PhenixFIN (PFX) 4 Dec 182018 Q4 Earnings call transcript

Welcome and thank you for joining the Medley Capital Corporation's Fiscal Fourth Quarter 2018 Conference Call. The company would like to remind everyone that today's call is being recorded. Please note that this call is the property of Medley Capital Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone number and PIN provided in the company's earnings press release. At this time, all participants are in a listen-only mode, but will be prompted for a question-and-answer session following the prepared remarks. Capital today Allorto, Capital of CFO, Sam Head call Taube, are Investing the Anderson, Rick CEO, Dean of on from Corporation Medley Brook and Participating Markets. Crowe, Head

results statements to would the statements forward-looking Before we the historical Safe statement. which statements of conference regarding and disclosure does Harbor call please www.medleycapitalcorp.com. could company's to the materially other those undertake and release subject your the forward-looking press information. note these attention not projections customary the the Please company's required constitute most like such company's reason risks and forward-looking forward-looking may filings press begin, expressed by Any release, a with to call differ may than actual to company's and company for uncertainties. site the Today's law. fact of update also the any are statements include copies in forward-looking unless To from that obtain those statements company's recent company at disclosed by SEC Web The as latest visit filings any SEC.

in addition, the Events/Investor the fiscal the XXXX section quarter Presentation Presentations available to Mr. like over In call in I Relations Investor section fourth is of would site. company's the turn Web Investor now company's the to Taube. Brook

Corporation's call. quarterly and Capital Thank Medley operator to you everyone welcome

per MCC. investment merger of activity and ended like XX, transformative results call. $X.XX. an respect share the $X.XX few we provide income review transaction I at XXXX. and value This We at share with months, for on we morning the have financial also past first, would in quarter net the portfolio our hard But announced later September expenses Over this I asset adjusted for announced been per to of on net reported update will related the to merger. work quarterly our activity

dividend to December XX, September of approved our on dividend on the X. record Board $X.XX per of of This on for a XX quarter ended shareholders Directors share payable XX. announced November December As be will

investing, made to million million, balance to now SBIC loans investments went million new in we companies. approximately support $XX Turning existing invested the of our the which into was was portfolio, portfolio $XX.X during $XX.X new quarter,

current as well rate and attractive seeking we continue $XX of X.X% XXXX from position $XX and environment. to the the beyond post durable during declined for Given market million and are in deal September to backed growth million to focused investments sponsored balance into capitalized, do downside environment, time. structures XX. merger we primarily and the sensible on NAV quarter sheet this the remain a have in and expect NII that protect terms. larger are trend over rising We borrowers risk Non-accruals income at represent generate We portfolio both

over the to generating long-term with to the portfolio available continued This Chief to call a resolving quarter. to these otherwise of focus the on success. for financial assets. reposition assets it's where Rick, now turn liquidity Officer We from and the certain our results Financial for like assets I'd the review repositioning legacy includes

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June expenses and Net per investment investment ended share. share $X.XX net per share. net excluding The $X.XX XX. per of was as September the asset $X.XX For of reported $X.XX per XX, net $X.X or million three income of value at $X.XX million or XX, September the company compared $XX.X share to income months merger-related was loss

income. $X.X was income million million and investment total was million $XX.X comprised quarter, of income $XX.X the million dividend fee of of $X.X interest of and For income,

and $X.X of $XX.X general million million and financing $X.X fees, million fees, expenses. management and total expenses $X.X For operating million and in administrator interest base were the administrative and expenses quarter, consisting in in professional

out For reported $XX I would realized loss of the to unrealized value the $X.X of and the in to million point net of appreciation or quarter this related and payment to a like $XX.X million. asset. quarter, approximately the of adjustment excess dividend of that the decline NII NAV company net in million XX% legacy

Turning now ended a $XXX.X share year the or full to company the share. results, September million year loss reported million $X.XX per income of per of $X.XX for net investment or the and XX, $XX.X net

million $X.X year, $X million income of base total consisting was of $XX.X fee fees, million million voluntary million comprised income net net administrative dividend $XX.X of was and in of investment $XX.X $XX.X million the of waiver income. management income, million and For general $XX.X the administrator and operating expenses, financing in of and and interest fees, $XX.X expenses expenses million fee expenses. management were interest in professional Total

the million investments For from $XX.X loss a reported the net year, company of depreciation of unrealized realized $XX.X net and million.

in As a XX, concludes XX like XX, review. I'll to $XXX financial notes over payable X.XXx on XX. ratio company's of and including the SBIC million company's The we to my equaled Brook. debentures. SBA million September that debt excluding note million notice on of debt September call That was $XXX.X the redeem in also back at $XXX.X debt-to-equity I'd approximately total XX. December our to issued outstanding November XXXX now Notes turn

merger on that statement to investors in proxy information the now connection a filed behalf our of on MCC November SEC with includes Corporation important the on announcement filing transaction. was This proposed proposed with Income X. filed last Thanks Rick. of Sierra update the Quickly month

the known expected under internally-managed entity Simultaneous traded XXXX. market. be As is with we we've York closing quarter transaction in expected and is will seventh in Stock publicly to The expect Sierra said, to and the the the on combined Income New largest the second close be to Sierra the SRA. of listed BDC largest Corporation ticker Exchange be as Sierra first the

expect NII NAV and continued the of Importantly, will combined will to time. subsidiary business asset management over the operate to growth a entity we Sierra the continue be of will and subsidiary this wholly-owned existing Medley's and add

will and result managed diversified in of with and more asset premium business will stronger its in of said anticipated forma a the dividend the expect all Sierra rate transaction believe yield for this provide earnings the significantly We're in in expected company. result we've pro balance The is in we and scale, we shareholders publicly, As to distribution for trading combination line shareholders. diversification valuation BDC time. over result for MCC meaningfully sheet management overall looking to the well. Further, also This shareholders. a peers liquidity transaction as higher portfolio monthly the MCC accretive internally transaction greater be accretion, growth for will at combined

November Thanks complete mergers, to for questions. do everybody was proposed filed the For the continued SEC of operator, we Sierra encourage X. that proxy more And a statement description by the the you we review on support. for can the now line with open

you, scale. everybody able today. again, the much. once more very And current balance Thanks for We bring detail improved the forward in entire And and everyone joining proxy thank and discuss earnings a including behalf deal benefits liquidity remain filed. merger Well, it proposed Excuse thank an final the I me. MCC team will merits of to and sheet wish excited our here, to you holiday very on is happy Okay. being We season. about shareholders, accretion, look to operator. all the improved

and all day. in conference. disconnect. a have gentlemen, today's you does you This the for thank conclude participating may and Everyone Ladies program wonderful