PhenixFIN Corp (PFX) 2019 Q2 法說會逐字稿

Welcome, and thank you for joining the Medley Capital Corporation's Fiscal Second Quarter 2019 Conference Call.

歡迎並感謝您參加 Medley Capital Corporation 2019 財年第二季電話會議。

The company would like to remind everyone that today's call is being recorded. Please note that this call is the property of Medley Capital Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone numbers and PIN provided in the company's earnings press release.

公司謹提醒大家，今天的通話正在錄音。請注意，本次通話歸 Medley Capital Corporation 所有，嚴禁以任何形式未經授權播放此通話。透過使用公司收益新聞稿中提供的電話號碼和 PIN 碼，可以收聽電話會議的音訊重播。

(Operator Instructions) Participating on the call today from Medley Capital Corporation are Brook Taube, CEO; Rick Allorto, CFO; Dean Crowe, Head of Investing; and Sam Anderson, Head of Capital Markets.

（操作員指示）今天參加 Medley Capital Corporation 電話會議的有執行長 Brook Taube；財務長 Rick Allorto； Dean Crowe，投資主管；以及資本市場主管 Sam Anderson。

Before we begin, the company would like to call your attention to the customary safe harbor disclosure in the company's press release regarding forward-looking information. Today's conference call may also include forward-looking statements and projections, which are subject to risks and uncertainties.

在我們開始之前，公司想提請您注意公司新聞稿中有關前瞻性資訊的常規安全港披露。今天的電話會議還可能包括前瞻性陳述和預測，這些陳述和預測受風險和不確定性的影響。

Any statement other than a statement of historical fact may constitute a forward-looking statement. Please note that the company's actual results could differ materially from those expressed by any forward-looking statements for any reasons such as those disclosed in the company's most recent filings with the SEC.

除歷史事實陳述之外的任何陳述都可能構成前瞻性陳述。請注意，由於公司最近向美國證券交易委員會提交的文件中披露的原因等原因，公司的實際結果可能與任何前瞻性陳述所表達的結果有重大差異。

The company does not undertake to update their forward-looking statements unless required by law.

除非法律要求，否則公司不承諾更新其前瞻性陳述。

To update (sic - obtain) copies of the company's latest SEC filings and press release, please visit the company's website at www.medleycapitalcorp.com.

要更新（原文如此 - 取得）該公司最新的 SEC 文件和新聞稿的副本，請造訪本公司網站 www.medleycapitalcorp.com。

In addition, the company's fiscal second quarter 2019 investor presentation is available in the Investor Relations section in the Events/Investor Presentations section of the company's website.

此外，該公司 2019 財年第二季的投資者介紹可在公司網站活動/投資者介紹部分的投資者關係部分查閱。

During the call, the company may make statements regarding the proposed merger of the companies, Sierra and MDLY. The company encourages you to carefully read the proxy statement filed with the SEC by the company on December 21, 2018, as well as any amendments or supplements to these documents and the company's other SEC filings in their entirety because they contain important information about the companies, Sierra and MDLY, the proposed transactions and related matters.

在電話會議期間，該公司可能會就 Sierra 和 MDLY 兩家公司擬議的合併發表聲明。本公司鼓勵您仔細閱讀本公司於2018年12月21日向SEC提交的代理聲明以及對這些文件的任何修改或補充以及公司向SEC提交的其他文件的全部內容，因為它們包含有關公司、Sierra和MDLY、擬議交易和相關事項的重要資訊。

I would now like to turn the call over to Mr. Brook Taube.

現在我想將電話轉給布魯克·陶布先生。

Thank you, operator, and welcome, everyone, to Medley Capital Corporation's quarterly earnings call. On Friday evening, we announced our financial results for the quarter ended March 31, 2019.

謝謝接線員，歡迎大家參加 Medley Capital Corporation 的季度財報電話會議。週五晚上，我們公佈了截至 2019 年 3 月 31 日的季度財務業績。

We reported net investment income of $0.01 per share when adjusted for certain merger-related expenses. We also reported net asset value per share of $5.11. The decline in NAV was split with $0.25 due to certain credit marks and separately $0.21 due to merger-related expense, including litigation costs as well as $0.05 due to a dividend payment in excess of NII for the period. I'd just point out that the NAV per share would have been $5.32 if adjusted for the merger-related items, including litigation.

經調整某些合併相關費用後，我們報告的淨投資收益為每股 0.01 美元。我們也報告每股淨資產價值為 5.11 美元。NAV 的下降分為以下三部分：由於某些信用標記導致的 0.25 美元下降；由於合併相關費用（包括訴訟費用）導致的 0.21 美元下降；以及由於該期間股息支付超過 NII 導致的 0.05 美元下降。我只是想指出，如果根據包括訴訟在內的合併相關項目進行調整，每股淨值將達到 5.32 美元。

Our Board of Directors did not declare a dividend for the quarter that ended on March 31.

我們的董事會並未宣布截至 3 月 31 日的季度派發股息。

I'd like to provide a brief update on the previously announced mergers between MCC and Sierra and the acquisition of MDLY by Sierra. On April 18, the shareholder vote related to the announced merger was postponed. At this point, the merger agreements have not been terminated, and the company continues to pursue necessary amendments to the merger agreement for it to proceed.

我想簡要介紹一下先前宣布的 MCC 與 Sierra 的合併以及 Sierra 對 MDLY 的收購。4月18日，與宣布的合併相關的股東投票被推遲。目前，合併協議尚未終止，公司正在繼續對合併協議進行必要的修改以使其能夠繼續進行。

Turning now to investing and a quick update on the portfolio. During the quarter, MCC invested $13.3 million in existing borrowers and just under $27 million, the majority of which to new borrowers within our senior loan joint venture.

現在來談談投資以及投資組合的快速更新。本季度，MCC 向現有借款人投資了 1,330 萬美元，向高級貸款合資企業內的新借款人投資了近 2,700 萬美元。

As discussed in previous quarters, we are targeting investment opportunities that protect downside, generate durable income in a rising rate environment. Again, we're primarily focused now on larger sponsor-backed borrowers that are well capitalized, have sensible structures and attractive deal terms. As we sit here today, the MCC portfolio consists of just over $610 million in assets.

正如前幾季所討論的，我們瞄準的是能夠在利率上升的環境下保護下行風險、產生持久收入的投資機會。再次強調，我們現在主要關注資金充足、結構合理且交易條款有吸引力的大型發起人支持的借款人。截至今天，MCC 的投資組合資產總額剛超過 6.1 億美元。

I'd like to turn the call over now to Rick Allorto, our Chief Financial Officer, to review the quarterly results.

現在我想將電話轉給我們的財務長 Rick Allorto 來回顧季度業績。

Thank you, Brook. For the 3 months ended March 31, the company reported a net investment loss of $10.6 million or $0.19 per share and a net loss of $24.6 million or $0.45 per share. Net investment income per share was $0.01 after adjusting for merger-related expenses. The net asset value per share was $5.11 at March 31 compared to $5.61 at December 31.

謝謝你，布魯克。截至 3 月 31 日的三個月，該公司報告淨投資損失為 1,060 萬美元或每股 0.19 美元，淨虧損為 2,460 萬美元或每股 0.45 美元。調整合併相關費用後每股淨投資收益為 0.01 美元。3 月 31 日每股淨資產價值為 5.11 美元，而 12 月 31 日每股淨資產價值為 5.61 美元。

For the quarter, total investment income was $12.6 million and was comprised of $10.3 million of interest income, $2 million of dividend income and $0.3 million of fee income.

本季度，總投資收入為 1,260 萬美元，其中包括 1,030 萬美元的利息收入、200 萬美元的股息收入和 30 萬美元的費用收入。

For the quarter, total operating expenses were $23.2 million, consisting of $3.1 million in base management fees, $5.9 million in interest and financing expenses and $10.2 million in professional fees, and finally, $4 million of administrator and general administrative expenses.

本季度，總營運費用為 2,320 萬美元，其中包括 310 萬美元的基本管理費、590 萬美元的利息和融資費用、1,020 萬美元的專業費用，以及 400 萬美元的管理員和一般行政費用。

Included in the $10.2 million of professional fees were $8.5 million of expenses related to the Delaware litigation and $1 million of expenses related to the pending merger. The company is seeking reimbursement under its insurance coverage for the $8.5 million of litigation-related expenses and any reimbursements will be netted against the expense.

1020 萬美元的專業費用包括 850 萬美元與特拉華州訴訟相關的費用和 100 萬美元與待決合併相關的費用。該公司正在根據其保險範圍尋求報銷 850 萬美元的訴訟相關費用，任何報銷金額都將抵消該費用。

For the quarter, the company reported net unrealized depreciation of $3.4 million and a net realized loss of $10.6 million.

本季度，該公司報告淨未實現折舊為 340 萬美元，淨實現虧損為 1,060 萬美元。

As of March 31, the company's total debt outstanding equaled approximately $407 million, including $272 million in notes payable and $135 million of SBA debentures. The company's debt-to-equity ratio, excluding SBIC debt, was 0.95x at March 31. Post quarter end, the $135 million of SBA debentures outstanding as of March 31 have been fully repaid.

截至 3 月 31 日，該公司未償還債務總額約為 4.07 億美元，其中包括 2.72 億美元的應付票據和 1.35 億美元的 SBA 債券。截至 3 月 31 日，該公司的負債權益比率（不包括 SBIC 負債）為 0.95 倍。季度結束後，截至 3 月 31 日未償還的 1.35 億美元 SBA 債券已全部償還。

That concludes my financial review. I'll now turn the call back over to Brook.

我的財務審查到此結束。我現在將電話轉回給布魯克。

Thanks, Rick, and thank you all for your time today. Our team remains committed to growing the existing business, and we at management do look forward to a successful path for the announced merger plans.

謝謝，里克，也謝謝大家今天抽出時間。我們的團隊仍然致力於發展現有業務，我們管理層也期待宣布的合併計劃能夠取得成功。

Operator, we can now open the call for questions.

接線員，我們現在可以開始提問了。

(Operator Instructions) Okay. And I'd like to turn the call back over to Brook Taube for closing remarks.

（操作員指令）好的。我想將電話轉回給布魯克陶布 (Brook Taube) 做最後發言。

Thank you, operator. Again, thanks everybody for their support. We are available to answer questions if people have questions following up. And again, as I mentioned, we at management continue to grow our business and look forward to a pathway for the proposed merger plans. Look forward to speaking to you next quarter. Thanks very much.

謝謝您，接線生。再次感謝大家的支持。如果大家有後續問題，我們會隨時解答。正如我再次提到的，我們管理層將繼續發展我們的業務，並期待擬議的合併計劃的實施。期待下個季度與您交談。非常感謝。

Ladies and gentlemen, thank you for your participation in today's conference. This concludes the program. You may now disconnect. Everyone, have a great day.

女士們、先生們，感謝大家參加今天的會議。本節目到此結束。您現在可以斷開連線。祝大家有個愉快的一天。