Sound Point Meridian Capital, Inc.

Ladies and gentlemen, thank you for standing by. Sound Point Meridian Capital refers participants on this call to the investor webpage at www.soundpointmeridiancap.com for the press release, investor information and filings with the Securities and Exchange Commission, and for a discussion of the risks that can affect the business. Sound Point Meridian Capital specifically refers participants to the presentation furnished today on the Form 8K with the SEC. and to remind listeners that some of the comments today may contain forward-looking statements, and as such will be subject to risks and uncertainties which, if they materialize, could materially affect results. References made to the section titled Forward-Looking Statements in the Company's Earnings Press Release for the Latest Quarter End, which is incorporated herein by reference. We note forward-looking statements, whether written or oral, include but are not limited to SoundPoint Meridian Capital's expectation or prediction of financial and business performance and conditions, as well as its competitive and industry outlook. Forward-looking statements are subject to risks, uncertainties, and assumptions which, if they materialize, could materially affect results. And such forward-looking statements do not guarantee performance, and SoundPoint Meridian Capital gives no such assurances. Sound Point Meridian Capital is under no obligation and expressly disclaims any obligation to update, alter, or otherwise revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. In addition, historical data pertaining to the operating results and other performance indicators applicable to Sound Point Meridian Capital are not necessarily indicative of results to be achieved in succeeding periods. I will now turn the call over to Ujjval Desai, Chief Executive Officer of SoundPoint Meridian Capital.

Thank you to everyone joining us today, and welcome to the SoundPoint Meridian Capital earnings call for the fourth fiscal quarter ended March 31st, 2026. We'd like to invite you to download our investor presentation from our website, which provides additional information about the company and our portfolio. With me today is our Chief Financial Officer, Dan Fabian, and after our prepared remarks, will open the call to your questions. For the fourth fiscal quarter ended March 31st, 2026, we generated net investment income, or NII, of $7 million, or 34 cents per share, and recorded a net realized loss of 20 cents per share on exited investments. We paid distributions of 75 cents per share during the quarter. NII remained below common distributions because of spread tightening and significant decline in CLO equity arbitrage over the past 12 to 18 months. Net asset value, NAV per share, ended the quarter at $9.63, down from $14.02 as of December 31st, 2025. The NAV decline was a result of weaker market valuations of CLO equity and underlying leverage loans, combined with lower projected CLO equity cash flows. As of quarter end, our CLO equity portfolio's weighted average gap yield was 9.1% versus 11% in the prior quarter, driven by a sell-off in loans, particularly in the software sector, which increased model default rates of the underlying loans. Our portfolio remains highly diversified with investments across 98 CLOs managed by 29 different managers, providing exposure to over 1,500 underlying loans spanning more than 30 industries on a look-through basis. In an environment characterized by increasing dispersion across sectors, credits, and managers, we believe this level of diversification remains an important component of a risk management approach. Subsequent to quarter end, we announced monthly distributions for calendar Q3 2026 of 20 cents per share unchanged from our previously announced Q2 2026 monthly distributions. We will continue to evaluate distribution levels as earnings, market conditions, and portfolio positioning evolve, and expect to reassess the distribution strategy over the coming months as market visibility improves. I will now turn the call over to Dan for a more detailed review of our financial highlights for the quarter.

Thanks, Ujjval, and hello, everyone. As Ujjval mentioned, the quarter ended March 31, 2026. we delivered net investment income of $7 million or 34 cents per share. During the quarter, we purchased one new issue equity position with a cost of $4.5 million and a weighted average gap yield of 10.65%. We also purchased three equity investments in the secondary market with a cost of $7.4 million and a weighted average yield of 31.37%. In addition, we sold two equity investments, generating $8.4 million in cash proceeds with a weighted average yield of 7%. We refinanced the liabilities of two CLO equity investments, resulting in a weighted average debt cost saving of 34 basis points. Finally, we redeemed two CLOs during the quarter, generating an additional $14.9 million in cash. So the quarter ended March 31st, 2026. We recorded a net realized loss of $4.1 million and an unrealized loss on investments of $77.6 million. Total expenses during the quarter were $8.2 million. The gap net loss for the quarter was $74.7 million or a loss of $3.63 per share. Moving to our balance sheet, As of March 31st, 2026, total assets were $374.5 million. Net assets were $198.7 million, and our net asset value stood at $9.63 per share. The fair value of our investment portfolio stood at $368.2 million, while available liquidity consisting of cash was approximately $5.8 million at the end of the quarter. As of March 31st, 2026, the company's leverage ratio was 46.8% of total assets. During the quarter, we declared monthly cash distributions of 20 cents per share payable at the end of April, May, and June. Based on our share price as of March 31st, 2026, this represents an annualized dividend yield of 26.8%. As of April 30th, 2026, our estimated net asset value per common share was $10.57. I'll now turn it back to Ujjwal Desai.