Prospect Capital Corp (PSEC) 2025 Q2 法說會逐字稿

Hello and welcome to the Prospect Capital second fiscal quarter earnings relief and conference call.

您好，歡迎參加 Prospect Capital 第二財季收益公告和電話會議。

(Operator Instructions) As a reminder, this conference is being recorded.

（操作員指示）提醒一下，本次會議正在錄音。

I would now like to hand the call to John Barry, Chairman and CEO.

現在我想把電話交給董事長兼執行長約翰·巴里。

Please go ahead.

請繼續。

Thank you, MJ.

謝謝你，MJ。

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

今天與我一起參加電話會議的還有我們的總裁兼營運長 Grier Eliasek 和我們的財務長 Kristin Van Dask。

Kristin.

克里斯汀。

Thanks, John.

謝謝，約翰。

This call contains forward-looking statements that are intended to be subject to Safe Harbor protection.

本次電話會議包含前瞻性陳述，這些陳述旨在受到安全港保護。

Future results are highly likely to vary materially.

未來結果很可能會發生重大變化。

We do not undertake to update our forward-looking statements.

我們不承諾更新我們的前瞻性陳述。

For additional disclosure, see our earnings press release in 10-K filed previously and available on our website, prospectstreet.com. Now I'll turn the call back over to John.

如需更多揭露，請參閱我們先前提交的 10-K 收益新聞稿，可在我們的網站 prospectstreet.com 上查閱。現在我將把電話轉回給約翰。

Thank you, Kristin.

謝謝你，克里斯汀。

And as I told our Board, Kristin is absolutely crushing it.

正如我告訴董事會的那樣，克里斯汀絕對能取得這樣的成績。

(laughter) Thank you, Kristin.

（笑聲）謝謝你，克莉絲汀。

Okay.

好的。

Thank you, Kristen.

謝謝你，克里斯汀。

In the December quarter, our net investment income, or NII was $86.4 million or $0.20 per common share.

12 月季度，我們的淨投資收益（NII）為 8,640 萬美元，即每股 0.20 美元。

Our NAV was $3.4 billion or $7.84 per common share.

我們的資產淨值為 34 億美元，即每股 7.84 美元。

At December 31, our net debt to total assets was 28.1%.

截至 12 月 31 日，我們的淨債務與總資產之比為 28.1%。

Unsecured debt plus unsecured preferred is 91.9% of total debt plus preferred.

無擔保債務加上無擔保優先股佔總債務加上優先股的 91.9%。

Since inception over 20 years ago through our April 2025 declared distribution, we will have distributed over $4.4 billion or $21.39 per share, 2.7 times December 2024 NAV per share.

自 20 多年前成立以來，截至 2025 年 4 月我們宣布的分配，我們將分配超過 44 億美元或每股 21.39 美元，是 2024 年 12 月每股資產淨值的 2.7 倍。

We are announcing monthly common shareholder distributions of $4.50 per share for each of February, March, and April.

我們宣布二月、三月和四月每月普通股股東分紅為每股 4.50 美元。

We plan on announcing our next set of shareholder distributions in May.

我們計劃在五月宣布下一批股東分配。

Our preferred shareholder cash distributions continue at their contractual rate.

我們的優先股股東現金分配繼續按照合約規定的比率進行。

We continue to rotate assets into first-lien senior secured middle-market loans, sometimes with select equity investments; amortize our subordinated structured notes, exit from equity linked assets, including real estate; enhance portfolio company operating performance; and utilize our revolver.

我們繼續將資產輪調為優先擔保中型市場貸款，有時還會進行選擇性股權投資；攤銷我們的次級結構性票據，退出股權掛鉤資產，包括房地產；提高投資組合公司的經營績效；並使用我們的左輪手槍。

Thank you.

謝謝。

I'll now turn the call over to Grier.

我現在將電話轉給格里爾。

Thanks, John.

謝謝，約翰。

Over the past two decades, Prospect Capital Corporation has invested $11.7 billion in over 300 exited investments that have earned a 13% unlevered investment level gross cash IRR to Prospect Capital Corporation.

在過去的二十年中，Prospect Capital Corporation 已在 300 多個退出投資中投資了 117 億美元，這些投資為 Prospect Capital Corporation 帶來了 13% 的無槓桿投資水平總現金 IRR。

This more-than-two-decade time period includes the GFC and has been dominated in general by low interest rates.

這二十多年的時期包括全球金融危機，整體而言一直處於低利率狀態。

As of December, we held 114 portfolio companies across 33 different industries, with an aggregate fair value of $7.1 billion.

截至 12 月，我們持有 33 個不同產業的 114 家投資組合公司，總公允價值為 71 億美元。

For the December quarter, our portfolio at fair value comprised 64.9% first-lien debt, that's up 620 basis points from the prior year. 10.2% second-lien debt, that's down 530 basis points in the prior year. 5.8% subordinate structured notes with underlying secured first lane collateral, that's down 210 basis points in the prior year.

12 月季度，我們的公允價值投資組合包含 64.9% 的優先留置權債務，比上年增加 620 個基點。 10.2％的二級留置權債務，比前一年下降了 530 個基點。 5.8% 的次級結構性票據，具有基礎擔保的第一車道抵押品，比前一年下降了 210 個基點。

And 19.1% unsecured debt in equity investments, resulting in 81% of our investments being assets with underlying secured debt benefiting from borrower pledged collateral.

19.1% 的無擔保債務為股權投資，因此，我們 81% 的投資為以藉款人質押的擔保債務為標的的資產。

In our middle-market lending strategy, we recently provided a first-lien senior secured term loan, a first-lien senior secured convertible term loan, and a preferred equity investment to Taos Footwear, aggregating $65 million in collaboration with Taos' founder and leadership team.

在我們的中端市場貸款策略中，我們最近與 Taos 的創始人和領導團隊合作，向 Taos Footwear 提供了一筆優先留置權高級擔保定期貸款、一筆優先留置權高級擔保可轉換定期貸款以及一筆優先股權投資，總額達 6500 萬美元。

Taos is a leading innovative footwear brand providing customers with stylish and supportive footwear products over the last 20 years.

Taos 是一家領先的創新鞋類品牌，在過去 20 年為顧客提供時尚且有支撐力的鞋類產品。

Examples of similar recent investments in our middle-market lending strategy with both first-lien senior secured debt and selected equity-linked investments include Druid City Infusion and Discovery Point Retreat.

我們的中階市場貸款策略中近期類似的投資例子包括 Druid City Infusion 和 Discovery Point Retreat，其中既有第一留置權優先擔保債務，也有精選的股權掛鉤投資。

Druid City is an infusion therapy services company with multiple locations across the South and Mountain West regions of the United States.

Druid City 是一家輸液治療服務公司，在美國南部和西部山區設有多家辦公室。

Since closing, Druid has made an add on acquisition, expanding the reach of the company into Louisiana.

自收購以來，Druid 進行了附加收購，將公司的業務範圍擴大到了路易斯安那州。

We've worked with Druid's management team to evaluate improved market penetration and enhance collection recovery strategies, which Druid Management believes will lead to continued growth.

我們與 Druid 的管理團隊合作，評估提高的市場滲透率並加強收藏恢復策略，Druid Management 相信這將帶來持續成長。

Discovery Point Retreat is a rapidly growing detox and rehabilitation provider in North Texas.

Discovery Point Retreat 是北德州一家快速發展的排毒和復健服務提供者。

Recent EBITDA has increased by approximately 37% from under an EBITDA only a few months ago.

最近的 EBITDA 與幾個月前的 EBITDA 相比增長了約 37%。

We've worked with Druid's management team to enter into a new service agreement with the goal of purchasing such facility in the future as an expansion into California.

我們已經與 Druid 的管理團隊達成了新的服務協議，目標是將來購買此類設施，並將其擴展到加州。

Druid has also moved its Dallas outpatient program to a new location that more than doubles capacity and has begun construction at one of its inpatient facilities to expand capacity.

德魯伊還將其達拉斯門診計畫遷至新址，使容量增加了一倍多，並已開始在其一處住院設施內進行建設，以擴大容量。

Discovery management believes these initiatives each will lead to continued growth.

Discovery管理層堅信這些措施都將帶來持續的成長。

Our subordinate structured notes portfolio as of December represented 5.8% of our investment portfolio, a reduction of 210 basis points from 7.9% as of December 2023.

截至 12 月，我們的次級結構性票據投資組合占我們投資組合的 5.8%，較 2023 年 12 月的 7.9% 減少了 210 個基點。

Since the inception of the strategy for Prospect Capital Corp in 2011 and through December 2024, we have exited 15 subordinating structured notes investments, earning an unlevered investment level gross cash internal rate of return of 12.1%, and cash-on-cash multiple of 1.3 times.

自 2011 年 Prospect Capital Corp 策略制定以來，截至 2024 年 12 月，我們已退出 15 筆從屬結構性票據投資，無槓桿投資水準總現金內部收益率為 12.1%，現金倍數為 1.3 倍。

As of December, based on fair value and excluding investments being redeemed, the remaining subordinate structured notes portfolio had a trailing 12-month average cash yield of 24.4%, an annualized GAAP yield of 3.9%, with the difference between cash and GAAP yield representing amortization of our cost basis.

截至 12 月，基於公允價值並排除已贖回的投資，剩餘的次級結構性票據投資組合過去 12 個月的平均現金收益率為 24.4%，年化 GAAP 收益率為 3.9%，現金和 GAAP 收益率之間的差額代表我們成本基礎的攤銷。

We expect to continue to amortize or subordinate structured notes portfolio and to reinvest primarily to first-lien senior secured middle-market loans.

我們預計將繼續攤提或從屬結構性票據組合，並主要將其再投資於第一留置權優先擔保中型市場貸款。

In our real estate property portfolio at National Property REIT Corp or NPRC, since the inception of the strategy for Prospect Capital Corp in 2012 and through December 2024, we have exited 51 property investments, earning an unlevered investment level gross cash IRR of 24.3%, and cash-on-cash multiple of 2.5 times.

在 National Property REIT Corp 或 NPRC 的房地產投資組合中，自 2012 年 Prospect Capital Corp 策略啟動以來至 2024 年 12 月，我們已退出 51 項房地產投資，無槓桿投資水準總現金 IRR 為 24.3%，現金倍數為 2.5 倍。

We exited two additional properties in the December 2024 quarter.

我們在 2024 年 12 月季度退出了另外兩處房產。

The remaining real estate property portfolio includes 59 properties that paid us an income yield of 6.9% for the December quarter.

剩餘的房地產投資組合包括 59 處房產，12 月季度為我們帶來了 6.9% 的收益率。

Prospects aggregate investments in NPRC had a $522 million unrealized gain as of December.

截至 12 月份，潛在客戶對 NPRC 的總投資有 5.22 億美元的未實現收益。

We expect to continue to redeploy future asset sale proceeds primarily into both property value at capital expenditures, as well as more broadly first-lien senior secured middle-market loans.

我們預計將繼續將未來資產出售收益主要用於資本支出中的房地產價值，以及更廣泛的第一留置權優先擔保中型市場貸款。

Prospects approach is one that generates attractive risk adjusted yields and are performing interest-bearing investments for generating an annualized yield of 11.2% as of December.

前景方法可以產生具有吸引力的風 險調整收益，並且進行有利息的投資以產生截至 12 月 11.2% 的年化收益。

Our interest income in the December quarter was 91% of total investment income, reflecting a strong recurring revenue profile to our business.

我們 12 月季度的利息收入佔總投資收入的 91%，反映出我們業務強勁的經常性收入狀況。

Payment in kind income for the quarter ended December 2024 was $20 million, down 39% from the prior quarter, and down nearly 50% from the June 2024 quarter.

截至 2024 年 12 月的季度實物支付收入為 2,000 萬美元，較上一季下降 39%，較 2024 年 6 月季度下降近 50%。

Non-accruals as a percentage of total assets stood at approximately 0.4% in December.

12 月份，非應計項目佔總資產的百分比約為 0.4%。

Weighted average EBITDA per portfolio company stood at $102 million.

每家投資組合公司的加權平均 EBITDA 為 1.02 億美元。

Investment originations in the December quarter aggregated $135 million and were comprised of $120 million of first-lien senior secured loans or close to 90% of total originations.

12 月季度的投資發放總額為 1.35 億美元，其中包括 1.2 億美元的優先留置權擔保貸款，佔總發放額的近 90%。

We also experienced $383 million of repayments and exits as a validation of our capital preservation objective, resulting in net repayments of $248 million.

我們也經歷了 3.83 億美元的償還和退出，這驗證了我們的資本保全目標，最終淨償還金額達到 2.48 億美元。

During the December quarter, our originations comprised 67.7% middle-market lending, 14.5% middle-market lending buyouts, 17.8% real estate, and 0% in subordinated structured notes.

在 12 月季度，我們的貸款發放包括 67.7% 的中型市場貸款、14.5% 的中型市場貸款收購、17.8% 的房地產和 0% 的次級結構性票據。

So far in the current March 2025 quarter, we have booked $111 million in originations and experienced $19 million of repayments.

到目前為止，在 2025 年 3 月的當前季度中，我們已預訂了 1.11 億美元的貸款發放，並經歷了 1900 萬美元的還款。

Originations have consisted of 86.4% middle-market lending, and 13.6% real estate.

貸款發放量中，86.4%來自中端市場貸款，13.6%來自房地產貸款。

Thank you.

謝謝。

I'll now turn the call over to Kristin.

我現在將電話轉給克里斯汀。

Kristin?

克里斯汀？

Thanks, Grier.

謝謝，格里爾。

We believe our prudent leverage, diversified access to matchbook funding, substantial majority of unencumbered assets, waiting toward unsecured fixed-rate debt, and avoidance of unfunded asset commitments demonstrate both balance sheet strengths, as well as substantial liquidity to capitalize on attractive opportunities.

我們相信，我們審慎的槓桿率、多元化的匹配融資管道、絕大多數無抵押資產、等待無擔保固定利率債務以及避免無資金資產承諾，既展示了資產負債表的優勢，也展示了充足的流動性，可以利用有吸引力的機會。

Our company has locked in a ladder of liabilities extending 27 years into the future.

我們公司已經鎖定了未來27年的一系列債務。

Our unfunded eligible commitments to portfolio companies totals approximately $62 million, of which $29 million are considered at our sole discretion, representing approximately 0.9% and 0.4% of our assets as of December 2024, respectively.

我們對投資組合公司的未撥付合格承諾總額約為 6,200 萬美元，其中 2,900 萬美元由我們自行決定，分別占我們截至 2024 年 12 月資產的約 0.9% 和 0.4%。

Our combined balance sheet cash and undrawn revolving credit facility commitments stood at $1.9 billion as of December, and we held $4.8 billion of our assets as unencumbered assets, representing approximately 66% of our portfolio.

截至 12 月，我們的資產負債表現金和未提取的循環信貸額度承諾總額為 19 億美元，其中 48 億美元為無抵押資產，約占我們投資組合的 66%。

The remaining assets are pledged to Prospect Capital Funding, a non-recourse SPV.

剩餘資產質押給無追索權的特殊目的公司（SPV）Prospect Capital Funding。

We currently have $2.12 billion of commitments from 48 banks, demonstrating strong support of our company from the lender community with a diversity unmatched by any other company in our industry.

我們目前已獲得來自 48 家銀行的 21.2 億美元貸款承諾，表明貸款機構群體對我們公司的大力支持，其多元化程度在業內是其他任何公司都無法比擬的。

The facility does not mature until June 2029 and revolves until June 2028.

該貸款將於 2029 年 6 月到期，並將循環至 2028 年 6 月。

Our drawn pricing continues to be SOFR plus 2.05%.

我們制定的定價仍是 SOFR 加 2.05%。

Outside of our revolver, we have access to diversified funding sources across multiple investor bases and have successfully issued securities in an array of markets.

除了循環信貸之外，我們還可以從多個投資者群體獲得多元化的資金來源，並已在多個市場成功發行證券。

Prospect has issued multiple types of unsecured debt, institutional non-convertible bonds, institutional convertible bonds, retail baby bonds, and retail program notes.

Prospect 已發行多種類型的無擔保債務、機構不可轉換債券、機構可轉換債券、零售嬰兒債券和零售計劃票據。

All of these types of unsecured debt have no financial covenants, no asset restrictions, and no cross defaults with our revolver.

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，也沒有與我們的循環信貸交叉違約。

As of December, unsecured term debt represents 85% of all of prospect's indebtedness.

截至 12 月，無擔保定期債務佔潛在客戶全部債務的 85%。

We've tapped the unsecured term debt market on multiple occasions to ladder our maturities and to extend our liability duration out 27 years, with our debt maturities extending through 2052.

我們曾多次利用無擔保定期債務市場來分階段提高我們的債務期限，並將我們的負債期限延長 27 年，我們的債務到期日延長至 2052 年。

With so many banks and debt investors across so many unsecured and non-recourse debt tranches, we have substantially reduced our counterparty risk.

由於有如此多的銀行和債務投資者涉足如此多的無擔保和無追索權債務部分，我們大大降低了交易對手風險。

At December 31, 2024, our weighted average cost of unsecured debt financing was 4.49%.

截至 2024 年 12 月 31 日，我們的無擔保債務融資加權平均成本為 4.49%。

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.

謝謝你，克里斯汀。

I think we can take questions now.

我想我們現在可以回答問題了。

(Operator Instructions) Finian O'Shea, Wells Fargo.

（操作員指示） 菲尼安·奧謝（Finian O’Shea），富國銀行。

Question on specifically the unsecured.

關於無擔保的具體問題。

Can you talk about how the rating changes will impact how you shape that going forward if you intend to replace the -- over the next year to the public maturities in similar channels, or might you lean more on the revolver there?

如果您打算在明年用類似管道的公開發行債券取代這些債券，您能否談談評級變化將如何影響您未來的發展，或者您是否會更依賴循環信貸？

Thank you.

謝謝。

Thanks, Finian, for that question.

謝謝 Finian 提出這個問題。

We don't anticipate significant changes in our financing strategy.

我們預計我們的融資策略不會發生重大變化。

Recall Prospects is the pioneer that basically introduced to the BDC industry.

Recall Prospects 是真正進入 BDC 行業的先驅。

We've been doing this for over two decades.

我們這樣做已經二十多年了。

First to issue a convertible bond, first to issue an institutional bond, first to issue program notes, preferred many types of financing that the rest of the industry enjoys today as a result of our leadership.

率先發行可轉換債券、率先發行機構債券、率先發行專案票據，並優先享受多種類型的融資，而如今，由於我們的領先地位，業內其他公司都享受到了這些融資方式。

We're big believers in having a diversified array of markets to tap into.

我們堅信可以開拓多元化的市場。

We do plan on utilizing our facility that matches on a floating rate basis with our assets that are dominated by floating rate.

我們確實計劃利用以浮動利率為基礎匹配的設施來匹配以浮動利率為主的資產。

We have a well-diversified set of strong bank relationships, close to 50 in that facility.

我們與多種類型的銀行建立了牢固的合作關係，該機構與近 50 家銀行建立了合作關係。

We plan on continuing to tap the bond markets over time, the program notes markets as well, and our preferred markets.

我們計劃隨著時間的推移繼續進軍債券市場、計劃票據市場以及我們的優先市場。

Our credit spread versus treasuries is actually tighter now than where it was in July of 2024, which I think is a reflection of our strong credit profile as a company.

我們相對於國債的信用利差實際上現在比 2024 年 7 月的水平更緊，我認為這反映了我們作為一家公司的強勁信用狀況。

Okay.

好的。

Thanks.

謝謝。

That's helpful.

這很有幫助。

And just one on the preferreds, there was a, I think, a disclosed offer at the end of January, for an exchange.

關於優先股，我認為在 1 月底曾披露過一項交換要約。

I know it's just a few days in, but if you could talk about how that's going, if there's a lot of participation?

我知道這才幾天時間，您能談談進度嗎，參與人數多嗎？

And then I think 7.5% is the rate for the new securities if that's indicative on where you would issue a new class of preferreds?

然後我認為 7.5% 是新證券的利率，如果這可以表明您將在哪裡發行一類新的優先股？

Thanks.

謝謝。

Sure, I'll take those two questions in turn.

當然，我會依序回答這兩個問題。

In terms of exchanges, we have selectively offered for various convertible tranches of older series to exchange their paper into non-convertible but still perpetual preferreds.

在交換方面，我們有選擇地將舊系列的各種可轉換債券兌換成不可轉換但仍然是永久性的優先股。

And still providing credit support to our bonds as junior capital for same and attractive financing for our common equity.

並繼續為我們的債券提供信用支持，作為其次級資本，並為我們的普通股提供有吸引力的融資。

We've had strong participation in those exchange offers historically and would expect the same, going forward.

我們歷來積極參與這些交換要約，並期望未來仍將如此。

In terms of our new preferred series -- yes, you have the coupon -- correct for that, which is a reflection in balancing decisions across different fixed income markets.

就我們的新優先系列而言 - 是的，您有優惠券 - 這是正確的，這反映了在不同固定收益市場之間平衡決策。

Short-term rates are down a little bit, but medium, 5-to-10-year rates are up a bit.

短期利率略有下降，但中期（5 至 10 年期）利率略有上升。

We had previously had a floater with a floor based on short-term that had declined to the floor level.

我們之前曾有一個浮動利率債券，其底線是基於短期的，現在已降至底線水平。

And we saw a lot of demand at the prior level where we're issuing in last summer on more of a fixed basis; decided to move away from using a floater with the floor.

我們看到，在去年夏天我們以更固定的方式發行債券時，需求量很大；決定不再使用浮球。

Turns out people like floaters and rates are going up.

事實證明，人們喜歡浮動利率，而且利率也在上升。

Big surprise and not so much when rates are going down.

這確實是一個很大的驚喜，但當利率下降時，情況就沒那麼好了。

Did that help, Finian?

這有幫助嗎，菲尼安？

Pardon me, it looks like we have lost Finian's line.

抱歉，看來我們已經失去了菲尼安的血脈。

Okay.

好的。

I think we can wrap up.

我想我們可以結束了。

Okay.

好的。

In that case, this concludes our question-and-answer session.

那麼，我們的問答環節就到此結束。

I'd like to turn the call back to Mr. Barry for closing remarks.

我想請巴里先生作最後發言。

Okay, here are my closing remarks.

好的，這是我的結束語。

Thank you very much.

非常感謝。

Bye now.

再見了。

The conference is now concluded.

會議現已結束。

Thank you for your participation.

感謝您的參與。

You may now disconnect your lines.

現在您可以斷開線路了。