Q4 2020 PennantPark Floating Rate Capital Ltd Earnings Call
You will come to the on the hold for the Pennantpark floating rate capital for fiscal <unk>. What are the truth I think 20 any scope for school I just times I should be true day diligence I tend to be all the way shortly the appreciate your patience of please remain on.
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Good morning, I will come to the end of floating rate debt Beatles sales fiscal quarter. The children 20 earnings Conference call. Today's conference is being recorded I just kind of.
The second is placed in other stuff on the knowledge the cope with the open for question and answer session. The living the speaker's remarks, if you would like to ask a question of the time simply press star one on your telephone keypad if.
She would like Georgia question first of all too well your telephone keypad. It just on the Trisha turn to call over to Mr., Chen Chairman and Chief Executive Officer.
And then talk floating rate capital missed the <unk> you may begin your conference.
Thank you good morning, everyone I'd like the welcome you to Pennantpark floating rate capitals fourth fiscal quarter 2020 earnings conference call.
I'm joined today by the that from our Chief Financial Officer of.
Please start off by disclosing some general conference call information on it.
The discussion about forward looking statements.
Thank you on what we'd like to remind everyone that todays call is being recorded please.
Please note that the these qualities of the property on kind of bought floating rate capital gotten back any on authorize book of all of these calls do you any color on it.
Exactly.
Well the audio replay on the call will be available for using the telephone numbers. Okay. How about it you know the earnings press release for as well as well as part of our website.
Oh for like the call your attention to the customer Safe Harbor disclosure in our press release regarding forward looking information.
Todays conference call on May also include forward looking statements from projections for we ask that you refer to on the first part like we've actually seen for important factors that could cause actual results to differ materially from these projections.
We do not undertake to update our forward looking statements capital that's required by GAAP.
The thing copies of our better, especially if you find the its please visit our website that kind of box.
The dot com for that.
Do you want to like your five 4000.
It'd be thought I'd like to turn the call back to our chairman and Chief Executive Officer Art Penn.
Thanks for the.
First we hope the you your families of knows you work with are staying healthy.
I'm going to spend a few minutes discussing how we fared in the quarter ended September thirtyth.
Of the portfolio is positioned for the upcoming quarters.
The capital structure of liquidity the financials.
Put out for queuing day.
Despite the challenging economic conditions brought on by depending on the <unk>. We are pleased with our performance this past quarter.
We achieved the 3.2% increase in adjusted the Navy as our portfolio continued to improve during the quarter.
We have several portfolio companies on which we have substantial equity positions for benefiting from the K shaped recovery.
It's the solidifying on bolstering the Navy.
Overtime rotation of that equity and the debt instruments should help growth P.S. Ltd income.
We will highlight those companies on a few minutes.
Additionally, we have been pleased with the stable performance of our long term of securitization.
Well of financing through kind of it.
That financing has continued to perform well and is well matched to finance our senior debt positions, which we believe are among the lowest risk in the industry.
As a result, we are exploring using the same type of financing to grow and officially financing L.P.S.L. JV, which should generate additional income for P.S. Ltd.
The combination of potential income growth from equity rotation.
On the larger and more efficiently for NASS P.S.L. shelf growth P.F. Ltd, net investment income relative to the dividend over time.
Those factors combined with strong portfolio performance, the recall of it or 22 cents spillover of let us to conclude that we will be keeping our dividend study at this point.
Although we never predict of the global pandemic as you May know, we have been preparing for an eventual recession for some time price.
Prior to the COVID-19 crisis, we proactively position of the portfolio is defensively as possible. So.
Since the inception, we've had a portfolio that was among the lowest risk and the direct lending industry.
As of September Thirtyth average debt to EBITDA on the portfolio was 4.2 times and average interest coverage ratio the amount by which cash interest exceed the cash interest expense was 2.9 times. This provides significant cushion to support stable investment income the.
The statistics are among the most conservative in our industry.
We have only three non accruals out of the water five different names on P.F.L.T.I.P.S.S.L. This.
This represents the only 2.1% of the portfolio a cost of 1.8% at market value.
The largely avoided some of the sectors that have been hurt the most by the pandemic such as retail restaurants health clubs apparel on airlines. The FLT also has no exposure to oil and gas.
The portfolio is highly diversified with one or two companies and 44 different industries.
Our credit quality since inception over nine years ago, it's been excellent out of the.
382 companies in which we had invested since inception, we have only experience of 12 non accruals.
Since the inception, Pflp has invested over $3.7 billion.
Average yield of 8.1%.
This compares to an annualized the realized loss ratio of only 10 basis points annually.
If we include both for both realized and unrealized losses, the annualized loss ratio is the only 19 basis points annually.
We are one of the a few of middle market direct lenders, who is on business parts of the global financial crisis kind of a strong underwriting track record during that time although.
Although P.F.L.P. it was not in existence back then pennantpark as an organization was investing at that time.
The that recession, the weighted average EBITDA of our underlying portfolio of companies declined by 7.2% at the bottom of the recession.
This compares to the average EBITDA decline of the Bloomberg North America high yield the index of the I'm, 42%.
We are proud of this downside cat case track record and the prior recession.
Based on tracking EBITDA of our underlying companies through <unk>, but so far we believe that our EBITDA decline will be substantially less than it was the only in the global financial crisis.
Now, let's turn to the I look ahead of the coming quarters and how our portfolio is positioned as.
As mentioned previously we're gratified that hurt our historical investment focus has protected us from for some of the worst in areas of the economy, such as retail restaurants health clubs apparel Airlines of energy.
We've been pleased with the way our portfolio of companies have moved to rapidly adjust cost kind of focused the on shoring up liquidity.
Looking forward to the quarter ended December Thirtyth Mb on where things stand today. Our analysis suggests that the vast majority of the companies in our portfolio aren't a strong position to perform well in the coming quarters.
Many of our portfolio companies aren't businesses, such as government services healthcare software communications on cyber security, which collectively comprise a substantial portion of our portfolio and are less impacted by co of it.
Additionally, alongside the debt investments, we make in many companies we invest in the equity usually has a co investor with the financial sponsor.
The returns on these equity co investments have been excellent overtime.
Overall for our platform from inception through September Thirtyth on.
$209 million of equity called the S. have generated IR of 25.3% and the multiple on invested capital of 2.3 times.
We believe that we are experiencing acacia for recovery with some companies from the industry is being large beneficiaries of the environment.
We are pleased that we have attractive debt and significant equity investments and three of these companies, which can substantially move the needle on both and Navy and overtime and net investment income.
Like the highlight those three companies the three companies are cantel Walker Edison and by like.
[noise] kind of health is the national leader on primary health care, who is the leading who is leading the way in transforming healthcare to provide high quality care at a reasonable cost to a large population.
Our equity position has the cost of fair market value on September Thirtyth of 766000, and 2.3 million respectively.
Kind of always been experiencing rapid growth with revenue revenues Quinn toppling and EBITDA more than tripling over the last three years we.
We believe there is a massive market opportunity for cash flow to grow in the years ahead with the Medicare advantage program.
Based on the recently announced transaction with jaws acquisition, and we're just trading that position would be valued at approximately $9 million.
About 12% of that value is in cash that will we will receive before and I consummation of the deal in early 2021, and the rest is in shares of jaws acquisition.
Our shares are locked up in the limited partnership controlled by the financial sponsor and will likely be valued by the independent valuation firm at a discount to the trading value.
Walker Edison is the leading ecommerce platform focused on selling furniture exclusively online through top ecommerce companies since.
Since our investment was made in 2018 sales have more than tripled and EBITDA is up almost four times, our position as the cost of $1.4 million and the fair market value of $8.7 million as of September Thirtyth.
Finally, as the leading software hardware and engineering solutions company focused on national security challenges across modeling and simulation cyber on global defense networks.
Since our initial investment was made nearly four years ago sales have gone up 1.5 times EBITDA is more than doubled.
Our position as the cost of $2.2 million and the fair market value of $7.6 million as of September Thirtyth.
All three of these companies are gaining financial momentum in this environment and.
And on any of you should be solidified the bolstered from the substantial equity investments as their momentum continues over time, we would expect the actually these positions and rotate those proceeds into debt instruments to increase income at P.S. Ltd.
As we discussed earlier, our securitization financing has performed well during coverage. We think this type of financing is well matched to our lower risk assets.
As a result, we are exploring using the same type of financing of P. SSL to help grow and efficiently finance the vehicle.
We would hope that doing so would increase anti of Pflp.
With regard to our gaming portfolio. It is proving to be extremely resilient and continues to perform well.
The repayment of Peninsula Pacific Colonial Dallas, the since quarter end, our gaming exposure is now 4.2% of our portfolio down from 5.1% as of September Thirtyth.
We actually the peninsula Pacific Colonial downs, with an 11% higher or.
Our regional properties, such as fantasy Springs in Kentucky balance have experienced strong performance since reopening after periods of closure to the code. We expect the strong performance to continue.
The outlook for new financing is attractive we believe the middle market lending is the vintage business. This upcoming vintage of loans that are likely to be the most attractive we've seen since the 2009 to 2012 time period.
Average levels are lower equity cushion is higher yields are higher and the package of protections, including covenants are tighter after.
After and only about five years of late cycle of market for middle market lending, it's refreshing to have an attractive risk reward available to us. Let me now turn the call over two of each of our CFO to take us through the financial results in more detail.
Thank you art.
For the quarter ended September 30, net net investment income was 27 cents per share.
Looking at some of the expense categories management fees total of about $4.8 million.
The general and administrative expenses totaled about $1.1 million and interest expense of about $5.5 million.
During the quarter ended September 30, net net unrealized appreciation on investments what about $20 million for 51 cents per share.
Net realized losses on what about $4.7 million or 12 cents per share.
Net unrealized depreciation on our credit facility and notes was 22 cents per share.
Net investment income was lower than the dividend by two cents per share.
Consequently.
GAAP EPS, maybe went from $12 the 16 cents.
$12 of 31 cents per share.
Adjusted the Navy, excluding the mark to market of our liabilities was $11.81 per share up for you.
Thank you for sand from $11.44 per share last quarter.
Our entire portfolio our credit facility of notes are mark to market by our board of directors each quarter using the exit price provided by an independent restaurants on exchanges or independent book a dealer quotations when active markets are available under the 820 and.
The 25.
Okay says where book of dealer quotes are inactive we use independent valuation firms to value the investments.
Oh for steel Oliver as on September Thirtyth was 22 cents per share.
We have ample liquidity and on prudently levered.
Our GAAP debt to equity ratio was 1.4 times down from 1.5 times last for.
While GAAP net debt to equity after subtracting the cash was the 1.2 of dies down from 1.3 types of last quarter.
Regulatory the debt to equity ratio was the 1.5 times down from 1.6 times last quarter and.
Our regulatory net debt to equity ratio of <unk>.
Tracking cash was 1.4 times down from 1.5 times last quarter.
With regard to our leverage we have the targeting on debt to equity ratio of 1.4 to 1.75.
Our net of cash regulatory asset coverage ratio of 1.4 times was at the low end of our range this past quarter.
This was primarily due to pay downs from blowers selected asset sales and the increase in the mark to market of our portfolio.
We have ample of liquidity to fund we've all the dogs and we're in compliance with all of our facilities and its all September thirtyth.
We have readily available borrowing capacity of cash liquidity to support our commitments.
We're looking to carefully manage our leverage over time.
We expect to stay in compliance with both we're going to flow requirements and calling in for under our credit facilities.
Well the strong capital structure with diversified funding sources and no near term maturities.
Yeah, the 520 million revolving credit facility maturing of 20 to 23 with a syndicate on the other than banks.
With the 300 of 9 million for as of September 30.
On June 39 billion of unsecured senior notes maturing in 2023.
And $228 million of asset backed debt associated with that of pork CLL one.
Do you 2031.
We have been in the system dialogue with our lenders and all the thankful for their support.
Our portfolio remains highly diversified with 100 on two companies across the 40 for different industries.
Hey, good like the site is Investor day in first lien senior secured debt, including the 11% in the SFL.
40% in the second lien debt.
And the 8% in equity, including 4% CPFL.
Our overall debt portfolio.
Our weighted average yield of 7.3%.
No you're not for sale of that folder is floating rate and 86% of the portfolio has a LIBOR floor the.
The average like the floor is one of course that no.
Now, let me turn the call back to on.
Thanks of Eve.
The include we want to reiterate our mission our goal is the steady stable.
Protected dividend stream, coupled with the preservation of capital.
Everything we do is aligned to that goal, we try to find less risky middle market companies that of.
Hi, free cash flow conversion, we capture that free cash flow primarily in the first lien senior secured instruments and we pay out those contractual cash flows in the form of dividends to our shareholders.
In closing I'd like to thank our extremely talented team of professionals for their commitment and dedication.
Thank you all for your time today and for your investment and confidence in US that concludes our remarks at this time I would like to open up the call for questions.
Thank you.
If you would like to ask a question. Please take note that price system on chip.
The bag.
The speakers loans taken <unk> debt.
John I just want to the show.
Again, I just wanted to ask a question.
Well I guess this question from Paul Johnson KBW.
Hey, good morning, guys. Thanks for taking my questions. Congratulations on the female health acquisition of its obviously very.
The positive news yesterday, but I.
Just kind of a a few questions here today.
The over the last few quarters no investments of obviously did a fairly new investments originations have been fairly muted the understandably so.
I'm just kind of curious so now that you're back sort of within the leverage range target what is sort of the your outlook for a new investments going forward on.
Can we expect to see on maybe more active origination and then also on that for any sort of new investments that you are looking at today, what what is the environment that you're seeing are you still able to extract the same sort of covenants that you were in terms that you were.
For a pet that diminished, but any commentary on that would be very helpful.
Perfect. Thanks, Thanks, Paul Yeah, we for the last couple of course, we then evaluate the the economy on our portfolio and we are indeed back actively originating deals for both P.S. Ltd MPS myself.
We also are getting repayments of course as part of the bad side. The wheels of Commerce are are starting to move again.
And yeah, we're out there actively looking and doing deals.
So yeah.
Yeah, the target leverage is still kind of in the one and a half times zone.
One debt to equity.
As as as we as we say we think our portfolio.
He is among the lowest risk in the industry you can see it in the yields.
Oh, you know kind of that first lien typically is a lower yielding first lien maybe more of a classic first lien and then some of the others, which means we believe that we can comfortably you know the and that one of the half times, the leverage zone and feel very safe and feel like it's prudently cash.
Capitalized on judicious in terms of the debt to equity ratio because the risk for taking.
This is lower.
The most tenants volume lower other than the industry.
In terms of you know kind of the did the the rest for water. We're seeing again remember and other definition of thing we tend to focus on companies with between 15 and 50 of the EBITDA.
The average you know EBITDA of $20 million to $30 million in this portfolio, we like staying away from defray of the ball the syndicated loan market.
Which has bounced back very dramatically, where it's all covenant light where yields are low for EBITDA adjustments are on the back end weighted average is high and yes. Some of the big of rather on who I have to write bigger checks and the bigger companies are competing against the broadly syndicated loan market accepting of.
Our GAAP when it's a lower lower yields more EBITDA adjustments et cetera with us well.
We we always got covenants, even create kind of the we've gotten tighter covenants now on again for your EBITDA adjusted EBITDA adjustments, if we accept them or you know thoroughly diligence, we're seeing more equity from our sponsors.
We're seeing more yield so the whole package of risk adjusted returns that were seeing today versus free television ads is better and much better which is why we say we like this vintage.
We think this vintage over the next year to worst rate, where we play in the middle market.
As a is the we think it's it could be similar to 2009 to 2012.
Don't think it's going to be as good as 2000, the night, where the average you got to EBITDA was 3.3 times.
This is our central bank in end of the fiscal authorities made sure that we weren't going to repeat that 2009 again, but we think that this upcoming vintage will look a lot of like 2009 to 2012. So we're excited about the you know what we're saying.
And.
Good day.
Yeah. That's good that's very good to hear.
Do you ever see a time, where obviously you guys had built the very you know no high quality.
Sure. The you know you said traditional first lien portfolio, but in that environment that you sort of describe.
Do you see any opportunity or do you have any thoughts around potentially getting slightly more aggressive to enhance sort of that the portfolio yield the topline return talking about potentially doing maybe slightly more aggressive deals or more second lien.
You have any thoughts on that.
Yeah look I think we're going to stay away from second lien in this portfolio and I think we're going to be cautious about you know stretch your senior yeah for us as you can see P.F. Ltd itself.
We would prefer to have a lower risk reward portfolio and maybe have a leverage a little bit I of on one of the financing some of our somebody blather on so I think that's the way we think about every once in a while of course, well well well. If we think we have a real angle the real edge special situation.
Well, we we may do a little bit more of a stretch senior from time to time or unit tranche I think we're going to specifically stay away from secondly, the matching this particular portfolio.
Okay.
And then on the JV I think.
I think the quarter over quarter I think you guys have been taking the leverage down on actually for the past few quarters in the inside of the JV I noticed that the return this quarter at least what was paid out to the BTC was relatively stable from last quarter, maybe of slightly is that kind of the return that we can expect going forward in terms of.
You know where the leverage is out of the JV and what the return it's the spitting out or do you guys have any other plans as far as the JV goes.
Yes. So he had on not highlighted just tried to highlight this in the script. So let me let me be clear we again same thing with the Ltd. The last.
The number of course, we've been you know wanting to see how the economy did wanted to see on how our portfolio did.
One of the nice things out of all of this is that our securitization sale of financing of P.F.L.T. has been has been terrific expand on great way the finance these lower risk.
Assets and we're going to explore other P.S.L. using the same type of financing.
Moving to explore a growing P.S. itself.
From where this debt for the mine to add.
Something like $550 million, maybe $600 million of total portfolio utilizing and of the securitization style financing that that the that worked so well for US couple of <unk> Ltd. So you know.
The terms of.
Hi, I growth at Pflp itself NFP EPS, that's how we would hope that you know growing the portfolio when using securitization financing can be the part of that.
Gotcha.
And then finally I'm just I'm actually very curious is our I don't know if you have any commentary around the stock market. Obviously, that's you know because of very popular this year, it's grown significantly.
You see that as a potential meaningful driver of you know more middle market acquisitions, such as you know health.
For.
You know, it's just more of the being.
Being I guess in the middle market, maybe not as.
As a highly price of that acquisition for like Us back company, but yeah, any any sort of.
Thoughts you have on that acquisition and it could potentially be.
The drivers for exits in the portfolio.
Yeah well.
Well look I mean, I think I like the <unk>.
Yeah, I'd be all of the.
The pack market isn't it's really just another form of an IPO.
And the stocks ipos the two wells.
The what about on well anyway, or the specs Rodriguez of what they've done well wouldn't have done. It also in the case of capital it's been such a high growth business and the addressable market for what they do is so enormous.
An IPO of some sort in the made a lot of sense for for the company because of its growth trajectory on its a the white space that that it has out there so and there's also a comparable out there that Oak Street health, What's your take rate company trades.
Traded on 11 or $12 billion market cap.
And if you line up capital against Oak Street, and you, let the revenues the EBITDA member's medical loss ratio kind of lines up very favorably.
Two luxury health, which is a terrific company. So you know it's quite possible that capital could you know overtime trade in line, you know anything better than Oak Street health. So you know the top that makes you know rate you know we're not experts of IPO as you guys may be more experts, but it seems like it's an attractive deal from the GAAP called but as importantly for maybe.
More importantly, as GAAP, there's a lot of on way on the upside for cat of both in its markets as well as wells, where it trades questions its comps.
Great and actually one more if I may add the but it may have mentioned of this in your prepared remarks, but I didnt, possibly catch it do you know the percentage of your portfolio that has like workforce.
Yes on wasn't off the pairs of the most of the sea water. It's a it's a.
90, 90 day, 80% to 86% of has all both long, 86% credit is correct or.
That's one of the preferred for remarks, yet a lot of.
The floor is 1% of but about 86 yet.
That's the thanks for that that's a that's all for me.
Thank you.
We'll take the next question from Mickey Schleien net either.
Oh, good morning art than of the but I just wanted to follow up quickly on the senior loan fund I calculate a blended of ROI of taking into account the equity on the.
Debt investments of little North of 9% are you satisfied with that level of return or are you looking for you know something higher than the more leverage on that balance sheet.
Yeah. So it's a great question Mickey obviously over the last few quarters, we've specifically want it again the.
See our portfolio did see out of the economy wise.
Which is why we are looking to you know grow P.S. I'll back up again to work flow to a a to a larger entity and using the securitization financing potentially to the financing. So I think over time or kind of target in on it.
11, 12% on on that vehicle the.
For the blended sort of ROI.
Moving on on the and on the two piece of paper yes.
Okay and could you be a little.
For specific about the damages of the securitization versus the credit facility and that's fun because you.
You know I'm no expert like you guys on it but I'm curious what what what are the features the that attracted to that.
You know, it's just a it's just a very efficient its low cost and it's it's kind of permanent financing its on permanent permanent but its long term financing.
And there is the box you know and there's no individuals you need to talk to there's no credit guys, who may have of Sleepless night.
For two it's just the box and it's good for comfortable and our underwriting which we are.
Well, we like that box you know for for what we're what we're doing in this portfolio. The level of this global award. The deals you know as we looked at you know kind of the amount of Triple C. Sam We got through this time period of very low.
The value I think if you looked at the equity return on that the out ran at the the the CLL in this case the equities on by Pflp, I think that something like a 20% return on the equity.
Because of the strength of the underwriting and the other line box, so, but that's a very solid number relative to what I'm seeing elsewhere.
Yeah, you know the.
For the Triple C. Basket, you know kind of you have up to 17 and ask for saying the middle market. I think you know were like 8% you know something like that so its the you.
You know for us because they're underwriting works its a very good luck.
So our debt.
Like the paraphrase.
Are you, suggesting that its just perhaps the easier.
Piece of capital to manage from your perspective.
It's it's the one that's part of an overall mix and as we look at P. S. At all.
Lets the grew up he has to sell it could be part of the other all makes the P. S L and the Pflp along with the credit facilities and along with the bonds. Occasionally so we believe in diversified financing tolls were just saying kind of how we are kind of the eight or nine months in the car of the.
And we get our COO of what P.S. Ltd, I guess last September.
And then kind of what you did in March.
It's it's performed very very well, so we're taking that as the data points and that's really interesting for us maybe we should use that technology of our PSS out.
I understand and just in terms of the mechanics.
I.
I I haven't done the math, but I imagine most of the of the senior loan fund assets or in the borrowing base for the credit facility right. So how do you extract those assets and form the sea alone and what does the timing of all of that.
Yeah. That's a great question, we're starting to explore now you have done out of the farm answer, but obviously the banks are involved the p. SSL you know our partners on whether it be talking to them about partnering on.
And you know kind of growing P.S.L., including the securitization, including the new you know.
And revised credit facility. So all of this is in play on it's a it's something over the next quarter or two we're going to hopefully the.
The hopefully find on us okay.
Okay. So it sounds like it's sort of mid next year of sort of timing to put it all together.
I'm, hoping or layer, but that's fine for your expectations for the same mid next year.
We have the shot of being better.
And just a couple of sort of more housekeeping questions or your cash of on your balance sheet of built up is that to make the the principal payment on the.
See a low notes or do the excellent.
We have a a we have an amortization payment on the Israeli bonds in cash coming up in the next month.
So all of that's like that the tweets that the seal of okay. So that's the have you paid out of cash.
Yeah.
Okay, and if I'm not mistaken last quarter, you said average EBITDA of the portfolio was 35 to 40 and I think you just said 20 to 30. This quarter you know maybe my previous numbers wrong, but.
Where's the ballpark for the portfolios out there the where are your <unk> Mickey we're being that piece now that the is the mean the need is what I. What I gave you the last quarter and that 35 to 40. The median is more like 25.
Okay. That's helpful. That's it for me. This morning. Thank you for your time.
Thank you.
Once again, if you would like the question. Please press star one.
We get the next question is from didn't Ryan the GMP Securities.
[noise] agreed company of on.
Hi, Devin.
You work on.
Cash and grass, but maybe just ask one year on on non accruals the credit and just curious yeah.
Yes, I think about the broader portfolio, except we have.
The other shutdown your.
The related disruption and also if you could just moving some context on the first lien loans to the marketplace of parents on though a little bit of pressure there in the quarter of just whether there's been any dialogue with the sponsor on whether they maybe adding more support.
Yes, so thank.
Thank you. Thanks. The thank you did a nice to meet you I look forward to spend the time of year as you take on the BDC industry. So welcome to the industry absolutely. So marketplace events is finalizing its restructuring as we speak so hopefully by next quarter I'm pretty sure by next quarter of that restructuring.
Won't be done and that will move off the non accrual and that particular named the the lenders are going to be taking control of the of the company.
Injecting the you know capital to be able to get the company through to the other side and that's.
That's inevitably start coming back sort of like it sort of bad as clear as much of today is the one of them start coming back but events will come back and we think that's a really great company in the space anymore.
Actually happy to make that that equity investment in marketplace events P.L.A. is an advantage of planning company again events related.
That is a and and all restructuring talks right now as we speak again that probably comes off non coal next quarter of Soc the sponsors injecting equity.
And now on to two on itself that company. So.
Those are the that's true for the three non of coals.
[music].
Yeah. So of both of them are kind of in the event space.
In terms of all of its picked the we think it's going to be relatively light of course, there's going to be non accruals from time to time, you know that it's this portfolio, but we don't think there's anything particularly abnormal you know we think that the cope with the impacts to the extent there were had been identified have I have been on or being dealt with.
And and you know all are kind of already baked into the baked into the pie here.
Yep.
Okay terrific I will lead the bare my other question for us, but thank you and record of <unk>.
Thanks Devin.
It appears there are no further questions at this time to debt.
I'd like to turn the call back to you for any closing remarks.
[noise] I just want to thank everybody for being on the call. The day, we appreciate it and we want to get up because we had of late reporting period, a this quarter.
It's certainly a only relatively short time its all early February long at our next call. The shopper. So looking forward to watch the speaking everybody then thank you very much.
This concludes today's call. Thank you for you at the <unk> patients you may now disconnect.
Hmm.
[music].