Financial Data and Key Metrics Changes - For the quarter ended September 30, 2025, the net investment income (NII) before taxes was $0.6 million, or 4 cents per share, a decrease of 2 cents per share from the previous quarter [4] - Net assets declined by approximately 4%, with net asset value per share decreasing to $5.04 from $5.27 last quarter [5] - The fair value of the portfolio was $196.1 million compared to $204.1 million on March 31 [9] - The weighted average yield of the portfolio from debt increased to 10.9% from 10.6% in the previous quarter [9] Business Line Data and Key Metrics Changes - Approximately 82% of assets at fair value are rated in the top two risk-rated categories, with a weighted average interest coverage ratio improving to 2.3 times compared to 2 times a year ago [6] - The portfolio consisted of investments in 41 companies, with 78% in first lien debt and 22% in equity warrants and other securities [9] - Non-accruals accounted for 4.4% of the portfolio at fair value, up from 1.6% last quarter [5] Market Data and Key Metrics Changes - Deal flow and sponsor-led M&A activity remain slow, with many transactions still in process rather than closing [6] - Approximately 57% of sponsor-backed private credit deals were priced with spreads below 500 basis points in the current quarter [7] Company Strategy and Development Direction - The company remains focused on executing its strategy and positioning the portfolio for long-term value creation, prioritizing credit quality and income stability over yield [13] - The refinancing commitment from Investcorp Capital enhances financial flexibility and strengthens the balance sheet [13][14] Management's Comments on Operating Environment and Future Outlook - The management noted solid underlying portfolio performance with strong coverage metrics and healthy diversification across sectors, despite a subdued market activity [15] - The company expects NII to benefit from new fundings and remains committed to disciplined portfolio management [7] Other Important Information - The board declared a distribution of $0.12 per share and a supplemental distribution of $0.02 per share payable in cash on December 12, 2025 [11] - As of September 30, the company had approximately $11.6 million of cash, with $36.5 million of capacity under its revolving credit facility [11] Q&A Session Summary Question: Clarification on the backstop for refinancing - The backstop is to refinance the notes in the event that they have not been refinanced prior to the April 1, 2026 maturity date [17] Question: Parameters regarding the coupons - The new coupon agreed upon is SOFR plus 550 on a floating-rate basis [18] Question: Spillover income for the quarter - The company does not provide specific spillover income but indicates that the dividend has been above NII, reflecting the spillback amount required [19] Question: Reason for keeping non-accrual investments on the portfolio - The company is required to keep all investments that have any chance of being paid on the portfolio, even if marked at zero [20][22]