Investcorp Credit Management BDC Inc (ICMB) 2023 Q4 法說會逐字稿

Welcome to the Investcorp Credit Management BDC, Inc. scheduled earnings release of fourth quarter ended June 30. Your speakers for today's call are Mike Mauer, Suhail Shaikh and Rocco DelGuercio.

歡迎閱讀 Investcorp Credit Management BDC, Inc. 預定的截至 6 月 30 日的第四季度收益報告。今天電話會議的發言人是 Mike Mauer、Suhail Shaikh 和 Rocco DelGuercio。

(Operator Instructions)

（操作員說明）

I would now like to turn the call over to your speakers. Please begin.

我現在想把電話轉給您的發言人。請開始。

Thank you, operator, and thank you for joining us on our fourth quarter call today. I'm joined by Suhail Shaikh, my co-CIO and President of Investcorp Credit Management BDC; and Rocco DelGuercio, our CFO. Before we begin, Rocco will give our customary disclaimer regarding information and forward-looking statements. Rocco?

謝謝您，接線員，也謝謝您今天參加我們的第四季電話會議。我的聯合 CIO 兼 Investcorp Credit Management BDC 總裁 Suhail Shaikh 也加入了我的行列。以及我們的財務長 Rocco DelGuercio。在我們開始之前，Rocco 將按照慣例提供有關資訊和前瞻性陳述的免責聲明。羅科？

Thank you, Mike. I would like to remind everyone that today's call is being recorded, and that this call is the property of Investcorp Credit Management BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by visiting our Investor Relations page on our website at icmbdc.com.

謝謝你，麥克。我想提醒大家，今天的通話正在進行錄音，並且該通話屬於 Investcorp Credit Management BDC 的財產。嚴禁以任何形式未經授權廣播本次通話。造訪我們網站 icmbdc.com 上的投資者關係頁面即可收聽電話會議的音訊重播。

I would also like to take -- I would also like to call your attention to the safe harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain copies of our latest SEC filings, please visit our Investor Relations page on our website.

我還想提請您注意我們新聞稿中有關前瞻性資訊的安全港披露，並提醒大家，今天的電話會議可能包括前瞻性陳述和預測。實際結果可能與這些預測有重大差異。除非法律要求，我們不會更新前瞻性陳述。若要取得我們最新的 SEC 文件副本，請造訪我們網站上的投資者關係頁面。

At this time, I would like to turn the call back over to our Chairman and CEO, Michael Mauer.

現在，我想將電話轉回給我們的董事長兼執行長 Michael Mauer。

Thanks, Rocco. The June quarter marks the last quarter of our fiscal year. New deal activity in the primary markets, especially new LBOs and refinancings remained limited during the quarter. High interest rates have discourage sponsors from doing dividend recaps or acquiring new companies. As a result, our investment activity remained lower this quarter compared to previous periods. However, we expect the slowdown in primary deal activity to pick up the next few quarters, and we continue to see compelling investment opportunities in our pipeline. We made several investments this quarter in the secondary market. These opportunities were primarily borrowers, we are familiar with and have exposure to in our other funds across our platform.

謝謝，羅科。六月季度標誌著我們財年的最後一個季度。本季一級市場的新交易活動，特別是新的槓桿收購和再融資仍然有限。高利率阻礙了發起人進行股息回顧或收購新公司。因此，本季我們的投資活動仍低於前期。然而，我們預計主要交易活動將在未來幾季放緩，並且我們將繼續看到令人信服的投資機會。本季我們在二級市場進行了多項投資。這些機會主要是藉款人，我們熟悉並在我們平台上的其他基金中接觸過。

During the quarter, we invested in 2 new portfolio companies and 2 existing portfolio companies. The weighted average yield of our debt investments during the quarter decreased 12.5% from 13.4% at 3/31. We remain very focused on portfolio management and risk mitigation. We continue to diversify our investments into new borrowers to reduce our average position sizes and to work with borrowers to have covenant or liquidity issues in the current high interest rate environment. This quarter, we increased our number of borrowers and the number of GICS industries across our portfolio to 21 industries when compared to the previous quarter.

本季度，我們投資了 2 家新的投資組合公司和 2 家現有的投資組合公司。本季我們債務投資的加權平均收益率從 3 月 31 日的 13.4% 下降了 12.5%。我們仍然非常關注投資組合管理和風險緩解。我們繼續將投資多元化到新借款人，以減少我們的平均頭寸規模，並與借款人合作解決當前高利率環境下的契約或流動性問題。與上一季相比，本季我們的借款人數和投資組合中的 GICS 產業數量增加至 21 個產業。

As we look at our borrowers' operating performance, the credit quality of our portfolio remains stable. Our weighted average net leverage is relatively unchanged from the quarter ended 3/31 at 3.9x. Additionally, our weighted average loan-to-value ratio for all debt investments is approximately 48%.

當我們檢視借款人的經營績效時，我們投資組合的信貸品質保持穩定。與截至 3 月 31 日的季度相比，我們的加權平均淨槓桿率相對保持不變，為 3.9 倍。此外，我們所有債務投資的加權平均貸款價值比率約為 48%。

Looking forward, we expect to continue our theme of risk management and diversification. We are expecting repayments in both the current quarter and the fourth quarter this year, which we expect to deploy -- redeploy across new borrowers in a smaller average size. While we suspect there is pent-up demand for primary issuance, we remain focused on secondary opportunities as well, where we can create positions with shorter maturities, convexity and established track record of operating as levered borrowers.

展望未來，我們預計將繼續風險管理和多元化的主題。我們預計本季和今年第四季都會償還貸款，我們預計將以較小的平均規模在新借款人中重新部署。雖然我們懷疑初級發行的需求被壓抑，但我們仍然關注次級機會，在這些機會中，我們可以創建期限較短、凸度較低且具有作為槓桿借款人運營記錄的頭寸。

Suhail will now walk through our investment activity during the quarter and after quarter-end. Rocco will go through our financial results. I'll finish with commentary on our nonaccrual investments, our leverage, the dividend and our outlook. As always, we'll end with Q&A.

Suhail 現在將介紹我們在本季和季度末後的投資活動。羅科將檢查我們的財務業績。最後我將對我們的非應計投資、我們的槓桿、股息和我們的前景進行評論。一如既往，我們將以問答結束。

With that, I'll turn it over to Suhail.

這樣，我就把它交給 Suhail。

Thank you, Mike. As Mike mentioned, this quarter's activity was characterized by secondary opportunities. Market estimates had direct lending volume in this quarter down almost 50% year-over-year. However, we're beginning to see primary deal flow pick up after the summer slowdown. We're being highly selective in this credit environment, whether we are evaluating a primary or a secondary transaction. Our primary focus remains investing in high cash operating -- high cash flow generating businesses with enhanced structural protections and supported by experienced sponsors.

謝謝你，麥克。正如麥克所提到的，本季活動的特點是二次機會。市場估計本季直接貸款量年減近 50%。然而，我們開始看到主要交易流量在夏季放緩之後有所回升。在這種信用環境中，無論我們是評估主要交易還是次要交易，我們都非常挑剔。我們的主要重點仍然是投資於高現金營運——高現金流產生的業務，具有增強的結構保護並由經驗豐富的贊助商的支持。

During the quarter, we invested in 2 new portfolio companies and 2 existing portfolio companies, as Mike mentioned. We also fully realized our position in 1 of the companies. During the quarter, fundings for commitments and new investments totaled approximately $15.1 million of cost, with a weighted average yield of approximately 15.5%. In the same period, repayments stood at approximately $8.7 million from 1 investment with an IRR of approximately 9.8%.

正如麥克所提到的，本季我們投資了 2 家新的投資組合公司和 2 家現有的投資組合公司。我們也充分認識到我們在其中一家公司的地位。本季度，承諾資金和新投資成本總計約為 1,510 萬美元，加權平均收益率約為 15.5%。同期，1 項投資的還款金額約為 870 萬美元，內部報酬率約為 9.8%。

To talk you through the new investments. First, we made an investment in the first-lien term loan of AMCP Clean Acquisition Company, also known as PureStar. This is a good example of an opportunistic secondary purchase of a credit that we have been tracking. PureStar is a portfolio company of Cornell Capital. It is one of the largest commercial monitory providers in the hospitality industry in the U.S. We invested in the first-lien term loan and delayed to our term loan. Our yield at cost is approximately 16.5%.

向您介紹新的投資。首先，我們投資了 AMCP Clean Acquisition Company（也稱為 PureStar）的第一個留置權定期貸款。這是我們一直在追蹤的機會主義二次購買信用的一個很好的例子。 PureStar是康乃爾資本的投資組合公司。它是美國酒店業最大的商業監控提供者之一。我們投資了第一留置權定期貸款並延遲了我們的定期貸款。我們的成本收益率約為 16.5%。

Second, we invested in the first-lien term loan of American Auto Auction Group, also known as XLerate. This is an example of an investment that [we own] on another portfolio and we're able to find an attractive opportunity to purchase in the secondary market. Our BrightStar Capital portfolio company accelerate is a full service, used vehicle auction services provider for [future] customers. Our yield at cost is approximately 13.6%.

其次，我們投資了American Auto Auction Group（也稱為XLerate）的第一留置權定期貸款。這是[我們擁有]另一個投資組合的投資範例，我們能夠在二級市場上找到有吸引力的購買機會。我們的 BrightStar Capital 投資組合公司 Accelerate 是一家為[未來]客戶提供全方位服務的二手車拍賣服務供應商。我們的成本收益率約為 13.6%。

Finally, we invested in the priority term loan of Bioplan. Bioplan provides packaging and sampling solutions to the (inaudible) industry. Our yield at cost is approximately 13.6%. During this quarter, we fully realized our position in auto and marketing, which was refinanced. Our fully realized IRR was approximately 9.8%, as I mentioned before. After quarter end, we invested in 1 new portfolio company and 1 existing portfolio company. First, we invested in the first-lien term loan of Axiom Global. Axiom is a leading and global provider of expertise of talent offering, legal counseling and representation services. Axiom was a portfolio company of Permira. We have been an investor in Axiom for a few years in our other portfolios and similar to XLerate, we've been able to purchase it at an attractive price. Our yield at cost is approximately 10.1%. We also made a follow-on secondary investment in PureStar. Our yield at cost is approximately payments original investment of 16.5%.

最後，我們投資了Bioplan的優先定期貸款。 Bioplan 為（聽不清楚）產業提供包裝和取樣解決方案。我們的成本收益率約為 13.6%。在這個季度，我們充分認識到了我們在汽車和行銷領域的地位，並進行了再融資。正如我之前提到的，我們完全實現的 IRR 約為 9.8%。季度末後，我們投資了 1 家新的投資組合公司和 1 家現有的投資組合公司。首先，我們投資了 Axiom Global 的第一個留置權定期貸款。 Axiom 是一家全球領先的人才提供、法律諮詢和代表服務專業知識提供者。 Axiom 是 Permira 的投資組合公司。幾年來，我們一直是 Axiom 的其他投資組合的投資者，與 XLerate 類似，我們能夠以有吸引力的價格購買它。我們的成本收益率約為 10.1%。我們也對PureStar進行了後續的二次投資。我們的成本收益率約為原始投資的 16.5%。

I'd like to note that the GICS standard was updated in May of this year. As such, our industry categorization for existing portfolio companies has changed in some cases, and our industry ratings have also changed. As of June 30, our largest industry concentrations were the following: trade company and distributors at 16%; professional services at 12.8% followed by IT services at 10.7%. Commercial services and supplies at 6.5% and software at 6.2%. Our portfolio companies are in 21 GICS industries, as Mike mentioned, as of quarter-end, including high equity and warrant positions.

我想指出的是，GICS 標準已於今年 5 月進行了更新。因此，我們對現有投資組合公司的行業分類在某些情況下發生了變化，我們的行業評級也發生了變化。截至 6 月 30 日，我們最大的產業集中度如下：貿易公司和經銷商佔 16%；專業服務佔 12.8%，其次是 IT 服務，佔 10.7%。商業服務和用品​​佔 6.5%，軟體佔 6.2%。正如麥克所提到的，截至季末，我們的投資組合公司分佈在 21 個 GICS 產業，包括高股本和認股權證部位。

I'd now like to turn the call back over to Rocco to discuss our financial results.

我現在想將電話轉回羅科，討論我們的財務表現。

Thank you, Suhail. For the year ended June 30, 2023, our net investment income was $9.4 million or $0.66 per share. The fair value of our portfolio was $220.1 million compared to $221.3 million on March 31. Our net assets were $87.7 million, a decrease of 60 basis points from the prior quarter. Our portfolio's net increase from operations this quarter was approximately $2.2 million. Our debt investments made during the quarter had an average yield of 5.5%.

謝謝你，蘇海爾。截至 2023 年 6 月 30 日的年度，我們的淨投資收益為 940 萬美元，即每股 0.66 美元。我們投資組合的公允價值為 2.201 億美元，而 3 月 31 日為 2.213 億美元。我們的淨資產為 8,770 萬美元，比上一季減少 60 個基點。本季我們的投資組合營運淨成長約為 220 萬美元。我們本季進行的債務投資平均收益率為 5.5%。

Our realizations and repayments during the quarter had an average yield of 11.3%, and our average IRR was 9.8%. The weighted average yield on our debt portfolio was 12.5%, a decrease of 90 basis points from March 31. As of June 30, our portfolio consisted of 36 portfolio companies. 89.2% of our investments were first lien, the remaining 10.8% in invested -- is invested in equity, warrants and other positions. 88.8% of our debt portfolio was invested in floating rate instruments and 0.4% in fixed rate investments. The average for on our debt investments was 1.1%. Our average portfolio investment was approximately $6.1 million, and our largest portfolio company investment is Bioplan at $13 million. We had a gross leverage of 1.54x and a net leverage of 1.44x as of June 30 compared to 1.65x gross and 1.49x net, respectively, for the previous quarter.

本季我們的變現和還款平均收益率為 11.3%，平均 IRR 為 9.8%。我們的債務組合加權平均收益率為12.5%，較3月31日下降90個基點。截至6月30日，我們的投資組合由36家投資組合公司組成。我們 89.2% 的投資是第一留置權，其餘 10.8% 是投資——投資於股權、認股權證和其他部位。我們的債務投資組合 88.8% 投資於浮動利率工具，0.4% 投資於固定利率投資。我們債務投資的平均利率為 1.1%。我們的平均投資組合投資約為 610 萬美元，我們最大的投資組合公司投資是 Bioplan，投資額為 1,300 萬美元。截至 6 月 30 日，我們的總槓桿率為 1.54 倍，淨槓桿率為 1.44 倍，而上一季的總槓桿率為 1.65 倍，淨槓桿率為 1.49 倍。

As of June 30, we had 6 investments on nonaccrual, which included the 3 investments in 1888, the PGi revolver and 2 investments in American Nuts. This is an increase of 2 investments related to American Nuts from the previous quarter. With respect to our liquidity, as of June 30, we had approximately $9.2 million in cash, of which $8.1 million was restricted cash with $28.1 million of capacity under our revolving credit facility with Capital One. Additional information regarding the composition of our portfolio is included in our Form 10 filing, which will be filed later this week.

截至 6 月 30 日，我們有 6 項非應計投資，其中包括 1888 年 PGi 左輪手槍的 3 項投資和 American Nuts 的 2 項投資。與上一季相比，與美國堅果相關的投資增加了 2 項。關於我們的流動性，截至 6 月 30 日，我們擁有約 920 萬美元現金，其中 810 萬美元是受限現金，根據第一資本的循環信貸安排，其容量為 2810 萬美元。有關我們投資組合構成的更多資訊包含在我們將於本週稍後提交的 10 號表格文件中。

With that, I'd like to turn the call over back to Mike.

這樣，我想將電話轉回給麥克。

Thank you, Rocco. As mentioned earlier, we remain focused on portfolio management and risk mitigation, especially in our borrowers that are experiencing periods of stress. We added 2 new positions on nonaccrual, American Nuts Term Loan A and Term Loan B positions. American Nuts sources procures and distributes nuts, seeds and dried fruits among other products. Their results have been challenged in the recent period. We are currently working with the sponsor and other co-lenders on the path forward. We continue to make progress rotating the portfolio and expected progress on the remaining nonaccruals over the next 12 months.

謝謝你，羅科。如前所述，我們仍然專注於投資組合管理和風險緩解，特別是對於正在經歷壓力時期的借款人。我們在非應計利息、美國堅果定期貸款 A 和定期貸款 B 頭寸上添加了 2 個新頭寸。美國堅果採購和分銷堅果、種子和乾果等產品。他們的結果在最近一段時間受到了挑戰。我們目前正在與贊助商和其他共同貸款人合作，推動未來的發展。我們將繼續在投資組合輪調方面取得進展，並預計未來 12 個月內剩餘非應計費用將取得進展。

Our NAV remained relatively unchanged, declining by 60 basis points. Our gross leverage was 1.54x, above our guidance of 1.25x to 1.5x. Our net leverage at 1.44x was within the target range. As mentioned last quarter, we expect to see our growth in net leverage converge. As of September 15, our gross and net leverage were 1.51x and 1.50x. As we have previously stated, the adviser will waive the portion of our management fee associated with base management fees over 1 turn of leverage.

我們的淨值保持相對不變，下降了 60 個基點。我們的總槓桿率為 1.54 倍，高於我們 1.25 倍至 1.5 倍的指引。我們的淨槓桿率為 1.44 倍，處於目標範圍內。如上季所提到的，我們預期淨槓桿率的成長將趨於一致。截至 9 月 15 日，我們的總槓桿率和淨槓桿率分別為 1.51 倍和 1.50 倍。正如我們之前所說，顧問將免除與超過 1 倍槓桿的基本管理費相關的管理費部分。

We covered our June quarterly dividend with NII. The company is expected to earn its dividend through the next quarter ending September 30. On September 14, 2023, the Board of Directors declared a distribution for the quarter ended June 30, 2023, of $0.12 per share as well as a supplemental distribution of $0.03 per share, both payable on November 2, 2023, to shareholders of record as of October 12, 2023. It is worth noting that the $0.03 supplemental distribution is related to fiscal year 2023 spill back.

我們用 NII 支付了 6 月份的季度股息。該公司預計將在截至 9 月 30 日的下一季賺取股息。2023 年 9 月 14 日，董事會宣布截至 2023 年 6 月 30 日的季度分配每股 0.12 美元，並補充分配 0.03 美元每股，均於2023 年11 月2 日支付給截至2023 年10 月12 日登記在冊的股東。值得注意的是，0.03 美元的補充分配與2023 財年的溢出相關。

As previously mentioned, we doubled our platform AUM through the acquisition of an SMA and an initial close on our institutional fund, which resulted in the expansion of our investable assets and reduced the average expenses across the fund. Our expanded team has already proved to be meaningful in terms of sourcing and originating and as a result, we expect our pipeline to remain healthy for the remainder of the year.

如前所述，透過收購 SMA 和首次關閉我們的機構基金，我們的平台 AUM 翻了一番，從而擴大了我們的可投資資產並降低了整個基金的平均成本。事實證明，我們擴大的團隊在採購和起源方面具有重要意義，因此，我們預計我們的管道在今年剩餘時間內保持健康。

As always, we remain increasingly focused on capital preservation and maintaining a stable dividend. We are continuing our work on rotating and diversifying the portfolio, all while focusing on mitigating risk in our borrowers experiencing short-term stress. As we head into the back half of the year, we remain optimistic about our pipeline and our ability to deploy our capital in high-quality investments.

一如既往，我們仍然越來越注重資本保全和維持穩定的股利。我們正在繼續致力於投資組合的輪換和多元化，同時專注於減輕借款人面臨短期壓力的風險。進入今年下半年，我們對我們的管道以及將資本部署到高品質投資的能力保持樂觀。

This concludes our prepared remarks. Operator, please open the line for Q&A.

我們準備好的演講到此結束。接線員，請開通問答線。

(Operator Instructions)

（操作員說明）

Our first question comes from Paul Johnson with KBW.

我們的第一個問題來自 KBW 的 Paul Johnson。

Just clarifying your comments on repayments for next quarter or this -- second half of this year, I guess, the -- you said you expect repayments. Do you expect -- is this net repayments that you're talking about above what you're expecting to redeploy? Or is this just repayments that you have kind of line of sight on for the rest of the year, not necessarily net repayments?

只是澄清您對下個季度或本季（我想是今年下半年）還款的評論，您說您預計會還款。您是否期望—您所說的淨還款額是否高於您期望重新部署的金額？或者這只是您今年剩餘時間的還款額，不一定是淨還款額？

No, not net repayments, Paul. Thank you for taking the time today. These are payments that we have line of sight on today that there will be some coming in, but we will be redeploying.

不，不是淨還款，保羅。感謝您今天抽出時間。我們今天預計會有一些付款進入，但我們將重新部署。

Got you. Okay. And then my second question or possibly a follow-up to that, a little bit broader, but just kind of taking a step back and looking at the quarter, I think, in the context of the space, obviously, this has been a pretty good year for BDC so far kind of despite what we expected earlier in the year. And a lot of BDCs pretty much -- almost every BDC in the sector has benefited quite a bit from the rate hike cycle. .

明白你了。好的。然後是我的第二個問題，或者可能是後續問題，範圍更廣一些，但只是退後一步，看看這個季度，我認為，在這個領域的背景下，顯然，這是一個相當不錯的問題。儘管我們在今年早些時候有所預期，但到目前為止，BDC 的表現還是不錯的。許多 BDC 幾乎——幾乎該行業的每個 BDC 都從升息週期中受益匪淺。 。

I'm just kind of curious your thoughts on the portfolio this year, in particular. And why, I guess, that hasn't really worked to your benefit quite as much as the rest of the space? And then I guess in addition to that, what are some of the things that you think you could do with the adviser to hopefully help improve performance that you mentioned [Singer 2] in terms of raising new funds and potentially lowering costs, but anything to that end would be helpful?

我只是很好奇你對今年投資組合的想法，特別是。我想，為什麼這並沒有像其他領域那樣真正為您帶來好處呢？然後我想除此之外，您認為您可以與顧問一起做哪些事情，以希望幫助提高您提到的 [Singer 2] 在籌集新資金和潛在降低成本方面的績效，但任何事情都可以那結束會有幫助嗎？

Yes, Paul. I know it's on your mind, is on our minds every day. How do we continue to advance the platform. And I think that's -- and you hit on it there, that we need to have a broader platform so we can originate more. We're making headway with that. We've done a first close, as you -- we talked about on the last call, of a fund, that fund is bringing in additional money throughout this year. The second thing is we did bring in an SMA. We're in discussions on another. We are targeting an additional fund first close the first quarter of next year.

是的，保羅。我知道它在你的腦海裡，也在我們的腦海裡。我們如何繼續推進該平台。我認為，我們需要有一個更廣泛的平台，這樣我們才能創造更多。我們正在這方面取得進展。我們已經完成了第一次結算，正如您在上次電話會議中談到的那樣，該基金在今年全年都帶來了額外的資金。第二件事是我們確實引進了 SMA。我們正在討論另一個。我們的目標是在明年第一季首先完成額外的基金。

All of that not only spreads cost and you touched on bringing down costs, but I think equally important, it generates more origination and better terms on origination as we have a bigger platform. We really just started getting traction on that earlier this year, and I expect that to continue to pick up. But those are the areas that we are really focused on because I think you've seen a lot of big platforms that have some small funds and they are the beneficiary of it.

所有這些不僅分散了成本，而且您還談到了降低成本，但我認為同樣重要的是，隨著我們擁有更大的平台，它會產生更多的起源和更好的起源條款。今年早些時候我們才剛開始關注這一點，我預計這種情況會繼續升溫。但這些是我們真正關注的領域，因為我認為你已經看到很多擁有一些小資金的大平台，他們是它的受益者。

And I appreciate that. I mean, I guess -- I mean, at this point, the adviser Investcorp, I think they came in roughly 4 years ago. I mean, do you see it as a case in this point where the equity base has essentially shrunk to a point where scale is just not quite possible with the size of the BDC being about roughly $90 million equity-based BDC, one of the smaller -- smallest market cap BDC space -- BDCs in our coverage at least. I mean do you see that as a, I guess, inhibitor to pulling these levers? Or I mean, what do you expect, I guess, out of this, the growth that you're kind of calling for in the next few years?

我很欣賞這一點。我的意思是，我想——我的意思是，在這一點上，顧問 Investcorp，我認為他們大約 4 年前就進來了。我的意思是，您是否認為在這種情況下，股權基礎已基本上縮小到規模不太可能的程度，而BDC 的規模約為9000 萬美元，以股權為基礎的BDC 是規模較小的BDC之一-- 市值最小的 BDC 空間 -- 至少是我們覆蓋範圍內的 BDC。我的意思是，我想您是否認為這是拉動這些槓桿的抑制劑？或者我的意思是，我想，您對未來幾年所要求的成長有何期望？

I don't think the BDC is an inhibitor. I think that there was a lot of time spent over the first few years, looking at strategic ways to grow it, and those did not happen for a lot of different reasons. I can't go into, but mostly our choice not to execute around a lot of that. And we've been focused over the last 12 months on organic growth. And so the size of the external publicly traded BDC has not been the inhibitor. But going forward, hopefully, it will be one of the beneficiaries.

我不認為 BDC 是抑制劑。我認為在最初的幾年裡，我們花了很多時間尋找發展它的策略方法，但由於許多不同的原因，這些都沒有發生。我無法詳細說明，但主要是我們選擇不執行很多內容。過去 12 個月我們一直專注於有機成長。因此，外部公開交易的 BDC 的規模並未成為阻礙因素。但展望未來，它有望成為受益者之一。

Our next question comes from Robert Dodd with Raymond James.

我們的下一個問題來自羅伯特·多德和雷蒙德·詹姆斯。

First, a housekeeping one, if I can. I mean there was a fairly sizable dividend in the fourth quarter. I mean, was that related to a onetime event? Or is that a new position in, say, preferred equity or something like, i.e., is it going to continue? Or is that a one-off source of income...

首先，如果可以的話，做一個家事服務。我的意思是第四季有相當可觀的股利。我的意思是，這與一次性事件有關嗎？或者這是一個新的頭寸，例如優先股或類似的頭寸，也就是說，它會繼續下去嗎？或者這是一次性的收入來源...

That $0.05 that you're, I think, referring to was a onetime event. So we've got the base going forward a $0.12, and we'll have a supplemental to the extent that it makes sense, and we will -- as we have in the past, we give visibility for the next quarter, and we said we expect to cover the dividend for the next quarter.

我認為你提到的 0.05 美元是一次性事件。因此，我們的基礎是 0.12 美元，我們將在有意義的範圍內進行補充，我們將像過去一樣，提供下一季的可見性，我們說我們預計將支付下個季度的股息。

I appreciate that. I meant the income to the BDC. There was a $690,000 dividend in total investment income for the BDC this quarter. Is that a sustainable number?

我很感激。我指的是 BDC 的收入。本季 BDC 的總投資收入中有 69 萬美元的股息。這是一個可持續的數字嗎？

Rob, are you talking on the income statement, correct?

羅布，你說的是損益表，對嗎？

Yes. Yes, yes. Correct.

是的。是的是的。正確的。

Yes. Mike, He's talking about the (inaudible) of dividend that we got. I think some of the equity position paid a dividend. I don't think they're -- I think they're one-offs.

是的。麥克，他正在談論我們獲得的（聽不清楚）股息。我認為一些股權頭寸支付了股息。我不認為它們是——我認為它們是一次性的。

Yes, those are one-offs, the dividends coming in. I would not think about those as recurring dividends. We do think that we'll get them episodically, but not on a quarterly basis.

是的，這些都是一次性的，股息即將到來。我不認為這些是經常性股息。我們確實認為我們會間歇性地獲得它們，但不是每季一次。

Got it. Got it. I appreciate that color. Then if I can -- I thought you -- obviously, you amended the credit facility, and we spoke about that in last quarter. That amendment does not -- and I apologize for the background noise, hasn't changed the revolving period. So can you give us any color on what you're doing to extend that, obviously, if the revolving period expires August next year. That's part of it. Also, and I do note that in the credit facility amendment, you've now added an advanced rate bucket for broadly syndicated loans. Is it a plan to do more of that within the BDC in terms of more secondary purchases on BSLs? Or is that just...

知道了。知道了。我很欣賞那種顏色。然後，如果我可以的話——我想你——顯然，你修改了信貸安排，我們在上個季度談到了這一點。該修正案並沒有改變循環週期，我對背景噪音表示歉意。那麼，如果循環期在明年八月到期，您能否告訴我們您正在採取哪些措施來延長這一期限？這是其中的一部分。另外，我確實注意到，在信貸便利修正案中，你們現在為廣泛的銀團貸款添加了高級利率桶。是否計劃在 BDC 內進行更多此類工作，以進行更多 BSL 二次購買？或者說這只是...

Robert, this is Suhail. So I'll let Rocco pick up on the credit facility. The short answer is we didn't have an expiration coming due. I think we've amended the credit facility to allow for some financial flexibility in it. With respect to secondary positions, I think we are -- the big picture response is, we're being very selective in this marketplace from a deal flow perspective.

羅伯特，這是蘇海爾。所以我會讓羅科接受信貸安排。簡短的回答是我們沒有到期。我認為我們已經修改了信貸安排，以實現一定的財務靈活性。就次要職位而言，我認為我們的整體反應是，從交易流的角度來看，我們在這個市場上非常有選擇性。

As you know, deal flow -- primary deal flow for buyouts is down almost 50% year-on-year. So what we see is, frankly, a lot of that stuff we are passing on. So we're looking at secondary investments where either we know the credit or we can leverage the broader Investcorp platform, our private equity or our liquid credit business to source ideas from. So that's really the theory behind doing some of those investments. And because they are somewhat more liquid than your traditional middle market loans, we can move in and out of those when we have to make room for more primary deals as they come through. So hopefully, that answers your question.

如您所知，交易流量—收購的主要交易流量年減了近 50%。坦白說，我們看到的是我們正在傳遞的很多東西。因此，我們正在尋找二級投資，要么我們知道信用，要么我們可以利用更廣泛的 Investcorp 平台、我們的私募股權或我們的流動信貸業務來獲取想法。這確實是進行其中一些投資背後的理論。而且由於它們比傳統的中間市場貸款更具流動性，因此當我們必須為更多主要交易騰出空間時，我們可以進出這些貸款。希望這能回答你的問題。

Yes, yes. That answers that question. And then just on -- there's no maturity on the revolving credit facility, but the revolving period now has less than 12 months depends on the...

是的是的。這回答了這個問題。然後，循環信貸安排沒有到期日，但循環期限現在少於 12 個月，具體取決於…

The term out goes further, the revolver ends.

期限更進一步，左輪手槍結束。

The revolver -- the Capital One facility ends in 2026.

左輪手槍－第一資本設施將於 2026 年結束。

Right. But the revolving -- the reinvestment period ends in 2024.

正確的。但循環再投資期將於 2024 年結束。

And we'll go back and review all that, but we've been working with Capital One ongoing and all those relationships are very healthy. I'll double check that, Robert, and we'll come back...

我們會回去回顧所有這些，但我們一直在與第一資本合作，所有這些關係都非常健康。我會仔細檢查一下，羅伯特，我們會回來的...

Yes, no worries. I appreciate it.

是的，不用擔心。我很感激。

Our next question comes from Paul Johnson again with KBW.

我們的下一個問題再次來自 KBW 的 Paul Johnson。

Sorry, one more follow-up. During the remarks, you guys said that you expect to cover the distribution, I believe, next quarter. I just want to make sure -- I'm clear -- so are you talking about the full $0.15 distribution? Or are we talking about just simply the base distribution of $0.12?

抱歉，還有一個後續。在發言中，你們說你們預計會在下個季度完成分配。我只是想確定一下——我很清楚——所以你說的是 0.15 美元的全額分配嗎？或者我們只是簡單地談論 0.12 美元的基本分配？

No, Paul, this is Suhail. It's the base distribution of $0.12. And to the extent there is any spillover or supplemental, that's going to be on top of that.

不，保羅，這是蘇海爾。這是 0.12 美元的基本分配。如果有任何溢出或補充，那將是最重要的。

I see no other questions in the queue. Go ahead.

我在隊列中沒有看到其他問題。前進。

Thank you. If there's no other questions, we'll talk to everyone next quarter. This was a long gap because of the year-end, but we'll be talking to everyone after the September quarter. Thank you very much.

謝謝。如果沒有其他問題，我們將在下個季度與大家討論。由於年底，這是一個很長的差距，但我們將在九月季度之後與所有人討論。非常感謝。

Thank you.

謝謝。

Thank you, everyone. And this concludes today's conference call. Thank you for attending.

謝謝大家。今天的電話會議到此結束。感謝您的出席。