Prospect Capital Corp (PSEC) 2023 Q4 法說會逐字稿

Hello, and welcome to Prospect Capital's Fourth Quarter Fiscal Year 2023 Earnings Release and Conference Call. (Operator Instructions)

您好，歡迎參加 Prospect Capital 2023 財年第四季度收益發布和電話會議。 （操作員說明）

I would now like to turn the conference over to John Barry, Chairman and CEO. Please go ahead.

現在我想將會議交給董事長兼首席執行官約翰·巴里 (John Barry)。請繼續。

Thank you, MJ. Joining me on the call today are Grier Eliasek, our President and Chief Operating Officer; and Kristin Van Dask, our Chief Financial Officer. Kristin?

謝謝你，喬丹。今天與我一起參加電話會議的是我們的總裁兼首席運營官 Grier Eliasek；以及我們的首席財務官 Kristin Van Dask。克里斯汀？

Thanks, John. This call is the property of Prospect. Unauthorized use is prohibited. This call contains forward-looking statements that are intended to be subject to safe harbor protection. Actual developments and results are highly likely to vary materially, and we do not undertake to update our forward-looking statements unless required by law. For additional disclosure, see our earnings release filed previously and available on our website, prospectstreet.com.

謝謝，約翰。該電話是 Prospect 的財產。禁止未經授權使用。本次電話會議包含旨在受到安全港保護的前瞻性陳述。實際發展和結果很可能存在重大差異，除非法律要求，否則我們不承諾更新我們的前瞻性陳述。如需更多披露信息，請參閱我們之前提交的收益報告，並可在我們的網站prospecttreet.com上獲取。

Now I'll turn the call back over to John.

現在我將把電話轉回給約翰。

Thank you, Kristin. In the June quarter, our net investment income, or NII, was $112.8 million. Our basic NII of $0.23 per common share, exceeding our distribution rate per common share by $0.05. Our basic net investment income coverage of our common distribution is now 128%. Our annualized basic NII yield is 10% on a book basis and 15.3% based on our August 25 stock price close.

謝謝你，克里斯汀。在六月季度，我們的淨投資收入 (NII) 為 1.128 億美元。我們的基本 NII 為每股普通股 0.23 美元，比我們每股普通股的分配率高出 0.05 美元。我們共同分配的基本淨投資收益覆蓋率目前為 128%。我們的年化基本 NII 收益率按賬面計算為 10%，根據 8 月 25 日收盤價計算為 15.3%。

Our NAV stood at $9.24 per common share in June, down $0.24 or 2.5% from the prior quarter, largely due to unrealized mark-to-market depreciation. On the cash shareholder distribution front, we are pleased to report the Board's declaration of continued steady monthly distributions.

6 月份，我們的資產淨值為每股普通股 9.24 美元，比上一季度下降 0.24 美元，即 2.5%，這主要是由於未實現的按市值計價的折舊。在現金股東分配方面，我們很高興地報告董事會宣布繼續穩定的每月分配。

We are announcing monthly cash common shareholder distributions of $0.06 per share for each of September and October. These 2 months represent the 73rd and 74th consecutive $0.06 per share cash distributions. Consistent with past practice, we plan on announcing our next set of shareholder distributions in November.

我們宣布 9 月和 10 月每月現金普通股股東分配為每股 0.06 美元。這兩個月是連續 73 次和 74 次每股 0.06 美元的現金分配。與過去的做法一致，我們計劃在 11 月份宣布下一組股東分配。

Since October 2017, our NII per common share was preferred dividends has aggregated $4.63, while our common shareholder distributions per common share have aggregated $4.14. With our NII exceeding distributions during this period by $0.49 per share and representing 112% coverage.

自 2017 年 10 月以來，我們每股普通股的 NII 優先股股息總計為 4.63 美元，而我們每普通股的普通股股東分配總計為 4.14 美元。在此期間，我們的 NII 超出每股分配 0.49 美元，覆蓋率達 112%。

Thank you. I'll now turn the call over to Grier.

謝謝。我現在將把電話轉給格里爾。

Thank you, John. Our scale platform with over $8.8 billion of assets and undrawn credit at Prospect Capital Corporation continues to deliver solid performance in the current dynamic environment.

謝謝你，約翰。 Prospect Capital Corporation 擁有超過 88 億美元的資產和未提取信貸的規模平台，在當前的動態環境中繼續提供穩健的業績。

Our experienced team consists of over 130 professionals, representing one of the largest middle market investment groups in the industry. With our scale, longevity, experience and deep bench, we continue to focus on a diversified investment strategy that spans third-party private equity sponsor-related lending, direct non-sponsor lending, prospect sponsored operating and financial buyouts, structured credit, and real estate yield investing.

我們經驗豐富的團隊由 130 多名專業人士組成，代表著業內最大的中間市場投資集團之一。憑藉我們的規模、悠久的歷史、經驗和深厚的基礎，我們繼續專注於多元化的投資策略，涵蓋第三方私募股權發起人相關貸款、直接非發起人貸款、潛在客戶發起的運營和金融收購、結構性信貸和實體貸款。房地產收益投資。

Since inception in 2004, Prospect has invested $20.2 billion across 418 investments, exiting 279 of those investments. Consistent with past cycles, we expect during the next downturn to see an increase in secondary opportunities, coupled with wider spread primary opportunities with a pullback from other investment groups, particularly highly leveraged ones.

自 2004 年成立以來，Prospect 已在 418 項投資中投資了 202 億美元，其中退出了 279 項投資。與過去的周期一致，我們預計在下一次經濟低迷期間，二次投資機會將會增加，同時主要投資機會也會擴大，而其他投資集團（尤其是高槓桿投資集團）也會出現撤退。

Unlike many other groups, we maintained and continue to maintain significant dry powder and balance sheet flexibility that we expect will enable us to capitalize on such attractive opportunities as they arise.

與許多其他集團不同，我們保持並將繼續保持顯著的干粉和資產負債表靈活性，我們預計這將使我們能夠利用這些有吸引力的機會。

Over the past 5 years, other BDCs have increased leverage with a typical listed BDC now at 124% debt to total equity or approximately 75 percentage points higher than for Prospects, running at less than half the debt leverage to the rest of the industry, Prospect has not increased debt leverage, instead electing lower risk from lower debt leverage with a cautious approach given macro dynamics.

在過去5 年中，其他BDC 的槓桿率有所提高，典型的上市BDC 目前債務佔總股本的比例為124%，比Prospects 高出約75 個百分點，其債務槓桿率還不到行業其他公司的一半。並沒有提高債務槓桿，而是在宏觀動態下謹慎選擇降低債務槓桿以降低風險。

Our diversity of origination approaches allows us to source a broad range and high volume of opportunities, then select in a disciplined bottoms-up manner, the opportunities we deem to be the most attractive on a risk-adjusted basis. Our team typically evaluates thousands of opportunities annually and invest in a disciplined manner in a low single-digit percentage of such opportunities.

我們多樣化的發起方法使我們能夠尋找廣泛且大量的機會，然後以嚴格的自下而上的方式選擇我們認為在風險調整的基礎上最具吸引力的機會。我們的團隊通常每年評估數千個機會，並以嚴格的方式對此類機會中較低的個位數百分比進行投資。

Our nonbank structure gives us the flexibility to invest in multiple levels of the corporate capital stack, with a preference for secured lending and senior loans. Consistent with our investment strategy, our secured lending and first lien mix has continued to increase.

我們的非銀行結構使我們能夠靈活地投資於多個層面的企業資本結構，並優先考慮擔保貸款和高級貸款。與我們的投資策略一致，我們的擔保貸款和第一留置權組合持續增加。

As of June 2023, our portfolio at fair value comprised 56.5% first lien debt. That's up 2.1% from the prior quarter, 16.4%, second lien debt, that's down 1.2% from the prior quarter, 8.6% subordinated structured notes with underlying secured first lien collateral, down 0.6% from the prior quarter and 18.5% unsecured debt and equity investments, down 0.3% from the prior quarter. Resulting in 81.5% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral. That's up 0.3% from the prior quarter.

截至 2023 年 6 月，我們按公允價值計算的投資組合包含 56.5% 的第一留置權債務。較上季度增長2.1%，第二留置權債務為16.4%，較上季度下降1.2%，帶有基礎有擔保第一留置權抵押品的次級結構性票據為8.6%，較上季度下降0.6% ，無擔保債務為18.5%，股權投資環比下降0.3%。因此，我們 81.5% 的投資是帶有受益於借款人質押抵押品的基礎擔保債務的資產。比上一季度增長 0.3%。

Prospect's approach is one that generates attractive risk-adjusted yields. And our performing interest-bearing investments were generating an annualized yield of 13.3% as of June. That's an increase of 0.1 percentage points from the prior quarter, as we continue to benefit from increases in short-term rates. We also hold equity positions in certain investments that can act as yield enhancers or capital gains contributors as such positions generate distributions.

Prospect 的方法能夠產生有吸引力的風險調整收益。截至 6 月份，我們的計息投資的年化收益率為 13.3%。這比上一季度增加了 0.1 個百分點，因為我們繼續受益於短期利率的上漲。我們還持有某些投資的股權頭寸，這些投資可以作為收益增強劑或資本收益貢獻者，因為此類頭寸會產生分配。

We've continued to prioritize senior and secured debt with our originations to protect against downside risk, while also achieving above-market yields through credit selection discipline and a differentiated origination approach.

我們繼續優先考慮我們的發起債務和擔保債務，以防範下行風險，同時通過信貸選擇紀律和差異化發起方法實現高於市場的收益率。

As of June, we held 130 portfolio companies, which is an increase of 3 from the prior quarter at a fair value of $7.7 billion, an increase of approximately $132 million. We also continued to invest in a diversified fashion across many different portfolio company industries with a preference for avoiding cyclicality and with no significant industry concentration. The largest is 18.6%.

截至6月，我們持有130家投資組合公司，比上季度增加3家，公允價值為77億美元，增加約1.32億美元。我們還繼續以多元化的方式投資於許多不同的投資組合公司行業，傾向於避免週期性且行業集中度不高。最大的是18.6%。

As of June, our asset concentration in the energy industry stood at 1.6% and in the hotel, restaurant and leisure sector, 0.3%; and the retail industry 0.3%. Nonaccruals as a percentage of total assets stood at approximately 1.1% in June, up 0.9% from the prior quarter. Our weighted average middle market portfolio net leverage stood at 5.2x EBITDA, substantially below our reporting peers. Our weighted average EBITDA per portfolio company stood at $113 million.

截至6月，我們在能源行業的資產集中度為1.6%，在酒店、餐飲和休閒行業為0.3%；零售業0.3%。 6 月份非應計費用佔總資產的比例約為 1.1%，較上季度上升 0.9%。我們的加權平均中間市場投資組合淨槓桿率為 5.2 倍 EBITDA，遠低於我們報告的同行。我們每家投資組合公司的加權平均 EBITDA 為 1.13 億美元。

Originations in the June quarter aggregated $372 million. We also experienced $122 million of repayments, sales and exits, further validating our capital preservation objective and resulting in net originations of $250 million. As we continue to take a cautious approach toward new credit underwriting given macroeconomic conditions.

六月季度的發起總額為 3.72 億美元。我們還經歷了 1.22 億美元的還款、出售和退出，進一步驗證了我們的資本保值目標，並產生了 2.5 億美元的淨發起額。鑑於宏觀經濟條件，我們繼續對新信貸承保採取謹慎態度。

During the June quarter, our originations comprised 69% middle-market lending, 18% real estate, 10.2% middle-market lending and buyouts, and 2.7% structured notes. To date, we've deployed significant capital in the real estate arena through our private REIT strategy, largely focused on multi-family workforce, stabilized yield acquisitions. And in the past year, and expansion into senior living, with attractive in-place 5- to 12-year financing.

在第二季度，我們的發行包括 69% 的中間市場貸款、18% 的房地產、10.2% 的中間市場貸款和收購以及 2.7% 的結構性票據。迄今為止，我們已通過私人房地產投資信託基金戰略在房地產領域部署了大量資本，主要關注多戶勞動力和穩定收益的收購。在過去的一年裡，我們又擴展到老年生活領域，並提供了有吸引力的 5 至 12 年就地融資。

To date, on a cumulative basis, we've acquired nearly $4 billion in 105 properties across multi-family, which are 81 properties; student housing, 8 properties; self-storage, 12 properties and senior living 4 properties. In the current higher financing cost environment, we're focusing on preferred equity structures with significant third-party capital support underneath our investment attachment points.

迄今為止，我們已累計收購了 105 處多戶房產（其中 81 處房產），價值近 40 億美元；學生宿舍，8處房產；自助倉儲、12 處房產和 4 處高級住宅房產。在當前較高的融資成本環境下，我們專注於優先股權結構，並在我們的投資附著點下提供大量第三方資本支持。

NPRC, our private REIT, has real estate properties that have benefited over the last several years and more recently from rising rents, showing the inflation hedge nature of this business segment, strong occupancies, high collections, suburban work-from-home dynamics, high-returning value-added renovation programs and attractive financing recapitalizations, resulting in an increase in cash yields as a validation of this income growth business alongside our corporate credit businesses.

NPRC，我們的私人房地產投資信託基金，擁有的房地產在過去幾年中受益，最近受益於租金上漲，顯示了該業務部門的通脹對沖性質，入住率強勁，收藏量高，郊區在家工作動態，高-返回增值改造計劃和有吸引力的融資資本重組，導致現金收益率增加，作為收入增長業務以及我們的企業信貸業務的驗證。

NPRC as of June, and not including partially exited deals where we have received back more than our capital invested from distributions and recapitalization has exited completely 45 properties at an average net realized IRR to NPRC of 25.2%, an average realized cash multiple of invested capital of 2.5x, with an objective to redeploy capital into new property acquisitions, including with repeat property manager relationships.

截至6 月，NPRC 已完全退出45 處房產，不包括部分退出的交易，其中我們從分配和資本重組中收回的投資金額超過了我們的投資資本，NPRC 的平均已實現IRR 淨值為25.2%，即投資資本的平均已實現現金倍數2.5 倍，目標是將資本重新部署到新的物業收購中，包括與重複的物業經理關係。

Our structured credit business has delivered attractive cash yields, demonstrating the benefits of pursuing majority stakes, working with world-class management teams, providing strong collateral underwriting through primary issuance and focusing on favorable risk-adjusted opportunities.

我們的結構性信貸業務帶來了有吸引力的現金收益率，展示了追求多數股權、與世界一流的管理團隊合作、通過首次發行提供強大的抵押品承銷以及專注於有利的風險調整機會的好處。

As of June, we held $665 million across 35 nonrecourse subordinated structured notes investments. We've maintained a relatively static size for our subordinated structured notes portfolio on a dollar basis, electing to grow our other investment strategies and resulting in the structured notes portfolio now comprising less than 9% of our investment portfolio. These underlying structured credit portfolios comprised more than 1,600 loans.

截至 6 月，我們持有 35 項無追索權次級結構性票據投資，金額達 6.65 億美元。我們的次級結構性票據投資組合以美元為基礎保持相對靜態的規模，選擇發展我們的其他投資策略，導致結構性票據投資組合目前占我們投資組合的比例不到 9%。這些基礎結構性信貸投資組合包括 1,600 多筆貸款。

In the June quarter, this portfolio generated a GAAP yield of 12.8%, down 1% from the prior quarter. As of June, our current subordinated structured credit portfolio has generated $1.5 billion in cumulative cash distributions to us, representing approximately 113% of our original investment. Through June, we've also exited 13 investments with an average realized IRR of 14% and cash-on-cash multiple of 1.4x.

在六月季度，該投資組合的 GAAP 收益率為 12.8%，比上一季度下降 1%。截至 6 月，我們當前的次級結構性信貸投資組合已為我們帶來了 15 億美元的累計現金分配，約占我們原始投資的 113%。截至 6 月份，我們還退出了 13 項投資，平均實現 IRR 為 14%，現金現金倍數為 1.4 倍。

Our subordinated structured credit portfolio consists entirely of majority-owned positions. Such positions can enjoy significant benefits compared to minority holdings in the same tranche. In many cases, we received fee rebates because of our majority position. As majority holder, we control the ability to call a transaction in our sole discretion in the future, and we believe such options add substantial value to our portfolio.

我們的次級結構性信貸投資組合完全由多數股權組成。與同一批次的少數股權相比，此類職位可以享受顯著的好處。在許多情況下，我們因為我們的多數地位而獲得費用回扣。作為多數股東，我們控制著未來自行決定進行交易的能力，我們相信此類選擇可以為我們的投資組合帶來巨大的價值。

We have the option of waiting years to call a transaction in an optimal fashion rather than when loan asset valuations might be temporarily low. We as majority investor can refinance liabilities on more advantageous terms, remove bond baskets in exchange for better terms from debt investors in the deal and extend or reset the investment period to enhance value. We've completed 32 refinancings and resets since December of 2017 over 6 years ago.

我們可以選擇等待數年以最佳方式進行交易，而不是在貸款資產估值可能暫時較低的情況下進行。作為主要投資者，我們可以以更優惠的條件對負債進行再融資，移除債券籃子以換取交易中債務投資者更好的條件，並延長或重置投資期限以提高價值。自 2017 年 12 月以來，六年多來，我們已完成 32 次再融資和重置。

So far in the current September 2023 quarter, across our overall business, we booked $53 million in originations and experienced $59 million of repayments and sales for about $6 million of net repayments and sales. Our originations have consisted of 59% real estate and 41% middle-market lending.

到目前為止，在2023 年9 月的季度中，在我們的整體業務中，我們預訂了5300 萬美元的原始資金，並經歷了5900 萬美元的還款和銷售，淨還款和銷售約為600萬美元。我們的業務包括 59% 的房地產業務和 41% 的中間市場貸款業務。

Thank you. I'll now turn the call over to Kristin. Kristin?

謝謝。我現在將把電話轉給克里斯汀。克里斯汀？

Thanks, Grier. We believe our prudent leverage, diversified access to matched-book funding, substantial majority of unencumbered assets, weighting toward unsecured fixed rate debt, avoidance of unfunded asset commitments and lack of near-term maturities demonstrate both balance sheet strength as well as substantial liquidity to capitalize on attractive opportunities. Our company has locked in a ladder of liabilities extending 29 years into the future.

謝謝，格里爾。我們相信，我們審慎的槓桿率、多元化的匹配賬簿融資渠道、絕大多數無負擔資產、偏向無擔保固定利率債務、避免無資金支持的資產承諾以及缺乏短期到期日，都表明資產負債表實力以及充足的流動性利用有吸引力的機會。我們公司已經鎖定了未來 29 年的負債階梯。

Our total unfunded eligible commitments to portfolio companies totals approximately $48 million, representing approximately 0.6% of our assets. Our combined balance sheet cash and undrawn revolving credit facility commitments currently stand at over $983 million.

我們對投資組合公司的無資金合格承諾總額約為 4800 萬美元，約占我們資產的 0.6%。目前，我們的資產負債表現金和未提取的循環信貸額度承諾合計超過 9.83 億美元。

We are a leader and innovator in our marketplace. We were the first company in our industry to issue a convertible bond, develop a notes program, issue under a bond and equity ATM, acquire another BDC and many other list of first. In 2020, we also added our programmatic perpetual preferred issuance to that list of first. Followed in 2021 by our listed perpetual preferred as another first in the industry.

我們是市場的領導者和創新者。我們是業內第一家發行可轉換債券、開發票據計劃、在債券和股票 ATM 下發行、收購另一個 BDC 以及許多其他第一名的公司。 2020 年，我們還將程序化永久優先發行添加到了第一個列表中。 2021 年，我們上市的永續優先股成為行業內的又一個第一。

Shareholders and unsecured creditors alike should appreciate the thoughtful approach differentiated in our industry, which we have taken toward construction of the right-hand side of our balance sheet.

股東和無擔保債權人都應該欣賞我們行業中獨特的深思熟慮的方法，我們為構建資產負債表的右側而採取了這種方法。

As of June 2023, we held approximately $4.8 billion of our assets as unencumbered assets, representing approximately 61% of our portfolio. The remaining assets are pledged to Prospect Capital Funding, a nonrecourse SPV, where in September 2022, we completed an upsizing, an extension of our revolver to a refreshed 5-year maturity.

截至 2023 年 6 月，我們持有約 48 億美元的資產作為未支配資產，約占我們投資組合的 61%。剩餘資產被質押給 Prospect Capital Funding，這是一家無追索權 SPV，我們於 2022 年 9 月完成了規模擴大，將我們的循環期限延長至更新的 5 年期。

We currently have $1.93 billion of commitments from 53 banks, an increase of 11 lenders from August 2022 and demonstrating strong support of our company from the lender community with the diversity unmatched by any other company in our industry.

目前，我們已獲得 53 家銀行的 19.3 億美元承諾，比 2022 年 8 月增加了 11 家貸方，這證明了貸方社區對我們公司的大力支持，其多樣性是業內任何其他公司無法比擬的。

Shortly after the well-publicized bank failures in March, we added 2 new banks and upsized an existing bank within our credit facility. The facility revolves until September 2026, followed by a year of amortization with interest distributions continuing to be allowed to us. Our drawn pricing is now SOFR plus 2.05%.

3 月份廣為人知的銀行倒閉事件發生後不久，我們新增了 2 家銀行，並在我們的信貸額度內擴大了一家現有銀行的規模。該貸款期限至 2026 年 9 月，隨後一年的攤銷，我們繼續允許進行利息分配。我們的定價現在是 SOFR 加 2.05%。

Outside of our revolver and benefiting from our unencumbered assets, we've issued at Prospect Capital Corporation, including in the past few years, multiple types of investment-grade unsecured debt including convertible bonds, institutional bonds, baby bonds and program notes. All of these types of unsecured debt have no financial covenants, no asset restrictions and no cross defaults with our revolver.

除了我們的左輪手槍和受益於我們的未支配資產之外，我們在Prospect Capital Corporation 發行了多種類型的投資級無擔保債務，包括在過去幾年中，包括可轉換債券、機構債券、嬰兒債券和計劃票據。所有這些類型的無擔保債務都沒有財務契約，沒有資產限制，也沒有與我們的左輪手槍交叉違約。

We enjoy an investment-grade BBB- rating from S&P, an investment-grade Baa3 rating from Moody's, an investment-grade BBB- rating from Kroll, and investment-grade BBB rating from Egan-Jones, and an investment-grade BBB low rating from DBRS. In 2021, we received the latter investment-grade rating, taking us to 5 investment-grade ratings more than any other company in our industry. All of these ratings have stable outlooks.

我們享有標準普爾投資級 BBB- 評級、穆迪投資級 Baa3 評級、Kroll 投資級 BBB- 評級、Egan-Jones 投資級 BBB 評級以及投資級 BBB 低評級來自 DBRS。 2021 年，我們獲得了後者的投資級評級，使我們比業內任何其他公司多了 5 個投資級評級。所有這些評級的展望均為穩定。

We've now tapped the unsecured term debt market on multiple occasions to ladder our maturities and to extend our liability duration out 29 years. Our debt maturities extend through 2052. With so many banks and debt investors across so many unsecured and nonrecourse debt tranches, we have substantially reduced our counterparty risk over the years.

我們現在已多次利用無擔保定期債務市場來提高我們的到期日並將我們的負債期限延長至 29 年。我們的債務期限延長至 2052 年。由於有如此多的銀行和債務投資者參與如此多的無擔保和無追索權債務部分，多年來我們已大幅降低了交易對手風險。

In the June 2023 quarter, we have continued utilizing our revolving credit and have continued with our weekly programmatic InterNotes issuance on an efficient funding basis.

在 2023 年 6 月季度，我們繼續利用循環信貸，並繼續在高效融資的基礎上每週進行程序性 InterNotes 發行。

To date, we have raised over $1.6 billion in aggregate issuance of our perpetual preferred stock across our preferred programs and listed preferred, including $112 million in the June 2023 quarter and $52 million to date in the current September 2023 quarter, with the ability potentially to upsize such programs based on significant balance sheet capacity. We now have 5 separate unsecured debt issuances, aggregating $1.2 billion, not including our program notes, with maturities extending through October 2028.

迄今為止，我們通過優先計劃和上市優先股發行的永久優先股總計籌集了超過 16 億美元，其中 2023 年 6 月季度的 1.12 億美元和 2023 年 9 月當前季度迄今為止的 5200 萬美元，有能力基於巨大的資產負債表能力，擴大此類計劃的規模。我們現在有 5 筆單獨的無擔保債務發行，總計 12 億美元（不包括我們的計劃票據），期限延長至 2028 年 10 月。

As of June 2023, we had $358 million of program notes outstanding with staggered maturities through March 2052. At June 30, 2023, our weighted average cost of unsecured debt financing was 4.07%, remaining constant from March 31, 2023, and a decrease of 0.28% from June 30, 2022.

截至2023 年6 月，截至2052 年3 月，我們有3.58 億美元的未償計劃票據，分期到期。截至2023 年6 月30 日，我們的無擔保債務融資加權平均成本為4.07%，自2023年3 月31 日起保持不變，下降了自 2022 年 6 月 30 日起 0.28%。

In 2020, we added a shareholder loyalty benefit to our Dividend Reinvestment Plan, or DRIP, that allows for a 5% discount to the market price for DRIP participants. As many brokerage firms either do not make DRIPs automatic or have their own synthetic DRIPs with no such 5% discount benefit, we encourage any shareholder interested in DRIP participation to contact your broker.

2020 年，我們在股息再投資計劃 (DRIP) 中增加了股東忠誠度福利，允許 DRIP 參與者享受市場價格 5% 的折扣。由於許多經紀公司要么不自動執行 DRIP，要么擁有自己的合成 DRIP，但沒有 5% 的折扣優惠，我們鼓勵任何對參與 DRIP 感興趣的股東聯繫您的經紀人。

Make sure to specify you wish to participate in the Prospect Capital Corporation DRIP plan through DTC at a 5% discount and obtain confirmation of same from your broker. Our preferred holders can also elect to DRIP at a 5% discount to the stated value per share of $25.

請務必明確表明您希望通過 DTC 以 5% 的折扣參與 Prospect Capital Corporation DRIP 計劃，並獲得經紀人的確認。我們的優先股持有人還可以選擇以每股 25 美元的規定價值 5% 的折扣進行 DRIP。

Now I'll turn the call back over to John.

現在我將把電話轉回給約翰。

Thank you, Kristin. We can now answer any questions.

謝謝你，克里斯汀。我們現在可以回答任何問題。

(Operator Instructions) Today's first question comes from Finian O'Shea with Wells Fargo.

（操作員說明）今天的第一個問題來自富國銀行的 Finian O'Shea。

Can you talk about the delay in the 10-K? If there was any difference between this year and last year's? And also, can you give us a sort of plain English description of the control issue that the auditor has with the CLO valuation?

您能談談 10-K 的延遲嗎？今年和去年有什麼不同嗎？另外，您能為我們提供一種簡單的英語描述，說明審計師對 CLO 估值的控制問題嗎？

Sure. I can try to take that question. So for this year, there is no issue or any other reason than we need additional time to finalize documentation. There's just more paperwork to do, and we're almost there. So we don't anticipate any issues or changes to our numbers in the earnings release, and we're planning to file as quickly as possible. And as far as -- we don't expect any repeat issues or new issues if that answers your question.

當然。我可以嘗試回答這個問題。因此，今年沒有任何問題或任何其他原因，只是我們需要更多時間來完成文檔。還有更多的文書工作要做，我們就快完成了。因此，我們預計收益發布中的數據不會出現任何問題或變化，並且我們計劃盡快提交。就 - 如果這回答了您的問題，我們預計不會出現任何重複問題或新問題。

The release does mention there's still, it's in part the delay, but also in part of the audit of the effectiveness of the company's internal control, which I think you mentioned last year, would expect to be settled. So I guess is there anything to see on that half of the statement?

該新聞稿確實提到仍然存在，部分是延遲，但也部分是對公司內部控制有效性的審計，我想你去年提到過，預計會得到解決。所以我想聲明的那一半有什麼可看的嗎？

Yes. I think we're not done until we're done, and everything is filed, but I think different than last year, we had no issues that we anticipate, and it's just a matter of wrapping things up and getting filed is our current expectation.

是的。我認為在完成之前我們還沒有完成，所有事情都已歸檔，但我認為與去年不同，我們沒有預期的問題，這只是將事情打包並歸檔是我們當前的期望。

Okay. And maybe a follow-up also on CLOs, but to Grier's comments on the Prospect for potential resets. What's the sort of feel you have for your current CLO book on the potential to reset or extend? And also, what would your view be on, say, investing more equity capital into those vehicles to facilitate that?

好的。也許還有關於 CLO 的後續行動，但針對格里爾對潛在重置前景的評論。您對當前 CLO 書中關於重置或擴展潛力的感覺如何？另外，您對向這些工具投資更多股權資本以促進這一目標有何看法？

Sure. CLO book for context is the smallest by far of our business segments, only about 8% of our book, not a significant economic driver at all anymore. It's down maybe 2/3 from where it was the peak many years ago.

當然。 CLO 的上下文書籍是迄今為止我們業務部門中最小的，僅占我們書籍的 8% 左右，根本不再是重要的經濟驅動力。與多年前的峰值相比，它可能下降了 2/3。

In terms of resets within that small portfolio, it's a spread tightening environment right now. The loan market has been relatively robust in the last few weeks and months, there is new issue occurring.

就小型投資組合內的重置而言，目前是利差收緊的環境。過去幾周和幾個月，貸款市場相對強勁，但出現了新的問題。

Whenever we analyze a particular investment, and we're well diversified and nonrecourse basis with 35 deals. It's an NPV analysis that's ongoing, really all the time related to whether or not we stay the course, with the status quo, whether or not we call a deal, or whether or not we refinance the deal, meaning change the liabilities without changing expected maturity or tenure. Then number four, whether or not we reset a deal.

每當我們分析一項特定投資時，我們都會以多元化和無追索權為基礎進行 35 筆交易。這是一個持續的淨現值分析，實際上始終與我們是否堅持到底、維持現狀、我們是否達成交易、或者我們是否為交易再融資有關，這意味著在不改變預期的情況下改變負債成熟度或任期。第四，無論我們是否重置交易。

So our goal is to choose the highest NPV option that maximizes shareholder value in each case and that can vary. Obviously, there was an impact from the pandemic within structured credit and the loan space generally, that's significantly abated over the last 18 months. The loan space has held up quite well as many folks know, given these are floating rate assets. Yes, also floating rate liabilities within structured credit, but quite a different experience from the fixed rate bond market.

因此，我們的目標是選擇最高的 NPV 選項，以在每種情況下實現股東價值最大化，而且情況可能會有所不同。顯然，大流行對結構性信貸和貸款空間產生了總體影響，但在過去 18 個月中這種影響已顯著減弱。正如許多人所知，鑑於這些是浮動利率資產，貸款空間一直保持得很好。是的，結構性信貸中也有浮動利率負債，但與固定利率債券市場的體驗截然不同。

But overall, we'd expect, as I had mentioned in my prepared comments, that this smallest portion of our business will continue to get smaller still.

但總的來說，正如我在準備好的評論中提到的那樣，我們預計我們業務的這一最小部分將繼續變得更小。

The next question comes from Robert Dodd with Raymond James.

下一個問題來自羅伯特·多德和雷蒙德·詹姆斯。

Just first question, going back to the 10-K issue. I mean you said you need more time. I mean is the BDC likely to see an incremental increase in expenses? I mean, is the fact is understaffed is that why things are not getting done on time? But again this is the second year in a row, I mean what needs to change to get the data, the information et cetera process faster, so shareholders can get their filings on time?

只是第一個問題，回到 10-K 問題。我的意思是你說你需要更多時間。我的意思是 BDC 的開支可能會逐漸增加嗎？我的意思是，事實上人手不足是為什麼事情不能按時完成嗎？但這又是連續第二年了，我的意思是需要做出哪些改變才能更快地獲取數據、信息等，以便股東能夠按時收到文件？

Yes, sure. John, Grier, I can take a stab at this question.

是的，當然。約翰、格里爾，我可以嘗試一下這個問題。

I can assure you; our plan is not to have an increase in expenses and extensions going forward. There's really been a dramatic increase in the audit documentation driven from the PCAOB requirements, and I think that's what we're struggling with and not struggling with, but handling this year, there's just a lot of additional work and documentation that is taking us a little bit past the deadline. And so we are already strategizing on how to handle that going forward to make sure our filings are on time and keep our expenses at a minimum.

我可以向你保證；我們的計劃是不再增加費用和延期。由於 PCAOB 的要求，審計文檔確實大幅增加，我認為這就是我們正在努力解決的問題，而不是正在努力解決的問題，但今年的處理情況是，有大量額外的工作和文檔需要我們過了最後期限一點點。因此，我們已經在製定如何處理未來的策略，以確保我們按時提交文件並將費用保持在最低限度。

Got it. On to credit quality, because obviously, we don't have the 10-K with all the details. I mean, nonaccruals ticked up a little bit or not much at 1.1. The unrealized depreciation in the noncontrol book, right, not the lead, et cetera, was just the largest part. Can you give us any color on what the largest drivers of the nonaccrual increase in the markdown were? I mean my guess is PTX. But can you give us any color on what's going on the marginal credit side?

知道了。關於信用質量，因為顯然我們沒有包含所有細節的 10-K。我的意思是，非應計費用在 1.1 時略有上升或上升不多。非控制賬簿中的未實現折舊，對，而不是鉛等，只是最大的一部分。您能否告訴我們降價非應計增長的最大驅動因素是什麼？我的意思是我的猜測是 PTX。但您能給我們介紹一下邊際信用方面的情況嗎？

I'll take that, Robert. Your estimate is spot on. It is one company, but for -- we would have had an evaluation increase for the quarter.

我會接受的，羅伯特。你的估計是正確的。這是一家公司，但如果不是——我們本季度的評估就會增加。

Got it. (inaudible) for Grier. And then last one, on overall, obviously, rates are up, a fair number of your portfolio companies have fixed rates rather than floating, but all of the index exposure. What proportion of your portfolio companies right now don't have the cash flow to pay their cash interest? And then how are you dealing with that, whether it's a sponsor relationship or where you are the sponsor in some cases, if that's there are instances of that?

知道了。 （聽不清）格里爾。最後一個，總的來說，顯然，利率上升了，相當多的投資組合公司都有固定利率而不是浮動利率，但所有指數敞口。您的投資組合公司中有多少比例目前沒有現金流來支付現金利息？然後你如何處理這個問題，無論是讚助商關係，還是在某些情況下你是讚助商，如果有這種情況的話？

Sure. A couple of items. First, over 94% of our portfolio is floating rate assets. So we have benefited from rates going up with an uptick in net investment income for the quarter as well. Number two, we actually just completed an exercise spot on with what you were asking about. Only about 2% of our middle-market lending book has, over the last fiscal year is up 1.0 fixed charge coverage, which, of course, is due to rates going up. And of course, those companies are pulling levers, as you would imagine, to correct that through cost cutting and business growth initiatives.

當然。幾件物品。首先，我們的投資組合中超過 94% 是浮動利率資產。因此，我們受益於利率上升以及本季度淨投資收入的上升。第二，我們實際上剛剛完成了您所問問題的練習點。在上一財年，我們的中間市場貸款賬目中只有約 2% 的固定費用覆蓋率增加了 1.0，當然，這是由於利率上升。當然，正如你想像的那樣，這些公司正在通過削減成本和業務增長計劃來糾正這一問題。

We've also done stressing as to what would happen to that 2% number if rates were to go up another 25 bps and another 50 bps. And I found that, that 2% number for the fiscal year doesn't change. So we're very happy with the overall performance of our book. And I think it reflects how we originally underwrote these deals, assuming a degradation in cash flow, that's -- it's just a lender glass half-empty type perspective that is protective when it comes to keeping the leverage low.

我們還強調瞭如果利率再上升 25 個基點和另外 50 個基點，這 2% 的數字會發生什麼。我發現，本財年 2% 的數字沒有變化。所以我們對這本書的整體表現非常滿意。我認為這反映了我們最初承銷這些交易的方式，假設現金流下降，這只是貸款人玻璃杯半空式的觀點，在保持低杠桿率方面具有保護作用。

We disclosed at our -- despite having $113 million of average EBITDA, which is much larger than any other middle-market lending portfolios, our attachment point is about 5.2x, which is significantly below the peers that report leverage, not very many peers report leverage, by the way, we do, and a few others do, maybe you can encourage peers to do so. But we're below others even though our EBITDA is higher.

我們在我們的報告中披露，儘管我們的平均EBITDA 為1.13 億美元，遠大於任何其他中間市場貸款投資組合，但我們的附著點約為5.2 倍，明顯低於報告槓桿率的同行，但報告槓桿率的同行並不多順便說一句，我們這樣做，其他一些人也這樣做，也許你可以鼓勵同行這樣做。但儘管我們的 EBITDA 較高，但我們仍低於其他公司。

And as we know, in credit, all other things being equal, bigger is better. And you certainly saw that during the pandemic when larger credits were more resilient, and you see that during downturns in general.

眾所周知，在信用方面，在其他條件相同的情況下，越大越好。你當然看到了，在大流行期間，更大的信貸更具彈性，而且你在總體經濟低迷時期也看到了這一點。

But overall, I'd say our portfolio is holding up quite well amidst the increase in rates. We do have a portion of our portfolio that has not benefited as much from an increased rate. That's a structured credit book. That's the real estate book. That's deals we also own equity, which, of course, becomes zero-sum with leverage.

但總的來說，我想說，在利率上漲的情況下，我們的投資組合表現得相當不錯。我們的投資組合中確實有一部分沒有從加息中獲益那麼多。這是一本結構化信用簿。那是一本房地產書。在這些交易中，我們還擁有股權，當然，利用槓桿，股權就變成了零和博弈。

Folks, I'm hearing now are concerned about, what about rates go down? Because inflation has abated, or recession comes into play. And I would say, while we may not have gone up as much as others that have a 100% pure floating rate credit book, we will not go down as much as others, and have just a less volatile business model all weather in nature compared to others vis-a-vis rate exposure.

各位，我聽說現在擔心的是，利率下降怎麼辦？因為通貨膨脹已經減弱，或者經濟衰退開始發揮作用。我想說，雖然我們可能沒有像其他擁有100% 純浮動利率信用賬簿的公司那樣上漲，但我們也不會像其他公司那樣下跌，而且與其他公司相比，我們的商業模式在任何天氣情況下波動性都較小。相對於其他人的暴露率。

I appreciate that color. Thank you, Grier. And I also agree with more timely disclosure from BDCs would be a good thing in general.

我很欣賞那種顏色。謝謝你，格里爾。我也同意 BDC 更及時地披露總體而言是一件好事。

This concludes our question-and-answer session. I would now like to turn the call back over to Mr. John Barry for any closing remarks.

我們的問答環節到此結束。我現在想將電話轉回給約翰·巴里先生，請他發表結束語。

Okay, everyone. Thank you, and we'll see you on the next call. Have a wonderful day now. Bye.

好吧，大家。謝謝您，我們下次通話再見。現在祝你有美好的一天。再見。

Thank you, all.

謝謝你們。

Conference has now concluded. Thank you for your participation. You may now disconnect your lines.

會議現已結束。感謝您的參與。您現在可以斷開線路。