MidCap Financial Investment Corp (MFIC) 2024 Q3 法說會逐字稿

Good morning and welcome to the earnings conference call for the period ending September 30, 2024, for MidCap Financial Investment Corporation. (Operator Instructions) I would now like to turn the call over to Elizabeth Besen, Investor Relations Manager for MidCap Financial Investment Corporation. Please go ahead.

早安，歡迎參加 MidCap Financial Investment Corporation 截至 2024 年 9 月 30 日的收益電話會議。（操作員指示）現在，我想將電話轉給 MidCap Financial Investment Corporation 的投資者關係經理 Elizabeth Besen。請繼續。

Thank you, operator, and thank you everyone for joining us today. Speaking on today's call are Tanner Powell, Chief Executive Officer; Ted McNulty, President; and Greg Hunt, Chief Financial Officer. Our Executive Chairman, Howard Widra, is available for the Q&A portion of today's call.

謝謝接線員，也謝謝大家今天的參與。今天的電話會議發言者是首席執行官坦納·鮑威爾 (Tanner Powell)；泰德·麥克納爾蒂，總裁；以及財務長 Greg Hunt。我們的執行主席 Howard Widra 可以參加今天電話會議的問答環節。

I'd like to advise everyone that today's call and webcast are being recorded. Please note that they are the property of MidCap Financial Investment Corporation and that any unauthorized broadcast in any form is strictly prohibited. Information about the (technical difficulty)

我想告訴大家，今天的電話會議和網路直播都將被錄音。請注意，它們是 MidCap Financial Investment Corporation 的財產，嚴格禁止任何形式的未經授權的廣播。關於（技術難度）

I'd also like to call your attention to the customary Safe Harbor disclosure in our press release regarding forward-looking information. Today's conference call and webcast may include (technical difficulty) refer to our most recent filings with the SEC for risks that apply to our business and that may adversely affect any forward-looking statements we make. We do not undertake to update (technical difficulty) projections, unless required by law. To obtain copies of our SEC filings, please visit either the SEC's website at www.sec.gov or our website at www.midcapfinancialic.com.

我還想提請您注意我們新聞稿中有關前瞻性資訊的常規安全港披露。今天的電話會議和網路廣播可能包括（技術難題）請參閱我們最近向美國證券交易委員會提交的文件，以了解適用於我們業務的風險以及可能對我們做出的任何前瞻性陳述產生不利影響的風險。我們不承諾更新（技術難度）預測，除非法律要求。要取得我們的 SEC 文件的副本，請造訪 SEC 網站 www.sec.gov 或我們的網站 www.midcapfinancialic.com。

I'd also like to remind everyone that we've posted a supplemental financial information package on our website, which contains information about the portfolio as well as the company's (technical difficulty) Throughout today's call, we will refer to MidCap Financial Investment Corporation as either MFIC or the BDC, and we will use MidCap Financial to refer to the lender headquartered in (technical difficulty) this time, I'd like to turn our call over to Tanner Powell, MFIC's Chief Executive Officer.

我還想提醒大家，我們已經在我們的網站上發布了一個補充財務資訊包，其中包含有關投資組合以及公司（技術難度）的資訊。

Thank you, Elizabeth. Good morning, everyone, and thank you for joining MFIC's (technical difficulty) call. I'll start today's call by discussing the successful completion of our mergers with Apollo Senior Floating Rate Fund, or AFT and Apollo Tactical Income Fund or (technical difficulty) listed closed-end funds previously managed by Apollo.

謝謝你，伊麗莎白。大家早安，感謝大家參加 MFIC（技術難題）電話會議。我將在今天的電話會議上首先討論我們與阿波羅高級浮動利率基金 (AFT) 或阿波羅戰術收入基金 (Apollo Tactical Income Fund) 或（技術難度）阿波羅之前管理的上市封閉式基金的成功合併。

I will then provide an overview of MFIC's third-quarter results and share our perspective on the current market environment. (technical difficulty) to Ted, who will discuss our investment activity and provide an update on the investment portfolio, including the progress we've made rotating certain of the assets acquired in the mergers, (technical difficulty) results and capital position in more detail.

然後，我將概述 MFIC 第三季的業績並分享我們對當前市場環境的看法。 （技術難度）Ted 將詳細討論我們的投資活動並提供投資組合的最新情況，包括我們在輪換合併中獲得的某些資產方面所取得的進展、（技術難度）結果和資本狀況。

Let me start with a brief update on the closing of our mergers, which we view as a significant and transformational event for (technical difficulty). As I mentioned, MFIC successfully closed its mergers with AFT and AIF during the quarter.

首先，我簡單介紹一下我們合併完成的情況，我們認為這是對我們公司來說意義重大的變革性事件。（技術難度）。正如我所提到的，MFIC 在本季度成功完成了與 AFT 和 AIF 的合併。

As we said before, we believe these mergers offer (technical difficulty) and financial benefits. We are excited about the long-term benefits that we believe this transaction will create. More importantly, we expect these mergers will be (technical difficulty) for all shareholders.

正如我們之前所說，我們相信這些合併會帶來（技術難度）和財務利益。我們相信此次交易將創造的長期利益讓我們興奮不已。更重要的是，我們預計這些合併對所有股東來說都將是（技術難度）。

As a result of the mergers, MFIC's net assets increased by over 40%, generating significant investment capacity. Last quarter, we onboarded approximately $600 million of investments from the CES with approximately one-third in directly originated loans, which are (technical difficulty) considered to be core and intend to retain.

合併後，MFIC的淨資產增加了40%以上，產生了巨大的投資能力。上個季度，我們從 CES 獲得了約 6 億美元的投資，其中約三分之一是直接發放的貸款，這些貸款（技術難度）被視為核心貸款並打算保留。

The remaining two-thirds were non-directly originated loans consisting of broadly syndicated loans, high-yield bonds (technical difficulty) positions. We started rotating the non-directly originated assets when the merger closed, prioritizing the lower-yielding assets as Ted (technical difficulty) sell the non-directly originated assets are progressing well, and we are on track to complete these sales over the next few quarters.

其餘三分之二為非直接發放貸款，包括廣泛銀團貸款、高收益債券（技術難度）部位。合併結束時，我們開始輪換非直接來源的資產，優先考慮收益較低的資產，因為 Ted（技術難度）出售非直接來源的資產進展順利，我們預計在未來幾季完成這些銷售。

We are focused on prudently deploying (technical difficulty) generated from these sales and additional investment capacity created from the mergers. Based on our target leverage ratio of 1.4 times and the remaining non (technical difficulty) tend to reposition, we have approximately $600 million of capital to deploy into directly originated middle market loans. We are fortunate to have access to all the necessary origination to deploy this capital given the significant volume of commitments originated by MidCap Financial.

我們專注於審慎部署這些銷售所產生的收益（技術難度）以及合併產生的額外投資能力。基於我們 1.4 倍的目標槓桿率和剩餘的非（技術難度）傾向重新定位，我們有大約 6 億美元的資本可部署到直接發起的中間市場貸款。鑑於 MidCap Financial 發起的大量承諾，我們很幸運能夠獲得部署這筆資本所需的所有必要資源。

Over the past four quarters, MidCap has closed $18.7 billion of commitments, including $5.1 billion in the third quarter. That said, we are committed to deploying this capital in a steady and measured manner while maintaining discipline in terms of obligor and vintage exposure.

過去四個季度，MidCap 已完成 187 億美元的承諾，其中第三季為 51 億美元。儘管如此，我們致力於以穩健、有節制的方式部署這筆資本，同時在債務人和老式風險敞口方面保持紀律。

We have a clear and straightforward plan to gradually increase leverage over the coming quarters, and we believe MFIC's future results are well positioned to benefit as we re-lever back to our target level. We expect to be able to reach our target leverage in the next couple of quarters.

我們有一個明確而直接的計劃，即在未來幾季逐步提高槓桿率，我們相信，隨著我們重新將槓桿率提高到目標水平，MFIC 的未來業績將受益匪淺。我們預計能夠在接下來的幾個季度內達到我們的目標槓桿率。

Turning to our results for the September quarter, please note that the merger closed on July 22. Consequently, results for the quarter include approximately 10 weeks of combined company revenue and income.

回顧我們 9 月季度的業績，請注意合併已於 7 月 22 日完成。因此，本季的業績包括約 10 週的綜合公司收入和收益。

MFIC's net investment income per share for the September quarter was $0.44, which corresponds to an annualized return on equity or ROE of 11.5% and reflects a partial incentive fee. Results for the quarter reflect strong recurring interest income from our predominantly floating rate portfolio.

MFIC 9 月季度的每股淨投資收益為 0.44 美元，相當於年化股本回報率或 ROE 為 11.5%，並反映了部分激勵費用。本季的業績反映了我們以浮動利率為主的投資組合產生強勁的經常性利息收入。

We recorded a modest net loss on our portfolio. GAAP EPS for the quarter was $0.31. NAV per share was $15.10 at the end of September, down $0.08 or approximately 0.5% from the end of June, excluding the impact of the onetime $0.20 per share special cash distribution paid during the quarter in connection with the mergers.

我們的投資組合出現了適度的淨虧損。本季的 GAAP EPS 為 0.31 美元。 9 月底每股淨資產為 15.10 美元，較 6 月底下降 0.08 美元，約 0.5%，不包括本季與合併相關的一次性每股 0.20 美元特別現金分配的影響。

These mergers were a deleveraging event for MFIC. And at the end of September MFIC's net leverage was 1.16 compared to 1.45 at the end of June. The current market environment continues to benefit from a solid economic backdrop. Economic growth continues at a healthy rate, and we have witnessed continued strength in the consumer, strong wage growth, high stock prices and strong credit markets.

這些合併對於 MFIC 來說是一個去槓桿事件。9 月底，MFIC 的淨槓桿率為 1.16，而 6 月底為 1.45。當前的市場環境繼續受益於穩健的經濟背景。經濟持續保持健康成長，我們見證了消費持續強勁、薪資強勁成長、股價高漲和信貸市場強勁。

In terms of the credit markets, we have seen an increase in activity levels, though volume in the year-to-date period has been more concentrated in opportunistic re-financings and repricing, lowering spreads, pushing out maturities, and improving capital structures. More recently, we have seen some pickup in new money transactions and in particular, sponsor M&A following the September rate cuts and are cautiously optimistic that activity levels will increase in the back half of Q4 and into 2025.

在信貸市場方面，我們看到活動水準有所提高，儘管今年迄今的交易量更集中在機會性再融資和重新定價、降低利差、延長期限和改善資本結構方面。最近，我們看到新資金交易有所回升，尤其是 9 月降息後的贊助商併購交易，我們謹慎樂觀地認為，第四季後半段以及 2025 年的活動水準將會上升。

In addition to rate cuts and as we have mentioned in the past, we know the dynamics with financial sponsors seeking liquidity events for fundraising and the pressure to return capital as hold periods have continued to stretch in addition to significant dry powder may also serve to increase M&A volumes into 2025.

除了降息之外，正如我們過去提到的那樣，我們知道，金融贊助商尋求融資流動性事件的動態，以及隨著持有期不斷延長而返還資本的壓力，再加上大量的未償資金，也可能導致到 2025 年的併購量增加。

As you know, MFIC is squarely focused on investing in first lien loans to middle market companies sourced by MidCap Financial, a leading middle market lender with one of the largest direct lending teams in the US with close to 200 investment professionals. MidCap Financial was founded in 2009, has a long track record, which includes closing on approximately $124 billion of lending commitments since 2013.

如您所知，MFIC 專注於投資由 MidCap Financial 提供的中型市場公司的一級留置權貸款，MidCap Financial 是一家領先的中型市場貸款機構，擁有美國最大的直接貸款團隊之一，擁有近 200 名投資專業人士。MidCap Financial 成立於 2009 年，擁有悠久的業績記錄，自 2013 年以來已達成約 1240 億美元的貸款承諾。

This origination track record provides us with a very large data set of middle market company financial information across all industries, and we believe makes MidCap Financial one of the most informed and experienced middle market lenders in the market.

這項發起記錄為我們提供了涵蓋所有行業的中型市場公司財務資訊的龐大數據集，我們相信，這使得 MidCap Financial 成為市場上最知情和最有經驗的中型市場貸款機構之一。

Apollo Global's affiliation with MidCap Financial provides MFIC and the broader Apollo platform with significant deal flow. In short, we believe the core middle market offers attractive investment opportunities across cycles and does not compete directly with either the broadly syndicated loan market or the high-yield market.

Apollo Global 與 MidCap Financial 的合作為 MFIC 和更廣泛的 Apollo 平台提供了重要的交易流。簡而言之，我們認為核心中端市場提供了跨週期的有吸引力的投資機會，並且不會與廣泛的銀團貸款市場或高收益市場直接競爭。

Turning to our dividend. As a reminder, during the September quarter, in addition to our regular quarterly dividend of $0.38, we paid a special $0.20 onetime special dividend to shareholders in connection with the mergers. On November 4, 2024, our Board declared a quarterly dividend of $0.38 per share for shareholders of record as of December 10, 2024, payable on December 26, 2024. With that, I will now turn the call over to Ted.

談到我們的股利。提醒一下，在 9 月季度，除了 0.38 美元的常規季度股息外，我們還就合併事宜向股東支付了 0.20 美元的一次性特別股息。2024 年 11 月 4 日，我們的董事會宣布向截至 2024 年 12 月 10 日登記在冊的股東派發每股 0.38 美元的季度股息，並於 2024 年 12 月 26 日支付。說完這些，我現在將電話轉給泰德。

Thank you, Tanner. Good morning, everyone. I'll spend a few minutes reviewing our third-quarter investment activity and then provide details on our portfolio. In the September quarter, we started actively deploying the capital from the mergers. MFIC's new commitments in the September quarter totaled $371 million, up 30% from the prior quarter and were across 27 different borrowers for an average new commitment of $13.7 million.

謝謝你，坦納。大家早安。我將花幾分鐘回顧我們第三季的投資活動，然後提供我們投資組合的詳細資訊。從九月季度開始，我們開始積極部署合併所得的資本。MFIC 9 月季度的新承諾總額為 3.71 億美元，較上一季成長 30%，來自 27 個不同的借款人，平均新承諾金額為 1,370 萬美元。

All new commitments were first lien. The weighted average spread on our new commitments in the September quarter was 533 basis points. Net leverage on new commitments was 4.7 times. For the quarter, gross fundings totaled $288 million, excluding revolvers and assets from the mergers.

所有新承諾均為優先留置權。9月季度，我們新承諾的加權平均利差為533個基點。新承諾的淨槓桿率為4.7倍。本季度，總融資額為 2.88 億美元，不包括循環信貸和合併資產。

Net revolver fundings were $13 million, and we received a $7.5 million paydown from Merx. In total, net fundings were $222 million, excluding assets from the mergers.

淨循環信貸資金為 1300 萬美元，我們從 Merx 獲得了 750 萬美元的償還款。整體而言，淨融資額為 2.22 億美元（不包括合併資產）。

As mentioned on last quarter's call, we onboarded $596 million in assets from the closed-end funds, of which $207 million or 35% were directly originated loans and $389 million or 65% were non-directly originated loans.

正如上個季度的電話會議上所提到的，我們從封閉式基金中引入了 5.96 億美元的資產，其中 2.07 億美元或 35% 為直接發放貸款，3.89 億美元或 65% 為非直接發放貸款。

We sold or were repaid on $234 million of these assets, including two positions that were on non-accrual status. In aggregate, net fundings for the quarter totaled $585 million, including assets from the mergers. With respect to the non-directly originated loans acquired in the mergers, these assets are held throughout the Apollo platform, which is facilitating both the credit monitoring and the sales process.

我們出售或獲得了 2.34 億美元的資產償還，其中包括兩項處於非應計狀態的部位。整體來看，本季淨融資總額為 5.85 億美元，其中包括合併產生的資產。對於在合併中獲得的非直接發放的貸款，這些資產在整個 Apollo 平台上持有，這有助於信用監控和銷售流程。

Turning to our investment portfolio. At the end of September, our portfolio had a fair value of $3.03 billion and was invested in 250 companies across 26 industries. Direct origination and other, including the directly originated loans acquired from the closed-end funds, represents 88% of the total portfolio. The non-directly originated loans acquired from the closed-end funds represented 6% and Merx also accounted for approximately 6% of the total portfolio on a fair value basis.

談到我們的投資組合。截至九月底，我們的投資組合公允價值為 30.3 億美元，投資於 26 個產業的 250 家公司。直接發放和其他貸款（包括從封閉式基金獲得的直接發放貸款）佔總投資組合的 88%。從封閉式基金中獲得的非直接發放貸款佔 6%，而 Merx 以公允價值計算也佔總投資組合的約 6%。

As you can see on page 6 in the earnings supplement, we've added a row to break out the non-directly originated assets that we acquired from the mergers. Taking into account the remaining non-directly originated loans that we intend to sell, plus the additional investment capacity based on a target leverage of 1.4 times, we have approximately $600 million of capital to deploy in directly originated middle market loans.

正如您在收益補充報告第 6 頁所看到的，我們添加了一行來列出我們從合併中獲得的非直接來源資產。考慮到我們打算出售的剩餘非直接發放貸款，加上基於 1.4 倍目標槓桿的額外投資能力，我們有大約 6 億美元的資本可以部署在直接發放的中間市場貸款中。

We continue to monetize the non-directly originated assets, although the pace may vary as we remain committed to deploying the capital in a steady and measured manner. At the end of September, 98% of our directly originated portfolio was first lien at fair value.

我們將繼續將非直接來源的資產貨幣化，儘管步伐可能會有所不同，因為我們仍然致力於以穩健、有節制的方式部署資本。截至九月底，我們直接發起的投資組合中有 98% 是以公允價值優先留置權的。

Approximately 99% of our direct origination portfolio on a cost basis had one or more financial covenants and 91% of our direct origination portfolio is backed by financial sponsors who we know well and with whom midcap has longstanding relationships. The average funded direct origination debt position was $13 million.

以成本計算，我們的直接發起投資組合中約有 99% 擁有一個或多個財務契約，並且我們的直接發起投資組合中 91% 得到了我們熟悉且與中型企業有長期合作關係的金融贊助商的支持。直接發起債務的平均融資額為 1,300 萬美元。

The weighted average yield at cost of our directly originated lending portfolio was 11.6% on average for the September quarter, down from 12% last quarter. The decline in the weighted average yield was mostly due to the decline in base rates and to a lesser extent, the decline in the spread on assets.

9 月季度，我們直接發放貸款組合的加權平均成本收益率為 11.6%，低於上一季的 12%。加權平均收益率的下降主要是由於基準利率的下降，其次也是由於資產利差的下降。

At the end of September, the weighted average spread on directly originated corporate lending portfolio was 577 basis points, down 24 basis points compared to the end of June. The decline in the yield on the direct origination portfolio was not materially impacted by the closed-end fund assets.

9月末，直接發放企業貸款加權平均利差為577個基點，較6月底下降24個基點。直接發起投資組合報酬率的下降並未受到封閉式基金資產的重大影響。

In terms of credit quality, we believe the overall credit quality of MFIC's direct origination portfolio remains healthy. The financial sponsors and management teams of our borrowers have been effectively managing their liquidity.

在信用品質方面，我們認為 MFIC 直接發起組合的整體信用品質仍然健康。我們的借款人的財務發起人和管理團隊一直在有效地管理他們的流動性。

In a handful of more challenged situations, we're seeing good financial sponsor support. We have not seen a significant increase in amendment requests related to covenants or liquidity and the requests we have seen are generally accompanied with equity infusions.

在少數更具挑戰性的情況下，我們看到了良好的財務贊助商支援。我們沒有看到與契約或流動性相關的修改請求顯著增加，而且我們看到的請求通常伴隨著股權注入。

At the end of September, the weighted average net leverage of our direct origination portfolio increased slightly to 4.3 times, up from 4.38 times last quarter. At the end of September, the weighted average interest coverage ratio was 1.9 times flat compared to last quarter. The median EBITDA of MFIC's origination portfolio companies was approximately $52 million.

截至 9 月底，我們的直接發起投資組合的加權平均淨槓桿率從上一季的 4.38 倍小幅上升至 4.3 倍。9月末，加權平均利息覆蓋率1.9倍，與上季末持平。MFIC 發起投資組合公司的 EBITDA 中位數約為 5,200 萬美元。

We believe the stable level of revolver utilization we are seeing from our portfolio companies is also an indicator of portfolio health. At the end of September, approximately 31% of our leveraged lending revolver commitments were drawn, which is consistent quarter over quarter. We believe a steady revolver utilization rate can indicate greater financial stability.

我們相信，我們所投資組合公司循環信貸使用率的穩定水準也是投資組合健康狀況的指標。截至 9 月底，我們約有 31% 的槓桿貸款循環信貸承諾已被提取，與上一季持平。我們相信穩定的循環信用額使用率可以顯示更高的財務穩定性。

Our underwriting on mid-cap sourced loans has proven to be sound. Based on data since mid-2016, which is the approximate date upon which we began utilizing our co-investment order, our annualized net realized and unrealized loss rate is around 4 basis points on loans sourced by MidCap Financial. We think this performance data shows how well the strategy has performed.

事實證明，我們對中型企業貸款的承保是合理的。根據 2016 年中期（也就是我們開始使用共同投資訂單的大致日期）以來的數據，我們從 MidCap Financial 獲得的貸款的年化淨已實現和未實現損失率約為 4 個基點。我們認為這些績效數據顯示了該策略的良好表現。

No investments were added to non-accrual status during the quarter. We exited two investments from the acquired closed-end fund portfolios that were on non-accrual status.

本季沒有投資被加入到非應計狀態。我們從收購的封閉式基金投資組合中退出了兩項處於非應計狀態的投資。

At the end of September, investments on non-accrual were 1.8% of the total portfolio at fair value or 2.3% at cost. When assessing a BDC's credit quality, we think it is important to look at investments on non-accrual status in combination with the BDC's level of PIK income.

截至 9 月底，非應計投資以公允價值計算佔總投資組合的 1.8%，以成本計算佔 2.3%。在評估 BDC 的信用品質時，我們認為，結合 BDC 的 PIK 收入水準來考慮非應計狀況的投資非常重要。

We believe allowing borrowers to PIK can make non-accrual levels appear artificially low as the financial stress of borrowers is not fully reflected in the non-accrual statistics and potentially masking underlying issues. We do recognize that it makes sense to allow borrowers to opt to PIK in certain circumstances. MFIC's PIK income remains low, representing approximately 3.6% of total investment income from the quarter, well below the BDC average.

我們認為，允許借款人進行實物補償可能會使不計息水平顯得人為偏低，因為借款人的財務壓力並未完全反映在不計息統計數據中，並可能掩蓋潛在問題。我們確實認識到，在某些情況下允許借款人選擇 PIK 是有意義的。MFIC 的 PIK 收入仍然很低，約佔本季總投資收入的 3.6%，遠低於 BDC 平均值。

Moving to Merx, as we've discussed in the past, we're focused on reducing our investment in our aircraft leasing and servicing business. While we don't expect paydowns to occur evenly, we believe aircraft sales and servicing income should allow for the paydown of third-party debt and MFICs investment in Merx over time. During the September quarter, Merx paid $9.1 million, including $1.6 million of interest and a $7.5 million return of capital, which we highlighted on our last earnings call.

轉向 Merx，正如我們過去討論過的，我們專注於減少對飛機租賃和服務業務的投資。雖然我們不期望償還金額會均勻分佈，但我們相信，隨著時間的推移，飛機銷售和服務收入應該能夠償還第三方債務和 MFIC 對 Merx 的投資。9 月季度，Merx 支付了 910 萬美元，其中包括 160 萬美元的利息和 750 萬美元的資本回報，我們在上次財報電話會議上強調了這一點。

At the end of September, MFIC's investment in Merx totaled $183 million, representing 6% of the total portfolio at fair value. The blended yield across our total investment in Merx was approximately 3.3% at fair value and the continued rotation of capital from Merx into directly originated corporate loans should have a beneficial impact on MFIC's income.

截至九月底，MFIC 對 Merx 的投資總額為 1.83 億美元，以公允價值計算佔總投資組合的 6%。我們對 Merx 的總投資的混合收益率以公允價值計算約為 3.3%，而 Merx 的資本持續輪換到直接發放的公司貸款應該會對 MFIC 的收入產生有益的影響。

We expect MFIC's exposure to Merx to decline in the coming quarters, driven by additional paydowns and the continued growth in the investment portfolio as we deploy the capital acquired in the mergers. We believe the current environment for selling aircraft is very attractive due to limited availability and strong demand, and we expect to make meaningful progress reducing our exposure in the near future. With that, I will now turn the call over to Greg to discuss our financial results in detail.

我們預計，隨著我們部署合併中獲得的資本，額外的還款和投資組合的持續成長將在未來幾季內下降。我們認為，由於供應有限且需求強勁，目前的飛機銷售環境非常有吸引力，我們預計在不久的將來將在減少風險方面取得重大進展。說完這些，我現在將電話轉給格雷格，詳細討論我們的財務表現。

Thank you, Ted, and good morning, everyone. Beginning with our results, as previously mentioned, the mergers closed on July 22. Consequently, results for the September quarter include approximately 10 weeks of combined company revenue and income.

謝謝你，泰德，大家早安。從我們的結果開始，如前所述，合併於 7 月 22 日完成。因此，9月季度的業績包括約10週的綜合公司營收和收益。

Net investment income per share for the September quarter was $0.44 and GAAP EPS was $0.31, which reflects a $0.13 per share net loss. Results for the quarter correspond to an annualized return on equity or ROE based on net investment income of 11.5% and annualized ROE based on net income of 8.1%.

9 月季度的每股淨投資收益為 0.44 美元，GAAP EPS 為 0.31 美元，反映每股淨虧損 0.13 美元。本季業績對應以淨投資收益為基礎的年化股本回報率（ROE）為 11.5%，基於淨收益的年化 ROE 為 8.1%。

I will now discuss several factors that impacted MFIC's results for the September quarter. First, as previously noted, the mergers were a deleveraging event for MFIC. Accordingly, results for the September quarter reflect below-target leverage as we sold certain assets acquired in the mergers and deployed capital into directly originated loans.

現在我將討論影響 MFIC 9 月季度業績的幾個因素。首先，如前所述，合併對 MFIC 來說是一個去槓桿事件。因此，由於我們出售了在合併中獲得的某些資產並將資本投入直接發放的貸款，9 月季度的業績反映出槓桿率低於目標。

We ended the September quarter with a net leverage of 1.16 times below our target. As Tanner mentioned, we intend to prudently increase leverage over the coming quarters, and we see no impediment to doing so. Second, prepayment and fee income were below normal levels.

截至九月季度，我們的淨槓桿率比目標低 1.16 倍。正如坦納所提到的，我們打算在未來幾季謹慎地增加槓桿率，而且我們認為這樣做沒有任何障礙。二是預付款及費用收入低於正常水準。

For the September quarter, prepayment income was approximately $900,000, down from $3.2 million in the prior quarter. Fee income was approximately $1 million, up slightly from last quarter.

9月當季預付收入約90萬美元，低於上一季的320萬美元。費用收入約 100 萬美元，比上一季略有增加。

Third, MFIC's base management fee was $4.4 million, unchanged from the previous quarter. Our base fee is calculated as $1.75 on net assets as of the beginning of the quarter. Consequently, the increase in net assets from the merger did not impact the management fee in the September. In the December quarter, the base management fee will be approximately $6.2 million.

第三，MFIC基本管理費為440萬美元，與上一季持平。我們的基本費用是根據季度初的淨資產 1.75 美元計算的。因此，合併帶來的淨資產增加並沒有影響9月的管理費。12 月季度，基本管理費約 620 萬美元。

Fourth, results for the quarter include a net loss of $11.4 million or $0.13 per share. MFIC's incentive fee for the quarter was approximately $4.6 million. We are focused on deploying the capital from the mergers and repositioning the remaining non-directly originated loans and increasing MFIC's earnings power.

第四，本季業績包括淨虧損 1,140 萬美元，即每股 0.13 美元。MFIC 本季的獎勵費約為 460 萬美元。我們專注於部署合併產生的資本、重新定位剩餘的非直接發放貸款並提高 MFIC 的獲利能力。

Taking all of this into account, at the end of September, MFIC's NAV per share was $15.10, down $0.08 quarter over quarter or approximately 0.5%, excluding the one-time $0.20 per share special dividend paid in connection with the mergers. $0.08 decline was driven by $0.13 per share net loss, partially offset by net income in excess of our regular dividend.

綜合考慮所有這些因素，截至 9 月底，MFIC 的每股資產淨值為 15.10 美元，環比下降 0.08 美元，降幅約 0.5%，不包括與合併相關的每股 0.20 美元的一次性特別股息。 0.08 美元的下降是由每股 0.13 美元的淨虧損造成的，但部分被超過我們常規股息的淨收入所抵消。

Moving to capital. MFIC issued 28.5 million shares at NAV during the quarter as part of the consideration for the merger. As a result, MFIC now has approximately 93.8 million shares outstanding. In accordance with IAS 33, MFIC's NII and EPS denominators were based on the weighted average shares outstanding during the quarter. Since 28.5 million shares were issued approximately three weeks into the quarter, the EPS denominator for the September quarter was approximately $87.3 million.

移師首都。作為合併對價的一部分，MFIC 本季按資產淨值發行了 2,850 萬股股票。因此，MFIC 目前已擁有約 9,380 萬股流通股。根據《國際會計準則第 33 號》，MFIC 的 NII 和 EPS 分母是基於該季度的加權平均流通股數。由於本季大約三週內發行了 2,850 萬股，因此 9 月季度的每股盈餘分母約為 8,730 萬美元。

In terms of recent debt capital activity, as previously disclosed, in October, we were pleased to extend the maturity of our senior secured revolving credit facility by approximately 18 months, pushing the maturity to October 2029. We maintained existing pricing and terms. Total lender commitments under the facility were increased by $110 million to $1.6 billion, with the number of lenders increasing to 18.

就近期的債務資本活動而言，如前所述，10 月份，我們很高興將優先擔保循環信貸額度的到期日延長約 18 個月，將到期日推遲至 2029 年 10 月。我們維持現有的價格和條款。該貸款協議項下的貸款總承諾金額增加了 1.1 億美元，達到 16 億美元，貸款方數量增加至 18 家。

We announced MFIC's merger with the closed-end funds. We highlighted improved access to capital as a key potential benefit, and we are pleased to see this benefit materialize. We successfully added a new lender to the facility who was previously a credit provider to the closed-end funds. We greatly appreciate the support from our lending partners.

我們宣布了MFIC與封閉式基金的合併。我們強調改善獲取資本的管道是一項關鍵的潛在好處，我們很高興看到這項好處得以實現。我們成功地為該機構增加了一位新的貸款人，該貸款人之前是封閉式基金的信貸提供者。我們非常感謝貸款合作夥伴的支持。

I'd like to review the accounting aspects of the mergers. Mergers are being accounted for in accordance with the asset acquisition method of accounting under ASC 805-50. As a reminder, AFT and AIF merged with and into MFIC in two stock-for-stock transactions with shares being exchanged on a NAV-for-NAV basis.

我想回顧一下合併的會計方面。合併依照 ASC 805-50 中的資產收購會計方法進行會計處理。提醒一下，AFT 和 AIF 透過兩次換股交易與 MFIC 合併，股票以資產淨值對資產淨值的方式進行交換。

The exchange ratios for the mergers were based on each fund's NAV per share as of July 19, 2024. Accordingly, MFIC issued 0.9547 shares of its common stock for each AFT share and 0.9441 shares of its common stock or HAIF share. In total, MFIC issued 28.5 million shares of MFIC to the closed-end funds, resulting in 93.8 million MFIC outstanding shares following the merger.

合併的兌換比率是根據截至 2024 年 7 月 19 日的每個基金的每股資產淨值。因此，MFIC 為每股 AFT 股票發行 0.9547 股普通股，為每股 HAIF 股票發行 0.9441 股普通股。總體而言，MFIC 向封閉式基金發行了 2,850 萬股 MFIC 股票，合併後 MFIC 流通股數為 9,380 萬股。

Time of the merger closing, MFIC was trading at a slight discount to its current NAV. In connection with the mergers, an affiliate of Apollo paid $0.25 per share special cash payment to the closed-end fund shareholders for a total payment of $7.5 million.

合併完成時，MFIC 的交易價格略低於其目前資產淨值。在此次合併中，阿波羅的一家附屬公司向封閉式基金股東支付了每股 0.25 美元的特別現金支付，總計 750 萬美元。

In accordance with accounting guidance, a portion of this cash payment was the merger consideration, which resulted in the fair value of the consideration paid to both the closed-end funds being equal to the fair value of the acquired assets, resulting in no purchase discount or premium. As a result, there's no impact on the cost basis of the acquired assets and therefore, no impact on our financial statements.

根據會計準則，該現金支付的一部分為合併對價，這導致支付給兩隻封閉式基金的對價的公允價值等於所收購資產的公允價值，因此不存在購買折扣或溢價。因此，這對收購資產的成本基礎沒有影響，因此對我們的財務報表也沒有影響。

Fair value of the closed-end assets at close became MFIC's cost basis in (technical difficulty) without any adjustments. This concludes our prepared remarks. Please open the call to questions.

封閉式資產的收盤公允價值成為 MFIC 的成本基礎（技術難度），無需進行任何調整。我們的準備好的演講到此結束。請打開電話來回答問題。

(Operator Instructions) Kenneth Lee, RBC Capital Partners Markets.

(操作員指示) Kenneth Lee，RBC Capital Partners Markets。

Hey, good morning. Thanks for taking my question. Just one on the fee income there. Could you just remind us again if MFIC is more levered to prepayments for fee income and therefore, as prepayments pick up, you should see a little bit more of a pickup there? Thanks.

嘿，早安。感謝您回答我的問題。那裡只有一項費用收入。您能否再次提醒我們，MFIC 的費用收入是否更依賴預付款，因此，隨著預付款的增加，您是否應該看到預付款的增加？謝謝。

So I think -- thanks, Ken. So the loan asset class doesn't typically have a ton of call protection. And in particular, in markets like this, you start to see that become less robust in any event and it's rarely ever more than [102, 101]. Our practice is to take OID and amortize it over time. And so prepayments will create a pull forward of that OID, if you will, if the loan is redeemed prior to maturity.

所以我認為——謝謝，肯。因此，貸款資產類別通常沒有大量的贖回保護。特別是在這樣的市場中，你開始看到它變得不那麼強勁，無論如何，它很少會超過[102，101]我們的做法是採用 OID 並隨著時間的推移進行攤銷。因此，如果貸款在到期前贖回，預付款將會對該 OID 產生拉動動作用。

But oftentimes outside of -- and the one exception within our portfolio is in our life sciences vertical, where we typically will have a call protection. So notwithstanding, you've got a dynamic where, yes, there is a pickup when you do see prepayments. But outside of life sciences, it's not too dramatic on any given loan.

但很多時候—我們的投資組合中的一個例外是我們的生命科學垂直領域，我們通常會有一個看漲保護。因此，儘管如此，你還是會得到一種動態，是的，當你看到預付款時，就會出現回升。但在生命科學領域之外，任何一筆貸款的情況都不會太誇張。

Got you. Very helpful there. And just one follow-up, if I may. In terms of the ongoing rotation for the non-directly originated assets, and you mentioned during the prepared remarks that the pace could vary over the next few quarters. Any updated outlook in terms of what factors could drive the pace there? Is it based on macro or pricing or rates? Just any kind of color around that. Thanks.

明白了。非常有幫助。如果可以的話，我還有一個後續問題。就非直接來源資產的持續輪換而言，您在準備好的發言中提到，未來幾季的輪換速度可能會有所不同。對於哪些因素可能會推動這項進程，您有何新的展望？它是基於宏觀、定價還是利率？周圍只要有顏色就行。謝謝。

Yeah, sure, Ken. It's a little bit of all of those things. We want to manage our deployment appropriately, and we don't want to over-index to one particular quarter in terms of vintage. As we noted, the mergers were a deleveraging event. And so as we look to redeploy capital, build back to our target leverage and thus full earnings capacity, we want to balance the risk of the -- market risk of the closed-end funds to also redeployment capacity as well as just exposure. And so I think that's kind of generally the overall sentiment.

是的，當然，肯。這些都是有一點的。我們希望適當地管理我們的部署，並且我們不想在年份方面過度關注某個特定的季度。正如我們所指出的，合併是一次去槓桿事件。因此，當我們尋求重新部署資本、恢復到目標槓桿率並實現全部盈利能力時，我們希望平衡封閉式基金的市場風險、重新部署能力和風險敞口。所以我認為這大致就是整體情緒。

We did -- when we started to sell these assets, we initially focused on the lowest yielding assets. So we were able to move those quickly and very efficiently. And so what we have in the book now has a better earnings capacity than the overall than the overall portfolio. And we'll continue to manage, you know, risk and earnings as we move forward over the next few quarters.

我們確實這樣做了——當我們開始出售這些資產時，我們最初關注的是收益最低的資產。因此我們能夠快速且有效率地移動它們。因此，我們現在帳面上的資產的獲利能力比整體投資組合要好。在接下來的幾個季度中，我們將繼續管理風險和收益。

And it, I'd make one quick addition to that, Ken. And at the risk of stating the obvious is within the pool of loans that came over, not surprisingly, certain of those loans that were loans or high-yield bonds had varying degrees of liquidity. And obviously, as we're evaluating the framework that Ted just alluded to, a lot of emphasis is obviously given to the level of liquidity in the underlying loan and making sure that the selling of that loan or bond would not catalyze a loss. And we're trying to be very deliberate in that regard as well.

而且，肯，我想對此做一點補充。顯而易見的是，在流入的貸款池中，其中一些貸款或高收益債券的流動性程度各不相同，這並不奇怪。顯然，當我們評估泰德剛才提到的框架時，我們顯然非常重視基礎貸款的流動性水平，並確保出售該貸款或債券不會導致損失。我們也正努力在這方面做到非常慎重。

Got you. Very helpful there. Thanks again.

明白了。非常有幫助。再次感謝。

Mark Hughes, Truist.

馬克·休斯，Truist。

Yeah, thank you. Good morning. Just looking at the direct origination commitments, I guess this is stated on the presentation, the average commitment size has been moving up the last few quarters. And I think you pointed out the net leverage for the loans this quarter is a little bit higher. Anything to see there? I know you're trying to kind of make that shift in assets expeditiously. Is that contributing to that evolution?

是的，謝謝。早安.僅從直接發起承諾來看，我猜這是在簡報中說明的，平均承諾規模在過去幾個季度一直在上升。我認為您指出了本季度貸款的淨槓桿率略高一些。那兒有啥可看的嗎？我知道你正試圖迅速完成資產轉移。這有助於進化嗎？

Yeah. I'd say really quickly is we did have knowledge of the merger closing and knowing that it was going to be a direct origination -- a deleveraging event. We obviously tried to over-index into the origination. And as you know or as we alluded to on the call -- in the prepared remarks, we were at [1.45] leverage going into this quarter.

是的。我想說的是，我們確實知道合併的結束，也知道這將是一個直接的起源──一個去槓桿事件。我們顯然試圖過度索引起源。如您所知，或正如我們在電話會議中提到的那樣 - 在準備好的評論中，我們進入本季度的槓桿率為 [1.45]。

Furthermore, what we saw was in -- certainly in the first part -- in Q2 and into the first part of this quarter was very healthy in terms of M&A or relatively healthy from the beginning of the year. And so there were also additional opportunities there.

此外，我們看到——當然在第一部分——在第二季度和本季上半部分，就併購而言非常健康，或者從年初開始就相對健康。因此那裡也存在額外的機會。

Just to take that one step further, we've seen somewhat of a reduced level of activity, perhaps in anticipation of the election. And anecdotally, we have heard that -- and do expect auction activity to pick up kind of post-election and as evidenced by the number of NDAs that we're signing, obviously, aided also by the rate cut that we saw in September. And while auction activity is expected to increase, obviously, that has a gestation period, so could drive deployment in the latter part of this quarter or kind of into 2025.

更進一步說，我們看到活動水準下降，也許是因為準備迎接選舉。據傳聞，我們聽說——並且確實預計拍賣活動將在選舉後有所回升，而且從我們簽署的保密協議數量就可以看出，這顯然也得益於 9 月份的降息。雖然拍賣活動預計會增加，但顯然這有一個醞釀期，因此可能會在本季後半段或 2025 年左右推動部署。

So overall, strong origination had to do with that kind of a good market, healthy M&A volumes in the Q2 and early Q3 period and are optimistic as we look at the growing pipeline into the back half of this quarter and into 2025.

因此，總體而言，強勁的發起與良好的市場、第二季和第三季初健康的併購量有關，我們對本季後半段以及 2025 年的成長管道感到樂觀。

And how about the spreads on the deals this quarter relative to last quarter? How do you see the competitive environment?

本季與上一季相比交易的利差如何？您如何看待競爭環境？

Yes. I think overall, the market has become more borrower friendly. If you look at where CLOs are pricing these days, you look at all the money that private capital is raising and -- on one hand. And then on the other hand, you see a slowdown in M&A activity, as Tanner mentioned, ahead of the election and anticipating rate cuts, you see the supply-demand imbalance kind of tilt in the borrower's favor.

是的。我認為總體而言，市場對借款人更加友善。如果你看看目前的 CLO 定價，你會發現私人資本正在籌集的所有資金——一方面。另一方面，正如坦納提到的那樣，你會看到併購活動放緩，在選舉前和預期降息的情況下，你會看到供需失衡向借款人傾斜。

And so we've certainly seen really starting in last December spread compression. The spreads were, I think, admittedly, and we and our peers, I think, all see this, spreads were really high relative to historical norms in 2023. And so they've been coming back in.

因此我們確實看到從去年 12 月開始利差壓縮。無可否認，我認為，我們和我們的同行都看到了這一點，相對於 2023 年的歷史標準，利差確實很高。所以他們又回來了。

Similarly, leverage in 2023 and the first part of '24 was well below where the historical norms are. And so what we're seeing now is more certainly borrower-friendly, a fair amount of competition out there. So the loans aren't as attractive as 2023 for sure, but still remain attractive on a historical basis. And frankly, when we think about where we sit competitively with the large universe of borrowers we have and the power of incumbency, we feel like we're in a good spot.

同樣，2023 年和 2024 年上半年的槓桿率也遠低於歷史標準。因此，我們現在看到的肯定是對借款人更友善的市場，存在相當程度的競爭。因此，這些貸款肯定不如 2023 年那麼有吸引力，但從歷史角度來看仍然具有吸引力。坦白說，當我們考慮到我們與龐大的借款人群體和現任權力之間的競爭地位時，我們覺得我們處於一個有利的位置。

Appreciate that. Thank you.

非常感謝。謝謝。

Matthew Hurwit, Jefferies.

傑富瑞 (Jefferies) 的馬修赫維特 (Matthew Hurwit)。

Hi guys. Congrats on the quarter and the close of the mergers. Can you -- not asking you to be an expert on politics or policy, but can you just talk about maybe your high-level thoughts about what the election could mean for your business or portfolio companies at this point?

嗨，大家好。恭喜本季及合併的完成。您能否—我不是想讓您成為政治或政策方面的專家，但您能否談談您對選舉對您目前的企業或投資組合公司意味著什麼的高層看法？

Yes, this is Howard. I think you've seen the forward curve move up. So that is probably the most sort of obvious indication of where the market thinks it's going, which is like a more benign regulatory environment and also -- and potentially more inflationary environment, which is why they think interest rates are going up.

是的，這是霍華德。我想您已經看到遠期曲線上升。因此，這可能是市場走向的最明顯的跡象，即更溫和的監管環境，以及潛在的通膨環境，這就是他們認為利率會上升的原因。

That generally -- it can cut both ways, but obviously, like that's a more growth backdrop for companies. And then the other part of it is just sort of like regulatory oversight. And obviously, like a change at the FTC, I think, changes sort of people's view of mergers probably -- or I don't even view of mergers, the practical implications of merging will change. So you would expect the deal flow to go up.

一般來說，這可能是有利有弊的，但顯然，這對公司來說是一個更大的成長背景。另一部分就像是監理監督。顯然，就像聯邦貿易委員會的變化一樣，我認為，這可能會改變人們對合併的看法——或者我甚至不認為合併的實際影響會改變。因此，你會預期交易量會增加。

So like those are probably the first order effects. Second, third, fourth order effects are hard to know. And obviously, specific companies have specific issues that come up as policies change.

所以這些可能是一階效應。第二、第三、第四階效應很難知道。顯然，隨著政策的變化，特定的公司會出現特定的問題。

And then just to add on to that, obviously, and much has been made of this is highly likely that the tariffs go up. And so when we think about our borrowers and by statute, we have to be US-based. So it's less an effect of the markets that they're selling into. But looking very critically at the supply chains of our underlying borrowers and making sure we integrate that into our underwriting framework is going to be of utmost importance as we evaluate the risk on our books and we evaluate new investment opportunities.

然後，顯然，需要補充的是，關稅很有可能上漲，這一點已經引起了廣泛關注。因此，當我們考慮我們的借款人時，根據法規，我們必須以美國為基地。因此，這不太受他們銷售市場的影響。但是，當我們評估帳簿上的風險和評估新的投資機會時，非常嚴格地審視我們基礎借款人的供應鏈並確保將其納入我們的承保框架是至關重要的。

Okay, thanks. That's great context. And then can I just ask the $0.10 unrealized and realized loss per share for the quarter. Can you maybe give some color on which portfolio companies drove that?

好的，謝謝。這是非常棒的背景。然後我可以問一下本季每股 0.10 美元的未實現損失和已實現損失嗎？您能否具體說明哪些投資組合公司推動了這個趨勢？

Sure. So the losses were -- and we have -- we think about the portfolio in a couple of different ways. One is what did we acquire from the closed-end funds. Those were largely flat. We did take a small loss, which on exiting some of the non-accrual status names. That was offset by gains and other sales.

當然。因此，損失是——而且我們已經——我們以幾種不同的方式來考慮投資組合。一是我們從封閉式基金中獲得了什麼。這些基本上是平的。我們確實遭受了小額損失，這是由於退出一些非應計狀態的名稱而造成的。這被收益和其他銷售所抵消。

We had a restructuring name where probably our -- one of our biggest losses was a company called AVAD, which we restructured. We went from preferred equity into a second lien. So we think overall, going from non-current income to current income and moving up the cap stack is very beneficial from an overall perspective.

我們有一個重組名稱，可能是我們最大的損失之一是一家名為 AVAD 的公司，我們對它進行了重組。我們從優先股變成了第二留置權。因此，我們認為總體而言，從非流動收入轉向流動收入並提高資本累積從整體角度來看是非常有利的。

However, in terms of getting out of the preferred equity security, we did have to realize a loss on that. And then a lot of the other loans were -- a lot of the other bigger movement names were names that are on our watch list or are going through a sales process. And we wanted to highlight the uncertainty of the outcome there and mark them down slightly.

然而，在退出優先股證券方面，我們確實必須意識到損失。然後很多其他貸款——很多其他較大的運動名稱都在我們的關註名單上或正在經歷銷售過程。我們希望強調結果的不確定性，並將其略微降低。

Thanks very much.

非常感謝。

(Operator Instructions) Paul Johnson, KBW.

(操作員指示) Paul Johnson, KBW。

Yeah, good morning. Thanks for taking my questions. My only question is just kind of, given the weakness in the stock during the quarter, post-closing the merger, a market that's been pretty competitive. Weighted average spread on investments 570 basis point or so.

是的，早安。感謝您回答我的問題。我唯一的問題是，考慮到本季股票的疲軟，合併後市場競爭非常激烈。投資加權平均利差約570個基點左右。

And your leverage is, is about as low as it's been in a while, obviously due to the closing of the merger. So can you just kind of expand on maybe your thoughts around the buyback? When you would look to potentially repurchase shares, if that's an option? Why not consider that here in this scenario with leverage you're looking to increase here in a pretty tight market.

而且您的槓桿率已經達到了近段時間以來的最低水平，這顯然是由於合併的完成。那麼能否詳細談談您對回購的想法？如果可以的話，您什麼時候會考慮回購股票？為什麼不考慮一下在這種情況下，在一個相當緊張的市場中，你希望增加槓桿？

So I think first of all, it's ironic because other questions were prior to the merger, why is your leverage so high. So -- but I would say like we have always said like we'll buy back stock when it's accretive versus other uses of the capital. The guideline we had given previously was around 0.8 was like price NAV was breakeven.

所以我認為首先，這很諷刺，因為其他問題都是在合併之前提出的，為什麼你的槓桿率這麼高。所以 — — 但我想說，就像我們一直說的那樣，當股票具有增值作用而不是用於其他資本用途時，我們會回購股票。我們之前給出的指導方針是 0.8 左右，就像價格資產淨值達到盈虧平衡一樣。

We think the stock price has traded down versus peers since the merger as people who can hold the stock have cleared out. So it's sort of -- I think that's an ongoing thing. And then the last thing I'll say is whatever you saw in the last quarter is not necessarily like indicative of whatever our strategy might be going forward because we were not open to sort of trade. And that has always been the case, like the window is not open a huge amount of the trading day during the quarter.

我們認為，自從合併以來，該股價格相對於同業有所下跌，因為持有該股的人已經撤離。所以這有點像是——我認為這是一件持續的事情。我最後要說的是，無論你在上個季度看到什麼，並不一定能表明我們未來的策略，因為我們對某種貿易並不開放。情況一直都是這樣的，就像在本季度，交易日的窗口並沒有打開很多。

So the answer is the same as it was before. I don't think it changes based on sort of where our leverage is. When we have available capital, we weigh the options. But we also think having available capital is a strength, and it is one that was always pointed out to us as a strength that we could use. So now we have it.

所以答案和以前一樣。我認為它不會根據我們的槓桿作用而改變。當我們有可用資本時，我們會權衡各種選擇。但我們也認為擁有可用資本是一種優勢，而且我們也一直有人指出我們可以利用這個優勢。現在我們有了它。

Got it. And does -- I mean, does the relationship change to where you would potentially look to buy back, I mean, kind of that breakeven price? I mean, how does that change in relation to just overall market returns, putting that into context of the 100, 150 basis points or so spread compression we've seen this year?

知道了。而且──我的意思是，這種關係是否會發生變化，從而有可能尋求回購，也就是損益平衡價格？我的意思是，相對於整體市場回報而言，這種情況會如何變化，將其置於我們今年看到的 100、150 個基點左右的利差壓縮的背景下？

Yeah. Look, I mean, obviously, like there's lots of inputs. Cost of debt is going down, too. So like lots of things play into it. Obviously, if long term, we thought all senior loans were going to be at $400 million over, there would be a different calculus. There would also be a different expectation for ROE across the whole market from people.

是的。看，我的意思是，顯然有很多輸入。債務成本也在下降。因此有很多因素都會影響它。顯然，如果從長遠來看，我們認為所有優先貸款都將超過 4 億美元，那麼計算方法就會有所不同。人們對整個市場的 ROE 的預期也會有所不同。

So that balance -- but remember, like there's been a 150-basis point decline in spreads, but that followed a 150 basis point increase in spreads just prior to that. So like it's -- you don't want to react to where you think spreads are on that day. It's where you think the spreads are over the cycle.

因此，這種平衡——但請記住，利差已經下降了 150 個基點，但在此之前，利差已經上升了 150 個基點。就像這樣——你不想對你認為的當天利差做出反應。您認為這就是周期內的利差。

I appreciate that. That's all the questions for me. Congrats on the good quarter guys. Thanks.

我很感激。這就是我要問的全部問題了。恭喜大家本季取得了良好的成績。謝謝。

Thank you. And there are no further questions at this time. I'll turn the call to management for any closing remarks.

謝謝。目前沒有其他問題。我將請管理階層做最後發言。

Thank you, operator. Thank you, everyone, for listening to today's call. On behalf of the entire team, we thank you for your time today. Please feel free to reach out to us if you have any other questions, and have a good day.

謝謝您，接線生。感謝大家聆聽今天的電話會議。我代表整個團隊感謝您今天抽出時間。如果您還有其他問題，請隨時與我們聯繫，並祝您有美好的一天。

Thank you. This does conclude today's program. Thank you for your participation. You may disconnect at any --

謝謝。今天的節目到此結束。感謝您的參與。您可以隨時斷開連線--