Core Viewpoint - Golub Capital BDC reported a challenging fiscal quarter with lower base rates, tighter spreads, and elevated credit stress impacting results, leading to a reset of the quarterly base dividend to $0.33 per share, which is about 9% of NAV per share [3][5]. Financial Performance - Adjusted net investment income (NII) was $0.38 per share, resulting in an adjusted return on equity (ROE) of 10.2%, while adjusted net income was $0.25 per share, translating to an adjusted ROE of 6.7% [2]. - The company paid a distribution of $0.39 per share during the quarter [2]. Portfolio and Credit Quality - The portfolio fair value declined to $8.6 billion, with non-accruals at 0.8% of the portfolio, which is below the BDC peer average [1][5]. - Adjusted net unrealized and realized losses increased to $0.13 per share, primarily due to markdowns on underperforming borrowers [6]. - The number of non-accrual investments rose to 14, with management noting a challenging outlook for 2026 amid lower rates and tighter spreads [5][6]. Dividend Policy - The board decided to reset the quarterly base dividend to $0.33 per share while maintaining a variable supplemental dividend policy aimed at distributing 50% of earnings above the base [1][5]. Portfolio Activity and Yields - GBDC's investment portfolio decreased by 1.5% sequentially, with a weighted average loan-to-value of approximately 43% [8]. - The investment income yield fell to about 10%, primarily due to lower base rates, while the net spread declined to 4.6% [10][11]. Liquidity and Leverage - Liquidity totaled approximately $1.3 billion, with net debt-to-equity standing at 1.23x, within the company's target range [4][13]. - The cost of debt decreased to 5.4%, and 81% of total debt funding is floating rate or swapped to floating rate [11]. Management Outlook - The company anticipates continued pressure on ROEs due to lower base rates, tighter spreads, and muted M&A activity, with public BDC net returns estimated to be about 4 percentage points lower year-over-year [14]. - Management emphasized the need for vigilance regarding software exposure and AI-related disruptions, noting a preference for enterprise-critical platforms [15].

Core Insights - Ares Capital reported strong financial results for 2025, achieving record levels of new investment commitments and maintaining a stable dividend yield of 10% [1][2] Financial Performance - In Q4, Ares Capital generated $0.50 per share in core earnings, exceeding its quarterly dividend of $0.48 per share, continuing a trend of core earnings surpassing dividend payments [2] - For the full year, core earnings were reported at $2.01 per share, which also covered the $1.92 per share in dividends paid [2] Investment Commitments - Ares Capital made $5.8 billion in new investment commitments in Q4 across 30 new portfolio companies and 84 existing ones, with 80% being first-lien, senior-secured loans [3] - The company exited $4.7 billion in investment commitments during the same period, resulting in a record total of $15.8 billion in gross commitments for the year, while exiting $12.1 billion [3] Portfolio Valuation - The investment portfolio was valued at $29.5 billion at year-end, an increase from $26.7 billion at the end of 2024, encompassing 602 portfolio companies [4] Balance Sheet Strength - Ares Capital enhanced its balance sheet by adding a record $4.5 billion in new debt commitments while maintaining sufficient liquidity for new investments [5] Early 2026 Performance - The company has made $1.4 billion in new investment commitments through late January 2026, with $709 million in commitments exited, and has an additional $2.2 billion in potential investments in its backlog [6] - Ares Capital estimates carrying forward $1.38 per share of excess taxable income from the previous year for distribution in 2026, providing a cushion for its dividend payments [7]

Core Insights - High Yield Investor is celebrating its fifth anniversary by offering a 30-day money-back guarantee, encouraging new memberships and the release of their Top Picks for 2026 [1] Company Overview - Blackstone Secured Lending (BXSL) is highlighted as one of the highest-quality publicly traded business development companies currently available [1] - The previous rating for BXSL was a Buy, but recent bearish sentiment in the private credit and BDC sector has impacted its outlook [1] Analyst Background - Samuel Smith, the lead analyst, has extensive experience in dividend stock research and investment, holding degrees in Civil Engineering & Mathematics and a Master's in Engineering with a focus on applied mathematics and machine learning [1] - The High Yield Investor team, including Samuel Smith, Jussi Askola, and Paul R. Drake, aims to balance safety, growth, yield, and value in their investment strategies [1] Investment Services - High Yield Investor provides various investment portfolios, including core, retirement, and international options, along with regular trade alerts and educational content [1] - The service also features an active chat room for investors to engage and share insights [1]

GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED DECEMBER 31, 2025 Confidential | for discussion purposes only Disclaimer Some of the statements in this presentation constitute forward-looking statements, which relate to future events or our future performance or financial condition. The forward-looking statements contained in this presentation involve risks and uncertainties, including statements as to: our future operating results; our business prospects and the prospects of our portfolio compa ...

Financial Data and Key Metrics Changes - Fundings for the quarter totaled $99.1 million, with net originations at $46.3 million, reflecting a decline in exits and prepayments to $52.8 million [4] - Interest income rose to $23.9 million, a 1% increase, while net investment income declined to $11.3 million or $0.50 per share [10][12] - Total assets increased to $923 million, with liabilities rising to $445 million, resulting in a net asset decline of $4.7 million to $477 million [11][12] Business Line Data and Key Metrics Changes - The portfolio's investment mix remained stable, with first lien debt and total debt investments at 73% and 91% of the portfolio at cost, respectively [6] - PIK income rose to $2.3 million, accounting for 9.6% of interest income, although the accrued PIK balance declined due to collections [6][10] Market Data and Key Metrics Changes - The current line of credit facility totals $365 million, with over $150 million available for near-term investment activities [9] - The company ended the quarter with a conservative leverage position, with net debt at 93% of NAV [9] Company Strategy and Development Direction - The company is focusing on lower middle-market deal flows and has a robust pipeline of late-stage deals exceeding $100 million [8] - Management emphasized the importance of maintaining a strong balance sheet and leveraging bank lines to support growth and dividends [14] Management's Comments on Operating Environment and Future Outlook - Management noted resilience in the lower middle market and expressed optimism about the investment pipeline despite traditional slowdowns in Q1 [8] - The company is cautious about the sustainability of investments in sectors like AI and data centers, focusing instead on its core competencies [21][22] Other Important Information - Monthly distributions for February and March will be $0.15 per common share, with an annual run rate of $1.80 per share, yielding approximately 8.8% [12][13] - The company is monitoring potential impacts from interest rate changes and has strategies in place to support dividends amid fluctuating rates [63] Q&A Session Summary Question: Inquiry about the use of revolver and interest rate floors - Management confirmed that most variable rate loans have floors and that they intend to rely more on floating rate debt as interest rates decline [18][19] Question: Opportunities in AI and data center investments - Management clarified that they do not directly invest in data centers but are cautious about the sustainability of related investments [21][22] Question: Increase in PIK income - Management explained that the increase in PIK is due to specific credits needing cash flow flexibility and ongoing business scaling [23][24] Question: Changes in diluted share count - Management indicated that the change is primarily due to convertible debt accounting requirements and will continue as long as the debt is outstanding [31][32] Question: Regulatory updates affecting BDCs - Management noted that discussions around the AFFE rule have been ongoing for years, with no immediate changes expected [38] Question: Pipeline activity and spillover from Q4 - Management acknowledged that some deals have spilled over from Q4, with ongoing diligence affecting transaction timelines [42][43] Question: Appetite for government contractor businesses - Management stated that they generally avoid government contractors but addressed a unique situation related to a specific portfolio company [46][50] Question: Status of eegee's equity performance - Management provided insights into the challenges faced by eegee's, including seasonal impacts and external economic factors, while noting ongoing management efforts [51][55]

Core Insights - Ares Capital Corporation (ARCC) shares increased by 2.3% after the announcement of its fourth-quarter and full-year 2025 results, with quarterly core earnings of 50 cents per share meeting the Zacks Consensus Estimate, although this represented a 9.1% decline from the prior-year quarter [1][8] Financial Performance - GAAP net income for the fourth quarter was $293 million or 41 cents per share, down from $357 million or 55 cents per share in the prior-year quarter [2] - For the full year 2025, core earnings per share were $2.01, beating the consensus estimate by a penny but declining 13.7% year over year; GAAP net income was $1.3 billion or $1.86 per share, down from $1.52 billion or $2.44 per share in 2024 [2] Investment Income and Expenses - Quarterly total investment income was $793 million, an increase of 4.5% year over year, driven by higher capital structuring service fees, interest income from investments, and other income; however, it fell short of the Zacks Consensus Estimate of $796 million [3][8] - For 2025, total investment income rose 2.1% to $3.05 billion, missing the Zacks Consensus Estimate of $3.06 billion [3] - Total quarterly expenses were $406 million, up 4.9%, primarily due to higher interest and credit facility fees and base management fees [4] Portfolio Activities - In the fourth quarter, Ares Capital made gross commitments of $5.83 billion to new and existing portfolio companies, an increase from $3.75 billion in the prior-year quarter [5] - The company exited $4.75 billion of investment commitments in the reported quarter compared to $2.75 billion a year ago [5] - The fair value of Ares Capital's portfolio investments was $29.5 billion as of December 31, 2025 [5] Balance Sheet Strength - As of December 31, 2025, cash and cash equivalents totaled $638 million, up from $635 million as of December 31, 2024 [6] - Ares Capital had $5.5 billion available for additional borrowings under existing credit facilities, with total outstanding debt at $16 billion [6] - Total assets were $31.24 billion, and stockholders' equity was $14.32 billion, with a net asset value of $19.94 per share, up from $19.89 as of December 31, 2024 [6] Market Outlook - Growth in total investment income is expected in the near term due to rising demand for customized financing and lower rates; increased investment commitments are likely to support ARCC's financials [9] - However, expansion strategies may lead to rising costs, and regulatory constraints pose a significant challenge [9]

Core Viewpoint - Robbins LLP has initiated a class action lawsuit on behalf of investors who acquired BlackRock TCP Capital Corp. (NASDAQ: TCPC) securities between November 6, 2024, and January 23, 2026, alleging that the company misled investors regarding its business prospects [1][2]. Group 1: Allegations Against BlackRock TCP - The complaint alleges that during the class period, BlackRock TCP failed to disclose that its investments were not being timely or appropriately valued [2]. - It is claimed that the company's portfolio restructuring efforts were ineffective in resolving challenged credits or improving portfolio quality [2]. - The lawsuit asserts that the company's unrealized losses were understated, leading to an overstatement of the company's net asset value (NAV) [2]. - As a result of these issues, the positive statements made by the defendants about the company's business and prospects were materially misleading [2]. Group 2: Financial Disclosure and Impact - On January 23, 2026, BlackRock TCP disclosed that its NAV per share as of December 31, 2025, was between $7.05 and $7.09, which is 19% lower than the previous quarter and 23.4% lower than the previous year [3]. - Following this disclosure, BlackRock TCP's stock price dropped by $0.76, or 12.97%, closing at $5.10 per share on January 26, 2026 [3]. Group 3: Class Action Participation - Shareholders interested in serving as lead plaintiffs in the class action must file their papers with the court by April 6, 2026 [4]. - Participation in the case is not required to be eligible for recovery, allowing shareholders to remain absent class members if they choose [4].

Core Viewpoint - Crescent Capital BDC, Inc. will release its financial results for Q4 and the fiscal year ended December 31, 2025, on February 18, 2026, after market close, followed by a conference call on February 19, 2026, at 12:00 p.m. Eastern Time to discuss these results [1]. Group 1: Financial Results Announcement - Crescent BDC will announce its financial results for the fourth quarter and fiscal year on February 18, 2026 [1]. - A conference call will be held on February 19, 2026, at 12:00 p.m. Eastern Time to discuss the financial results [1]. Group 2: Conference Call Information - The conference call will be accessible via the Investor Relations section of Crescent BDC's website [2]. - Participants can join the call by dialing a toll-free number and using a specific Conference ID [2]. Group 3: Company Overview - Crescent BDC is a business development company focused on maximizing total returns for stockholders through capital solutions for middle market companies [4]. - The company is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent Capital Group LP [4]. - Crescent Capital Group LP manages approximately $50 billion in assets and specializes in below investment grade credit [5].

Core View - Ares Capital Corporation (ARCC) reported strong financial results for 2025, with core earnings per share (EPS) of $2.01 for the full year, fully covering dividends and achieving a return on equity (ROE) exceeding 10% [5][20]. - The company ended 2025 with a net asset value (NAV) per share of $19.94, reflecting a modest increase from the previous year [21]. - ARCC's portfolio remains well-diversified, with over 600 borrowers and a record $29.5 billion in total portfolio at fair value, marking a 10% increase year-over-year [29][30]. Financial Performance - Core EPS for Q4 2025 was $0.50, consistent with the previous quarter but down from $0.55 a year ago, primarily due to declining base rates [19]. - GAAP net income per share for 2025 was $1.86, down from $2.44 in 2024 [19]. - The company generated over $470 million in gross gains from its equity co-investment portfolio during 2025, with an average internal rate of return (IRR) exceeding 25% [12][13]. Investment Activity - ARCC achieved a record $15.8 billion in new investment commitments for 2025, with over $5.8 billion originated in Q4 alone, representing a 50% increase from 2024 [28]. - The majority of new lending activity in 2025 came from incumbent borrowers, with a significant increase in transaction activity in the second half of the year [6][8]. - The company added over 100 new borrowers to its portfolio in 2025, a new record, reflecting its broad market reach and specialized industry verticals [8][9]. Portfolio Quality - The average portfolio leverage decreased by approximately a quarter turn of EBITDA from the prior year, with an average interest coverage ratio improving to 2.2 times [11][31]. - Non-accruals at cost remained stable at 1.8%, well below historical averages, indicating strong credit quality [35]. - The weighted average organic EBITDA growth rate of ARCC's borrowers was over three times that of GDP, demonstrating robust performance relative to the broader market [11]. Market Outlook - The company remains confident in its competitive advantages, including its experienced team and strong market relationships, which are expected to support future performance [6][7]. - ARCC anticipates continued growth opportunities from strategic investments and a healthy credit performance outlook, despite potential headwinds from lower short-term interest rates [17][20]. - The company is well-positioned to capitalize on market opportunities, supported by a diversified capital base and a strong liquidity position of over $6 billion [25][26]. Dividend Outlook - ARCC plans to maintain its dividend level, supported by a strong earnings power and over two quarters of spillover income available for distribution [26][15]. - The first quarter 2026 dividend is set at $0.48 per share, continuing a track record of stable or increasing dividends for 66 consecutive quarters [26]. - The company believes its current dividend level is achievable in the prevailing interest rate environment [15].

Ares Capital (NasdaqGS:ARCC) Q4 2025 Earnings call February 04, 2026 12:00 PM ET Company ParticipantsBrian McKenna - Director of Equity ResearchJana Markowicz - COOJim Miller - PresidentJohn Stilmar - Partner and Co-Head of the Ares Public Markets Investor RelationsKort Schnabel - CEOScott Lem - CFOConference Call ParticipantsArren Cyganovich - Managing Director and Senior Equity Research AnalystCasey Alexander - Managing Director and Senior Equity AnalystDerek Hewitt - AnalystDoug Harter - Director and Sen ...