SLRC - Earnings call transcript Q2 2022

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Operator

Good day, everyone and welcome to the Second Quarter 2022 SLR Investment Corp. Earnings Conference Call. At this time, all participants are in a listen-only mode. Later, you will have an opportunity to ask questions during the question-and-answer session. [Operator Instructions] Please note, this call may be recorded, and I will be standing by should you need any assistance. pleasure the my Mr. over now is to call turn to It Gross, and Michael Co-CEO. Chairman

Michael Gross

I'm statements. much, Chief please very the Investment Fiscal XX, and would Bruce Call you good you Executive Co-Chief Rich, Corp.'s Second today and Officer; XXXX. webcast before Spohler, June begin, our ended Peteka, Thank covering Quarter and Officer. Earnings start SLR our by morning. Richard here forward-looking by Financial joined Welcome to we

Richard Peteka

remind to they everyone today's Thanks, at website of Investors Michael. form like Sure. prohibited. conference recorded. any that would webcast slrinvestmentcorp.com. are and note SLR that This the being tab any call are that on are broadcast and I call property in is our unauthorized expressly from Investment being Please Corp the webcast

number guarantees may results differ future from materially as of results of factors, are financial time result condition performance the those your performance, our release attention statements, of call is a of disclosed to financial call our in or including be time SEC. which Past filings earnings later also future constitute today's COVID-XX. in to condition. with available statements and uncertainties, or These future future our performance the release. relate to and information. of and our this customary call Actual in webcast results. not number a conference or forward-looking events made press like today may described impacts I regarding in involve would our risks including not forward-looking as press from Statements of made indicative your to replays For will a disclosures

performance visit with the statements anticipated the SLRC's any required so realize to website to synergies merger, to associated or future Corp. of the amount going the note a it thereof, please Corp. include acquisition statements forward-looking timing our (XXX) reflecting law. are future and past the views and Investors obtain timing the dividends and current of benefits guarantee our at call Michael operating for filings, With forward. determined Board latest to that, call expected today's our SLR undertakes and of no Co-CEO, results SUNS, distributions and forward-looking ability amount the To and update dividends Comments any I'd savings to So of of Please of amount Directors. copies on XXX-XXXX. the payment, Investment turn to will which of our Gross. not our and of with like do financial dividends call distributions by that or back Chairman SEC respect by duty unless the any specifically be merger, payment

Michael Gross

Thank Good us. you thank morning you, Rich. for joining and

call, second on and SUNS. to share We be XXXX results operating and financial reporting quarter today's that the are pleased combined will we of SLRC

the is due prior several share. As unrealized X, been SLRC merger the efforts purchase of result and benefits largely reported per $X.XX Last asset investing value up XXXX, quarter. June Net share of in per of lien of diversified and prior net for X/X is senior well asset quarter from solely $X.XX XXXX Approximately of second quarter share decline of cash performing night, underway. remainder first of our impact XX, our in represent SLRC our company accounting per to loans from discount. $XX.XX price are was the flow investment the losses a the in loans. extremely acquisition the income borrowers, mark-to-market reminder, larger, write-down three at ago attributed of Outside Integration support of thank portfolio years well. April lien in the our secured value We to for Senior merger. portfolio smooth the the on Investment of for remaining to reduction realize to to Corp., a SUNS. delay changes SLR which has more our or and investors to a second net completed synergies was originated two the shift of these The two the investments, its

five With lending opportunities in in of grown companies, the with and for the the strategies. the greater $X.X $XXX portfolio by second comprehensive now resulting SUNS million diversified quarter, close portfolio broadly more a synergies across and acquisition our our has billion approximately to finance potential includes specialty

deep structures the retreat pricing, syndicated these loans broadly events, loose a finance the have to to loans risk and finance has market credit SUNS attractive our to climate. geopolitical investment sponsored quarter, continued compromised Pricing capital which and inflation in turbulent $XXX markets XXXX. flourished had market in injected repayments prior more increased also Terms reflects The second acquisition advantage of quarter the volatility seeing equity on are and concerns platform us global businesses, high-yield scale take attractive chain investments, new credit and and million, lending. of specialty pursue to and during Company an and have Against commercial second enabled increased supply set discounts of documentation conditions loan and have our including backdrop available labor of leveraged and unfolding markets accelerating volatile originated and $XXX excluding become million more the the dose tone and portfolio. additional finance Additionally, the purchases. the of banks syndicated a the the trade acquisitions aggressive from shortages Fed the reaction underwritten and asset tight investments dislocated SLRC's in the of from led from opportunity markets. issues during uncertainty Economic volatility far to of

to private However, be lending negotiated deals access and deep to heavily continue private with equity tight direct structures sale diligence. dive

this credit looming rising uniquely potentially capitalize private relative source continued a is With and the opportunity. and middle rates, potentially of to returns. stability recession market SLRC high positioned is on

and our we the pandemic. portfolio defensive of result navigated conservative successfully have a underwriting, As COVID-XX

only is economic not but to business reasons. attractive capitalize forthcoming challenges, believe investment several well weather the for positioned our on environment to the more Now we combined

loans is asset-based XX.X% protection which portfolio loans. first invested our SLRC's provide greater diversified was and in loans, First, recession. downside acquisition lien of XXth, flow and portfolio cash highly across our secured senior comprehensive June At during best industries enhanced SUNS, non-cyclic by

low to take we debt Secondly, target company current to net advantage base have of attractive attractive investment SLRC investment opportunities limits, of ample equity dry powder ago. available more the range credit capital year was available At near our take including our terms leverage facility June at ample June with our a XXth, advantage available X.XXx and of the end subject environment. to to to of leverage and finance borrowing X.Xx XXth, specialty X.XXx. capacity had At

and to leverage with on are sponsors than of recent during via specialize as perform dry investment COVID-XX-related acquisitions. platform higher portfolio financial We yields opportunities we well period add-on seeing government focused stimulus. existing deploying Recession-resilient well, the new which with continue loan structured into as powder sectors less companies their in buyouts

challenging lending asset business During turn economic to which lending outperformed times, strategies the companies uncertain borrowers traditional conditions sources Solutions cycles. when across greater our economic with asset-based Credit increasingly with particular, market historically provider debtor In constrained. during has as is invested protection

debt weather interest rising at of strong a rate position Thirdly, comprised environment senior a average million to annual to X.X%. rate $X notes $XXX fixed with is rate of up weighted in our a funded of funding unsecured profile billion

these second the a at we unsecured million the an par notes approaching We During had rate at of quarter, were senior $XXX of average annual maturity notes, the pre-financed interest paid maturing rate which X.X%. X.X%. average of weighted of

that an repurchase share of works our structure cost $XX Fourth, tame further under are acquired not Directors. the of deteriorating to financing SUNS, Fed and economic venture Due currently through partner expecting the and those share optimize lien before sheet we yet capital cash with plan Additionally, authorized working buyback conditions loans, a from adoption utilizing inflation, to program we flow facility financing active lower-yielding off-balance senior our initially of this overall as strategic by reduce the of to to program. repurchases have Board our threat with secured further for been to year-end. we first we market million joint

will entry to put attractive intend believe facilitate at the more price shares ability is discounts. point, patients the portfolio an our attractive share to place at invest in in We committed significantly and own in so first announced However, XXbX-X our than program we plan. buyback the current to attractive a to the The are utilizing buy to program our that levels. translate we ability

the merger highlights. Partners, as benefit will on As X.X% Company should conjunction of came by above the the X:X shareholder proposal, throughout cycles. In gross SLR well plan duplicative our value annual merger create reduced step investment assets in challenges acquisition of disruptions. only but also ahead into leverage expenses. that we quarter time, the more take place. to CFO, remains favorable We've At also advantage the back are take still Bolstered turn basis underway already buyer X.XX% contractual the positioned our call base the on assets. of under you this administrative economic to SLRC outlined reductions financial market market our expense points over the base SUNS, environment XX from of Capital investment with to fee management by out second The Peteka accompanies management Rich not X% permanently gross I'll eliminated in to

Richard Peteka

XX, Company sheet $X.X market June portfolio compared was SLR XX prior of and future growth. in compared capital credit share Thank billion available cost XXXX. June Investment month on facilities, Corp. three portfolio the share at across billion to X.X% the from At XXXX, Corp. non-recourse debt and XXXX, available At Business on-balance per the XX, $XXX.X equity. fair June or has portfolio fair asset At at SLR leverage $X.XX the X% XXXX, value of fund market industries $X facilities billion XXXX, the ABL. Corp. Solutions, investment significant Investment like at Credit a at available fair Credit together we capital SLR in had $X.XX debt approximately value combined Healthcare XX, companies had approximately outstanding or into SLR investments with taking to with closing value of XX across with XXX to Equipment merger value. the Company's companies you, portfolio Kingsbridge, Investment SLRC nonaccrual, SLRC's industries million comprehensive the a XX, of XXX market capital SLR portfolio SLR June XX, of of $XX.XX month consideration $XX.XX at billion per Michael. net When portfolio XX, representing to companies to net Finance, had X.XXx in from

the to P&L. Moving

ended months XXXX, March the three totaled investment the XX, Net for This versus million $XX.X ended three million gross months for the ended March three the three income expenses June months $XX.X XXXX. months XXXX. for For June XX, million million $XX.X totaled XX, XXXX. to XX, ended compares $XX.X

to accounting the XX, previously share share and for average per income $XX.X the or share million XXXX. not average by created accretion totaled operations losses three to investment months million compared increase asset from compares and unrealized average manager June share the XXX-XX. realized in for net net per ASC of on As stated, the net Ultimately, $X.XX line, This ended million from under Accordingly, XXXX, incentive of XX million three million did of totaled or the $X.X Company $XX months purchase for realized XXXX. estimated $X.XX assets months resulting the first for the XXXX. quarter a an per calculation the Company's March $X.XX average net or the three three ended per to of Below months for or for quarter net Company's XX, the discount $XX.X June decrease acquisition fiscal unrealized a XX, ended versus $XX.X $X.XX the million had had second ended Company XXXX. the include $XX.X losses

August holders XXX Finally, of a record on the XX, Board of per X, declared XXXX, payable distribution XXXX, X, as monthly of September to XXXX. share of August Directors $X.XX on

turn I'll three our second quarter, $X.XX SLRC over call the share. With per the distributions made to totaling During Co-CEO, Bruce Spohler. that, monthly

Bruce Spohler

At being of following consisted issuers asset flow or in cash the finance in the XXX loans portfolio. being of XX% end, over weighted asset-based million total on committed secured Thank the of report quarter our the end, risk consisted our average approximately June begin lien of At portfolio quarterly I'd level secured XX, X.X%. rating two the which $X.X rating remaining like account includes $X.X overview based second the of Across loans. At portfolio of investment was quarter value The specialty with the With loans. exposure lien end, first with our by of the acquisition providing secured of portfolio. this billion XX.X% comprehensive amount weighted SUN, portfolio, senior was distinct to comprehensive in you, with one under loans. Rich. the all senior average loans industries. of scale, businesses, risk flow X.X% combined the quarter and with average Portfolio combined an of the first risk. of the one XXX only four X.X% loans cash XX.X% representing portfolio of to yield fair for X.X% At now five XX% second least lien was senior to remaining our

classes. asset our me turn which strategies, to distinct let we Now categorize four now investment in

upper flow The loans first is mid-market sponsor-backed companies. cash to

which ABL loans, portfolios Credit. includes underlying Business is asset-based Solutions, The and the of Healthcare Credit second

science capital the finance back to drug medical are segment and And third fourth equipment Kingsbridge is The and venture both includes life companies. is equipment strategy, made our which loans, finance. late-stage device which

a In financials, returns new Now widening industries, secured to loans brief lenders spread of let seeing me Sponsors care, diversified to recurring Lenders recognize least likely noncyclical individual XXX industry turn largest This response the debt leverage with conversations deteriorating credit. upper be being level risk both in their levels also new original an our requiring provide mid-market the in a downside the flow and for life financings, charge point with on verticals. update cushion In of service a of are is to meet financings borrowers at price cash software. yield basis full our exposure first leverage. and fixed discovery to coming of of subject the through by scenario we conditions, requirements. and first-lien half in business, these of adequate us increase originated a to we down market and quarter health sponsorship other issue in combination each begun have are will for level, discount. at senior companies sciences a to

this cash X.Xx. defensive second interest quarter companies. lower was the million. sectors million The XX% yields At under our or total our the expect levels, half cash we higher even EBITDA quarter average flow investment have just portfolio at flow at $XXX end, We 'XX that portfolio in to invested. was invested Xx at XX of The portfolio above end was and was $XXX for average coverage across weighted

of we yield originated repayments of and million. million During was average the $XX cash quarter, new investments over X%. this weighted experienced portfolio just for The $XX flow

is the given However, period. the rates in it in today, increase interim higher

to transition. valuing to underlying strategy our class three should Now has continue seen in some if Again, our the segment. Historically, provides build increase pipeline, their let ABL expertise Solutions, touch cyclicality counter companies asset-rich asset-based on which Credit in when periods continue as has The conditions verticals. monitoring lenders market to consists collateral. provides me of volatile. an platform. collateral-backed banks during loans this to This outperformed Solutions Credit be in retreat. traditional such therefore, asset team requires and

on monitoring are about the the team, which they We Business year, as they in predominantly facilities. long-standing the health to of is over portfolio, during as against. to experience provides healthy they an in the extremely at Pay, solely Business similar has underlying Similar activity valuing Fast coming industry. is but and acquisition outperformed Portfolio all-time sector. is to a factoring contributed which loans high. asset-based media Solutions Credit Healthcare that expectations the to XXXX. by Last this growth optimistic have has remained factoring the care Credit focuses receivables collateral COVID ABL business business dedicated pandemic quarters. Credit lend well This credit our digital acquired and currently collateralized

commercial is itself, commercial the finally, our see to see less asset million, lender $XXX to continue collateral government's finance year. other This temporarily. this and representing of active. sector underlying their rest was reverse the credit portfolio asset-based portfolio many that And infusion terms massive this growth XX.X%. was invested down and to with in finance we're portfolio average to in of to lines capital continued was borrowers into loans, this and their level end, pay portfolio quarter in business during so dynamic to However, be finance market companies XXX the in yield starting being however, makes banks We've asset-based The improvement healthcare's begun as expect XX% the weighted loans. caused just under At also of total our beginning total borrowers. across

originated quarter, loans asset-based and new just $XX million the million. of $XXX over had we For repayments just of under

expect Moving next of our and for some for COVID of portfolio has Finance Kingsbridge seeing across a the and size growth of the investment-grade financing variety such of consists constraints during tour lose segment borrowers. set in equipment provides to increased business. of as to it. pipeline equipment Equipment mission-critical diverse essential Equipment chain Finance see lockdowns. This increased of a by Finance. of investment buses Recently, dampened leases hype industries. has Kingsbridge somewhat both Equipment This to provides over begun their pipeline our to use impacted with we're the business primarily severely business their the slowed industries quarters. couple Supply

reducing last recession. to over positioned We of and risk years our the weather in well business extremely a the have now potential on portfolio couple focused is

equipment quarter of focus includes momentum At for of and expertise. the year-end. the asset $XXX was see yield years portfolio XX experience average this announced vendor continued the borrowers. brings values The we representing weighted of senior to for secured under this XX% a total finance earnings that financial industry, He over of growth, He across this appointment XX Additionally, totaled Earlier invested XXX we during new from currently over portfolio year, is business our XX%. division. the CEO rising portfolio just is years just under and in positioning the into equipment and benefiting finance portfolio periods. end, expect was million, level asset for inflationary

quarter, and million of new million. over had of repayments we the loans originated For $XX $XXX

portfolio months XX, loans Finally, Science total over Life investments. income finance $XXX just of metric has At XX% investment of the yet touch under a XX these June over critical quarter. our borrowers of of XX million, represent totaled portfolio XX% business. and Science me runway, on let the contributes Life our for consisted of portfolio, the gross cash XX% for our

For the $X.X funded second the million quarter, new committed $XX million of and Science of Life investments those. team

repayments the undrawn also of segment Life quarter in had of million. We during amortization and already funded had the $XX $XXX At quarter date. the commitments totaling $XX of million been to million. we have those end, Science

fees warrants, asset asset team has science to to under of specialty increasing improved assets, better returns Across pipeline, was origination we focusing our historically. all finance see returns. over cash tighter defensive to a yield are life At across Additionally, we our robust structures all our and see on portfolio themes into classes. sentiment this In continuation classes, able a quarter in rest these first negative companies of XX.X%, which have more investment where loans success we to portfolio currently the growth that market during portfolio to we lien activity new just the additional finance current in the translate end, sectors significantly that expect and average driving conclusion, operate weighted and Science years, terms attractive Life contributed investments few excluding to expect the flow additional on the fuel 'XX. and last of which our continue get opportunities been our of investment risk-adjusted

and current uncertainties the important our it is remain market Given volatility, and in disciplined, opportunistic selective that we investments. highly

Michael. call turn back I'll Now the to

Michael Gross

we market is continued SUN believe acquisition SLRC and bolstered that Thank aluminum its of recession you, Bruce. by well closing, disruption. in positioned In

scale loans the conservative with and Our COVID-XX as enable science ABL us our and senior market a increased investment secured as future further. in managing we loans that market expertise sizable first pandemic, well decline cash have which lien With ended opportunistic challenges. asset-based sectors intend conditions cash our likewise and our pipeline underwriting significant on and turmoil, and collateral focused during weather up coverage if to of verticals should to during asset-based currently underwriting economic non-cyclic periods flow, approach be loans life

interest basis of This XXXX, couple basis to the finance projections the Additionally, we specialty specialty more or on attractive revised strategic merger XXX combination would to and believe XXX optimize makes buyer portfolio June of fine and better new NII a of Through are of time companies, potentially cost resulting share scale businesses. of investment share last available investments the incremental portfolio merger on Separately, synergies, and of move respectively, our a are points, acceleration net $XX income, within program were an a per at acquirer $X.XX the our terms on announcement rising and our an year at December. share our generate forecast the we XX, expecting yields, rates basis. rates $X.XX of distribution million or ago, quarters. cover our if impact points annualized per repurchase fully is the another

for merger. stock. demonstrates with Our team's would alongside please approximately the significant cable team recap questions? of of the Company's investment percentage thank position our reach investment a expected for one your today. guiding SLRC Operator, defensive The interest you shareholders and their to incentive in in open the principles. expected SLRC We favorable invested and the the owns funding has confidence our you continues alignment entity shareholders Company's The line portfolio, time compensation to benefits the of of advisers combined of the the to X% SLR be annual

Operator

first from Raymond our we with And Robert will Instructions] Dodd James. question [Operator take

is line open. Your

Robert Dodd

cetera. congrats and guys getting the closed, Hi, et merger on

quick two So if questions, can. I

the to any year-end, give shift. you the First, more into. Potentially some those on by give rough you -- to portfolio lower-yielding of there? and targeting to us forward mean can measure you Can a JV be asset us be a the permanent it mentioned addition a you ship going and is assets I of color the would or temporarily fund SUNS' assets allocation scale formation to intended there? house permanently? What

Bruce Spohler

Sure.

you incarnation. have in its this SUNS like we prior as So recall, vehicles in as the at may had past SLR

is year-end. So to something expect open before we it

We will as it efficiently some over financed flow acquisition do know, ramp say we I low, are cash lower time, which but you portfolio, the but vehicles. of very SUNS of have yielding assets, wouldn't lower, the with in these JV

seeking And part expect model, so get the we that to something say the of into with cash second return as because, that specialty lagging the will type of long-term to portfolio would be return that it be is we're up. be and that of barbelling I to be given portfolios which assets know, of higher. to you this business combined today we flow a half do on XX%-plus of SLR return set lower SUNS a by something starting some blended we these basis year. this higher we'll the do finance, on expect But

Robert Dodd

of they have give refining, start really on into a where think the could been any Can you income? back meaningful the in Got contributors you've amount give borrowing limited thoughts about? a framework mean, it. presume people Life growth after there do us I obviously, were you flowing think occasionally, to success Obviously, significant any Sciences, historically instead in end. On deployed choppy on us that. are QX, I quarter late When quite fees success fees. market

Bruce Spohler

great I portfolio now close think point. Yes. million. $XXX to mean up a is I to that's The

point, slowed still repayment they're markets, of were those which headwind a very down is, end. bit companies. a the definitely As can quarter bit capital that more. undrawn attractive these we be has mentioned, are commitments little in drawn addition public little equity post to those borrowing repayment, drawn the in that for generates volatility your But very to there what Today, fees often given which be to

in keep and a a growing longer. they news is be this a we'll that bit cash They're loan regardless tend of This we're The not your just So over sword. flow not back-end typical call going and it's it's warrants portfolio, is. to structured like where the value exit repayment assets fees out to time. fees the are are protection. there. when double-edged These good is The good decline is on still little way

duration. embedded in we'll come nice But of are news I a is So a given volatility, the a little still into but a bit continue and the will would little portfolio. get we growing to NII yield get out good more portfolio, fees slower, Those episodically. say we'll the it's

Robert Dodd

can, Got you. one I if just it. And Thank quick.

pipelines You robust are talked and about couple on building a and of things.

can equipment be on-boarded? can the supply interest On building -- you enough there, side, larger pipeline well the actually enough actually equipment, supply leasing functioning with is build particularly that the of the the is functioning chain the that chain that,

Bruce Spohler

but you team work going that call, starting months equipment, say the early is if purchases it starting through That's definitely this to. leaders XX They of still to. this question. would good days, take but our great on to fund say actually the a they so had I to it's it's a can would they system think

Operator

We Wedel from take next Melissa JPMorgan. with our will question

Your line is open.

Melissa Wedel

Good morning. my Thanks question taking for today.

quarters. the rates? it drivers? $X.XX in walk to now granularly? key interest help the things press the about release you Is from about call just dividend anticipated. the we there's of And synergies, like now us comment a what that? more than gap where a Can it I'm bit Is you are XQ -- little leveraging reaching next bridge couple within the portfolio, I made achieving us if are in share a that on that at through coverage You wondering another the sooner think comment can

Bruce Spohler

of Sure. The items. a answer is collection it's

date. quarter. through reduction clearly, that think The opportunities rates immediate increased but the SUNS on with Solar bit been clearly quarter, in we activity in a an from and The yields, a of we've in there's merger. additional management We only more assets is the lot not expect that obviously one on. right the have the I putting came the came did the portfolio active existing but here new little synergies late

we that So ended leverage. not at seeing you're the X.XXx though quarter even

see of didn't You power those the full earnings additions.

of part the that's So bridge.

which is low part other sitting X.XX, of at our we're the leverage The is obviously the bridge range. end of

that we ourselves, very been So just see we the know structure. leverage, more including has flow pipeline, of cash touched accretive. that increase that bit on a portfolio which our additional The on little financing you the material, is see efficient based expansion. vehicle People, for but lower-yielding some in bit have not little a -- assets, the then a lever past used we'll in give we

Additionally, as Michael a buyback there mentioned, to will cents commitment as the add of well. couple our

we of think do thing we exceed going a levers levers. the we not to button, there, multiple terms platform. a And of of like one in going It's hit dividend the we get and that but in that. we're So have to have we're think earnings the power just number aggregate, that I will,

Melissa Wedel

I Okay. appreciate that.

context? even authorization active the over that the of that be combining Are that $XX On repurchases? quarter-to-quarter, you think be we of XXbX-X which -- I interest that, think place you. thinking small share think the I with below putting to When can a in pace multiple you share to bite of about a fairly you repurchase, place that are in be, Thank more tends into you in can million made of from quite plan. reference size quarters. repurchases guys well have Or thinking that

Richard Peteka

was end you our until appears weeks answer the The earnings be buying is is open, point tends plan out will three market the XXbX the before to is actively release about when of next period four the the be window We be actually in to of we so being we of put that can for the quarter to the that which close, a window of during we during be place to window closed. seven that put frankly, XXbX to can fairly period continue can weeks. these plan aggressive time be. we levels, We intend buying current at the that And period. that set so sizing when

Operator

take our from Ladenburg. Schleien question will next We with Mickey

open. is line Your

Mickey Schleien

we apply that SUNS sheet individual that at that saw, Good a Rich. my December. company investments and balance was the And Perhaps that which I or deal portfolio I as the Yes. is at credits credits in am pay was individual will of does about purchase off? last was discount more those X/X sheet -- Can the discount unwind expect great believe the in everyone. we portfolio was something? morning, for less About we one on-balance fair look question those at the of X/X misunderstanding levels? imply If for purchase Or value.

Richard Peteka

only [indiscernible]. spot million the you're was a on. companies purchase Mickey, $X discount, million approximately allocated that No. There's to portfolio $XX

back million So plus supposed $XX portfolio debt to income over that around lives. that be would into allocated left come the is their

Mickey Schleien

of So investments that booked that you at what, is affected three and and fair life cost the these or average value the years so?

Richard Peteka

probably environment, XX discount refinancing more accreted I in this into want those But for duration. cost bps income people yes, the obviously, a Right. remaining anymore, mean, bit lives over but little loans. is the of

Mickey Schleien

appreciate I that. Okay.

Richard Peteka

be to just of that accretion on We're discount any not that taking clear. incentive

Mickey Schleien

quarter. I understand. only That's for this my question

Operator

from We Lynch Instructions] next with question take KBW. [Operator will our Ryan

line open. Your is

Ryan Lynch

good Hey, morning.

following Just any purchase last accretive any on accretion And for in of price, Was Mickey's question. so? if the QX? that discount what up amount

Richard Peteka

I say, about begins when Great up. picked effective was shares question, talk are $X.X merger it date and X, Ryan. a that. you am this would Yes, with the three late the times. and quarter recalling million. little I Yes, between And the two on April

Ryan Lynch

this Okay. you JV, And year, kind performing then of year. regarding talked this later the about sometime

you that going lower in a You you consider And penciled penciled yielding exercise, sort as year? of all us your from you kind targeted lower-yielding have guys of go portfolio any spread performed give loans -- or lower Can potentially today? JV have size of that loan an you into loan of a would of you guys have that this JV. in sort could sense of sort loans talked about sort later like what that any amount potentially of SUNS

Michael Gross

Yes.

The today book cash to know. lower close was means and above that you book relative was finance X.X% XX get flow at June to XX% yielding as generally specialty us I X.X% think flow that's would the June the higher, XX; finance Again, for be book. to us at book our X%, blended. around generally, specialty cash

are assets and the and meant lower-yielding ABL. over flow cash portfolios those really and that Science from came relative book across it's to yields So whatever finance are, those specialty Life SUNS finance the the to

Ryan Lynch

Okay.

you're this be clear, be into flow to would the just financing book SUNS potentially JV? about talking down cash entire So from dropped

Michael Gross

No.

time. them, to think it. grow we grow going be we're it on depending and over we I it and don't think this over will we'll see, large time, will do level, all the activity I of how

Operator

a no we questions allow It queue. additional have line time. We'll will Instructions] questions additional turn I to back for over at Mr. appears pause [Operator for to program on Gross the this closing further remarks. or to the moment any

Michael Gross

just if to time that thank free everybody. please No give to a at has follow-up and us call. anyone feel and your more point. you this questions, Take reiterate remarks any for I'll support care,

Operator

today's you participation. This for Thank program. does your conclude

wonderful at disconnect day. and have time, may You a any

SLR Investment (SLRC) 3 Aug 222022 Q2 Earnings call transcript