Oct 30, 2026 earnings call — Board declares lower monthly distributions
Board declared monthly distributions of $0.015 per share for January, February and March of 2027.
Revenue $0.0B (est $0.0B) · EPS $0.04 (est $0.05)
Key quotes
"We do see strong opportunities right now in the secondary market for CLO equity, but we see many fewer compelling opportunities in the primary market."
"But you're absolutely right. You can see at the end of the first quarter, we were sitting at a total debt-to-equity ratio of 1.26. We closed out the third quarter at 1.07."
"In the third quarter, we recorded combined net unrealized and realized losses on investments of approximately $3.3 million or $0.03 per share compared to combined net unrealized and realized losses on investments of approximately $1.1 million or $0.01 per share for the prior quarter."
Analyst Q&A 1
Portfolio mix, leverage, losses, dividend
Q (Erik Zwick · Lucid): He asked whether the portfolio shift (lower turnover, more first-lien and “other”, less second-lien and CLO equity) was a conscious choice or market-driven, and whether composition will keep changing. He also asked about leverage targets and future deleveraging, what drove the realized losses, whether loan price moves drove unrealized gains, and the reason for the lower January dividend.
A: Management said the portfolio changes were a conscious decision to take a more conservative view of current prices for risk, driven by a desire to delever and manage risk while taking opportunistic positions, especially in secondary CLO equity. They expect continued portfolio rotation to take advantage of opportunities while moderately delevering. They said intra-quarter debt paydowns have reduced leverage below the published 1.07, realized losses were from two CLO equity positions that reached their terminus and were carried at no value, unrealized gains were driven primarily by higher leveraged loan prices across the book, and the Board set a lower January dividend based on near-term earnings power, the desire to delever, and to keep funds available for secondary market opportunities.
"So the combination of a desire to delever the portfolio somewhat and an overall reflection of our approach to risk management, those are the things that has led -- have led to the current composition of the portfolio." — Jonathan Cohen (CEO)