Nuveen Churchill Direct Lending (NCDL) 7 Nov 242024 Q3 Earnings call transcript

Welcome to Nuveen Churchill Direct Lending Corp.'s Third Quarter 2021 Earnings Call. [Operator Instructions] I'd like to turn the call over to Robert Paun, Head of Investor Relations. Please proceed.

Good morning, and welcome to Nuveen Church Hill Direct Lending Corp.'s Third Quarter 2024 Earnings Call. Today, I'm joined by NCDL's Chairman, President and CEO, Ken Kencel and Chief Financial Officer, Shai Vichness.

we include available forward-looking remarks, questions. Today's take prepared may call statements. our will to be your Following Such statements placed involve other factors known and unknown undue should risks, reliance not be thereon. and uncertainties and risks, guarantees historical and are opinions These forward-looking current and estimates are statements and uncertainties our and our projections and industry, but subject current not are the our portfolio our based assumptions. These expectations, beyond company, some facts, difficult of about prospective factors, statements and predict. of on rather our to to future not performance are investments other beliefs are and which control Actual forward-looking materially statements. from differ results expressed may or the forecasted in those statements and them. company's not We recent important the on filings made ask undue be not placed with forward-looking for today future guarantee reliance you that do to should performance the most SEC factors. Any refer risk update no assumes obligation company The forward-looking to time. any statements at any

supplemental Investor our are release, presentation available XX-Q earnings the at and website on Our of earnings ncdl.com. section Relations

Now turn I the to Ken. would call over like to

Robert, of growth reflecting the per generated reported special covering we share, NCDL of quarter, environment income returns you, then After call and economic the more distribution. call investment and for our outlook of market coming of our our our months. $X.XX This net continued the this by power discussion detailed with current per share markets. the delivered joining to Shai start the morning, We are to we that, for private for results. share you, and thoughts quarter the of our everyone, pleased the of the our regular results hand distribution quarterly a like strength I'd per very some and on the I'll provide credit we and third discussing third over for fully $X.XX quarter, financial today. I'll the us and strong on thank platform, Thank earnings performance. Overall, $X.XX

strength third market during perform new primarily no lien of middle by to our $XXX during activity and of approximately well, focused our senior with primarily nonaccruals continued investments. the senior the we had quarter driven from traditional was loan loans on Investment pipeline. secured first new portfolio investment originations, million Our quarter. the

discussed focused that ramped, terms. traditional which middle rotating higher fully priced, out last is our spread, pipeline, As spreads market into more NCBL's portfolio quarter, attractive from we we positions now benefits and generally on essentially lower wider upper middle are and market of

$XX.XX an our XX Our asset strong September results to XX. in that share we reported of value as at led from quarter per the net increase in $XX.XX share per the to June

about the leader we market. XXXX, towards positioning As in we into a of remain look the the core optimistic NCBL's and end middle year as

long-standing commitments platform, the investment opportunities. performance enable to to track Churchill and a continue see sponsor our us record, broader network Given across extensive LTE of range deep relationships wide which of attractive

As market, credit portfolio assess elevated overall interest of remains the strong company despite we persistence performance the rates. quality and

a on point we cut in inflationary basis As September. long rate Fed saw anticipated eased pressures borrowers moderately, XX

enables growth strong that and more competitive market focused increased of volatility middle less with competition, companies value markets. We elements focus the we such by believe care EBITDA dynamics pressure, we generally second the the million, the structured, believe levered, the pricing $XX that In in which as are insulated increased at on core remain terms quarter. additional compression better and pace upper that market theme other drove leading of believe of traditional generate million in slower spread industries the face see investors. support between for we largely to equity private expertise the is be health BSL the operating the all in $XX proposition albeit When in on in credit tend a we've increase and and a capital of middle our lower middle cyclical business observed to services. sponsors, than backed there private and The from and an to us market, QX, weaker

we will to that result, the the to believe near the we today. With risk-adjusted the believe equity a and term. are private deep, U.S. Churchill scaled, As with credit healthy like selective respect most relationships attractive highly available a environment, in macroeconomic the continue returns private in in middle resilient market core economy long-standing market the managers among

We EBITDA continue our and portfolio with moderating. see growth from to steady companies, pressures revenue inflationary

will increased beginning a investment have reduction we of already which activity, pipeline. see We rate begun to our spur the also M&A believe cycle at in

a generation and positive flow to borrowers. respect underlying we deal quite into feel heading health with both result, As our of XXXX

Turning to and platform activity originations deployment. this across continued NCDL. at Churchill strong pace benefited quarter, a Deal the which

investment originated DL team investment $XXX quarter. Our during NC in commitments approximately of million new the

activity. Our senior of XX% new focused represented commitments were origination lending, on NCDL's which

representing steady portfolio, XX% of value remained percentage portfolio. of a overall approximately the the debt lien First as NCDL's of fair

covenants We prioritize deploy investments class generally transactions. opportunities in and leverage asset provides long-term risk floating strong we portfolio senior our a middle market characteristics, market pursue feel middle as will lower diversification loan including capital mitigation this continue growth traditional as and rates, to to and core public core financial company. We

Churchill NCDL that the the the of platform and differentiating power benefits of factors is of provides. key incumbency One

continue our investment better we continuing to underwriting attractive and that performance source well risk. know companies portfolio reduces from that existing believe of companies, and in credit long-term invest leads opportunities We these to to we

credit the several last the of terms we've the portfolio flow across performance In over experienced healthy, reflecting of years. our overall and deal company quality, remains quality strong

versus at average of Our And our of origination. for rating at fair time original the remains X.X% X.X level of very internal rating all investments an watch value. remains at of our list risk manageable weighted of X.X a

senior conservative asset are just a a XX%. result and the we with company X.Xx of within elevated metrics lien loans X.Xx, we the rate These us structuring credit and attachment of approach when to DL low weighted remainder expect XXXX And come improve into we of these Additionally, transactions. This and with target of has metrics conservative down rates NC as first portfolio average of well underwriting XXXX. direct environment. total the fundamentals points coverage the below portfolio. are in pleased that relatively a leverage interest new over on further yield served would

diversification value X versus on the quarter nonaccrual compares not During of level of very the X.X% add the low private remain roughly with risk did status, and nonaccruals has relationships. depth X.X% we end engine key only in a companies portfolio sourcing cost. With we believe as tool new a proprietary of our over flow, quarter, our third averages. investment equity as to level breadth from investment a portfolio. remained names We focused nonaccruals high mitigation selectivity, and industry is highly fair any This able deal favorably by diversified significant of and continued BDC of our the of facilitated metric on been achieved of and at this XXX generate

XX, and of seek is the of and to top portfolio, represented September maintain credit we as quality total originate only This critical XX.X% our XX. from companies had in XX.X% diversification as of down XXX June we As attractive our portfolio, opportunities. exceptional additional investments XX

and remainder our standing core strong the for are most well particularly year believe X positioned the the Looking ahead, as middle of focused we for performance active largest given on continued the of and we BDCs market. XXXX, into

spoken with we've portfolio by in outlook about management reiterating. our As the to driven our key factors construction is worth past, approach and X

metrics. portfolio key across First, level CDL a number high has of of a strong diversification focus on a

or constructed have you're a vehicles across defensive commitment position level embedded size a Churchill's We is of whether portfolio across balanced this it multiple consistent in that We've the DNA. and all diversification different across industry. measures, achieved at platform, our sponsor, looking represents investment

process we credit else. investment have above quality that Second, all a rigorous puts

recession-resistant and barriers market-leading operate industries opportunities we we As leading positions equity on top-tier that by high-quality, to focus private look for underwrite, businesses with backed high entry market sponsors. to in

are with is willing and consideration That and XXX too approximately we're assess differentiated equity our particularly strong sourcing companies This to carefully is credit new a facing conservative we is to nearly factor overall unique as worked market strong that transactions the and covenant our an origination borrowers. decades investment This discipline discipline. We're private environment deals and terms certain firms. with from are spreads burden new well both maintain as Our that private our why more are important us packages. Over approach strong flow, deal lower in relationships. influences third X sourcing to aggressive. away model. leverage equity able tighter tighter has process especially and where to model structuring crucial, rigorous portfolio Churchill also highly risky. And middle existing enables interest We the walk attuned enjoy is and LP

equity fact, on In boards. to middle-market over XXX over Churchill funds leading sits has today, U.S. and XXX advisory commitments private

in established sourcing market and We have information continue investor long-term with relationships, the and and been a core to middle with strong be provides advantage. a NCDL which deep trusted

NC call company's we results to in our over activity team XXXX. And hard believe more financial remain transaction positioned optimistic over And increased I'll recent Shai their detail. our positioned We are turn evidence is work success we believe uniquely and it long-term our are for handing like of to the dedication. benefit that I'd the DL to from outlook. now add Before well proud to and expect about discuss that extremely to Shai, NCDL of we results and is in

Ken, you, you and Thank third review thank quarter our results. us for joining to all

generated compared of $X.XX share XXXX. second we QX, in per $X.XX of net income investment to For quarter share per the

total and annualized during this quarter-over-quarter Our continued which special $X.XX result of per total $X.X October, the based modest in of dividend $X.XX and paid rates. In saw interest decline base share. X% quarter aggregate, spreads income per strong we or in our per In a dividend deployment the investment to as quarter net $X.XX equates higher value. increased utilization, a leverage yield share an increased of a of to asset the tightening offset share, on dividend that driven as dividend income $X.XX of by helped we by regular million well XX.X% as of consisting end approximately a

second the February a shareholders our our of we the per the of XX IPO share paid of paid at special this As XXXX. in to of time reminder, earlier will and October X XX, year. November was we that $X.XX of X declared be quarter record The of dividends this XXXX dividends through special year special dividend as remaining that second

dividend intend to well with previously, as discussed program to of the our grow dividend, over excess deliver As as supplemental us above returns the out regular current that the environment and our we a paying benefits us NAV. of higher sees operate in portion shareholders earnings a to allowing

second the quarter. Our total GAAP share per was net income for to quarter in $X.XX per the $X.XX compared share

for net Our to $X.XX was of quarter $X.XX per unrealized net companies. gains. a We positions market pipeline realized and on out as primarily we gains, deals. share on sales portfolio lower due gains generated of realized with middle our share number liquid per rotate impacted improved by select approximately The third realized upper selling of sales middle spreads more unrealized of income generated continue metrics repayments positively positions credit $X.XX per and traditional market share of to of from gains out our were and into

leverage ratio the Xx quarter our was debt-to-equity is X.XXx. to previously target the within of at provided the we consistent and Our guidance X.XXx, of end which with range

net increase paid $XX.XX the was quarter, This above earnings generated the June as increased we excess as and share attributable special per unrealized the realized to at dividends gains value our during well quarter regular asset the the we and during from that and over During XX. the quarter. net to $XX.XX

done of funding was attributable our with new strong $XXX the totaling for largely very gross to transactions prior XX origination, the of had value investment fair million during of in of third our new assets fair in in one us as the quarter As the a end accounted the quarter. value $XXX value XX, of $XXX million. Similar of and billion which quarter, to compared of originations, for terms million portfolio of $X.XX QX. approximately September to a billion $X.XX the the increase during originations of gross quarter was fair investments This a

financing approximately companies existing opportunities million. to end-on We deals XX to totaling for the from benefit form of transactions us generate in allowed $XX portfolio incremental which continue

$X the acquisitions. Repayments delayed Lastly, as we to active portfolio third our our to quarter million companies million assumption draw totaling in for second on drawdowns $XX million. $XX be and full in X.X% line term growing the and saw X.X% compared quarter quarter. our roughly deals, X continued per loans We in of the remained repayments with on of prepayments long-range in another partial had totaled X%

million during market $XX upper of sold transactions worth quarter. the middle also We

from of we X incumbency prior fully reinvesting to deals As the we've portfolio, in the benefit spoken that in the our X continue during calls, quarter. about of in power repaid

Additionally, across the we the the deployed during that X/X net dollars inter relationship million broader an platform. On we the quarter portfolio approximately nearly a $XX existing where quarter. basis, we companies invested of were during had Churchill

call, consistent NCDL's our in portfolio. in with the Ken deployment of we QX As earlier saw optimizing was the discussed strategy that

We our expect capital modestly more complete the the utilization. deploy market cash middle transactions assets, traditional to increase continue of market liquid repayments middle and into we upper received to primarily from redeploy portfolio from rotation away leverage as

top second the quarter the of XX prior to in representing from Our remains quarter. XX.X% total quarter names fair of value only the diversified, the of end XX.X% at positions highly XXX the end as compared with of the and down of portfolio, XXX portfolio consisted names

Our and the largest of total average position is X.X% our is exposure only X.X%. portfolio, size

to level continue diversification by position tool. high We mitigation as key this risk of view a size

market quarter, In we which allowed into the the upper market benefit us our at we further same floating XXX senior terms middle-market traditional loans see continued originations during the will tightening with middle investments spreads on in maintain as segment market market. on BSL that higher the selection, loans documentation weighted going across during were again terms spreads traditional markets traditional of shareholders QX. and heavily middle focus SOFR, model the spreads meaningfully basis new middle segment, X% the markets. Despite upper to saw on of asset and the the versus This towards in a over made tighter believe, points new NCD quarter only rate focus the level our traditional middle of was we

of at declined primarily average XX.X% transactions repricing driven decline the the XX.X% in yield by the with at on of to quarter. QX weighted income-producing the investments Our a debt at of end during end the from cost quarter and third together SOFR and handful

the lien the representing We what with end, first with in continue quarter. the XX.X% at of of the to capital quarter of focused the loans on portfolio remain line second structure top at end

end portfolio the also opportunistically We as continue X.X% [ of junior overall which and quarter. to debt of third and comprised in equity, invest ] the the X.X% of

at target in the the and allocations of As a target reminder, we equity remain co-investments of senior loans time low committed our to XX% staying XX% equity a IPO communicated balance that to single-digit percentage with we the the range. debt and in with junior

to Turning quality. credit

reported quarter, portfolio good remained average rating steady cost. nonaccrual from X.X% at QX. X that the quarter, names. We to as modest no we last internal quarter-over-quarter investment nonaccruals the names nonaccrual result X.X% improvement X shape at the Our risk of in X.XX% our as The is of only increased X.XX% at fair fair just had value end compared weighted modestly and representing of assets of a new portfolio in only very X X.X in this of with value relatively valuations the the status, the nonaccrual of on as

Our watch added an basis see a with list did comprised on X X downgrades names and increase X of upgrade. net

As level of percentage value, at X.X%. a our watchless only overall fair low a of portfolio relatively remains NCDL's

of of as to pleased September which were as time utilization, utilization, incremental line leverage at our to June this in X.XXx IPO. XX. of We was expectations our XX of debt-to-equity increased our directly with X.XXx terms leverage ratio In compared the with

paying expect by costs modestly move October. forward. we our within deploy our early leverage XXX was optimizing basis year to plus an be and able facility we Xx points with borrowings off on our target repriced equity. Subsequent of quarter it to our and our in move towards to our XXX debt through reduce terminating we expensive to efficiently to X.XXx us which up allow to our going revolver to the structure the SMBC, priced end, SOFR will we with continue SOFR ratio borrowing credit most step and and asset-based further range eliminated at of into corporate facility, replacing to capital As balance additional down plus This XXXX, took which capital

As no and we the eye debt that as we close trends the structure a last seen I long-term the are keep opportunities on and encouraged third unsecured mentioned as to levels commitments pricing evaluate the quarter, X and market capital near-term program. issuance and continue a maturities, repurchase we million of the over have by past and over of available investment our quarters. With attractive remain liquidity debt we quarter unfunded share take to positioned of $XXX incredibly of to fund well advantage end

term As modestly discussed, within on leverage the increasing and near our received reinvesting our while the asset mix is for cash repayments, portfolio and focus optimizing actively the utilization.

continues program of October XX, approximately Through represents to use million and million operate leaving repurchase effectively liquidity. share program, we've remaining. approximately Our $XX a modest $XX the under utilized our available

saw on released our XX, XX.X available trading that of total the ] shares for increase third that of shares issued lockup, million sevenfold XX% number we remaining the from occurred nonaffiliated million the lockup in Finally, which a pre-IPO release approximately are our to IPO. October our [ bringing shares $XX from

the we pre-IPO shareholders a shareholders XXX IPO, Affiliated days. mentioned up year nonaffiliated X staggered thoughtful shareholders put payable release quarters coupled locked a were for special of As and XXX dividends our pre-IPO time in locked earlier. place XX, I schedule full lockup reminder, with a for were that at over the and up our for

shares. I'll million back for January and Ken turn shareholders our affiliated remarks. will now closing bring occur XX XXXX, over XX, float for lockup on release final to to will Our public pre-IPO it

we strong fully a congratulate earn on basis. dividends In and regular closing, to Shai. special continued as both of per share another results our to want our team quarter you, Thank I on

well opportunities to are turn operator our the to to the call over about prospects with market attractive we ability to We the advantage ahead excited the and an believe we Q&A. continue shareholders as of positioned are yield. I significant for now will distribution take reward

comes Our from question first Brian [Operator Instructions] Citizens. with Mckenna

And all platform platform equity of any commentary Churchill broader origination though, white network I market there curious space guess, is these relationships private and doing hope from I the really drive I'm adding to on further of ways appreciate large is everyone the your the well. firms. across I to? ultimately terms that can relationships to expanding penetrate leverage other additional this of benefits further in part And there your market here? any new or are

deals Yes. Thanks, No, effort a It's we base. where great increase seeing to our focus deals this is expand couple it's pretty a Ken. And lot firms we're I firms. success question. comments. make had firms doing on the Brian. of about new expand that good year, with from there we've and those a ongoing we're would in One relationship XX%

that So sense, relationships in expanding deal-wise. those

aware, in funds that The have every private allocation other would year. equity new is say to ongoing I I as new we -- thing an investments think you're

adding business based Obviously, are investing relationships So and XX complementary and an upon those as track equity history of their services. record, in relationships such we're care private their each LP their to industries health year, X new software assessment performance, of

activity, relationships of and to the we're high-quality with annual off basis, effort being relationships have from otherwise. So brought out firms into new ours market LP or deal constantly maybe the environment for scouring the on but our an fold also we existing both relationships broaden spinning

are overstate lending LP those senior is About a I and driving to investment is an of can't have we investment driving relationship. an scope our activity. of where but activity, with white the activity increase continued XX% there which flow our relationships space, in important how deal So firms is

done homework. research. the And done with their the an and their we've record. obviously, tremendous track performance and understand We've We deal ongoing continuity drives them. them activity as dialogue So the LP with

in to Sponsor And then really up on haven't are deal yet we here, question activity Okay. related but more That's helpful. pick real starting Great. just a deals seen inflection activity. a broadly.

in a been think, terms seeing I any sponsors more for across helps. But what recently? acceleration you the biggest flow? the know from And change are in in election And the driver can with XXXX? see of here, then the and around platform I lot happen new clarity an as has deal tone there today getting into what across markets, do sponsor some you change M&A but

We have XXXX. actually a through Sure. deal Well, seen we've as gone activity increase it's quite continued in interesting.

is in a I opportunities clarity clarity down. rates, think and marketplace. lending more obviously certainly, think that recognition interest rates are around peaked coming have And the to I around

I together price to lending sellers it's regarding itself underlying more and buyers think terms. coming and

we actually it has as activity, see up. pick already deal begun So to

for In of stronger. quarter fact, look terms was was even deal platform, a in strong if you QX us across QX our activity. very

If including in XX% of from lending, the year-over-year you look our overall, in about we're XX% and at over year-over-year XXXX, it's activity investments of our up on all platform. level senior XXXX, up

quarter-over-quarter activity strong. very senior So and has lending up been XX%,

So primary think core activity. I activity the is a new LBO market, attributable to the lot middle really of the in that is amount fact deal that of

of the investment is new deal flow XX% that in the space benefiting level of I In core market think certainly And platform. us is deals. our across of terms in middle lending and the activity fact, about activity

into a and pipeline we the So fourth we -- expect busy now, forward. quarter, going right be move is quite to very good continue we're color our as and super we solid

Maxwell Truist. The next question with comes Richard from

Hughes. was, if give I'm on Can for us activity a on any, amendment the how in Mark sense you quarter?

a pickup quarter-over-quarter. comment Yes. that. We Shai. on to see big Max, it's didn't really Happy

are phenomenon One we up. continued an that and of anything, of kind performing portfolio, it over this last actually you of market repricing been uplift, but of investments see able yield both in existing transactions translate a borrowers floating on that stable that quarter, kind And of SOFR. frankly, commented wasn't a were XXX indicative also picking we new it really yes, if and of the at the like quarter-over-quarter. and in around moderation think you We've that's the metrics things quarter-over-quarter, this see of and kind we is spreads activity, was know that on trend. And pretty that quarter roughly where rate for into I it the of realize kind investments to that on

Ken related As if repricing, commented moderated amendments new that I but on pace has terms you say and will, quarter-over-quarter. of just the deals, in of would those

top can priority. Got on the structure you how is But capital your junior it. And comment spreads you competition of had up? mentioned for and the holding that debt

comment on I say it's I'd Yes. it, Ken. would interesting. it's

relationships. at you strategy. our If look those LP in debt heavily junior grounded is It

capital In fact, are our XXX% virtually of investments junior coming directly from relationships. those LP

is it OP there in debt from a much where from co-investments. equity coming have So subordinated we private investment, for same, the is that the straight very And where connectivity frankly, that equity history.

highly probably senior it's while So curated directly coming is relationships, so from the or XX% and sponsors. lending LP

If at been in the XX.XX% basis, to really XX% been overall you business, over It's extremely capital running on stable. junior look a entirety it's consistent of pricing our around XXXX. the

lenders. in and theirs. a competing we're with relative the capital of we selective. We're where situation dipping the We're very a junior where long-standing we're and opportunities we a percent into portfolio out smaller opportunities. And we're really from overall. being get directly subordinated of some again, good seeing it's those have not on very attractive So much they Obviously, they But the obviously need market opportunities. sponsor value, can are seeing a lender, other partner those price

[Operator from Derek Hewett, Bank of comes Instructions] Our question next America.

from the can sense those yield will the could of rotated get a what's market middle that be the to of top of of kind then yields unlevered middle perspective, strategies market core And be the X what's So so size a upper we potential portfolio what strategy? growth? for line that

market, couple Thanks call kind question. the would comments a I A liquid since obviously Shai. that the billion, relative And characterize It's portion number it's of asset IPO. come to million upper XX%. bit $X of portfolio. circa middle little the for our it down has $XXX Derek, there. Yes. of more the so

million so pipeline, roughly to executed busy readily obviously, As assets pre-IPO sort middle you middle all the the price the are and or IPO the phase, with liquid not capital called again, market that readily that of raised on. I we private you then like. we saw that of be of uncalled though, that in we've would we market, rotating that, those recall, raised all sales we or deployed, the been $XXX the traditional that million that going we the and our into we $XX liquid of of in and sort necessarily, in caution,

thoughtful as how going execute forward. quarter. over to that would to rotation be we're have the about successfully on So expect continue prior that we we on But done that strategy we going I execute

basis is points. traditional obviously, that, is, it, it and low In will. as you I would call the it kind relative yields, show terms in BSL between say of you quarter for you terms a market to XXX if differential premium market the that it of this up, in of see certainly, in upper saw quarter, middle last sort see pickup, yield wide somewhere you of

really ranged I wider spread XXX market terms would historically, that say and between of that today to with say, the strong because modest. increased our in would the XXX really spread back much spread So come that between DSL. And traditional that's that has market, impacted liquidity points I there. tightening as nodal tightening at been has market in more BSL basis it's has end

So it, in market, BSL middle saw as low the we're and be can and perspective. spread from around And upper executing the materials. you you XXX in XXXs, today, the XXXs call a in in down

you So there. context gives hopefully, that some

with KBW. Paul The Johnson from next question comes

new level does about increase How watch kind list of the nonaccruals were this the the watch on talk list point? this require Can just some or bit company describe going maintenance and the companies idiosyncratic this of little you stable. would Obviously, quarter. investments at in a of just were quarter the you of kind what

for Yes. the question. Thanks, Paul,

the right? during overall, just So there, looking at look new a health I comments first, you nonaccruals, and say, our obviously, nonaccruals no couple portfolio would of quarter. As across the

sort XX, management rating upgrade, So scale pretty proactive we We're the really is were X table manage see. And we got general. When we of I I quick think the you you're emblematic approach, the pretty think look performance very slower publish as we pleased response to doing at know within the our portfolio and about moves that that in seeing ongoing we're running risk to conditions granular names idiosyncratic obviously, the really list names But we've and call used in situations move, portfolio, maintenance a company-specific, to no watch you in right? the downgrade that And that to the and you with how going from that going moves overall, be the on as but that we're very out the aren't here. value list is themes There watch we shape. to more obviously, that's categorization, highlight. to any the list the of would really term moving again, shareholders to to major down good trends concerns maximize work the in the required. further before, modest always, increase those for around. Obviously, we've the that or

proactive So really in new of takeaway the within the is shape. function again, watch portfolio. nonaccruals really is list the our key good management is portfolio movement a of here Obviously, just no and

Mckenna with next Citizens. The question from comes Brian

October. back the $XX it Okay. like missed stock plan, bought might looks to repurchase million this, you of stock have date Great. through I but on

is discount buybacks How to much magnitude how much trading quarter? And widens. Can how then And third NAV. NAV program XX% the came ultimately, repurchase rehighlight of So you as October? just the the stock through the around the given structured? then where in is just currently in of

Yes.

discount volume NAV the under done average haven't but So as of percentages exactly Brian, kind each we increases. can our at I we daily are broadly the the in comment program we of trading level, increasing percentage I've on as to that purchased the the that past, published specifics,

So we move daily percentage NAV, increasing obviously as average purchases price. of in close to we're of trading as and modest when volume a down terms

So we've that's to buying coming saw in the increase that working. volume, would purchases active. again, shares got It's in we're with And of off as last the a in terms say of trends the increased obviously discount quarter we NAV. I lockup. the more

in XX,XXX XX,XXX that's the think sort is from increasing prior little moved and I average kind So the bit freely amount tradable of it the quarter. volume, the of range our a

little of million we're and program, program We've trading shares, it at on a buying $XXX lot $XX where to firepower that on we've trading. again, here. just and we'll the more trading amount of the utilize got at we're that So of discount based a bit a continue as how obviously we're used, million, looking left and but

would I the floor time, this for At back like Mr. to remarks. closing turn Ken to Kencel

fund has the the forward great all joining us into assess Hopefully, and bullish next informative feel to for information about you you on we're performance. Great. in We're call our fourth I again excited very everyone you and helpful as very, we We Well, opportunity investment here the found very move season. obviously you to a deploy call the quarter. opportunities to the and thank as new our And and for hopefully, again good year. seeing thank holiday all us. look joining capital. I want forward today.

This you. does Thank conclude teleconference. today's

day. participation, have may and You a Thank disconnect for great this time. lines you your at your