Prospect Capital Corporation (PSEC) 2026 Q2 法說會逐字稿

Good day and welcome to the Prospect Capital second fiscal quarter 2026 earnings release and conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 Prospect Capital 2026 會計年度第二財季財報發布與電話會議。(接線員指示) 請注意，本活動將被錄音。

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

現在我想把電話會議交給董事長兼執行長 John Barry。請開始。

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

謝謝你，Michael。今天再次與我一同參與電話會議的有：我們的總裁兼營運長 Grier Eliasek，以及我們的財務長 Kristin Van Dask。Kristin？

Thanks, John. This call contains forward-looking statements that are intended to be subject to Safe Harbor protection. Future results are highly likely to vary materially. 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.

謝謝，John。本次電話會議包含前瞻性陳述，旨在適用「安全港」保護。未來結果極有可能出現重大差異。我們不承諾更新我們的前瞻性陳述。如需更多揭露，請參閱我們的財報新聞稿以及先前提交並可於我們網站 prospectstreet.com 取得的 10-Q。

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

現在我把電話會議交回給 John。

Okay. Thank you, Kristin. In our December quarter, our net investment income was $91 million or $0.19 per common share. Our NAV was approximately $3 billion and $6.21 per common share. At December 31, our net debt to total assets ratio was 28.2%. Unsecured debt plus unsecured perpetual preferred was 85.3% of total debt plus preferred.

好的。謝謝你，Kristin。在我們的 12 月季度，淨投資收益為 9,100 萬美元，或每股普通股 0.19 美元。我們的每股淨資產價值（NAV）約為 30 億美元，或每股普通股 6.21 美元。截至 12 月 31 日，我們的淨負債對總資產比率為 28.2%。無擔保債務加上無擔保永久優先股，占總債務加優先股的 85.3%。

We are announcing monthly common shareholder distributions of $0.045 per share for each of February, March, and April. Since our IPO nearly 22 years ago through our April 2026 declared distribution, we will distribute it $4.7 billion or $21.93 per share. Our preferred shareholder cash distributions continue at their contract rates.

我們宣布普通股股東每月配息：2 月、3 月與 4 月各為每股 0.045 美元。自我們近 22 年前 IPO 以來，至我們已宣告的 2026 年 4 月配息為止，我們將累計發放 47 億美元，或每股 21.93 美元。我們對優先股股東的現金配息將持續依合約利率支付。

We continue to make progress with our strategic priorities, including: Number one, rotation of assets into our core business of first lien, senior secured middle market loans with our first lien mix increasing 728 basis points to 71.4% since June 2024. 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.

我們持續在策略優先事項上取得進展，包括：第一，將資產輪動至我們的核心業務——第一順位留置權（first lien）、高順位擔保的中型市場貸款；自 2024 年 6 月以來，我們的第一順位占比提高 728 個基點至 71.4%。我們聚焦於對 EBITDA 低於 5,000 萬美元的公司進行新投資，包括由較小規模的私募股權贊助方、獨立贊助方支持的公司，以及沒有第三方金融贊助方的公司。

Number two, reduction in second lien senior secured middle market loans, with our second lien mix decreasing 371 basis points to 12.7% since June 2024.

第二，降低第二順位留置權（second lien）高順位擔保的中型市場貸款；自 2024 年 6 月以來，我們的第二順位占比下降 371 個基點至 12.7%。

Number three, exiting subordinated structured notes with our subordinated structure notes mix, decreasing 818 basis points to near zero since June 2024.

第三，退出次順位結構性票據；自 2024 年 6 月以來，我們的次順位結構性票據占比下降 818 個基點，降至接近零。

Number four, exiting targeted equity-linked assets, including real estate, with five additional real estate properties sold in the current fiscal year. More targeted and certain corporate investments sold, including significant assets within Echelon Transportation in July and December 2025 and other exits targeted.

第四，退出特定的股權連結資產（含不動產）；本會計年度已額外出售 5 項不動產。亦出售更多具針對性且確定性的企業投資，包括於 2025 年 7 月與 12 月出售 Echelon Transportation 內的重大資產，並鎖定其他退出。

Number five, enhancement of portfolio company operations, especially where we hold equity linked investments.

第五，強化投資組合公司營運，特別是在我們持有股權連結投資的情況下。

And number six, utilization of our cost efficient floating rate revolver, which significantly matches our floating rate assets.

第六，運用我們具成本效率的浮動利率循環信貸額度（revolver），以更好地匹配我們的浮動利率資產。

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

謝謝。我現在把電話會議交給 Grier。

Thank you, John. Over the past two plus decades, Prospect Capital Corporation has invested approximately $13.1 billion in over 350 exited investments out of over $22 billion in over 450 total investments that have earned a 12% unlevered investment level gross cash IRR to Prospect Capital Corporation. This multi-decade time period includes the GFC and has been dominated in general by low prevailing market interest rates.

謝謝你，John。在過去二十多年中，Prospect Capital Corporation 在超過 450 筆、總額逾 220 億美元的投資中，已退出超過 350 筆投資，累計投資約 131 億美元，為 Prospect Capital Corporation 帶來 12%（未加槓桿、投資層級）的總現金 IRR。這段跨數十年的期間包含全球金融危機（GFC），整體而言主要處於市場利率偏低的環境。

In Prospects primary business of primary of middle market lending over the same nearly 22 year time period. Prospects exited investments, resulted in an investment level exited gross IRR of approximately 14.5%.

在 Prospect 的主要業務——中型市場放款——於同一段近 22 年期間內，Prospect 的已退出投資在投資層級的退出總 IRR 約為 14.5%。

Based on total capital invested of about $11.2 billion. In total proceeds from such exited investments of about $14.3 billion. With an annualized, realized loss rate of 0.2%.

其基於約 112 億美元的總投入資本。此類已退出投資的總回收款約為 143 億美元。年化已實現損失率為 0.2%。

In Prospects core targeted business of middle market lending to companies with less than $50 million of EBITDA. Over the same nearly 22 year time period.

在 Prospect 核心鎖定的業務——對 EBITDA 低於 5,000 萬美元公司的中型市場放款——於同一段近 22 年期間內。

Prospects exited investments resulted in an investment level exited gross IRR of approximately 17.2%. Based on total capital invested of about $6.3 billion. In total proceeds from such exited investments of about $8.3 billion with an annualized net realized loss rate in this segment of 0.1%.

Prospect 的已退出投資在投資層級的退出總 IRR 約為 17.2%。其基於約 63 億美元的總投入資本。此類已退出投資的總回收款約為 83 億美元；在此分部的年化淨已實現損失率為 0.1%。

Prospects EBITDA to interest coverage for our primary business of middle market lending is about 210%, which increases to about 230% for Prospects core targeted middle market lending to companies with less than $50 million of EBITDA.

就我們主要的中型市場放款業務而言，Prospect 的 EBITDA 對利息保障倍數約為 210%；而對 EBITDA 低於 5,000 萬美元公司的核心鎖定中型市場放款，該比率提高至約 230%。

As of December 2025, we held 91 portfolio companies across 32 different industries with an aggregate fair value of $6.4 billion. Our portfolio at cost included 2.8% of investments in software companies, which is significantly less than the 22% average across business development companies with publicly traded unsecured bonds from a recent Wall Street fixed income research report.

截至 2025 年 12 月，我們持有 91 家投資組合公司，涵蓋 32 個不同產業，合計公允價值為 64 億美元。以成本計，我們投資組合中軟體公司投資占比為 2.8%，顯著低於近期華爾街固定收益研究報告所示、具有公開交易無擔保債券之商業發展公司（BDC）平均 22% 的水準。

We primarily focus on senior and secured debt, which was 84% of our portfolio at cost as of December. Our middle market lending strategy is the primary focus of our company with such strategy as of December representing 85% of our investments at cost. An increase of 878 basis points from June 2024.

我們主要聚焦於高順位且有擔保的債務；截至 12 月，以成本計其占我們投資組合的 84%。我們的中型市場放款策略是公司的主要重點；截至 12 月，該策略以成本計占我們投資的 85%。較 2024 年 6 月增加 878 個基點。

Middle market lending comprised 100% of our originations during the December quarter with a continued prioritization of first lien senior secured loans.

在 12 月季度，我們的承作（originations）100% 來自中型市場放款，並持續優先配置第一順位高順位擔保貸款。

Investments during the quarter included follow-on investments in existing portfolio companies to support acquisitions, working capital needs, organic growth initiatives, and other objectives. We've essentially completed the exit of our subordinated structured notes portfolio.

本季度投資包括對既有投資組合公司的追加投資，以支持併購、營運資金需求、有機成長計畫及其他目標。我們基本上已完成退出次順位結構性票據投資組合。

As of December with such portfolio representing only 0.2% of our investment portfolio at cost, which represents a reduction of 818 basis points from 8.4% in June 2024.

截至12月，該投資組合按成本僅占我們投資組合的0.2%，較2024年6月的8.4%下降了818個基點。

Our real estate property portfolio at National Property REIT Corp NPRC, totaled 14% of our investments at cost as of December and continued its focus on developed and occupied cash flow multi-family investments.

我們在 National Property REIT Corp（NPRC）的不動產投資組合截至12月按成本合計占我們投資的14%，並持續聚焦於已開發且已出租、具現金流的多戶型（multi-family）投資。

Since the inception of this strategy, 14 years ago in 2012 and through December 2025, we've exited 56 property investments earning an unlevered investment level gross cash IRR of 24% in cash on cash multiple of 2.4 times.

自該策略於14年前（2012年）啟動以來，至2025年12月止，我們已退出56項不動產投資，取得未槓桿、投資層級的總現金IRR為24%，現金回收倍數（cash-on-cash multiple）為2.4倍。

We exited four property investments in the current fiscal year through December 2025. That earned an unlevered investment level gross cash IRR of 21% and cash on cash multiple of 2.4 times. NPRC exited one additional property investment after December 31, 2025, and has multiple additional properties in various stages of an exit process.

在本會計年度截至2025年12月，我們退出了四項不動產投資。該等退出取得未槓桿、投資層級的總現金IRR為21%，現金回收倍數為2.4倍。NPRC於2025年12月31日之後另退出一項不動產投資，並有多項其他資產正處於不同階段的退出流程中。

Remaining real estate property portfolio, included 54 properties and paid us an income yield of 5.4% for the December quarter, providing an opportunity for potential income enhancement from a portfolio rotation strategy.

剩餘不動產投資組合包含54項資產，於12月季度向我們支付5.4%的收益率，並提供透過投資組合輪動策略提升收益的潛在機會。

Prospects aggregate investments in NPRC included a $270 million unrealized gain as of December. We expect to continue to redeploy future real estate property exit proceeds primarily into more first lien senior secured loans with selected equity linked investments.

Prospect在NPRC的合計投資截至12月包含2.70億美元的未實現收益。我們預期未來將持續把不動產退出所得主要再部署至更多第一順位（first lien）優先擔保貸款，並搭配部分精選的股權連結型投資。

Our interest income for the 12 month period ending December 2025 was 92% of our total investment income reflecting a strong recurring revenue profile for our business. Payment and kind interest income for the last 12 month period, end of December 2025 was reduced by 46% from the 12 month period ending December 2024 and was 8.6% of total investment income for the December 2025 quarter.

截至2025年12月止的12個月期間，我們的利息收入占總投資收入的92%，反映本業具強勁的經常性收入特徵。截至2025年12月止的最近12個月，實收及實物支付（PIK）利息收入較截至2024年12月止的12個月期間下降46%，且在2025年12月季度占總投資收入的8.6%。

Non accruals as a percentage of total assets as of December stood at approximately 0.7%. Based on fair market value. Investment originations in the December quarter aggregated $80 million and consisted of 100% middle market investments with a significant majority of first lien senior secured loans. We also experienced $79 million in repayments and exits as a validation of our capital preservation objective, resulting in net repayments of $1 million.

截至12月，非應計（non-accrual）資產占總資產比例約為0.7%。係以公允市價計算。12月季度的投資承作（originations）合計8,000萬美元，100%為中型市場投資，且絕大多數為第一順位優先擔保貸款。我們亦有7,900萬美元的還款與退出，驗證我們資本保全的目標，淨還款為100萬美元。

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

謝謝。接下來我把電話交給Kristin。Kristin？

Thanks, Grier. We believe our prudent leverage, diversified access to matchbook funding, substantial majority of unencumbered assets, weighting toward unsecured fixed rate debt, and avoidance of unfunded asset commitments all demonstrate balance sheet strengths as well as substantial liquidity to capitalize on attractive opportunities. Our company has locked in a ladder of liabilities extending '26 years into the future.

謝謝你，Grier。我們認為，審慎的槓桿、分散且可匹配的資金來源、絕大多數未設抵押的資產、偏重無擔保固定利率負債，以及避免未撥付的資產承諾，皆展現了資產負債表的優勢，並具備充足流動性以把握具吸引力的機會。本公司已鎖定一個負債到期梯（ladder），將到期結構延伸至未來26年。

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，我們成功完成機構投資人發行，發行總本金約1.68億美元的優先無擔保5.5%票據，2030年到期，並於2030年12月31日到期償還。

Our unfunded eligible commitments to portfolio companies total approximately $34 million, of which $23 million are considered at our sole discretion, representing approximately 0.5% and 0.3% of our total assets as of December 2025, respectively.

我們對投資組合公司之符合資格的未撥付承諾合計約3,400萬美元，其中2,300萬美元屬於完全由我們自行決定是否動用，分別約占截至2025年12月總資產的0.5%與0.3%。

Our combined balance sheet cash and undrawn revolving credit facility commitments stood at $1.6 billion as of December. And we held $4.2 billion of our assets as unencumbered assets, representing approximately 64% of our portfolio. The remaining assets are pledged to Prospect Capital Funding, a non-recourse SPV.

截至12月，我們資產負債表上的現金與未動用循環信用額度承諾合計為16億美元。我們持有42億美元資產為未設抵押資產，約占投資組合的64%。其餘資產已質押予 Prospect Capital Funding（非追索權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.

目前我們獲得48家銀行合計21.2億美元的承諾額度，顯示放款人社群對本公司的強力支持，其多元化程度為本產業其他公司所無可比擬。

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

該融資安排將於2029年6月到期，並可循環動用至2028年6月。我們的借款定價目前仍為SOFR加2.05%。除循環額度外，我們亦可透過多元資金來源、涵蓋多種投資人類型取得資金，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. All of these types of unsecured debt have no financial covenants, no asset restrictions, and no cross defaults with our revolver.

Prospect已發行多種類型的無擔保負債，包括機構無可轉換公司債、機構可轉換公司債、零售小額債（baby bonds）以及零售計畫票據（program notes）。上述各類無擔保負債均不含財務契約條款、無資產限制，且與我們的循環額度不存在交叉違約條款。

We've 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. With so many banks and debt investors across so many unsecured and non-recourse debt tranches, we have substantially reduced our counterparty risk. At December 31, 2025, our weighted average cost of unsecured debt financing was 4.68%.

我們多次進入無擔保定期債務市場，以建立到期梯並將負債期限延長至26年，使我們的債務到期日延伸至2052年。由於有眾多銀行與債務投資人分布於多個無擔保及非追索權債務分層，我們已大幅降低交易對手風險。截至2025年12月31日，我們無擔保債務融資的加權平均成本為4.68%。

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

現在我把電話交回給John。

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

謝謝你，Kristin。我們現在開始回答問題。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（接線員指示）

Finian O'Shea, Wells Fargo.

Finian O'Shea，富國銀行。

Hey everyone, good morning. Wanted to ask on Tower, sort of a two parter. One is to the extent that, that tax refunds are higher this year, do you anticipate, that's a headwind to loan balances, and then seeing tower, it's been a really big winner for you. Is that part of the optimization strategy to say exit the equity links types of investments or is that still one of you know sort of a firm hold for now one that you definitely want to keep? Thank you.

各位早安。想就Tower提問，算是兩個部分。第一，若今年退稅金額較高，在多大程度上你們預期這會對貸款餘額造成逆風？另外，看到Tower一直是你們非常大的贏家。這是否屬於最佳化策略的一部分，也就是說退出股權連結型投資？還是說這仍是你們目前會堅定持有、確定想保留的投資之一？謝謝。

Well, hey, Finian and this is John. I would say that we want to stick with our great winners and First Tower is absolutely one of them. We have a fabulous CEO there. Frankly, be very hard to find a better CEO. So we have no current plans to do anything but continue to work with Frank. Grier?

嗯，嗨，Finian，我是 John。我會說，我們希望繼續持有我們表現最好的優勝標的，而 First Tower 絕對是其中之一。那裡有一位非常出色的執行長。坦白說，很難找到更好的執行長。所以我們目前沒有任何計畫要做別的事，只會繼續與 Frank 合作。Grier？

Sure. Thank you for your questions, Finian. On the second one on potentially exiting power, we have no such plans as John mentioned. Recall that we have substantial tax advantages as a regulated investment company under subchapter M, paying no income taxes, as a business development company.

當然。謝謝你的提問，Finian。關於第二個問題、是否可能退出 power（業務），如 John 所提到的，我們沒有這樣的計畫。請記得，作為依據 M 分章（subchapter M）的受監管投資公司（RIC），以及作為商業發展公司（BDC），我們享有可觀的稅務優勢，不需繳納所得稅。

And the income generated by First Tower is quite favorable good income under our tax regime. So we're able to hold First Tower as a tax partnership rather than a C corporation, thereby avoiding an extra level of taxation.

而 First Tower 所產生的收入，在我們的稅制下屬於相當有利的良好收入。因此，我們能以稅務合夥（tax partnership）而非 C 型公司（C corporation）的形式持有 First Tower，從而避免額外一層課稅。

Any prospective buyer of tower, given its scale, would, quite likely either B or a C Corp or have potential future plans to maybe IPO the business to become, and that would require a C Corp under the tax law which would immediately create significant tax drag. So that's a way of saying that we are the logical lowest cost of capital, most tax efficient owner of that business.

任何潛在的 tower（業務）買家，考量其規模，很可能不是 B（型架構）就是 C 型公司，或未來可能計畫將該業務 IPO 成為（公司），而依稅法那將需要採用 C 型公司架構，這會立刻造成顯著的稅負拖累（tax drag）。換句話說，我們是該業務在資本成本上最合乎邏輯的最低成本、且最具稅務效率的持有人。

On top of it, it's a very yield strategy that we like in our business whenever we open up a new branch it has an expected IRR typically well over 30%. It's attractive income type of business, with low cost third-party ABL financing that's going lower still enhancing the yield as so far continues to drop, also part of the forward curve.

此外，這是一個我們在業務中很喜歡的高收益策略：每當我們開設一個新據點，預期 IRR 通常遠高於 30%。這是一種具吸引力的收益型業務，搭配低成本的第三方 ABL（資產基礎貸款）融資，而該融資成本還在下降，進一步提升收益；到目前為止，隨著利率持續下滑（也反映在遠期曲線的一部分），這種效果更明顯。

The business is also firing on all cylinders with in recent periods record low on a multi-decade basis delinquencies, record low on a multi-decade basis, charge-offs. The company has optimized its strategy, not over expanding, but expanding prudently. And thoughtfully, into new states and, new offices within existing and new states, Florida and Tennessee, for example, are significant opportunities for expansion on top of Texas which has been a more recent area for expansion.

該業務也正全速運轉，近期在逾期率方面創下數十年來的歷史新低，在呆帳核銷（charge-offs）方面也創下數十年來的新低。公司已優化其策略，不是過度擴張，而是審慎擴張。並且有計畫地進入新州，以及在既有州與新州設立新辦公室；例如佛羅里達州與田納西州在德州之外，都是重要的擴張機會，而德州則是較近期的擴張重點區域。

So the business is doing well and again we have no plans to rotate out of it. In terms of your first question from a tax refund standpoint, yes, the dynamic of consumers borrowing money for holiday spending in the December quarter and then repaying some of those borrowings in the first half of the following calendar year based on tax refunds is not a new phenomenon at all that's, been the case for decades, creates a little bit of seasonality which is fine and not problematic.

因此該業務表現良好，我們再次強調，沒有計畫將其輪動退出。至於你第一個關於退稅（tax refund）的問題，是的，消費者在 12 月季度為了節慶支出而借款，並在下一個曆年的上半年依靠退稅償還部分借款，這種動態一點也不新鮮；這種情況已持續數十年，會帶來些許季節性，但這是可以接受的，也不構成問題。

I hadn't heard that tax refunds would necessarily be, abnormally large or cause any distortions to tower's business in any way. And of course there are multiple drivers of consumer demand, not just holiday spending, but other aspects as well, including what's going on in the bank and non-bank, borrower and lender markets. There is a very high barrier to entry. In the non-bank installment finance business, there's not a whole lot of new lending going on to new entrants.

我沒有聽說退稅一定會異常偏大，或會以任何方式對 tower 的業務造成扭曲。當然，消費者需求有多重驅動因素，不僅是節慶支出，還包括其他面向，例如銀行與非銀行的借款人與放款人市場的情況。這個領域的進入門檻非常高。在非銀行分期金融（installment finance）業務中，新的進入者並沒有太多新增放款活動。

This is a fairly well defined existing group of banks that are lenders to that business and don't tend to --. From our observation, be that desirous of expanding into new entrants but rather sticking with incumbents, creating a benefit to being already in that business with an established bank group and a history in the case of tower that spans over 40 years.

這是一個相當明確、既有的銀行群體，作為該業務的放款方，而且通常不會--。依我們觀察，他們並不太渴望擴張到新的進入者，反而更傾向與既有業者合作；這使得已在該業務中、擁有既定銀行團並具備歷史紀錄的公司受益。以 tower 為例，其歷史已超過 40 年。

So, we see strong demand, we also see a phenomenon in which Tower and other companies have determined this over time. Tower is not alone in this, and some of our other companies have also optimized on this basis. The best indicator you have of consumer credit is your existing customers and your existing credit experience with those customers. So as they demonstrate a strong history over time of repayment and delivering, providing additional financing to those solid credit costs in the form of larger loans becomes a very smart way to enhance profitability, not the only way, but a meaningful driver to avoid. Potential charge-offs or reduce that risk for new borrowers for which one does not necessarily have a prior credit experience.

因此，我們看到強勁需求；同時也看到一個現象，Tower 與其他公司長期以來已經確認了這點。Tower 並非唯一如此，我們其他一些公司也在此基礎上做了最佳化。你能掌握的消費者信用最佳指標，是你的既有客戶，以及你與這些客戶的既有信用經驗。因此，當他們隨時間展現出良好的還款紀錄與履約表現時，以更大額貸款的形式向這些信用良好的客戶提供額外融資，是提升獲利能力非常聰明的方法——不是唯一的方法，但確實是重要的驅動因素——可用來避免潛在的核銷（charge-offs），或降低對新借款人的風險，因為對新借款人未必有既往的信用經驗可供參考。

So hopefully that's a little bit of context on First Tower which we first invested in in 2012, 2013. Time frame, so we are going on '12-'13, 14 years roughly of a history with that management team which is outstanding, which is very well aligned with us, has made additional growth investments in the business right alongside us and we couldn't be more pleased with how that business and team is performing.

希望以上能提供一些關於 First Tower 的背景。我們最初在 2012、2013 年投資。以時間來看，我們與該管理團隊合作大約已 12、13、14 年左右；他們非常出色，與我們的利益高度一致，也與我們一起在業務上投入額外的成長投資。我們對該業務與團隊的表現感到非常滿意。

It's great. I appreciate the color. Follow-up on the press conversions are stable. One thing you've touched on in the past, you've given us color on that market. In terms of impacts from other products in the non-traded channel. So today, as we all know there are a lot of headlines sort of hitting the larger non-traded BDC market. Does that have an impact, good or bad, on your convertible press product line?

很好。謝謝你提供這些細節。追問一下，關於 press conversions（轉換）是穩定的。你過去曾提到過一點，也向我們說明過那個市場的情況。就非交易通路（non-traded channel）中其他產品的影響而言。所以今天，如我們所知，較大型的非交易 BDC 市場有很多新聞標題。這對你們的 convertible press 產品線有沒有影響，不論是正面或負面？

I mean, I'm not really directly. I think that interest rates are a meaningful factor, Finian, and in the current environment folks are, some folks are, deprioritizing floating rate investments or vehicles that have significant underlying floating rate exposure. Everybody likes to float up and get a higher yield. They don't necessarily like to float down and get paid less, right?

我的意思是，並不是很直接。我認為利率是一個重要因素，Finian；在目前環境下，有些人正在降低對浮動利率投資或底層具有顯著浮動利率曝險之工具的優先順序。大家都喜歡利率往上浮、拿到更高收益。但他們不一定喜歡利率往下浮、拿到更少的報酬，對吧？

So -- you see that dynamic not just with non-traded BDCs that of course rode the wave up from 6 yields to 10 yields to investors and now have been riding the wave a bit downward with distribution reductions based on underlying loans, paying less with prevailing so for going down, you see that dynamic with interval funds and anything that's floating rate in nature.

所以——你看到這種動態不只出現在非交易 BDC 上；它們當然曾搭上收益率從 6% 升到 10% 的浪潮，提供給投資人，而現在又隨著分配金下調而有點走下坡，因為底層貸款在目前利率下行、收益變少；你也會在區間基金（interval funds）以及任何本質上屬於浮動利率的產品上看到同樣的動態。

I think it makes fixed rate investments to our sector, no matter what that form might be, all the more compelling, and I'm talking not just about fixed rate preferred, which is essentially what all our extant preferred are and newly issued preferred, but also bonds for BDCs.

我認為，無論以何種形式，對我們這個產業的固定利率投資都因此更具吸引力。我說的不僅是固定利率優先股——基本上我們現有的所有優先股以及新發行的優先股都是如此——也包括 BDC 的債券。

So prioritization of investors from what we see is rotating back towards fixed rate. And wanting to lock in. A nice yield, should rates continue to decline, at least in a short-term basis as evidenced by the forward curve. So I think that's a non-trivial dynamic at play here which maybe keeps folks in their seats, when it comes to sitting on fixed rate paper.

因此，從我們觀察到的情況來看，投資人的偏好正輪動回到固定利率。並希望鎖定。一個不錯的殖利率，若利率持續下滑，至少從短期角度來看，正如遠期曲線所顯示的那樣。所以我認為這是一個不可忽視的動態，可能會讓大家在持有固定利率票券方面更願意繼續坐穩。

That's helpful as well, thanks. And I try to stay disciplined according to convention. But if I could throw in a bonus question. You guys have avoided software historically, which is you know pretty favorable to you at this point that's causing a lot of the market consternation, curious if you have any view on those sort of -- that sort of overhang being too heavy, is it time to maybe pivot into enterprise software that's sort of a mainstay of a lot of your BDC peers portfolios, and that'll be all for me. Thanks.

這也很有幫助，謝謝。而且我會盡量依照慣例保持自律。但如果我可以再加問一個問題。你們過去一直避開軟體產業，而就目前而言，這其實對你們相當有利，因為這正是造成市場許多憂慮的來源；我想知道你們對於那種——那類壓力是否過重有沒有看法？是否到了可能轉向企業軟體的時候？企業軟體算是你們許多 BDC 同業投資組合中的主力配置；我就問到這裡。謝謝。

Sure. Hey, Finian, -- hey, just second. Hey Finian, thank you for your questions. I always hesitate to comment on what other people are doing, their investment strategies. Whether I have an opinion or not. I'm very focused on our company. So I really don't know what's happening or going to happen with AI software and I don't think anybody else does. So I just want to preface anything that anyone has to say here, with intellectual modesty and admitting that not only am I unable to forecast what might be happening in that sector. I have no firsthand information about what any of our competitors are doing. So that's my two sense on that, an admission of intense ignorance if you will. All right, Grier.

當然。嗨，Finian，——嗨，等一下。嗨 Finian，謝謝你的提問。我一向很猶豫去評論別人在做什麼、他們的投資策略。不管我是否有意見。我非常專注在我們公司本身。所以我真的不知道 AI 軟體會發生什麼事，我想也沒有人知道。因此我想先為接下來任何人要說的話做個前提：保持智識上的謙遜，並承認我不僅無法預測該產業可能發生什麼。我也沒有任何第一手資訊了解我們任何競爭對手在做什麼。所以這就是我對此的兩分錢看法——如果你願意這麼說，就是坦承自己非常無知。好，Grier。

Sure. Yeah, we can only speak as to our own underwriting and thoughts, it's really a big difference in private credit compared to the broadly syndicated market for what the exposures are for software in the two, in the broadly syndicated market, there's, non-trivial amount of software, I think, 10% or so, give or take, the last I saw.

當然。是的，我們只能就自身的承作（underwriting）與想法來談；私募信貸與廣泛聯貸市場在軟體曝險上確實有很大差異。在廣泛聯貸市場中，軟體的比重不小，我記得上次看到大約是 10% 左右，上下浮動。

And in that market, they tend to be cash flowing software companies, and the reason for that is you need to get a rating. That's a very ratings centric market. With the BDC market less rating centric. And what a lot of folks have done is to invest in annual recurring revenue loans that have less than a 1.0 times fixed charge coverage.

而在那個市場裡，通常是有現金流的軟體公司；原因在於你需要取得評級。那是一個非常以評級為核心的市場。相較之下，BDC 市場較不以評級為核心。而許多人所做的是投資於年度經常性收入（ARR）貸款，其固定費用覆蓋倍數低於 1.0 倍。

Those loans when you go get a rating, whether it's a credit estimate or private rating or what have you, tend to come back as CCCs and you know the lower type of rating.

這些貸款在你去取得評級時——不論是信用估計、私募評級或其他——通常會被評為 CCC，也就是較低等級的評級。

And of course there's risk attached to that because there's no cash flow exit when you're below 1.0 times fixed charge coverage you're consuming cash and you need growth of the business to enable repayment, coupled with liquidity of a burgeoning software market.

當然，這伴隨風險，因為當固定費用覆蓋倍數低於 1.0 倍時，沒有靠現金流退出（cash flow exit）的路徑；你是在消耗現金，必須依賴業務成長來促成償還，同時還要搭配一個蓬勃軟體市場的流動性。

And that was always antithetical or has been to date to our underwriting culture of seeking multiple sources of repayments, seeking downside protection, principal protection in the loans we make. We'd like to see delevering occur from the underlying cash flow available for debt service out of the business.

而這一直與——或截至目前一直與——我們的承作文化相牴觸；我們尋求多重還款來源、尋求下行保護，以及我們所做貸款的本金保護。我們希望看到去槓桿（delevering）能夠透過企業可用於償債服務的基礎現金流來實現。

We historically have underwritten with round of 1.5 times fixed charge coverage or better with each deal and those annual recurring revenue or ARR deals never offered those and we thought, looked quite risky from our point of view so we passed on every single one of them. We've never done a single such deal.

我們過去在每筆交易的承作上，歷來都以固定費用覆蓋倍數約 1.5 倍或更高為標準；而那些年度經常性收入（ARR）交易從未提供過這樣的條件，從我們的角度看風險相當高，所以我們每一筆都選擇不做。我們從未做過任何一筆這類交易。

We understand that others in the industry have pursued that sector, and we'll see what happens. I don't think we're in a position to prognosticate on what's going to happen with AI impacting those software companies. We'll just note that if anyone, whether an equity investor or a bond investor, is worried about software exposure. They need not worry about it when it comes to Prospect Capital Corporation. We are the absolute lowest with software exposure at less than 3% compared to the BDC average, which is around 22% for bond issuers.

我們理解產業內其他人曾追逐那個領域，接下來就看會發生什麼。我不認為我們有能力去預測 AI 對那些軟體公司會造成什麼影響。我們只想指出，如果有人——不論是股權投資人或債券投資人——擔心軟體曝險。那在 Prospect Capital Corporation 這裡不必擔心。我們的軟體曝險是絕對最低的，低於 3%；相較之下，發債的 BDC 平均約為 22%。

Thank you, Finian. Appreciate the questions.

謝謝你，Finian。感謝你的提問。

Seeing no additional questions, this concludes our question-and-answer session. I would like to turn the conference back over to John Berry for any closing remarks.

看來沒有其他問題，本次問答環節到此結束。我想把會議交回給 John Berry，請他做任何結語。

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

好的。那麼，謝謝各位。祝大家今天愉快。再見。

The conference is now concluded. Thank you for attending today's presentation. You may now disconnect.

本次電話會議現在結束。感謝您參加今天的簡報。您現在可以掛線。