Sixth Street Specialty Lending Inc (TSLX) 2020 Q1 法說會逐字稿

Good morning, and welcome to TPG Specialty Lending, Inc.'s March 31, 2020 Quarterly Earnings Conference Call.

早安，歡迎參加 TPG Specialty Lending, Inc. 於 2020 年 3 月 31 日舉行的季度財報電話會議。

Before we begin today's call, I would like to remind our listeners that remarks made during the call may contain forward-looking statements. Statements other than the statements of historical facts made during this call constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as result of a number of factors, including those described from time to time in TPG Specialty Lending, Inc.'s filings with the Securities and Exchange Commission. The company assumes no obligation to update any such forward-looking statements.

在我們開始今天的電話會議之前，我想提醒我們的聽眾，電話會議期間的言論可能包含前瞻性陳述。本次電話會議中除歷史事實陳述外的其他陳述均構成前瞻性陳述，並非對未來業績或結果的保證，並且涉及許多風險和不確定性。由於多種因素的影響，實際結果可能與前瞻性陳述中的結果有重大差異，包括 TPG Specialty Lending, Inc. 向美國證券交易委員會提交的文件中不時描述的因素。該公司不承擔更新任何此類前瞻性陳述的義務。

Yesterday after the market closed, the company issued its earnings press release for the first quarter ended March 31, 2020, and posted a presentation to the Investor Resources section of its website, www.tpgspecialtylending.com. The presentation should be reviewed in conjunction with the company's Form 10-Q filed yesterday with the SEC. TPG Specialty Lending, Inc.'s earnings release is also available on the company's website under the Investor Resources section. Unless otherwise noted, all performance figures mentioned in today's prepared remarks are as of and for the first quarter ended March 31, 2020.

昨天收盤後，該公司發布了截至 2020 年 3 月 31 日的第一季財報新聞稿，並在其網站 www.tpgspecialtylending.com 的投資者資源部分發布了簡報。該演示文稿應與該公司昨天向 SEC 提交的 10-Q 表格一起進行審查。TPG Specialty Lending, Inc. 的收益報告也可在該公司網站的投資者資源部分找到。除非另有說明，今天準備好的評論中提到的所有業績數據均截至 2020 年 3 月 31 日的第一季。

As a reminder, this call is being recorded for replay purposes. I will now turn the call over to Josh Easterly, Chief Executive Officer of TPG Specialty Lending, Inc.

謹此提醒，本次通話將會被錄音以供重播。我現在將電話轉給 TPG Specialty Lending, Inc. 執行長 Josh Easterly。

Thank you. Good morning, everyone, and thank you for joining us. With me today is my partner and our President, Bo Stanley; and our CFO, Ian Simmonds. First and foremost, all of us at TSLX and our broader Sixth Street organization hope that you and your loved level ones are safe and healthy. We particularly want to express our gratitude to all the health care professionals, first responders and essential business workers for serving our communities during this challenging time.

謝謝。大家早安，感謝您加入我們。今天與我在一起的是我的合作夥伴兼我們的總裁 Bo Stanley；和我們的財務長伊恩·西蒙茲。首先也是最重要的，TSLX 以及更廣泛的第六街組織的所有人都希望您和您所愛的等級人員安全健康。我們特別要向所有醫療保健專業人員、急救人員和重要的商業工作者表示感謝，感謝他們在這個充滿挑戰的時期為我們的社區提供服務。

In this environment, one of our top priorities has been the health and well-being of our people, which in turn allows us to best protect and serve our shareholders' capital. Post-implementation of our business continuity plan in early March, we and our broader Sixth Street platform have been operating at full capacity with nearly all of our global team members working remotely. Our organization has quickly adapted to this new environment, maintaining a high level of collaboration and communication, both internally and externally that is essential to the success of our business. Over the past few months, we have proactively issued public letters to our stakeholders with real-time updates on our business, balance sheet and preliminary financial results. We hope you found them to be helpful and consistent with our culture of transparency and maintaining an ongoing dialogue with our stakeholders.

在這種環境下，我們的首要任務之一就是員工的健康和福祉，這反過來又使我們能夠最好地保護和服務股東的資本。在 3 月初實施業務連續性計劃後，我們和更廣泛的第六街平台一直在滿載運營，幾乎所有全球團隊成員都在遠端工作。我們的組織迅速適應了這種新環境，在內部和外部保持高水準的協作和溝通，這對於我們業務的成功至關重要。在過去的幾個月裡，我們主動向利害關係人發出公開信，即時更新我們的業務、資產負債表和初步財務表現。我們希望您發現它們對您有所幫助，並且符合我們的透明度文化以及與利害關係人保持持續對話的文化。

While no one could have predicted the timing and nature of events leading to this sudden economic downturn, we believe we are entering the next phase from a position of strength, given the actions we have taken over the past few years. As Bo and Ian will each discuss later in more detail, our forward planning and risk management framework resulted in what we believe to be a defensive portfolio and robust liquidity, funding and capital position that we have today. In the immediate days and weeks following the market unraveling, we shifted our focus to building out a daily roll forward of our balance sheet, capital and liquidity positions as part of our risk management discipline in this environment. We believe only with a clear understanding of these constraints, are we able to make sound capital allocation decisions on behalf of our stakeholders. I'm sure with hindsight, which is always 2020, we would have done things differently. But those insights will provide us valuable learnings that will benefit us and our shareholders.

雖然沒有人能夠預測導致這次突然的經濟衰退的事件的時間和性質，但考慮到我們過去幾年採取的行動，我們相信我們正在進入下一階段。正如 Bo 和 Ian 稍後將分別更詳細地討論的那樣，我們的前瞻性規劃和風險管理框架造就了我們認為的防禦性投資組合以及強勁的流動性、融資和資本狀況。在市場崩盤後的幾天和幾週內，我們將重點轉向建立資產負債表、資本和流動性頭寸的每日展期，作為我們在這種環境下風險管理紀律的一部分。我們相信，只有清楚了解這些限制因素，我們才能代表利害關係人做出合理的資本配置決策。我確信事後看來，無論是 2020 年，我們都會採取不同的做法。但這些見解將為我們提供寶貴的經驗教訓，使我們和我們的股東受益。

With that context, let me turn to our first quarter results, which are consistent with the preliminary earnings results we provided on April 16. After the market closed yesterday, we reported first quarter net investment income per share of $0.51, which corresponds to an annualized return on equity of 12% and a net loss per share of $0.80. Our net loss this quarter was driven by unrealized losses as we reflected the impact of credit spreads widening on the valuation of our portfolio. Note that this practice follows the fair valuation of securities requirement for BDCs under the '40 Act, which in my -- which in our mind includes incorporating markets spreads for valuation of portfolio of securities and is therefore, something we expect all BDC peers will be doing as well. Since March 31, LCD first lien and second lien spreads have tightened by 108 and 91 basis points, respectively, retracing 28% of the Q1 spread widening for first lien and 13% for second lien. Assuming this holds an absent permanent credit losses related to the Q1 unrealized losses from the spread widening, we would expect to see reversals of these unrealized losses over time, effectively pushing earnings into future periods, holding all else equal.

在此背景下，讓我談談我們第一季的業績，該業績與我們 4 月 16 日提供的初步收益結果一致。昨天收盤後，我們報告第一季每股淨投資收益為 0.51 美元，相當於年化股本回報率為 12%，每股淨虧損為 0.80 美元。我們本季的淨虧損是由未實現損失造成的，因為我們反映了信貸利差擴大對我們投資組合估值的影響。請注意，這種做法遵循「40 法案」對 BDC 證券公平估值的要求，在我看來，該法案包括納入證券投資組合估值的市場利差，因此，我們預計所有 BDC 同行都會這樣做也做。自3月31日以來，LCD第一留置權和第二留置權權利差分別收窄108和91個基點，回撤第一季第一留置權和第二留置權差擴大的13 %。假設不存在與利差擴大導致的第一季未實現損失相關的永久性信用損失，我們預計這些未實現損失會隨著時間的推移而逆轉，從而有效地將收益推至未來時期，而其他條件不變。

In Q1, our net asset value per share declined by approximately 7.1% from $16.77, which includes the impact of the Q4 supplemental dividend, to $15.57. Inclusive of the impact of the $0.50 aggregate special dividends that were previously declared and payable in Q2, pro forma net asset value per share at quarter end was $15.07. As mentioned, the primary driver of the decline was $1.21 per share of unrealized losses from the impact of credit spread widening on the valuation of our portfolio. Ian will walk through the other drivers of this quarter's net asset value bridge in more detail, but I'd like to reiterate our process in arriving at this quarter's portfolio mark given its importance as a risk management tool for our business.

第一季度，我們的每股淨值下降了約 7.1%，從 16.77 美元（包括第四季度補充股息的影響）降至 15.57 美元。包括先前宣布並在第二季度支付的 0.50 美元總計特別股息的影響，預計季度末每股資產淨值為 15.07 美元。如前所述，下跌的主要驅動因素是由於信用利差擴大對我們投資組合估值的影響而導致每股 1.21 美元的未實現損失。伊恩將更詳細地介紹本季資產淨值橋樑的其他驅動因素，但鑑於其作為我們業務風險管理工具的重要性，我想重申我們達到本季投資組合目標的過程。

As we shared in detail in our recent letters, our valuation framework begins by incorporating quarterly market spread movements into the valuation of all of our investments. The next step overlays additional adjustments to the valuation for each investment, as applicable, reflecting their respective sector, the existence of a LIBOR floor, expected weighted average life, and other borrower-specific factors such as over or underperformance.

正如我們在最近的信件中詳細分享的那樣，我們的估值框架首先將季度市價差變動納入我們所有投資的估值中。下一步將對每項投資的估值進行額外調整（如適用），反映各自的行業、LIBOR 下限的存在、預期加權平均壽命以及其他借款人特定因素（例如表現優異或表現不佳）。

Let me walk through each of these in more detail. The first and most significant factor mitigating the impact of the market spread movement is the relative short weighted average life of our portfolio. At quarter end, compared to the approximate 5-year weighted average remaining contractual life of the broadly syndicated loan market, our portfolio's weighted average remaining contractual life was 35% shorter at approximately 3.2 years. The features we underwrite into our loan agreements, such as approximately 2 financial covenants per loan agreement on a weighted average basis, effective volume control of 83% of our debt investments and other indebtedness and restricted payment limitations have the effect of making the actual life of our investments even shorter. By contrast, approximately 80% of the broadly syndicated market is covenant-light, along with greater indebtedness and restricted payment flexibility in underlying loan agreements. Note that approximately 8% of our portfolio this quarter, namely Ferrellgas and Nektar had a very short weighted average life, given either contractual maturity or visibility on expected payoff post quarter end. All these factors combined resulted in a weighted average life of our portfolio that was shorter than 3.2 years remaining contractual life at March 31. Consistent with our expectations, Ferrell and Nektar were both fully repaid post quarter end.

讓我更詳細地介紹每一個。減輕市場利差變動影響的第一個也是最重要的因素是我們投資組合的加權平均壽命相對較短。截至季末，與廣泛銀團貸款市場的約 5 年加權平均剩餘合約期限相比，我們投資組合的加權平均剩餘合約期限縮短了 35%，約為 3.2 年。我們在貸款協議中所承諾的特徵，例如每份貸款協議按加權平均計算約2 項財務契約、對83% 的債務投資和其他債務的有效數量控制以及限制性付款限制，使貸款的實際壽命得以實現。我們的投資甚至更短。相較之下，約 80% 的廣泛銀團市場的契約較少，而且基礎貸款協議中的債務更大，支付彈性也受到限制。請注意，考慮到合約期限或季末後預期回報的可見性，本季我們投資組合中約 8%（即 Ferrellgas 和 Nektar）的加權平均壽命非常短。所有這些因素綜合起來，導致我們投資組合的加權平均壽命短於 3 月 31 日剩餘合約壽命 3.2 年。與我們的預期一致，Ferrell 和 Nektar 在季度末均獲得全額償付。

On to sector mix. At quarter end, approximately 70% of our portfolios were in less credit spread sensitive sectors of the overall loan market. Therefore, by incorporating sector adjustments to the market spreads that we applied to each of our investments, this mitigated the overall decline in the fair value of our portfolio. Finally, we have LIBOR floors across 95.1% of our debt investments, which averaged 1.2% at quarter end compared to a floor of approximately 35 basis points for the broadly syndicated market.

關於部門組合。截至季末，我們約 70% 的投資組合屬於整個貸款市場中信用利差較不敏感的領域。因此，透過對我們每項投資所應用的市場利差進行產業調整，這緩解了我們投資組合公允價值的整體下降。最後，我們 95.1% 的債務投資都有 LIBOR 下限，季末平均為 1.2%，而廣泛銀團市場的下限約為 35 個基點。

As discussed, these floors also help us -- allow us to mitigate, to a degree, the impact of spread widening on the fair value of our investments. Reflecting on our valuation process, which is the same it has been since our inception, we believe that we have in place a framework that allows us to incorporate market signals regarding risks and opportunities in our portfolio, which help us guide overall investment and risk management decision-making process.

如同所討論的，這些底線也可以幫助我們──讓我們在某種程度上減輕利差擴大對我們投資公允價值的影響。回顧我們自成立以來的估值流程，我們相信我們已經建立了一個框架，使我們能夠將有關風險和機會的市場訊號納入我們的投資組合中，這有助於我們指導整體投資和風險管理做決定的過程。

Moving back to this quarter's highlights. Yesterday, our Board declared the second quarter base dividend of $0.41 per share to shareholders of record as of June 15, payable July 15. Given the decline in net asset value this quarter, in accordance with the existing mechanics of our dividend framework, no supplemental dividend was declared related to Q1 earnings. This was determined by the NAV limiter on our supplemental dividend formula, which allows for no more than $0.15 decline in net asset value per share over the current and preceding quarter, inclusive of the impact of any supplemental or special dividends.

回到本季的亮點。昨天，我們的董事會宣布向截至 6 月 15 日登記在冊的股東發放每股 0.41 美元的第二季度基本股息，並於 7 月 15 日支付。鑑於本季資產淨值下降，根據我們現有的股息框架機制，不宣派與第一季獲利相關的補充股息。這是由我們的補充股息公式的資產淨值限制決定的，該公式允許當前和上一季度每股資產淨值下降不超過 0.15 美元，包括任何補充或特別股息的影響。

As it relates to our base dividend, which we increased at the quarterly level from $0.39 to $0.41 per share at the beginning of this year, we determined this new level by stress testing the earnings power of our portfolio across a variety of economic and operating scenarios. We do this because we view our base dividend as an ongoing cash liability in a world that can shift, sometimes unpredictably—as it did this past March. Therefore, we have a strong level of confidence that our base dividend can be supported by the core earnings power of our portfolio in the near to medium term. And we currently have no plans to change our previously articulated dividend framework.

由於它與我們的基本股息有關，今年年初我們將季度股息從每股0.39 美元增加到0.41 美元，因此我們通過對各種經濟和運營情景下投資組合的盈利能力進行壓力測試來確定這一新水平。 。我們這樣做是因為我們將基本股利視為一種持續的現金負債，而這個世界可能會發生變化，有時甚至是不可預測的——就像今年三月的情況一樣。因此，我們非常有信心，我們的基本股利可以在中短期內得到我們投資組合的核心獲利能力的支持。我們目前沒有計劃改變我們先前闡明的股息框架。

With that, I'd like to turn the call over to Bo to walk through our portfolio activities.

說到這裡，我想將電話轉給 Bo 來介紹我們的投資組合活動。

Thanks, Josh. Given the rapid market downturn in March and low visibility surrounding the duration of the economic shutdown, middle market M&A activity has since come to a halt. In the liquid loan markets, there was significant volatility during March as retail loan funds looked to liquidate assets in order to meet daily redemption requests. This supply surplus drove significant price declines across both higher quality and low-quality credits and resulted in the steepest monthly price decline in leveraged loan markets since the 2008-2009 financial crisis. Against this backdrop, our Q1 originations activity was light as expected, with $134 million of commitments and $80 million of fundings across 3 new and 4 existing portfolio companies. Of the 3 new investments, which comprise 88% of the fundings this quarter, 2 were completed in January prior to the market turbulence. The other new investment was Vertafore, a small opportunistic secondary market purchase that we made in late March at a price of $78 that is now trading around $91.

謝謝，喬許。鑑於三月市場的快速下滑以及經濟停擺持續時間的可見度較低，中間市場併購活動此後陷入停滯。在流動性貸款市場，由於零售貸款基金尋求清算資產以滿足每日贖回要求，因此 3 月出現了大幅波動。這種供應過剩導致高品質和低品質信貸的價格大幅下跌，並導致槓桿貸款市場出現自 2008-2009 年金融危機以來最大幅度的月度價格跌幅。在此背景下，我們第一季的發起活動如預期般清淡，3 家新投資組合公司和 4 家現有投資組合公司的承諾資金為 1.34 億美元，資金為 8,000 萬美元。3 項新投資佔本季資金的 88%，其中 2 項是在市場動盪前的 1 月完成的。另一項新投資是 Vertafore，這是我們在 3 月底進行的小型機會主義二級市場購買，售價為 78 美元，目前交易價格約為 91 美元。

Similar to the market volatility we experienced in late 2015 to early 2016, we believe there will be outsized risk return opportunities with respect to the secondary markets in companies and sectors where we have a differentiated view. You may recall that following the 2015-2016 period, we had approximately $260 million of liquid debt and holdings in our portfolio as we purchased certain loans in the secondary markets at a weighted average price in the high 80s and rotated out of them as they pull back to par. Different from the 2015-2016 period, we think the opportunity set for both opportunistic liquid investments and our direct origination strategy in this downturn will be longer term in nature given the amount of capital and economic destruction this pandemic will ultimately inflict. We believe there will be significant need for us to provide capital to companies and management teams as the full impact of COVID-19 rolls through different parts of the U.S. economy at varying speeds and time horizons. Based on our observations, the leveraged loan market is currently only open for select issuers, and most of our BDC peers have limited ability to deploy capital into new investments. Given our strong liquidity and capital position combined with the significant dry powder across our Sixth Street platform, we are very optimistic about our ability to create highly attractive risk adjusted returns for our shareholders in the period ahead.

與我們在 2015 年底至 2016 年初經歷的市場波動類似，我們相信，在我們持有差異化觀點的公司和行業的二級市場上，將會存在巨大的風險回報機會。您可能還記得，在2015 年至2016 年期間，我們的投資組合中約有2.6 億美元的流動債務和持有量，因為我們以80 年代的加權平均價格在二級市場購買了某些貸款，並在貸款退出時將其轉出。回到標準桿。與2015-2016 年期間不同，我們認為，考慮到這場大流行最終將造成的資本規模和經濟破壞，我們認為，在這次低迷時期，為機會主義流動性投資和我們的直接起源策略提供的機會本質上將是長期的。我們相信，隨著 COVID-19 的全面影響以不同的速度和時間跨度席捲美國經濟的不同部分，我們將非常需要向公司和管理團隊提供資金。根據我們的觀察，槓桿貸款市場目前僅對特定發行人開放，大多數 BDC 同行將資金部署到新投資的能力有限。鑑於我們強大的流動性和資本狀況，加上第六街平台上的大量乾粉，我們對未來一段時間內為股東創造極具吸引力的風險調整回報的能力非常樂觀。

Moving to this quarter's activity. There were $212 million of paydowns across 4 full and 2 partial realizations. This combined with our Q1 fundings, resulted in net portfolio repayments of $132 million for the quarter. Our repayments in Q1 included our first lien loan for Curriculum Associates at a price of $103, our ABL FILO term loan for Sears at a blended price of $101.3, and the majority of our ABL DIP loan for Forever 21 along with the recognition of our contractual economics. Activity-related income for these repayments supported the overearning of our base dividend this quarter. As Josh mentioned, post quarter end, we received the full repayment of our $85 million principal value investment in Ferrellgas at a price of $106.1 compared to a fair value mark of $104.4 at March 31. Our $75 million principal value investment in Nektar was repaid at par.

轉到本季的活動。4 項全部實現和 2 項部分實現的付款額為 2.12 億美元。加上我們第一季的資金，該季度投資組合淨償還額為 1.32 億美元。我們在第一季的還款包括我們為Curriculum Associates 提供的第一筆留置權貸款，價格為103 美元，為Sears 提供的ABL FILO 定期貸款，混合價格為101.3 美元，以及為Forever 21 提供的大部分ABL DIP 貸款以及對我們合約的認可。經濟學。這些還款的活動相關收入支持了我們本季基本股利的超額獲利。正如 Josh 所提到的，季度末後，我們以 106.1 美元的價格收到了對 Ferrellgas 的 8500 萬美元本金投資的全額償還，而 3 月 31 日的公允價值為 104.4 美元。我們對 Nektar 的 7500 萬美元本金投資已按面值償還。

This quarter, the weighted average total yield on our debt and income-producing securities at amortized cost was 9.9%, a decrease of approximately 80 basis points from the prior quarter. Approximately 50 basis points of this was related to the movement in rates during the quarter as central banks lowered target interest rates to near 0 to help stem the financial impact of COVID-19. Quarter-over-quarter, the 3-month LIBOR decreased by 46 basis points from 1.91% to 1.45% and the 1-month LIBOR decreased by 77 basis points from 1.76% to 0.99%. The remaining 30 points of downward impact to this quarter's portfolio yield was primarily driven by new versus exited investments. While this quarter's weighted average total yield on new investments at amortized cost was relatively robust at 11.7% supported by higher weighted average spread, this was offset by effective yield of 12.4% on exited investments due to Forever 21. Excluding Forever 21, yield on exited investments and amortized cost would have been 9.8%.

本季度，我們的債務和創收證券以攤餘成本計算的加權平均總收益率為 9.9%，比上一季下降約 80 個基點。其中約 50 個基點與本季利率變動有關，因為各國央行將目標利率降至接近 0，以幫助遏制 COVID-19 的財務影響。與上一季相比，3個月LIBOR下降46個基點，從1.91%下降至1.45%，1個月LIBOR下降77個基點，從1.76%下降至0.99%。本季投資組合收益率其餘 30 個百分點的下降主要是由新投資與退出投資所推動的。雖然本季以攤餘成本計算的新投資的加權平均總收益率相對強勁，為11.7%，這得益於較高的加權平均利差，但這被Forever 21 退出投資的12.4% 的有效收益率所抵消。不包括 Forever 21，退出投資的收益率和攤銷成本將為 9.8%。

I wanted to take some time to review our portfolio's retail ABL and energy exposures. Quarter-over-quarter, our retail ABL exposure decreased from 13.8% to 9.1% on the portfolio on a fair value basis due to a full repayment of Sears and a partial paydown of Forever 21. 44% of our retail ABL exposure at March 31 as represented by 99 Cents, Save A Lot and Staples are generally deemed as essential businesses given the nature of the products they provide, and therefore, were performing well in this environment. Neiman Marcus, representing 3.5% of the portfolio on March 31, continues to face a challenging operating environment, which has been exacerbated by the economic shutdown. Challenging operating scenarios were contemplated in our underwriting process, and our base case going forward is that we will continue to be well secured and receive current interest on our principal position.

我想花一些時間審查我們投資組合的零售 ABL 和能源曝險。由於西爾斯的全額償還和 Forever 21 的部分還款，我們的零售 ABL 風險敞口以公平價值計算，按季度環比從投資組合的 13.8% 下降至 9.1%。截至3 月31 日，我們的零售ABL 敞口中有44%（以99 Cents、Save A Lot 和Staples 為代表）鑑於其提供的產品性質，通常被視為重要業務，因此在這種環境下表現良好。截至 3 月 31 日，Neiman Marcus 佔投資組合的 3.5%，該公司繼續面臨充滿挑戰的經營環境，而經濟停擺又加劇了這種環境。在我們的承銷過程中考慮到了具有挑戰性的營運場景，我們未來的基本情況是我們將繼續得到良好的保障並獲得我們主要頭寸的當前利息。

As for energy, our exposure at quarter end was limited to 3.9% of the portfolio at fair value on March 31. Our largest energy position Verdad Resources, representing 1.9% of the portfolio at fair value was approximately 50% of our total energy exposure. It's a first lien reserve-based loan in an upstream company with significantly hedged production volumes through 2023 and hedged collateral value. Our second largest energy position, Energy Alloys, representing 0.9% of the portfolio at fair value is an asset-based loan secured by working capital collateral, which we believe provides more downside protection than the typical energy services loan. Mississippi Resources representing 0.1% of the portfolio at quarter end was our only investment on nonaccrual status. While the company made its regularly scheduled cash interest payment during the quarter, we elected to apply it to the loan principal instead of recognizing it as income. For reference, Mississippi Resources contributed approximately $0.02 per share or 1.0% to our net investment income in 2019.

至於能源，我們在季度末的曝險僅限於 3 月 31 日公允價值投資組合的 3.9%。我們最大的能源部位 Verdad Resources 佔投資組合的 1.9%（以公允價值計算），約占我們總能源曝險的 50%。這是上游公司的第一筆留置權儲備貸款，該公司在 2023 年之前對產量和抵押品價值進行了大幅對沖。我們的第二大能源部位能源合金，以公允價值計算佔投資組合的0.9%，是一種由營運資金抵押品擔保的資產貸款，我們認為這比典型的能源服務貸款提供了更多的下行保護。截至季末，密西西比資源公司佔投資組合的 0.1%，是我們唯一的非應計狀態投資。雖然公司在本季定期支付現金利息，但我們選擇將其應用於貸款本金，而不是將其確認為收入。作為參考，密西西比資源公司為我們 2019 年的淨投資收入貢獻了每股約 0.02 美元，即 1.0%。

Moving on to our overall portfolio composition and credit stats. We believe our portfolio continues to be defensively positioned with approximately 97% of our portfolio on a fair value basis comprised of first lien loans at quarter end. We continue to have limited cyclical exposure at 2.8% of the portfolio on a fair value basis, which we classify based on end markets and excludes our retail ABL and energy investments that we just discussed.

接下來是我們的整體投資組合組成和信用統計數據。我們相信，我們的投資組合將繼續處於防禦性地位，以公允價值計算，我們的投資組合中約 97% 包括季度末的第一留置權貸款。以公允價值計算，我們的週期性風險敞口仍然有限，佔投資組合的 2.8%，我們根據終端市場進行分類，不包括我們剛才討論的零售 ABL 和能源投資。

Our portfolio's top industry exposures were to business services at 20% of the portfolio at fair value followed by financial services and health care at approximately 16% and 11% of the portfolio at fair value, respectively. We'd like to reiterate that our financial services portfolio companies are primarily B2B integrated software payments businesses with limited financial leverage and underlying bank regulatory risk. And our health care portfolio companies are primarily information technology providers with no direct reimbursement risk. Given our efforts in derisking the portfolio over the past few years and based on the 12/31/2019 financial results of our borrowers, we feel that the credit profile of our portfolio was in good shape headed into this downturn. At quarter end across our core portfolio companies, our average net attachment point was 0.3x. Our average last dollar leverage was 4.1x. And our average interest coverage ratio was 3.2x.

我們投資組合的最大產業曝險是商業服務，以公允價值計算佔投資組合的 20%，其次是金融服務和醫療保健，分別佔以公允價值計算的投資組合的約 16% 和 11%。我們想重申，我們的金融服務投資組合公司主要是 B2B 整合軟體支付業務，財務槓桿有限，且有潛在的銀行監管風險。我們的醫療保健投資組合公司主要是資訊科技供應商，沒有直接報銷風險。鑑於我們過去幾年在降低投資組合風險方面所做的努力以及根據借款人 2019 年 12 月 31 日的財務業績，我們認為我們投資組合的信用狀況在進入這次低迷時期時狀況良好。截至季末，我們的核心投資組合公司的平均淨附著點為 0.3 倍。我們最後美元的平均槓桿率為 4.1 倍。我們的平均利息覆蓋率為 3.2 倍。

To date, based on our ongoing engagement with our borrowers, we do not expect any defaults on debt service obligations in the near term. But we do expect an increase in amendment activity in order to provide our borrowers with additional flexibility on certain covenants. Until there is visibility on when the shutdown will be lifted, we cannot pinpoint with a strong level of certainty what the full impact of COVID-19 will have to our borrowers. In the meantime, we continue to have frequent dialogue with C-suite executives to proactively identify and manage risks as well as be solution providers in this challenging environment. We believe our long-standing practice of conservative late cycle portfolio construction and high underwriting standards have positioned us well to navigate the period ahead. With that, I'd like to turn it over to Ian.

到目前為止，根據我們與借款人的持續接觸，我們預期短期內不會出現償債義務違約的情況。但我們確實預期修訂活動會增加，以便為我們的借款人提供某些契約的額外彈性。在明確何時解除封鎖之前，我們無法非常確定地確定 COVID-19 將對我們的借款人產生什麼全面影響。同時，我們繼續與最高管理層進行頻繁對話，以主動識別和管理風險，並在這個充滿挑戰的環境中成為解決方案提供者。我們相信，我們長期以來保守的後期投資組合建構和高承保標準的做法使我們能夠很好地應對未來的時期。有了這個，我想把它交給伊恩。

Thank you, Bo. I'll begin with an overview of our balance sheet. Given net repayment activity and the impact of valuation marks on our portfolio this quarter, total investments at fair value decreased from $2.25 billion to $2.05 billion. Total principal amount of debt outstanding was $987 million, and net assets were $1.04 billion or $15.57 per share, which is prior to the $0.50 per share of aggregate special dividends that will be paid during Q2. Our average debt-to-equity ratio was 0.99x, and our ending debt-to-equity ratio was 0.96x, down from 1.0x in the prior quarter. At quarter end, we had meaningful cushions on all financial covenant thresholds under our revolving credit facility.

謝謝你，博。我將首先概述我們的資產負債表。考慮到本季的淨還款活動和估值標記對我們投資組合的影響，以公允價值計算的總投資從 22.5 億美元下降至 20.5 億美元。未償債務本金總額為 9.87 億美元，淨資產為 10.4 億美元，即每股 15.57 美元，不包括第二季支付的每股 0.50 美元的特別股息總額。我們的平均負債股本比率為 0.99 倍，期末負債股本比率為 0.96 倍，低於上一季的 1.0 倍。到季末，我們的循環信貸安排下的所有財務契約門檻都得到了有意義的緩衝。

Before turning specifically to our results, I would like to reiterate the strength of our liquidity, funding profile and capital position. To review a concept shared in our recent letter, we think about liquidity as the sum of our cash and freely accessible committed credit that together are available to fund our operations and make investments. Note that unlike typical corporate issuers, BDCs have limited ability to create liquidity from cash flow from operations given RIC distribution requirements. At quarter end, we had $1 billion of undrawn capacity on our revolving credit facility against only $66 million of unfunded portfolio company commitments available to be drawn based on contractual requirements in the underlying loan agreements. As of today, given the net repayment activity we've experienced quarter-to-date, our liquidity stands at $1.08 billion with an estimated $61 million of unfunded portfolio company commitments available to be drawn, and our leverage is approximately 0.86x. We also think about our liquidity in the context of our ability to service our liabilities in future periods across a variety of operating environments. This has informed our objective to maintain a diverse and flexible funding profile. We do this by extending the maturity of our 5-year revolving credit facility every 12 to 15 months, accessing funding through the unsecured markets and creating staggered maturities on our debt obligations. As a reminder, in January, we upsized the commitments and extended the maturity of our revolving credit facility and opportunistically added $50 million to our existing 2024 unsecured notes. As a result, we feel very good about our liquidity and funding position.

在具體討論我們的業績之前，我想重申一下我們的流動性、資金狀況和資本狀況的實力。為了回顧我們在最近的信中分享的一個概念，我們將流動性視為我們的現金和可自由獲取的承諾信貸的總和，這些信貸共同為我們的營運和投資提供資金。請注意，與典型的企業發行人不同，鑑於 RIC 分配要求，BDC 從營運現金流中創造流動性的能力有限。截至季末，我們的循環信貸額度有 10 億美元的未提取能力，而根據基礎貸款協議中的合約要求，只有 6,600 萬美元的無資金支持的投資組合公司承諾可提取。截至今天，考慮到我們本季迄今經歷的淨還款活動，我們的流動性為 10.8 億美元，預計可提取 6,100 萬美元的無資金投資組合公司承諾，我們的槓桿約為 0.86 倍。我們也會根據我們在未來時期在各種營運環境中償還債務的能力來考慮我們的流動性。這告訴我們保持多元化和靈活的資金狀況的目標。為此，我們每 12 至 15 個月延長 5 年期循環信貸額度的期限，透過無擔保市場獲取資金，並為我們的債務規定交錯期限。提醒一下，1 月份，我們擴大了承諾規模，延長了循環信貸安排的期限，並趁機在現有 2024 年無擔保票據的基礎上增加了 5000 萬美元。因此，我們對我們的流動性和融資狀況感覺非常好。

At quarter end, our funding mix was comprised of approximately 68% unsecured and 32% secured debt, and the average remaining life of our investments funded with debt was approximately 2.3 years compared to a weighted average remaining maturity on our debt commitments of approximately 4.4 years. Our earliest debt maturity is more than 2 years away in August 2022 and relatively small at $172.5 million.

截至季末，我們的融資組合由約 68% 的無擔保債務和 32% 的有擔保債務組成，債務融資投資的平均剩餘期限約為 2.3 年，而債務承諾的加權平均剩餘期限約為 4.4 年。我們最早的債務到期時間為 2 年多，即 2022 年 8 月，債務規模相對較小，為 1.725 億美元。

On the capital side, we have long been preparing for potential scenarios where exogenous shocks could impact our liquidity needs and our view of expected losses across our portfolio. We designed our financial and capital allocation policy specifically to preserve our capital flexibility in potential periods of volatility. Our target leverage range of 0.9x to 1.25x and is set well below the regulatory leverage limit of 2.0x, and our current leverage of approximately 0.86x provides us with ample cushion to absorb potential losses, as well as to capitalize on attractive investment opportunities for our shareholders. Likewise, our dividend framework is centered on the sustainability of our base dividend via the core earnings power of our portfolio across varying operating scenarios.

在資本方面，我們長期以來一直在為潛在的情況做好準備，在這種情況下，外源衝擊可能會影響我們的流動性需求以及我們對整個投資組合預期損失的看法。我們專門設計了財務和資本配置政策，以在潛在波動時期保持資本靈活性。我們的目標槓桿範圍為 0.9 倍至 1.25 倍，遠低於 2.0 倍的監管槓桿限制，目前約為 0.86 倍的槓桿為我們提供了充足的緩衝來吸收潛在損失，並利用有吸引力的投資機會為了我們的股東。同樣，我們的股息框架以我們的基本股息的可持續性為中心，透過我們的投資組合在不同營運場景下的核心獲利能力。

This March, purchases of our stock were triggered under our 10b5-1 program, totaling approximately 207,000 shares at an average price of $14.15. Given the significant market volatility, lag in the timing of reported net asset value and uncertain impact of macro events on the valuation of our portfolio, we took the decision to temporarily suspend purchases until we had greater visibility on the current net asset value of our portfolio and the liquidity needs of our existing borrowers. This decision is consistent with our objectives of allocating capital to accretive opportunities for our shareholders as well as preserving our capital flexibility in volatile operating environment. Yesterday, upon the approval and release of our financial results, our Board reauthorized our 10b5-1 stock repurchase program.

今年 3 月，我們的 10b5-1 計畫觸發了對我們股票的購買，總計約 207,000 股，平均價格為 14.15 美元。鑑於市場大幅波動、資產淨值報告時間滯後以及宏觀事件對我們投資組合估值影響的不確定性，我們決定暫時停止購買，直到我們對投資組合當前資產淨值有了更清晰的了解。以及我們現有借款人的流動性需求。這項決定符合我們將資本分配給股東增加機會以及在動盪的經營環境中保持資本靈活性的目標。昨天，在批准並發布我們的財務業績後，我們的董事會重新授權了我們的 10b5-1 股票回購計畫。

Turning to our presentation materials. Slide 8 is the NAV bridge for the quarter. As Josh mentioned, the impact of credit spread widening on the valuation of our portfolio was by far the most significant driver of NAV movement this quarter with unrealized losses of $1.21 per share. Again, absent permanent credit losses related to these unrealized losses, we would expect to see a reversal of these unrealized losses over time as our investments approach their respective maturities. Walking through the other drivers of NAV movement this quarter, we added $0.51 per share from net investment income against a base dividend of $0.41 per share. There was a $0.10 per share reduction to NAV as we reversed net unrealized gains on the balance sheet related to investment realizations and recognized the gains into this quarter's net investment income. There were $0.14 per share of net mark-to-market gains on the interest rate swaps on our fixed rate securities due to movements in the forward LIBOR curve during the quarter. Other changes in net realized and unrealized losses resulted in an $0.11 per share impact to this quarter's NAV. This was primarily due to our investment in Mississippi Resources. Note that there was a positive $0.01 per share impact to NAV from the investments we made in our stock during March. Inclusive of the impact of the $0.50 per share aggregate special dividends that were previously declared and payable in Q2, pro forma NAV per share at quarter end was $15.07.

轉向我們的簡報材料。投影片 8 是本季的資產淨值橋。正如 Josh 所提到的，信貸利差擴大對我們投資組合估值的影響是本季資產淨值變動的最重要驅動因素，每股未實現損失為 1.21 美元。同樣，如果沒有與這些未實現損失相關的永久性信用損失，隨著我們的投資接近各自的到期日，我們預計這些未實現損失將隨著時間的推移而逆轉。回顧本季資產淨值變動的其他驅動因素，我們從淨投資收益中增加了每股 0.51 美元，而基本股息為每股 0.41 美元。由於我們沖銷了資產負債表上與投資變現相關的未實現淨收益，並將收益計入本季度的淨投資收益，每股資產淨值減少了 0.10 美元。由於本季遠期倫敦銀行同業拆借利率 (LIBOR) 曲線的變動，我們的固定利率證券利率掉期的按市價計算的淨收益為每股 0.14 美元。已實現淨虧損和未實現淨虧損的其他變化對本季度的資產淨值產生了每股 0.11 美元的影響。這主要是由於我們對密西西比資源公司的投資。請注意，我們 3 月對股票的投資對每股資產淨值產生了 0.01 美元的正面影響。包括先前宣布並在第二季度支付的每股 0.50 美元總計特別股息的影響，季度末每股預計資產淨值為 15.07 美元。

Moving to the income statement on Slide 9. Total investment income was $66.3 million, relatively stable compared to $66.5 million in the prior quarter. Breaking this down, interest and dividend income was $55.9 million, down $1.8 million from the prior quarter primarily due to the decrease in effective LIBOR across our debt portfolio. Other fees, which consist of prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns was elevated this quarter at $7.6 million compared to $1.8 million in the prior quarter. This was primarily due to the prepayment activity Bo mentioned. Other income this quarter was $2.8 million compared to $7.1 million in the prior quarter.

轉到投影片 9 上的損益表。總投資收入為 6,630 萬美元，與上一季的 6,650 萬美元相比相對穩定。細分來看，利息和股息收入為 5,590 萬美元，比上一季減少 180 萬美元，主要是由於我們債務投資組合的有效 LIBOR 下降。其他費用（包括預付款費和計劃外付款的預付款加速攤銷）本季上漲至 760 萬美元，而上一季為 180 萬美元。這主要是由於薄提到的預付款活動。本季其他收入為 280 萬美元，上一季為 710 萬美元。

Net expenses decreased slightly from $31.9 to $31.6 million quarter-over-quarter primarily driven by lower interest expense from a lower effective LIBOR on our debt outstanding. Given the approximate one quarter timing lag on the LIBOR reset date on our interest rate swaps, the approximate 20 basis point decline on our weighted average cost of debt outstanding this quarter was consistent with the decline in LIBOR during Q4 2019. Therefore, given this timing lag and the movement in LIBOR during Q1, we would expect to see an even more meaningful benefit to our cost of debt outstanding in Q2, holding our funding mix and leverage constant. If we were to apply the spot LIBOR today, which is below our average floors, on our Q1 asset yields and overlay our expected Q2 weighted average cost of debt outstanding, we would expect to see a net interest margin expansion of approximately 55 basis points from Q1. Further, if we were to reset the effective LIBOR on our debt outstanding as of today, we would expect over 100 basis points of net interest margin expansion from Q1, holding all else equal.

淨費用環比從 31.9 美元小幅下降至 3,160 萬美元，主要是由於未償債務有效 LIBOR 較低而導致利息費用減少。鑑於我們的利率掉期 LIBOR 重置日期大約有四分之一的時間滯後，本季度我們的未償債務加權平均成本下降了大約 20 個基點，這與 2019 年第四季度 LIBOR 的下降一致。因此，考慮到第一季的時間延遲和 LIBOR 的變動，我們預計在維持融資組合和槓桿不變的情況下，第二季的未償債務成本將獲得更有意義的收益。如果我們將今天低於平均下限的即期 LIBOR 應用於我們第一季的資產收益率，並涵蓋我們預期的第二季未償還債務加權平均成本，我們預計淨利差將擴大約 55 個基點Q1 .此外，如果我們要重置截至今天的未償債務的有效 LIBOR，我們預計淨利差將比第一季擴大 100 個基點以上，而其他條件不變。

At quarter end, 100% of our debt liabilities were effectively floating rate obligations, given the interest rate swaps we implemented at issuance on our fixed-rate debt. We believe our risk management policy of matching the interest rate exposures of our assets and liabilities in combination with our practice of underwriting LIBOR floors into our assets will provide meaningful downside earnings protection in what we expect to be an extended low interest rate environment. As of today, LIBOR has fallen below the average LIBOR floor of our portfolio. And based on the current 3-month LIBOR curve, all else equal, we would expect an estimated net interest margin expansion a year from now of approximately $0.09 per share.

考慮到我們在發行固定利率債務時實施的利率掉期，截至季度末，我們 100% 的債務負債實際上是浮動利率債務。我們相信，我們的資產和負債的利率敞口相匹配的風險管理政策，加上我們將LIBOR 下限承銷到我們的資產中的做法，將在我們預期的長期低利率環境中提供有意義的下行收益保護。截至今天，倫敦銀行同業拆借利率 (LIBOR) 已跌破我們投資組合的平均倫敦銀行同業拆借利率 (LIBOR) 下限。根據目前 3 個月 LIBOR 曲線，在其他條件相同的情況下，我們預計一年後淨利差將擴大至每股 0.09 美元左右。

Let me wrap up with our current thinking on our ROEs. On our last call in February, we communicated a full year 2020 ROE target of 11% to 12%, which implied a full year net investment income per share of $1.84 to $2.01 based on Q4 2019 pro forma NAV of $16.77. In the near term, we expect economic uncertainty to persist, which will likely result in a low interest rate, higher credit spread environment. As a result, we would expect the spread-related driver of repayments to moderate, which will allow us to maintain our balance sheet leverage and support our ROEs through interest and dividend income. As Bo mentioned, we think the prospective opportunity set for us to generate outsized risk returns will be longer term in nature given the unprecedented economic destruction of COVID. In light of these updated views, we would expect our full year 2020 net investment income per share to be closer to the lower end of our previously communicated range.

讓我總結一下我們目前對 ROE 的看法。在2 月的最後一次電話會議上，我們傳達了2020 年全年ROE 目標為11% 至12%，這意味著基於2019 年第四季度預計資產淨值16.77 美元，全年每股淨投資收益為1.84美元至2.01 美元。短期內，我們預期經濟不確定性將持續存在，這可能會導致低利率、較高的信用利差環境。因此，我們預計與利差相關的還款驅動因素將放緩，這將使我們能夠維持資產負債表槓桿，並透過利息和股息收入支持我們的淨資產收益率。正如博所提到的，鑑於新冠疫情對經濟造成了前所未有的破壞，我們認為為我們創造超額風險回報的潛在機會本質上將是長期的。根據這些最新觀點，我們預計 2020 年全年每股淨投資收益將接近我們先前通報的範圍的下限。

With that, I'd like to turn it back to Josh for concluding remarks.

說到這裡，我想把它轉回給喬許做總結發言。

Thank you, Ian. Before moving to Q&A, there are a few housekeeping items I'd like to wrap up on. On May 1, our broader platform, Sixth Street Partners, completed our previously announced agreement with TPG to operate as independent unaffiliated businesses. As you know, Sixth Street has already been operating autonomously so it's been business as usual for us. Sixth Street today has over $34 billion in assets under management with more than 275 team members in 9 locations around the world. With our platform's diversified investment platforms and flexible long-term capital base, we believe we are well positioned to serve our LPs and stakeholders' capital in the same prudent and creative manner that's been the hallmark of our partner group for over the last 20 years. Again, Sixth Street will continue to operate with the same partner group, the same investment strategy and same decision-making process. Likewise, TSLX will continue to be led by the same dedicated management personnel, and our stakeholders will continue to benefit from the same sourcing, underwriting and operational capabilities of the Sixth Street platform that they have since our inception.

謝謝你，伊恩。在進行問答之前，我想總結一些家務事項。5 月 1 日，我們更廣泛的平台 Sixth Street Partners 完成了先前宣布的與 TPG 的協議，以獨立非附屬企業的身份運作。如您所知，第六街已經自主運營，因此我們的業務一切如常。如今，第六街管理著超過 340 億美元的資產，在全球 9 個地點擁有超過 275 名團隊成員。憑藉我們平台的多元化投資平台和靈活的長期資本基礎，我們相信我們有能力以審慎和創造性的方式為我們的有限合夥人和利益相關者的資本提供服務，這也是我們合作夥伴集團過去20 年來的標誌。同樣，第六街將繼續以相同的合作夥伴群體、相同的投資策略和相同的決策流程運作。同樣，TSLX 將繼續由同樣的專職管理人員領導，我們的利害關係人將繼續受益於第六街平台自我們成立以來所擁有的相同採購、承銷和營運能力。

As part of the evolution of our platform, we will be changing our name from "TPG Specialty Lending" to "Sixth Street Specialty Lending, Inc." Our ticker symbol on the New York Stock Exchange will continue to be "TSLX". The legal process for our name change is expected to be completed in June, upon which we will make an official announcement.

作為我們平台發展的一部分，我們將把名稱從“TPG Specialty Lending”更改為“Sixth Street Specialty Lending, Inc.”。我們在紐約證券交易所的股票代碼將繼續為「TSLX」。我們更名的法律程序預計將於六月完成，屆時我們將發布正式公告。

Moving on to our upcoming annual and special meeting of TSLX shareholders that will be held on May 28. Consistent with the past 3 years, we will be seeking shareholder approval to issue shares below net asset value effective for the upcoming 12 months. To be clear, we have no plans to issue equity under this authority and dilute our existing shareholders. However, as stewards of our shareholders' capital, we believe it's our responsibility to secure all tools available for financial flexibility and value creation in periods of market volatility. This is a responsibility that we take seriously, as with all capital allocation decisions we make on behalf of our stakeholders. We urge our shareholders to please reach out to us with any questions or concerns.

接下來是即將於 5 月 28 日舉行的 TSLX 股東年度特別會議。與過去 3 年一樣，我們將尋求股東批准，在未來 12 個月內發行低於資產淨值的股票。需要明確的是，我們沒有計劃根據這項授權發行股票並稀釋我們現有的股東。然而，作為股東資本的管理者，我們相信我們有責任確保在市場波動時期確保財務靈活性和價值創造的所有可用工具。正如我們代表利害關係人所做的所有資本配置決策一樣，我們認真對待這項責任。我們敦促股東如有任何問題或疑慮，請與我們聯絡。

Finally, on behalf of everyone on our team, we would like to thank all of our stakeholders for their engagement over the past few months. As we collectively navigate these historic and uncertain times, we have been humbled by our stakeholders' confidence in our ability to create long-term value amidst economic disruption. Our current view is that the market is underestimating the full long-term economic disruption of COVID-19 given the widening gap between asset prices and underlying fundamentals of the real economy. We're confident we'll be -- that there will be opportunities to generate significantly high risk-adjusted returns for our shareholders, but we are being patient and prudent to ensure that we have the capital to deploy at the appropriate time.

最後，我們謹代表我們團隊的每個人，感謝所有利害關係人在過去幾個月的參與。當我們共同度過這個歷史性和不確定的時代時，我們的利害關係人對我們在經濟混亂中創造長期價值的能力充滿信心，這讓我們感到謙卑。我們目前的觀點是，鑑於資產價格與實體經濟基本面之間的差距不斷擴大，市場低估了 COVID-19 對經濟的全面長期破壞。我們相信，我們將有機會為我們的股東帶來顯著的高風險調整回報，但我們將保持耐心和謹慎，以確保我們有資本在適當的時間進行部署。

With that, I'd like to thank you for your continued interest and for your time today. Operator, please open line for questions.

在此，我要感謝您的持續關注和今天的寶貴時間。接線員，請打開線路提問。

(Operator Instructions) Our first question comes from Rick Shane of JPMorgan.

（操作員指示）我們的第一個問題來自摩根大通的 Rick Shane。

It's all sort of tied together. When we think about the way that this is going to play out, we think it's going to play out in 3 stages. There was initially the liquidity stage that we're -- we seem to be emerging from. The second is the transition phase where we are right now. And I think the real key is going to be how sponsors behave as buffers between the short-term slowdown and the longer-term impact? And then finally, we'll move into sort of the cards on the table, what plays out within portfolios and within companies. I'm curious, in your conversations with sponsors right now, what types of behaviors you're seeing. And if you could specifically talk about, you have a couple of significant maturities this year, MedeAnalytics and Nektar Therapeutics. I know you can't necessarily speak specifically to those credits, but conversations around near-term maturities and the risk of maturity defaults.

這一切都是緊密相連的。當我們考慮這將如何進行時，我們認為它將分三個階段進行。我們似乎正在擺脫最初的流動階段。第二個是我們現在所處的過渡階段。我認為真正的關鍵是贊助商如何在短期放緩和長期影響之間發揮緩衝作用？最後，我們將討論桌面上的牌，即投資組合和公司內部的情況。我很好奇，在您現在與贊助商的對話中，您看到了哪些類型的行為。如果你可以具體談談，今年有幾個重要的成熟公司，MedeAnalytics 和 Nektar Therapeutics。我知道你不一定能具體談論這些信貸，但可以圍繞近期到期日和到期違約風險進行討論。

Sure. Rick, hopefully, you and your family are safe. And I apologize in advance I can't control the lawn mowing schedule in the suburbs. So if you hear the noise in the background, I apologize. So on Nektar, in our prepared remarks, I don't know if you caught it, it's actually paid off at -- previous to quarter end. I mean, after quarter end, so paid off in early April. On Mede, that company is performing very well. We had proactively extended the maturity for Mede after quarter end as that company is performing well. And obviously, the sponsor's view, it's not the best time to sell the business. And so as it relates to those 2 near-term maturities, one is fully paid in cash and one we extended given the performance of the business. And Bo, anything to add on those 2?

當然。瑞克，希望你和你的家人都安全。我提前道歉，我無法控制郊區的割草時間表。因此，如果您聽到背景噪音，我深表歉意。因此，關於 Nektar，在我們準備好的演講中，我不知道您是否明白，它實際上在季度末之前得到了回報。我的意思是，季度末後，四月初就得到了回報。在 Mede 上，該公司表現非常好。由於 Mede 表現良好，我們在季度結束後主動延長了公司的期限。顯然，在贊助商看來，現在不是出售業務的最佳時機。因此，就這兩個近期到期日而言，其中一項以現金全額支付，另一項我們根據業務表現延期。Bo，這兩個還有什麼要補充的嗎？

No, nothing to add. I mean, MedeAnalytics, we actually started that process pre-COVID. The business is performing well. It's HCIT business that has actually seen some benefits in this market. And we're at a really nice leverage position. So we extended the maturity there.

不，沒什麼好補充的。我的意思是，MedeAnalytics，我們實際上在新冠疫情之前就開始了這個過程。業務表現良好。HCIT 業務實際上已經在這個市場中看到了一些好處。我們處於一個非常好的槓桿位置。所以我們延長了那裡的成熟度。

On -- generally, look, for us, it's all about being a -- having transparent and constructive dialogues with both management teams and sponsors. We're having those dialogues on a regular basis, most of the time on a weekly basis. We have asked most of our portfolio -- we've asked all of our portfolio companies to provide 13-week cash flow and try to be a partner with them and giving them tools to think about how to operate in this environment, which is measuring KPIs and measuring DSOs and DPOs and think about what can happen to cash and liquidity. And so those have been very constructive dialogues. At some point, the rubber will hit the road if the capital -- if there needs to have capital put in the business, and we expect to have constructive dialogues. And the more people can be transparent today about where companies are operating and the challenges they face, I think the easier those conversations will be in the future. And to date, it's been very, very constructive. Bo, anything to add, or Mike?

一般來說，對我們來說，這一切都是為了與管理團隊和贊助商進行透明和建設性的對話。我們定期進行這些對話，大部分時間是每週一次。我們已經要求我們的大部分投資組合——我們已經要求所有的投資組合公司提供13 週的現金流，並嘗試與他們成為合作夥伴，並為他們提供工具來思考如何在這種環境下運營，這正在衡量KPI 和衡量 DSO 和 DPO，並考慮現金和流動性可能發生的情況。因此，這些都是非常有建設性的對話。在某個時候，如果資本需要投入資金，橡膠就會上路，我們希望進行建設性對話。如今，越多的人能夠對公司的營運地點和麵臨的挑戰保持透明，我認為未來這些對話就越容易。到目前為止，這是非常非常有建設性的。Bo，有什麼要補充的嗎，還是 Mike？

No. I think the point on transparency, we really encourage that. We have good relationships with our borrowers and with our sponsors. And that transparency allows us to be solution providers as issues arise in any environment including this one. So that -- those conversations are frequent and we feel like all of our relationships are being very transparent with us.

不。我認為關於透明度這一點，我們確實鼓勵這樣做。我們與借款人和贊助商有著良好的關係。這種透明度使我們能夠在任何環境（包括這個環境）中出現問題時成為解決方案提供者。因此，這些對話很頻繁，我們覺得我們所有的關係都對我們非常透明。

A couple of other things to note. Look at -- we had, at the end of -- obviously, the numbers are a little delayed, but at the end of Q4, our risk -- we were kind of derisking the portfolio or our borrowers were delevering significantly. So KPIs were generally up. Leverage or last dollar attachment point went from 4.2x the previous quarter to 4.1x. The average between 2017 and 2019 was 4.5x. And so you've seen interest coverage was up. And so overall, the portfolio -- in Q1, quite frankly, the portfolio was performing pretty well across much of the portfolio pre-COVID. And so you -- I think there are -- fortunately, there's going to be more degrees of freedom, given the nature of the portfolio and the performance up to COVID. Obviously, the violence of COVID and the -- relatively if it will impact, to different degrees, all businesses and all business models will be felt, but we feel like the position -- the portfolio is positioned pretty well given its typically asset-light services businesses with high free cash flow and robust business models.

還有其他一些需要注意的事情。看看——我們在年底——顯然，數字有點延遲，但在第四季度末，我們的風險——我們正在降低投資組合的風險，或者我們的借款人正在大幅去槓桿化。所以 KPI 普遍上升。槓桿率或最後美元附著點從上一季的 4.2 倍增加到 4.1 倍。2017 年至 2019 年的平均值為 4.5 倍。所以你已經看到利息覆蓋率上升了。總體而言，坦白說，第一季的投資組合在新冠疫情爆發前的大部分投資組合中表現都非常好。因此，我認為，幸運的是，考慮到投資組合的性質和新冠疫情期間的表現，將會有更多的自由。顯然，新冠病毒的暴力以及相對而言，如果它會在不同程度上影響所有企業和所有商業模式，我們都會感受到這一點，但我們認為，考慮到其典型的輕資產投資組合的定位非常好具有高自由現金流和穩健商業模式的服務企業。

Our next question comes from Kenneth Lee with RBC Capital Markets.

我們的下一個問題來自 RBC 資本市場的 Kenneth Lee。

Just wondering if you could just further expand upon your outlook for potentially seeing more amendments versus debt defaults. Wondering specifically whether there were any specific factors driving this for you?

只是想知道您是否可以進一步擴展您的前景，以可能看到更多針對債務違約的修正案。特別想知道是否有任何特定因素導致您出現這種情況？

Yes. Look, I think the great thing about our portfolio that we've constructed for our shareholders is that we're typically a control lender. We have very tight baskets regarding indebtedness and restricted payments, which don't provide the opportunity for issuers to do liability management trades without working with us. And we have 2 financial covenants. And so we're going to be in a position to have conversations with companies and to be solution providers and protect risk. And so I think you can expect a decent amount of dialogue, quite frankly, as small as, they have to come to us to incur a PPP loan because they don't have the debt incurrence basket to meeting some relief on financial covenants. But given we actually think it's a positive thing, it keeps effectively the portfolio to a shorter weighted average life, it allows us to manage risk and give us optionality to do many things to enhance our risk position. So I think pre quarter end, I think there was only 2 to 3 amendments related to COVID. But I think generally, there were like 8 in the quarter and that's a typical cadence given how our docs are constructed. And so I would expect that we're constantly in dialogue given our -- the structure of our loan agreements in place. And I think that will ultimately benefit our stakeholders and will also allow us to be constructive solution providers with sponsors and management teams. Bo or Fish, anything to add there?

是的。看，我認為我們為股東建立的投資組合的偉大之處在於，我們通常是控制貸款人。我們對債務和限制付款的限制非常嚴格，這使得發行人沒有機會在不與我們合作的情況下進行負債管理交易。我們有兩個財務契約。因此，我們將能夠與公司進行對話，成為解決方案提供者並保護風險。因此，我認為您可以期待大量的對話，坦率地說，小到他們必須向我們尋求 PPP 貸款，因為他們沒有債務產生籃子來滿足財務契約的一些減免。但考慮到我們實際上認為這是一件積極的事情，它有效地使投資組合的加權平均壽命較短，它使我們能夠管理風險，並讓我們可以選擇做很多事情來增強我們的風險狀況。所以我認為季度末前只有 2 到 3 項與新冠病毒相關的修正案。但我認為一般來說，本季大約有 8 個，考慮到我們文件的建構方式，這是一個典型的節奏。因此，鑑於我們現有的貸款協議結構，我希望我們能夠持續進行對話。我認為這最終將使我們的利害關係人受益，也將使我們成為贊助商和管理團隊的建設性解決方案提供者。Bo 或 Fish，有什麼要補充的嗎？

No. I think that was pretty well said. All these -- we've been talking about the importance of tight loan documentation over the past few years. And all of these are guardrails to get us back to the table to reevaluate risk, and to often times be solution providers as well to our portfolio companies. And we're seeing beginning of that, but activity levels have been relatively muted given the backdrop.

不。我認為這句話說得很好。所有這些——過去幾年我們一直在談論嚴格貸款文件的重要性。所有這些都是讓我們回到桌面重新評估風險的護欄，並且常常成為我們投資組合公司的解決方案提供者。我們已經看到了這種情況的開始，但在這種背景下，活動水平相對較低。

Great. Very helpful. And just one follow-up, if I may. It looks like leverage ratios are closer to the lower end of the target range. And granted, I realize that the leverage ratios could move around depending on the investment valuation changes, but wondering over the near term, would you be targeting closer to that lower end of that target range?

偉大的。很有幫助。如果可以的話，只有一個後續行動。槓桿率似乎更接近目標範圍的下限。當然，我意識到槓桿率可能會根據投資估值的變化而變化，但想知道在短期內，您的目標是否會接近該目標範圍的下限？

Yes. So -- and I'll let Ian speak about it. So right now, debt-to-equity is 0.86x. That's kind of on depressed asset values. And so we actually have a whole bunch of capital and a whole bunch of flexibility to expand into what we think is going to be a much more lender friendly environment, less competitive from the leveraged loan market, less competitive from the high-yield market for kind of issuers that are in our target range, less competitive from the private credit markets, given people are inwardly focused or liquidity or capital constrained. And so we have -- from both a capital perspective and a liquidity perspective, we are in a, I think -- as well positioned as we could be to kind of create -- find good risk-adjusted returns going forward. The other thing I would say is the actual existing book in these time and these moments tend -- not, given credit spreads have widened, tends to stay in place. And the existing book, given the combination of our floors and our hedges on our liability actually have a decent amount of net interest margin expansion on a go-forward basis as being discussed. And so the existing book is pretty well positioned from a net interest margin perspective. We have a ton of capital and some liquidity to make smart capital allocation decisions to drive economic return for our shareholders on a go-forward basis. And so we're pretty happy with as -- we're pretty happy with how it's played out. Given -- just a little color around that to color it up, we have $1 billion of unfunded commitments -- $1 billion of liquidity. We have about $68 million of contractual unfunded commitments. So I think we're like 16x coverage. We only have a -- the nearest term maturity is $172.5 million in August of 2022. And so we basically have $1 billion plus liquidity and for -- against very small amount of unfunded commitments and $172 million in maturity, that's going to be over 2 years away. So I mean, from a capital and liquidity perspective, we're, I feel, pretty good in really good shape. And from an opportunity standpoint, Ian, is there anything to add there?

是的。那麼——我會讓伊恩來談談它。所以目前負債股本率為 0.86 倍。這有點像是資產價值低迷。因此，我們實際上擁有大量的資本和大量的靈活性，可以擴展到我們認為對貸方更友善的環境，槓桿貸款市場的競爭力較弱，高收益市場的競爭力較弱這類發行人在我們在的目標範圍內，在私人信貸市場上競爭力較差，因為人們的注意力集中在內部，或流動性或資本受到限制。因此，從資本角度和流動性角度來看，我認為我們處於有利位置，可以創造良好的未來風險調整回報。我要說的另一件事是，這些時期實際存在的書籍，這些時刻往往會——而不是考慮到信用利差已經擴大，往往會保持在原地。考慮到我們的底線和對沖負債的組合，現有的帳簿實際上在未來的基礎上有相當大的淨息差擴張，正如所討論的那樣。因此，從淨利差的角度來看，現有的書籍定位相當不錯。我們擁有大量資本和一定的流動性，可以做出明智的資本配置決策，進而為股東帶來持續的經濟回報。所以我們對事情的進展非常滿意。考慮到——只要稍微加點顏色就可以了，我們有 10 億美元的無資金承諾——10 億美元的流動性。我們有大約 6800 萬美元的合約無資金承諾。所以我認為我們的覆蓋範圍大約是 16 倍。我們只有—最近的期限是 2022 年 8 月，金額為 1.725 億美元。因此，我們基本上擁有 10 億美元以上的流動性，而相對於極少量的無資金承諾和 1.72 億美元的到期資金，這將需要 2 年多的時間。所以我的意思是，從資本和流動性的角度來看，我認為我們的狀況非常好。從機會的角度來看，Ian，還有什麼要補充的嗎？

I think you captured it, Josh. It's all about just giving ourselves -- putting ourselves in a position where we have options, and it feels like we've got to that stage.

我想你抓住了它，喬許。這一切都是為了奉獻自己──把自己放在一個有選擇的位置，感覺我們已經到了那個階段。

Our next question comes Finian O'Shea with Wells Fargo.

我們的下一個問題來自富國銀行的菲尼安·奧謝。

Just to follow on the last question. Actually, it was more related to leverage, but I wanted to ask on equity issuance. I think you should be officially above book again if the market opens here today. Does that change your position? And if not, what conditions are holding you back from raising more equity, given you're one of the few companies that can accretively do so. Is it more your liquidity position or the lack of good deal flow?

只是繼續最後一個問題。其實比較是跟槓桿有關，但我想問的是股票發行的問題。我認為如果今天開盤的話，你應該再次正式高於預定價。這會改變你的立場嗎？如果沒有，考慮到您是少數能夠增加股本的公司之一，那麼哪些條件會阻礙您籌集更多股本。是您的流動性狀況更重要，還是缺乏良好的交易流？

So look, that's a great question. We've always been -- I think we've always thought of ourselves as very prudent allocators of capital. We've never raised -- there's always this agency principal issue kind of that exists in all businesses, but people tend to think about in the asset management business where there's the diverging interests between the manager and the people actually providing the capital. And for us, we've always put our capital before our interest, and we'll continue to operate that way. And so when you look at where we sit today, we have -- we're overcapitalized. We're at 0.86x debt-to-equity on what's relatively, we think, are depressed asset prices. And so if you actually normalize that for spreads tightening or at some point, that -- those unrealized losses rolling through as we get to maturities on underlying investments. We actually have more capital than that and so we're less levered. And we have a ton of liquidity. So there is no need or desire to raise capital because we have a lot of capital, and we -- quite frankly, we don't need to raise capital because we have a lot of liquidity. So I think we are -- we'll take the position we always have is, which is we'll only raise capital when it's accretive from a book value basis and ROE basis. And hard to imagine it's accretive from an ROE basis, given that we have a whole bunch of excess capital to deploy in what we think to be a pretty good investment opportunity set. As that -- as we have line of sight into that investment opportunity set and how quickly it comes and how good we think it is, our view might change on raising equity capital, but quite frankly, raising equity capital given the liquidity position and given the capital position is not even close to top of our list. Ian, is that -- do you have anything to add, or Bo?

所以看，這是一個很好的問題。我認為我們一直認為自己是非常謹慎的資本配置者。我們從未提出過——所有企業中都存在這種代理主要問題，但人們傾向於考慮在資產管理業務中，管理者和實際提供資本的人之間存在利益分歧。對我們來說，我們始終將資本置於利益之上，我們將繼續以這種方式運作。因此，當你看看我們今天的處境時，就會發現我們資本過剩。我們認為資產價格相對低迷，負債股本率為 0.86 倍。因此，如果你實際上將利差收緊或在某個時候的情況正常化，那麼當我們的基礎投資到期時，那些未實現的損失就會滾動。我們實際上擁有更多的資本，因此我們的槓桿率較低。我們有大量的流動性。因此，沒有必要或渴望籌集資金，因為我們擁有大量資本，坦白說，我們不需要籌集資金，因為我們有大量流動性。所以我認為我們將採取我們一直以來的立場，即只有當資本從帳面價值和股本回報率基礎上增值時，我們才會籌集資金。很難想像它會從股本回報率的基礎上增值，因為我們有一大堆多餘的資本可以部署在我們認為相當好的投資機會集上。因此，當我們了解該投資機會集、它來得有多快以及我們認為它有多好時，我們對籌集股本資本的看法可能會改變，但坦白說，考慮到流動性狀況和考慮到，籌集股本資本資本狀況甚至還沒有接近我們名單中的榜首。伊恩（Ian），博（Bo），你還有什麼要補充的嗎？

Yes. I think the thing was just making sure we stay true with the discipline that we've articulated in the past about being accretive to NAV and on an ROE basis, and that's important to us.

是的。我認為問題只是確保我們恪守我們過去闡明的關於增加資產淨值和以淨資產收益率為基礎的紀律，這對我們很重要。

So any equity capital we'd raised today, look, if we had massively grown the book would be dilutive, given that we would be deleveraging the business and so I -- it's -- as I can see -- as the opportunity set evolves and where there's clear line of sight to be liquidity and capital providers to the middle market and middle market sponsors that we might be -- we might raise equity capital, but we have a ton of liquidity and capital. So I don't see that as a near-term process.

因此，我們今天籌集的任何股權資本，看，如果我們大幅增長，賬面價值將會被稀釋，因為我們將對業務進行去槓桿化，所以我——正如我所看到的——隨著機會集的發展如果我們有明確的視線，可以成為中間市場和中間市場贊助商的流動性和資本提供者，我們可能會籌集股權資本，但我們擁有大量的流動性和資本。所以我不認為這是一個近期的過程。

Very helpful. And just one more if I can. You remind us on the mechanics of first out leverage. And specifically, if you -- you talked a lot about having to potentially provide amendments. Would that require typically consent from your first out lenders? And would that perhaps trigger a diversion of the waterfall? Is that an issue that you grapple with going forward?

很有幫助。如果可以的話，就再多一個吧。您提醒我們先出槓桿的機制。具體來說，如果您--您多次談到必須可能提供修正案。這通常需要先行貸款人的同意嗎？這可能會引發瀑布的改道嗎？這是您今後要努力解決的問題嗎？

Zero. So typically not. In addition to the -- I think the average attachment point on our first lien last dollar positions is about half a turn in our detach is less than 4 turns. And so we're typically the big part of those capital structures, control req lenders. We have -- and typically, diversion is -- triggers on payment defaults. That's not even close to being an issue. Bo, anything to add there?

零。所以通常不會。除此之外，我認為我們的第一個留置權最後美元部位的平均附著點約為半圈，而我們的分離點不到 4 圈。因此，我們通常是這些資本結構、控制要求貸款人的重要組成部分。我們有——通常情況下，轉移是——付款違約的觸發因素。這根本就不是一個問題。博，還有什麼要補充的嗎？

No, correct. Everything well said.

不，正確。一切都說得好。

Our next question comes from Chris York with JMP Securities.

我們的下一個問題來自 JMP 證券公司的 Chris York。

So Josh or maybe, Bo, we understand a secondary form of repayment supporting your extension of the ABLs with a discount to net orderly liquidation value. Now that support seems reasonable in orderly markets, but clearly, this environment is anything but ordinary. So the question posed to you is, do you still feel comfortable about the collateral supporting your retail ABL strategy that may be approaching bankruptcy at a time when there could be an abundance of inventory available?

因此，喬希（Josh）或博（Bo），我們了解第二種還款形式，支持您延長 ABL，並以淨有序清算價值的折扣來支持。現在，在有序的市場中，這種支持似乎是合理的，但顯然，這種環境絕非平常。因此，向您提出的問題是，在可用庫存充足的情況下，您對支持可能接近破產的零售 ABL 策略的抵押品仍然感到滿意嗎？

Yes. So it's a great question. So you have to have to -- you kind of have to have to put it in 2 different vectors. One is the value of your inventory and the second is the liquidity of the underlying company. And so what was on top of our worry list would have been a Sears, for example, which had no liquidity and that you were liquidating -- you would have been forced to liquidate into an environment where there were a whole bunch of closed stores or mandated closed stores. That -- so that was our kind of -- the scenario you're talking about was Sears was our highest risk position. That got paid off in the middle of the quarter when they sold a series of logistics assets that they were forced to repair a loan. The next one -- and then when you look at kind of everything else in our book, you have the essential businesses, Staples, 99 Cents, Save A Lot, those businesses are performing well. The secondary source of repayment is not effective actually, given the turnover in inventories probably have increased. And those businesses are performing well and have liquidity and have more free cash flow than they ever had. So put those aside. There's really 2 that are in kind of that vector you're talking about. One is Maurices was just relatively small and the next is Neiman. And so on Maurices, what I would say is ton of liquidity, had been performing very, very, very well. We feel very good about where we sit on Maurices given that there is a reasonable time period for malls to open back up, which is called late summer or early fall. On Neiman, obviously, the overlevered balance sheet, very public. We actually feel -- and this will, I think, come ahead in the next -- probably today or tomorrow. So it's hard to talk about. But what I would say is that, that -- my sense is that will be a going concern business that the fulcrum -- and I think it's been reported that the fulcrum is putting up -- that today we're oversecured and being in that we will not face a liquidation in that business and the fulcrum we're putting up capital in that business for being -- capital to create liquidity and to get it to other side, which was the existing first lien term loan group, so non-ABL lenders. So my sense is that, that -- we'll be fine there. That is the vector that we were concerned about, which is liquidity. But quite frankly, the liquidity issue is being solved by -- my expectation is that business will be recapitalized with a DIP and will be a going concern business. I think (inaudible) being consistent in the news as well. And so the way bankruptcy works is if you're oversecured day 1, you get a -- you get interest, and then you get an admin claim for any degradation in your collateral. And we don't expect there will be degradation in our collateral, given that there will be liquidity to buy new inventory that will support our collateral base.

是的。所以這是一個很好的問題。所以你必須——你必須把它放在兩個不同的向量中。一是您的庫存價值，二是基礎公司的流動性。因此，我們最擔心的就是西爾斯百貨公司，它沒有流動性，而你正在清算——你將被迫清算到一個有大量商店關閉或關閉的環境中。強制關閉商店。這就是我們的情況，你所說的情況是西爾斯是我們風險最高的職位。當他們出售一系列被迫償還貸款的物流資產時，他們在本季中期得到了回報。下一個 - 然後當你看看我們書中的其他所有內容時，你會發現一些重要的業務，Staples、99 Cents、Save A Lot，這些業務都表現良好。鑑於庫存週轉率可能增加，第二還款來源實際上並不有效。這些企業表現良好，擁有流動性，並且擁有比以往更多的自由現金流。所以把這些放在一邊。實際上有 2 個屬於您正在談論的向量。一是莫里斯相對較小，二是內曼。莫里斯，我想說的是大量的流動性，一直表現得非常非常好。鑑於購物中心有一個合理的時間段重新開放，即夏末或初秋，我們對 Maurices 的位置感覺非常好。顯然，內曼的資產負債表槓桿過高，非常公開。我們實際上感覺到——我認為這將在未來——可能是今天或明天實現。所以很難談。但我想說的是，我的感覺是，這將是一家持續經營的企業，支點——我認為有報道稱，支點正在建立——今天我們的安全性過高，並且處於這種狀態。我們不會面臨該業務的清算，我們在該業務中投入資本的支點是——創造流動性並將其轉移到另一方的資本，這是現有的第一留置權定期貸款集團，所以非- ABL貸方。所以我的感覺是──我們會沒事的。這就是我們關心的向量，也就是流動性。但坦白說，流動性問題正在解決——我的期望是，企業將透過 DIP 進行資本重組，並將成為持續經營的企業。我認為（聽不清楚）新聞中的內容也保持一致。因此，破產的運作方式是，如果您在第一天的擔保量過大，您會得到利息，然後您會因抵押品的任何退化而收到管理索賠。鑑於將有流動性購買新庫存來支持我們的抵押品基礎，我們預計我們的抵押品不會出現退化。

Perfect. That color is very helpful. And you got where I was going with Maurices and Neiman. On the topic of retail, I noticed you did mark down your JCP loan meaningfully. This investment was not an ABL so what drove the write-down there? And why do you feel this one retail investment was supported by enterprise value when you underwrote it as opposed to hard assets?

完美的。這個顏色很有幫助。你明白了我和莫里斯和內曼的意思。關於零售主題，我注意到您確實大幅降低了您的 JCP 貸款。這項投資不是 ABL，那麼是什麼推動了那裡的減記呢？為什麼您認為當您承保這項零售投資時，它是由企業價值而不是硬資產支持的？

Yes. So actually, JCPenney, so it wasn't an inventory loan, but it was a -- it is a collateralized loan. It has a whole bunch of fee simple and leaseholds. And so obviously, the value of the fee simple and leaseholds has changed. It's a level 2 loan. We may think it's cheap or we may think it's expensive, but we mark it to where it's trading. I think it's traded up post quarter a little bit. But to be clear, it is a -- it does have a collateral package. It happens not to be inventory. I think it actually has a second lien on inventory, but quite frankly, that's going to be absorbed by the existing ABL -- or the value will be absorbed by the existing ABL, but it was a fee simple and leaseholds primarily as collateral. And so obviously, that's a little different situation.

是的。實際上，JCPenney，這不是庫存貸款，而是抵押貸款。它有一大堆費用和租賃權。顯然，簡單費用和租賃權的價值已經改變了。這是2級貸款。我們可能認為它很便宜，也可能認為它很昂貴，但我們將其標記為它的交易位置。我認為季度後交易有所上升。但要明確說明的是，它確實有一個附帶方案。它恰好不是庫存。我認為它實際上對庫存有第二留置權，但坦白說，這將被現有的ABL 吸收——或者價值將被現有的ABL 吸收，但它是一個簡單的費用，租賃權主要作為抵押品。顯然，情況有些不同。

Okay. You feel pretty good about the mark there?

好的。您對那裡的標誌感覺很好嗎？

Yes. We -- it's a level 2 mark. I think it's up a little bit. Ian said up a little bit post quarter, I think, a little bit. But it's a level 2 mark. And so we choose to rebuy it every -- we could choose to rebuy it every day, which we have.

是的。我們——這是 2 級標記。我覺得有點漲了伊恩說季度後有所上升，我想，有一點。但這是2級標記。所以我們選擇每天重新購買它——我們可以選擇每天重新購買它，我們已經做到了。

Got it. Yes. Okay. And then Bo talked a little bit about the expansion in the opportunity set in the secondary markets, very helpful there. But I'm curious if this environment has had any impact on your allocation of capital towards your investable themes? Or alternatively, has it created any new sector themes for which you plan to invest?

知道了。是的。好的。然後 Bo 談到了二級市場機會集的擴展，這非常有幫助。但我很好奇這種環境是否對您對可投資主題的資本配置產生了任何影響？或者，它是否創造了您計劃投資的任何新行業主題？

Yes. I mean, most definitely -- so look, I think the liquid market was really interesting for a period of a couple of weeks. Quite frankly, we were getting -- we spent our time making sure that we had enough capital and liquidity to support our existing portfolio companies. And so we had our head down. We did one small secondary trade. My guess is that there's going to be divergence in the secondary market, which will probably create a lot of opportunities over time, but we're going to be patient there. The -- quite frankly, the themes as -- the big theme as being a capital and solution provider in complicated situations, I think that is plentiful in a post-COVID world. And that is where our skill set -- that is our skill set that I think we do best at and have historically done best at and have created a ton of value. And to put this in perspective, we are in kind of special sets, kind of rescue-oriented financings. We've originated $4.5 billion since inception. That's about 35% to 40% of the total originations. The gross IRRs on those investments in -- and in more benign investment was -- benign investment environment was about 24%. 35% of our originations post -- 35% of our origination since inception has been nonsponsor. The gross IRRs unrealized investments were 23%. And so in a world where we were not focused -- much of the world was focused either on sponsor finance or focused on growing market share, we were focused on really trying to drive and create value for our shareholders. And in a world where it's going to be very complicated both from -- underwriting from both from a balance sheet perspective for companies and from an operating environment and really the devil in the detail is understanding the forward earning power of the business, which probably have been massively diverged from the historical earnings power of the business and what their unit economics are is kind of our -- this is kind of what we do and what we do best and where our skill set lies. And so on the go-forward opportunity set, we're really excited given that the opportunity set matches up with our capabilities very, very well. And with the Sixth Street platform very well. That being said, obviously, given that the world we're in today was kind of set off by health care crisis. On a personal level and every other level, it's very upsetting to us, given the amount of destruction and amount of loss of lives and that people were -- and amount of uncertainty people are feeling both about their economic -- personal economic situation and their health. But I would say the go-forward opportunity set matches up pretty well with our skill set.

是的。我的意思是，絕對如此，我認為流動性市場在幾週內確實很有趣。坦白說，我們花時間確保我們有足夠的資本和流動性來支持我們現有的投資組合公司。所以我們低頭。我們做了一筆小型的二次貿易。我的猜測是，二級市場將會出現分歧，隨著時間的推移，這可能會創造很多機會，但我們將在那裡保持耐心。坦白說，作為複雜情況下的資本和解決方案提供者的大主題，我認為這在後新冠世界中是很豐富的。這就是我們的技能組合——我認為我們最擅長的技能組合，並且在歷史上一直做得最好，並創造了大量的價值。從長遠來看，我們處於某種特殊的、以救援為導向的融資中。自成立以來，我們已籌集了 45 億美元資金。這大約佔總發起量的 35% 到 40%。在良性投資環境中以及在較良性的投資環境中，這些投資的總 IRR 約為 24%。我們 35% 的發起人自成立以來，有 35% 的發起人是非贊助商。未實現投資的總 IRR 為 23%。因此，在一個我們不專注的世界裡——世界上許多地方要么專注於贊助商融資，要么專注於增加市場份額，我們專注於真正努力為股東創造價值。在這個世界上，從公司資產負債表的角度和營運環境的角度來看，承保都將變得非常複雜，而細節中的真正問題是了解企業的遠期盈利能力，這可能已經與企業的歷史獲利能力大相徑庭，他們的單位經濟效益是我們的——這就是我們所做的、我們最擅長的以及我們的技能所在。因此，對於前進的機會集，我們非常興奮，因為該機會集與我們的能力非常非常匹配。並且與第六街月台配合得非常好。話雖如此，顯然，考慮到我們今天所處的世界是由醫療保健危機引發的。在個人層面和其他層面上，這讓我們非常沮喪，因為造成的破壞和生命損失的數量，以及人們對他們的經濟、個人經濟狀況和他們的經濟狀況的不確定性。健康。但我想說的是，前進的機會與我們的技能非常匹配。

Got it. Again very helpful. Last question is, I noticed you said you temporarily suspended your buyback program intra-quarter. What's the thought process there because it appears you had a line of sight to an abundance of liquidity, especially with Ferrell and Nektar coming back to you. So presumably, that shouldn't cause you the need to hold maybe a couple million bucks for buybacks.

知道了。再次非常有幫助。最後一個問題是，我注意到您說您在季度內暫停了回購計劃。那裡的思考過程是怎麼樣的，因為你似乎看到了充足的流動性，尤其是費雷爾和內克塔回到你身邊。因此，這應該不會導致您需要持有數百萬美元用於回購。

Yes. So, look, I mean, it was obviously very fluid in March. Credit spreads were like -- credit spreads, there was not a bottom of -- in credit spreads. So we mark our book to fair value. And the buyback program is backward-looking, not forward-looking. So it's set off of the historical NAV. And as credit spreads are widening every day, every moment, you really don't know where there's a bottom. And you really -- we wanted to get our arms around making sure that -- get our arms around our debt-to-equity, get our arms around -- and quite frankly, make sure that we were being thoughtful users of capital, given that we didn't know what the new net asset value was going to be in the moment, given the violent move in credit spreads. So I think in -- the hindsight is always 20/20. And given how the quarter ended, I probably wish we wouldn't have done that. But we were in a multivariable situation regarding the falling of credit spreads, talking to rate agencies every day, making sure that we protected our investment-grade ratings. And so we did what we thought was best in the moment and hindsight is always 20/20, and it will be a lesson. Ian, anything to add there?

是的。所以，我的意思是，三月的情況顯然非常不穩定。信用利差就像是──信用利差，沒有底部──信用利差。因此，我們將我們的書標記為公允價值。而且回購計畫是向後看的，而不是前瞻性的。所以它是歷史淨值的引爆點。隨著信用利差每天每時每刻都在擴大，你真的不知道哪裡有底部。我們確實想要全力以赴確保——全力以赴，全力以赴，坦率地說，確保我們是深思熟慮的資本使用者，因為鑑於信用利差的劇烈波動，我們不知道此時新的資產淨值會是多少。所以我認為－事後諸葛亮總是20/20。考慮到本季的結束方式，我可能希望我們不要這樣做。但我們面臨著信用利差下降的多變量情況，每天都與評級機構交談，以確保我們保護我們的投資等級。所以我們做了我們認為目前最好的事情，事後看來總是 20/20，這將是一個教訓。伊恩，有什麼要補充的嗎？

You captured all, Josh.

你抓住了一切，喬許。

Great. That's it for me. And obviously, the market knows that you are a good allocator of capital.

偉大的。對我來說就是這樣。顯然，市場知道你是個優秀的資本配置者。

Our next question comes from Ryan Lynch with KBW.

我們的下一個問題來自 KBW 的 Ryan Lynch。

My first question has to just do with the opportunity set. I mean this is kind of unknowable question going forward, but I'd just love to hear your opinion. I mean, right now, the primary issuance market has come to a grinding halt. Secondary market has kind of snapped back pretty quickly. But as you guys sit here in a really good capital position for the remainder of the year, how do you guys view yourselves as far as allocating capital when it seems that the primary market may be held up for a pretty long time as there seems to be fears about second and third waves of potential spikes as the economy starts to reopen. Do you think you guys are going to be more tracking in the secondary market opportunities looking for dislocations there to deploy capital? Or just kind of how are you thinking about that kind of for the remainder of the year?

我的第一個問題與機會集有關。我的意思是，這是一個不可知的問題，但我很想聽聽您的意見。我的意思是，目前一級發行市場已經陷入停滯。二級市場很快就回升了。但是，由於你們在今年剩餘時間都處於非常良好的資本狀況，當一級市場似乎可能會持續相當長一段時間時，你們如何看待自己的資本配置？隨著經濟開始重新開放，人們擔心第二波和第三波潛在的峰值。您認為你們會更追蹤二級市場的機會，尋找錯置來部署資本嗎？或者只是你如何看待今年剩餘時間的這種情況？

Yes. So we surely have -- there are opportunities. I think there are a lot of opportunities, both in our own capital structure, i.e., if the stock trades below book value. I think given the work we've done on our capital and liquidity, we think that will be a good investment. I also think that when you -- you're exactly right. The M&A market has come to a halt and will be very, very slow. The good news was our business wasn't that levered to sponsor M&A. Again, I think 45% of our originations from inception were more kind of special sits oriented and so -- and refinancing related. And so I think that opportunity set will massively grow and, quite frankly, lines up with our skill set very, very well. But the -- and then quite frankly, if you do see M&A, you're going to see M&A that's more strategic in nature. So it's going to be sponsored portfolio companies or non-sponsored portfolio companies and it's going to be strategic where I think given that there's not that much supply of capital both from the BDC market because I don't think generally people are as well positioned from a capital liquidity perspective or from the private fund market where people are inwardly focused either on their portfolio or solving liquidity issues themselves. There's no CLO creation. The high-yield market is open for big issuers and highly rated issuers but for kind of our core business, I think there's going to be a decent amount of opportunity. It's not going to be levered to M&A, but it's probably more connected to our existing skill set. Bo, do you have anything to add there?

是的。所以我們肯定有機會。我認為，無論是在我們自己的資本結構中，還是在股票交易價格低於帳面價值的情況下，都有很多機會。我認為，考慮到我們在資本和流動性方面所做的工作，我們認為這將是一項很好的投資。我還認為，當你——你是完全正確的。併購市場已經陷入停滯，而且速度將非常非常緩慢。好消息是我們的業務並沒有那麼容易發起併購。再說一次，我認為我們從一開始就有 45% 的起源更多是面向特殊席位的，因此與再融資相關。因此，我認為機會集將大幅增長，並且坦白說，與我們的技能集非常非常吻合。但坦白說，如果你確實看到併購，你會看到本質上更具策略性的併購。因此，這將是贊助的投資組合公司或非贊助的投資組合公司，而且我認為這將具有戰略意義，因為BDC 市場的資本供應量並不多，因為我認為一般來說人們的定位不那麼好。從資本流動性角度或私募基金市場來看，人們內心要麼關注自己的投資組合，要麼自己解決流動性問題。沒有 CLO 創建。高收益市場對大型發行人和高評級發行人開放，但對於我們的核心業務，我認為將會有相當多的機會。它不會被用於併購，但它可能與我們現有的技能更相關。博，你還有什麼要補充的嗎？

No. Listen, I think we'll see an evolution of the opportunity set, as I've mentioned in our prepared remarks. With the high volatility, new issuance froze. We're starting to see the unthawing of that in the back end of the pipeline for opportunities where our skillset matches, as Josh mentioned, complex situations, special situations, good companies, bad balance sheets. Those type of opportunities are appearing, and we are well positioned to be liquidity providers in those environments.

不。聽著，我認為我們將看到機會集的演變，正如我在準備好的演講中提到的那樣。由於波動較大，新股發行凍結。我們開始看到在管道後端的解凍，我們的技能組合匹配的機會，正如喬希所提到的，複雜的情況，特殊的情況，好的公司，糟糕的資產負債表。此類機會正在出現，我們處於有利地位，可以在這些環境中成為流動性提供者。

Okay. That makes sense. As we kind of look into this oncoming downturn, I think one of the differentiators could be in the BDC space besides the liability structure that the BDCs have set up and you guys seem to be set up really well there and the quality of the asset book. Could be just the size, scale and the depth of the platform as BDCs work through challenged credits and try to get the best optimal outcomes for some of these credits. So can you just talk about your confidence in the size and the scale of your platform to work through both challenging credits in your own existing portfolio, find new opportunities, and then particularly in light of the finalization of the split with TPG?

好的。這就說得通了。當我們研究即將到來的經濟低迷時，我認為除了 BDC 已經建立的負債結構之外，BDC 領域的差異化因素之一可能是在 BDC 領域，你們似乎在那裡設置得非常好以及資產賬簿的質量。可能只是平台的規模、規模和深度，因為 BDC 正在處理有爭議的積分，並嘗試為其中一些積分獲得最佳結果。那麼，您能否談談您對平台的規模和規模的信心，以解決您現有投資組合中具有挑戰性的信用問題，尋找新的機會，特別是考慮到與 TPG 的分拆最終確定？

Yes. So look, the -- like we have one of the biggest private credit platforms in the world. So $34 billion of AUM, that will, my guess, probably grow. We have a ton of dry powder across our platform, where we were going to be an active participant in providing solutions for companies and issuers that, quite frankly, the TSLX platform will benefit from. And so I think people saw that we were involved in the financing for Airbnb, given the structure of that loan and the ability of the company to PIK, it wasn't really appropriate for the BDC, but I think that's a good example of the -- how the platform at work, the scale of the platform our ability to see large opportunities. The amount of resources we have in our platform, we have 275 people. The partner group, I think we have like 18 partners now in the partner group. Much of us has been working together for somewhere between 12 and 20 years. And so as it relates to the scale, the skill set and our historical -- and our investment process, and our ability to protect and create value for both shareholders and LPs and the brand we have, I feel I could not feel better about how we're positioned and situated for the environment we're coming into.

是的。所以看，我們擁有世界上最大的私人信貸平台之一。我猜測，AUM 可能會成長 340 億美元。我們的平台上有大量的乾粉，我們將積極參與為公司和發行人提供解決方案，坦白說，TSLX 平台將從中受益。因此，我認為人們看到我們參與了 Airbnb 的融資，考慮到該貸款的結構以及該公司 PIK 的能力，這對於 BDC 來說並不合適，但我認為這是一個很好的例子——平台如何發揮作用，平台的規模讓我們有能力看到大的機會。我們平台上的資源數量有 275 人。合作夥伴小組，我認為合作夥伴小組中現在有大約 18 個合作夥伴。我們中的許多人已經一起工作了 12 到 20 年。因此，由於它與規模、技能組合和我們的歷史以及我們的投資流程以及我們為股東和有限合夥人以及我們擁有的品牌保護和創造價值的能力有關，我覺得我對如何我們已經針對我們即將進入的環境進行了定位和定位。

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 one. Mine -- some of mine have already been answered. When you look at the capital allocation going forward, can you give us any color on the relative difference in hurdle rate, if you will, for new deployment versus reserving capital for existing portfolio companies? Obviously, if you put a follow-on investment into an existing portfolio company, even if the yield is lower, it's protecting the already invested capital, so the potential IRR can be materially higher versus new, where the yield might be higher but if asset life stretch the excess IRR, you've got from some of those where things have repaid quickly, may come in. So there's new risk versus existing opportunity cost IRR savings, et cetera. I mean, how is that going to be balanced over, say, the next 3 months versus the next year?

只有一個。我的——我的一些已經得到了答案。當您考慮未來的資本配置時，如果您願意的話，您能否告訴我們新部署與現有投資組合公司保留資本的最低資本配置之間的相對差異？顯然，如果你對現有的投資組合公司進行後續投資，即使收益率較低，它也會保護已經投資的資本，因此潛在的IRR 可能比新公司高得多，後者的收益率可能更高，但如果資產生命延長了，你從一些快速償還債務的人那裡得到的超額內部收益率可能會進來。因此，與現有機會成本 IRR 節省相比，存在新的風險，等等。我的意思是，未來 3 個月與明年如何平衡？

Yes. So first of all, look, we mark all of our investments to fair value. And so I think -- and I think I understand the question. But the -- as it relates to our existing investments, and given that we mark at the fair value, like the -- I'm not sure the hurdle rates differ that much given that where -- there was a sunk cost and so you -- I'm trying to think through your question on the fly, but like the sunk cost as it relates to the existing investment is, it is what it is. And so we mark at -- we're going to say here's the cost of -- here's our opportunity to invest in our stock, here's the investment -- opportunity to invest in the new loan, here's an opportunity to invest into existing loan. And like those things should all line up where -- and we should -- that's how we're going to allocate capital. But I don't -- I'm not sure there's a different cost of -- I'm not sure we're going to allocate capital at a lower cost to our existing portfolio company versus making new investments. You might do that, but you would look at the return of the fair value, effectively the incremental value you're creating when you mark the investment -- to mark it on your existing investment.

是的。首先，我們將所有投資都標記為公平價值。所以我想——我想我理解這個問題。但是 - 因為它與我們現有的投資有關，並且考慮到我們以公平價值標記，例如 - 我不確定最低門檻利率有多大差異，因為 - 存在沉沒成本，所以你——我試圖即時思考你的問題，但就像與現有投資相關的沉沒成本一樣，它就是這樣。因此，我們標記——我們要說，這是我們的成本——這是我們投資股票的機會，這是投資新貸款的機會，這是投資現有貸款的機會。就像這些事情都應該排列在哪裡——我們也應該——這就是我們分配資本的方式。但我不確定——我不確定是否存在不同的成本——我不確定我們是否會以較低的成本向現有的投資組合公司分配資本，而不是進行新的投資。您可能會這樣做，但您會查看公允價值的回報，實際上是您在標記投資時所創造的增量價值 - 將其標記在您現有的投資上。

Our next question comes from Mickey Schleien with Ladenburg.

我們的下一個問題來自拉登堡的米奇·施萊恩 (Mickey Schleien)。

Josh, just one sort of high-level question. Obviously, your company has had a great experience and solid returns in the retail segment. Now we see airlines completely dislocated for reasons greatly out of their control. But you have blue-chip names with -- and in some cases, with very high-quality assets. And there will be a day when you and I and everybody else on this phone call are getting back on airplanes and traveling and visiting companies and visiting clients. So I'm curious whether you're thinking about that sector, something in which the BDC could invest. I realize you're not investing there now. But it would seem that there would be opportunities there, which could generate some really outsized IRRs if the deals are structured correctly.

喬希，這只是一種高級問題。顯然，貴公司在零售領域擁有豐富的經驗和豐厚的回報。現在我們看到航空公司由於無法控制的原因而完全混亂。但藍籌股擁有－在某些情況下，擁有非常優質的資產。有一天，你和我以及接聽這個電話的其他人都會搭飛機返回，旅行，拜訪公司和拜訪客戶。所以我很好奇您是否正在考慮 BDC 可以投資的那個領域。我意識到你現在不在那裡投資了。但那裡似乎存在著機會，如果交易結構正確，可能會產生一些非常大的內部報酬率。

Yes. Look, so the challenge with the airline industry, first of all, I think the some of that opportunity set has been displaced from -- in the short term through public policy. And so they've got a decent amount of support through the existing policy programs. And so I think the challenge generally with airlines is that we always thought asset value was a little bit illusionary. Given that the time you needed your asset value was where the -- it was -- typically correlates to an environment where there was a time where it was oversupplied and there was -- given that if it was oversupplied, there would be no bid for your underlying asset value. So I think the airline industry, given the amount of -- I think amount of kind of permanent demand destruction and given the operating leverage, I think it makes it very, very challenging to invest broadly. There might be opportunities in the future to do things. But you're looking at an industry where it's going to have -- there's real demand destruction. I think it took 6 years post 9/11 for demand to fully come back. I would expect this is actually longer. This relates to people who have internalized their personal health. You might see that -- you might see it come back a little bit quicker with the -- if you do see an antiviral or a vaccine, especially a vaccine. But I -- quite frankly, I'm not given that there's been a lot of public resources devoted to the airline industry, and given the amount of the demand destruction and the asset values are tied to effectively how much -- what the supply is, I think, is very challenging -- not that it's not investable, but that -- you might find several opportunities, but I'm very happy that we're not long either airline credits or not long underlying assets in the airlines today. It's -- I think when you take a big step back, I think there are -- the travel industry, especially the asset-heavy models which I think differentiates from kind of the Airbnb models, the -- and real estate, I think there is -- will be long tail demand destruction both for real estate and for the transportation industry, especially those people who own assets will be very much affected.

是的。瞧，航空業面臨的挑戰，首先，我認為其中一些機會已經在短期內透過公共政策而被取代。因此，他們透過現有的政策計劃獲得了相當多的支持。因此，我認為航空公司普遍面臨的挑戰是，我們一直認為資產價值有點虛幻。考慮到你需要資產價值的時間通常與供應過剩時期的環境相關，並且存在——考慮到如果供應過剩，就不會有人出價您的基礎資產價值。因此，我認為航空業，考慮到永久性需求破壞的數量以及營運槓桿，我認為廣泛投資變得非常非常具有挑戰性。以後可能還有機會做些事。但你所看到的行業將會出現真正的需求破壞。我認為 9/11 事件後花了 6 年需求才完全恢復。我預計這實際上會更長。這與那些將個人健康內化的人有關。你可能會看到——如果你確實看到抗病毒藥物或疫苗，尤其是疫苗，你可能會發現它的恢復速度更快一些。但坦白說，我並沒有考慮到航空業投入了大量公共資源，而且考慮到需求破壞的程度和資產價值實際上與供應量有關我認為，這是非常具有挑戰性的——不是說它不可投資，而是——你可能會發現幾個機會，但我很高興我們今天既不做多航空公司信貸，也不做多航空公司的基礎資產。我認為當你退後一大步時，我認為旅遊業，尤其是重資產模式，我認為它與 Airbnb 模式有所不同，我認為還有房地產對於房地產和運輸行業來說，長尾需求將受到破壞，特別是那些擁有資產的人將受到很大影響。

Josh, how do you feel about education? And I'm not talking about online products or for profit universities, but I'm hearing about just enormous liquidity constraints that -- across the university system. I imagine some of those are actually your clients. Are there opportunities developing there that we haven't thought about that might be interesting?

喬什，你對教育有什麼看法？我不是說線上產品或營利性大學，但我聽說整個大學系統都存在巨大的流動性限制。我想其中一些實際上是您的客戶。那裡是否有我們沒有想到的、可能有趣的機會正在發展？

Yes. So first of all, most of -- when you say our clients, you mean in our LPs or portfolio company customers?

是的。首先，當您說我們的客戶時，您指的是我們的有限合夥人或投資組合公司的客戶嗎？

The endowments as partners.

作為合夥人的捐贈。

Yes. Look, I think the -- I think -- I mean, we're always going to be or want to be a solution provider to whoever our client is, if it's endowments or pension plans, et cetera. There are -- as it relates to trying to find good assets for their balance sheet. And so I do think the education industry is going to be under a ton of pressure. But we're always a solution provider for our clients. Where we -- if we can find good assets that help them either meet their liabilities such as pension plans or grow their assets as it relates to endowments. But I don't see us being providing loans to either private universities or private endowments. I don't think that's an opportunity set for us.

是的。聽著，我認為——我認為——我的意思是，無論我們的客戶是誰，我們總是會成為或希望成為解決方案提供商，如果是捐贈基金或退休金計劃等等。有 - 因為這涉及到試圖為其資產負債表尋找優質資產。所以我確實認為教育產業將面臨巨大的壓力。但我們始終是客戶的解決方案提供者。如果我們能夠找到良好的資產來幫助他們償還退休金計畫等負債，或增加與捐贈相關的資產。但我不認為我們會向私立大學或私人捐贈基金提供貸款。我不認為這對我們來說是一個機會。

I was hoping for a structured credit question.

我希望有一個結構化的信用問題。

I'm not showing any further questions at this time.

我目前不會提出任何進一步的問題。

Great. Thanks, Mickey. Very much appreciate everybody's well wishes. And please feel free to reach out to the team with any questions. Obviously, Memorial Day is going to be very different this year, but I hope people take the moment to spend time with their families and friends and enjoy the time they have with their loved ones and people be safe and wish only health and happiness. Thank you so much.

偉大的。謝謝，米奇。非常感謝大家的良好祝福。如有任何問題，請隨時聯繫團隊。顯然，今年的陣亡將士紀念日將非常不同，但我希望人們花時間與家人和朋友共度時光，享受與親人在一起的時光，人們平安，只祝健康和幸福。太感謝了。

Thanks, everyone.

感謝大家。

Ladies and gentlemen, this does conclude today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。