Investcorp Credit Management BDC Inc (ICMB) 2024 Q3 法說會逐字稿

Good afternoon and thank you for joining today's Investcorp Credit Management BDC third-quarter fiscal year 2024 earnings. It is now my pleasure to turn the floor over to Peter Sattelmair, CFO.

下午好，感謝您觀看今天的 Investcorp Credit Management BDC 2024 財年第三季財報。現在我很高興將發言權交給財務長 Peter Sattelmair。

Thank you, operator, 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.

謝謝接線員，我想提醒大家，今天的通話正在錄音，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 call your attention to the safe harbor disclosure in our press release regarding forward-looking information. I'll remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections.

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。我要提醒大家，今天的電話會議可能包含前瞻性陳述和預測。實際結果可能與這些預測有重大差異。

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. At this time, I would like to turn the call over to the CEO of Investcorp Credit Management BDC, Suhail Shaikh.

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。現在，我想將電話轉給 Investcorp Credit Management BDC 執行長 Suhail Shaikh。

Thanks, Peter, and thank you to everyone for joining us on our third-quarter fiscal year 2024 earnings call. I'm joined by Michael Mauer, Chairman of Investcorp Credit Management BDC; and Peter Sattelmair, our CFO.

謝謝 Peter，也謝謝大家參加我們的 2024 財年第三季財報電話會議。Investcorp Credit Management BDC 主席 Michael Mauer 也出席了會議。以及我們的財務長 Peter Sattelmair。

Before we begin our earnings call, I would like to provide a short update on leadership at the company. As of yesterday, I have been appointed as Chief Executive Officer by ICMB, effective immediately. I will now serve as the sole Chief Investment Officer of the advisor.

在我們開始財報電話會議之前，我想先簡單介紹一下公司領導階層的最新情況。截至昨天，我已被 ICMB 任命為首席執行官，立即生效。我現在將擔任該顧問的唯一首席投資長。

It is an honor to be named CEO at this time, where the current lending environment favors alternative lenders such as business development companies. And we are positioned well to execute our business strategy in the current market. Mike will continue to remain as Chairman of the Board of Directors and has been appointed our Vice Chairman of Private Credit at Investcorp. I look forward to our continued partnership to grow our private credit platform. I will now turn over the call to Mike.

我很榮幸此時被任命為首席執行官，因為當前的貸款環境有利於業務開發公司等替代貸款機構。我們處於有利位置，可以在當前市場上執行我們的業務策略。Mike 將繼續擔任董事會主席，並被任命為 Investcorp 私人信貸副董事長。我期待我們繼續合作，發展我們的私人信貸平台。我現在將把電話轉給麥克。

Thanks, Suhail. And thank you to everyone for joining us on our third quarter fiscal year 2024 earnings call. It's been a pleasure to serve as CEO of ICMB. I'm proud of the lending platform we've built over the years and look forward to supporting Suhail, the Board and the investment team as they seek to grow Investcorp's private credit platform.

謝謝，蘇海爾。感謝大家參加我們的 2024 財年第三季財報電話會議。我很高興擔任 ICMB 的執行長。我為我們多年來建立的貸款平台感到自豪，並期待支持 Suhail、董事會和投資團隊尋求發展 Investcorp 的私人信貸平台。

On today's call, I will provide an update regarding our performance in the quarter, the market commentary on our nonaccrual investments, our leverage, the dividend and our outlook. Suhail will walk through our investment activity during the March quarter and after quarter end. Peter will then go through our financial results. And as always, we'll end with Q&A.

在今天的電話會議上，我將提供有關我們本季業績的最新資訊、對我們的非應計投資、我們的槓桿、股息和我們的前景的市場評論。Suhail 將介紹我們在三月季度和季度末後的投資活動。然後彼得將查看我們的財務業績。像往常一樣，我們將以問答結束。

During the quarter ended March 31, our net investment income was $2.1 million or $0.14 per share. This was an increase of approximately 32% from the previous quarter's net investment income. Additionally, net asset value per share increased approximately 0.2% to $5.49 per share from $5.48 per share at the end of the prior quarter. The increase in NAV was driven by an increase in capital gains.

截至 3 月 31 日的季度，我們的淨投資收益為 210 萬美元，即每股 0.14 美元。這比上一季的淨投資收入成長了約 32%。此外，每股資產淨值從上季末的每股 5.48 美元增加約 0.2% 至每股 5.49 美元。資產淨值的成長是由資本利得的成長所推動的。

As mentioned last quarter, we continue to remain highly focused on portfolio management and risk mitigation, especially for our borrowers that are experiencing periods of stress. We did not add any new positions to nonaccrual this quarter. And our position on nonaccrual declined to 3.9% as a percentage of the total fair value of the portfolio compared to 4.6% as of the previous quarter. We continue to make progress rotating the portfolio and expect progress on the remaining nonaccruals over the next 12 months.

如上季所提到的，我們繼續高度關注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。本季我們沒有在非應計利息中增加任何新部位。我們的非應計利息佔投資組合總公允價值的百分比從上一季的 4.6% 下降至 3.9%。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。

We partially realized our position in 1888 as the company was sold during the quarter. The majority of the consideration was received in cash at closing. The remainder is deferred noncontingent payments spread over the next 24 months.

我們在 1888 年部分實現了我們的地位，因為公司在該季度被出售。交易完成時，大部分對價以現金形式收到。其餘部分是未來 24 個月的遞延非或有付款。

Other than a discount on the receivables due to the delayed payment, there has not been any material adjustment to the prior carrying value. We covered our March quarterly dividend, not including the supplemental dividend with net investment income. We expect the company to earn its dividend through the next quarter end, June 30.

除因延遲付款而導致應收款項折價外，原帳面價值並無任何重大調整。我們支付了三月的季度股息，不包括淨投資收益的補充股息。我們預計該公司將在下個季度末（即 6 月 30 日）之前賺取股息。

We are pleased to announce that on April 12, 2024, the Board of Directors declared a distribution for the quarter ended June 30, 2024, of $0.12 per share as well as a supplemental distribution of $0.03 per share, both payable on June 14, 2024 to stockholders of record as of May 26, 2024. Our gross leverage this quarter was 1.52. Our net leverage was 1.36. Gross leverage was slightly above the range -- target range and net leverage was squarely in the target range of 1.25 to 1.5.

我們很高興地宣布，2024 年4 月12 日，董事會宣布對截至2024 年6 月30 日的季度進行每股0.12 美元的分配，以及每股0.03 美元的補充分配，均於2024 年6 月14 日支付截至 2024 年 5 月 26 日在冊股東。本季我們的總槓桿率為 1.52。我們的淨槓桿率為 1.36。總槓桿率略高於目標範圍，淨槓桿比率正好位於 1.25 至 1.5 的目標範圍內。

I'll now briefly discuss market trends. We saw transaction volumes decline since the previous quarter. However, in this environment, our investment diligence has not wavered. And we continue to be focused primarily on lending to companies that have reasonable leverage and are supported by strong middle market sponsors.

我現在將簡要討論市場趨勢。自上一季以來，我們看到交易量有所下降。但在這樣的環境下，我們的投資勤奮並沒有動搖。我們繼續主要專注於向擁有合理槓桿並由強大中間市場贊助商支持的公司提供貸款。

We also continue to take advantage of attractive opportunities in the secondary. As we look at borrowers’ operating performance, the credit quality of our portfolio continues to remain solid. Our weighted average loan-to-value ratio for our performing debt investments is approximately 52%, an increase from 50% last quarter.

我們也繼續利用中學中有吸引力的機會。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持續保持穩定。我們的履約債投資的加權平均貸款成數約為 52%，高於上季的 50%。

We continue rotating and diversifying the portfolio. Our portfolio diversification has improved since the prior year. During the quarter, we had investments in 40 borrowers across 22 industries, which is up compared to 34 borrowers and 20 industries in the prior year's March quarter. Suhail will now walk through our investment activity during the March quarter and after quarter end. With that, I'll turn it back over to Suhail.

我們繼續進行投資組合的輪調和多元化。自去年以來，我們的投資組合多元化有所改善。本季度，我們對 22 個行業的 40 個借款人進行了投資，而去年 3 月季度的投資數量為 34 個借款人，涉及 20 個行業。Suhail 現在將介紹我們在三月季度和季度末後的投資活動。這樣，我會將其轉回給 Suhail。

Thank you, Mike. Our investment activity in new portfolio companies this quarter declined compared to the previous quarter as we saw broader market activity slowdown. Sponsored middle-market direct lending new money volume in the quarter ending March 31 was down almost 10% from the quarter ended December 31. This quarter portfolio activity was largely driven by investments in existing portfolio companies through M&A, add-ons, and dividend recaps in high performing credits where we maintain relationship with the sponsors.

謝謝你，麥克。由於我們看到更廣泛的市場活動放緩，本季度我們對新投資組合公司的投資活動與上一季相比有所下降。截至 3 月 31 日的季度，贊助中間市場直接貸款新增資金量較截至 12 月 31 日的季度下降了近 10%。本季度的投資組合活動主要是透過併購、附加業務以及我們與贊助商保持關係的高績效信貸的股息回顧對現有投資組合公司的投資所推動的。

We have continuing to execute our portfolio rotation strategy that we have mentioned over the past year. And this timeframe, we rotated about a third of our portfolio. The weighted average EBITDA of the portfolio went from $42.6 million as of March 31, 2023, to $63.5 million this quarter.

我們將繼續執行我們在過去一年中提到的投資組合輪換策略。在這個時間範圍內，我們輪換了大約三分之一的投資組合。該投資組合的加權平均 EBITDA 從截至 2023 年 3 月 31 日的 4,260 萬美元增至本季的 6,350 萬美元。

Over the same period, the weighted average net leverage in the portfolio increased from 3.8 times to 4.6 times as we continue shifting towards larger, more stable credits. As part of this ongoing rotation, we aim to invest generally in larger credits that are backed by sponsors we know. We are also diligently managing our watch list names, including ArborWorks, American Nuts, and Klein Hersh.

同期，隨著我們繼續轉向規模更大、更穩定的信貸，投資組合的加權平均淨槓桿率從 3.8 倍增加到 4.6 倍。作為持續輪調的一部分，我們的目標是普遍投資於由我們認識的贊助商所支持的較大額度。我們也努力管理我們的觀察名單名稱，包括 ArborWorks、American Nuts 和 Klein Hersh。

During the quarter ended March 31, we invested in four existing portfolio companies. Fundings for new investments totaled approximately $8.9 million at cost with a weighted average yield of approximately 12.49%. In the same period, we fully realized six portfolio company investments totaling $21.2 million in proceeds with an IRR of approximately 17.09%.

在截至 3 月 31 日的季度中，我們投資了四家現有的投資組合公司。新投資的資金總額以成本計算約為 890 萬美元，加權平均收益率約為 12.49%。同一時期，我們完全變現了六家投資組合公司的投資，收益總計 2,120 萬美元，內部報酬率約 17.09%。

First, we participated in the amend-to-extend of PureStar, which can be found on our SOI as AMCP Clean Acquisition Company. PureStar is the largest pure play commercial laundry provided to the hospitality industry in the US. PureStar is an example of proprietarily sourced from the sponsor. Our yield at cost is approximately 11.2%.

首先，我們參與了 PureStar 的修訂和擴展，您可以在我們的 SOI 上找到該公司，名稱為 AMCP Clean Acquisition Company。PureStar 是美國為飯店業提供的最大的純商業洗衣店。PureStar 是從贊助商專有採購的一個例子。我們的成本收益率約為 11.2%。

We made another investment in the first lien term loan of Victra, also known as LSF9 Atlantis Holdings, LLC. As mentioned last quarter, our team has had long-standing history with this name. Victra is the largest exclusive independent retailer for Verizon Wireless.

我們對 Victra（也稱為 LSF9 Atlantis Holdings, LLC）的第一筆留置權定期貸款進行了另一筆投資。正如上季所提到的，我們的團隊使用這個名字有著悠久的歷史。Victra 是 Verizon Wireless 最大的獨家獨立零售商。

We purchased Victra in the secondary market at an attractive price. Our yield at cost is approximately 11.9%. We also upsized our investment in an existing portfolio company, Amerit Fleet Solutions. Amerit is one of the largest independent providers of commercial fleet maintenance.

我們在二級市場以有吸引力的價格購買了Victra。我們的成本收益率約為 11.9%。我們也加大了對現有投資組合公司 Amerit Fleet Solutions 的投資。Amerit 是最大的商業車隊維修獨立提供者之一。

We supported the sponsor in rightsizing the capital structure. Our yield at cost is approximately 15.5%. Lastly, we invested in the first lien term loan of XLerate, also known as America's Auto Auction. XLerate is the nation's second largest independent full service used car auction provider.

我們支持發起人調整資本結構。我們的成本收益率約為 15.5%。最後，我們投資了XLerate（也稱為美國汽車拍賣）的第一筆留置權定期貸款。XLerate 是美國第二大獨立全方位服務二手車拍賣商。

We purchased XLerate in the secondary market at an attractive price. Our yield at cost is approximately 11%. Our team has had a long-standing relationship with this team across the platform.

我們在二級市場以有吸引力的價格購買了 XLerate。我們的成本收益率約為 11%。我們的團隊在整個平台上與這個團隊有著長期的合作關係。

Additionally, we had six portfolio company realizations during the quarter. First, we fully realized our position in the first lien term loan in Evergreen North America Acquisitions, LLC. Our realized IRR was approximately 13.8%.

此外，本季我們還有六家投資組合公司實現了變現。首先，我們在 Evergreen North America Acquisitions, LLC 的第一筆留置權定期貸款中充分實現了我們的立場。我們的已實現 IRR 約為 13.8%。

As Mike mentioned, 1888 was sold during the quarter, and we partially realized a full position, which includes the term loan A, the term loan C, the revolver, and our equity position. The majority of our position was received in cash and the remainder as deferred noncontingent payments that we expect to receive over the next 24 months.

正如麥克所提到的，1888 在本季度被出售，我們部分實現了完整頭寸​​，其中包括定期貸款 A、定期貸款 C、左輪手槍和我們的股權頭寸。我們的大部分部位以現金形式收到，其餘部分以遞延非或有付款形式收到，我們預計將在未來 24 個月內收到。

We also sold our position in the first lien term loan of Victra to take advantage of an attractive trade opportunity in the secondary market. Our realized IRR for Victra was approximately 14.8%. Our position in the first lien term loan of AHF was also sold during the quarter in a secondary trade. For this trade, our exit IRR was 10.8%.

我們還出售了 Victra 的第一留置權定期貸款頭寸，以利用二級市場上有吸引力的貿易機會。我們 Victra 的已實現 IRR 約為 14.8%。我們在 AHF 第一留置權定期貸款中的部位也在本季的二級交易中出售。對於本次交易，我們的退出 IRR 為 10.8%。

Our position in PureStar was refinanced during the quarter as part of the amend-to-extend transaction. As mentioned earlier, we participated in the new transaction. Our realized IRR for the whole transaction of PureStar was approximately 28.2%.

作為修改延期交易的一部分，我們在 PureStar 的部位在本季進行了再融資。如前所述，我們參與了新交易。我們對 PureStar 整個交易的已實現 IRR 約為 28.2%。

Lastly, our position in the first lien term loan of Amerequip was refinanced. We did not participate in the refinancing as the loan was refinanced at a significantly lower rate. We continue to maintain discipline around our investment strategy as evidenced by this rate. Our realized IRR was approximately 13.3%.

最後，我們在 Amerequip 的第一筆留置權定期貸款中的頭寸進行了再融資。我們沒有參與再融資，因為貸款的再融資利率明顯較低。正如這一比率所證明的那樣，我們繼續保持投資策略的紀律。我們實現的 IRR 約為 13.3%。

After the quarter end, we invested in one new portfolio company and two existing portfolio companies. We also realized a position in one portfolio company. After the quarter end, we invested in the first lien term loan of Crisis Prevention Institute, or CPI, to support the refinancing of the company's capital structure. CPI provides deescalation training and consulting for human care professionals.

季度末後，我們投資了一家新的投資組合公司和兩家現有的投資組合公司。我們也在一家投資組合公司中獲得了職位。季度末後，我們投資了危機預防研究所（CPI）的第一筆留置權定期貸款，以支持公司資本結構的再融資。CPI 為人體護理專業人員提供降級培訓和諮詢。

CPI is a Wendel Group portfolio company. Our yield at cost is approximately 10.3%. We also increased our existing position in the first lien term loan of Multi-Color Corp., also known as Label, to take advantage of an attractive price in the secondary market. Our yield at cost is approximately 10.9%.

CPI 是 Wendel 集團的投資組合公司。我們的成本收益率約為 10.3%。我們還增加了 Multi-Color Corp.（也稱為 Label）第一筆留置權定期貸款的現有頭寸，以利用二級市場上有吸引力的價格。我們的成本收益率約為 10.9%。

We also participated in the refinancing of an existing portfolio company, Northstar. Our yield at cost there is 10.2%. And lastly, we realized our first lien term loan position in Empire Office, which was refinanced during the quarter.

我們也參與了現有投資組合公司 Northstar 的再融資。我們的成本收益率為 10.2%。最後，我們在 Empire Office 實現了第一個留置權定期貸款頭寸，該頭寸在本季度進行了再融資。

We have been invested in Empire Office since April 2019. Our realized IRR was approximately 13.3%. As of March 31, our largest industry concentrations were trading company and distributors at 14.6%, commercial services and supplies at 11.6%, professional services at 9.9%, containers and packaging at 7.6%, followed by Internet and direct marketing retail at 4.6%, and IT services at 4.5%. Our portfolio companies own 22 GICS industries as of quarter end, including our equity and warrant positions, which is a decrease of three industries from the previous quarter. I would now like to turn the call over to Peter to discuss the financial results.

我們自2019年4月起投資帝國辦公室。我們實現的 IRR 約為 13.3%。截至3月31日，我們最大的產業集中度是貿易公司和經銷商，佔14.6%，商業服務和用品​​佔11.6%，專業服務佔9.9%，容器和包裝佔7.6%，其次是網路和直銷零售，佔4.6%， IT服務佔4.5%。截至季末，我們的投資組合公司擁有 22 個 GICS 產業，包括我們的股票和認股權證頭寸，比上季減少了 3 個產業。我現在想把電話轉給彼得，討論財務表現。

Thank, Suhail. For the quarter ended March 31, 2024, our net investment income was $2.1 billion or $0.0014 per share, an increase of approximately 33% from the previous quarter's net investment income of $1.6 million or $0.11 per share. The fair value of our portfolio was $192.2 million compared to $207.4 million on December 31.

謝謝，蘇海爾。截至 2024 年 3 月 31 日的季度，我們的淨投資收益為 21 億美元或每股 0.0014 美元，比上一季的淨投資收益 160 萬美元或每股 0.11 美元增長約 33%。我們投資組合的公平價值為 1.922 億美元，而 12 月 31 日為 2.074 億美元。

Our net assets were $79.1 million, an increase of $0.3 million from the prior quarter. Our portfolio's net increase in net assets from operations this quarter was approximately $2.4 million. The weighted average yield of our debt portfolio was 12.36%, compared to 11.46% for the quarter ended December 31.

我們的淨資產為 7,910 萬美元，比上一季增加了 30 萬美元。本季我們投資組合的營運淨資產淨成長約為 240 萬美元。我們的債務投資組合的加權平均收益率為 12.36%，而截至 12 月 31 日的季度為 11.46%。

As of March 31, our portfolio consisted of 40 borrowers. Approximately 83.82% of our investments were first lien, and the remaining 16.18% is invested in equity, warrants, and the other positions 99.6% of our debt portfolio was invested in floating rate instruments and 0.4% in fixed rate investments.

截至 3 月 31 日，我們的投資組合由 40 位借款人組成。我們的投資中約 83.82% 為第一留置權，其餘 16.18% 投資於股票、認股權證和其他部位。

The average floor on our debt investments was 1%. Our average portfolio company position on an FMB basis was approximately $4.8 million, and our largest portfolio company investment on an FMB basis is Bioplan at $14.6 million.

我們債務投資的平均下限為 1%。以 FMB 計算，我們投資組合公司的平均部位約為 480 萬美元，以 FMB 計算，我們最大的投資組合公司投資是 Bioplan，為 1,460 萬美元。

We had a gross leverage of 1.52x and a net leverage of 1.36x as of March 31 compared to 1.70x gross and 1.51x net, respectively, for the previous quarter. With respect to our liquidity, as of March 31, we had approximately $12.9 million in cash, of which approximately $10.2 million was restricted cash with $42.5 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-Q, which was filed yesterday. With that, I would like to turn the call back over to Mike.

截至 3 月 31 日，我們的總槓桿率為 1.52 倍，淨槓桿率為 1.36 倍，而上一季的總槓桿率為 1.70 倍，淨槓桿率為 1.51 倍。關於我們的流動性，截至 3 月 31 日，我們擁有約 1,290 萬美元現金，其中約 1,020 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 4,250 萬美元。有關我們投資組合構成的更多資訊包含在昨天提交的 10-Q 表格中。有了這個，我想把電話轉回給麥克。

Thank you, Peter. As we look towards the last quarter of our fiscal year, our top priority is focused on capital preservation and maintaining a stable dividend. As Suhail mentioned, we are actively working to rotate and diversify the portfolio into more stable credits.

謝謝你，彼得。當我們展望本財年的最後一個季度時，我們的首要任務是資本保值和維持穩定的股利。正如蘇海爾所提到的，我們正在積極努力將投資組合輪調和多元化，以形成更穩定的信貸。

We're confident in our pipeline and our capacity to invest our capital in high quality opportunities. Our approach to credit selection continues to be disciplined, and we're committed to maintaining the quality of our portfolio. That concludes our prepared remarks. Operator, please open the line for Q&A.

我們對我們的管道和將資本投資於高品質機會的能力充滿信心。我們的信貸選擇方法繼續嚴格，並且我們致力於維持投資組合的品質。我們準備好的演講到此結束。接線員，請開通問答線。

(Operator Instructions) Christopher Nolan, Ladenburg Thalmann.

（操作員說明）克里斯多福諾蘭、拉登堡塔爾曼。

Suhail, congratulations on your elevation. And Mike, it was good working with you. Look forward to continue working with you. A couple of questions. First, the change in the yields on the portfolio, what was the driver for that, please?

蘇海爾，恭喜你晉升。麥克，很高興和你一起工作。期待繼續與您合作。有幾個問題。首先，投資組合報酬率的變化，請問其驅動因素為何？

Chris, thank you for the comment. Largely just the market, as we're seeing -- basically, we're seeing spreads start to tighten. And I'm sure you're hearing this from others as well. I mean, the market has gotten competitive. There's generally a lack of deal flow and lack of supply in the marketplace for new platform transactions. So we're starting to see some yield compression.

克里斯，謝謝您的評論。正如我們所看到的，很大程度上只是市場——基本上，我們看到價差開始收緊。我相信您也從其他人那裡聽過這樣的說法。我的意思是，市場已經變得競爭激烈。新平台交易普遍缺乏交易流和市場供應。因此，我們開始看到產量有所壓縮。

Good. And then, I guess Klein Hersh, which is one of your larger on nonaccruals. Any update you can provide on that?

好的。然後，我猜克萊因·赫什 (Klein Hersh) 是您較大的非應計利息之一。您能提供任何更新嗎？

Not at this moment. We are actively working on the situation. It's a nice discussion going on. We believe we're in a pretty good place, but we'll have more to share on that restructuring gets finalized.

不是現在。我們正在積極應對這一情況。這是一個很好的討論正在進行中。我們相信我們處於一個非常好的位置，但我們將在重組完成後分享更多。

And then, Mike, on your comments that you expect that the earnings will cover the dividend in the June quarter, should we read that as covering the base dividend or the entire base and supplement?

然後，麥克，根據您的評論，您預計收益將涵蓋六月季度的股息，我們是否應該將其解釋為涵蓋基本股息或整個基本股息和補充股息？

Yeah, Chris, at this point, the base. The supplement, I'm not sure that we will cover at this point. We'll see how that plays out.

是的，克里斯，現在是基地。補充，我不確定我們現在會涵蓋這一點。我們將看看結果如何。

Okay. And then a final question. And I know it's a little far out, but looking at the 2026 notes, which had a pretty attractive coupon of 4.875%. I know it's early days. But if you were to refinance, it would be probably a much higher coupon. What are your thoughts in terms of your strategy for that or are you still in a wait and see mode?

好的。然後是最後一個問題。我知道這有點遙遠，但看看 2026 年紙幣，它的票面利率為 4.875%，相當有吸引力。我知道現在還為時過早。但如果你要再融資，優惠券可能會高很多。您對此有何策略想法，還是仍處於觀望狀態？

We are -- we've been talking about it, but we are developing strategy around it. As you've seen, we've brought down our net leverage and our total leverage over time. So that will be part of our discussions as we get closer and closer to that.

我們一直在談論它，但我們正在圍繞它制定戰略。正如您所看到的，隨著時間的推移，我們已經降低了淨槓桿率和總槓桿率。因此，隨著我們越來越接近這一目標，這將成為我們討論的一部分。

Okay. Thank you for taking my questions.

好的。感謝您回答我的問題。

Thank you very much.

非常感謝。

Sean-Paul Adams, Raymond James. (Operator Instructions)

肖恩·保羅·亞當斯，雷蒙德·詹姆斯。（操作員說明）

Hey, guys. Good morning. It looks like 1888 Industrial Services was sold off from the portfolio. Can you touch and provide a little bit more color on kind of the resolution time frame for the other nonaccruals in the portfolio? Additionally, talk about the overall health of the credit portfolio looking forward?

嘿，夥計們。早安.看起來 1888 Industrial Services 已從投資組合中出售。您能否就投資組合中其他非應計項目的解決時間框架提供更多資訊？此外，談談未來信貸投資組合的整體健康狀況？

So Mike, why don't I start and please jump in. I think, overall health of the portfolio, we're actually pretty pleased with generally all the names. I think you've seen, as I mentioned on the watch list names, ArborWorks, American Nuts, and Klein Hersh, we're actively working on those situations. They're evolving from where we have to put those positions marked and where we think the outcome is going to be. We feel pretty good about the portfolio.

那麼麥克，我為什麼不開始，請加入。我認為，就投資組合的整體健康狀況而言，我們實際上對所有名稱都非常滿意。我想您已經看到，正如我在觀察名單中提到的 ArborWorks、American Nuts 和 Klein Hersh，我們正在積極應對這些情況。它們是從我們必須標記這些位置以及我們認為結果將會是的地方演變而來的。我們對這個投資組合感覺非常好。

There's nothing imminent, Sean. And far as we can tell in the portfolio, there are one or two names that are developing. But there's nothing I think at this point, alarming in the portfolio that we would say I think the problems coming down the pike other than perhaps one or two situations that are developing real time.

沒有什麼迫在眉睫的事情，肖恩。據我們所知，在產品組合中，有一兩個名字正在開發中。但在這一點上，我認為在投資組合中沒有什麼值得警惕的，我們會說我認為除了可能即時發展的一兩種情況之外，還會出現問題。

The only thing that I would expand on there is that the watch list that we talked about, the existing nonaccruals, I think we have constructive dialogs going on, and we have very good lender groups on all those.

我唯一要擴展的是我們討論的觀察清單、現有的非應計項目，我認為我們正在進行建設性對話，並且我們在所有這些方面都有非常好的貸方團體。

Got it. Thank you for the color. Appreciate it.

知道了。謝謝你的顏色。欣賞它。

(Operator Instructions) I don't see any other questions.

（操作員說明）我沒有看到其他問題。

I would like to thank everyone and appreciate all of your time. And with that, we will talk to you soon.

我要感謝大家並感謝你們花費的時間。我們很快就會與您交談。

Thank you, everyone.

謝謝大家。

Thank you, everyone. And this concludes today's conference call. Q4.

謝謝大家。今天的電話會議到此結束。Q4。