Shares declined 3.0% as investors reacted negatively to margin pressure and lower adjusted net investment income per share, reflecting cautious leverage management and persistent markdowns in software loans.
- Net asset value per share declined to $15.69 from $16.30 in the prior quarter, primarily due to a 310 basis point markdown in performing software loans.
- Adjusted net investment income fell to $0.38 per share from $0.41, driven by lower reference rates, reduced nonrecurring income, and conservative leverage positioning below the midpoint of the target range.
- Nonaccruals improved, decreasing from 3.1% to 2.6% of the debt portfolio, aided by post-quarter legacy loan sales.
- Liquidity increased to $671 million, up $100 million quarter-over-quarter, supporting flexibility amid market volatility.
- The Board adjusted the base dividend down to $0.30 per share but maintained a supplemental dividend tied to excess adjusted net investment income.
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