FS KKR Capital Corp (FSK) 2024 Q2 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the FS KKR Capital Corp second-quarter 2024 earnings conference call. (Operator Instructions) Please note that this conference is being recorded. At this time, Anna Kleinhenn, Head of Investor Relations, will proceed with the introduction. Ms. Kleinhenn, you may begin.

早安，女士們先生們。歡迎參加 FS KKR Capital Corp 2024 年第二季財報電話會議。（操作員說明）請注意，本次會議正在錄製中。這時，投資者關係主管Anna Kleinhenn將進行介紹。克萊恩女士，您可以開始了。

Thank you. Good morning and welcome to FS KKR Capital Corp's second-quarter 2024 earnings conference call. Please note that FS KKR Capital Corp may be referred to as FSK, the fund, or the company throughout the call. Today's conference call is being recorded and an audio replay of the call will be available for 30 days. Replay information is included in a press release that FSK issued yesterday.

謝謝。早安，歡迎參加 FS KKR Capital Corp 的 2024 年第二季財報電話會議。請注意，FS KKR Capital Corp 在整個電話會議中可能被稱為 FSK、基金或公司。今天的電話會議正在錄音，電話會議的音訊重播將保留 30 天。重播訊息包含在 FSK 昨天發布的新聞稿中。

In addition, FSK has posted on its website a presentation containing supplemental financial information with respect to its portfolio and financial performance for the quarter ended June 30, 2024. A link to today's webcast and the presentation is available on the Investor Relations section for the company's website under events and presentations. Please note that this call is the property of FSK. Any unauthorized rebroadcast of this call in any form is strictly prohibited.

此外，FSK 還在其網站上發布了一份演示文稿，其中包含有關其截至 2024 年 6 月 30 日的季度投資組合和財務業績的補充財務資訊。今天的網路廣播和簡報的連結可在公司網站投資者關係部分的活動和簡報下找到。請注意，此呼叫屬於 FSK 的財產。嚴禁以任何形式未經授權轉播本次通話。

Today's conference call includes forward-looking statements and are subject to risks and uncertainties that could affect FSK or the economy generally. We ask that you refer to FSK's most recent filings with the SEC for important factors and risks that could cause actual results or outcomes to differ materially from these statements. FSK does not undertake to update its forward-looking statements unless required to do so by law.

今天的電話會議包含前瞻性陳述，並受到可能影響 FSK 或整體經濟的風險和不確定性的影響。我們要求您參考 FSK 最近向 SEC 提交的文件，以了解可能導致實際結果或結果與這些聲明有重大差異的重要因素和風險。除非法律要求，否則 FSK 不承諾更新其前瞻性聲明。

In addition, this call will include certain non-GAAP financial measures. For such measures, reconciliations to the most directly comparable GAAP measures can be found in FSK's second-quarter earnings release that was filed with the SEC on August 6, 2024. Non-GAAP information should be considered supplemental in nature and should not be considered in isolation or as a substitute for the related financial information prepared in accordance with GAAP.

此外，本次電話會議還將包括某些非公認會計準則財務指標。對於此類指標，可以在 FSK 於 2024 年 8 月 6 日向 SEC 提交的第二季財報中找到與最直接可比較的 GAAP 指標的對帳。非 GAAP 資訊本質上應被視為補充訊息，不應被孤立考慮或作為根據 GAAP 準備的相關財務資訊的替代品。

In addition, these non-GAAP financial measures may not be the same as similarly named measures reported by other companies. To obtain copies of the company's latest SEC filings, please visit FSK's website.

此外，這些非公認會計準則財務指標可能與其他公司報告的類似名稱的指標不同。若要取得該公司最新 SEC 備案文件的副本，請造訪 FSK 網站。

Speaking on today's call will be Michael Forman, Chief Executive Officer and Chairman, Dan Pietrzak, Chief Investment Officer and Co-President, Brian Gerson, Co-President, and Steven Lilly, Chief Financial Officer. Also joining us on the call are Co-Chief Operating Officers Drew O'Toole and Ryan Wilson. I will now turn the call over to Michael.

執行長兼董事長 Michael Forman、首席投資長兼聯合總裁 Dan Pietrzak、聯合總裁 Brian Gerson 和財務長 Steven Lilly 將在今天的電話會議上發表演說。聯合營運長德魯·奧圖爾 (Drew O'Toole) 和瑞安·威爾遜 (Ryan Wilson) 也加入了我們的電話會議。我現在將把電話轉給邁克爾。

Thank you, Anna, and good morning, everyone. Thank you all for joining us today for FSK second-quarter 2024 earnings conference call. During the second quarter, FSK generated net investment income totaling $0.77 per share and adjusted net investment income totaling $0.75 per share as compared to our public guidance of approximately $0.74 and $0.71 per share, respectively.

謝謝你，安娜，大家早安。感謝大家今天參加 FSK 2024 年第二季財報電話會議。第二季度，FSK 產生的淨投資收益總計為每股 0.77 美元，調整後的淨投資收益總計為每股 0.75 美元，而我們的公開指引分別約為每股 0.74 美元和 0.71 美元。

As we look at our borrowers' operating performance for the quarter, we continue to see strong results as most companies have adjusted to the higher base rate environment. We did, however, see some stress on investments placed on nonaccrual in the prior quarters. Our workout and investment teams have continued working toward resolutions for these portfolio companies and the team will go into more detail on this later in the call.

當我們審視借款人本季的經營業績時，我們繼續看到強勁的業績，因為大多數公司已經適應了較高的基本利率環境。然而，我們確實看到前幾季的非應計投資受到了一些壓力。我們的鍛鍊和投資團隊繼續致力於為這些投資組合公司製定解決方案，團隊將在稍後的電話會議中詳細介紹這一點。

From a liquidity perspective, we ended the quarter with approximately $4.7 billion of available liquidity. Our Board has declared a total third quarter distribution of $0.7 per share, consisting of our base distribution of $0.64 per share and a supplemental distribution of $0.06 per share. We continue to believe investors will be able to receive a minimum of $2.90 per share of total distributions in 2024, which equates to a 12.1% yield on our June 30, 2024, net asset value of $23.95 per share and a yield of approximately 15% based upon our recent share price.

從流動性角度來看，本季末我們的可用流動性約為 47 億美元。我們的董事會宣布第三季分配總額為每股 0.7 美元，其中包括每股 0.64 美元的基本分配和每股 0.06 美元的補充分配。我們仍然相信，投資者將能夠在2024 年獲得至少每股2.90 美元的總分配，這相當於我們截至2024 年6 月30 日的收益率為12.1%，每股淨資產值為23.95 美元，收益率約為15%基於我們最近的股價。

As Dan will discuss in more detail during his comments, the market remains competitive as all lenders have experienced some amount of spread compression. During the first half of 2024 the investment team originated $2.7 billion of investments, of which $1.3 billion were originated during the second quarter.

正如丹將在評論中更詳細討論的那樣，市場仍然具有競爭力，因為所有貸方都經歷了一定程度的利差壓縮。2024 年上半年，投資團隊發起了 27 億美元的投資，其中 13 億美元來自第二季。

From a forward-looking perspective, despite the expectation that the Fed may begin reducing interest rates as early as September, we believe the elevated rate environment coupled with our still significant level of spillover income will continue to drive FSK's earnings and provide support for the attractive base and supplemental distributions we are paying our shareholders. And with that, I'll turn the call over to Dan and the team to provide additional color on the market in the quarter.

從前瞻性的角度來看，儘管預計聯準會最早可能在9 月開始降息，但我們相信，利率上升的環境加上我們仍處於顯著水平的溢出收入將繼續推動FSK 的盈利，並為有吸引力的投資者提供支援。至此，我將把電話轉給 Dan 和團隊，以在本季的市場上提供更多資訊。

Thanks, Michael. The first half of this year has been characterized by a strong economic backdrop. However, recent economic data has surfaced some concerns over the health of the US economy. Global markets have evolved and adapted to the current interest rate and inflationary environment. However, the domestic political environment and the international geopolitical situation remain extremely complex.

謝謝，麥可。今年上半年的特色是經濟情勢強勁。然而，近期的經濟數據引發了人們對美國經濟健康狀況的一些擔憂。全球市場已經發展並適應當前的利率和通膨環境。但國內政治環境和國際地緣政治情勢依然極為複雜。

As a result, and with certain recent market moves, we expect market volatility to remain elevated. Regardless of the election outcome, we believe government spending will likely remain elevated, regardless of which political party wins the White House. Importantly, productivity in the US remains high, which should allow many companies to continue their level of sustained growth despite higher wages and inventory costs.

因此，鑑於近期的某些市場走勢，我們預期市場波動性仍將較高。無論選舉結果如何，我們都認為，無論哪個政黨入主白宮，政府支出都可能維持在高水準。重要的是，美國的生產力仍然很高，這應該能讓許多公司在工資和庫存成本上升的情況下繼續保持持續成長的水平。

As Michael mentioned, competition for new investments continues to remain elevated as M&A volumes remain below average. That being said, the investment opportunities we have been evaluating continue to be of higher quality as financial sponsors seek to return capital to LPs by monetizing many of their top-performing assets.

正如邁克爾所提到的，由於併購數量仍低於平均水平，對新投資的競爭繼續加劇。話雖如此，我們一直在評估的投資機會仍然具有更高的質量，因為金融贊助商尋求透過將其許多表現最好的資產貨幣化來將資本返還給有限合夥人。

These market inputs have resulted in tighter pricing for new transactions as well as an increased level of requests from existing portfolio companies to amend and reduce pricing related to loans originated over the last two to three years. At the same time, though, we are starting to see some stabilization in pricing for new deals, which we view positively.

這些市場投入導致新交易的定價更加嚴格，以及現有投資組合公司修改和降低與過去兩到三年發放的貸款相關的定價的要求增加。但同時，我們開始看到新交易的定價有所穩定，我們對此持正面態度。

We believe the continued uncertainty around both the election and the timing of future rate cuts are the drivers of the still slower M&A environment. However, we still expect to see an increase in M&A activity over the coming months.

我們認為，選舉和未來降息時機的持續不確定性是併購環境仍放緩的驅動因素。然而，我們仍然預計未來幾個月併購活動將會增加。

During the second quarter, we originated $1.26 billion of new investments. Approximately 70% of our new investments were focused on add-on financings to existing portfolio companies and long-term KKR relationships. Our new investments combined with $1.34 billions of net sales and repayments equated to a net portfolio decrease of $76 million.

第二季度，我們發起了 12.6 億美元的新投資。我們大約 70% 的新投資集中在現有投資組合公司和長期 KKR 關係的額外融資。我們的新投資加上 13.4 億美元的淨銷售額和還款，相當於投資組合淨減少 7,600 萬美元。

New originations consisted of approximately 81% in first-lien loans, 2% in other senior secured debt, 1% in subordinated debt, and 16% in asset-based finance investments. Asset-based finance investments were a smaller portion of our second-quarter deployment activity, primarily due to the fact that the ABF investments still tend to be more opportunistic in nature than traditional direct lending.

新發起的債務包括約 81% 的第一留置權貸款、2% 的其他優先擔保債務、1% 的次級債務和 16% 的資產型金融投資。基於資產的金融投資在我們第二季的部署活動中所佔的比例較小，這主要是因為 ABF 投資本質上仍然比傳統的直接貸款更具機會主義色彩。

KKR has approximately $60 billion in ABF assets under management with a team of more than 50 people dedicated to the strategy. We believe the size and scale matter and that our approach is differentiated, which is why we have invested in building out the team and the infrastructure to support it. Our target for ABF investments in FSK remains 10% to 15% of the company's total portfolio.

KKR 管理約 600 億美元的 ABF 資產，並擁有一支由 50 多人組成的團隊致力於該策略。我們相信規模和規模很重要，而且我們的方法是與眾不同的，這就是為什麼我們投資建設團隊和基礎設施來支持它。我們 ABF 對 FSK 的投資目標仍然是占公司總投資組合的 10% 至 15%。

We continue to be pleased with the quality of new investments. During the second quarter our new direct lending investments had a weighted average EBITDA of approximately $127 million, 5.1 times leverage through our security and at a weighted average coupon of approximately SOFR plus 550.

我們仍然對新投資的品質感到滿意。第二季度，我們新的直接貸款投資的加權平均 EBITDA 約為 1.27 億美元，是我們證券槓桿的 5.1 倍，加權平均息票約為 SOFR 加 550。

One example of a new deal originated by our non-sponsor backed effort during the quarter was Rockefeller Capital Management, a financial services firm serving high net worth and ultra-high net worth individuals. KKR Credit was co-lead on the deal to refinance the existing capital structure and FSK as well as other KKR funds committed $100 million of a $700 million unit launch loan.

本季度由我們的非保薦人支持的努力發起的新交易的一個例子是洛克菲勒資本管理公司，這是一家為高淨值和超高淨值個人提供服務的金融服務公司。KKR Credit 是該交易的共同牽頭方，該交易旨在為現有資本結構進行再融資，FSK 以及其他 KKR 基金承諾在 7 億美元的單位啟動貸款中承諾承擔 1 億美元。

Another investment to highlight is our investment in Cadence education, a leading provider of early childhood education services in the US. KKR Credit was co-lead on the new deal to refinance the existing capital structure and FSK as well as other KKR funds committed $198 million of the $680 million total financing.

另一個值得強調的投資是我們對 Cadence education 的投資，該公司是美國領先的幼兒教育服務提供者。KKR Credit 是這項為現有資本結構再融資的新交易的共同牽頭人，FSK 以及其他 KKR 基金承諾在 6.8 億美元的融資總額中承擔 1.98 億美元。

While we look at aggregate trends across our portfolio companies, we observe 12% year-over-year EBITDA growth at portfolio companies in which we have invested in since April of 2018. Additionally, the weighted average and median EBITDA of our portfolio companies was $225 million and $124 million respectively, as of June 30, 2024.

在我們觀察投資組合公司的整體趨勢時，我們觀察到自 2018 年 4 月以來我們投資的投資組合公司的 EBITDA 年成長 12%。此外，截至 2024 年 6 月 30 日，我們投資組合公司的加權平均 EBITDA 和中位數分別為 2.25 億美元和 1.24 億美元。

As of the end of the second quarter, nonaccruals represented 4.3% of our portfolio on a cost basis and 1.8% of our portfolio on a fair value basis. This compares to 6.5% of our portfolio on a cost basis and 4.2% of our portfolio on a fair value basis as of March 31, 2024. Brian will provide further details on the driver of the reduction of our nonaccrual rate later in the call.

截至第二季末，非應計費用以成本計算占我們投資組合的 4.3%，以公允價值計算占我們投資組合的 1.8%。相較之下，截至 2024 年 3 月 31 日，我們的投資組合中以成本計算的比例為 6.5%，以公允價值計算的投資組合比例為 4.2%。布萊恩將在稍後的電話會議中提供有關非應計利率降低驅動因素的更多詳細資訊。

We also believe it is helpful to provide the market with information based on FSK's assets originated by KKR Credit. Nonaccruals relating to the 88% of our total portfolio, which has been originated by KKR Credit and the FS/KKR Advisor were 2.4% on a cost basis and 0.6% on a fair value basis as of June 30, 2024. And with that, I'll turn the call over to Brian to discuss our portfolio in more detail.

我們也認為，向市場提供基於 KKR Credit 起源的 FSK 資產的資訊是有幫助的。截至 2024 年 6 月 30 日，我們總投資組合 88% 的非應計費用由 KKR Credit 和 FS/KKR Advisor 發起，以成本計算為 2.4%，以公允價值計算為 0.6%。接下來，我會將電話轉給布萊恩，更詳細地討論我們的投資組合。

Thanks, Dan. At the end of the second quarter, our investment portfolio had a fair value of $14.1 billion, consisting of 208 portfolio companies. This compares to a fair value of $14.2 billion and 205 portfolio companies as of March 31, 2024.

謝謝，丹。截至第二季末，我們的投資組合公允價值為 141 億美元，由 208 家投資組合公司組成。相較之下，截至 2024 年 3 月 31 日，投資組合公司的公允價值為 142 億美元，投資組合公司數量為 205 家。

Leverage remained relatively flat quarter over quarter, and the decline in our investment portfolio's fair value was primarily driven by unrealized depreciation relating to three investments, Miami Beach Medical Group; and Bowery Farming, which has been on non-accrual; and Kellermeyer-Burgenson Services, which was restructured in the first quarter. While smaller investments from a cost and fair value perspective, Miami Beach and Bowery continue to be under pressure and we are working with both companies to maximize our recovery.

槓桿率環比保持相對平穩，我們的投資組合公允價值下降主要是由於與三項投資相關的未實現折舊所致：邁阿密海灘醫療集團； Bowery Farming 一直為非應計利息； Kellermeyer-Burgenson Services 於第一季進行了重組。雖然從成本和公平價值的角度來看，投資規模較小，但邁阿密海灘和包厘街仍然面臨壓力，我們正在與兩家公司合作，以最大限度地實現復甦。

We are pleased with the progress that KBS is making under our collective ownership and are optimistic about its future prospects. At the end of the second quarter, our 10 largest portfolio companies represented approximately 20% of the fair value of our portfolio, which is in line with prior quarters. We continue to focus on senior secured investments as our portfolio consisted of approximately 58% first lien loans and 66% senior secured debt as of June 30.

我們對 KBS 在我們集體所有權下所取得的進展感到高興，並對它的未來前景感到樂觀。截至第二季末，我們最大的 10 家投資組合公司約占我們投資組合公允價值的 20%，與前幾季持平。我們繼續專注於優先擔保投資，因為截至 6 月 30 日，我們的投資組合由約 58% 的第一留置權貸款和 66% 的優先擔保債務組成。

In addition, our joint venture represented 9.8% of the fair value of our portfolio as a result when investors consider our entire portfolio, looking to the investments in our joint venture, then first-lien loans totaled approximately 67% of our portfolio and senior secured investments totaled approximately 74% of our portfolio as of June 30.

此外，我們的合資企業占我們投資組合公允價值的9.8%，因為當投資者考慮我們的整個投資組合，尋找我們合資企業的投資時，第一留置權貸款總計約占我們投資組合的67%，優先擔保貸款占我們投資組合的公允價值的9.8%。

Weighted average yield on accruing debt investments was 12% as of June 30th, a decrease of 10 basis points compared to 12.1% as of March 31, 2024. The decrease is primarily attributable to lower spreads on new investments and the repricing of certain investments during the quarter. As a reminder, the calculation of weighted average yield is adjusted to exclude the accretion associated with the merger with FSKR.

截至6月30日，應計債務投資的加權平均收益率為12%，較截至2024年3月31日的12.1%下降10個基點。下降的主要原因是本季新投資利差下降以及某些投資的重新定價。提醒一下，加權平均收益率的計算進行了調整，以排除與 FSKR 合併相關的增量。

During the second quarter, we amended our investment in Global Jet Capital which simplified and enhanced the Company's capital structure. As we have discussed on prior earnings calls, we've been quite pleased with the accomplishments of global Jet's management team during recent years as the Company made a strategic shift to be more selective with originations and increase return targets while also reducing SG&A to drive a higher ROA. Importantly, the Company has approximately $2 billion jet lease loan portfolio has no delinquencies and is experiencing attractive renewal or sale opportunities on assets that are coming off lease.

第二季度，我們修改了對 Global Jet Capital 的投資，簡化並增強了公司的資本結構。正如我們在先前的財報電話會議上所討論的那樣，我們對Global Jet 管理團隊近年來取得的成就感到非常滿意，因為該公司進行了戰略轉變，對來源更具選擇性並提高回報目標，同時還減少了SG&A更高的資產報酬率。重要的是，該公司擁有約 20 億美元的飛機租賃貸款組合，沒有拖欠，並且正在經歷有吸引力的續租或出售即將到期的資產的機會。

The business is in a stable and competitive position and has generated an ROE approaching 10% in each of the last two years. Additionally, the Company has returned $130 million of capital to FSK over roughly the last two years. The business continues to execute its ABS strategy, closing BJET's 2024-1 in April at attractive terms, helping drive meaningful capital return into the business.

該業務處於穩定且具有競爭力的地位，過去兩年的 ROE 每年接近 10%。此外，在過去兩年左右，該公司已向 FSK 返還了 1.3 億美元的資本。該業務繼續執行其 ABS 策略，並於 4 月以有吸引力的條款結束了 BJET 的 2024-1 期，幫助推動該業務有意義的資本回報。

During the second quarter, FSK received $51 million of distributions, which were used to fully repay our structured mezzanine position and partially repay our PIC preferred position. In conjunction with this distribution. Our PIC preferred equity investment was restructured into a perpetual preferred. This repayment and corresponding amendment was executed in the manner in which we preserved all of our pre-existing economics while better positioning the Company for future growth.

第二季度，FSK 收到了 5,100 萬美元的分配，用於全額償還我們的結構性夾層頭寸和部分償還我們的 PIC 優先頭寸。與本次發行結合。我們的PIC優先股權投資重組為永久優先股。此次還款和相應修改的執行方式是，我們保留了所有現有的經濟狀況，同時更好地為公司未來的成長做好準備。

As a result of these actions, $309.4 million of costs and $256.6 million of fair value associated with our investment goal. Jack was removed from nonaccrual status. We continue to remain focused on rotating the remaining 12% of legacy investment exposure, production Resource Group Global Jet Capital, JW Aluminum and our performing first-lien position in PSKW., all of which we've discussed on either this or prior earnings calls, represent approximately 9% of the 12% total legacy exposure, and we continue to be satisfied with their performance. In addition, since Q2 2018, we have achieved significant portfolio rotation out of cyclical industries. We have rotated over $3 billion of legacy investments out of materials, energy, consumer durables and consumer discretionary into new investments in more defensive industries like software and services, health care equipment and services and commercial and professional services.

由於這些行動，我們的投資目標產生了 3.094 億美元的成本和 2.566 億美元的公允價值。傑克已從非應計狀態中刪除。我們繼續專注於輪換剩餘 12% 的遺留投資、生產資源集團 Global Jet Capital、JW Aluminium 以及我們在 PSKW 中的第一留置權，所有這些我們都在本次或之前的財報電話會議上討論過，約佔12% 遺留風險總額的9%，我們仍然對他們的表現感到滿意。此外，自 2018 年第二季以來，我們實現了週期性產業的重大投資組合輪調。我們已將超過 30 億美元的傳統投資從材料、能源、耐用消費品和非必需消費品領域轉向軟體和服務、醫療保健設備和服務以及商業和專業服務等防禦性更強的行業的新投資。

And with that, I'll turn the call over to Steven to go through our financial results.

接下來，我會將電話轉給史蒂文，讓他查看我們的財務表現。

Thanks, Brian. Our total investment income increased by $5 million during the second quarter to $439 million. The primary components of our total investment income during the quarter were as follows. Total interest income was $353 million, an increase of $3 million quarter over quarter.

謝謝，布萊恩。第二季我們的總投資收入增加了 500 萬美元，達到 4.39 億美元。本季我們總投資收益的主要組成部分如下。利息收入總額為 3.53 億美元，季增 300 萬美元。

Dividend and fee income totaled $86 million, an increase of $2 million quarter over quarter. Our total dividend and fee income during the quarter is summarized as follows: $52 million of recurring dividend income from our joint venture, other dividends from various portfolio companies totaling approximately $16 million during the quarter, and fee income totaling approximately $18 million during the quarter.

股息和費用收入總計 8,600 萬美元，季增 200 萬美元。我們本季的股息和費用收入總額總結如下：來自合資企業的經常性股息收入為5200 萬美元，本季度來自各個投資組合公司的其他股息總計約1600 萬美元，本季度的費用收入總計約1800 萬美元。

Our interest expense totaled $115 million during the quarter, a decrease of $1 million quarter over quarter, and our weighted average cost of debt was 5.3% as of June 30. Management fees totaled $54 million, a decrease of $1 million and incentive fees totaled $45 million, an increase of $2 million quarter over quarter. Other expenses totaled $10 million, an increase of $2 million quarter over quarter.

本季我們的利息支出總計 1.15 億美元，季減 100 萬美元，截至 6 月 30 日，我們的加權平均債務成本為 5.3%。管理費總計 5,400 萬美元，季減 100 萬美元，激勵費總計 4,500 萬美元，季增 200 萬美元。其他費用總計 1000 萬美元，季增 200 萬美元。

The detailed bridge on net asset value per share on a quarter-over-quarter basis is as follows. Our ending 1Q 2024 net asset value per share of $24.32 was increased by GAAP net investment income of $0.77 per share. It was decreased by $0.39 per share due to a decrease in the overall value of our investment portfolio.

每股淨值環比的詳細橋樑如下。2024 年第一季末每股淨資產價值為 24.32 美元，GAAP 淨投資收益為每股 0.77 美元。由於我們投資組合的整體價值下降，每股減少了 0.39 美元。

Our net asset value per share was reduced by our $0.7 per share quarterly distribution and also the $0.05 per share special distribution. These activities result in our June 30, 2024, net asset value per share of $23.95.

我們的每股資產淨值因每股 0.7 美元的季度分配以及每股 0.05 美元的特別分配而減少。這些活動使我們截至 2024 年 6 月 30 日的每股資產淨值為 23.95 美元。

From a forward-looking guidance perspective, we expect third quarter 2024 GAAP net investment income to approximate $0.72 per share, and we expect our adjusted net investment income to approximate $0.7 per share.

從前瞻性指引的角度來看，我們預計 2024 年第三季 GAAP 淨投資收益約為每股 0.72 美元，我們預計調整後的淨投資收益約為每股 0.7 美元。

Detailed third quarter guidance is as follows. Our recurring interest income on a GAAP basis is expected to approximate $351 million. We expect recurring dividend income associated with our joint venture to approximate $47 million a decrease of approximately $5 million quarter over quarter. The expected decrease as a result of recent portfolio company paydowns and the corresponding recycling of capital.

詳細的第三季指引如下。以 GAAP 計算，我們的經常性利息收入預計約為 3.51 億美元。我們預計與合資企業相關的經常性股息收入約為 4,700 萬美元，比上一季減少約 500 萬美元。由於最近投資組合公司的付款和相應的資本回收，預期下降。

We expect other fee and dividend income to approximate $26 million during the third quarter. The expected decrease is due to a lower level of anticipated asset finance dividends. These dividends tend to fluctuate on a quarterly basis for various reasons.

我們預計第三季其他費用和股息收入約為 2,600 萬美元。預期下降是由於預期資產融資股利水準較低。由於各種原因，這些股息往往會按季度波動。

From an expense standpoint, we expect our management fees to approximate $53 million. We expect incentive fees to approximate $42 million. We expect our interest expense to approximate $117 million, and we expect other G&A expenses to approximate $10 million. And as Michael indicated during his remarks, we currently expect our distributions during the year will total at least $2.9 per share comprised of $2.8 per share of quarterly base and supplemental distributions and $0.1 per share of previously paid special distributions.

從費用角度來看，我們預計管理費約為 5,300 萬美元。我們預計獎勵費用約為 4200 萬美元。我們預計利息支出約為 1.17 億美元，其他一般管理費用約為 1,000 萬美元。正如麥可在演講中指出的那樣，我們目前預計今年的分配總額將至少為每股 2.9 美元，其中包括每股 2.8 美元的季度基本分配和補充分配以及每股 0.1 美元的先前支付的特別分配。

Turning to our capital structure. In June, we issued $600 million of 6.875% unsecured notes due 2029, which were subsequently swapped to floating rate pursuant to interest rate swap agreements that mature when the notes are due in 2029. Proceeds from the unsecured note issuance were used to repay outstanding debt on our revolver. With this issuance, we further strengthened our balance sheet and liquidity position and extended our maturity ladder.

轉向我們的資本結構。6 月，我們發行了 6 億美元、2029 年到期、利率為 6.875% 的無抵押票據，隨後根據利率互換協議將其轉換為浮動利率，並在票據於 2029 年到期時到期。無擔保票據發行的收益用於償還我們左輪手槍的未償債務。透過本次發行，我們進一步增強了資產負債表和流動性狀況，並延長了期限階梯。

Our gross and net debt to equity levels were 119% and 109% respectively at June 30, 2024, compared to 117% and 109% at March 31, 2024. At June 30th, our available liquidity was$ 4.7 billion and approximately 72% of our drawn balance sheet and 47% of our committed balance sheet was comprised of unsecured debt. And with that, I'll turn the call back to Michael for a few closing remarks before we open the call for questions.

截至2024年6月30日，我們的總負債與股本水準分別為119%及109%，而2024年3月31日為117%及109%。截至 6 月 30 日，我們的可用流動資金為 47 億美元，我們提取的資產負債表的約 72% 和承諾資產負債表的 47% 由無擔保債務組成。接下來，在我們開始提問之前，我會把電話轉回邁克爾，讓他做一些總結發言。

Thanks, Steven. In closing, we've had a productive first half of 2024 first origination activity increase from muted 2023 levels, resulting in deployment of capital into compelling new transactions. Second, our underlying portfolio companies generally continue to perform well and we have made significant progress restructuring certain non-accruing investments.

謝謝，史蒂文。最後，我們在 2024 年上半年首次發起活動從 2023 年的低迷水準增加，從而將資本部署到引人注目的新交易中。其次，我們的基礎投資組合公司整體上持續表現良好，並且我們在重組某些非應計投資方面取得了重大進展。

Lastly, we continue to fully earn both our base and supplemental distributions on a per share basis and pay at a 15% dividend yield based on our currently expected full year distribution of $2.90 per share. And our recent market share price as we look toward the second half of the year and beyond. We believe the future opportunity for our platform is extremely attractive. On behalf of the team, we thank you all for joining the call and for your continued support. And with that, operator, we'd like to open the call for questions.

最後，我們繼續以每股為基礎充分賺取基本和補充分配，並根據我們目前預期的每股 2.90 美元的全年分配，按 15% 的股息收益率支付。以及我們展望下半年及以後的近期市場股價。我們相信我們平台的未來機會極具吸引力。我們謹代表團隊感謝大家加入此電話會議並感謝大家的持續支持。接線員，我們現在開始提問。

(Operator Instructions) Finian O’Shea, Wells Fargo Securities.

（操作員指示）Finian OâShea，富國銀行證券。

First question on Korea. Can you talk about the spillover picture from what sort of I don't know if you guys give the dollar number, but I think it's probably a pretty stretch percentage of income are announced. And what plans you have with that or what sort of options you're looking at?

第一個問題是關於韓國的。你能談談溢出的情況嗎？您對此有什麼計劃或您正在考慮什麼樣的選擇？

Yes. And I'm happy to start there, and Stephen may want to add to that. Yes, I think we've always thought about having two to three quarters of skilled exit of income there. I think we're kind of the middle to sort of the upper end of that range, which I think we're happy with.

是的。我很高興從這裡開始，史蒂芬可能想補充一點。是的，我認為我們一直在考慮在那裡有兩到四分之三的技術人員收入退出。我認為我們處於該範圍的中間到高端，我認為我們對此感到滿意。

I think that provides a nice protection as we think about your longer term of dividend coverage with Stephen, I think you want to have them go through.

我認為這提供了很好的保護，因為我們考慮到您與史蒂芬的長期股息保障，我認為您希望讓它們經歷。

I would just say that the $0.05 of per quarter special distribution that we have just completed that program that took us from kind of really close to three-quarters of spillover down to something in the sort of 2.8 range.

我只想說，我們剛剛完成該計劃的每季 0.05 美元的特別分配，使我們的溢出率從接近四分之三的溢出率降至 2.8 左右。

Now on terms of quarters of dividend and so on that program did everything we wanted to do. And now we're in position, as Dan says, if rates are to fall, then we have that cushion from a distribution standpoint if we wish to use it.

現在，就季度股息等而言，該計劃做了我們想做的一切。現在，正如丹所說，如果利率下降，那麼從分配的角度來看，如果我們希望使用它，我們就有緩衝。

Okay. That's helpful. And I think, Steve, in your guidance, I heard lower income on the ADF. book. Is that correct and some seeing what the market dynamics are or if it's idiosyncratic?

好的。這很有幫助。我想，史蒂夫，在你的指導下，我聽說 ADF 的收入較低。書。這是正確的嗎？

I don't even think that it was idiosyncratic than the size of those deals. I think because there are a little bit more. Highly structured are not necessarily just as consistent as it relates to dividends on a quarter-by-quarter basis. I think there's great consistency over, let's call it the life of the deal. I think we've been very pleased with what we've seen in the in the market. There are some of the tailwinds surrounding regional banks have persisted that's been a nice amount of deal flow. And I think we like the footprint we have as a platform there. But I don't think of anything more than timing for creative tool for me.

我甚至不認為這比這些交易的規模有什麼特殊之處。我想是因為還有一點。高度結構化並不一定像季度股息那樣一致。我認為有很大的一致性，我們稱之為交易的生命。我認為我們對市場上所看到的情況非常滿意。圍繞區域銀行的一些有利因素仍然存在，這帶來了大量的交易流。我認為我們喜歡我們作為平台的足跡。但我只想到對我來說創意工具的時機。

Thank you.

謝謝。

Thank you.

謝謝。

Mark Hughes, Truist.

馬克‧休斯，真理主義者。

Yes, thank you. Good morning. Were you had refi's that perhaps you passed on what was your experience in terms of more selective this quarter than in prior quarters? Is that spread issue? How much was the competition, a driver of that and if you addressed this earlier, I apologize. I jumped on the call a little bit late now.

是的，謝謝。早安.您是否進行了再融資，也許您在本季比前幾季更有選擇性傳遞了您的經驗？這是傳播問題嗎？競爭有多大，其驅動因素有多大，如果您早些時候解決過這個問題，我深表歉意。我現在接電話有點晚了。

No, no worries, good morning, Mark. I think you probably are broadening that to both refinancings as well as counter repricing. I think from time to time that these things are coming up and we're either a little bit more negative on the sector or the company. We may very well use that as an opportunity to lighten our position or look to potentially get repaid. So, I would just call it a credit call, and that could be, again, company leverage for the sector. And I think it's our job to be dynamic as we think about them.

不，不用擔心，早安，馬克。我認為您可能正在將其擴大到再融資和反重新定價。我認為這些事情時不時​​就會出現，我們要不是對這個產業或公司更加消極。我們很可能會利用這個機會來減輕我們的部位或尋求潛在的回報。因此，我將其稱為信用催收，這可能再次成為該行業的公司槓桿。我認為我們的工作就是在思考這些問題時保持活力。

And generally, we see repricing for very well performing credits where the Company and sponsor come to us and ask us to mark the credit to market from a pricing perspective. And I think our view is that and given that those loans tend to be passed or call protection on the idea of staying invested on market terms and a credit that we know and like is it positively because our alternative would be to get repaid and then go out and find a new investment at the same spread level. And so we think it makes all the sense in the world to play in the right ones, and we'll continue to do that.

一般來說，我們會看到表現良好的信貸重新定價，公司和贊助商來找我們，要求我們從定價的角度將信貸標記為市場。我認為我們的觀點是，考慮到這些貸款往往會被通過或要求保護，以保持按市場條件投資的想法和我們了解並喜歡的信貸，這是積極的，因為我們的選擇是獲得償還，然後再去並在相同的價差水平上尋找新的投資。因此，我們認為選擇正確的球員進行比賽在世界上是有意義的，我們將繼續這樣做。

But just one more point there. I think what we are doing that, though, as a general rule of thumb, we are either looking for some sort of upfront fee as it relates to the repricing or at a minimum, extending call Pro to keep some optionality for the benefit of the lender.

但還有一點。不過，我認為我們正在做的事情是，作為一般經驗法則，我們要么尋求某種與重新定價相關的預付費用，要么至少擴展呼叫 Pro 以保留一些選擇性，以造福於貸方。

Yes, understood. Thanks for that. The clarification on the opportunities in Asset Based Finance, how do you see that as we sit here today?

是的，明白了。謝謝你。關於資產基礎金融機會的澄清，您如何看待我們今天坐在這裡的這一點？

Yes, I mean I was loaded consistent with Ben's question, I think broad stroke positive, right. If you think about the setup of the market, large sized market in our mind, close to $7 trillion are sort of on the path to there. That's bigger than the high-yield bond market, the syndicated loan market, the direct lending market combined there has not been what's called scaled capital raise there.

是的，我的意思是我的觀點與本的問題一致，我認為總體上是積極的，對吧。如果你考慮市場的設置，我們心目中的大型市場，接近 7 兆美元的市場正在走向那裡。這比高收益債券市場、銀團貸款市場、直接貸款市場的總和還要大，那裡還沒有所謂的規模融資。

There's not a lot of scale players who like ourselves. I think we're fortunate with 60 odd billion of AUM and 50 plus people. So I think just the setup as well. The setup is strong. We have seen your we'll call certain tailwinds there. We've been very active in buying loan portfolios from banks that with some of those deals have been pretty sort of publics that have out there, I think were able to source attractive risk adjusted returns there. So it's space remain quite constructible.

像我們這樣的規模玩家並不多。我認為我們很幸運，擁有 60 多億的資產管理規模和 50 多名員工。所以我認為也只是設定。設定很強。我們已經看到了你的情況，我們稱之為某些順風車。我們一直非常積極地從銀行購買貸款組合，其中一些交易已經相當公開，我認為能夠在那裡獲得有吸引力的風險調整回報。所以它的空間仍然是相當可建造的。

Yeah, and I'm not sure if you touched on this, but anything recently with some of the turbulence in the economy, anything you've heard from your portfolio companies that would indicate any kind of material change. Are you feeling like a steady as she goes is at least as you're seeing in your portfolio companies are experiencing?

是的，我不確定你是否談到了這一點，但最近經濟中的一些動盪，你從投資組合公司聽到的任何表明發生重大變化的事情。您是否感覺到她的發展穩定，至少就像您在您的投資組合公司中看到的那樣？

I mean, it's that's probably a pretty broad question right. And I mean, I think the recent economic volatility in the equity markets has been a bit of a yo-yo like for the last four or five trading days. I think that probably spiked a little bit more focus. I think it's our job to be in the cautious camp. Generally, I think I would probably be balanced with on one hand, we've been pleased with what we've seen and you can see that from the EBITDA growth numbers.

我的意思是，這可能是一個相當廣泛的問題。我的意思是，我認為最近股市的經濟波動在過去四、五個交易日裡有點像溜溜球。我認為這可能會引起更多的關注。我認為我們的工作就是保持謹慎的態度。一般來說，我認為我可能會平衡，一方面，我們對所看到的感到滿意，你可以從 EBITDA 成長數字中看到這一點。

On the other hand, I think we have to clearly acknowledge there's less free cash flow in the system, considering where rates are that makes or that provides certain challenges if there is sort of a bump in the road, the company just doesn't have the same flexibility or moves they might have had sort of prior. So yes, I think that's kind of top of mind. I mean, you touched on the asset back. So the comment. I think we have centered ourselves if we are investing in consumer related exposures there in the more prime part of the market, I think we've been quite happy with what we've seen there as it relates to the performance there, probably a little bit more worried as you go down market credit quality on the consumer side.

另一方面，我認為我們必須明確承認系統中的自由現金流較少，考慮到如果道路上出現某種障礙，利率會造成或帶來某些挑戰，公司只是沒有他們之前可能有同樣的靈活性或動作。所以，是的，我認為這是首要考慮的問題。我的意思是，你談到了資產。所以評論。我認為，如果我們在市場的更主要部分投資與消費者相關的風險敞口，我們就已經集中精力，我認為我們對在那裡看到的情況非常滿意，因為它與那裡的表現相關，可能有點當消費者方面的市場信用品質下降時，你會更加擔心。

Appreciate it.

欣賞它。

Thank you, Frank.

謝謝你，弗蘭克。

Kenneth Lee, RBC Capital Markets

肯尼斯李，加拿大皇家銀行資本市場

Hey, good morning and thanks for taking my question. Just one follow up on the Asset Based Finance, the contribution to third quarter income, the dividends there, and I just want to get a better understanding. Is there anything that drives the timing, any kind of macro inputs? Or is it really just really difficult to project and could be a little episodic there? Thanks

嘿，早上好，感謝您提出我的問題。只是對資產融資的一個跟進，對第三季度收入的貢獻，那裡的股息，我只是想得到更好的理解。是否有任何因素可以推動時機，任何類型的宏觀輸入？或者它真的真的很難預測並且可能會有點斷斷續續嗎？謝謝

Yes, no, no, no problem. I wouldn't think about it at all in kind of the macro context. Obviously, if macro environment changes your meaningful one way or the other the portfolio or financial or hard assets that were invested, it might sort of change.

是的，不，不，沒問題。我根本不會在宏觀背景下考慮它。顯然，如果宏觀環境改變了您所投資的投資組合或金融或硬資產的有意義的一種或另一種方式，它可能會發生某種變化。

Yes, I would just really equate this morning with timing sort of point. And I'll give you maybe two simple examples, right. If we own a portfolio of aviation leasing assets, users and those are contracted, so the cash flows we're getting in, but if we're in the midst of selling certain of those assets, those asset sales, some might happen one quarter, so it might happen a couple of quarters down the road, so a bit nonlinear in that sort of sense.

是的，我真的會把今天早上等同於時間點。我會給你兩個簡單的例子，對吧。如果我們擁有航空租賃資產、用戶和這些資產的投資組合，那麼我們就會獲得現金流，但如果我們正在出售其中某些資產，這些資產出售，有些可能會在一個季度發生，所以它可能會在幾個季度後發生，所以在這種意義上有點非線性。

There could be other deals where we've used the capital markets to finance ourselves. Sometimes those capital markets transactions will divert cash flow to the senior traunch to deliver themselves. That's not negative at all from a value perspective, it's a timing of cash flow point, but those would be two, probably simplistic example.

我們也可能利用資本市場為自己融資的其他交易。有時，這些資本市場交易會將現金流轉移到高階管理層以實現自身目標。從價值的角度來看，這根本不是負面的，這是現金流點的時間點，但那將是兩個，可能是簡單的例子。

And I wouldn't characterize it as difficult to predict and I think then that of RAG, which it's not linear internally.

我不會將其描述為難以預測，我認為 RAG 的特點是，它內部不是線性的。

Got you. Got just super helpful. They're super helpful there. And then just one follow-up, if I may. In terms of the deleverage, I think in the past, you've talked about being closer to, I think, the higher end of the target range. I just wanted to see if there's any kind of updated outlook where would you feel comfortable in terms of leverage turning over the near term? Thanks

明白你了。非常有幫助。他們在那裡非常樂於助人。如果可以的話，然後只是一個後續行動。就去槓桿化而言，我認為過去您談到更接近目標範圍的高端。我只是想看看是否有任何更新的前景，您在短期內對槓桿率的轉變感到滿意嗎？謝謝

No. And that's a good question and thank you. I think there's a couple of points there. One, I don't think our ranges has changed. We like the one to kind of one and a quarter. I would argue were the cause of lower side of that on a net basis. So, I think there's some room to kind of add there. I think that's helpful and can provide a certain amount of benefits to the earning side. There's also additional leverage capacity down at the joint venture level, which would be the same.

不。這是一個很好的問題，謝謝。我認為有幾點。第一，我認為我們的範圍沒有改變。我們喜歡一到四分之一。我認為這是淨值較低的原因。所以，我認為還有一些補充的空間。我認為這很有幫助，可以為賺錢方提供一定的好處。合資企業層面也有額外的槓桿能力，這也是一樣的。

I think we are quite happy with the liability side of our balance sheet. We were happy to get that $600 million deal done this quarter. I think the number was roughly 72% of our debt outstanding this quarter is from the unsecured bond market. We've got a lot of undrawn capacity on the revolver. We've effectively funded our 24 maturities. So I think we are I think we've got some room there would be the short answer.

我認為我們對資產負債表的負債部分非常滿意。我們很高興本季完成了這筆 6 億美元的交易。我認為本季我們未償債務的大約 72% 來自無擔保債券市場。我們的左輪手槍還有很多未使用的容量。我們已經有效地為 24 個到期日提供了資金。所以我認為我們有一些空間來給出簡短的答案。

Great, great. Thank you very much.

太棒了，太棒了。非常感謝。

Have a good day.

祝你有美好的一天。

Melissa Wedel, JPMorgan.

梅麗莎‧韋德爾，摩根大通。

Good morning and thanks for taking my questions today. A quick follow-up. I think I caught the average EBITDA on new originations, but I might have confused ahead with average EBITDA on the portfolio, was it the case that the average EBITDA on originations came down quite a bit this quarter from two as from the first quarter?

早安，感謝您今天回答我的問題。快速跟進。我想我捕捉到了新產品的平均 EBITDA，但我可能對投資組合的平均 EBITDA 感到困惑，本季的平均 EBITDA 是否比第一季的兩倍下降了很多？

Give me one second, Melissa, just to sort of touch base on that. Yes, I think the average EBITDA was $127 million in the quarter. I think that's probably more in line with the median EBITDA of the entire portfolio. I don't probably read that much into that other than just kind of the deal flow that occurred during this 90-day period. That said, I think it is important to note, I mean, we're pretty focused on having a broad origination footprint, right.

梅麗莎，請給我一點時間，稍微談談這一點。是的，我認為該季度的平均 EBITDA 為 1.27 億美元。我認為這可能更符合整個投資組合的 EBITDA 中位數。除了這 90 天期間發生的交易流程之外，我可能對此沒有太多了解。也就是說，我認為重要的是要注意，我的意思是，我們非常注重擁有廣泛的起源足跡，對吧。

We do talk about being focused on the upper end of the middle market, but we're usually defining that as $50 million to $150 million of EBITDA. And we will do deals that are below that, I'd say probably $25 million is kind of a floor that probably a higher bar, the smaller the company is that just what we've seen from a from a risk perspective or where we're getting we think appropriately paid for the risk and then it is more than just the sponsor sort of effort, right? We're focused on both our sponsor as well as the non sponsored channels. The entire goal is to make the origination funnel as big as possible so we can try to be as selective as possible and we're picking new deals to do.

我們確實談到要專注於中階市場的高端，但我們通常將其定義為 5,000 萬至 1.5 億美元的 EBITDA。我們會做低於這個數字的交易，我想說可能 2500 萬美元是一個可能更高的下限，公司越小，這正是我們從風險角度或我們所看到的。風險，然後這不僅僅是贊助商的努力，對吧？我們既關注贊助商管道，也關注非贊助管道。整個目標是使發起管道盡可能大，這樣我們就可以嘗試盡可能有選擇性，並且我們正在選擇新的交易來做。

And I'd also point out that the weighted average spread on those transactions was asked for five 50. As Dan mentioned, leverage is right around 5.1 times and LTV was just a smidge north of 40%. So and I feel good about those credits.

我還想指出的是，這些交易的加權平均價差被要求為 5 50。正如 Dan 所提到的，槓桿率約為 5.1 倍，LTV 略高於 40%。所以我對這些積分感覺很好。

Got it. Thank you for that clarification. It does seem a little bit consistent with what we've heard from some other teams where some of the better risk-adjusted opportunities for a little bit lower than sort of the super upper middle market range. And more recently, I guess the question. When you look at your pipeline going forward, do you expect that to sort of persist and in or do you expect to go back up to the really upper tier of the middle market and then some and I'll leave it there. Thank you.

知道了。謝謝你的澄清。這似乎與我們從其他一些團隊聽到的情況有點一致，其中一些更好的風險調整機會比超級中高端市場範圍略低。最近，我猜出了這個問題。當你審視未來的管道時，你是否期望這種情況能夠持續下去，或者你是否期望回到中間市場的真正上層，然後是一些，我會把它留在那裡。謝謝。

I think it's I think it's fair to expect that that's where would sort of continue to sort of play out, right? Because if we are defining that sweet spot as the $50 million to $150 million, that's kind of where the medians of the portfolios are sitting. Now, I'm not surprised that others would be saying that you have that very upper end or that even these larger companies, the $250 million sort of plus are a little bit less attractive sort of now than they were before. We would agree with that. You had a period in ‘22 and ‘23 were the syndicated loan market was closed. The private debt market was the only game in town. So you were getting paid in our opinion kind of exceptionally well for those.

我認為可以公平地期待這將繼續發揮作用，對嗎？因為如果我們將最佳點定義為 5,000 萬至 1.5 億美元，那麼這就是投資組合的中位數。現在，我並不感到驚訝的是，其他人會說你擁有非常高端的產品，或者即使是這些規模較大的公司，2.5 億美元以上的公司現在的吸引力也比以前有所下降。我們同意這一點。22 月 22 日和 23 日銀團貸款市場關閉。私人債務市場是城裡唯一的遊戲。所以我們認為，對這些人來說，你得到的報酬非常好。

Now those companies would have more option. So and that that wouldn't sort of surprise us. We have always had the view that these markets will coexist. They have for some sort of period of time. We just have the view that volatility will persist and will provide opportunities for ourselves and other private debt providers.

現在這些公司將有更多選擇。所以這不會讓我們感到驚訝。我們一直認為這些市場將會共存。他們已經有一段時間了。我們只是認為波動性將持續存在，並將為我們自己和其他私人債務提供者提供機會。

Thank you.

謝謝。

Sean Paul Adams, Raymond James investments.

肖恩·保羅·亞當斯，雷蒙德·詹姆斯投資。

Good morning, Tom, on Keller Meyer, you guys said you are pretty happy with the progress, but the equity was written down approximately 50%. Should we expect that even if progress continues to be positive, if there's any more downside in that asset?

早安，湯姆，關於凱勒·邁耶，你們說你們對進展非常滿意，但股權被減記了大約 50%。我們是否應該預期，即使進展持續積極，該資產是否還會有更多的下行空間？

Yes, I think that's a very fair question. I think we are happy with all the work that us and the other lenders there have been doing as we've moved that company outside of the sponsor ownership and inside or under the control of that sort of group. These are kind of Herculean list. We've got a lot of upgrade resources on our workout and restructuring team as do I think the other lenders involved there. So the equity sort of mark is a little bit of a point in time and with how your earnings may have either moved or market multiples might have moved. But I think when we talk about the progress talking about, there's a longer-term game there about stabilizing and hopefully growing that business.

是的，我認為這是一個非常公平的問題。我認為我們對我們和其他貸款人所做的所有工作感到滿意，因為我們已將該公司移出贊助商所有權並置於此類團體的內部或控制之下。這些都是艱鉅的清單。我們的重組和重組團隊擁有大量升級資源，我認為參與其中的其他貸款機構也是如此。因此，股票類型的標記在一定程度上是一個時間點，與您的收益可能發生的變化或市場倍數可能發生的變化有關。但我認為，當我們談論所談論的進展時，存在著一個關於穩定並希望發展該業務的長期遊戲。

Yes, we're going to I think in terms of KBS, a couple more things on, you know, clearly given that the equity is levered, small movements in EBITDA are going to have outsized impact on a quarterly basis on that on that, Mark, and we are happy with where this thing is trending. We are working with management. We have a new value-creation plan in place. We're definitely focused operationally on this business on how to reduce churn, improve operations, reduce SG&A, et cetera, et cetera. And a lot of work is being done in the background there. And I think really the proof in that is going to be over the longer term. And we are we are bullish on the prospects of this business.

是的，我認為就 KBS 而言，還有更多事情，你知道，顯然考慮到股權是槓桿化的，EBITDA 的小幅變動將對季度產生巨大影響，馬克，我們對這件事的發展趨勢感到滿意。我們正在與管理層合作。我們制定了新的價值創造計劃。我們在營運上絕對專注於如何減少客戶流失、改善營運、減少銷售管理費用等。許多工作正在後台進行。我認為真正的證據將是長期的。我們看好這項業務的前景。

Perfect. Thank you for that color, on turning to just on Neurogen's originations and spread compression. And you guys said that the quality of the investment opportunities is high and that the top performers are actually being moved by the sponsors, how much, if any, of the current spread compression is actually mix related due to the higher quality companies already having embedded lower spreads? And how much is like for like credit quality spread compression versus just raw competitive pressure?

完美的。謝謝你的顏色，關於 Neurogen 的起源和傳播壓縮。你們說投資機會的品質很高，表現最好的公司實際上是被贊助商感動了，目前的價差壓縮有多少（如果有的話）實際上與混合相關，因為更高品質的公司已經嵌入了點差更低？信用品質利差壓縮與原始競爭壓力有何不同？

Yes, there's not a problem. There's probably not a perfect answer to that. I would probably trying to break it down a little bit. We have seen, let's say, these higher quality businesses being the ones that are being moved by certain sponsors by We do know very clearly, there's a fair amount of pressure on GPs broadly from their LPs to monetize assets or those LTVs can get some money back. And these better assets, I think just have not had the moves on valuation multiples. So there are more perfect sort of candidates to sell.

是的，沒有問題。對此可能沒有完美的答案。我可能會嘗試將其分解一點。我們已經看到，比方說，這些高品質的企業正在被某些贊助商推動，我們確實非常清楚，普通合夥人普遍面臨著來自有限合夥人的相當大的壓力，要求他們將資產貨幣化，或者那些LTV可以獲得一些錢後退。我認為這些更好的資產只是估值倍數沒有改變。因此，有更完美的候選人可供出售。

Yes, I think the spread compression of the spread compression probably more broadly, I would probably go through the journey of if you think about January ‘22, the regular way deal was, let's call it, 5.75 that probably gapped out to 6.50 in the summer of 23. That was all due to a clear belief or a clear concern about where the economy was going hard landing soft landing in that sort of debate. I think once inflation was deemed to be more under control.

是的，我認為利差壓縮的利差壓縮可能更廣泛，如果你想想 1 月 22 日，我可能會經歷這樣的旅程，常規交易方式是，我們稱之為 5.75，可能會跳空至 6.50 23年夏天。這完全是由於在此類辯論中對經濟將走向硬著陸或軟著陸的明確信念或明確擔憂。我認為一旦通貨膨脹被認為更加受到控制。

And this view, I mean, the market until probably recently has not even been talking about a soft landing but talking about sort of growth. So the average spreads probably came down closer to [500] right now, I wouldn't say we were surprised by that. Obviously, we would like the loan portfolio to be as wide as possible, but in most fixed income instruments, when the benchmark moves as much as it has credit spreads do tighten. And if you think about just the regular way loan and the examples I gave you of the January 2020 levels, probably 7.58%, 8% of all in and even a loan today is 10.5%.

我的意思是，這種觀點直到最近，市場甚至還沒有談論軟著陸，而是談論某種成長。因此，平均點差現在可能下降到接近 [500]，我不會說我們對此感到驚訝。顯然，我們希望貸款組合盡可能廣泛，但在大多數固定收益工具中，當基準變動幅度與信用利差一樣大時，信用利差就會收緊。如果你考慮一下常規貸款和我給你的 2020 年 1 月水準的例子，可能是 7.58%、8%，甚至今天的貸款也是 10.5%。

Yes, sort of plus percents of all. And so we still think that's really interesting risk-adjusted returns.

是的，大概是百分之幾。因此，我們仍然認為風險調整後的回報非常有趣。

Perfect. That's wonderful color. I really appreciate it.

完美的。那真是美妙的顏色。我真的很感激。

(Operator Instructions) Bryce Rowe, B. Riley.

（操作員說明）Bryce Rowe、B. Riley。

Thanks a lot. And wanted to maybe start on the on the supplemental dividend. Obviously, you all announced a variable dividend approach some time ago and the special programs run its course as you as you've noted, and it sounds like you've got, you know, a decent amount of spillover, maybe almost three quarters of a some of the current regular plus supplemental in your pocket. So my question is if we do start to kind of get lower rates and lower earnings lower NI associated with those lower rates. At what point does the supplemental kind of go away or are you looking to go to get the spillover down to let's call it two quarters worth of base or base plus supplemental?

多謝。並想也許從補充股利開始。顯然，你們不久前都宣布了可變股息方法，並且特別計劃按照您所指出的那樣運行，聽起來您已經獲得了相當多的溢出效應，也許幾乎是四分之三一些當前的常規和補充在你的口袋裡。所以我的問題是，我們是否確實開始獲得較低的利率和較低的收入，以及與較低利率相關的NI。補充類型在什麼時候消失，或者您是否希望將溢出效應降低到讓我們稱之為基礎或基礎加補充的兩個季度的價值？

And I'll let Brian and Steven sort of add to this, but I think we have been pretty in trying to listen to the market for a long time about sort of the dividend and sort of the dividend policy, I think, which is why I'm kind of where we are today and you have that 64 is the base as kind of your rates were moving, it felt appropriate to have the supplemental on your neck to that, we'll call a very comfortable base and then we did make a statement to the market that we intended to really pay out kind of what we're earning.

我會讓布萊恩和史蒂文補充一下，但我認為我們長期以來一直在努力傾聽市場關於股息和股息政策的聲音，我認為，這就是為什麼我現在的情況就是這樣，64 是基礎，因為你的費率正在變化，感覺適合在你的脖子上添加補充，我們稱之為非常舒適的基礎，然後我們做了向市場聲明，我們打算真正支付我們所賺取的費用。

Hence, that was the $0.05 sort of special, but I think we are fortunate with the spill back dollars to ensure that we keep the total 70 consistent for a extended period of time. Obviously, the whole sector will have some earnings sort of pressure in a downward kind of rate environment. And I guess I think that's clearly acknowledged. I think we are focused on, though, where are the levers that we do have for earnings growth, that would go back to the leverage question that we asked before as well as you're looking to reduce any non-income-producing assets to sort of help drive that. But if anything else, Steve or Brian, do you want to have any sort of?

因此，這就是 0.05 美元的特別優惠，但我認為我們很幸運，有足夠的資金回饋，以確保我們在較長一段時間內保持 70 美元的總數一致。顯然，在利率下行的環境下，整個產業將面臨一定的獲利壓力。我想我認為這一點已得到明確承認。不過，我認為我們關注的是我們確實擁有的獲利成長槓桿在哪裡，這又回到了我們之前提出的槓桿問題，以及您希望將任何非創收資產減少到有點幫助推動這一點。但史蒂夫或布萊恩，如果有別的事情，你們想要什麼嗎？

Well, yes. Look, I think I think we do have a couple of larger positions that are non-income producing that we are looking to monetize. We can't guarantee when or if that happens, but that also is a pretty meaningful lever for us.

嗯，是的。聽著，我想我們確實有一些較大的職位，這些職位是不產生收入的，我們希望將其貨幣化。我們無法保證這種情況何時或是否會發生，但這對我們來說也是一個非常有意義的槓桿。

Yes, that's a good segue, Brian, from a kind of the next question I had obviously good optics around what happened at Global Jet coming off nonaccrual and clearly trying to simplify that capital structure to maybe get a better endgame or outcome in place? Is there a is there a kind of a similar playbook with JW Aluminum given that it is legacy and it's a similar kind of instrument in the capital structure, it's kind of market the same level that Global Jet was. Just kind of curious if there's an opportunity for to simplify that capital structure and maybe put it in a better position for that for that monetization outcome you.

是的，這是一個很好的延續，布萊恩，從下一個問題開始，我顯然對Global Jet 發生的事情有很好的看法，它不再是非應計的，並且顯然是在試圖簡化資本結構，以便可能獲得更好的結局或結果？是否有與 JW Aluminium 類似的劇本，因為它是遺產，並且在資本結構中是類似的工具，它的市場與 Global Jet 處於同一水平。只是有點好奇是否有機會簡化資本結構，並可能使其處於更好的位置，以獲得貨幣化結果。

Want to start?

想開始嗎？

Yes. I mean, look, I think each company sort of has a different ownership base in senior securities. And I think in the case of GJC. GlobalTrak, we had a lot of alignment in terms of simplifying the capital structure. I think in the case of JWN. The capital structure is maybe a little bit more complex. I'm with different holders, but I think the focus on monetization of both is still in a front and center for us.

是的。我的意思是，我認為每家公司在優先證券方面都有不同的所有權基礎。我認為以 GJC 為例。GlobalTrak，我們在簡化資本結構方面有許多共識。我認為以 JWN 為例。資本結構可能有點複雜。我和不同的持有者在一起，但我認為對兩者貨幣化的關注仍然是我們的首要任務。

And I think that's why we've tried to provide the additional clarity in the prepared remarks about that 12% remains in that legacy sort of bucket, but for those physicians is roughly 70 or 75% of them. And I don't I wouldn't call it easy to be able to monetize them. Three of them are kind of in equity positions where we're not in control. But I think we've I've done a lot to improve those positions to stabilize those positions. And I think we've done a lot working together with the other partners in those deals to maximize the outcome.

我認為這就是為什麼我們試圖在準備好的評論中提供額外的清晰度，即 12% 仍屬於遺留類別，但對於那些醫生來說，大約是其中的 70 或 75%。我不認為將它們貨幣化並不容易。其中三個處於我們無法控制的股權位置。但我認為我們已經做了很多工作來改善這些狀況以穩定這些狀況。我認為我們在這些交易中與其他合作夥伴合作做了很多工作，以最大限度地提高成果。

Appreciate it. That's all for me.

欣賞它。這就是我的全部。

At this time, I am showing no further questions. I would like to turn it back to Dan Pietrzak for closing remarks.

目前，我沒有再提出任何問題。我想請 Dan Pietrzak 作結束語。

Well, thank you all for your time today. We're always available for any follow-up points that you may have. Please do enjoy the rest of your summer, and we look forward to speaking to you again in the fall. A good day.

好的，謝謝大家今天抽出時間。我們隨時為您解答任何後續問題。請盡情享受您剩下的夏天，我們期待在秋天再次與您交談。美好的一天。

Thank you for your participation in today's conference. This concludes the program. You may now disconnect.

感謝您參加今天的會議。程式到此結束。您現在可以斷開連線。