MidCap Financial Investment Corporation

Good morning and welcome to the earnings conference call for the period ending June 30, 2026 for MidCap Financial Investment Corporation. At this time, all participants have been placed in a listen-only mode. The call will be open for a question and answer session following the speaker's prepared remarks. If you would like to ask a question at that time, simply press star 1 on your telephone keypad. If you would like to withdraw your question, press star 2. I will now turn the call over to Elizabeth Besen, Investor Relations Manager for MidCap Financial Investment Corporation.

Thank you, operator, and thank you, everyone, for joining us today. We appreciate your interest in MidCap Financial Investment Corporation. Speaking on today's call are Tanner Powell, Chief Executive Officer, Ted McNulty, President, and Kenny Seifert, Chief Financial Officer. I'd like to advise everyone that today's call and webcast are being recorded. Please note that they are the property of MidCap Financial Investment Corporation and the Thank you for joining us. We do not undertake to update our forward-looking statements or projections unless required by law. To obtain copies of our SEC filings, please visit either the SEC's website at www.sec.gov or our website at www.midcapfinancialic.com. I'd also like to remind everyone that we posted a supplemental financial information package on our website, which contains information about the portfolio as well as the company's financial performance. Throughout today's call, we will refer to MidCap Financial Investment Corporation as either MSIC or the BDC, and we will use MidCap Financial to refer to the lender headquartered in Bethesda. At this time, I'd like to turn the call over to Tanner Powell, MSIC's Chief Executive Officer.

Thank you, Elizabeth. Good morning, everyone, and thank you for joining for MidCap Financial Investment Corporation's quarterly earnings commerce call. Earlier this morning, we issued our press release. and filed our Form 10-Q for the period ended June 30th, 2026. I'll dig into today's call with an overview of NFIC's second quarter results and investment activity. Following that, I'll hand the call over to Ted, who will walk through our investment activity in detail and provide a portfolio update. Kenny will then review our financial results in detail. Beginning with an overview of our results, net investment income or NAI per share for the quarter was $0.40, while GAAP net loss per share was $0.21. Net added value per share at the end of June was $13.37. represented 3.2% decline from the prior quarter. The $0.45 decrease in NAV was driven by a net loss of $0.61 on the portfolio, which was partially offset by net investment income exceeding the dividend by $0.09 plus approximately $0.07 of accretion in stock repurchases executed below NAV. The quarter reflected some credit pressure within the portfolio with a net loss of $50 million, $50.3 million, or $0.61 per share concentrated among a limited number of positions. Ted will address the largest negative contributors shortly. MFIC new commitments were intentionally modest at $5.8 million for the quarter to support three existing borrowers. Net repayments were $160 million in aggregate. As a result of the net loss and stock buyback activity, MFIC's net leverage declined only modestly to 1.54 times at quarter end. Excluding stock buybacks made during the quarter, MFIC's net leverage would have declined to 1.5 times at quarter end. Looking ahead, we will make capital allocation decisions based on leverage and market conditions. At the end of June, MFIC's investment in Merck's totaled approximately $68.6 million in fair value, representing 2.5% of our portfolio. This reflects a $12.5 million pay down during the June quarter from the sale of one aircraft in a joint venture plus a modest rental. As a reminder, Merck's earns income from its servicing activities for Navigator, Apollo's dedicated aircraft leasing facility. Having fully deployed executive commitments, Navigator is in the hardest period, and as such, the fund is opportunistically monetizing assets to optimize fund level returns. Merckx receives a remarketing fee on each aircraft sale. Subsequent to quarter end, Merckx has sold one aircraft and is in the process of closing on the sale of an engine. Navigator is in the process of selling a large portfolio of aircraft, which will generate servicing income for Merckx. We expect to receive additional paydowns from Merckx in the September quarter from these transactions. Turning back to the stock repurchases as discussed on last quarter's call in April, we repurchased 31.9 million of stock through our 10B51 trading plan, fully utilizing our authorization. Given our focus on reducing MFIC's leverage, we are currently prioritizing capital allocation towards that objective rather than towards additional stock repurchases. Moving on to the dividend, on August 5th, 2026, our Board of Directors declared a quarterly dividend of $0.31 per share for stockholders who record as of September 8th, 2026, payable on September 24th, 2026. With that, I will now turn the call over to Ted.