Investcorp Credit Management BDC, Inc.

Good morning and thank you for joining today's Invescorp Credit Management BDC second quarter fiscal year 2024 earnings call. It is now my pleasure to turn the floor over to Rocco Del Garcia, CFO.

Thank you, operator. I would like to remind everyone that this call is being recorded and that this call is a property of Invescorp Credit Management BDC. Any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by visiting our investor relations page on our website at icmbdc.com. I would also like to call your attention to the State Harbor disclosure in our press release regarding forward-looking information and remind everyone that today's call may include forward-looking statements and projections. Actual results may differ materially from these projections. We will not update forward-looking statements unless required by law. To obtain copies of our latest SEC filing, please visit our Investor Relations page on our website. At this time, I would like to turn the call over to our Chairman and CEO, Michael Malice.

Thanks, Rocco, and thank you to everyone for joining us on our second quarter of fiscal year 2024 earnings call. I'm joined by Suhail Shaikh, my co-CIO and president of the SESCORP Credit Management CDC, and Rocco DelGurcio, our CFO. Before I begin the call, I would first like to address the change in leadership in the news that was announced in our 8K on November 28, 2023. Rocco DelGurcio has decided to resign as the company's CFO, TCO, Treasurer, and Secretary, effective March 31, 2024. We'd like to personally thank Rocco for his partnership and all of his contributions over the eight years with us. We announced our revised financial results on Wednesday, where our fiscal second quarter ended December 31, 2023, to reflect approximately $388,000, or two cents per share, of adjustments relating to the incorrect accrual of certain expenses reported in the company's consolidated financial statements, contained in the press release issued by the company February 12, 2024. On today's call, I will provide an update regarding our performance in the quarter, the market, commentary, and our non-accrual investment, as well as our leverage, the dividend, and our outlook. 2L will walk through our investment activities during the December quarter and after quarter as we will end with Q&A. During the quarter ended December 31, our net investment income was $1.6 million or $0.11 per share. This was a decrease of approximately 3% from the previous quarter's net investment income. Additionally, net asset value per share declined approximately 6% to $5.48 per share from $5.83 per share at the end of the prior quarter. The decline now was largely due to changes in valuations for two investors, Klein Hirsch and American Duck, as well as the restructuring of Arbor Works, which closed on November 6th. We remain highly focused on portfolio management and risk mitigation, especially for our borrowers that are experiencing periods of stress. We did not add any new positions to non-accruals during this quarter, and our position on non-accruals declined to 4.6% as a percentage of total value of the portfolio compared to 10% as of the previous quarter. We continue to make progress rotating our portfolio and expect progress on the remaining non-accruals in the next 12 months. Regarding 1888, The company has entered into a sale agreement, which is expected to close in the next week. We do not expect any changes to the value as a result of this sale. We slightly under-earned our December quarterly dividend, and the company is expected to earn its dividend through the next quarter ending March 31st. We are pleased to announce that on February 8th, 2024, the Board of Directors will declared a distribution for the quarter ended March 31, 2024 of $0.12 per share, as well as a supplemental distribution of $0.03 per share. Both payable on April 5, 2024 to stockholders of record as of March 15. Our growth leverage this quarter was 1.7 times and our net leverage 1.51, both above our guidance of 1.25 to 1.5 times. As of February 16th, our growth and net leverage were approximately 1.62 and 1.6. With identified repayments, we expect this to reduce this leverage to approximately 1.5 during the quarter. I will turn briefly to address the trends in the market. Yield volumes have picked up compared to the previous quarter in this environment. We are focused on reasonable leverage and solid structures. Since quarter-end, our investment pipeline has picked up, primarily driven by add-on financing and refinancing, and to a lesser extent, new LDOs. We are specifically focused on lending to companies that are sponsor-backed at financial companies like Pre-Tax Flow and Recession Resilience. As we look at our borrowers' operating performance, the credit quality of our portfolio continues to remain solid. Our weighted average loan-to-value for our portfolio of debt investments is approximately 50%, an increase from 41% last quarter. We continue rotating and diversifying the portfolio. Our portfolio diversification has improved since the prior year. During the quarter, we had investments in 44 borrowers against 25 industries. which is up from 37 borrowers and 19 industries in the prior year's December quarter. SUHAIL will now walk through our investment activity during the December quarter and after quarter end. With that, I'll turn it over to SUHAIL.