Financial Data and Key Metrics Changes - Net investment income (NII) per share for Q3 2025 was $0.38, corresponding to an annualized return on equity (ROE) of 10.3% [5][26] - GAAP net income per share was $0.29, corresponding to an annualized ROE of 8% [6][26] - Net asset value (NAV) per share decreased by 0.6% to $14.66 compared to the prior quarter [6] - Total investment income for the quarter was approximately $82.6 million, up 1.6% from the previous quarter [24] Business Line Data and Key Metrics Changes - New commitments totaled $138 million across 21 transactions during the quarter [6][16] - The weighted average spread on new commitments was 521 basis points [16] - The weighted average yield at cost of the directly originated lending portfolio decreased to 10.3% from 10.5% [24][19] Market Data and Key Metrics Changes - The U.S. economy showed resilience, easing recession concerns, but inflation remained elevated [15] - The Federal Reserve cut interest rates by 25 basis points in both September and October [15] - Increased sponsor M&A activity was noted, driven by private equity firms needing to deploy capital [15][41] Company Strategy and Development Direction - The company aims to leverage its strong position in the middle market to source attractive investment opportunities [7][9] - The focus remains on maintaining a diversified portfolio with a significant portion in first lien loans [9][18] - The company is actively working on initiatives to offset the impact of declining base rates on net investment income [12][13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about ongoing M&A activity due to improved market conditions and reduced volatility from tariffs [41] - The company anticipates a positive impact on portfolio company credit quality if base rates decline as expected [20] - Management is focused on a measured approach to deploying capital while maintaining portfolio granularity [46] Other Important Information - The board declared a quarterly dividend of $0.38 per share, payable on December 23, 2025 [11] - The company experienced an increase in non-accrual investments, which now represent 3.1% of the portfolio at fair value [22] Q&A Session Summary Question: What drove the increase in non-accruals? - Management noted that there was no common theme among the companies that went on non-accrual, with some impacted by tariffs and others by weakened consumer sentiment [32][33] Question: Is the increase in M&A activity sustainable through 2026? - Management indicated that ongoing demand for M&A activity is expected due to private equity firms needing to deploy capital and improved market conditions [40][41] Question: How is the company evaluating the timing of mitigating actions against lower base rates? - Management emphasized a deliberate approach to deployment, balancing the need to return to target leverage with the opportunity to create a granular portfolio [46] Question: What are the latest thoughts on dividend coverage given the current rate outlook? - Management confirmed that the dividend remains intact, with several levers in place to mitigate the effects of lower base rates [60]

Financial Data and Key Metrics Changes - Adjusted net investment income for Q3 2025 was $0.32 per share, covering the $0.32 per share dividend paid on September 30 [5] - Net asset value per share declined by $0.15 compared to Q2, now at $12.06, due to modest declines across four investments [5][15] - Total investment income for the quarter was $80 million, a 4% decrease compared to the prior quarter [26] - Total net expenses decreased by 5% to $47 million, including a fee waiver [27] Business Line Data and Key Metrics Changes - NMFC's portfolio loan-to-value stands at 45%, with a focus on defensive growth sectors such as healthcare and IT [6][24] - Senior-oriented assets increased to 80% of the overall portfolio, up from 78% in the prior quarter [12][23] - The average yield of NMFC's portfolio decreased slightly to 10.4% due to lower yields on originations compared to repayments [24] Market Data and Key Metrics Changes - The direct lending market remains attractive, with stable spreads despite a lack of significant M&A activity [19][20] - Most unitranche loans are pricing at SOFR plus 450-500 range, indicating a stable pricing environment [20] - Approximately 80% of investments are senior in nature, reflecting a shift towards lower-risk assets [23] Company Strategy and Development Direction - NMFC aims to improve the quality and diversity of its asset base while optimizing liabilities and enhancing income quality [12] - The company is exploring a portfolio sale of up to $500 million to diversify its portfolio and reduce PIK income [7][8] - NMFC's management emphasizes shareholder alignment, with 14% of outstanding shares owned by employees and senior advisors [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the deal environment improving in Q4 and 2026, with expectations of increased repayments [36] - The company remains committed to maintaining leverage within a target range of 1 to 1.25 [26][36] - Management is focused on reversing unrealized depreciation within the existing portfolio and recovering full principal value on challenged investments [17][58] Other Important Information - NMFC has fully utilized a $50 million stock repurchase program, repurchasing approximately $47 million in shares at an average price of $10 [7] - The company has a diversified portfolio across 127 companies, with the top 10 single-name issuers accounting for 26% of total fair value [25] Q&A Session Summary Question: Regarding the potential portfolio sale - The sale will focus on the largest positions to diversify the portfolio and reduce PIK income, including both PIK and cash-yielding names [34] Question: On the buyback strategy - The company aims to stay within leverage levels while potentially using repayments to buy back stock if conditions allow [36] Question: About deployment capacity and strategy - NMFC remains active in the market but is prioritizing share repurchases due to leverage considerations [41] Question: On the potential secondary sale and use of proceeds - Proceeds could be used for debt repayment, stock repurchases, or new loans to diversify the portfolio [44] Question: Concerns about other portfolio positions affected by tariffs - The portfolio is well-positioned against tariff impacts, with Beauty Industry Group being the only significant exposure [55] Question: On the performance of Admentum - Admentum's performance is stable, and the company is working on targeted M&A to grow the business [67]

Financial Data and Key Metrics Changes - The company declared and paid a $0.25 per share dividend in Q1 2025, representing an annualized dividend yield of 14.3% based on the closing share price on 05/06/2025 [4] - Adjusted net investment income was $4.2 million or $0.19 per share, down from $6.2 million or $0.29 per share in the previous quarter [16][17] - NAV decreased to $186.9 million or $8.63 per share from $191.8 million or $8.85 per share at the end of Q4 2024 [18] Business Line Data and Key Metrics Changes - The investment portfolio totaled $430.6 million, a decrease of $26.4 million from $457 million at the end of Q4 2024, consisting of debt and equity investments in 85 portfolio companies [12] - Investment income totaled $11.6 million in Q1 2025, down from $14 million in Q4 2024, primarily due to lower effective yield and a decrease in average invested assets [20] Market Data and Key Metrics Changes - Middle market direct lending volume in Q1 2025 was down 22% from Q4 2024 but up 16% year-over-year [12] - The weighted average effective yield on the portfolio's debt and equity investments was 9.2% at 03/31/2025, compared to 10.2% at 12/31/2024 [17] Company Strategy and Development Direction - The company focuses on maintaining asset quality and positioning the portfolio for long-term performance amid market volatility [4][8] - The strategy includes supporting existing portfolio companies and selectively deploying capital into recession-resistant industries [9][10] - The partnership with Wendell Group aims to drive value for shareholders while maintaining operational independence [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio and the ability to navigate near-term income volatility [27] - The company anticipates that net investment income will be shy of current dividend levels in the short run, relying on accumulated spillover income to support dividends [30] Other Important Information - The company ended the quarter with reduced balance sheet leverage, with a leverage ratio of 1.45 times debt to equity compared to 1.53 times at the end of 2024 [16] - Total expenses for Q1 2025 were $7.6 million, down from $8 million in Q4 2024, primarily due to a decline in interest expense [24] Q&A Session Summary Question: Sustainability of the dividend - Management is evaluating the dividend in light of current earnings and anticipates that net investment income will be shy of current dividend levels in the short run, using spillover income to support the dividend [29][30] Question: Stock buybacks - The company has historically not supported stock buybacks, focusing instead on maintaining leverage and supporting portfolio companies [31] Question: Fee waivers - Management clarified that they continue to support MRCC and have waived incentive fees in the current and prior quarters, indicating ongoing support [35][36] Question: SLF structure and future - Management is evaluating whether to continue allowing the SLF portfolio to run off or to deleverage it, expressing a lack of constructive outlook on this end of the market [38][39] Question: Strategic evolution post-partnership - The company will continue to evolve strategically to create value for shareholders, with ongoing evaluations of strategic opportunities [42][43]

Financial Data and Key Metrics Changes - The fourth quarter net investment income (NII) was $0.47 per share, with a full year NII totaling $1.89 per share [6][24] - The return on equity (ROE) for the quarter was 12.4%, marking the eighth consecutive quarter of double-digit ROE, while the full year ROE was 12.2% [7] - The net asset value (NAV) per share at quarter end was $15.26, approximately in line with the prior quarter [7][24] - Record dividends paid out in 2024 totaled $1.72 per share, reflecting a nearly 10% year-over-year increase [8] Business Line Data and Key Metrics Changes - In 2024, the company originated a record $27 billion in direct investments, doubling from 2023 [16] - In the fourth quarter, approximately $1.2 billion in new investment commitments were deployed, with over 97% consisting of first lien investments [17][18] - First lien investments increased from 68% to 76% of the portfolio, and combined with OBDE's portfolio, first lien investments rose to 78% [18] Market Data and Key Metrics Changes - The average hold size on new direct lending deals grew from $200 million in 2021 to roughly $350 million in 2024, while total deal sizes nearly doubled from $600 million to over $1 billion [13] - The non-accrual rate remained low at 40 basis points of the portfolio at fair value, decreasing to 30 basis points when combined with OBDE's portfolio [21] Company Strategy and Development Direction - The merger with OBDE positioned the company as the second largest publicly traded BDC by total assets, enhancing trading liquidity and operational synergies [14] - The company aims to optimize its portfolio and asset mix for improved yield, potentially increasing investments in strategic equity and joint ventures [33] - The strategic focus includes expanding into alternative and investment-grade credit, as well as data centers, to augment the origination funnel [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the portfolio despite economic pressures, noting solid underlying financial performance from borrowers [20][78] - The expectation for 2025 includes potential synergies from the merger and a focus on optimizing the combined portfolio for better returns [31][33] - Management indicated that while headwinds from lower rates and spreads may persist, the company is well-positioned to capitalize on opportunities regardless of M&A activity [31] Other Important Information - The company reported total portfolio investments exceeding $17 billion and total net assets nearing $8 billion following the merger [24] - The company established a joint venture across all BDCs to create a more efficient investment structure [29] Q&A Session Summary Question: What can OBDC deliver in terms of ROEs in 2025 and beyond? - Management indicated that ROE could be in the low 10s due to headwinds from lower rates and spreads, but potential synergies from the merger could add 50 to 75 basis points to ROE [36][39][40] Question: Where is the portfolio in terms of recognizing Fed rate cuts? - The portfolio is about 70% through recognizing the resets from Fed rate cuts [54] Question: What proportion of the portfolio is still above legacy assets with higher spreads? - Approximately 10% to 15% of the portfolio could still be at risk of opportunistic refinancing at lower spreads [63][64] Question: Will there be significant new portfolio company creations in 2025? - No immediate plans for new portfolio company creations, but the company remains open to opportunities that align with its investment strategy [69] Question: How is the ATM program expected to be utilized? - The ATM program will be used to issue above book value, ensuring it is accretive and not dilutive [99] Question: What was the nature of the multi-billion dollar deals closed during the quarter? - The deals included public-to-private transactions and were new borrowers, not refinancings [100][101]