful of the current interest rate environment.

從資本市場的角度來看，由於投資者對新債券發行保持樂觀，BDC 在無擔保債務市場非常活躍。儘管我們的債務結構直到 2026 年才到期，但我們仍在積極評估融資交易，以減輕未來資本市場的波動，同時也關注當前的利率環境。

I will now hand the call back to Bowen for some final comments.

現在我將把電話轉回給鮑文，請他發表一些最後的評論。

Thank you, Michael, and thank you, Josh. And again, thank you, everyone, for joining us today. As always, we appreciate the opportunity to provide you with an update on our business, our portfolio and the market environment.

謝謝你，邁克爾，謝謝你，喬希。再次感謝大家今天的參與。像往常一樣，我們很高興有機會向您提供有關我們的業務、產品組合和市場環境的最新資訊。

Our company and portfolio continue to demonstrate strong performance, and we continue to be impressed by the job our team is doing in building a robust asset base, deal origination and portfolio management capability as well as a flexible capital structure. We believe we have prepared our company well for future growth and performance.

我們的公司和投資組合繼續表現出強勁的表現，我們的團隊在建立強大的資產基礎、交易發起和投資組合管理能力以及靈活的資本結構方面所做的工作給我們留下了深刻的印象。我們相信我們已經為公司未來的成長和業績做好了充分的準備。

The overall health and security of our portfolio is strong. Our credit portfolio is predominantly made up of first lien senior secured loans allocated across a broad array of companies and industries with weighted average exposure per company of only 1%. The vast majority of our portfolio is backed by private equity firms. Interest coverage and the debt obligations across our portfolio was a strong 3.4 times with strong equity cushion and support below our debt investments.

我們的投資組合的整體健康狀況和安全性都很好。我們的信貸組合主要由分佈在眾多公司和行業中的優先留置權擔保貸款組成，每家公司的加權平均風險敞口僅為 1%。我們的投資組合絕大部分由私募股權公司支持。我們投資組合的利息覆蓋率和債務義務高達 3.4 倍，並且擁有強大的股權緩衝和低於債務投資的支持。

Additionally, our equity co-investment portfolio gives our shareholders participation in the equity upside of many of these growing lower middle market businesses, providing further enhancement to our long-term shareholder returns.

此外，我們的股權共同投資組合使我們的股東能夠參與許多不斷增長的中低端市場企業的股權上漲，從而進一步提高我們的長期股東回報。

Last but not least, we have a very well-capitalized balance sheet with multiple capital sources and significant balance sheet liquidity, all of which provides our company an exciting runway to continue to grow and generate strong shareholder returns for years to come.

最後但同樣重要的一點是，我們擁有非常充足的資本，包括多種資本來源和顯著的資產負債表流動性，所有這些都為我們公司提供了一個令人興奮的跑道，以便在未來幾年繼續增長並產生強勁的股東回報。

This concludes our prepared remarks. Operator, we are ready to open the lines for Q&A.

我們的準備好的演講到此結束。接線員，我們已準備好開通問答熱線。

(Operator Instructions)

（操作員指示）

Brian McKenna, Citizens JMP.

Brian McKenna，公民 JMP。

Okay. Great. Thanks good morning, everyone. So I heard the commentary around some deals that got pushed into calendar 4Q. Is there any way to quantify this? And then it's great to hear that the pipeline is also robust. So how should we think about the magnitude of net portfolio growth into year-end and then also into calendar year 2025 as well?

好的。偉大的。謝謝大家早安。因此，我聽到了有關一些被推遲到第四季度的交易的評論。有什麼方法可以量化這一點嗎？很高興聽到管道也很堅固。那麼，我們該如何看待年底以及 2025 年淨投資組合的成長幅度呢？

Yeah. So I mean, generally speaking, I mean, we had deals pushed into the fourth quarter and we -- as I said in the commentary, if you look at the deals that we've either signed up, so they're in heavy diligence or we've been told that we're going to win likely so the deal has to close, right? But those two things, I mean, it will be very significant net portfolio growth in the quarter.

是的。所以我的意思是，一般來說，我們的交易被推遲到了第四季度，正如我在評論中所說的那樣，如果你看看我們已經簽署的交易，那麼他們正在進行嚴格的審查，或者我們被告知我們很可能會獲勝，所以交易必須完成，對吧？但我的意思是，這兩件事將帶來本季非常顯著的淨投資組合成長。

Yeah. So it's also relative to the 9/30 quarter, our originations were mostly late stage. This quarter, if we were going to quantify, we'd probably see -- I mean, on the services side, we probably expect to see $150 million to $200 million of net portfolio growth for the quarter. And so say half of the originations are -- either have closed or will close shortly. So we expected a pretty strong portfolio growth, ultra-income as well as the balance sheet.

是的。因此，與 9/30 季度相比，我們的發起大多處於後期階段。本季度，如果我們要量化的話，我們可能會看到——我的意思是，在服務方面，我們可能會預期本季淨投資組合將成長 1.5 億至 2 億美元。因此可以說，一半的發起機構要不是已經關閉，就是即將關閉。因此，我們預期投資組合成長、超額收入以及資產負債表將相當強勁。

Yeah. Okay. Got it. That's helpful. And then maybe just a bigger picture question. What are you seeing just within kind of the lower middle markets and then really just the markets more broadly in terms of new deal activity. I think deal flows remain largely stable, the last several years and kind of the lower middle markets and broader sponsor M&A has been pretty muted.

是的。好的。知道了。這很有幫助。然後也許只是一個更大的問題。就新交易活動而言，您看到中低端市場的情況如何，以及更廣泛的市場情況如何。我認為交易流基本上保持穩定，過去幾年中低端市場和更廣泛的贊助商併購活動一直相當低迷。

So I think we've seen some larger players moving down market. So thinking about sponsor M&A, specifically in the larger end of the market, that should be picking up here. So I guess, what does that mean for transactions and yields in your space? And then are you seeing any early signs of some of these larger firms moving back up market a bit?

所以我認為我們已經看到一些較大的參與者正在轉移到市場低端。因此，考慮到贊助商併購，特別是在較大的市場端，這應該會有所回升。那麼我想，這對您所在領域的交易和收益意味著什麼？那麼，您是否看到一些大型公司正在稍微回歸市場的早期跡象？

Yeah. So it's a really interesting question. And when we think about and ask other firms about quite often. I think -- over the last several years, we've seen an enormous amount of capital being raised initially in the private equity market and then in the private credit market. When you read about the quantity of capital raised, obviously, just that's tends to lean more towards the large market, probably for no other reason to me just a lot more capital. I think we've also heard and you've read in the papers, et cetera, that deal flow, as you just referenced, has been muted in the last year and half years say.

是的。這是一個非常有趣的問題。當我們考慮並經常詢問其他公司。我認為——在過去幾年裡，我們看到大量資本首先在私募股權市場籌集，然後在私人信貸市場籌集。當你讀到籌集的資金數量時，顯然，這更傾向於大市場，對我來說可能沒有其他原因，只是更多的資本。我想我們也聽說過，而且您也在報紙上讀到過，正如您剛才提到的，在過去的一年半里，交易流一直很低迷。

And so what we've heard is there's two things going on. And it doesn't take a whole lot of change in the competitive balance, if you will, between supply and demand and capital in the lower middle market to disrupt pricing. So the deal flow in the lower or middle market, as we've -- as you know, is not private equity firms selling businesses to each other, but it's private equity firms buying controlling interest in founder family-owned businesses that are aging and want to diversify their holdings.

我們聽說有兩件事正在發生。如果你願意的話，中低端市場的供需和資本之間的競爭平衡並不需要發生很大的變化就能擾亂定價。因此，正如我們所知，中低端市場的交易流不是私募股權公司相互出售業務，而是私募股權公司購買正在老化並希望實現持股多元化的創始人家族企業的控股權。

And so the deal flow has been relatively flat. And so when you have decreased deal flow in the upper market and relatively flat deal flow in the lower middle market, we have seen certainly the private equity parties that I've talked to have seen some of the increased competition from larger market, private equity firms. It's a cascading effect, right? So large market private equity firms starting to justify deals a little bit smaller and then mid-market justifying deals a little bit smaller and kind of cascades down.

因此交易流程相對平穩。因此，當高端市場的交易量減少，而中低端市場的交易量相對持平時，我們肯定會看到，與我交談過的私募股權公司已經看到了來自更大市場私募股權公司的競爭加劇。這是一個連鎖效應，對吧？因此，大型市場私募股權公司開始為規模稍小的交易尋找理由，然後中型市場也為規模稍小的交易尋找理由，如此反覆。

And then as you just referenced, Brian, I mean that when deal flow picks back up, that should cascade back. Now there's an enormous amount of liquidity in the market. So the speed at which that cascades back is the question mark, but I think it would tend to cascade back up.

然後，正如你剛才提到的，布萊恩，我的意思是，當交易流回升時，這應該會隨之而來。現在市場上有大量的流動性。因此，其反彈速度仍是個問號，但我認為它會趨向於反彈。

The other effect is in our market is we're seeing more competition recently from banks. As we all know, banks come and go. They're here now, and they were here year and half ago in many -- and it's a certain handful of regional banks. So that's somewhat disrupts the market from a pricing perspective.

另一個影響是，我們最近看到銀行的競爭更加激烈。眾所周知，銀行來來去去。他們現在就在這裡，一年半前他們就在這裡，而且是少數幾家地區銀行。因此，從定價角度來看，這在某種程度上擾亂了市場。

We haven't seen a lot of deterioration in credit, like leverage up covenants worse, a little bit around the edges, but not as much as pricing has changed. And so I think those two factors, again, it doesn't take a lot to disrupt the pond, if you will from a pricing perspective.

我們還沒有看到信貸狀況出現太多惡化，例如槓桿率上升契約惡化，只是稍微有點惡化，但沒有價格變動那麼大。因此，我認為從定價角度來看，這兩個因素並不需要太大的改變就能擾亂市場。

We say perspective. Probably three quarters ago, in fact, our spread over Silver was 750, two quarters ago, the June 30 quarter, it was 700, and this quarter, it was just a shade over 650. So we've seen obviously somewhere in the 50 basis points to 100 basis points tightening on spread at the moment.

我們說的是視角。事實上，大約三個季度前，我們的白銀利差為 750，兩個季度前，即 6 月 30 日當季，我們的利差為 700，而本季度，我們的利差略高於 650。因此，我們顯然看到目前利差在 50 個基點至 100 個基點之間收緊。

Yes. Alright, great. Thank you guys. I'll leave it.

是的。好的，太好了。謝謝你們。我就把它留下來。

Doug Harter, UBS.

瑞銀的道格·哈特。

Thanks. Can you talk about your appetite to continue to raise capital given the combination of the premium to book and the increased pipeline that you talked about?

謝謝。考慮到您提到的帳面溢價和增加的管道，您能否談談您繼續籌集資金的意願？

Sure. So well, I'll start by saying we've done a lot of the hard work coming for today. We have close to $500 million of capital available either through cash or availability on our credit facilities. Now we're trading where we are 1.5 times book, we -- the ATM is constantly rating capital on a daily basis.

當然。好吧，首先我想說的是，為了今天，我們做了很多艱苦的工作。我們擁有近 5 億美元的可用資金，可以透過現金或信貸額度獲得。現在我們的交易價格是帳面價值的 1.5 倍，我們——ATM 每天都在不斷地對資本進行評級。

I would say that we are always opportunistically looking to additional capital and certainly with an eye towards our funds in 2026, sort of refinance those in time. So I would tell you, yes, we're active there. You'll probably see us increase secure capacity a little bit. We certainly should expect over the next six to nine months to see some unsecured activity and raising ATM money will probably look like something in the $20 million to $40 million a quarter.

我想說的是，我們總是抓住機會尋找額外的資本，當然也著眼於 2026 年的資金，並及時進行再融資。所以我想告訴你，是的，我們在那裡很活躍。您可能會看到我們稍微增加了安全容量。我們當然應該預計，在未來六到九個月內會看到一些無擔保活動，而 ATM 資金的籌集可能看起來每季在 2,000 萬到 4,000 萬美元之間。

Great, appreciate that. Thank you.

太好了，非常感謝。謝謝。

Bryce Rowe, B. Riley.

布萊斯·羅，B. 萊利。

Thanks. Good morning. Maybe wanted to start around the discussion topic of the portfolio, a robust portfolio and a couple more questions around that. So Bowen, and maybe touch on the mix of the backlog, whether it be kind of newer portfolio companies versus existing portfolio companies. And I'm kind of curious, have you seen incremental spread compression since the end of September with some of the new deal activity that's kind of bled over into the fourth calendar quarter?

謝謝。早安.也許想圍繞投資組合、穩健的投資組合以及圍繞該投資組合的幾個其他問題展開討論。因此，鮑文，也許可以談談積壓的組合，無論是較新的投資組合公司還是現有的投資組合公司。我有點好奇，自 9 月底以來，您是否看到利差逐漸壓縮，並且一些新交易活動已經延續到第四季度？

Yeah. So I mean the new deal activity is you say two-thirds new platform companies in third add-ons, which has kind of been the mix historically in the last several quarters. So it's about the same. I'd say spreads have tightened slightly since September, but not -- that's not the biggest item of our concern, that change. It's kind of the same, but it's probably slightly tighter for quality credits.

是的。所以我的意思是，新的交易活動是，你說的三分之二的新平台公司是第三個附加組件，這在過去幾季的歷史組合中一直存在。所以大致相同。我想說，自 9 月以來，利差已經略有收窄，但這並不是我們最擔心的變化。這有點類似，但對於優質信貸來說可能稍微嚴格一些。

Okay. That's helpful. And then maybe speak to -- I think you guys have talked in the past about how the loan rate resets kind of lag what we see from a short-term rate perspective, we saw a little bit of yield compression for the portfolio here in the September quarter. Maybe Michael or Bowen, can you kind of speak to what percentage of that was non-accrual inflows? What percentage of that was SOFR compression driven? And then what your expectation is for the portfolio yield given that lag?

好的。這很有幫助。然後也許可以談談——我想你們過去曾討論過貸款利率如何重置滯後，從短期利率的角度來看，我們在 9 月季度看到了投資組合的收益率略有壓縮。也許邁克爾或鮑文，您能說說其中有多少百分比是非應計流入嗎？其中有多少比例是由 SOFR 壓縮所驅動的？那麼考慮到這種滯後，您對投資組合報酬率的預期是什麼？

Sure. So saw SOFR come in from essentially 5.1% in the previous quarter from to effective, I guess, 12 basis points, it came in effectively for the 9/30 quarter versus the 6/30 quarter, compression on yield came in about 15 basis points and then there was some compression due to elevated non-accruals during the quarter. So it brought our yield on this debt from 13.3% down to 12.9%. For the 12/31 quarter, we're expecting, based on the reset date, which was October 1, was 4.6%, so down from the pipeline in the previous quarter. So another 50 basis points anticipation -- so that's kind of good items to where we are on the compression today.

當然。因此，SOFR 從上一季的 5.1% 上升到實際的 12 個基點，與 6 月 30 日季度相比，它在 9 月 30 日季度有效，收益率壓縮了約 15 個基點，然後由於本季度非應計項目增加而出現了一些壓縮。因此，這筆債務的收益率從 13.3% 降至 12.9%。對於 12/31 季度，根據重置日期（10 月 1 日），我們預計為 4.6%，低於上一季的水平。因此，預期會有另外 50 個基點 - 所以這對於我們今天所處的壓縮位置來說是一個好項目。

Yeah. Okay. Helpful. And then maybe just touch on the non-accruals. I mean, obviously, you saw the portfolio's weighted average risk rating improved in the quarter, but you did have a couple of non-accruals flow into that non-accrual bucket. Can you give us a little commentary around that, kind of what the expectation is for those particular assets?

是的。好的。很有幫助。然後也許只是觸及非應計項目。我的意思是，顯然，您看到投資組合的加權平均風險評級在本季度有所提高，但確實有幾筆非應計項目流入了該非應計項目桶。您能否就此給我們一些評論，例如對於這些特定資產的預期是什麼？

Yeah. I mean, it's two new non-accruals, obviously, that's frustrating. It's part of our business. It's frustrating to see -- both of those names were three last quarter. So they were already on our watch list. One is a closeout sale company to lower end consumers, and I think that's my view of that. I think our view of that the lower-end consumer that's affected more acutely by the cost of eggs and gas and milk with inflation. And so that's hurt that business.

是的。我的意思是，這顯然是兩個新的不提項目，令人沮喪。這是我們業務的一部分。令人沮喪的是——這兩個名字在上個季度都排在第三。所以他們已經在我們的監視名單上了。一家是針對低端消費者的清倉甩賣公司，我想這就是我的看法。我認為，我們認為低端消費者受通貨膨脹導致的雞蛋、汽油和牛奶成本的影響更為嚴重。這對該公司的業務造成了損害。

And then the other one is it serves the -- it's the video content that streamed through Hulu, Netflix, Prime, those types of things, they're a video digital editor company. And so that's been affected by the strike. That's over, but the businesses -- the industry is still down. And then it's just -- the comeback of that business will be a function of the quantum of streaming content volume and how fast that recovers.

另一個是它提供透過 Hulu、Netflix、Prime 等串流媒體播放的影片內容，他們是一家影片數位編輯公司。因此，這受到了罷工的影響。一切都結束了，但企業——產業仍然低迷。然後，這項業務的復甦將取決於串流內容的數量和恢復速度。

Both non-accruals will most likely be restructured by the end of December. Both are in discussions right now. And I'm pretty confident that they'll be restructured by the end of December. So they'll be off that list anyway, but there'll be companies where we'll own equity in, and we'll continue to work with the management teams and turn around those businesses, hopefully.

這兩項非應計項目很可能將在 12 月底前進行重組。兩者目前均處於討論之中。我非常有信心他們將在 12 月底完成重組。所以無論如何他們都會從名單上消失，但我們會擁有一些公司的股權，並且我們將繼續與管理團隊合作並扭轉這些業務，希望如此。

Probably of course, just to be clarified, so a portion of the asset will be to get and the portion will be equity. But some of it will come back on accrual. I can't give you those percentages now, but that's anticipated.

當然，只是為了澄清一下，所以一部分資產將被獲得，另一部分將是股權。但其中一部分將以應計形式返還。我現在無法告訴你這些百分比，但這是預料之中的。

Yeah. Okay. Last one for me, just a modeling question. You saw the comp line kind of come in let's call it, 40% or so quarter-over-quarter. Michael, can you help us think about what that comp line might look like for the balance of the fiscal year?

是的。好的。對我來說，最後一個問題只是一個建模問題。您會看到，我們的季度環比成長率約為 40%。邁克爾，您能幫我們想想，在財政年度的餘額中，這條補償線會是什麼樣子嗎？

Yeah. I would tell you that the run rate for compensation -- for cash compensation of $3 million, stock comp number should be about $1.5 million to $4.5 million for compensation on a normal basis, run-rate basis and then SG&A is another $2.5 million on run rates of total set SG&A at $7 million is the run rate you should be working off of.

是的。我會告訴你，薪酬的運行率——對於 300 萬美元的現金薪酬，股票補償數額應該在正常基礎上約為 150 萬美元到 450 萬美元，運行率基礎上，然後銷售、一般和行政費用 (SG&A) 是另外 250 萬美元，總運行率設定為 700 萬美元，這是你應該考慮的運行率。

Okay. All right. Thank you all.

好的。好的。謝謝大家。

Matthew Hurwit, VP.

馬修‧赫維特（Matthew Hurwit），副總裁

Hi, there. This is Matt Hurwit from Jefferies. Congrats on the quarter. Just to follow up on the non-accrual list. Are you able to provide any detail on some of the NPAs from last quarter like Gauge, American Nuts Research Now or Stat Meds?

你好呀。我是 Jefferies 的 Matt Hurwit。恭喜本季取得佳績。只是為了跟進非應計清單。您能否提供上個季度的一些 NPA 的詳細信息，例如 Gauge、American Nuts Research Now 或 Stat Meds？

Yeah. Research Now, I'll start with that because that's easy. That's gone. That was restructured and sold. And so that's actually the net realized loss this quarter. And then American Nuts, kind of flat to better business. And then what was the other one? -- Stat Meds, that's our one name that's a four, and that company continues to kind of struggle.

是的。現在研究，我將從那裡開始，因為這很容易。那已經消失了。該公司已重組並出售。這其實就是本季的淨實現虧損。然後是 American Nuts，業績表現平平，但有所改善。那麼另一個是什麼？ ——Stat Meds，這是我們的一個四位數名稱，而這家公司仍在苦苦掙扎。

Okay. That's really helpful. Thank you all.

好的。這真的很有幫助。謝謝大家。

Robert Dodd, Raymond James.

羅伯特多德、雷蒙德詹姆斯。

Hi, guys. On the net deployments, obviously, that is not what drives bonus accrual just the (inaudible) miss the point. But I mean with the number that you're looking at for the December quarter, I mean -- and you gave kind of some run rate comp numbers and stock comp I mean. Should we expect anything unusual in the fourth quarter given the level of deployments, which is healthy to say the least?

嗨，大家好。顯然，就淨部署而言，這並不是推動獎金累積的因素，只是（聽不清楚）沒有抓到重點。但我的意思是，根據您所查看的 12 月季度的數字，我的意思是 - 您給出了一些運行率補償數字和股票補償數字。考慮到部署水準（至少可以說這是健康的），我們是否應該預期第四季度會出現任何異常情況？

I mean I would say so, Robert. I think that from quarter-to-quarter, we assess what the bonus accrual will look like at year-end and then making -- just to provide everybody we accrued for the first three quarters based on what we think the run rate will look like at the end of the year and then the fourth quarter will be the true up as the final bonus payment, a payment that supposed only paid at one time at the end of our fiscal year. So I mean, certainly, as -- we definitely don't pay people based on originations.

我的意思是我會這麼說，羅伯特。我認為，我們會逐個季度評估年底的獎金累積情況，然後根據我們認為年底的運行率向每個人提供前三個季度累積的獎金，然後在第四季度支付最終獎金，這筆獎金應該只在我們的財政年度末一次性支付。所以我的意思是，當然，我們絕對不會根據起源來支付工資。

So the answer to that question is it will depend on what's going on with the company, how is our credit looking what we think we're able to pay out, first and foremost, to our shareholders for dividends for the remainder of the year, but also with the eye of being able to continue to pay out supplemental dividends and build up the UTI bucket. So I wouldn't expect anything dramatic because that is not how we compensate employees.

因此，這個問題的答案是，這將取決於公司的情況，我們的信用狀況如何，我們認為我們能夠首先向股東支付今年剩餘時間的股息，同時也著眼於能夠繼續支付補充股息並建立 UTI 桶。所以我不會期待任何戲劇性的事情，因為這不是我們補償員工的方式。

Got it. Thank you. And then on -- so just credit in general, I mean -- to your point, Bowen, I think you said you've got a low-end consumer business that's a new non-accruals business this quarter. Digital -- I mean these are not related industries, obviously. But I mean, is there any -- I mean, I would expect the low-end consumer and any other exposure that will be under pressure. But any other areas where there's any kind of emerging sign of weakness?

知道了。謝謝。然後 - 所以只是一般的信貸，我的意思是 - 就你的觀點而言，鮑文，我認為你說過你有一個低端消費者業務，這是本季度一項新的非應計業務。數字——我的意思是，顯然這些不是相關行業。但我的意思是，有沒有——我的意思是，我預計低端消費者和任何其他曝光都會面臨壓力。但其他領域是否也出現了任何疲軟跡象？

I mean, to your point on the revenue and EBITDA, I mean EBITDA, I think, you said was up 1% quarter-over-quarter. So there's got to be a -- not everybody is up 1%. There's got to be a proportion that are now declining sequentially. And I mean -- any themes on where those pressures are and any incremental concerns given lower levels of EBITDA growth between some portion declining?

我的意思是，關於您提到的收入和 EBITDA，我認為您說的 EBITDA 比上一季成長了 1%。所以肯定存在——並不是每個人都上漲了 1%。一定比例現在正在連續下降。我的意思是——考慮到部分 EBITDA 增長水平較低且出現下滑，這些壓力在哪裡以及是否存在任何增量擔憂？

Yeah. Thanks, Robert. I would say, look, I mean, there are idiosyncratic stories all throughout any portfolio, right? So I would say if I were to zone out and think about what are the economic related or trends or things that show up that would be on an economic general list. I mean one is the lower end consumer. No question about it. We don't have a lot of businesses in that area, but like that's something that we've seen not necessarily, yeah, to our non-accrual. But if you look across the portfolio, another one or two discretionary low-end consumer type purchases that slowed, not necessarily becoming a credit problem, but you see that in the portfolio.

是的。謝謝，羅伯特。我想說，看，我的意思是，任何投資組合中都有獨特的故事，對吧？所以我想說，如果我分散注意力，思考哪些是與經濟相關的，哪些是趨勢，哪些是出現在經濟總體清單上的事情。我的意思是，一類是低端消費者。毫無疑問。我們在該地區沒有很多業務，但就像我們所看到的，這不一定是我們的不提業務。但如果你縱觀整個投資組合，你會發現又有一兩種非必需的低端消費類型的購買放緩了，這並不一定會成為信貸問題，但你會在投資組合中看到這一點。

And then the other I would say is just businesses that are serving other businesses, business-to-business that decisions are slower to make purchase decisions, candidly, probably as much business is cautious about the future in some ways. And so that -- I don't know that that's like material if you zone out, look at our overall portfolio, but you definitely -- there's definitely a narrative about that in that respect.

然後我想說的另一件事是，為其他企業服務的企業、企業對企業的決策速度較慢，坦白說，可能很多企業在某些方面對未來持謹慎態度。所以——我不知道如果你分心的話這是否像材料一樣，看看我們的整體投資組合，但你肯定——在這方面肯定有一個敘述。

And then I'll take a step back and like, all right, well, our rating migration, as you and Bryce both referenced, our rating migration, we have significant amount of upgrades, not a lot of downgrades, strong interest coverage in the portfolio on PIK interest this quarter as a percentage of income is down. So our cash -- our income is a higher percentage of cash and it's a higher percentage recurring.

然後我會退一步說，好吧，我們的評級遷移，正如你和布萊斯都提到的那樣，我們的評級遷移，我們有大量的升級，沒有太多的降級，本季度投資組合中 PIK 利息的利息覆蓋率很高，佔收入的百分比下降了。因此，我們的現金－我們的收入中現金的比例較高，而且經常性收入的比例也較高。

So you look at that and you feel pretty good about the engine that's paying the dividend and that's benefiting our shareholders. But at the margins, as you referenced, if you look at negative stories, other than just idiosyncratic, very fixable problems, bad management decisions, all those types of things that show up in any loan portfolio that are very fixable. If you think about what general themes are, those would be the two kind of the low-end consumer and B2B slower investment decision or purchase slower purchase decisions.

所以你看到這一點，就會對支付股息並使我們的股東受益的引擎感到非常滿意。但從邊緣來看，正如您所提到的，如果您看一下負面故事，除了特殊的、非常容易解決的問題、糟糕的管理決策之外，所有出現在任何貸款組合中的問題都是非常容易解決的。如果你思考一下一般的主題是什麼，那就是兩種低端消費者和 B2B 較慢的投資決策或購買較慢的購買決策。

Got it. Thank you.

知道了。謝謝。

And I would now like to turn the conference back to Bowen Diehl for closing remarks.

現在我想請 Bowen Diehl 致閉幕詞。

Thanks operator and thanks everybody for joining us today. We appreciate the opportunity to give you an update on our company and portfolio and we look forward to keeping you updated on events in the future.

感謝接線員，也感謝大家今天的加入我們。我們很高興有機會向您介紹我們公司和投資組合的最新情況，並期待在未來向您通報最新動態。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。