Capital Southwest Corp (CSWC) 2026 Q1 法說會逐字稿

Thank you for joining today's Capital Southwest first quarter fiscal year 2026 earnings call. Participating on today's call are Michael Sarner, Chief Executive Officer; Chris Rehberger, Chief Financial Officer; Josh Weinstein, Chief Investment Officer; and Amy Baker, Executive Vice President, Accounting. I will now turn the call over to Amy Baker.

感謝您參加今天的 Capital Southwest 2026 財年第一季財報電話會議。參加今天電話會議的有執行長 Michael Sarner、財務長 Chris Rehberger、首席投資長 Josh Weinstein 和會計執行副總裁 Amy Baker。現在我將把電話轉給艾米貝克。

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.

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。

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. For information concerning these risks and uncertainties, see Capital Southwest's publicly available filings with the SEC.

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。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。

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. I will now hand the call over to our President and Chief Executive Officer, Michael Sarner.

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、未來事件變更或本新聞稿發布日期後的任何其他原因。我現在將電話交給我們的總裁兼執行長 Michael Sarner。

Thanks, Amy, and thank you, everyone, for joining us for our first quarter fiscal year 2026 earnings call. We are pleased to be with you today to discuss our first fiscal quarter.

謝謝艾米，也謝謝大家參加我們的 2026 財年第一季財報電話會議。我們很高興今天能與大家一起討論我們的第一個財政季度。

The June quarter was another productive quarter for the company. as we continue to stress in both sides of our balance sheet. During the quarter, we reduced the investment portfolio of weighted average debt to EBITDA from 3.5 times to 3.4 times.

六月季度對公司來說又是豐收的季度。我們繼續在資產負債表的兩側施加壓力。本季度，我們將投資組合的加權平均負債與EBITDA比率從3.5倍降至3.4倍。

The investment revenue kick rate from 7.6% and to 5.8% and our non-accrual rate from 1.7% to 0.8% of the investment portfolio of fair value. These metrics, coupled with corporate leverage of 0.82 times and a weighted average yield on debt investments of 11.8% provides shareholders with an attractive risk return profile to support both our regular and supplemental dividend looking forward to the future.

投資收益踢出率從 7.6% 降至 5.8%，不提列率從投資組合公允價值的 1.7% 降至 0.8%。這些指標，加上 0.82 倍的公司槓桿率和 11.8% 的債務投資加權平均收益率，為股東提供了具有吸引力的風投回報狀況，以支持我們未來的定期和補充股息。

During the first fiscal quarter, we generated pretax net investment income of $0.61 per share. Additionally, as a result of harvesting $27.2 million in realized gains from two equity investment exits during the quarter, we're able to increase our undistributed taxable income balance to $1 per share from $0.79 per share as of the end of the prior quarter.

在第一個財政季度，我們產生了每股 0.61 美元的稅前淨投資收益。此外，由於本季從兩次股權投資退出中獲得了 2,720 萬美元的已實現收益，我們能夠將未分配應稅收入餘額從上一季末的每股 0.79 美元增加到每股 1 美元。

Furthermore, as previously announced, we transitioned our regular dividend payment frequency from quarterly to monthly. We believe that transitioning to a monthly regular dividend is a shareholder-friendly initiative that will benefit all stakeholders of Capital Southwest.

此外，正如先前宣布的那樣，我們將定期股息支付頻率從每季改為每月。我們相信，過渡到每月定期分紅是一項對股東有利的舉措，將使 Capital Southwest 的所有利益相關者受益。

Our Board of Directors has declared a total of $0.58 in regular dividends for the quarter, payable monthly in each of July, August, and September 2025, and has also declared a quarterly supplemental dividend of $0.06 per share. bringing total dividends declared for the September quarter to $0.64 per share.

我們的董事會已宣布本季的常規股息總額為 0.58 美元，分別於 2025 年 7 月、8 月和 9 月每月支付，同時還宣布每股 0.06 美元的季度補充股息，使 9 月季度宣布的股息總額達到每股 0.64 美元。

On the capitalization front, we received final approval from the FDA for our second SBIC license during the quarter, which allows us to access up to $175 million in additional SBA debentures over time. Additionally, we increased our existing ING-led corporate credit facility by $25 million, bringing total commitments to $510 million.

在資本化方面，我們在本季度獲得了 FDA 對我們第二個 SBIC 許可證的最終批准，這使我們能夠隨著時間的推移獲得高達 1.75 億美元的額外 SBA 債券。此外，我們將現有的由 ING 主導的企業信貸額度增加了 2,500 萬美元，使總承諾額達到 5.1 億美元。

Finally, we raised $42 million in gross equity proceeds during the quarter through our equity ATM program at a weighted average share price of $20.50 per share or 123% of the prevailing NAV per share. We are pleased with the progress we have made on the capitalization front, and we'll continue to take measures to further improve our balance sheet as we look ahead.

最後，我們在本季透過股權 ATM 計畫籌集了 4,200 萬美元的總股權收益，加權平均股價為每股 20.50 美元，佔每股現行資產淨值的 123%。我們對資本化的進展感到滿意，展望未來，我們將繼續採取措施進一步改善我們的資產負債表。

From an originations perspective, we took a conservative approach to underwriting this quarter due to the noise and uncertainties related to tariffs and government policies impacting health care and government services. Despite this noise, deal flow in the lower middle market remained solid this quarter with $115 million in total new commitments to three new portfolio companies and 12 existing portfolio companies.

從發起的角度來看，由於與影響醫療保健和政府服務的關稅和政府政策相關的噪音和不確定性，我們本季採取了保守的承保方式。儘管有這些噪音，本季中低端市場的交易流仍然保持穩定，向三家新投資組合公司和 12 家現有投資組合公司的新承諾總額為 1.15 億美元。

And on financings continue to be an important source of origination for us as approximately 55% of the total capital commitments during the quarter were follow-on offerings in performing portfolio companies.

融資繼續成為我們的重要資金來源，因為本季約有 55% 的總資本承諾是對錶現良好的投資組合公司的後續發行。

Over the last 12 months, add-ons as a percentage of total new commitments have been 38%, so clearly a strong source of origination volume in deals we know well and have experience with the management team and sponsor.

在過去的 12 個月中，附加投資佔新承諾總額的百分比為 38%，因此，這顯然是我們熟悉並與管理團隊和發起人有合作經驗的交易中發起量的重要來源。

Looking ahead, we have seen a distinct pickup in the volume and quality of deals in the past six weeks. As such, we are anticipating significant activity in terms of new platform company originations as well as add-on activity in the existing portfolio.

展望未來，我們看到過去六週交易的數量和品質明顯回升。因此，我們預計新平台公司成立以及現有投資組合的附加活動將會顯著成長。

Finally, from a BDC perspective, there's been some long-awaited progress on the AFFE rule for affiliated fund fees and expenses. On June 23, 2025, there was a unanimous house passage of the access to Small Business Investor Capital Act, which corrects the misleading FCC disclosure requirement that overstates the actual cost of investment in BDC. The bill will accept funds that invest in BDCs from including the acquired fund fees and expenses this calculation in the prospectus speed table providing more accurate information for investors.

最後，從 BDC 的角度來看，附屬基金費用和開支的 AFFE 規則取得了一些期待已久的進展。2025 年 6 月 23 日，眾議院一致通過了《小企業投資者資本准入法案》，該法案糾正了 FCC 誤導性的披露要求，該要求誇大了對 BDC 的實際投資成本。該法案將接受投資於BDC的基金將收購基金的費用和開支納入招股說明書速度表中進行計算，為投資者提供更準確的資訊。

The BDCs are exempt from the AFFE rule, that could significantly increase trading volumes in the sector, especially through mutual funds and ETF. If you recall, the onset of this rule in 2014 precipitated the Russell and S&P to remove BDCs from their indices. So we believe the impact of this corrective legislation could be meaningful. I will now hand the call over to Josh to review more specifics on our investment activity and the market environment.

BDC 不受 AFFE 規則的約束，這可能會顯著增加該行業的交易量，尤其是透過共同基金和 ETF。如果你還記得的話，2014 年該規則的實施促使羅素和標準普爾將 BDC 從其指數中移除。因此我們相信這項糾正立法的影響可能是有意義的。現在我將把電話交給喬希，讓他回顧我們的投資活動和市場環境的更多細節。

Thanks, Michael. This quarter, we deployed a total of $51 million of new committed capital, including $50 million in first lien senior secured debt and $1 million of equity across three new portfolio companies. In addition, we closed add-on financings for 12 existing portfolio companies consisting of $64 million in first lien senior secured debt and $1 million in equity.

謝謝，麥可。本季度，我們總共投入了 5,100 萬美元的新承諾資本，其中包括 5,000 萬美元的優先留置權優先擔保債務和 100 萬美元的股權，涉及三家新的投資組合公司。此外，我們也為 12 家現有投資組合公司完成了附加融資，包括 6,400 萬美元的優先留置權優先擔保債務和 100 萬美元的股權。

Our on-balance sheet credit portfolio ended the quarter at $1.6 billion, representing a year-over-year growth of 21% from $1.3 billion as of June 2024. For the current quarter, 100% of the new portfolio company debt originations were first lien senior secured.

我們的表內信貸組合本季末為 16 億美元，較 2024 年 6 月的 13 億美元年增 21%。本季度，新投資組合公司 100% 的債務均以優先留置權擔保。

And as of the end of the quarter, 99% of the credit portfolio was first lien senior secured with a weighted average exposure per company of only 0.9%. 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.

截至本季末，99% 的信貸組合均為優先留置權擔保，每家公司的加權平均風險敞口僅為 0.9%。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。

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 provided important guidance and leadership to the portfolio of companies as well as the potential for junior capital support if needed.

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，這些公司為公司組合提供了重要的指導和領導，並在需要時提供了初級資本支持的潛力。

In the lower middle market, we often have the opportunity to invest on a minority basis in the equity of our portfolio companies period pursue with the private equity firm when we believe the equity thesis is combo. As of the end of the quarter, our equity co-investment portfolio consisted of 80 investments with a total fair value of $166 million, representing 9% of our total portfolio at fair value.

在中低端市場，當我們認為股權理論是組合時，我們經常有機會與私募股權公司一起以少數股權的形式投資於我們投資組合公司的股權。截至本季末，我們的股權共同投資組合由 80 項投資組成，總公允價值為 1.66 億美元，占我們總投資組合的 9%（以公允價值計算）。

Our equity portfolio was marked at 125% of our costs, representing $33.2 million in embedded unrealized appreciation or $0.60 per share. 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 from strategic add-on acquisitions.

我們的股票投資組合以成本的 125% 計價，相當於 3,320 萬美元的內含未實現增值或每股 0.60 美元。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，以及戰略附加收購帶來的巨大價值增值潛力。

Equity investments across our portfolio provide our shareholders with the potential for asset value appreciation as well as equity distributions to Capital Southwest over time. This is playing out in real time, as this quarter, we harvested two sizable equity exits, which generated $27.2 million in realized gains.

我們投資組合中的股權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 進行股權分配的潛力。這是即時發生的，因為本季度，我們收穫了兩次大規模的股權退出，產生了 2720 萬美元的已實現收益。

Over the past two quarters, our equity portfolio has produced $41.3 million in total realized gains. As noted earlier, these realized gains grow our UTI balance and thus support both regular and supplemental dividends going forward.

在過去兩個季度中，我們的股票投資組合已實現總收益 4,130 萬美元。如前所述，這些已實現的收益增加了我們的 UTI 餘額，從而支持未來的常規股息和補充股息。

Consistent with previous quarters, the lower middle market continues to be quite competitive as this segment of the market is highly attractive to both bank and non-bank lenders. While this has resulted in tight loan pricing for high-quality opportunities that are not exposed to the macroeconomic uncertainty, the depth and strength of the relationships our team has cultivated over the years has continued to result in our sourcing and winning opportunities with attractive risk return profiles.

與前幾季一致，中低端市場繼續保持相當激烈的競爭，因為這一市場領域對銀行和非銀行貸款機構都具有很大的吸引力。雖然這導致不受宏觀經濟不確定性影響的高品質機會的貸款定價趨緊，但我們團隊多年來培養的深度和實力繼續使我們找到並贏得具有誘人風險回報狀況的機會。

As a point of reference, currently, there are 80 unique private equity firms represented across our investment portfolio. Additionally, in the last 12 months, we closed 13 new platforms with financial sponsors with which we had not previously closed the deal, demonstrating our continued penetration in the market.

作為參考，目前我們的投資組合中有 80 家獨特的私募股權公司。此外，在過去的 12 個月中，我們與先前未曾達成交易的金融贊助商建立了 13 個新平台，這表明我們在市場上的持續滲透。

Since the launch of our credit strategy, we have completed transactions with over 119 different private equity firms across the country, including over 20% with which we have completed multiple transactions. Our portfolio currently consists of 122 different companies weighted 89.6% to first lien senior secured debt, 1% to second lien senior secured debt and 9.3% to equity co-investments.

自從我們的信貸策略推出以來，我們已經與全國超過 119 家不同的私募股權公司完成了交易，其中超過 20% 的公司與我們完成了多筆交易。我們的投資組合目前由 122 家不同的公司組成，其中第一留置權優先擔保債務佔 89.6%，第二留置權優先擔保債務佔 1%，股權共同投資佔 9.3%。

The credit portfolio had a weighted average yield of 11.8% and a weighted average leverage through our security of 3.4 times EBITDA. We continue to be pleased with the operating performance across our loan portfolio. We have recently changed our loan grade structure from a 4-point scale to a 5-point scale. We have made this change in order to provide additional transparency for our shareholders. All of our loans upon origination are initially assigned an investment rating of two on a 5-point scale, with 1 being the highest and 5 being the lowest rate.

信貸組合的加權平均收益率為 11.8%，透過我們的證券實現的加權平均槓桿為 EBITDA 的 3.4 倍。我們繼續對整個貸款組合的經營業績感到滿意。我們最近將貸款等級結構從 4 分制改為 5 分制。我們做出這項改變是為了向股東提供額外的透明度。我們發放的所有貸款在發放時均會先獲得 5 分制中的 2 分投資評級，其中 1 分最高，5 分最低。

Overall, the portfolio remains healthy with approximately 92% of the portfolio at fair value, rated in one of the top two categories, a 1 or a 2.

整體而言，投資組合保持健康，約 92% 的投資組合處於公允價值，評級為前兩個類別之一，即 1 或 2。

Cash flow coverage of debt service obligations across the portfolio remains robust at 3.5 times, with our loans across the portfolio, averaging approximately 42% of portfolio company enterprise value. We believe these performance metrics are indicative of a well-performing and conservatively structured portfolio.

整個投資組合的債務償還義務的現金流量覆蓋率仍然保持強勁，為 3.5 倍，整個投資組合的貸款平均約佔投資組合公司企業價值的 42%。我們相信這些績效指標顯示投資組合表現良好且結構保守。

Our portfolio continues to be broadly diversified across industries our average exposure for our company is less than 1% of investment assets, which gives us great comfort in the overall risk profile of our portfolio.

我們的投資組合繼續在各個行業廣泛分散，我們公司的平均風險敞口不到投資資產的 1%，這讓我們對投資組合的整體風險狀況感到非常放心。

For the deals we are currently underwriting they continue to have tight covenant packages loan-to-value levels ranging from 35% to 50%, resulting in significant equity capital accretion below our debt and reasonable leverage levels of 2.5 times to 4 times debt to EBITDA.

對於我們目前正在承銷的交易，它們繼續具有嚴格的契約方案，貸款價值比水平從 35% 到 50% 不等，從而導致我們的債務下方的股權資本大幅增加，並且債務與 EBITDA 之比的槓桿水平合理，為 2.5 倍到 4 倍。

As Michael mentioned earlier, we believe our balance sheet is well positioned with low leverage and significant liquidity, which should allow us to be opportunistic should the market become less competitive, resulting in more attractive risk return profile deals. I will now hand the call over to Chris to review the specifics of our financial performance for the quarter.

正如邁克爾之前提到的，我們相信我們的資產負債表處於良好狀態，槓桿率低，流動性強，這應該使我們能夠在市場競爭變得不那麼激烈時抓住機會，從而獲得更具吸引力的風險回報交易。我現在將把電話交給克里斯，讓他回顧我們本季財務表現的具體情況。

Thanks, Josh. Specific to our performance for the quarter, pretax net investment income was $32.7 million, or $0.61 per share. For the quarter, total investment income increased to $55.9 million from $52.4 million in the prior quarter.

謝謝，喬希。具體到本季的業績，稅前淨投資收入為 3,270 萬美元，即每股 0.61 美元。本季度，總投資收入從上一季的 5,240 萬美元增至 5,590 萬美元。

The increase was driven by a $5.2 million increase in cash interest and dividend income, offset by a decrease of $900,000 in fees and a decrease of $700,000 in PIC income compared to the prior quarter. Importantly, PIC as a percentage of our total investment revenue decreased to 5.8% compared to 7.6% in the prior quarter.

這一增長是由於現金利息和股息收入增加了 520 萬美元，但與上一季相比，費用減少了 90 萬美元，PIC 收入減少了 70 萬美元。重要的是，PIC 占我們總投資收入的百分比從上一季的 7.6% 下降到 5.8%。

Additionally, as of the end of the quarter, our loans on non-accrual represented 0.8% of our investment portfolio at fair value, a decrease from 1.7% as of the end of the prior quarter.

此外，截至本季末，我們的非應計貸款占我們投資組合公允價值的 0.8%，低於上一季末的 1.7%。

During the quarter, we paid out $0.58 per share regular dividend and a $0.06 per share supplemental dividend. As mentioned earlier, we have transitioned the frequency of our regular dividend payment to monthly, with our Board declaring a total of $0.58 per share in regular dividends for the quarter, payable monthly in each of July, August, and September 2025, while also maintaining a quarterly supplemental dividend at $0.06 per share bringing total dividends to $0.64 per share for the September 2025 quarter.

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，我們已將定期股息支付頻率改為每月支付，董事會宣布本季​​定期股息總額為每股 0.58 美元，分別於 2025 年 7 月、8 月和 9 月每月支付，同時維持每股 0.06 美元的季度補充股息，使 2025 年 9 月季度的總股息達到每股 0.64 美元。

We continued our strong track record of regular dividend coverage with 106% coverage for the 12 months ended June 30, 2025, and 110% cumulative coverage since the launch of our credit strategy. We are confident in our ability to continue to distribute quarterly supplemental dividends based upon our current UTI balance of $1 per share and the expectation that we will continue to harvest gains over time from our sizable unrealized appreciation balance on the equity portfolio.

我們持續維持良好的定期股利覆蓋率記錄，截至 2025 年 6 月 30 日的 12 個月的覆蓋率為 106%，自推出信貸策略以來的累積覆蓋率為 110%。我們有信心，我們有能力根據我們目前每股 1 美元的 UTI 餘額繼續分配季度補充股息，並且我們預計隨著時間的推移，我們將繼續從股票投資組合中大量未實現的增值餘額中獲得收益。

LTM operating leverage ended the quarter at 1.7%. Looking ahead, we anticipate our run rate operating leverage to be in the 1.4% to 1.5% range by the end of our current fiscal year. Our operating leverage is significantly better than the BDC industry average of approximately 2.7% and what we believe this metric speaks to the benefits of the internally managed BDC model and our absolute alignment with shareholders.

本季末 LTM 營業槓桿為 1.7%。展望未來，我們預計到本財年末，我們的營運率營運槓桿將達到 1.4% 至 1.5% 的範圍內。我們的經營槓桿明顯高於 BDC 產業約 2.7% 的平均水平，我們認為這項指標體現了內部管理的 BDC 模式的優勢以及我們與股東的絕對一致。

The internally managed model happens 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 grow and manage a best-in-class BDC.

內部管理模式將會持續產生真正的固定成本槓桿，同時允許將大量資源投入到人員和基礎設施中，因為我們將繼續發展和管理一流的 BDC。

The company's NAV per share at the end of the quarter was $16.59 per share, a decrease from $16.70 per share in the prior quarter. The primary driver of the NAV per share decline was the annual issuance of restricted stock compensation to employees during the quarter.

該公司本季末的每股淨資產值為 16.59 美元，低於上一季的每股 16.70 美元。每股淨值下降的主要原因是本季向員工發放年度限制性股票補償。

We are pleased to report that our balance sheet liquidity is robust, with approximately $444 million in cash and undrawn leverage commitments on our two credit facilities, which represents 2 times the $223 million of unfunded commitments we had across our portfolio as of the end of the quarter.

我們很高興地報告，我們的資產負債表流動性強勁，我們的兩筆信貸安排中約有 4.44 億美元的現金和未提取的槓桿承諾，相當於截至本季度末我們整個投資組合中 2.23 億美元未動用資金承諾的兩倍。

During the June quarter, we increased our corporate credit facility by $25 million, bringing total commitments on the facility to $510 million. Additionally, as of the end of the June quarter, 48% of our capital structure liabilities were in unsecured covenant-free bonds with our earliest debt maturity in October 2026.

在六月季度，我們將企業信貸額度增加了 2,500 萬美元，使該額度的總承諾金額達到 5.1 億美元。此外，截至 6 月季度末，我們 48% 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 10 月。

As previously mentioned, during the June quarter, we received final approval from the FDA for our second SBIC license. This license allows us to access up to $175 million in additional SBA debentures over time, which is a cost-effective way to finance our lower middle market investment strategy.

如前所述，在六月季度，我們獲得了 FDA 對我們第二個 SBIC 許可證的最終批准。該許可證允許我們隨著時間的推移獲得高達 1.75 億美元的額外 SBA 債券，這是為我們的中低端市場投資策略提供資金的一種經濟有效的方式。

Our regulatory leverage ended the quarter at a debt-to-equity ratio of 0.82 to 1, down from 0.89 to 1 as of the prior quarter, while our optimal target leverage continues to be in the 0.8 to 0.95 range. We are weighing the impact of the current macroeconomic landscape and intend to maintain our regulatory leverage cushion, which will mitigate capital markets volatile.

本季末，我們的監管槓桿率為債務權益比 0.82 比 1，低於上一季的 0.89 比 1，而我們的最佳目標槓桿率仍然在 0.8 至 0.95 範圍內。我們正在權衡當前宏觀經濟情勢的影響，並打算維持我們的監管槓桿緩衝，這將減輕資本市場的波動。

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 construction with adequate covenant cushions. I will now hand the call back to Michael for some final comments.

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結構以及充足的契約緩衝。我現在將把電話交還給邁克爾，請他發表一些最後的評論。

Thank you, Chris, Josh, and Amy and all the employees who help us tell the story on a quarterly basis. And thank you, everyone, for joining us today. This concludes our prepared remarks. Operator, we are ready to open the lines up for Q&A.

感謝克里斯、喬希、艾米以及所有幫助我們每季講述故事的員工。感謝大家今天的參與。我們的準備好的演講到此結束。接線員，我們已準備好開放問答線路。

(Operator Instructions)

（操作員指示）

Doug Harter, UBS.

瑞銀的道格·哈特。

Can you just talk a little bit more about the competitive landscape right now? And kind of how do you see that sort of playing out over the coming quarters?

能否再多談談目前的競爭格局？您認為未來幾季這種情況會如何發展？

Yeah. I mean, there's a bit of a supply-demand dynamic here. And if you think about the supply, there's private equity sponsors have turned their attention away from consumer discretionary businesses a little bit as well as companies with international supply chain. So there's a little bit of a scarcity of quality assets out there. And there's a bit of a pullback in the supply a little bit.

是的。我的意思是，這裡有一點供需動態。如果你考慮一下供應，你會發現私募股權發起人已經將注意力從非必需消費品企業以及擁有國際供應鏈的公司轉移開來。因此，優質資產有點稀缺。供應量略為回落。

And then on the demand side, you have banks and non-bank lenders continue to be aggressive and incentivized to deploy capital. So we've seen spread compression over the last six months or so. while we have seen that spread compression that the structures, which is something we focus on heavily on loan-to-value, leverage, quality credit agreements, those kinds of things have stayed as we stayed prudent on structuring. So we've been able to continue to deploy capital and leverage the relationships to continue to find opportunities. So yes, it's continued to be competitive.

然後在需求方面，銀行和非銀行貸款機構繼續積極並有動力部署資本。因此，我們在過去六個月左右的時間裡看到了利差壓縮。雖然我們看到了結構上的利差壓縮，但我們重點關注的是貸款價值比、槓桿率、優質信貸協議，由於我們在結構上保持謹慎，所以這些事情一直保持不變。因此，我們能夠繼續部署資本並利用關係來繼續尋找機會。所以是的，它仍然具有競爭力。

It always has been competitive, but we've been able to compete candidly. And so we've got a lot of good traction in this upcoming quarter as well.

競爭一直都很激烈，但我們能夠坦誠地競爭。因此，我們在即將到來的季度也取得了很多良好的進展。

I mean our overall weighted average spread has been two years ago, it was 850. Currently, it's around 750. The deals that we saw in this previous quarter were around 7% over and the deals that we're looking at in a very robust September quarter, around 7% -- a little north of 7% as well. So to Josh's point, even though things are compressed, we still are able to find our remarks.

我的意思是，我們的整體加權平均利差兩年前是 850。目前約750。我們在上一季看到的交易量高出了約 7%，而我們在非常強勁的 9 月季度看到的交易量也高出了約 7%——略高於 7%。所以正如喬希所說，儘管內容被壓縮了，我們仍然能夠找到我們的評論。

Got it. I mean, I guess, how do you think about is whether there is actually a floor on that around, do you think that's going to be able to hold 7% if kind of that supply-demand imbalance kind of continues? Just how do you think about kind of any floor on spreads?

知道了。我的意思是，我想，您認為這是否真的存在一個底線，如果這種供需失衡持續下去，您認為這是否能夠保持 7% 的水平？您如何看待利差的底線？

It feels like it has settled to some degree. What we've seen is lower middle market credits that are extremely tight have been as low as 5.25, which is 125 to 150 basis points tighter than what we used to. But there still are plenty of deals that are still somewhere between the 5.25 and 7.50 to 8. We have a pretty wide group of sponsors that we work with.

感覺好像已經在某種程度上穩定下來了。我們看到，極度緊張的中低階市場信貸利率已低至 5.25，比過去的水平緊縮了 125 至 150 個基點。但仍有許多交易的價格在 5.25 到 7.50 到 8 之間。我們與眾多贊助商合作。

We're also willing to be originating deals on the smaller side. So $3 million to $6 million EBITDA companies that are probably garnering closer to 650 over. So again, still being able to find further marks. And I do think that as SOFR comes down, is history would tell us that the spreads will probably widen out. And so we might be at that kind of at the trough right now.

我們也願意發起規模較小的交易。因此，EBITDA 為 300 萬至 600 萬美元的公司可能獲得的利潤接近 650 億美元。因此，仍然能夠找到進一步的標記。我確實認為，隨著 SOFR 下降，歷史會告訴我們利差可能會擴大。所以我們現在可能正處於這樣的低谷。

Mickey Schleien, Clear Street.

米奇‧施萊恩 (Mickey Schleien)，清晰街道。

Michael, we received sort of mixed signals on the M&A market. Most folks are claiming it's still pretty muted relative to where it was a couple of years ago. But you're pretty optimistic. It sounds like on your third calendar quarter and the fourth calendar quarter tends to be the busiest. So I'm assuming the second half looks pretty good. What's underpinning that optimism in a market that seems to be sort of trudging along.

邁克爾，我們在併購市場上收到了一些混合訊號。大多數人聲稱，與幾年前相比，它仍然相當低迷。但你相當樂觀。聽起來，第三季和第四季往往是最忙碌的。所以我認為下半場看起來相當不錯。在市場似乎步履維艱的情況下，是什麼支撐了人們的樂觀情緒？

So I would say some of the deals that were in the June quarter bled over into the September quarter. I mean I can tell you right now, we've closed $110 million of originations through this morning. And we have another $40 million in deals that are signed up and that would be pending close later this month.

所以我想說，六月季度的一些交易延續到了九月季度。我的意思是我現在就可以告訴你，截至今天早上我們已經完成了 1.1 億美元的貸款。我們還簽署了另外 4000 萬美元的交易，預計將於本月晚些時候完成。

So we already know we're probably at 150, and then there's a number of deals that we're in the mix for. So I think where we live in the lower middle market, we've seen plenty of deal activity. And I think Josh chime in as well, it feels like quality deals.

所以我們已經知道我們可能有 150 個，然後我們正在進行一些交易。所以我認為，在我們所在的中低階市場，我們已經看到了很多交易活動。我想喬希也同意這一點，這感覺像是高品質的交易。

Yeah, I think when I talk to other lower middle market lenders, they are very surprised at how full our pipeline is. And I really do think that speaks to the efforts we put for us in the last three years, four years, five years in cultivating private equity relationships to put us in a position to see all their deal flow or the majority of their deal flow. And so I do think that, that's paying dividends now and will continue to in the future.

是的，我想當我與其他中低端市場貸款機構交談時，他們對我們的管道如此充足感到非常驚訝。我確實認為，這說明了我們在過去三年、四年、五年裡為培養私募股權關係所付出的努力，使我們能夠了解他們的所有交易流程或大部分交易流程。所以我確實認為，這現在正在帶來回報，並且將來會繼續帶來回報。

And on the flip side, do you have any insight into prepayment or repayment activity in the third and fourth quarter?

另一方面，您對第三季和第四季的預付款或還款活動有何了解？

So we just saw -- we had $80 million-plus of repayments in this quarter, so it was obviously a heavy quarter. We do have a few companies that we know are going to market some larger holds. So that's probably closer in the December quarter. Aside from that, I mean, I don't think we have a beat on the September quarter, we really don't have much of anything in the pipeline at this point.

所以我們看到——本季我們有超過 8000 萬美元的還款，所以這顯然是一個繁忙的季度。我們確實知道有幾家公司將要銷售一些較大的產品。因此，12 月季度的情況可能會更接近。除此之外，我認為我們在 9 月季度的業績不會超過預期，目前我們確實沒有太多計劃。

That's good news. My last question relates to your operating leverage. I looked at the page in the presentation, and it looks like it's sort of bottomed out at 1.7%. Is that where we can expect it to stay? Or do you think there's some more leverage there that can be extracted as you continue to grow?

這是個好消息。我的最後一個問題與您的經營槓桿有關。我看了簡報中的頁面，看起來它已經跌至 1.7% 的底部。我們可以期待它停留在那裡嗎？或者您認為隨著公司不斷發展，您還能獲得更多的槓桿作用嗎？

This is definitely coming down. So the metric for the quarter based on actuals for the LTM was 1.7 The run rate was 1.6 trying to be down to 1.5. And we would tell you we sometimes accrue additional bonus during the year before our final decision at the end of the year where the Board makes a decision on bonus. So maybe we have an over accrual. But we would tell you the run rate when it all settles for this year should be 1.4 or 1.5. And we still think there will be room to continue to reduce that over time.

這肯定會下降。因此，基於LTM實際數據，本季的指標為1.7。運行率為1.6，試圖將其降至1.5。我們有時會在年底董事會就獎金做出最終決定之前，在年內累積額外獎金。因此，我們可能存在過度累積的情況。但我們會告訴你，今年一切塵埃落定後，運行率應該是1.4或1.5。而且我們仍然認為，隨著時間的推移，這個數字仍有繼續下降的空間。

While we're -- and I would say this as well, while still reducing -- increasing our staff and paying our people, we think that there's -- obviously, this internally managed structure has a lot of benefits from that perspective, and we expect that to continue to be a strong point for us, especially with rates coming back in. That's going to be a big differentiator for our business model relative to certainly the externals as rates come in.

雖然我們——我也想這麼說——在增加員工和支付員工薪資的同時，我們認為——顯然，從這個角度來看，這種內部管理結構有很多好處，我們預計這將繼續成為我們的優勢，尤其是在利率回升的情況下。隨著利率的上升，這將成為我們商業模式相對於外部因素的一大差異。

Yeah, I agree with that. And I just want to make sure I understood what you said 1.4 to 1.5 run rate in the fourth calendar quarter. So that's the fourth quarter annualized rate.

是的，我同意。我只是想確保我理解了您所說的第四季度 1.4 到 1.5 的運行率。這就是第四季的年化率。

So for the March 31 quarter, the LTM number, we believe, will be 1.4 or 1.5.

因此，我們認為，對於 3 月 31 日當季，LTM 數字將為 1.4 或 1.5。

And Mickey, just to give you a sense for the current quarter, for the 6/30 quarter, the quarter was 1.5%. So we're just -- if the LTM has some overhang from some of the onetime expenses incurred in the prior quarter. So we're running sort of at 1.5, which we expect to continue to come down on an LTM basis, as Michael described.

米奇，只是為了讓你了解當前季度的情況，對於 6 月 30 日的季度，該季度為 1.5%。所以我們只是——如果 LTM 有一些來自上一季發生的一次性費用的負擔。因此，我們的運行速度約為 1.5，正如邁克爾所描述的，我們預計它將在 LTM 基礎上繼續下降。

Okay. And in terms of leverage, Michael, you've tapped into the ATM, but the balance sheet leverage is not particularly high. Can we expect you to continue to issue common equity at sort of the pace that you've been at? Or do you prefer to lever up the balance sheet a little bit and maybe optimize your returns?

好的。就槓桿而言，邁克爾，你已經利用了 ATM，但資產負債表槓桿並不是特別高。我們是否可以期待您繼續以目前的速度發行普通股？或者您希望稍微提高資產負債表並優化您的回報？

Well, so leverage came down this quarter, probably mainly because we had so much in repayments during the quarter and that sort of that happened late stage. I think that I think Chris has said in the past, we're raising about $40 million to $60 million on a given quarter.

嗯，本季槓桿率下降了，可能主要是因為我們在本季償還了太多款項，而且這種情況發生在後期。我認為克里斯過去曾說過，我們在一個季度籌集了大約 4000 萬至 6000 萬美元。

And I think that you should expect that each quarter will look like that. I think we'd like to be closer to 0.85 leverage. And I could also say that it wouldn't bother me if our portfolio is in as good a shape as it is today with our debt-to-EBITDA and our fixed charge covenants, we could maybe move closer to 0.9. So we're certainly at a low quintal leverage at the moment.

我認為你應該預料到每季都會是這樣的。我認為我們希望槓桿率更接近 0.85。我還可以說，如果我們的投資組合狀況像現在這樣良好，加上我們的債務與EBITDA之比以及固定費用契約，我們或許可以接近0.9，這對我來說並不是什麼問題。所以，我們目前的公擔槓桿率確實很低。

Yes. And part of it, we try to be consistent, Mike, and as Michael said, we're raising, if you look at the last kind of five or six quarters. it's about exactly an average of $40 million a quarter. So we try to be consistently in the market. Some of the deals, as Michael described, pushed into July, which optically made the June leverage a little bit low.

是的。其中一部分原因是，我們試圖保持一致，麥克，正如邁克爾所說，我們正在籌集資金，如果你看看過去五到六個季度的情況，平均每個季度大約是 4000 萬美元。因此，我們努力保持市場穩定。正如邁克爾所描述的，一些交易推遲到了 7 月份，這從視覺上使得 6 月份的槓桿率略低。

I would expect we'll be in the 0.85 to 0.9 range sort of in the September and December quarter. So that seems about right.

我預計 9 月和 12 月季度我們的數據將處於 0.85 到 0.9 的範圍內。這看起來是對的。

And philosophically, most BDCs or many BDCs sort of run it, more like 1.1%. Obviously, you're in the lower middle market and maybe that causes you to be a little bit more conservative. But conceptually, why not run the balance sheet with a little bit more leverage than you've been doing recently?

從哲學上講，大多數 BDC 或許多 BDC 都以某種方式運行它，更像是 1.1%。顯然，您處於中低端市場，這也許會讓您變得更加保守。但從概念上講，為什麼不使用比最近更高的槓桿來運行資產負債表呢？

Yes. I think the fact of the matter is that we're able to find yield kind of way Josh described earlier and meet or exceed analyst expectations, how operating leverage where it needs to be. We don't really feel like the need to reach additional leverage necessarily. All of these metrics can move around over time. But generally speaking, we're going to take a more conservative bend.

是的。我認為事實是，我們能夠找到喬希之前描述的那種收益方式，並滿足或超越分析師的預期，以及經營槓桿率應達到什麼水準。我們並不覺得有必要達到額外的槓桿作用。所有這些指標都會隨著時間的推移而改變。但整體來說，我們會採取更保守的立場。

Especially we're a smaller BDC, right? I think we earned our credibility in the market, but we still believe having a conservative infrastructure, having conservative leverage communicates to the market sort of the way we do business here, and we think that to probably help our price to book in the end.

尤其是我們是一家規模較小的 BDC，對嗎？我認為我們在市場上贏得了信譽，但我們仍然相信，擁有保守的基礎設施、保守的槓桿可以向市場傳達我們在這裡開展業務的方式，我們認為這可能最終有助於我們的價格達到預定水平。

Robert Dodd, Raymond James.

羅伯特多德、雷蒙德詹姆斯。

If I can go back to kind of the competitive environment for a moment. To your point, with the leverage you're doing 2.5% to 4%. I mean banks can kind of play in that market and keep those loans on balance sheet. And you mentioned, I mean, obviously, that it can be attractive to them. Where would the banks tend to boom and bust, whether they're actually targeting the market.

如果我可以暫時回到競爭環境。正如您所說，槓桿率為 2.5% 到 4%。我的意思是銀行可以在該市場中發揮作用並將這些貸款保留在資產負債表上。正如您所提到的，我的意思是，顯然，這對他們來說很有吸引力。無論銀行是否真正瞄準市場，它們的繁榮與蕭條都會在哪裡發生。

So where would you say the competitive pressure from banks is right now in terms of how it flows through a cycle. I mean, are they being pretty pushy right now? And is that one of the factors driving down the spreads? Or are they more moderate placed as to where you'd view their level of aggression, if I can put it that way.

那麼，就其在周期中如何流動而言，您認為目前銀行的競爭壓力在哪裡？我的意思是，他們現在是不是太咄咄逼人了？這是導致利差下降的因素之一嗎？或者，如果我可以這樣說的話，他們是否處於更溫和的位置，以便您可以看到他們的攻擊性程度。

Yeah, you're spot on there, boom or bust. And right now, they're boom, they're risk on from what I'm seeing, and they're competing with us because you're right, the leverage profile that we generally are seeing banks can be competitive there. We have other ways to compete with banks. But candidly, it's tough for sponsors to turn down 150 or 200 basis points lower pricing when they have the opportunity to do it. So right now, banks are being competitive.

是的，你說得對，無論是繁榮還是蕭條。而現在，他們正在蓬勃發展，從我所看到的情況來看，他們正在承擔風險，他們正在與我們競爭，因為你是對的，我們通常看到的銀行的槓桿狀況在那裡具有競爭力。我們有其他方法與銀行競爭。但坦白說，當發起人有機會拒絕 150 或 200 個基點的較低定價時，他們很難拒絕。因此，目前銀行之間的競爭十分激烈。

It definitely is one of the factors driving the lower spreads. But you're right, they will be risk off at some point. I pretty tough for me to predict when that will be, but they will be and that might be a factor for spreads to widen out a little bit.

這無疑是推動利差降低的因素之一。但您說得對，他們最終會在某個時候規避風險。我很難預測什麼時候會發生這種情況，但這種情況一定會發生，這可能是利差稍微擴大的一個因素。

Got it. Yeah, one of the other advantages of being an internally managed BDC as we see from some of your internal managed peers as you can run an asset manager. And you've talked about that. And it feeds from the asset and manage to accrue to shareholders benefit rather than sub external managed benefit.

知道了。是的，正如我們從一些內部管理的同行那裡看到的那樣，作為內部管理的 BDC 的另一個優勢是您可以運行資產管理器。您已經談論過這個了。它從資產中獲取收益並設法為股東帶來利益，而不是從外部管理的利益。

You talked about that before. Are there any updates on efforts in that -- on that front about adding an asset management kind of vehicle within the BDC to benefit ROE lower your effective efficiency ratio, et cetera? Any updates there?

您之前談過這個。這方面有進展嗎？在 BDC 內增加資產管理類工具以提高 ROE、降低有效效率比率等等？有任何更新嗎？

So yes, we're continuing to pursue those type of options. We're probably also looking at a strategic initiative to maybe look to enhance earnings and origination capabilities on some of the larger deals, which -- nothing I want to formally state now. But certainly, that would help capture additional yield while winning deals within our same bailiwick.

是的，我們會繼續尋求這類選擇。我們可能還在考慮一項策略性舉措，以尋求提高一些較大交易的獲利和發起能力，我現在還不想正式聲明。但可以肯定的是，這將有助於獲取額外的收益，同時贏得同一領域內的交易。

So lower middle market feel maybe between $8 million and $15 million, which we typically having to share those companies out with no economics, finding ways to structure those assets with other partners to basically maintain the assets and maybe bring in the scrape and the management team.

因此，中低端市場的價值可能在 800 萬美元到 1500 萬美元之間，我們通常必須在沒有經濟效益的情況下分享這些公司，尋找與其他合作夥伴建立這些資產的方法，以基本上維護資產，並可能引入管理團隊。

You might not want to formally articulate it, but that's formally enough for me. So thank you on that one. And then last one because I'm not going to touch on AFFE because I don't want to jinx it. To your point on like deployments, it seemed like you were saying you're likely could be 150 plus in September with moderate repayments. The indication from leverage maybe not going up that much, the 0.8% to 0.9%.

您可能不想正式表達它，但對我來說這已經足夠正式了。所以，謝謝你。最後一點，我不想觸及 AFFE，因為我不想為它帶來厄運。對於您提到的類似部署，您似乎是說，透過適度償還，您 9 月的還款額可能會超過 150。槓桿率可能不會上升那麼多，0.8%到0.9%。

We tend to imply that you might be running the like the high end of the range this quarter rather than the average, which is more the low end of the range? I mean am I doing my math like that?

我們傾向於暗示，本季度您可能會運行範圍的高端而不是平均值，哪個更接近範圍的低端？我的意思是我是那樣做數學的嗎？

Yeah, I think that's right. I think this quarter, if we say 40 to 60 and we've sort of been running at 40, you're probably looking at more like 50. But obviously, we'll make that judgment as the knock on wood as some of these deals look like they're going to close. But yes, it's probably more in the 50 range this quarter.

是的，我認為是這樣。我認為，如果我們說這個季度是 40 到 60，而我們目前的運行速度是 40，那麼你可能會看到 50 左右。但顯然，當其中一些交易看起來即將完成時，我們會做出這樣的判斷。但是是的，本季可能在 50 左右。

Erik Zwick, Lucid Capital Markets.

Erik Zwick，Lucid Capital Markets。

Good afternoon, everyone. And just curious, you mentioned the strong pace of originations so far this quarter. I'm curious if you could maybe provide a little color in terms of the breakout between that from new versus add-on opportunities.

大家下午好。只是好奇，您提到了本季迄今為止的強勁發展步伐。我很好奇，您是否可以提供一些關於新機會與附加機會之間的突破的詳細資訊。

This quarter feels like it's fairly robust on the new. So the last quarter, it was like, what, 65, 35. This quarter, yes, the 9/30 numbers look like what, 75% new versus 25% add-ons? .

本季感覺新產品的銷售量相當強勁。所以上個季度，情況是，65，35。本季度，是的，9/30 的數字看起來像什麼，75％是新的，而 25％是附加的？。

Got it. No, it's an interesting change I think as I've look across some of your competitors in the rest of the industry, it's been fairly heavy on the add-ons recently. So switch back to new would indicate maybe kind of more market activity a little more confidence there. So interesting to hear that.

知道了。不，我認為這是一個有趣的變化，因為我看過你們在業內其他地區的一些競爭對手，發現他們最近在附加組件方面投入了相當大的精力。因此，轉換回新的市場可能表示市場活動會更加活躍，信心也會更加足一些。聽到這個消息真有趣。

And then going, I think it was Chris speaking about your confidence in maintaining the dividend, both the regular and the supplemental, given the spillover of the dollar plus the expectation for continued ability to harvest age from the equity portfolio. Within that expectation, does that also include, I guess, the futures curve and just looking at slide 24 in your deck, would indicate if the futures curve, Silvercrest's right, and we do get about 100 basis points of reduction.

然後，我認為克里斯談到了你對維持股息（包括常規股息和補充股息）的信心，考慮到美元的溢出效應以及繼續從股票投資組合中收穫收益的預期。在這個預期範圍內，我猜這是否也包括期貨曲線，只要看一下你的幻燈片中的第 24 張，就會發現期貨曲線，Silvercrest 是正確的，我們確實得到了大約 100 個基點的減少。

There would be maybe a per quarter headwind to the run rate of NII. So is that incorporated in kind of those dividend comments earlier?

NII 的運作率每季可能都會遇到阻力。那麼這是否包含在先前的股息評論中？

Yeah, I'll answer the question. So I mean, when we're looking ahead, we're anticipating to your point, 100 basis point drop between -- in the next 15 months. we've kind of talked about where we expect our spreads to be 7-plus percent and receiving some operational efficiencies. We believe that we're going to be able to maintain a NII to cover our regular dividend.

是的，我會回答這個問題。所以我的意思是，當我們展望未來時，我們預計在未來 15 個月內利差將下降 100 個基點。我們已經討論過，我們預計利差將達到 7% 以上，並獲得一些營運效率。我們相信，我們將能夠維持 NII 來支付我們的常規股息。

Looking ahead, the biggest risk I see is if the tire turns over in the spring of next year and rates instead of troughing at [3.50] end up troughing at 1.5%. Now that's a different story altogether. We have to rethink our regular dividend policy. But short of that, we feel that we'll be able to maintain that balance, plus we're at $1 UTI now. We would anticipate that to grow sizably in the next six to nine months as well, which would be a support for both the supplemental and the regular.

展望未來，我認為最大的風險是，如果明年春季輪胎出現故障，利率將跌至 1.5% 而不是 3.50。現在這完全是另外一個故事了。我們必須重新考慮我們的常規股利政策。但除此之外，我們認為我們將能夠保持這種平衡，而且我們現在的 UTI 為 1 美元。我們預計未來六到九個月內這一數字還會大幅增長，這將對補充和常規業務都形成支持。

Our viewpoint is, if we're performing well and even if in the draconian scenario, we were at -- woke-up at $0.56 or $0.57 but it wasn't because of nonaccruals, it wasn't because of portfolio performance, but rather about macroeconomic issues that we felt we could grow out of, we may use our UTI bucket to support that $0.58 regulator, but do not grow it.

我們的觀點是，如果我們表現良好，即使在嚴酷的情況下，我們的利率也達到了 0.56 美元或 0.57 美元，但這並不是因為未計提，也不是因為投資組合表現，而是因為我們覺得可以擺脫宏觀經濟問題，我們可能會使用我們的 UTI 桶來支持 0.58 美元的調節器，但不會使其增長。

The other thing I would say, Eric, is Michael sort of touched on the operational efficiencies, which is an advantage as you look at that slide, but compared to sort of the reality of the ROE with operating leverage coming down. The other thing is we still have the full $175 million of debentures with drawn, which obviously I can't predict where the 10 year is going to be, but right now, that would be sort of 5% type fixed paper.

艾瑞克，我想說的另一件事是麥可談到了營運效率，從幻燈片上看，這是一個優勢，但與 ROE 的現實相比，營運槓桿正在下降。另一件事是，我們仍然有全部 1.75 億美元的債券被提取，顯然我無法預測 10 年期債券的利率是多少，但目前，這將是 5% 類型的固定票據。

So as we're deploying assets with spreads that we are today at 7, 750 range with a 5% sort of fixed debentures being our main source of growth on the liability side. We think that's going to also enhance those NIIs that we show on the table.

因此，當我們部署利差為 7,750 的資產時，5% 的固定債券是我們負債的主要成長來源。我們認為這也將增強我們在表格中所展示的那些國家資訊基礎。

Sean Paul Adams, B. Riley Securities.

肖恩·保羅·亞當斯 (Sean Paul Adams)，B. Riley 證券。

On non-accruals, it seemed that the nonaccruals decreased quarter over quarter, though on the investment rating schedule, it seemed that it was pretty much flat with risk rating of 5 at $3.8 million fair value. Generally, there was a general improvement in the risk rating. So there was a slight convergence towards the two to three mark. Was there a specific reason towards some of that change? And where are we at with the remaining non-accrual runoff?

對於非應計項目，非應計項目似乎逐季下降，但在投資評級表上，似乎基本持平，風險評級為 5，公允價值為 380 萬美元。整體而言，風險評級普遍有所改善。因此，數字略微向 2 到 3 的方向靠攏。造成這些變化的具體原因是什麼？那麼，剩餘的非應計徑流情況如何？

So this quarter, we had zips -- came back on accrual, which was a large position. I think that was around $25 million. And then we had a small second lien piece, which I think was like $3 million. that actually went on nonaccrual. So the net, we picked up $22 million, although the numbers stayed flat. What was your second question? I apologize, Sean.

因此，本季度，我們的應計項目有所回升，這是一個很大的頭寸。我認為那大約是 2500 萬美元。然後我們有了一小筆第二留置權，我認為價值約為 300 萬美元，但實際上並未提列。因此，儘管數字保持不變，但我們的淨收入為 2,200 萬美元。你的第二個問題是什麼？我很抱歉，肖恩。

Correct. The migration towards the 2 from the top rating of 1, was there any general degradation in the top credit quality portfolio? And was there any idiosyncratic or just thematic themes towards that?

正確的。從最高評級 1 轉向 2 的轉變，頂級信用品質組合是否普遍下降？對此有什麼特殊意義或主題嗎？

I don't think so. I mean I think there might have been a credit where it was typically when a company ends up looking towards an exit, it may be upgraded to a 1. And it might and might not have gone forward and just moved back to a 2, but it was performing in either case. That might be what you're referring to.

我不這麼認為。我的意思是，我認為可能存在一種信用，通常當一家公司最終尋求退出時，它可能會升級為 1。它可能會前進，也可能不會前進，只是回到 2，但無論哪種情況，它都在發揮作用。這可能就是您所指的。

And I'm not showing any further questions in the queue. I would now like to turn it back over to Michael Sarner, President and CEO, for closing remarks.

並且我不會在隊列中顯示任何其他問題。現在我想將發言權交還給總裁兼執行長 Michael Sarner，請他作最後發言。

Well, I appreciate everybody joining us. We look forward to speaking to you next quarter. Have a good day.

好吧，我感謝大家加入我們。我們期待下個季度與您交談。祝你有美好的一天。

Thank you for participating in today's conference. This does conclude the program. You may now disconnect. Everyone, have a great day.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。祝大家有個愉快的一天。