FS KKR Capital Corp (FSK) 2025 Q3 法說會逐字稿

Good morning, ladies and gentlemen. Welcome to the FS KKR Capital Corp.'s third quarter 2025 earnings conference call. (Operator Instructions) Please note that this conference is being recorded.

女士們、先生們，早安。歡迎參加KKR Capital Corp. 2025年第三季財報電話會議。（操作員說明）請注意，本次會議正在錄音。

At this time, Anna Kleinhenn, Head of Investor Relations, will proceed with the introduction. Ms. Kleinhenn, you may begin.

此時，投資者關係主管安娜·克萊因亨將進行介紹。克萊因亨女士，您可以開始了。

Thank you. Good morning, and welcome to FS KKR Capital Corp.'s third quarter 2025 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. 2025 年第三季財報電話會議。請注意，在本次電話會議中，FS KKR Capital Corp. 可能簡稱為 FSK、基金或公司。今天的電話會議正在錄音，錄音重播將保留30天。FSK昨天發布的新聞稿包含了回放訊息。

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 September 30, 2025. A link to today's webcast and the presentation is available on the For Investors section of the company's website under Events & 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 已在其網站上發布了一份演示文稿，其中包含有關其截至 2025 年 9 月 30 日的季度投資組合和財務業績的補充財務資訊。今天的網路直播和簡報的連結可在公司網站「投資者」部分的「活動與簡報」欄位中找到。請注意，此通話屬於 FSK 所有。任何未經授權的轉播本次通話的內容均嚴格禁止。

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。請您參考 FSK 向美國證券交易委員會提交的最新文件，以了解可能導致實際結果或業績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 third quarter earnings release that was filed with the SEC on November 5, 2025. 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. 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，本次電話會議也將涉及一些非GAAP財務指標。對於此類措施，可在 FSK 於 2025 年 11 月 5 日向美國證券交易委員會提交的第三季收益報告中找到與最直接可比較的 GAAP 措施的調節表。非公認會計準則資訊應被視為補充訊息，不應單獨考慮，也不應取代根據公認會計準則編制的相關財務資訊。此外，這些非GAAP財務指標可能與其他公司報告的類似名稱的指標不同。如需本公司最新的美國證券交易委員會文件副本，請造訪 FSK 的網站。

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

出席今天電話會議的有：執行長兼董事長邁克爾·福爾曼；首席投資官兼總裁丹·皮特扎克；以及首席財務官史蒂文·莉莉。今天與我們一起參加電話會議的還有聯合首席營運長德魯·奧圖爾和瑞安·威爾遜。

I'll now turn the call over to Michael.

現在我將把電話交給麥可。

Thank you, Anna, and good morning, everyone. Thank you all for joining FSK's Third Quarter 2025 Earnings Conference Call. I'd like to start today's call with a few market observations.

謝謝你，安娜，大家早安。感謝各位參加FSK 2025年第三季財報電話會議。我想先就今天的市場狀況談談一些看法。

We believe the BDC industry in general and FSK in particular, are resilient. The BDC industry's ability to navigate historical periods of volatility, whether due to interest rate adjustments, asset prices, inflationary pressures or spread compression has been strong. The primary reason so many BDCs successfully navigated prior period of volatility has been the lowly levered capital structures with which many companies, including FSK operate. When interest rates began moving up just a few years ago in response to inflationary pressures, many industry observers became overwhelmingly negative in their predictions for BDCs. Not only did the vast majority of BDC portfolio companies navigate this period of adjustment, BDC operators did as well, with many of us delivering sustained quarters of higher levels of net investment income, and higher dividends for shareholders.

我們認為，BDC 產業整體上，尤其是 FSK 產業，具有很強的韌性。BDC 產業應對歷史波動時期（無論是利率調整、資產價格波動、通膨壓力或利差收窄）的能力一直很強。許多 BDC 之所以能夠成功度過先前的波動期，主要原因是包括 FSK 在內的許多公司都採用了低槓桿資本結構。幾年前，當利率因通膨壓力開始上升時，許多業內觀察家對商業發展公司 (BDC) 的預測普遍持悲觀態度。不僅絕大多數 BDC 投資組合公司順利度過了這段調整期，BDC 營運商也同樣如此，我們中的許多人連續幾個季度實現了更高的淨投資收益，並為股東帶來了更高的股息。

As interest rates have started declining, many industry observers once again, are predicting difficult times ahead for BDCs. At its heart, the BDC industry is a spread lending business built on the back of diversified pools of assets and strong balance sheets. So while we expect the Federal Reserve will continue to reduce rates over the coming quarters, that reduction in rates will be immediately helpful to portfolio companies from an interest burden standpoint and likely will generate additional M&A activity.

隨著利率開始下降，許多業內觀察家再次預測，商業發展公司（BDC）未來將面臨艱難時期。從本質上講，BDC 行業是一種以多元化資產池和強勁的資產負債表為基礎的利差貸款業務。因此，儘管我們預計聯準會將在未來幾季繼續降息，但從利息負擔的角度來看，降息將立即對投資組合公司有所幫助，並可能引發更多的併購活動。

We also believe that while net investment income levels necessarily will decline from the recent highs, FSK in particular, and the BDC industry in general, are well positioned to continue providing investors with an attractive current income stream as compared to the risk-free rate. And with that, I'd like to turn to a quick overview of FSK's quarterly results and a few comments on our forward dividend strategy, which will begin in the first quarter of 2026.

我們也認為，雖然淨投資收益水準必然會從近期的高點下降，但 FSK 以及整個 BDC 產業都處於有利地位，能夠繼續為投資者提供相對於無風險利率而言具有吸引力的當前收益流。接下來，我想快速概述一下 FSK 的季度業績，並就我們即將於 2026 年第一季開始實施的股息策略發表一些看法。

During the third quarter, FSK generated net investment income, and adjusted net investment income of $0.57 per share as compared to our public guidance of approximately $0.58 and $0.57 per share, respectively. Additionally, our net asset value increased to $21.99 compared to $21.93 as of the end of the second quarter. On October 8, 2025, we announced that our Board declared a fourth quarter distribution totaling $0.70 per share, consisting of our base distribution of $0.64 per share and a supplemental distribution of $0.06 per share. In contemplating our forward dividend strategy, we consider the prevailing interest rate environment, the overall investing environment and future unsecured debt maturities. Additional considerations included annualized BDC dividend yields on net asset values over various market cycles and our projected level spillover income as of December 31 of this year. Finally, we actively listen to investors in terms of their views of our historical base plus supplemental dividend policy, as we were one of the first BDCs to implement such a policy some years ago.

第三季度，FSK 的淨投資收益和調整後淨投資收益分別為每股 0.57 美元，而我們先前的公開預期分別為每股約 0.58 美元和 0.57 美元。此外，截至第二季末，我們的淨資產價值從 21.93 美元增至 21.99 美元。2025 年 10 月 8 日，我們宣布董事會批准第四季分紅，每股總額為 0.70 美元，其中包括每股 0.64 美元的基本分紅和每股 0.06 美元的補充分紅。在考慮未來的股利策略時，我們會考慮當前的利率環境、整體投資環境以及未來的無擔保債務到期。其他考慮因素包括不同市場週期內淨資產價值的 BDC 年化股息收益率以及我們截至今年 12 月 31 日的預期溢出收入水準。最後，我們積極聽取投資者對我們歷史基礎加補充股利政策的意見，因為我們是幾年前首批實施此類政策的商業發展公司之一。

The culmination of this process yields the following conclusions. First, investors appreciate the base plus supplemental strategy as a method of receiving additional dividend income on a real-time basis. Next, we believe FSK's annualized dividend yield expressed as a percentage of our net asset value, we'll continue to be very competitive with our peer group, and we'll have the ability to vary over time as our net investment income varies, thereby maximizing current income to our investors.

經過這個過程，最終得出以下結論。首先，投資人欣賞基本股利加補充股利策略，因為它能讓他們即時獲得額外的股利收入。其次，我們相信，FSK 的年化股息收益率（以淨資產價值的百分比表示）將繼續在同業中保持強大的競爭力，並且我們將能夠隨著淨投資收益的變化而變化，從而最大限度地提高投資者的當前收益。

For 2026, we expect FSK's total distribution to equate to an annualized yield on our net asset value of approximately 10%. Consistent with the BDC industry's long-term yield of between 9% and 10%. We currently expect our quarterly distribution will be comprised of a base distribution of approximately $0.45 per share, and will be supplemented by our quarterly net investment income over and above this level. During the first quarter of 2026, we currently expect our total distribution will approximate $0.55 per share based on future interest rates, refinancing activities on the right side of the balance sheet and overall investment yields. We expect our total quarterly distribution will vary over time.

預計到 2026 年，FSK 的總分紅將相當於我們淨資產價值的年化報酬率約為 10%。與 BDC 產業的長期收益率在 9% 到 10% 之間一致。我們目前預計季度分紅將包括每股約 0.45 美元的基本分紅，並在此基礎上增加季度淨投資收益。根據未來的利率、資產負債表右側的再融資活動和整體投資收益率，我們目前預計 2026 年第一季的總分紅將約為每股 0.55 美元。我們預計季度總分紅會隨時間而變化。

And with that, I'll turn the call over to Dan.

接下來，我會把電話交給丹。

Thanks, Michael. From a macro standpoint, we have seen encouraging signs in the broader market, which point to continued growth in capital markets activity. Momentum in M&A is building, and we are seeing that strength reflected in our own pipeline as the number of deals we evaluated in the third quarter increased by approximately 30% year-over-year. While some economic indicators have shown pockets of weakness, the overall labor market continues to remain healthy, supported by solid corporate earnings. Additionally, higher FICO score consumers continue to spend at accelerated levels.

謝謝你，麥可。從宏觀角度來看，我們已經看到大盤出現了一些令人鼓舞的跡象，這表明資本市場活動將繼續成長。併購活動勢頭強勁，我們自身的專案儲備也反映了這一趨勢，第三季我們評估的交易數量比去年同期成長了約 30%。儘管一些經濟指標顯示局部疲軟，但在穩健的企業獲利支撐下，整體勞動市場仍保持健康。此外，信用評分較高的消費者消費水準也持續加速成長。

Looking ahead, if the Fed can engineer a soft landing and tariff concerns can be put behind us, we believe economic conditions could continue to improve. Separately, we would note there has been a significant amount of attention to certain specific defaults in the broader marketplace. We believe those are not private credit matters and our very specific situation and names. We would also note we have no exposure to First Brands or Tricolor.

展望未來，如果聯準會能夠實現經濟軟著陸，關稅問題能夠解決，我們相信經濟狀況可能會繼續改善。另外，我們注意到，在更廣泛的市場中，某些特定違約行為受到了相當多的關注。我們認為這些並非私人信用問題，而是我們非常具體的情況和姓名。我們也要指出，我們與First Brands或Tricolor沒有任何業務往來。

Trade tensions and the recent government shutdown continue to heighten our awareness around U.S. government and tariff-related exposures. Our portfolio has low single-digit exposure to U.S. government-related borrowers. And while there could be timing effects on payments or short-term liquidity constraints, those risks have yet to materialize. Additionally, ongoing tariff discussions continue to drive market volatility. But as we have stated in the past, our exposure to tariff-impacted businesses remains in the low to mid-single digits. Both topics are on our watch list, though, and are being closely monitored.

貿易緊張局勢和最近的政府停擺繼續提高我們對美國政府和關稅相關風險的認識。在我們的投資組合中，與美國政府相關的借款人佔比僅為個位數。雖然可能會對支付時間或短期流動性限制產生影響，但這些風險尚未成為現實。此外，持續不斷的關稅談判繼續加劇市場波動。但正如我們過去所言，我們對受關稅影響的業務的風險敞口仍然處於個位數低至中位數水平。這兩個主題都在我們的關註名單上，我們正​​在密切關注。

We are seeing attractive opportunities in the origination market with a growing number of opportunities coming from new issuers, which further reflects the steady pickup in M&A activity. Our focus remains on U.S.-based direct lending and top of the capital structure risk. In addition, asset-based finance investments remain an important and complementary part of the portfolio, providing incremental yield while outperforming traditional corporate credit from a default perspective.

我們看到，隨著越來越多的新發行人湧現，債券發行市場出現了許多誘人的機會，這也進一步反映了併購活動的穩定回升。我們仍然專注於美國境內的直接貸款和資本結構頂端風險。此外，資產融資投資仍是投資組合中重要且互補的一部分，在違約風險方面優於傳統企業信貸，同時也能提供額外的收益。

During the quarter, we had two realizations within our ABF portfolio. Our investment in Caledon Commercial Finance was repaid in full ahead of its 2026 maturity. Caledon is an asset-based lending platform for capital-intensive businesses with a focus on retail and industrial companies. We initially made this investment in November of 2020 and the repayment resulted in a 13.3% IRR. Additionally, our investment in Weber was successfully exited in connection with the company's acquisition of Blackstone products. Weber is a manufacturer and distributor of outdoor barbecues and grill accessories. We initially invested in Weber in December of 2023 via an accounts receivable financing facility. The exit resulted in a 16.8% IRR.

本季度，我們的 ABF 投資組合中有兩筆收益實現。我們在 Caledon Commercial Finance 的投資已在 2026 年到期前全部償還。Caledon 是一個以資本密集型企業為導向的資產抵押貸款平台，專注於零售和工業企業。我們最初在 2020 年 11 月進行了這項投資，償還後的內部報酬率 (IRR) 為 13.3%。此外，隨著 Weber 公司收購 Blackstone 產品，我們對 Weber 的投資也成功退出。Weber是一家生產和銷售戶外燒烤爐及燒烤配件的製造商和分銷商。我們最初於 2023 年 12 月透過應收帳款融資機制對 Weber 進行了投資。此次退出實現了 16.8% 的內部報酬率。

Turning to our investment activity. During the third quarter, we originated approximately $1.1 billion of new investments. Approximately 60% 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 billion of net sales and repayments, when factoring in sales to our joint venture, equated to a net portfolio increase of $109 million. New originations consisted of approximately 65% in first lien loans, 7% in subordinated debt, 15% in asset-based finance investments, 12% in capital calls to the joint venture, and 1% in other or equity investments. Our new direct lending commitments had a weighted average EBITDA of approximately $162 million, 6.2x of leverage through our security and a weighted average coupon of approximately SOFR plus 472 basis points.

接下來談談我們的投資活動。第三季度，我們新增投資額約 11 億美元。我們約 60% 的新投資都集中在對現有投資組合公司的追加融資和 KKR 的長期合作關係。我們的新投資，加上 10 億美元的淨銷售額和償還款，以及對我們合資企業的銷售額，相當於淨投資組合增加了 1.09 億美元。新發放的貸款中，約 65% 為優先擔保貸款，7% 為次級債務，15% 為資產融資投資，12% 為合資企業的資本募集，1% 為其他或股權投資。我們新的直接貸款承諾的加權平均 EBITDA 約為 1.62 億美元，透過我們的擔保實現 6.2 倍槓桿，加權平均票息約為 SOFR 加 472 個基點。

We continue to focus on upper middle market companies with EBITDA in the $50 million to $150 million range across a diverse set of industries and sectors. As of September 30, the weighted average EBITDA of our portfolio companies was $240 million, and the median EBITDA was $115 million. Our portfolio companies reported a weighted average year-on-year EBITDA growth rate of approximately 4% across companies in which we have invested in since April of 2018.

我們繼續專注於 EBITDA 在 5000 萬美元至 1.5 億美元之間的中高端市場公司，這些公司涵蓋多個行業和領域。截至 9 月 30 日，我們投資組合公司的加權平均 EBITDA 為 2.4 億美元，中位數 EBITDA 為 1.15 億美元。自 2018 年 4 月以來，我們投資的投資組合公司報告稱，其加權平均年比 EBITDA 成長率約為 4%。

Interest coverage levels remain healthy, with median third quarter coverage at 1.8x. Our governance and workout team has made significant progress on certain investments, which we discussed during our second quarter earnings call in August. Specific company updates are as follows. We completed the restructuring of Production Resource Group, or PRG in October, resulting in a market aligned capital structure, and we and our BDC co-lender will exercise effective control of the company. And while pricing and industry pressure remains, we believe the company will be in a much better position to create value going forward.

利息保障倍數保持健康，第三季中位數為1.8倍。我們的治理和重組團隊在某些投資項目上取得了顯著進展，我們在8月份的第二季財報電話會議上對此進行了討論。以下是公司具體的最新動態。我們在 10 月完成了 Production Resource Group（簡稱 PRG）的重組，從而實現了與市場相符的資本結構，我們和我們的 BDC 聯合貸款方將對公司行使有效控制權。儘管價格和行業壓力仍然存在，但我們相信，公司未來將更有能力創造價值。

Restructuring efforts associated with 4840 are progressing. Based upon progress to date, we anticipate being in a position to discuss the finalization of the restructuring on our fourth quarter earnings call.

與 4840 相關的重組工作正在推進中。根據目前的進展情況，我們預計將在第四季度財報電話會議上討論重組的最終方案。

KBS continues to perform in line with plan, and we are pleased with the workout team's efforts here, as we were able to effectuate change and stabilize the business quite quickly, and there continues to be a strategic interest in KBS. During the third quarter, no investments were added to nonaccrual status and one company was removed from nonaccrual status. Our first lien investment in newer technology was restructured during the quarter into a new accruing first lien loan and revolver. And we also received new preferred stock and common equity. The restructuring resulted in $29 million of cost and $18 million of fair value being removed from nonaccrual status. As of the end of the third quarter, nonaccruals represented 5% of our portfolio on a cost basis and 2.9% of our portfolio on a fair value basis. This compares to 5.3% of our portfolio on a cost basis and 3% of our portfolio on a fair value basis as of June 30.

KBS 繼續按計劃運營，我們對重組團隊的努力感到滿意，因為我們能夠很快地進行變革並穩定業務，而且 KBS 仍然保持著戰略意義。第三季度，沒有新增投資項目進入非應計狀態，同時有一家公司從非應計狀態移除。本季度，我們對新技術的第一留置權投資進行了重組，將其轉換為新的累積第一留置權貸款和循環貸款。我們也獲得了新的優先股和普通股。重組導致 2900 萬美元的成本和 1800 萬美元的公允價值從非應計狀態中移除。截至第三季末，非應計項目以成本計算占我們投資組合的 5%，以公允價值計算占我們投資組合的 2.9%。截至 6 月 30 日，以成本計算，這相當於我們投資組合的 5.3%；以公允價值計算，這相當於我們投資組合的 3%。

A Pro forma for the PRG restructuring, which closed subsequent to quarter end, our nonaccrual rate would be 3.6% on a cost basis and 1.9% on a fair value basis, assuming the remainder of the portfolio is unchanged. We also believe it is helpful to provide the market with information based upon FSK's assets originated by KKR Credit. Nonaccruals relating to the 90% of the portfolio, which has been originated by KKR Credit and the FSK Care Advisor, were 3.4% on a cost basis and 1.8% on a fair value basis as of the end of the third quarter. This compares to 3.8% on a cost basis and 2% on a fair value basis as of the end of the second quarter.

根據 PRG 重組的備考資料（該重組在季度末之後完成），假設投資組合的其餘部分保持不變，我們的非應計率按成本計算為 3.6%，以公允價值計算為 1.9%。我們也認為，向市場提供基於 KKR Credit 發起的 FSK 資產的資訊是有益的。截至第三季末，由 KKR Credit 和 FSK Care Advisor 發起的 90% 投資組合的非應計項目，以成本計算為 3.4%，以公允價值計算為 1.8%。相較之下，截至第二季末，以成本計算的比例為 3.8%，以公允價值計算的比例為 2%。

With that, I'll turn the call over to Steven.

接下來，我將把電話交給史蒂文。

Thanks, Dan. As of September 30, FSK's investment portfolio had a fair value of $13.4 billion, consisting of 224 portfolio companies. At the end of the third quarter, our 10 largest portfolio companies represented approximately 20% of the fair value of our investment portfolio, compared to 19% as of the end of the second quarter. We remain focused on senior secured investments as our portfolio consisted of approximately 58% first lien loans and 63% senior secured debt as of September 30. In addition, our joint venture represented approximately 13% of the fair value of our portfolio.

謝謝你，丹。截至 9 月 30 日，FSK 的投資組合公允價值為 134 億美元，由 224 家投資組合公司組成。第三季末，我們投資組合中最大的 10 家公司約占我們投資組合公允價值的 20%，而第二季末這一比例為 19%。我們仍專注於優先擔保投資，截至 9 月 30 日，我們的投資組合中約有 58% 為優先擔保貸款，63% 為優先擔保債務。此外，我們的合資企業約占我們投資組合公允價值的 13%。

As a result, when investors consider our entire portfolio, looking through to the investments in our joint venture and first lien loans total approximately 68% of our total portfolio, and senior secured investments totaled approximately 73% of our portfolio as of September 30. The weighted average yield on accruing debt investments was 10.5% as of September 30, a decrease of 10 basis points compared to 10.6% as of June 30. As a reminder, the calculation of weighted average yield is adjusted to exclude the accretion associated with the merger with FSKR.

因此，當投資者考慮我們的整個投資組合時，截至 9 月 30 日，合資企業和優先擔保貸款的投資總額約占我們總投資組合的 68%，優先擔保投資總額約占我們投資組合的 73%。截至9月30日，應計債務投資的加權平均收益率為10.5%，比6月30日的10.6%下降了10個基點。提醒一下，加權平均收益率的計算已進行調整，以排除與 FSKR 合併相關的收益。

Turning to our quarterly operating results. Our total investment income was $373 million for the third quarter, a decrease of $25 million compared to the second quarter. The primary components of our total investment income during the third quarter were as follows. Total interest income was $285 million, representing a decrease of $13 million quarter-over-quarter. The decline in interest income was driven by lower base rates, the repayment of higher-yielding investments and the flow-through of assets previously placed on nonaccrual status during the second quarter. Dividend and fee income totaled $88 million, a decrease of $12 million quarter-over-quarter. As we noted on our second quarter earnings call, we anticipated a decline in third quarter dividend income, primarily due to the timing of distributions from certain ABF investments, which were paid during the second quarter.

接下來來看看我們的季度經營業績。第三季我們的總投資收益為 3.73 億美元，比第二季減少了 2,500 萬美元。第三季我們總投資收益的主要組成如下。總利息收入為 2.85 億美元，比上一季減少了 1,300 萬美元。利息收入下降的原因是基準利率下降、高收益投資的償還以及第二季度之前被置於非應計狀態的資產的轉存。股息和費用收入總計 8,800 萬美元，比上一季減少了 1,200 萬美元。正如我們在第二季財報電話會議上所指出的，我們預計第三季股利收入將下降，主要是由於某些 ABF 投資的分配時間安排，這些分配是在第二季支付的。

Our total dividend and fee income is summarized as follows. $59 million of dividend income from our joint venture. Other dividends from various portfolio companies totaling approximately $25 million during the quarter, and fee income totaling approximately $4 million during the quarter. The decline in fee income quarter-over-quarter primarily was due to lower upfront fees associated with the mix of new investments during the quarter, lower prepayment fees due to the age of investments that repaid during the quarter and fewer amendments during the third quarter.

我們的總股息和費用收入總結如下：來自合資企業的股息收入為 5,900 萬美元。本季從各投資組合公司獲得的其他股息總計約 2,500 萬美元，以及本季的費用收入總計約 400 萬美元。費用收入較上季下降的主要原因是：本季新投資組合帶來的前期費用減少；本季償還的投資帳齡較長，導致預付款減少；以及第三季修改次數減少。

Our total expenses were $210 million during the third quarter, a decrease of $15 million compared to the second quarter. The change in total expenses primarily was driven by a decrease in interest expense due to lower leverage utilization during the quarter. The primary components of our total expenses were as follows. Our interest expense totaled $116 million, a decrease of $9 million quarter-over-quarter. Our weighted average cost of debt was 5.3% as of September 30. Management fees totaled $51 million, a decrease of $2 million quarter-over-quarter. Incentive fees totaled $33 million, a decrease of $3 million quarter-over-quarter. Other expenses totaled $10 million, a decrease of $1 million quarter-over-quarter. Lastly, we incurred $4 million of excise tax during the third quarter related to the finalization of 2024 tax items related to certain international and ABF investments.

第三季總支出為 2.1 億美元，比第二季減少了 1500 萬美元。總支出的變化主要是由於本季槓桿率降低導致利息支出減少。我們的總支出主要包括以下幾個方面。我們的利息支出總額為 1.16 億美元，比上一季減少了 900 萬美元。截至9月30日，我們的加權平均債務成本為5.3%。管理費總額為 5,100 萬美元，比上一季減少了 200 萬美元。激勵費用總額為 3,300 萬美元，比上一季減少了 300 萬美元。其他支出總計 1000 萬美元，比上一季減少了 100 萬美元。最後，第三季我們因最終確定與某些國際和 ABF 投資相關的 2024 年稅務項目而產生了 400 萬美元的消費稅。

The detailed bridge on our net asset value per share on a quarter-over-quarter basis is as follows. Our ending 2Q 2025 net asset value per share of $21.93 was increased by GAAP net investment income of $0.57 per share, and was increased by $0.19 per share due to an increase in the overall value of our investment portfolio. Our net asset value per share was reduced by our $0.70 per share total quarterly distribution paid during the quarter. The sum of these activities results in our September 30, 2025, net asset value per share of $21.99.

以下是我們每股淨值按季度環比變化的詳細比較。截至 2025 年第二季末，我們的每股淨資產價值為 21.93 美元，其中 GAAP 淨投資收益為每股 0.57 美元，投資組合整體價值增加，每股淨資產價值增加 0.19 美元。我們的每股淨值因本季支付的每股 0.70 美元季度分紅總額而減少。這些活動的總和使我們截至 2025 年 9 月 30 日的每股淨資產價值達到 21.99 美元。

From a forward-looking guidance perspective, we expect fourth quarter 2025 GAAP net investment income to approximate $0.51 per share and we expect our adjusted net investment income to approximate $0.56 per share. The detailed components of our fourth quarter guidance are as follows. Our recurring interest income on a GAAP basis is expected to approximate $270 million. We expect recurring dividend income associated with our joint venture to approximate $57 million. We expect fee and other dividend income to approximate $33 million.

從前瞻性指引的角度來看，我們預計 2025 年第四季 GAAP 淨投資收益約為每股 0.51 美元，調整後淨投資收益約為每股 0.56 美元。我們第四季業績指引的詳細組成部分如下。根據美國通用會計準則，我們的經常性利息收入預計約為 2.7 億美元。我們預計與合資企業相關的經常性股息收入約為 5700 萬美元。我們預計手續費和其他股息收入約為 3,300 萬美元。

From an expense standpoint, we expect our management fees to approximate $50 million. We expect incentive fees to approximate $29 million. We expect our interest expense to approximate $109 million. And we expect other G&A expenses to approximate 49 million. During the fourth quarter, we expect our excise taxes will approximate $20 million. We expect the net effect of to be partially offset by the accretion of our investments due to merger accounting.

從支出角度來看，我們預計管理費約為 5,000 萬美元。我們預計激勵費用約為 2900 萬美元。我們預計利息支出約為1.09億美元。我們預計其他一般及行政費用約為 4,900 萬。預計第四季消費稅收入將達到約 2,000 萬美元。我們預計，合併會計處理帶來的投資增值將部分抵銷淨影響。

Turning to our capital structure. In September, we issued $400 million of 6.125% unsecured notes due 2031. The which subsequently were swapped the floating rate via an interest rate swap agreement at a weighted average spread of SOFR plus 2.748%. Proceeds were used to repay a portion of the outstanding debt on our revolver. As of September 30, our gross and net debt to equity levels were 120% and 116%, respectively, compared to 131% and 120% at June 30. Our leverage remains within our target leverage range of 1 times to 1.25 times net debt to equity. At the end of the third quarter, our available liquidity was $3.7 billion and approximately 64% of our drawn balance sheet, and 44% of our committed balance sheet was comprised of unsecured debt.

接下來談談我們的資本結構。9 月份，我們發行了 4 億美元的 6.125% 無擔保票據，2031 年到期。隨後，這些債券透過利率互換協議以 SOFR 加 2.748% 的加權平均利差互換了浮動利率。所得款項用於償還我們循環貸款的部分未償債務。截至 9 月 30 日，我們的總負債權益比和淨負債權益比分別為 120% 和 116%，而 6 月 30 日分別為 131% 和 120%。我們的槓桿率仍維持在淨負債權益比為 1 倍至 1.25 倍的目標範圍內。第三季末，我們的可用流動資金為 37 億美元，約占我們已提取資產負債表的 64%，而我們承諾的資產負債表中有 44% 由無擔保債務構成。

And with that, I'll turn the call back to Michael for a few closing remarks before we open the call for questions.

接下來，我將把電話轉回給邁克爾，請他做幾句總結發言，之後我們將開始接受提問。

Thanks, Steven. We are pleased with our third quarter results, and we're also pleased to announce our 2026 distribution strategy, which we expect will result in an annualized yield of approximately 10% on our net asset value. From a forward-looking perspective, the pickup in M&A activity is positive to see as we believe our investment platform is particularly well suited to capitalize on this increased activity. On behalf of the team, we thank you all for joining the call and for your continued support.

謝謝你，史蒂文。我們對第三季的業績感到滿意，同時也很高興地宣布我們的 2026 年分紅策略，我們預計該策略將使我們的淨資產價值實現約 10% 的年化收益率。從展望未來的角度來看，併購活動的回升是一個正面的訊號，因為我們相信我們的投資平台特別適合利用這種成長的活動。我謹代表團隊，感謝各位參與這通通話，並感謝你們一直以來的支持。

Operator, we'd like to open the call for questions.

接線員，我們現在開始接受提問。

(Operator Instructions)

（操作說明）

Finian O'Shea, Wells Fargo Securities LLC

Finian O'Shea，富國證券有限責任公司

Hey everyone, good morning. So it looks like there was some improvement on a few of the legacy names, equity, which is, of course, very welcome. Question as it relates to that is to what extent is this indicative of you and the team advancing toward exiting these investments?

大家好，早安。所以看起來有些老牌公司的名稱和權益都有所改善，當然非常值得歡迎。與此相關的問題是，這在多大程度上表明您和您的團隊正在推進退出這些投資？

Fin, fair question. I think we have been pretty happy with the work that our workout and governance team has done across these names. We've talked about several of them on kind of calls in the past. I think some of them are complicated because they're effectively minority equity investments, where we don't have sort of perfect governance or control. I think that said -- we've talked about this in the past on some of the names like Global Jet, we've seen a really good job by the management team there, a real evolution of that balance sheet and kind of their own sort of ROE figures. I think we talked about the PRG restructuring, which is positive. JWA has got a bit of a benefit from tariffs. So we are very, very focused on looking to monetize there for a bunch of different reasons, including being able to redeploy into more interest-bearing assets, but progress.

嗯，問得好。我認為我們對我們的重組和管理團隊在這些股票上所做的工作相當滿意。我們過去在一些電話會議中討論過其中幾個問題。我認為其中一些比較複雜，因為它們實際上是少數股權投資，我們無法對其進行完美的治理或控制。我認為也就是說——我們過去曾討論過像 Global Jet 這樣的公司，我們看到那裡的管理團隊做得非常出色，資產負債表和他們的 ROE 數據都得到了真正的改善。我認為我們討論了PRG的重組，這是件好事。JWA從關稅中獲得了一些好處。因此，我們非常非常專注於尋求在那裡實現盈利，原因有很多，包括能夠將資金重新部署到更多產生利息的資產，以及取得進展。

Okay. That's helpful. And Steven, a follow-up, I'm sure a question we all have on the dividend is where -- what sort of progress you made towards your targets on spillover and what that might mean for, I guess, as an input to your formula on the variable, but also potential specials this year, next year or whenever?

好的。那很有幫助。史蒂文，還有一個後續問題，我相信大家對股利都有這樣的疑問：你們在實現外溢效應目標方面取得了哪些進展？這對於你們的變數公式的輸入意味著什麼？對於今年、明年或任何時候的潛在特別派息又意味著什麼？

Yes. Thanks, Fin. We certainly have made progress during 2025, which was our goal. I think we'll end the year probably cleaning out a little north of $100 million of spillover. Obviously, with our partnership investments, blockers that exist to and international partnerships, there is just the way those flow through in terms of our obligation, tax obligation, which does impact spillover. There's a build on the other side.

是的。謝謝，芬恩。我們確實在2025年取得了進展，達到了我們的目標。我認為我們今年年底可能會清理出略高於 1 億美元的溢出資金。顯然，對於我們的合夥投資、存在的障礙以及國際合夥關係，這些都會影響到我們的義務和納稅義務，進而影響外溢效應。另一邊正在施工。

So I think to the heart of your question, if we end the year when we go through the estimates at that time period, where with the reduction in the dividend going into 2026, if we have a balance there, then I think our expectation would be to make a onetime distribution or so to shareholders something first half of next year that would get us to the remaining part of our target balance of plus or minus 2 quarters' worth of dividends on an ongoing basis.

所以，我認為回到您問題的核心，如果我們在年底進行估算，考慮到2026年股息的減少，如果我們屆時還有餘額，那麼我認為我們預計會在明年上半年向股東進行一次性分配，以使我們達到目標餘額的剩餘部分，即持續支付兩個季度的股息。

And then also incumbent in the dividend strategy is that we -- I think the market -- you and the market should expect us to pay on a full annual basis, 100% of our GAAP net investment income. It may not hit that every quarter given that we pay excise tax in the fourth quarter. But for the full year, we would be paying basically 100% of NII.

此外，股息策略中還應包括：我們——我認為市場——你們和市場都應該期望我們每年支付 100% 的 GAAP 淨投資收益。考慮到我們在第四季度繳納消費稅，因此可能不會每個季度都達到這個目標。但就全年而言，我們基本上要支付 100% 的淨利息收入。

And will you have a -- sorry to sneak in a bonus question here. Like in the out years, if you look at the SOFR curve, if you might not be that much above the $0.45. Of course, we'll see, but let's just go with it. Are you going to want this sort of degree of headroom like given your sort of commitment to the variable nature? Like if your NOI goes to $0.45, are we going to see $0.35 plus $0.10, or something like that?

還有──不好意思，我在這裡插一個附加問題。就像未來幾年那樣，如果你看一下SOFR曲線，你會發現利率可能不會比0.45美元高太多。當然，我們拭目以待，但我們先這樣假設。鑑於你對可變性的這種承諾，你是否需要這種程度的調整空間？例如，如果你的淨營業收入 (NOI) 達到 0.45 美元，我們會看到 0.35 美元加上 0.10 美元，還是類似的情況？

Yeah, I'll start, and Steven can add to it and Fin, we charge extra for bonus questions.

好的，我先開始，史蒂文可以補充，芬恩，附加題需要額外收費。

I think we're probably not in the business of trying to give out multiyear sort of forward guidance because it's quite hard, right? It's a question of where did the SOFR go? I think you see that, I think not just us, but probably the whole industry has got a lower fee income number where we sit this quarter. So probably a bunch of variables that go into that.

我認為我們可能不會嘗試給出多年期的前瞻性指引，因為這相當困難，對吧？問題是：SOFR去哪了？我認為你們也看到了，不僅是我們，可能整個產業本季的費用收入都比較低。所以，這可能涉及很多變數。

We did take into account what I think you're talking about, right, the forward curve. We know we have the benefit of some cheaper liabilities that were issued in a different rate environment that will get refinanced. To kind of think about that base and then being mindful of paying out the supplemental ahead of that. But I think we were pretty deliberate in coming up with that $0.45 estimate.

我們確實考慮到了你所說的，對吧，也就是遠期曲線。我們知道，我們可以受益於一些在不同的利率環境下發行的、成本較低的負債，這些負債將進行再融資。要先考慮好基本工資，然後再注意提前支付補充工資。但我認為，我們經過深思熟慮才得出 0.45 美元的估算值。

Arren Cyganovich at Truist.

Truist 的 Arren Cyganovich。

Thanks, With respect to the PRG restructuring in October, can you provide any details in terms of what you received in return and was it close to the mark, et cetera?

謝謝。關於10月份PRG的重組，您能否提供一些細節，例如您從中獲得了什麼回報，是否接近預期等等？

Yeah. I mean it's probably just in a quite simple matter. It was a fairly messy capital structure because it had gone through a bunch of changes over the years. And that messy capital structure was difficult, I think, to allow the company to go forward, not just from a financial perspective, but a governance perspective. So I think that was the real driver.

是的。我的意思是，這可能只是件很簡單的事。由於多年來經歷了許多變革，其資本結構相當混亂。我認為，這種混亂的資本結構不僅從財務角度，而且從公司治理角度來看，都阻礙了公司的發展。所以我認為這才是真正的驅動因素。

I'm sorry. But what did you receive in exchange?

對不起。但你從中得到了什麼？

Well, from a value perspective, we were effectively in the same spot. From a governance perspective, though, I think we're sort of significantly different, because we are effectively already equity, but there was a bunch of other tranches of equity in there that complicated the matter. That's my point about cleaning it.

從價值角度來看，我們實際上是處於同一水平。但從治理角度來看，我認為我們與其他人有很大的不同，因為我們實際上已經是股權結構，但其中還有很多其他類型的股權，這使得事情變得複雜。這就是我建議你清洗它的原因。

Okay. That makes sense. And then the $1 billion that's coming due in January, the unsecured debt, you did an issuance recently. Was that kind of partial payment ahead of that? And what's the I mean, obviously, you didn't pay it down, but kind of a thought to use that cash kind of towards that? And then are you expecting to use the credit facilities to initially pay that and then kind of hit the market whenever you see it as attractive?

好的。這很有道理。還有10億美元將於1月到期的無擔保債務，你們最近發行了這筆債務。那是不是之前預付的部分款項？我的意思是，很顯然，你沒有還清貸款，但有沒有想過用那筆錢來支付這筆費用呢？然後，您是否打算先利用信貸額度支付這筆款項，然後在市場行情好的時候再進行投資？

Yeah. I mean I think that's pretty well said. I think the team has done a good job about being mindful about the liability side of the balance sheet, right? We're consistently extending the revolver to make sure we've got -- roughly always going back to that 5 years. We want to access and continue to access the unsecured bond market consistently. Clearly, the $400 million was done in advance of that, and we've got $3.7 billion of available liquidity. So I think we -- the liability side of these balance sheet are very important. We spend a lot of time thinking about that. But I think with that available liquidity, we feel in a good spot.

是的。我覺得這話說得挺好的。我認為團隊在關注資產負債表的負債方面做得很好，對吧？我們一直在延長左輪手槍的使用壽命，以確保我們始終擁有——大致總是回到那 5 年的時間。我們希望能夠持續穩定地進入無擔保債券市場。顯然，這 4 億美元是在此之前籌集的，我們有 37 億美元的可用流動資金。所以我認為，資產負債表的負債方非常重要。我們花了很多時間思考這個問題。但我認為，憑藉現有的流動資金，我們處境良好。

Okay, thank you.

好的，謝謝。

Ethan Kaye at Lucid Capital Markets.

Ethan Kaye，Lucid Capital Markets。

Hey guys, thanks for taking my question here. I wanted to get your thoughts on kind of how -- or if you guys are thinking about share buybacks. You indicated kind of intention to pay out 100% of NII with this new dividend framework and there's obviously many factors that kind of come into play when making these capital allocation decisions, but the stock is still trading at a meaningful discount. So wondering whether it's something you've considered or if you're kind of more comfortable returning all of NII to shareholders through the dividend?

大家好，感謝你們回答我的問題。我想了解一下你們對股票回購的看法——或者你們是否正在考慮股票回購。您已表示有意在新股息框架下派發 100% 的淨利息收入，顯然在做出這些資本配置決策時有很多因素需要考慮，但該股票目前仍處於相當大的折價交易狀態。所以我想知道您是否考慮過這種做法，或者您是否更傾向於將所有淨收益以股息的形式返還給股東？

Yeah. I think we have been quite active over the years on the share buyback sort of side. I think -- I don't look at the team here, but it's probably roughly $500 million over sort of those years. I think it's something that we do obviously talk about with the Board, we think about as a management team. I think you have to be mindful about things on the other side, right? Where you're sitting versus target leverage, if you do have kind of thoughts or concerns around the forward macro. I think we feel pretty good with what we're seeing kind of out there, but it is a little bit of a bumpy environment. So I think it does all get factored in there. But it will be something that we do consider.

是的。我認為這些年來我們在股票回購方面一直相當活躍。我認為——我沒有關注這個團隊，但那幾年加起來大概有 5 億美元。我認為這是我們顯然會和董事會討論的事情，也是我們管理團隊會考慮的事情。我覺得你也要留意對方的狀況，對吧？如果您對未來的宏觀經濟狀況有任何想法或擔憂，請考慮您目前的處境與目標槓桿之間的關係。我認為我們對目前的情況感覺還不錯，但環境確實有點崎嶇。所以我覺得這些因素都會被考慮進去。但我們會考慮這個問題。

Understood. And then switching gears a little. You mentioned 60% of fundings were to kind of add-ons or existing relationships this quarter, you also mentioned you're seeing a growing number of opportunities from new issuers. I'm wondering whether you think we're kind of approaching maybe an inflection in terms of new borrower fundings, kind of overtaking incumbent fundings and to the extent those generate better fees, what that might mean for fee income, which, as you mentioned, looks pretty muted this quarter and maybe could be a tailwind going forward?

明白了。然後稍微轉換一下話題。您提到本季 60% 的資金用於補充現有合作關係，您也提到您看到來自新發行人的機會越來越多。我想知道您是否認為我們在新借款人融資方面可能正接近一個轉折點，即將超過現有融資，並且如果這些融資能產生更高的費用，這對費用收入可能意味著什麼？正如您所提到的，本季費用收入看起來相當低迷，但這可能成為未來的利多因素？

Yeah. You got a couple of points in there, right? I think us like the larger sort of platforms like the incumbency position. So that is a benefit or beneficial and kind of useful as you build out your portfolio. We are busier as it relates to pipeline and deal flow. We were busier in the third quarter than the second quarter. I think the second quarter, we were busier than any of the prior 8 quarters on an individual basis.

是的。你這裡面有幾點說得通，對吧？我認為我們更喜歡像現任職位那樣的大型平台。所以，這對於建立你的投資組合來說是一個優勢，或者說是一個有益且有用的因素。我們在業務拓展和交易流程方面更加忙碌了。第三季比第二季更忙。我認為，就個人而言，第二季度我們比之前八個季度中的任何一個季度都更忙。

I think the market has sort of put tariffs behind it, although I'm not sure the full impact of tariffs has necessarily flowed through. I think there's general consensus on sort of where rates are going. So I think we've seen the -- that valuation gap or that willing buyer or willing seller sort of piece come together. I think if you go to the bank earnings calls, they were definitely talking about how their capital markets businesses, or their M&A businesses were more active. Obviously, some of those are much larger sort of deals. But when you do factor all that together with -- I think there's still a real push from private equity LPs to get a return of capital, and we know there's a lot of dry powder out there.

我認為市場已經逐漸將關稅拋諸腦後，儘管我不確定關稅的全部影響是否已經完全顯現出來。我認為大家對利率走向已經達成了大致共識。所以我覺得我們已經看到了——估值差距或願意買賣雙方的因素結合在一起。我認為，如果你去聽銀行的財報電話會議，他們肯定會談到他們的資本市場業務或併購業務更加活躍。顯然，其中一些是規模更大的交易。但當你把所有這些因素綜合考慮進去——我認為私募股權有限合夥人仍然非常渴望獲得資本回報，而且我們知道市場上還有很多未使用的資金。

I think we're constructive on that. I think everybody has talked about that for a long time. So I don't think we're in the business of trying to predict that anymore. But we do know that we're busier. I think it will have an impact on fee income, which could be positive, although I would note, I mean, kind of the upfront fees and the OIDs has probably narrowed in line with sort of spreads coming down. I think we are of an opinion as the market gets busier, some of that can unwind a bit, but I would just be mindful about that.

我認為我們在這方面進展順利。我想大家早就討論過這個問題了。所以我覺得我們沒必要再去預測這件事了。但我們知道，我們現在更忙了。我認為這將對手續費收入產生影響，這可能是正面的，儘管我想指出，我的意思是，預付費用和原始發行價差可能已經隨著價差的下降而收窄。我認為隨著市場交易變得更加活躍，一些因素可能會有所緩解，但我建議大家對此保持警惕。

Understood, appreciate it. Thanks guys.

明白了，謝謝。謝謝各位。

Thank you.

謝謝。

Kenneth Lee, RBC Capital Markets.

Kenneth Lee，加拿大皇家銀行資本市場。

Hey, good morning. Thanks for taking my question. Just a follow-up on the previous question. You mentioned that when you went about setting your base distribution level, you were pretty deliberate and looked at the forward curves. I just want to assess how resilient do you think that the base distribution level is being set through various economic cycles and various rate scenarios. Just wanted to tease that out a little bit more.

嘿，早安。謝謝您回答我的問題。這是我對上一個問題的後續問題。你提到，在設定基本分配水準時，你非常謹慎，並且查看了遠期曲線。我只是想評估一下，您認為基本分配水準在各種經濟週期和各種利率情境下的穩定性如何。只是想再深入探討一下。

Yeah. No, I mean, it's -- I don't think we would have said it if we didn't have a degree of confidence for where we kind of saw the various variables going forward. You are correct. I think there's a lot of sort of pieces of that puzzle in there. But just to say it again, we did look at where that forward curve would go, we did look at refinancing those liabilities. We did not give ourselves a lot of benefit in there, or what would be kind of upside levers, right, i.e., if spreads do sort of gap back out, or a big benefit of assets rotating out of a non-income-producing bucket into an income-producing bucket. So I think we put all that together, to try to be mindful about that. And we -- as we talked about in the last call, we wanted to get ahead of this. We wanted to provide transparency in there.

是的。不，我的意思是──如果我們對未來各種變數的發展方向沒有一定程度的信心，我想我們是不會這麼說的。你說得對。我認為這裡麵包含了很多拼圖碎片。但我想再次強調，我們確實研究了遠期曲線的走向，也研究瞭如何為這些負債進行再融資。我們在這點上並沒有為自己帶來多少好處，或者說，沒有帶來多少上漲的槓桿效應，例如，如果利差出現跳空回升，或者資產從非收益型資產池轉移到收益型資產池，就能帶來多少好處。所以我覺得我們把所有這些因素綜合起來，就是為了注意這一點。正如我們在上次通話中討論的那樣，我們想先發製人。我們希望提高透明度。

The only point that I would make because I think it is important. I do think investors need to look at the total distribution number, though, right? We're -- we gave some thoughts about where that sets for Q1 and for all of '26. But clearly, in these earlier years, especially when those lower-priced fixed rate debt instruments are outstanding, there's some additional earnings there. So I would be focused on the total, but the components are the base and the supplement.

我只想提一點，因為我覺得這一點很重要。不過，我認為投資人確實需要關注總分配額，對吧？我們－我們提出了一些關於第一季以及2026年全年發展方向的想法。但顯然，在早期，尤其是在那些價格較低的固定利率債務工具尚未償還的時候，會產生一些額外的收益。所以我會關注整體，但組成部分是基礎和補充。

Got you. Very helpful there. And one follow-up, if I may. You commented on seeing some increased potential deal activity. What are you seeing in terms of spreads on the some of the newer investments there? Have you seen a potential pickup or widening just given the amount of deal activity there?

抓到你了。那方面幫了我很大的忙。如果可以的話，我還有一個後續問題。您提到看到一些潛在的交易活動增加。您認為一些較新的投資項目的利差如何？鑑於當地的交易活躍程度，您是否看到了潛在的成長或擴張趨勢？

Yeah. We haven't seen that, to be honest, Ken. I think we're probably still in the early days of the deal activity. And I think you got to be -- probably looking at the other side of what the inflows are to the market. I think we've talked about for some time now where we've been in a bit of this technical whereby a fair amount of capital has been raised for the space and the M&A volumes were at just sort of a lower level. So I think it's going to take a little bit more time for that to unwind if it's going to impact spreads, although I could foresee that as happening.

是的。說實話，我們還沒見過這種情況，肯。我認為我們可能還處於交易活動的早期階段。我認為你必須──或許應該從另一個角度來看流入市場的資金。我認為我們已經討論過一段時間了，我們一直處於一種技術性的狀態，即該領域已經籌集了相當多的資金，但併購交易量卻處於較低水平。所以我認為，如果這種情況要對價差產生影響，還需要一些時間才能消退，儘管我預見到這種情況會發生。

I think we probably were expecting a little bit more continued volatility in the market across some of the higher profile defaults that we had mentioned in our prepared remarks. I think that lasted for a little bit, but when I'm talking a little bit, I'm talking about a couple of days. But I think that's kind of on our mind as well. So I'm not seeing that yet, but we are seeing pretty high-quality companies access the direct lending market, which we view as a positive.

我認為我們可能會預期，在我們事先準備好的發言稿中提到的一些備受矚目的違約事件發生後，市場會出現更多持續的波動。我認為這種情況持續了一段時間，但我說的「一段時間」是指幾天。但我認為這也是我們一直在想的問題。所以目前我還沒有看到這種情況，但我們看到很多高品質的公司進入了直接貸款市場，我們認為這是一個正面的訊號。

Got you. Very helpful there. Thanks again.

抓到你了。那方面幫了我很大的忙。再次感謝。

Thanks, have a good day.

謝謝，祝您今天愉快。

Robert Dodd, Raymond James.

Robert Dodd，Raymond James。

We can go on to the next question and try to go back to Robert. If he's, maybe, on mute.

我們可以繼續下一個問題，然後試著聯絡羅伯特。或許他處於靜音狀態。

Melissa Wedel,JPMorgan.

梅麗莎‧韋德爾，摩根大通。

Good morning. Thanks for taking my questions today. First, I want to clarify the new dividend policy in 2026. When you target sort of 100% payout ratio, I understand that to be sort of on an annual basis, quarterly might be a slight mismatch. Am I understanding that right? And then is that versus GAAP or adjusted NII?

早安.謝謝您今天回答我的問題。首先，我想澄清一下2026年的新股利政策。當你的目標是達到 100% 的派息率時，我理解全年派息和按季度派息可能會略有不匹配。我理解得對嗎？那麼，這是與GAAP還是調整後的淨利息收入相比呢？

Yeah. I think your kind of initial thoughts there is right. There could be some mismatches on a quarterly basis and then focused on GAAP.

是的。我認為你最初的想法是對的。季度層級可能存在一些不匹配，然後重點關注GAAP。

Okay. Got it. And then as the Board was reassessing the dividend policy going forward, it seems like there is a focus on resiliency within a lower rate environment for some period of time. Since we've also seen pressure on asset yields and again, that's also exacerbated by the capital formation we've seen in the industry. I'm curious if the Board also considered any adjustments to the fee structure for FSK.

好的。知道了。然後，隨著董事會重新評估未來的股息政策，似乎在一段時間內，重點是要在低利率環境下保持韌性。由於我們也看到資產收益率面臨壓力，而且，我們在產業中看到的資本形成也加劇了這種情況。我很好奇董事會是否也考慮過對 FSK 的收費結構進行任何調整。

Yeah. No, thanks, Melissa. I think you're correct in the sense of trying to factor all the pieces together here because it is more than just benchmarks rates, it is spreads, it is all of the other sort of factors we've talked about.

是的。不用了，謝謝你，梅麗莎。我認為你的說法是對的，應該把所有因素綜合考慮，因為這不僅僅是基準利率，還有利差，以及我們討論過的所有其他因素。

The couple of points I would make is, one, the idea of the base and supplemental is not a new concept for us, right? We've really been in that land for some time. We were really in kind of the $0.60 base with supplementals on top of that, and then we amended that $0.60 to $0.64 over time. So I think that's not a new concept. And to be fair, I think we're not declaring those dividends formally for Q1 and '26, but we are trying to be pretty transparent with the market for kind of where we see this going.

我想提出的兩點是，第一，基礎和補充的概念對我們來說並不是什麼新概念，對吧？我們在那片土地上已經待了相當長一段時間了。我們最初的基本價格是 0.60 美元，外加一些附加費，然後隨著時間的推移，我們將 0.60 美元調整為 0.64 美元。所以我認為這並不是一個新概念。公平地說，我認為我們不會正式宣布第一季和 2026 年的股息，但我們正在努力對市場保持相當透明的態度，讓市場了解我們對未來發展方向的看法。

I think we -- by definition, kind of have to look at fees consistently or on an annual basis with the Board, I think those dialogues will continue. And I think where we do look at kind of the fee structure today, I think it lines up with the sort of the peers in the space. But yes, that is something we have to have the conversations with the Board on a consistent basis about.

我認為，根據定義，我們必須與董事會定期或每年審查費用問題，我認為這些對話將會繼續下去。我認為，如果我們看一下目前的費用結構，它與該領域的同行基本一致。是的，這確實是我們需要與董事會持續溝通的問題。

Paul Johnson at KBW.

Paul Johnson 在 KBW。

Yeah, thank you. Good morning. Thanks for taking my questions. It look like the JV dividend income might have been a little bit higher this quarter. I was just curious, what is sort of, kind of, the capacity in the JV or the dry powder, so to speak? Is that -- is the JV fully deployed at this point? Or is there sort of additional leverage that could be deployed there?

是啊，謝謝。早安.謝謝您回答我的問題。看來合資企業的股息收入本季可能會略高一些。我只是好奇，合資企業的產能或說可用資金大概是多少？目前合資企業是否已全面部署？或者，是否有其他可以利用的槓桿作用？

Yeah. We do have additional sort of dry powder there to deploy into that. We have talked about the joint venture with kind of maybe an ultimate target of roughly 15%. So we're getting to kind of that neighborhood, but we still do have some capacity there. I think the joint venture has been a good partnership, not just with our sort of partner there, but from a hopefully yield enhancer, if that's the right sort of term for FSK sort of generally. But I think you can expect that to live in, kind of, that 12% to 15% range on a consistent basis.

是的。我們還有一些額外的儲備金可以投入使用。我們已經討論過合資企業，最終目標可能是大約 15%。所以我們正在接近那個目標，但我們仍然有一些能力。我認為合資企業一直是一個很好的合作關係，不僅與我們在那裡的合作夥伴，而且有望提高收益，如果用這個詞來形容 FSK 整體情況合適的話。但我認為，這個數字會持續穩定在 12% 到 15% 的範圍內。

That's helpful. And then one kind of high level question I'd ask is just your comments on tariffs. And you still have a declining, but small sort of watch list related to kind of the tariff issues, where we've seen a lot of BDCs with declining watch list some essentially to 0 at this point, becoming mainly a nonissue. So I'm just curious on your comment there, are you seeing kind of latent tariff issues start to percolate kind of in the economy? Or is this still kind of just kind of a normal sort of belated flow-through of all the significant tariff changes earlier this year?

那很有幫助。然後，我想問的一個比較高層次的問題是關於關稅問題的看法。而且，與關稅問題相關的觀察名單雖然有所減少，但規模較小。我們看到很多 BDC 的觀察名單都在減少，有些公司現在基本上已經降至 0，這主要不再是一個問題了。所以我很好奇你剛才的評論，你是否看到一些潛在的關稅問題開始在經濟中逐漸顯現？或者這仍然只是今年早些時候所有重大關稅調整的正常滯後影響？

Yeah. No, it's a good and fair question. I think we do have a handful of names that are in that kind of single-digit number where we are quite mindful about tariff exposure, right? That's -- I think the fortunate news is that number is low because we've generally avoided what I would call heavy cyclical businesses or consumer retail-related names, which probably have that higher number. So I think we have seen an impact on that small number of names. I think we're working with those names to get through that.

是的。不，這是一個很好的問題。我認為我們確實有一些公司，其稅負僅為個位數，因此我們非常關注關稅風險，對吧？我認為幸運的是，這個數字很低，因為我們通常避免投資那些我稱之為週期性很強的企業或消費性零售相關企業，這些企業的數字可能比較高。所以我認為我們已經看到這對少數幾個名字產生了影響。我認為我們正在利用這些名字來解決這個問題。

The comment I made about the tariff point on the other side is there's -- I think the market has gotten itself to the point of understanding or feeling like they know where the administration is or lives on these sort of tariff points. I am not sure, though, the overall kind of broader economy has felt the full impact yet, right? So I'm not sure that's a company-specific name versus a macro point, but that's kind of on our mind.

關於關稅問題，我之前評論說——我認為市場已經發展到能夠理解或感覺他們知道政府在這些關稅問題上的立場或態度的程度了。不過，我不太確定整體經濟是否已經感受到全部影響，對嗎？所以我不太確定這究竟是公司特有的名稱，還是一個宏觀的觀點，但這確實是我們一直在考慮的問題。

And I would say the same thing for government-related names, I mean, we have to see how this shutdown could impact folks. You still have kind of the DOGE sort of points out there. I put them in a similar bucket where I'm not sure we've fully kind of seen the full impact of that yet kind of play out, but it's something we're pretty mindful about.

對於政府相關名稱，我也想說同樣的話，我的意思是，我們必須看看這次停擺會對人們產生怎樣的影響。你仍然可以獲得類似狗狗幣的積分。我把它們放在類似的類別裡，我不確定我們是否已經完全看到了這方面的全部影響，但這確實是我們非常關注的事情。

Very helpful thanks that's all for me.

非常感謝，這很有幫助，我的情況就是這樣。

Okay, thank you.

好的，謝謝。

Heli Sheth, Raymond James.

Heli Sheth，Raymond James。

Good morning. Thanks for the question. A little bit of a broader market question, but has the recent disruption of the First Brands, Tricolor default started to impact any competitive factors in the asset-backed finance side of the market?

早安.謝謝你的提問。這是一個比較廣泛的市場問題，但最近 First Brands 和 Tricolor 的違約事件是否已經開始影響資產支持融資市場的任何競爭因素？

Yeah. Fair question. I think the short answer is no. But I think the broader answer is I think those handful of deals have brought some kind of highlights to the space. I think they're all very unique and bespoke situations as it relates to the name, and it does seem like there's some real either fraud-related matters or otherwise there, I think both of those companies operate, I think, in either difficult segments or have some history around those. So I think we feel really good about where we sit with regards to our asset-backed business. I think anyone who's done this long enough uses these as moments to kind of relook at your own sort of book, which we've been sort of doing.

是的。問得好。我認為簡而言之，答案是否定的。但我認為更廣泛的答案是，這幾筆交易確實為這個領域帶來了一些亮點。我認為就名稱而言，這些都是非常獨特且特殊的案例，而且似乎確實存在一些與欺詐或其他方面相關的問題。我認為這兩家公司都在困難的行業領域運營，或者與這些領域有一些歷史淵源。所以我覺得我們對自身在資產支持業務方面所處的地位非常滿意。我認為，任何從事這項工作足夠長時間的人都會利用這些時刻來重新審視自己的“人生劇本”，而我們也一直在這樣做。

But I think you haven't seen a big shakeout there. I do think it is a very prominent question on investors' minds, right? Both institutional and wealth which could extend out some time lines or kind of otherwise there, which are pretty fair kind of comments or questions on their side. But I don't think from a regular way new investment perspective.

但我認為你還沒有看到那裡發生大規模的洗牌。我認為這確實是投資者們非常關心的問題，對吧？無論是機構還是財富，都可能延長一些時間線或其他方面，這些都是他們提出的相當合理的評論或問題。但我認為從常規的新投資角度來看，這並不合適。

Got it. Thank you.

知道了。謝謝。

I'm showing no further questions at this time. I would now like to turn it back to Dan Pietrzak for closing remarks.

我目前沒有其他問題要問。現在我謹將發言權交還給丹皮特扎克，請他作總結發言。

Well, I want to thank everyone for your time today. We're always available if there are any other questions. And we look forward to talking with you on our next call. Have a good day.

好的，我要感謝大家今天抽出時間。如有任何其他疑問，歡迎隨時與我們聯繫。我們期待在下次通話中與您交流。祝你有美好的一天。

Thank you for your participation in today's conference. This does conclude the time. You may now disconnect.

感謝您參加今天的會議。時間到此結束。您現在可以斷開連線了。