Financial Data and Key Metrics Changes - For the fourth quarter ended December 2025, the company's net investment income was approximately $5.4 million or $0.07 per share, a slight decrease from approximately $5.6 million or $0.07 per share in the prior quarter [4] - The net asset value per share decreased to $1.69 from $1.95 in the prior quarter [4] - Total investment income for the quarter was approximately $10.4 million, compared to approximately $10.2 million in the prior quarter [4] - The company recorded combined net unrealized and realized losses on investments of approximately $18.3 million or $0.22 per share, compared to losses of approximately $7.5 million or $0.09 per share in the prior quarter [5] Business Line Data and Key Metrics Changes - The investment activity during the quarter included purchases of approximately $18 million and repayments of approximately $7.4 million [5] - The company issued approximately 4.3 million shares of common stock, resulting in net proceeds of approximately $7.9 million [5] Market Data and Key Metrics Changes - U.S. loan market performance declined, with U.S. loan prices decreasing from 97.06% of par to 96.64% of par [7] - The 12-month trailing default rate for the loan index decreased to 1.23% from 1.47% [8] - The distress ratio, defined as loans with prices below 80% of par, increased to 4.34% from 2.88% [8] - U.S. leveraged loan primary market issuance was $70.7 billion, representing a 27% decrease compared to the same quarter in the previous year [8] Company Strategy and Development Direction - The company focuses on portfolio management strategies aimed at maximizing long-term total return, leveraging its status as a permanent capital vehicle to adopt a longer-term investment strategy [9] Management's Comments on Operating Environment and Future Outlook - Management noted that the current state of the software market reflects real concerns, contributing to wider corporate loan spreads and lower pricing in the syndicated loan markets [16] - The company sees opportunities in both primary and secondary markets despite the slowdown in the primary market due to volatility [13] Other Important Information - The board of directors declared monthly distributions of $0.035 per share for the months ending April, May, and June of 2026 [5] - Additional performance information is available on the company's website [10] Q&A Session Summary Question: Details on $18 million of new investment purchases - The company is focused on first lien loans, particularly B2B loans, and sees opportunities in both primary and secondary markets despite market volatility [12][13] Question: Distress ratio increase and its implications - Management confirmed that the increase in the distress ratio reflects concerns in the software market and broader market volatility, which may create investment opportunities at lower prices [14][16] Question: Drivers of unrealized appreciation in the quarter - The primary driver of unrealized appreciation was a markdown of the CLO equity portion of the investment book, which faced challenges during the quarter [17][18]

Financial Data and Key Metrics Changes - For Q4 2025, the company's net investment income was approximately $5.4 million or $0.07 per share, a slight decrease from approximately $5.6 million or $0.07 per share in the prior quarter [4] - The net asset value per share decreased to $1.69 from $1.95 in the prior quarter [4] - Total investment income for the quarter was approximately $10.4 million, compared to approximately $10.2 million in the prior quarter [4] - The company recorded combined net unrealized and realized losses on investments of approximately $18.3 million or $0.22 per share, up from approximately $7.5 million or $0.09 per share in the prior quarter [5] Business Line Data and Key Metrics Changes - The investment activity during the quarter included purchases of approximately $18 million and repayments of approximately $7.4 million [5] - The company issued approximately 4.3 million shares of common stock, resulting in net proceeds of approximately $7.9 million [5] Market Data and Key Metrics Changes - U.S. loan market performance declined, with loan prices decreasing from 97.06% of par to 96.64% of par [7] - The 12-month trailing default rate for the loan index decreased to 1.23% from 1.47% [8] - The distress ratio increased to 4.34% from 2.88% [9] - U.S. leveraged loan primary market issuance was $70.7 billion, a 27% decrease compared to the same quarter in the previous year [9] - U.S. loan fund outflows were approximately $3.2 billion for the quarter [10] Company Strategy and Development Direction - The company focuses on portfolio management strategies aimed at maximizing long-term total return, leveraging its status as a permanent capital vehicle to adopt a longer-term investment view [10] Management's Comments on Operating Environment and Future Outlook - Management noted that the current state of the software market reflects real concerns, contributing to wider corporate loan spreads and lower pricing [16] - The increase in the distress ratio is indicative of volatility in the market, particularly in the software sector [15][16] Other Important Information - The board of directors declared monthly distributions of $0.035 per share for the months ending April, May, and June of 2026 [5] Q&A Session Summary Question: Details on $18 million of new investment purchases - Management indicated a focus on first lien loans, particularly B2B loans, and noted opportunities in both primary and secondary markets due to current trading conditions [14] Question: Drivers behind the increase in the distress ratio - Management confirmed that the distress ratio increase is reflective of volatility in the software market and a general pushback against growth in the private credit asset class [16] Question: Unrealized appreciation in the quarter - The primary driver of unrealized appreciation was a markdown of the CLO equity portion of the book, which faced challenges during the quarter [18]