AINV - Earnings call transcript Q1 2019 | MidCap Financial Investment Corporation

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Operator

Good afternoon, and welcome to Apollo Investment Corporation's Earnings Conference Call for the period ended June 30, 2018. At this time, all participants have been placed into a listen-only mode. [Operator Instructions] I will now turn the call over to Elizabeth Besen, Investor Relations Manager for Apollo Investment Corporation.

Elizabeth Besen

Thank you, operator, and thank you, everyone for joining us today.

Speaking on today's call are Howard Widra, Chief Executive Officer; Tanner Powell, President and Chief Investment Officer; and Greg Hunt, Chief Financial Officer. everyone call advise being webcast to recorded. like that and today's are I'd they of is the and note are Please that property unauthorized in that broadcast Apollo any prohibited. form strictly any Corporation Investment earnings audio the call in of Information press about replay release. is this available our in I'd disclosure call safe to regarding release like attention to press also customary forward-looking the your harbor our information. may Today's conference statements. call include forward-looking and webcast

the to, risks our statements uncertainties, not of and as business our involve including, and statements companies. limited Forward-looking portfolio results, to future prospects prospects our but

please required to You make. and of copies should affect refer shareholder undertake which Howard or www.apolloic.com. reports visit to to on filings, financial by SEC we like the time, I'd business our unless our our that we've do We to registration for also information law. statement call risks and information to a update To well that our statements turn At statements remind to adversely obtain this may the contains our as that about everyone not like any package our forward-looking forward-looking supplemental portfolio, as apply financial projections over at posted Widra. website, performance. I'd website company's the

Howard Widra

as operate brief to will with call I on followed a additional quarter, begin financial asset highlights. Thanks, some Elizabeth. results the business plan our by reduced overview requirement, providing today's investment a of for and update well as activity by our coverage an

financial results and environment, then our Greg first the activity. continued Following period. quarter will Tanner my progress repositioning the remarks, our the portfolio discuss our will market review for investment

call investment the open questions. to then our Beginning activity. will with We

quarter. our we capital to portfolio executing continued our total, the $XXX repositioning progress in plan In actively as During strategies. deployed during we the million quarter, we deployed core make

Repayments first was we co-investments floating companies; million, modest. XXX% XX% revolvers. new loans; $XXX XX% and X was and million, and investment in order. was Merx activity, loans; million. revolver activity XX% rate Net companies; in was were activity, lien $XX to XX% which pursuant portfolio our in Merx Sales repayment million. in excluding revolver was Excluding excluding of in $XXX deployed X positive was existing were $XX were Sales activity,

funded of Merx of and received the revolvers the In for of million pay X.XXx. of net million. activity $XX downs we end net addition, Net million into total as leverage $XX quarter investment $XXX was and

of quarter hedge losses declined at our well $X.XX Moving investment asset financial the performance and Tanner will a Merx, was to in remarks. Tire, American oil Net companies, income to as our our Net on discuss contributors idiosyncratic per $X.XX unrealized our an credit as results. partially by driven share, value investment share. event for $X.XX by to per on from impact stock in accretive his portfolio key slight our buybacks. offset the gain one

plan Moving operate our asset a with reduced requirement. to to coverage

April, our reminder, requirement, reduced Small which AINV's March, differently, to requirement. an reduction early Board leverage. in or a passed, Credit was asset increase a said Act Directors Availability As with the operate late BDCs Business asset coverage in In of approved permits in coverage the

should investment believe a during to lower-risk NAV. stable to XXX% XXXX. generally market generate coverage from improve April earnings be We our asset in ability effective the intend use which we will As and assets, our result, ratio XXX% reduced incremental to to minimum normal capacity conditions invest

originated senior increase rate the first ratio Platform. ability Apollo X.XXx, between already to lien limit. assets a expect volume to our We by believe below a and We well the Direct operate unique floating opportunity the robust AINV provides leverage with new for of the Origination given debt-to-equity X.XX of

spreads with basis leverage with incremental the XXX We basis lien Xx first of of assets floating loans, be and rate points LIBOR. points over XXX majority of Xx to will expect to

during asset quarter Although much minimum in not coverage lower-risk yet deployment the of reduction effective, our was is June profile. consistent the ratio the with this

Now, the in coverage asset brief minimum for funding reduction provide on requirement. let plans our our a me update

bilateral likely Additional on as by facility. facilities like our of will as MidCap come credit leverage from the used revolving secured well assets, facility credit some identical

We continue credit constructive bankers our facility. to conversations on have with amending our

distribution approved distribution. Turning to record The XXXX. our of as of board $X.XX a to XX, September shareholders

our held shareholders. the Lastly, over to stockholders our earlier discuss I'll greatly turn support the today. meeting annual of the call With to activity. its company Tanner We appreciate that, investment of

Tanner Powell

advantage Thanks, opportunities, our if investment sponsor we of We deep focused can to opportunities broad capital deals Howard. than formation pricing. believe product environment. take long-term. we size put challenging is sense patiently on makes and today's combination origination That to to continue market borrower-friendly competitive in part given market. Beginning and capital. it suite, attractive space. relationships with This funnel more aggressive our issuers strong to allows environment, remains large robust We our remain have said, environment middle and this our Most the us to the only deploying Despite environment, work in platform, due lending selection, continue capital in debt this market to of the believe that compete for while many of in credit find we middle the relative expect structures others. successfully shareholders

repositioning during The of and co-invest made Merx, was are our was be X.X%. with investments X.X%, scale and Apollo's yield expertise, $XXX In our take portfolio to areas average quarter. and managed on opportunities funds debt strategy. and advantage capitalize on executing ability on our excluding progress by focused pleased on total, can also continue environment, of In other to We competitive weighted Apollo. million that this deployed entities with we we the

all improves that XX% to to of in broader in MidCap our lending, Excluding with We Apollo ability million, science lending were Merx life asset-based AINV co-invested lending split price. the that transactions. allowing by Apollo-managed competitive combined co-invest $XXX the evenly the co-investment commitments. these to scale and based than take roughly believe on and on of on one between of pursuant deployed us revolver makes activity, we large AINV size of positioning other which order made believe certainty compete transactions to more transactions. positioned of We market largest capital and and with platform MidCap just basis participants a and execution and rather was uniquely our corporate us our on

our from Let which me co-invest. couple we examples the demonstrates quarter, a of from to deriving are provide benefits ability the

the provided of us the First, to devices. XX generate medical million. allowing components credit a entire facility million of that and advanced platform size syndicated fees. the commitment, additional final portion hold provides ultrasound take-private $XXX imaging platform for company Analogic, a AINV's the Apollo was The

quarter-end, facility credit Eagle's refinance Eagle as second a leading investment to of Away Family new servicing in increase AINV for million of XX.X XXX approximately grow investment to for two XX a is approximately natural the Merx. more Proceeds taken to opportunities, or Aviation the buyout securitizations aircraft expect to from the terms. enterprise were in representing our co-investment aircraft. covering facility. into of to At AINV, a facilitate million aircraft value. Aircraft for represents operating Merx deployed we portfolio canned of continued XXX has over snack approximately it these XX.X% committed was Merx of popcorn, June, Merx time, fair and Merx servicing at pursue value. $XXX leasing which milk, Foods, of example, its progression and during This entirety is For two domestic Subsequent full-service favorable used interests million million, platform reducing million million the senior we of underwrote manufacturer a should enhance products. platform. capital other XX co-investments, XX.X% responsibility portfolio the to Merx our additional Apollo securitizations, fair the for has income its junior to source was of Pro exposure. quarter to forma in Merx servicing secured at thus a XX refinanced value. Over the which the salty structure. performance at of one repayment, AINV's repaid Merx AINV's the end

weighted yield the XX.X%, mentioned, Howard was was X.X%. average and on activity sales As average repayments modest. and The debt was yield sales on weighted repayment debt

the to performance. portfolio's Moving

million prices, part lower-than-expected value our move drilled and value of small oil Our due portfolio, moved not impacting hedge, an a loss as of $XX.X on used the was company. on had of at A flat, hedge, net the a by uptick decline to negatively our investment essentially gas was was to which end the including being hedge. of while new positions by to quarter to consensus negative the in it the oil of oil end is and lagging the including write-down is and based quarter. the did the used Glacier, Most a the gas the on short-term due longer-term value on variance site yield the much the oil indicators of of million hedge. the the due down, Because of prices price-moved, impact the X.X in

During price conjunction the have improved taken strategies companies. the exposure long-term quarter hedge in hedge to NAV given of the of exposure to has with the our steps quarter-end, by: to used and hedge post more hedging movement the quarter-end, remaining reduce we value underlying Since reducing repositioning measures oil. and value at to the closely in two, valuation companies; our our one, our the hedge

American or period debt investments Moving share, in recorded during on, we of a Tire. net XX.X loss during unsecured on million and the a $X.XX equity our quarter, the

its obligations two products. traded that During two to to and loss distributor for the a American suppliers, forming structure suppliers, service dropped to off and its maturity. the Bridgestone at debt distribution American The major to recently Tire profitability, tire entire its Tire and ability due expected announced is a which negatively Tire's refinance of impact they're their ability quarter, announced capital as significantly materially American and the recently capital Goodyear, reason, joint its partnership, of structure

our the outlook debt company, American exited the for Given in Tire. investment we

unchanged weighted weighted increased relatively to current or was will and decreased spend investments from performance average me our quarter. status. investments is companies of end up from at the the risk the who coverage discuss net prior X.Xx. call X.Xx. by placed of At The now The quality. overall interest portfolio portfolio to June, leverage value the discussing let and profile I'll few the a the quarter. portfolio from interest to X.X% average Now, for cost. nonaccrual nonaccrual measured our X.Xx, to The compared X.Xx, Greg, leverage financial that, investments of over down average credit on our status were minutes the No the of coverage weighted turn With on at X% represented removed for current fair

Greg Hunt

income up million, partially higher fee incentive primarily XX%. the X.X income. interest recurring to quarter-over-quarter, fees Expenses management XX.X increased, Thank was quarter income a size due quarter, and a due The offset March and quarter-over-quarter. higher was expense. for lower June the due by was higher to XX.X relatively income to compared million, income due X.X% the compared incentive quarter-over-quarter, average in the Prepayment rose, fees, of XX to Dividend as average Expenses dividend to for unchanged [indiscernible]. dividend Merx from approximately higher well increased you, fee higher income as quarter, the for the and interest quarter. to XXX,XXX portfolio. in income, Tanner. Revenue the million quarter interest the due in totaled higher increased, and prepayment million Management portfolio. increase to the in was Recurring quarter March

a million to fees of will the quarter, rate incentive fees fee was XX%. December between due XXXX, for given XX.X or increased million the per share in The $X.XX X.X%, to be in unchanged in period of due compared of Net quarter. balance, our to average $X.XX the share April or or the debt a activity the was for million the increase a March share income. XXXX, cost the share, $X.XX to XX, through loss million $X.XX compares investment per the reminder, $X.XX, loss per the share the XX.X portfolio Interest reversal level as March quarter. declined for from average million value quarter. net PIK the Net or income quarter-over-quarter. in net XX.X essentially investment asset per X.X which of due totaled $X.XX March the of incentive As the The end was primarily debt at to quarter, or of per expense X, to share uncollectible quarter increase the incentive per for XX.X

of end XX billion, companies the portfolio across of industries. our value composition. the consisted to Turning $X.X fair June, of portfolio At had XX a and

X%; XX%; X%; from remains of portfolio and yields was XX% our impact on structured on debt the second X%. partially portfolio; rising offset common at average new First The lien debt preferred XX.X% represented products, equity, lower yield unsecured, lien weighted that represented investments. cost as at LIBOR and by

Assuming from translate June, approximately composition no into rise income investment an XXX basis the sheet share. net change in end our an of balance $X.XX of additional in LIBOR will points per incremental

side our the had of at of end of the On sheet, liability debt $X.X balance we outstanding quarter. billion the

of stood at at the June, March. leverage net X.XXx end compared end Our to at X.XXx the of

down our aviation mentioned, AINV, and concentration, to previously Merx right to quarter-end As our net down bringing XX.X%. leverage after X.XX repaid to XX.X million

our facility arrangements. revolving Howard in exploring As borrowing we mentioned, renegotiating process of additional credit and are the

few reduction to a as coverage minimum agencies with our a met rating [indiscernible] recently also in and have the review ratio. We

pleased Ratings AINV. Kroll Rating are investment-grade investment-grade rating Bond our that affirmed assigned recently and Fitch an rating, We to

the the our Lastly, of inception shares or average questions? of for call repurchased million, purchased X.X of a buybacks, This initial program, available you please at repurchase million under X.X including our X.X% commissions, total outstanding share price $X.XX, stock for XX.X approximately million the cost quarter. regarding an to during XXX concludes total XX authorization. open approximately have we Since will repurchases we of period, for board's million a the the shares our shares Operator, remarks. during future of cost million leaving

Operator

from Leslie Vandegrift of the Raymond comes [Operator line with first question Your James. Instructions]

Leslie Vandegrift

Hi, good my taking thank and you afternoon questions.

we're and You good or been had that like the until senior those there for past at looking in that so, for still there's we've what's competition higher [ph] that originations, the looking able quarter clock possibly heard be at next the secured coupons to you're now? waiting that to increase ABLs obviously, out a but I know months on pipeline really the in more April leverage, XX right there. like given

Just curious what outlook this quarter. was the

Howard Widra

sciences to sponsor either looks of this They through past it outlook the for I of this quarter of our past quarter a asset-based or but number think investments, a mean, quarter, was able came similar not repayments only I they to probably think, higher, of the, for first of being were through do verticals. the bunch lien is life sort but or outlook different looks I one channel. for strengths origination although similar. the this

competitiveness. And diversity should so sort feed volume that of continue to reasonable going forward, despite the

And in ability so, where near are feel pretty in continue originate to about we our of to we terms the good term.

Leslie Vandegrift

Okay. in until know I the in what a willing below increase but is April, go leverage now? you mean, to meantime, then now I while waiting around bit little to the XXs X.XX, for you're have like then? past And maybe the targeted between willingness and

Howard Widra

so, XX expect Yes. I to mean, months said, to at we're over we or like where we X.XXx were we X.X. move over, leverage so and I X.Xx willing. mean, to from

And but somewhat should linear. be won't so be it linear, exactly that

expect calendar higher, the we up towards today. X.X those So, would we even the next as year move as closer towards quarter be further and moving move to or first we levels to

Leslie Vandegrift

but guys size Okay. Merx, now, an so leverage feel I I they performance, now, but of And to comfortable the you some it's of so back Thank how given, issue X.XXx had on on great mean, do that investment right not quarter, you. down on there, portfolio, versus big going quantity? quality and net repaid right it's after then just know you're the

Howard Widra

in portfolio of the term through and as same be – the the Our of growth size. either But Merx to That XX% some overall is that returns portfolio. that will to increased if so accretive stays for now will accomplished the through it very obviously, happen be the outside I the One, actually Merx think trades it can of the the XX% ways. at platform has two accretive be goal in also servicing third-party through use leverage will be long value. to a capital well, for it to those

sort spread out. incentives more And to of that so, there's even

that that the as the overall achieving how goal So, investment to between time shrinking and growth that portfolio the given sense portfolio is we aspirational. not intend the in way portfolio. makes growing expected, a we It's we're a that in over on grow

Leslie Vandegrift

on talk other in Obviously, out rating others? possibly on? just get there, others then you And there going peers Okay. talks Kroll. Fitch look, with get their lastly, the the are heard known, are of to it that It's agencies. S&P from from any you agencies out thoughts there has good but great rating willing that rating are and a you guys from still We've made

Howard Widra

comfortable No, were at the there very are this Kroll rating with none. point. We Fitch and

Leslie Vandegrift

Well, thank taking Okay. for questions. you my

Howard Widra

Thank you.

Operator

Jefferies. next the with Joseph comes Kyle of line Your from question

Kyle Joseph

Good afternoon questions. thanks guys, my for and taking

if out rates. thing conservative a a sense could And it, for on from a looking and of where yield combined level same more, us the anticipate Just target call increased with high for cost you us give then if years, guys your sense a leverage do you side your a portfolio few you funds and you as rising thoughts trending. could give the portfolio, also liability on

Howard Widra

Yes.

So, a that we be have XX%, projecting to which rough of admittedly has sort on been asset up. estimate sort the continually LIBOR we of are because at is said side, somewhat going

XX meaning basis basis in see maybe LIBOR quarters and up basis XX spread up XX lien, of you'll portfolio, our points about change first our gone as of the over composition points. well gone has quarters despite even the or so, as two the has points two last or And our significant spread,

basis but stayed So, points were we versus where above we got previously. LIBOR, in XX other compression words, we've

XX%, few continue a fact with likely a make a of the the we to have, year, LIBOR, sort strawman that more conservative to sort so, especially raises relatively of be assumption. this despite And

Greg Hunt

mentioned then, of on rising talked And in we the XX% all-in to L+XXX, about targeting kind Kyle, in the our Yes. deals the remarks, as which environment. we to past, prepared L+XXX matched of rate comment Howard's in kind

Kyle Joseph

then, Oh, I can. side And you then yes. liability was if Got it. say to going as well, and on the

Greg Hunt

On depending at we [ph] bilateral we the LIBOR at mix unsecured that know targets of X.XX be how we're keep the shouldn't off where far the it, way I today are upon you facilities the the we looking much that outstanding. and moving, with side, liability we think depending upon how subject

Kyle Joseph

And it income missed it, rate Apologies like Greg, quarter. give can then, anything in the it. for dividend Got there? up if looked there? an I Or ticked onetime the you but outlook run

Greg Hunt

run Yes. more is the million quarterly probably run that's I or leaving basis. I capital a mean, rate a function down in Merx. business the on it Merx of Again, pulling only think is $X rate a out.

that, With that quarter. this dividend that take we larger favorable very that's transactions and bit had the of came some why we occurred, out did a earnings little

Kyle Joseph

Got then changes, for valuation? you guys it. you do repurchases? Or appetite can for on your update lastly that Is leverage going more on give it given you have And us dependent be to can me, still an given appetite? increase leverage,

Howard Widra

that makes it, No. versus appetite, which same the like we rather We've investments. sense appetite good prices feel we for – a been we've – but had pretty alternative have at always has

remain in the viewing the that So, eliminates be. sort our of price, the trades of Obviously, cap we a at any we but traded I as price on to wrong increase active continue and guess. last were sort leverage good when as that we right the pretty of theoretically, or use stock down, capital the will quarter stock

Kyle Joseph

That’s answering much Got helpful. very questions. Thanks for my it.

Operator

Ryan Your with of next Lynch line question KBW. comes from the

Ryan Lynch

afternoon. Good

portfolio guys growth. quarter, some This had nice you really

net did And saw implemented income or the in NII I that quarter kind some one actually lower-yielding, but nice you it you operating increase of I and where of lower-risk where at believe went of quarter, if quarter investments. kind quarter, lot this it's co-investments this you said I look strategy the new a You in first first down leverage. a was sequentially. or know only did the

just to to the to keep add X target, leverage leverage intent So, increased intent with the ROEs is more leverage the actually the is grow you or sheet or intending portfolio? and X ROEs, but balance de-risk of kind same, your are on

Howard Widra

there will be think I both.

ROE. and will I ROEs get increase to so We're split will – yield leverage going both we certainly our think the lower and that. will risk the better our and our

you a income saw quarter fee down bit I this little think was because disproportionately NII low.

other syndication You a actually well. little get could not fees, of runoff, well which we as as see so as much

lower quarters meaningfully in has we our rate. was in other expect it run it from So, than been what

wouldn't the all NII of sort like leverage. permanently benefit I So, at eating ROE the into from read the up

Greg Hunt

of deployment And more it's the towards the also to end quarter. the calendaring of

Howard Widra

As well, yes.

Ryan Lynch

there quarter just deployments were be this you clear, said quarter? in of that to So, was most the also later the

Howard Widra

Yes. correct. That's

Ryan Lynch

that with stay these you can of facilities will do side. are spread? potentially facility lower Okay. that XXX current it And Either gets the think know Or think you this where spread or on bit, facilities, it will kind looking on Greg, I then I other any a one current XXX? some at that Or well renegotiated, is add than get you is when said little come that The priced on believe, basically that L+XXX. you your bilateral the liability in? new at bilateral renegotiation facility, you but as more touched you bilateral facilities. as to renegotiate

Greg Hunt

be I think better. new to I won’t going it's same. about think spread the get will

Ryan Lynch

your Those questions Alright. from were all Okay. the you Thank time. for me.

Operator

Casey Compass with of Your line comes next Alexander from question the Point.

Casey Alexander

hedge Are And changing afternoon. your has the based worked? resizing net when are energy upon good Hi, you all value? really hedge it the investments you how in out,

Howard Widra

to answer first question So, is the yes. the

what's We happening well hedging how of companies are those that's have, one. as hedge are resizing at they strategies so whatever on the as the companies, performance those both doing,

NAV at are but of the our of you underlined not if of we one hurt the so And our consistently used sort to Two, so, hedge, is the and sort it. currently up, of sort which up have of have because hedge, prices loss as gone that value gone there's value we look reasons looking the at has the which long-term is investments. value – prices much, of the been short-term

loss look then, hedges, the not it, oil, actually about related hedge, at we've is sort related that the of the half you it's on that to work loss the to have loss the case at an we've to new of level amount NAV you the sort so to the increasing the oil of had to of that's gains would underperformance that we try from we've performed of of look the had. sort but in investments, been and subtract of at If to And the attribute out – done price basically on of as and if correct well teens. had opposed for exploration and below and they've some one

to into been but the Not account, has close hedge neutral. you there, that's at take the X like, quite So, [indiscernible] when XX.

fully not If goal We today, to is than did what We by even hedge was. our out. the which much amount, wanted you not to way, did it it want that it less that. it closer would be to hedge

to So originate. Does we not were where mean, place. have would what be, to that I we're put result but the of short-term/long-term it the we which that's trying to trying it? still that's liked quite that, answer mismatch, is in having

Casey Alexander

my only you. Yes, And question. that’s Thank it Thanks. does.

Operator

line the from comes question next Your Barclays. Instructions] Ma with Terry of [Operator

Terry Ma

it's little different a some Hi. sort about looks little of bit that bit Can It have BDCs of far. more so than the to your other announced a you expand like talk strategy leverage?

of but range, a lower-risk higher-leverage You're pursuing kind investments. targeting

have think lower-leverage and in the indicated I strategy. some no guys range of change other a

Howard Widra

Well, Right. right. that's

I think that's right.

strategy, in have fits how how we it result think the origination of wanted we've what with of how past to given having deliver over strategy us that the to well I successfully the years. those shareholders that's and the opportunity couple that much fits think changes for make we and

ROE I'll or lot it fee, other wins. okay, so, management And go open about knows are at safely who leverage. increase run my I that lower door. up. I can returns bit some if I leverage will of get up yield. people little I’ll that a saying, can higher Everybody there my If a But think not? I

feel like what consistent people's For running that we strategy to opposed some this at exactly drive X.X to to there feel other you're is to X.XX, went like, with I this think through And this seeing announcements. clearly quarter. X.XX us, we in We as and is origination last X.X strategy. most as there

to And to, really we're bit of do more we let's going a away going so, thing. do Maybe because we're more move that the do same. little saying, say, it, how they're of further from

saying we're exactly our strong points us, For into are. fits what this

this only not from be market, competitors' have being itself to portfolio X.Xx. getting this leverage lends and origination, X.Xx the origination than We we will at the our but a as at safer, think, portfolios

Terry Ma

target you ROE Got And you your range have it. leverage a given do once expand leverage?

Howard Widra

work put that your to able be to conservative achieve, like where hopefully Yes, range. in we'll it's goes we XX%, together double-digits back model it's Again, low question you off double before, digits, low it that XX. it if XX, XX.X, but to a

Terry Ma

cycle Merx, out. are there? much how And comfortable you it. airline on Got low topped have I the think and Okay. then the the pretty risk factors with

last the bankruptcies. airline their think I two saw quarter

and you you the cycle? So, talk about comfortable concentration just can risk how your with are

Tanner Powell

Yes, sure.

there. points of couple a So,

in foremost and cycle, amount our notwithstanding one disproportionate First any ladder is we us that to have the we to back assets lease year. not of do our such a coming have endeavored maturities

taking better landscape. environment, across been point The the is a in carriers rationalization carrier would as second secular place benign and a from be benign, a pretty just are not it but standpoint, place frankly, has

And things – and up quality, reflect then, third books the has me planes and more that in to so being in our assets the GDP the the risk similar to that portfolio. at more higher-quality a And so, too, the you create which exceeding been to out of ROEs manage terms equal, that want work plan recent that the demand can And less we about carrier in balance another helps credit-risk borne we is of the, be were in layer from strategy think market and afforded to we This for nicely. put ability us overemphasizing, has servicing, us would counterparties. to all the producing will that, as younger opportunity where to cyclicality and sheet point on go and referenced, sheet broadly. before, put standpoint, balance the

Terry Ma

it. Thank me. you. Got it Okay. from That’s

Operator

question Securities. the And Fargo from of comes Fin our Wells line with O'Shea last

Fin O'Shea

question. guys, good afternoon. my Thanks Hi for taking

you, the due That Energy, a to me? kind that you recent on some reconcile originations, very or points, percentage names Glacier you to compared Can – net edged down just couple help First, noncore quarters. the meaningful other for that of than had of maybe appreciating composition. especially was can but of

Tanner Powell

Hawk is, that. which resulted been good more relatively capital Fin, if Also, quarters, slight made contributor over has a that the being percentage investments, debt a call to you're of going talking we into investment we opportunity marked in last on discount, an will Spotted our this, have point in to originations, particular. of ahead another reference the previous case the a believe, buy-out shipping be is I actually that subset same. period, also found in which to slightly we What of So, us couple the up over but that our of at the

Fin O'Shea

rating. you. then Kroll Thank And earlier the on to it. question Leslie's on expand just Got

Fitch give can the sense noticing, and your Just maintaining peers holding of the assuming of Kroll just of terms the much S&P moves flexible for capacity? more out that how therefore that that's your combo you a needle revolver been in subset rating, more us has meaningful, the

Greg Hunt

it our capacity, ability I It's say, marketplace. would to our it unsecured, that Well, the sub-debt really that affect doesn't. affects on It so at and access doesn't Revolver all.

comfortable and us with for – And talked they don't both bondholders, of We see we it it's our not will number what are mean, go forward. can't and we a a Kroll to rating I their really Fitch purposes. happen. have project as affecting I

Fin O'Shea

Thank you.

sub-debt? a the just asset-based So, the secured revolver? more Howard think, not matter bilateral, It's the of – facilities versus it's versus as general more the so I described revolver

Greg Hunt

Yes, it is.

Fin O'Shea

for so Okay. questions. Thanks much taking my

Greg Hunt

you thank very Okay, much.

Howard Widra

if us, to you questions. you operator. day. On your other reach thank have the Have for feel we your any out to continued time behalf you, Thank of any Please team, of support. free a great today,

Operator

This call. concludes today's

disconnect. now may You

MidCap Financial Investment (MFIC) 10 Aug 182019 Q1 Earnings call transcript