Monroe Capital (MRCC) 7 Aug 192019 Q2 Earnings call transcript

Company Profile

Participants

Ted Koenig	Chief Executive Officer
Aaron Peck	Chief Financial Officer & Chief Investment Officer
Tim Hayes	B. Riley FBR
Christopher Nolan	Ladenburg Thalmann
Brian Hogan	William Blair
Robert Dodd	Raymond James

Call transcript

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Operator

Welcome to the Monroe Capital Corporation’s Second Quarter 2019 Earnings Conference Call.

Before we begin, I would like to take a moment to remind our listeners that remarks during this call today may contain certain forward-looking statements, including statements regarding our goals, strategy, beliefs, future potential, operating results and cash flows.

Although, we believe these statements are reasonable based on management's estimates, assumptions and projections as of today, August 7, 2019. These statements are not guarantees of future performance. Further time sensitive information may no longer be accurate as of the time of any replay or listening.

company's materially including, result the but from in differ and risks, factors may SEC. time-to-time factors, the other not the results as of a uncertainty described Actual with filings limited to, Monroe Capital or forward-looking statements. to revise these no takes obligation update

Officer now Executive Monroe would Koenig, turn like call to over I Capital Ted Corporation. to the Chief of

Ted Koenig

who our call on morning Good joined has and thank you us to everyone today.

Peck, second As evening, our XXXX joined always, Aaron CFO Last and our by Investment release with we Chief press issued XX-Q the quarter and earnings Officer. our I'm filed SEC.

our quarter, adjusted represents with share, This dividend income. investment For we the adjusted $X.XX our $X.XX of of investment the per XXst second net line quarterly dividend with generated covered net consecutive share. income quarter per in have we

coverage Our credit and capabilities testament a unique overall management to our our platform, Monroe process. is continued dividend Capital origination underwriting portfolio and the

had million the $XXX.X our classifications. of a different investment value quarter industry end, quarter companies prior X% At or in across and included XX portfolio end, XX fair investments $XX.X increase a million, from

the throughout PE and the care; and of U.S. following proprietary middle in course, in increase during of deal located our offices health size The business of million quarter. was the investment partially is had repayments by multiple deal coverage investment community. sales, the prepayment we services; the specialty $XX.X new In quarter, result fundings technology; growth new and momentum an deal to direct team asset fundings, market finance; of broad the primarily due million This portfolio offset areas: the industry of of increase and in software; the our vertical $XX.X origination activity.

in which the XX.X% in our excluding As portfolio refer portfolio. investments not X.X% we XX Fund SLF largest to venture, joint in were largest of our the of of our the the the as investments MRCC our represented positions Senior Loan SLF, June including XX, position,

Our first of senior XX.X% secured loans, is portfolio specifically portfolio in consists loans, is secured approximately secured. and loans. XX% secured our lien lien and heavily concentrated of first

pleased are of the We at our the cycle. the with diversity secured this senior nature point credit investment and in portfolio construction,

of growth $XXX.X SLF quarter, the million a our prior in value, the to at at of second from XX% $XXX.X experienced quarter. portfolio the end the fair had of As fair value end million increase

Weighted in when quarter. to average prior SLF compared portfolio declined to the end of yield slightly X.X% the the

X.XX%. approximately on million As of LIBOR or facility of plus quarter end, X.X% outstanding debt the had leverage rate a its SLF of $XXX.X at

our flexibility helped coverage relief as longer-term revolving XXXX ratio the with $XXX growth which regulatory Capital purposefully We fuel create additional approximately facility, continue next the Act. the and upsize with notes take liabilities Small amount amendment significant of advantage has have us provided worked to of requirements, credit this of million allows both from we Business the credit the Availability capacity, the increase to coupled our The us of fixed-rate to going cycle. borrowing and into recent reduced asset implement in

to growth able of as any be may as proactively well opportunities to organic MRCC positioned inorganic take to purposely presented have We be advantage us. that growth

detail. is turn in I who results over Aaron, call discuss going the going am to financial the now to more to

Aaron Peck

you, Thank Ted.

During the quarter, total loan we million funded investments. of $XX.X a in

offset $XXX.X million, At outstanding was borrowings which quarter. the including equity $XX.X million portfolio repayments million of in funded aggregated we to XX, SLF. Future we SBIC substantial our be growth the held cash credit portfolio facility, our our on facility by and funded partial $X.X revolving our of assets, under million of sales payable on $XXX.X the $XXX had Additionally, the remaining This growth June predominantly total and $XXX by debentures in XXXX credit million revolving SBA uninvested and availability million. will subsidiary. during notes

June net is which of million value down of from slightly March net as asset the in XX, $XXX.X million, As asset $XXX.X was XX. value our

of Our primarily $XX.XX a mark-to-market NAV This per as to share decrease XX. decreased X% from unrealized June as $XX.XX March result at of per was valuation share per share adjustments. XX

results our million share NII investment to $X.XX dividend prior At of level, for share. quarter ended consistent Turning share, Adjusted per per the measure non-GAAP XX. quarter's was results. quarterly $X.XX June our covered this a adjusted income, the $X.X net or per with

principally $XX.X the income The for quarter Looking quarter. compared to the statement investment of million a income Fee amount was in quarter small primarily of by result of the as operations. during income our interest in for was was increase activity portfolio growth. $XX.X the to million average our primarily the historical levels, investment a prior Total prepayment quarter only increase below quarter. due to in an income total during driven

million and the the million financing to and incentive in million in fees; over management side. million Moving of administrative fee $X.X $X.X other included interest $X.X voluntary of quarter in fees, expense expenses. million; $X.X million waivers other debt expenses Total base net for of general, of $X.X expenses; $X.X and

growth by interest by the in and the portfolio. borrowings increase of financing debt Total million of an during expenses other in our expenses result as growth increased $X.X quarter, driven to support a primarily the

$XX.X revolving June of Regarding credit approximately capacity XX, million our we had facility. of liquidity, under as

in had As fully end our we drawn of quarter, million $XXX all of debentures. SBA the of the

available in value As borrowings SLF million under of The different $XXX.X under of average facility. SLF borrowers, rate X.X%. non-recourse this $XXX.X weighted XX, June our interest the and with million of credit a had $XX.X approximately fair aggregating of at credit capacity had facility XX million investments

yield funding, approximately to few level and SLF expect the a JV of SLF to grow is MRCC to our the quarters. dividend in over We partner. generating would equity At XX% continue of the next this

to for we I before line will now the the Ted for closing back some call open turn questions. remarks

Ted Koenig

performance this in believe on We MRCC our of our that peers in dividends. very and shareholders. Since with to we assuming for have level puts favorably since small have IPO changes based this dividends and public return of NAV XX.X% generated compares delivered performance shareholders a of going BDCs Aaron. cash-on-cash group paid Thanks, our reinvestments XXXX, no in our IPO, a for

Based both in anticipated momentum our on our pipeline of the growth the and of to expect year continue committed with the investment portfolio and for new deals, core our both we remainder SLF. within

current reasons: We Monroe income continue consistent straight quarters. net provides pays to is very rate that a shareholders adjusted our investment coverage one, stock Capital to Corporation approximately XX last for dividend believe and XX%. two, our the number by investors Number the a opportunity of a other investment our dividend attractive supported fully following for

asset have external periods value. management fees in adviser, place where in shareholder-friendly that very any limits incentive Number a was agreement favorable our decline management there three, material we payable in net

four, management in affiliated $X.X best-in-class today. we're And the assets external with with XXX located manager throughout billion offices U.S. with under number a and approximately employees over

BDCs in of MRCC and has distinct one proprietary deal value. shareholder should the few the in over differentiated is that an to returns which flow, term increase access result long

Thank the And the I'm with your time today. you questions. ask all for that, operator for open going call to to

Operator

Hayes from question FBR. first from comes Riley Our B. Tim Instructions] [Operator

line open. Your is

Tim Hayes

industries focusing can the quarter. you're -- new cycle, credit first we give guys. the with this a maybe morning, just if I -- first Hey, increasing anything multiples? deal or differently, the you're investments of little concentration us it's looking still are differently leverage whether My at of on, doing lien, And deals going kind predominantly there, anything here, innings doing you my questions. into as move one Thanks but you good taking wondering of characteristics the larger for of the some know later or

Aaron Peck

Yeah, sponsor-backed thanks. did transactions Continue deals. The relatively the are today. in we deals with quarter leveraged be first conservatively of always what done. we're Predominantly the are very deals consistent types lien we've seeing to

EBITDA. firm, typically are a on between As average and that XX% multiple doing deals average X% X.XX% we around loan-to-value, of

in it's and the we're seeing. pretty -- not with spreads, decline seeing we've so consistent been continued any that spreads So

we're So, really the difference there's of the in not deals doing. new any trends

we've of differently and for We're time to the underweighting careful we the more fewer continues. might much now, cycle be more that as cyclicals, things for doing borrowers doing continues period As about some cyclical extend, definitely been a when in a market that's take we've at seeing in the been -- industries. on doing we're cyclical we're industry, that focusing conservative what what really and But deals And today leverage. cyclical very we on. will

Tim Hayes

And that. this of with Okay. goes hand-in-hand then, kind

we're at look we we clock targeting back higher give take, if through would X.X, one times a This quarter. one this quarter. And were maybe leverage, is or wondering, it or this than times leverage. and rewind we regulatory you at X.X Just bit expected have shot a the if year,

less able originations year risky would over leverage preceding what wondering, range is year have to now. a bit certain take been you've you maybe kind -- up been Just than And say ways target past leverage. as the of the if in if you your

Aaron Peck

No. Yeah.

for in since while I think if the above we that you look back, we've said a the change to X:X. intended go rules Tim,

Monroe Maybe very but a was commensurate too BDC active was pass to the you, surprising with So it's to me pipeline. a generate not prior be that big to opportunities were yield on forced to had velocity And which with the always it low we very, limitations lot surprising were the do change, the a has is we shouldn't lower able leverage of to ROE. -- surprise. because because to

what while which we that we've done, investors, to us of you deals I some what as efficient market, we've regulatory it's believe is view involve as the which, a I So, with in is slightly lower to deals risky, leverage less that do, also us, I'd available say spread. and an said on if some take additional are consistent for the allow it'll to think slightly

intend But to consistent which so what that we've said, is up with it -- is that is bring over X:X. we

to new say times leverage a how margin regulatory regulatory over quarter and I are, than on update And really go. leverage done maybe had past. kind out shakeout, deals next origination It are what as in regulatory that of we'll couple next the I the quarters, where continue where know of on of the say. expect believe, grow to our what but should we I'd wind we'll target. the the depends maybe in to X.X pipeline risky shakes less certainly think as I'd And next it on seeing portfolio up. the don't leverage taking then in up we're we We X.XX to with

Tim Hayes

Okay, got for it. Thanks comments. the

Aaron Peck

Tim. Thanks,

Operator

from Nolan Thalmann. question Our next from Ladenburg comes Christopher

line open. is Your

Christopher Nolan

Rockdale that fair simply discount change the Hey, was went guys. little up Aaron, in rate? a quarter-over-quarter, the value in

Aaron Peck

It's margin, really It's material particularly change. I think. in the a not

just I they small have So, you shifts play much through and into of a out sort it. look valuation and things waterfall up at go read side, analysis of as how It's the wouldn't sort on down.

so estate, with that the some, something in there well. So of to as certain estate assets do has the I was realization think, some in it

Christopher Nolan

Okay. Is for capitalize But On million guys family is know fully it I you it have this looks like tapped the that on? $XXX you a in that borrowings. type up SBA, going out. Q, the reading thing option there an funds of here, or of can –

Aaron Peck

funds today. that family limitation we're Yeah. of a at There's

couple I debentures. revisit we're that. getting what I the that's But what of and think to work to cash debentures, trying SBA over SBIC – at near-term starts time, any down doing do older today look quarters. be we're what work SBIC can the we for But at pay of next now, in help we our having not is as of to on three additional happens going availability really here, sitting may over as to would some the to to us look license able

to we're there in that we're that deals hopeful going because they work can the eligible. that on Obviously, put that SBIC find we good be help and qualify, performance, deals cash, in look sitting are good in are so environment into directly could really which now, getting driving competitive cash just difficult to find and deals. a now couple it's But a NII is we pipeline, a some could to like right

Christopher Nolan

the income spillover the quarter? finally, Got you. what's for And

Aaron Peck

million, $X.X have $X.XX here. about Hang Today, I the is Yeah. on, a income that spillover approximately share. right

Christopher Nolan

the queue. in get I'll Thank Great. you.

Aaron Peck

Chris. Thanks,

Operator

from next Our William from Blair. Brian comes Hogan question

is Your open. line

Brian Hogan

then on some America, and on color timing your what and of just quick general outlook A quarter the non-accruals like of Education resolution? can you for drove the the Corporation the rest give in write-down just this the there of

Aaron Peck

is yeah, So, there been think at into ECA look now. to what split investments basically has I two have you

that's doing asset which the of confusion England had that's performing New is So here. an a College ECA a school okay was was good called that's – NECB, and asset. ongoing Business, that's

taken credited the NECB. a over debt situation basically, there, we've so and bit the And some through of receivership

So when NECB. when you way, that really more and or sort combining it look you look valuation the look hasn't by at at And the of have at less, to you quarter-to-quarter. ECA marks, changed it

Brian Hogan

general the then resolution outlook timing-wise? And Okay. non-accruals in for of

Aaron Peck

I the going it'll for see or to and has Rockdale that – what to the a the mean, situation – look, there wants on we make going situation – I the arguments, some all you, resolution to Yeah. have the a period he we've is speak, we'll ECA for only It's arbitration then two. get time happening time. is That's decision case to ongoing arbitrator the take to through be can and real quarter some be time to as update, ought extended. do. next The some of give in

obviously early in the We'll if itself, the So expect part I maybe the third would of resolve see quarter. quarter, into that update. fourth to not

non-accruals confusion. source this as just because a a of other The reminder, constant is

a on a where portion took promissory a Curion a two. pay There of are at at and cost associated is are part there we in paper note parts that of of as for piece restructuring. those non-accrual are Incipio, the holding which piece includes only over or couple didn't those that have a with of we of piece those That lien because non-accrual. no situations the names We and of a on really was debt the third

doesn't we are all put on massive cost, know. are brands don't small accrual I piece in in But accrual there's be, business. that make ever it no of time I if was really there to then because a preferred so the those the expect sense any only a them And see And ever mean, really would go to millennial non-accruals. would from. those The status. don't Those value recovery

Brian Hogan

you is there? like like the And then competitive deal deal talk flow? any changes and it? of the the then flow, front, And can competitive the of kind about How also, quantity on quality

Ted Koenig

Yes, this regard. really that We're It's competing we take competitive. is is look at way marketplace for The has always the Nothing that one. in is Ted, that market we're in is a strength the But of Brian. been competitive competitive. things Maybe -- I'll changed vertical is else offices, of have have we differentiated a create the originators in. we've everyone bit do a amount that and we to competing because little model. direct and the the businesses of what and tried us,

last expertise software has deals platform over of $X special of fair and most Monroe through in, $X have deals those billion we billion. the substantially. finance growth year, -- deals. platform, we're And we Early it's or whether our were that technology And proprietary specialty probably Our relationship or We're care. driven today. the grown winning it's a or is share primarily health

getting willing that a process. middle that I In there's we're are going the the in we're business market those we're to to are go our not been and will market or lots you general that And have be control. competitive the rates. going dynamic some PE able And to lowering to of change leverage that, able share, firms tell with factors and capital to business, has always be today, not higher market our but share on

deals opportunities from and standpoint, that on by we everybody platform. where our with best a some else competitive is closing to as or being have So and as not identifying are in chased try can, advantage we that that deal we

inbound was looks. And over, did perspective looks That was Just XX out XX transactions. logged did to out XXXX. transactions of XX X,XXX transactions we XXXX, give on total last we of you about again, That X,XXX about of a transactions. some XX this, that's transactions year. or

that We've concerned return looks the to not and plenty year about of on the staying We've with put easy loan-to-value organization XX% X,XXX is I'm I'm deals sure we're deals today and It's the we're in people, doesn't the hard XXX and money getting over making It platform. our -- lot got a big to done. offices Aaron take focused, or is get the of makes of today. think, What in a an really around this as business. country. right got where return, and combination focused of in I more opportunities what's our big originators. throughout on a take infrastructure. out So What that's leverage organization on doesn't deals that six in said, somewhere quality a It as thresholds. hit focused business

Brian Hogan

The or to kind thinking then it for question you couple All but rate can the give back income, a two, And bounce outlook? fee of -- I run kind of, level it's And me normal know about? then -- call that level of expect it, you right. Do housekeeping. very in last of one lumpy actually follow-up. a nature, you're

Ted Koenig

income, and the fee there early can is to multiples, fee with But to the – last large buying payoffs, refi for very firms direct steady been interest relationship quarters, PE early incentive off here. in hasn't chime The Aaron, the income And being companies pay rates Brian, or payments. several early.

years were lower firms, PE much tending turn to because quicker. there a Several holding ago, with period their they deals was

Now deals year longer generate in are to paid, us. generally, multiples much are And two being turn staying portfolio. with in deal prepayment the harder fees the it's and the first for or that your

So significant not in income. increase I'm a anticipating fee

an had Now quarter, very that where said, abnormal little had of we we it.

from So be that it. can feel count standpoint, you last I our years. the Aaron to it's going of But, couple can't overall than it's episodic. in think I on it. for it was think, give muted some We that, maybe more

Aaron Peck

it no have we idea. had period. level I and can't I that. much income and It guidance. associated with higher completely is It's more activity could prepayment give a really fee you average, this that of really lower true wish was predict we On something

also say life, I been penalties lower the were early the that, a to level recent in or get years, couple three able higher deals. as fees well. with prepayment will And there's fund's we prepayment associated in more of

So with that be associated when do there them. we get lower fees tend to prepayments,

payoffs quarter? income never about it we mean, of we've an it definitely that. really look, -- And before again Yeah, so the next expect But don't had of $XX,XXX. this if then, coming you it Last that can't have quarter I aberration. sort fee But time a But was of I was closer quarter could that I like I number remember again, end we $XXX,XXX, up be. could to a be for but so unfortunately. know. to quarters as well be, you, don't visibility don't end probably to lot tend last

Brian Hogan

I I some know kind assets And given know last question of you're take other me you have and BDCs mean go management have for assets, any there. I right. of level management to leverage, it their it drives above you thought the obviously, ratio. the of reducing obviously, talking more the increased X, from fees maybe, on is, X:X But that and but of you any X.XX base can with All up wouldn't assets? reduced fee

Aaron Peck

Yes.

to really in focused form the delivering on shareholders we're So returns of NII-covering dividend.

warranted our what And to look going sure we'll to decisions in that continue our to so, think make ability waiving future that monitor, And the of, performance we're do to based make we're on covering. to fees is voluntarily have at chosen we it's if to we level, about and cover. sort date to

the visibility that's our and get all at being non-accruals if in look things work if good. coverage coverage try we are get do, in assets, the we're you really the money and today SBIC equal, in it we which to we looks hard working for up where cash if think, out to to locked could reinvest and if of in some could I accrual subsidiary, NII

dividend at if to a it a But lot the If only it, of we're we the it years. the dividend Board We've continue long time, have have and never determination. made cover it and thinking, cut good we'll And least feel my several at cover and we're it job monitor like for pretty cut cut. And a But we're over once never shareholders. we doing delivering dividends increased a yield the can we'll about where it. will we with to-date, future, look and have in watch room, a last we'll of continue today, a We dividend. to it. I BDCs and period to -- over revisit think haven't

remember than You infrastructure just is we We've you'll Ted business a considerably people a of employee that got other at BDCs And if you of ours. find look smaller to I have the in generate that here a lot as went deal lot to includes size, model, flow. people. our through, invested base unique their think really that of

Brian Hogan

Thank the commentary. you. Appreciate

Operator

Robert next James. comes Dodd question from Our Raymond from

Your open. line is

Robert Dodd

comments you three, maybe rate spreads on the but X:X. And lot put But if I income, that four kind about market see Hi a of fee guys. a mean a stretch, if with mean what's Obviously, that, that now? years asset-light you rates follow-up structures more. -- compressed. ago, fee the a kind were in then, assets I Actually, on they in today you widen, answered get for fall it it of the kind but of it? that. out the you within the repay what's obviously, of was the norm kind seeing and particularly, prepayment going have norm market just that you're that of mentioned right

Aaron Peck

a it's different, has years. kind a yes, seeing But penalty more the of be and towards a Yes. the on gets market But prepayment. moved a refi. prepayment you're also, X:X the it several industry going a it And to on first sale it's waived. these is X:X sometimes earning in. of What it is depends a even like negotiating. you're of lot think in Look, the We're of seeing year or company, times to every only X:X.X are structure, deal on right, more private of back it heavily often lot depends common much days equity it non-sponsored, more what see sponsored and I was firms structure whether it's

can look our wouldn't you a ideal. And the is so say across entire I and it apply those numbers because deal, different at portfolio portfolio that very

we're specialty of a most the most not doing sale sometimes common. if has but waiver a make-wholes, all finance company. of like a on is in prepayment at with more the stuff has X:X And there's lockouts and the Some that's structure the common

Robert Dodd

appreciate I that. helpful. Thank Really you.

Aaron Peck

Sure.

Ted Koenig

Yes. I Robert, to there's I to one mean have follow-up question. your -- want I --

You to less didn't focus standpoint, a you there's flow this why, our going on I'm particularly, but tell variability in prepayment of been from side.

As some that. I much said earlier, leverage, we things made like variability on higher negotiate deals success much taking with risk. back-end a you conscious safety decision with we're to prepayment, and more higher-risk fees, more the focus of There's in; can

lower-leveraged were the -- in we allowed relatively a trying features in to I the funding as were same market we in we upside to When deals are us weren't and and level we market play that. doing pack today, different successful

want allies fighting out Today, our White portfolio. sure of make very I'm and the that credit power House, doing shareholders in at with and the coming our everything I this cycle, to our protect our most tariffs, juncture, uncertainty economy, of today, to concerned with we're

we've probably that's think of to you I back hurt here very the of so generated term. that not that or much that maybe the could tell focused I risks So, why on government past. taking the some been And in shutdown, since falloff will over historically a you've we've seen last year other long fees the us come

we on going much that aggressive capital the than forward going focused But said, protecting to more with trying for be here And when industry that's an I'm still to the can. am I near-term fences on swing issue. So cycle here we're certain returns. in

that. from function a successful of my at and not pretty of you consistency are a just doing I platform built the platform. all focus dividend. it's the is I'm will stability Monroe, maintaining on managers, the the We've the that dividend of tell what all seeing And and here

Operator

a We Thalmann. do Nolan from follow-up from have Ladenburg Christopher

Your line is open.

Christopher Nolan

billion fair opportunities organization with because to $X size, move just on that say fund the parent targeting it you're larger now ask I deals? are needle. guys that to And I of focusing AUM. that larger the imagine is Is a you

well? applying that MRCC is So to as

Ted Koenig

doing Christopher. both, We're

we're markets left that But played larger in haven't platform where having a deals just larger player. the the we're the the that's to also larger that participate We because because known. opportunity we've benefit we're some is in of getting historically of a

our to that be other $X with the a we want parts markets And respect tend on basis. sharing we've larger-deal the But firm in, groups played of same is always so more to still deals, our company, $XX our and And our range. EBITDA million that $XX in million been even has substantially. true today, has still to EBITDA that's always firm to million grown $XX million though size average

Christopher Nolan

question as on following a X of Follow-up up year ago, question. or is, Tim Hayes'

a at X That like dividend? cover anymore the that covering XX% ratio. to are over ratio we regulatory time leveraged seem need guys You the reasons. new normal debt-to-equity regulatory a look dividend you doesn't the debt-to-equity with hold for various to I should mean,

Aaron Peck

I with a look, Yes. think I lot has I to think, the nonaccruals. do mean it of

of growth same So level the generate had in nonaccruals -- lower NII unfortunately part a that the probably able the we've at leverage. that we're the we a that fact has to been of not reason

different. not But that's ideal are I us. rates for mean are again and rates also, so down coming

We things have down. done of a to including cost borrowing good lot to of getting try that, our help

a I than I haven't average yes, major basis, given in -- it's terms I narrower and what total coupon yield by spread a change went was. our on It seen mean what asset that think But it in our while is up. of mean, -- it look, you

up, As spread little. was rates a went down

XX-ish cover was we -- thought dividend, that that regulatory I never low. we're the so, higher don't by way, of to need there's wanted always to And specific be than that level that want kind at We the leverage but to guide you leverage. it's level regulatory that We leverage of a definitely at. we percent too

in capital, bond back an a through and being market. in and NAV both equity the raise then We to position also were accretive to build successful on basis

our in But kept at the said are lower pretty guided and get I to so, the expected levels regulatory to dividend where And it mode, work leverage this nonaccruals be. leverage if good recycling then cash coverage. to And and be mix resolve in in towards. assets, given get we paying were we SBIC I really comfortable artificially the some the them down the earning which as portfolio we've we we're being and into earlier, facility we we than that shape with think should regards of can we these reborrowing, can

Christopher Nolan

guys. Thanks Okay.

Operator

turn for at closing further remarks. this I'm questions showing to some time. the Ted I'm back Koenig to going no call over

Ted Koenig

you. Thank

all some the it's appreciate you platform uncertainties call And of I some very, things only the happening place of of a the of time lots that also at to for macro we're research the a are fortunately and we where firm, that Monroe, you economy. I the on where market. the We've and at there's size got been doing in today issues. more we from -- industry busy. and doing spend industry thing time a more but of analysis, can in do will issues we're a tell joining not that realize focused very facing, today. lots Firstly, on There's people nice

very market you happening leave as our today in an So the investors. and want control with to are often that is uncertain beyond one thing we're that, I things

time from very to really And very in happen particular, some industries, those predict. control industries, are beyond that things companies hard of that and it's the time to in our affect

simplify take to pieces in monitoring. our management and a of lot in and we've tried business our the analytics and what So, to portfolio our down do moving it is

the uncontrollable that, more we're affairs be factors. you that happening and that going and world a next things So, continue stability are are we'll with do report. see we'll Hopefully, quarter back more in other to to to

several But outside. on hired the the and distinct we're we're real Monroe our time portfolio side. want that, difference hard and the and on into as additional you time jobs, resources as portfolio a I assets special analytics assure for of digging And the to the we're a in being, well in doing that's platform. on firm spending side lot We've work the

to as again, at on you feel all speaking you always, questions, joining. rest -- free extent the We're you basis. enjoy the reach to we have So be to you quarter. in September summer, always for I to out thank And periodic we'll the Enjoy please want a Aaron. and always back any individual of to

again. you thank So

Operator

gentlemen, for concludes and you program. participating Ladies today's in the This thank conference.

day. a wonderful and disconnect may You have

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