Prospect Capital Corp (PSEC) 2026 Q1 法說會逐字稿

Good day and welcome to the Prospect Capital first fiscal quarter 2026 earnings release and conference call.

大家好，歡迎參加 Prospect Capital 2026 財年第一季財報發表會和電話會議。

(Operator Instructions)

（操作說明）

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

現在我謹將會議交給董事長兼執行長約翰·巴里先生。請繼續。

Thank you, Danielle.

謝謝你，丹妮爾。

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

今天早上和我一起參加電話會議的有我們的總裁兼營運長格里爾·埃利亞塞克，以及我們的財務長克里斯汀·範·達斯克。

Kristin.

克里斯汀。

Thanks, John.

謝謝你，約翰。

This call contains forward-looking statements that are intended to be subject to safe harbor protection. Future results are highly likely to vary materially.

本次通話包含前瞻性陳述，旨在受到安全港條款的保護。未來的結果很可能與現在有重大差異。

We do not undertake to update our forward-looking statements. For additional disclosure, see our earnings press release and 10-Q filed previously and available on our website, prospectstreet.com. Now I'll turn the call back over to John.

我們不承諾更新我們的前瞻性聲明。更多披露信息，請參閱我們之前發布的盈利新聞稿和10-Q表格，這些文件可在我們的網站prospectstreet.com上查閱。現在我把電話轉回給約翰。

Thank you, Kristin.

謝謝你，克里斯汀。

In the September quarter, our net investment income (NII) was $79.4 million, or $0.17 per common share.

9 月季度，我們的淨投資收益 (NII) 為 7,940 萬美元，即每股普通股 0.17 美元。

Our net asset value was $3 billion, or $6.45 per common share.

我們的淨資產價值為30億美元，即每股普通股6.45美元。

At September 30, our net debt-to-total-assets ratio was 28.2%. Unsecured debt plus unsecured perpetual preferred was 80.8% of total debt plus preferred.

截至9月30日，我們的淨負債與總資產比率為28.2%。無擔保債務加上無擔保永久優先債佔總債務加優先債的 80.8%。

We are announcing monthly common shareholder distributions of $4.05 per share for each of November, December, and January.

我們宣布，11 月、12 月和 1 月的普通股股東每月分紅為每股 4.05 美元。

Since our IPO 20 years ago through our January 2026 declared distribution, we will have distributed over $4.6 billion, or $21.79 per share.

自 20 年前我們進行 IPO 以來，截至 2026 年 1 月我們宣布的分配，我們將累計分配超過 46 億美元，即每股 21.79 美元。

Our preferred shareholder cash distributions continue at their contracted rates.

我們將繼續以合約約定的速度向優先股股東派發現金分紅。

We continue to make progress repositioning our business, including rotation of assets into an increased focus on our core business of first lien senior secured middle market loans, with our first lien mix increasing 701 basis points to 71.1% from June 2024.

我們繼續推動業務重組，包括將資產輪調到更專注於我們核心業務——優先擔保中端市場貸款——的領域，從 2024 年 6 月起，我們的優先擔保貸款佔比將提高 701 個基點，達到 71.1%。

We are focusing on new investments in companies with less than $50 million of EBITDA, including companies with smaller funded private equity sponsors, independent sponsors, and no third-party financial sponsors, where we see less competition, better returns, and more protection.

我們專注於對 EBITDA 低於 5000 萬美元的公司進行新的投資，包括那些由規模較小的私募股權贊助商、獨立贊助商以及沒有第三方財務贊助商的公司，因為我們認為這些公司的競爭較小、回報更高、保障也更充分。

Reduction in our second lien senior secured middle market loans, with our second lien mix decreasing 292 basis points to 13.5% from June 2024.

我們將減少第二順位優先擔保中端市場貸款，從 2024 年 6 月起，第二順位貸款組合將下降 292 個基點至 13.5%。

Exit of our subordinated structured notes, with our subordinated structured notes mix decreasing 808 basis points to 0.3% from June 2024.

我們將退出次級結構性票據市場，從 2024 年 6 月起，我們的次級結構性票據組合將下降 808 個基點至 0.3%。

Exit of targeted equity-linked securities, including real estate, with three additional properties sold since July 1, 2025, and certain corporate investments, including the sale of significant assets within Echelon Transportation in July 2025, with remaining assets expected to be sold in the December 2025 quarter and other exits targeted.

退出目標股權相關證券，包括房地產，自 2025 年 7 月 1 日以來又售出了三處房產，以及某些公司投資，包括 2025 年 7 月出售 Echelon Transportation 的大量資產，預計剩餘資產將在 2025 年 12 月季度出售，併計劃退出其他項目。

Enhancement of portfolio company operations and greater utilization of a cost-efficient floating rate revolver, which largely matches our floating rate assets.

加強投資組合公司的運營，並更有效地利用成本效益高的浮動利率循環信貸額度，該額度與我們的浮動利率資產基本匹配。

Thank you. I will now turn the call over to Grier.

謝謝。現在我將把通話轉給格里爾。

Thank you, John.

謝謝你，約翰。

Over the past two decades, Prospect Capital Corporation has invested approximately $13 billion in nearly 400 exited investments out of over $22 billion in nearly 500 total investments that have earned a 12% unlevered investment-level gross cash internal rate of return (IRR) to Prospect Capital Corporation.

在過去的二十年裡，Prospect Capital Corporation 已投資約 130 億美元，用於近 400 項已退出的投資項目；該公司總共投資超過 220 億美元，用於近 500 項現金投資項目，這些投資項目為 Prospect Capital Corporation 帶來了 12% 的無槓桿投資級總現金投資項目，這些投資項目為 Prospect Capital Corporation 帶來了 12% 的無槓桿投資級總現金內部收益率 (IRR)。

This multi-decade time period includes the GFC and has been dominated in general by low prevailing market interest rates.

這數十年的時間跨度包括了全球金融危機，並且總體上以較低的市場利率為主導。

As of September 2025, we held 92 portfolio companies across 32 different industries with an aggregate fair value of $6.5 billion.

截至 2025 年 9 月，我們持有 92 家投資組合公司，涵蓋 32 個不同的產業，總公允價值達 65 億美元。

We primarily focus on senior and secured debt, which was 85% of our portfolio at cost as of September.

我們主要專注於優先和擔保債務，截至 9 月，這些債務占我們投資組合成本的 85%。

Our middle market lending strategy is the primary focus of our company, with such strategy as of September 2025 representing 85% of our investments at cost, an increase of 864 basis points from June 2024. In our middle market lending strategy, we've continued our focus on first lien, senior secured loans during the quarter, with such investments totaling 81% of originations during the quarter.

我們的中階市場貸款策略是我們公司的主要重點，截至 2025 年 9 月，該策略占我們投資成本的 85%，比 2024 年 6 月增加了 864 個基點。在我們的中端市場貸款策略中，我們本季持續專注於第一順位擔保貸款，而此類投資佔本季貸款發放總額的 81%。

Investments during the quarter included a new investment in The Ridge, also known as Healthcare Venture Partners, a provider of healthcare services, and other follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives.

本季投資包括對醫療保健服務提供者 The Ridge（又稱 Healthcare Venture Partners）的新投資，以及對現有投資組合公司的其他後續投資，以支持收購、營運資金需求、內生成長計畫和其他目標。

We've substantially completed the exit of our subordinated structured notes portfolio as of September 2025, with such portfolio representing only 0.3% of our investment portfolio at cost, which represents a reduction of 808 basis points from 8.4% as of June 2024.

截至 2025 年 9 月，我們已基本完成次級結構性票據投資組合的退出，該投資組合按成本計算僅占我們投資組合的 0.3%，比 2024 年 6 月的 8.4% 減少了 808 個基點。

In our real estate property portfolio at National Property R Corp (NPRC), which represented 14% of our investments at cost as of September 2025 and which is focused on developed and occupied cash-flowing multi-family investments:

截至 2025 年 9 月，National Property R Corp (NPRC) 的房地產投資組合占我們投資成本的 14%，該投資組合專注於已開發和已入住的現金流多戶住宅投資：

Since the inception of this strategy in 2012 and through October 31, 2025, we have now exited 55 property investments that have earned an unlevered investment-level gross cash IRR of 24% and a cash-on-cash multiple of 2.4 times.

自 2012 年該策略實施以來，截至 2025 年 10 月 31 日，我們已退出 55 項房地產投資，這些投資的無槓桿投資級總現金內部收益率為 24%，現金回報率為 2.4 倍。

We exited three property investments since June 2025 for approximately $59 million of net proceeds to Prospect Capital Corp and earned an unlevered investment-level gross cash IRR of 23% and a cash-on-cash multiple of 2.3 times.

自 2025 年 6 月以來，我們退出了三項房地產投資，向 Prospect Capital Corp 獲得了約 5,900 萬美元的淨收益，並獲得了 23% 的無槓桿投資級總現金內部收益率和 2.3 倍的現金回報率。

The remaining real estate property portfolio included 55 properties and paid us an income yield of 5.1% for the September quarter.

剩餘的房地產投資組合包括 55 處房產，9 月季度為我們帶來了 5.1% 的收益率。

Prospect's aggregate investments in NPRC included a $320 million unrealized gain as of September.

截至9月份，Prospect在NPRC的總投資金額包括3.2億美元的未實現收益。

We expect to continue to redeploy future asset sale proceeds primarily into more first lien senior secured loans with selected equity-linked investments.

我們預計將繼續把未來的資產出售所得款項主要用於更多的優先擔保貸款以及精選的股權相關投資。

Prospect's approach is one that generates attractive risk-adjusted yields, and our performing interest-bearing investments were generating an annualized yield of 11.8% for the quarter ended September.

Prospect 的投資策略能夠產生具有吸引力的風險調整後收益，截至 9 月底，我們表現良好的計息投資的年化收益率為 11.8%。

Our interest income in the September quarter was 97% of total investment income, reflecting a strong and high-quality recurring revenue profile for our business.

我們在 9 月季度的利息收入佔總投資收入的 97%，這反映出我們業務擁有強勁且高品質的經常性收入。

Payment-in-kind income for the quarter ended September 2025 was reduced by over 50% from the quarter ended September 2024.

截至 2025 年 9 月的季度，實物支付收入比截至 2024 年 9 月的季度減少了 50% 以上。

Non-accruals as a percentage of total assets as of September stood at approximately 0.7% based on fair market value.

截至9月份，非應計項目佔總資產的比例（以公允市價計算）約為0.7%。

Investment originations in the September quarter aggregated $92 million and were comprised of 72% middle market investments, with a significant majority of first lien senior secured loans. We also experienced $235 million of repayments and exits as a validation of our capital preservation objective, resulting in net repayments of $143 million.

9 月季度新增投資總額為 9,200 萬美元，其中 72% 為中端市場投資，絕大多數為優先擔保貸款。我們也進行了 2.35 億美元的還款和退出，這驗證了我們的資本保全目標，最終淨還款額為 1.43 億美元。

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

謝謝，我現在把電話轉給克里斯汀。克里斯汀。

Thanks Grier.

謝謝格里爾。

We believe our prudent leverage, diversified access to matched book funding, substantial majority of unencumbered assets, weighting toward unsecured fixed rate debt, and avoidance of unfunded asset commitments all demonstrate balance sheet strength, as well as substantial liquidity to capitalize on attractive opportunities.

我們相信，我們審慎的槓桿率、多元化的配套融資管道、絕大多數未抵押資產、以無擔保固定利率債務為主的投資組合以及避免未融資資產承諾，都體現了我們資產負債表的穩健性，以及充足的流動性，從而能夠把握有利的投資機會。

Our company has locked in a ladder of liabilities extending 26 years into the future.

我們公司已經鎖定了一系列長達 26 年的債務。

On October 30, 2025, we successfully completed the institutional issuance of approximately $168 million in aggregate principal amount of senior unsecured 5.5% notes due 2030, which mature on December 31, 2030.

2025 年 10 月 30 日，我們成功完成了總額約 1.68 億美元的機構發行高級無抵押 5.5% 票據，該票據將於 2030 年到期，並於 2030 年 12 月 31 日到期。

We expect to use the net proceeds of the offering primarily for the refinancing of existing indebtedness.

我們預計將把此次發行的淨收益主要用於現有債務的再融資。

Our unfunded eligible commitments to portfolio companies total approximately $36 million, of which $15 million are considered at our sole discretion, representing approximately 0.5% and 0.2% of our total assets as of September respectively.

我們對投資組合公司的未註資合格承諾總額約為 3,600 萬美元，其中 1,500 萬美元由我們自行決定是否考慮，分別約占我們截至 9 月份總資產的 0.5% 和 0.2%。

Our combined balance sheet cash and undrawn revolving credit facility commitments stood at $1.5 billion as of September, and we held $4.2 billion of our assets as unencumbered assets, representing approximately 63% of our portfolio, the remaining assets are pledged to Prospect Capital Funding, a non-recourse SPV.

截至 9 月，我們的資產負債表現金和未提取循環信貸額度承諾總額為 15 億美元，我們持有 42 億美元的資產作為無抵押資產，約占我們投資組合的 63%，其餘資產已抵押給 Prospect Capital Funding，一家無追索權的特殊目的實體 (SPV)。

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 48 家銀行 21.2 億美元的貸款承諾，這表明貸款機構對我們公司給予了強有力的支持，這種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. Our drawn pricing continues to be so far plus 2.05%. Outside of our revolver, we have access to diversified funding sources across multiple investor types and have successfully issued securities in an array of markets.

該融資工具要到 2029 年 6 月才會到期，循環期到 2028 年 6 月。我們目前的定價仍然比標價高出 2.05%。除了循環信貸額度外，我們還可以透過多種投資者類型獲得多元化的融資管道，並在多個市場成功發行了證券。

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

Prospect 發行了多種類型的無擔保債務，包括機構不可轉換債券、機構可轉換債券、零售嬰兒債券和零售項目票據。

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、資產限制，並且與我們的循環信貸沒有交叉違約。

We have tapped the unsecured term debt market on multiple occasions to latter our maturities and to extend our liability duration out 26 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延緩債務到期，並將負債期限延長至 26 年，債務到期日將延長至 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參與瞭如此多的無擔保和無追索權債務，我們大幅降低了交易對手風險。

At September 30, 2025, our weighted average cost of unsecured debt financing was 4.54%. Now I'll turn the call back over to John.

截至 2025 年 9 月 30 日，我們的無擔保債務融資加權平均成本為 4.54%。現在我把電話轉回給約翰。

Thank you, Kristin. We can take calls now, questions now.

謝謝你，克里斯汀。現在就可以接聽電話，回答問題了。

Thank you.

謝謝。

(Operator Instructions)

（操作說明）

Finian O'Shea, Wells Fargo.

Finian O'Shea，富國銀行。

Hey everyone, good morning.

大家好，早安。

I want to ask about the equity linked rotation you've made some good progress there as you sort of embark on that.

我想問關於股票掛鉤輪動策略的問題，你們在這方面取得了一些不錯的進展。

But seeing if you can give us color on how far it goes and what are maybe the sacred cows within you know a lot of that's in the control book, particularly one area consumer finance you're still putting money in those companies are doing well but but but are there is that sort of what's supposed to remain and or or how much and or how much of the rest. Is sort of a candidate to move versus versus what you'd view as a strategic holding thanks.

但如果你能給我們詳細介紹一下它的發展程度，以及其中可能存在的不可觸碰的禁忌，那就太好了。你知道，很多內容都寫在控製手冊裡，尤其是在消費金融領域，你仍然在投資這些公司，它們確實發展良好，但是，但是，到底哪些應該保留下來，或者說應該保留多少，或者說剩下的部分應該保留多少。與其說是策略性持倉，不如說更像是值得考慮的候選標的。

Sure, I'll take that.

好的，我接受。

Go ahead, John.

請繼續，約翰。

No, please take it. Okay.

不，請您收下。好的。

So Finian, yes, we do like to make first lien and senior and secured loans, to companies, and we do, really increasing percentage of the time like to have some portion of our paper as equity linked, ideally without a trade-off involved. The best type, of course, is penny warrants, the free type. And then the next best is a convertible debt that is, still senior and secured, has a cash pay coupon pledgeable to our facility, but then has ups as well, and then various types of convertible preferred that have coupons and liquidation preferences on top of third-party capital all the way to some heads up capital.

所以 Finian，是的，我們確實喜歡向公司提供優先擔保貸款、優先貸款和有擔保貸款，而且我們確實越來越希望將部分債券與股權掛鉤，理想情況下，最好不要有任何權衡取捨。當然，最好的類型是便士債券，也就是免費的債券。其次是可轉換債券，它仍然是優先擔保債券，具有可抵押給我們的現金支付息票，但也有溢價，然後是各種類型的可轉換優先股，除了第三方資本外，還有息票和清算優先權，一直到一些首付資本。

So our strategy is one. Of evaluating each investment in the book and looking at it on a foregone yield and foregone IRR, including giving effect to accretion through our roughly S-200 secured credit facility for those foregone returns at a price that we think is actionable. With a third-party purchaser in the market, that's the guidepost we use to make decisions to optimize the portfolio, and what that leads us to is to look to divest over time generally when you've had appreciated equity linked assets. And we're looking forward and maybe there's upside in the future but not quite as much and we're not foregoing as much and we're also paying careful attention to foregone yield as well, wanting to rotate and drive and optimize, increased revenue, increase income for our business. The best candidate for that. In our portfolio is real estate. I mentioned we've sold 55 properties. We have another, 50 or so to go.

所以我們的策略是一。對帳簿中的每項投資進行評估，並考慮放棄的收益和放棄的內部收益率，包括透過我們約 200 美元的擔保信貸安排，以我們認為可行的價格，對這些放棄的收益進行增值。如果市場上出現第三方買家，這就是我們用來做出決策以優化投資組合的指導原則，而這通常會讓我們在持有增值股票相關資產後，隨著時間的推移考慮逐步減持。我們展望未來，未來或許會有上漲空間，但不會像現在這樣多，我們也不會放棄那麼多，我們也在密切關注放棄的收益，希望能夠輪換、推動和優化，增加收入，提高我們業務的利潤。最適合的人選。我們的投資組合中包含房地產。我提到我們已經售出了55處房產。我們還剩下大約50個要完成。

Returns on recent exits, sort of backward looking, are fairly similar to the overall. Overall returns we've generated on the other 50 or so exits with IRRs in the, low 20s and a multiple of invested capital generally above 2 times cash on cash, but the extent book after giving effect within real estate.

從回顧的角度來看，近期退出的報酬與整體報酬相當相似。在其他約 50 個退出項目中，我們總體上獲得了回報，內部收益率 (IRR) 在 20% 左右，投資資本倍數通常高於現金回報率的 2 倍，但考慮到房地產的影響，賬面價值有所下降。

To appreciation of value is generating about a 5% income yield that of course is much lower than what we can achieve in the market for new originations. We are focused on.

增值可以產生約 5% 的收益率，這當然遠低於我們在新貸款市場所能獲得的收益率。我們專注於。

Smaller companies increasingly sub $50 million, EBITDA really sub $25 million to $35 million, because there's so much competition in the upper middle market that has bid away spreads, that is bid away floors, that has bid away covenants, that has bid away earnings. Quality that has bit away strong documents. So many problems there that we intensely dislike and so we're focused on the harder to originate but well worth it when you do smaller end. Our last dozen or so deals closed have had an average spread in. 700s compared to the upper middle market which is decidedly with a 4 handle by comparison we're getting much higher floors generally above 300 basis points on those deals and look at what's happening with short-term rates. We're down to about 375 basis points and folks are cutting distributions out there and experiencing lower yields. What went up can and almost certainly will go down again from a floating rate perspective. So we can put money out and call it 10% to 12% unlevered in the lower middle market. Then we lever that in our S-200 facility at a 50% to 60% advance rate, and we're talking about a 15% plus income yield return before giving effect to any equity linked benefit. That 15% of course is vastly superior on an income yield perspective to the 5% I was quoting. On real estate, so we view that as an earnings powerhouse that we're unleashing through that rotation that we're pursuing. That doesn't mean we're going to dispose of the real estate portfolio lickety split. We're doing so on a thoughtful, value maximizing basis on a bottoms up look at different geographies. Properties we've concluded you maximize value by selling individual assets or smaller groups of assets as opposed to the whole. There's just a lot more buyers who can transact with individual assets as opposed to, cut a multi-billion dollar check. Usually those guys look for significant bargains that we're not too interested in in parting with. So that's what's going on with real estate. We're seeing solid NOI growth. We've had about 7% NOI growth and we're seeing tailwinds there as supply has diminished and look for us to continue to monetize assets in coming quarters. Then you have other assets on the corporate side. I'll divide that into non-financials and financials that you mentioned. We have a number of very successful.

規模較小的公司營業額越來越低於 5000 萬美元，EBITDA 實際上低於 2500 萬至 3500 萬美元，因為中高端市場的競爭非常激烈，競相壓低價差、壓低底價、壓低契約條款、壓低盈利。品質問題導致一些重要文件被忽略。那裡有很多我們非常不喜歡的問題，所以我們專注於那些更難產生但當你做小規模專案時，這些努力都是值得的。我們最近完成的十幾筆交易的平均利差在 700 多個基點左右，而中高端市場（尤其是 4 級交易）的利差則明顯更高，通常超過 300 個基點。再看看短期利率的走勢。目前殖利率降至約 375 個基點，各家公司都在削減分紅，殖利率也隨之下降。從浮動利率的角度來看，上漲的東西很可能會再次下跌，幾乎肯定會再次下跌。因此，我們可以投入資金，在中低端市場獲得 10% 到 12% 的無槓桿收益率。然後，我們在 S-200 設施中以 50% 至 60% 的預付款率進行槓桿操作，我們談論的是 15% 以上的收益率回報，這還不包括任何與股權相關的收益。從殖利率的角度來看，15% 當然比我之前提到的 5% 好得多。在房地產領域，我們認為這是一個盈利強勁的領域，我們正在透過我們正在進行的輪動來釋放它。但這並不意味著我們會立即拋售房地產投資組合。我們正以深思熟慮、價值最大化為原則，自下而上地審視不同地區的情況。我們已經得出結論，出售單一資產或較小規模的資產組合（而不是整體出售）可以最大程度地提高房產價值。相較之下，現在更多的買家願意交易單一資產，而不是開出數十億美元的支票。通常情況下，這些人會尋找我們不太願意出售的超低價商品。這就是房地產市場的現況。我們看到營業淨收入穩定成長。我們的淨營業收入成長了約 7%，隨著供應減少，我們看到了有利因素，預計我們將在未來幾季繼續實現資產變現。此外，您在公司方面還有其他資產。我會把它分成你提到的非財務部分和財務部分。我們有很多非常成功的案例。

Non-financial deals where you have some equity linked positions that have appreciated significantly and again when you look at on a foregone yield and IRR basis, we say okay we think it could make sense at the right price, you know the deal business is dynamic and you never know exactly what the outcome will be.

對於非金融交易，如果你持有的某些股權已經大幅升值，那麼當你從放棄的收益率和內部收益率的角度來看待這些交易時，我們會說，好吧，我們認為在合適的價格下，這可能是有意義的。你知道，交易業務是動態的，你永遠無法確切地知道結果會是什麼。

But at the right price, there is a potential transaction there, so we've got various processes that are ongoing there and we'll disclose that at the appropriate point should we find interesting exit points and again an unleashing of earnings power. By rotating those appreciated assets into more in a diversified way of income producing properties in the financial book that you talked about, those are really for the most part long-term holds for multiple reasons. I mean that. Doesn't mean we would say no if some huge outlier, bid came along, but we have substantial tax advantages that aren't enjoyed by other public companies because we're a BDC, we're a Rick, we pay no corporate taxes as long as, of course, we meet the regulatory requirements which we have for our 20 plus year history and intend on continuing to do. And we hold these financials as tax partnerships, so there's no taxes at the underlying portfolio company level. If these companies, say First Tower for example, were to become its own public company and it's, large enough business that perhaps it could or could someday, it would need to be a corporate taxpayer.

但如果價格合適，就有可能達成交易，所以我們正在進行各種相關流程，如果找到合適的退出點並再次釋放盈利能力，我們會在適當的時候披露相關資訊。正如你所說，透過將這些增值資產以更加多元化的方式輪換到財務報表中的收益型資產上，這些資產在很大程度上都是長期持有的，原因有很多。我的意思是這樣的。這並不意味著如果出現一些巨大的、非同尋常的收購要約，我們就會拒絕，但我們擁有其他上市公司無法享受的重大稅收優勢，因為我們是一家商業發展公司（BDC），我們是Rick，只要我們滿足監管要求，我們就無需繳納公司稅。在過去的20多年裡，我們一直符合監管要求，並且打算繼續這樣做。我們以稅務合夥企業的形式持有這些財務數據，因此底層投資組合公司層級無需繳納任何稅款。如果這些公司，例如第一塔公司，要成為一家獨立的上市公司，而且它的業務規模足夠大，或許能夠或將來有一天能夠上市，那麼它就需要成為企業納稅人。

Under the regs, and that would be an erosion of value and any potential buyer would keep that in mind for their eventual exit. So we enjoy a very low cost of capital as a natural resting ground for financials and just more important than that, we've had terrific success focusing on areas that are highly recurring. And recession resilience, and I'm talking about installment lending, which is what First Tower and Credit Central and our latest deal which is QCHI are all transacting. We do have a small auto book, very small, that's been a tougher business. That's a scale business. It's less of a. Customer loyalty recurring cash flow business because an automobile purchase is episodic, but for these installment lenders they're doing 50% to 75% plus of their business with with current customers, and there's a substantial loyalty element that grounds the business and really creates low volatility. And as short-term rates are starting now to subside, that's a further tailwind for those businesses that utilize third-party ABL, that's floating rate in nature. I think with tower, something like every 100 basis points reduction in sour increases pre-tax net income by somewhere in the range of $5 million to $10 million.

根據相關規定，這將導致價值貶損，任何潛在買家在最終退出時都會考慮到這一點。因此，我們享有非常低的資本成本，這為財務狀況提供了一個天然的緩衝地帶；更重要的是，我們專注於高經常性領域，並取得了巨大的成功。還有應對經濟衰退的能力，我指的是分期貸款，First Tower、Credit Central 以及我們最新的交易對象 QCHI 都在從事這類業務。我們的汽車貸款業務規模很小，非常小，這方面的業務比較難做。那是一個規模化產業。不太像。客戶忠誠度對於經常性現金流業務至關重要，因為購買汽車是一次性的，但對於這些分期貸款機構來說，他們 50% 到 75% 以上的業務都來自現有客戶，而大量的客戶忠誠度因素使業務穩定下來，並真正創造了低波動性。隨著短期利率開始回落，這對那些使用第三方資產抵押貸款（ABL，本質上是浮動利率）的企業來說，又是一個好因素。我認為，對於 Tower 公司而言，酸值每降低 100 個基點，稅前淨收入就會增加 500 萬至 1,000 萬美元。

And then of course there's a valuation. Benefit from that as well. So that's what we're after. We've made a lot of progress in the last year, Finian, exiting our structured credit book was a big part of that process. That book had become low yielding on a GAAP basis as well, and we're rotating and having great success with deals like the Ridge, deals like Verify diagnostics, deals like Druid City and Discovery Point, Taos and QC as equity linked deals have had substantial write-ups year-to-date since we closed each of them. So, the strategy is working well and we're going to continue to execute on that game plan.

當然，接下來還有估值的問題。你也能從中受益。這就是我們想要的結果。芬尼安，過去一年我們取得了巨大的進展，退出結構化信貸業務是這個過程的重要組成部分。該投資組合按 GAAP 計算的收益率也變得很低，我們正在輪換投資，並且在 Ridge、Verify Diagnostics、Druid City 和 Discovery Point、Taos 和 QC 等股權掛鉤交易中取得了巨大成功，自我們完成這些交易以來，今年迄今為止的業績都得到了顯著提升。所以，這個策略效果很好，我們將繼續執行這個計畫。

I appreciate that a lot of color there and just as a follow-up.

我很欣賞那裡豐富的色彩，作為後續補充。

Prospect progress as well on the liability front; can you talk about.

預計在責任方面也會取得進展；您能談談嗎？

The Israeli bond, if that is that sort of a one-off or a new channel and if you anticipate or are planning more meaningful movement on the unsecured on the unsecured front, thank you.

以色列債券，如果這是一次性的或新的管道，如果您預計或計劃在無擔保債券領域採取更有意義的行動，謝謝。

Sure, it, it's a new channel. It's not a one-off. It's something we've evaluated for a very long time.

當然，這是一個新頻道。這並非個案。這是我們評估了很久的問題。

And we thought the timing made sense for us. We've been utilizing our revolver to retire liabilities, we utilized our 48-bank strong $2.1 billion dollar revolver a few months ago to take out our first half of 2026 original issue $400 million dollar bond and could utilize that as well for our next maturity which isn't until, the tail end of 2026, but I thought this was an interesting. And strategic place to issue, we have strong relationships there.

我們認為這個時機對我們來說很適合。我們一直在利用循環信貸額度來償還負債。幾個月前，我們利用 48 家銀行組成的 21 億美元循環信貸額度，發行了 2026 年上半年的 4 億美元債券。我們也可以利用這筆資金來償還下一個到期的債券，該債券要到 2026 年底才會到期。但我認為這很有趣。而且那裡是發行產品的戰略要地，我們與那裡有著牢固的關係。

We've had institutional support from that market on other types of issuance and prospect and so it just made a lot of sense and something like 40 plus institutional investors come into that bond and and that's a decent sized market, and I think you'll see us on a thoughtful basis, continue to expand our presence there, and, but that doesn't mean that's going to be our only source of financing. We're big believers in diversified financing. The fact that we have almost 50 banks in our facility shows we're not taking substantial counterparty risk, which can be problematic, especially in downturns. We saw that happen in the GFC with folks. Well, that's a big reason why we were able to buy patriot Capital, for example, and what happened to that business when we did the first BDC acquisition in history. But Prospect of course created the bond market for BDCs. We're the first to issue convertible bonds going back to 2010 and then straight institutional bonds in 2012 and first and only to issue medium term notes. So we've been doing this for a very long time and are big believers in diversified access to funding, and we think that creates a strong credit profile for all, including, of course, equity investors that benefit from that diversified funding.

我們之前在其他類型的債券發行和前景評估中都得到了該市場的機構支持，所以發行債券是很有意義的，大約有 40 多家機構投資者參與了這筆債券，這是一個相當規模的市場，我認為你會看到我們經過深思熟慮後，繼續擴大我們在該市場的份額，但這並不意味著這將是我們唯一的融資來源。我們非常相信多角化融資。我們的合作機構擁有近 50 家銀行，這表明我們不會承擔重大的交易對手風險，這可能會造成問題，尤其是在經濟低迷時期。我們在全球金融危機期間就看到過這種情況。嗯，這就是我們能夠收購 Patriot Capital 的一個重要原因，例如，以及當我們進行歷史上第一次 BDC 收購時，這家公司後來的發展。當然，Prospect 為 BDC 創造了債券市場。我們是第一個發行可轉換債券的公司（2010 年），然後是第一個發行直接機構債券的公司（2012 年），也是第一個發行中期票據的公司。因此，我們長期以來一直致力於多元化融資管道，並且堅信多元化融資能夠為所有人創造良好的信用記錄，當然也包括受益於多元化融資的股權投資者。

Awesome, well, thank you everybody.

太棒了，謝謝大家。

Congrats on the quarter.

恭喜你本季取得佳績。

Thank you, Finian.

謝謝你，菲尼安。

This concludes our question-and-answer session. I would like to turn the conference back over to John Berry for closing remarks.

我們的問答環節到此結束。我謹將會議交還給約翰·貝瑞，請他作閉幕致詞。

Okay, thank you, everyone. Have a wonderful day. Bye now.

好的，謝謝大家。祝您有美好的一天。再見了。

Thanks all.

謝謝大家。

The conference is now concluded.

會議到此結束。

Thank you for attending today's presentation. You may now disconnect.

感謝各位參加今天的報告會。您現在可以斷開連線了。