Q1 2025 Chicago Atlantic BDC Inc Earnings Call
Good day and welcome to the Chicago every BDC first quarter 2025 earnings conference call.
Operator: Good day and welcome to the Chicago Atlantic BDC first quarter 2025 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please call the conference specialist by pressing the star key followed by zero.
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Operator: After today's presentation, there will be an opportunity to ask questions. To ask a question, you want to press star 1 on your telephone keypad. And to withdraw your question, please press star 2. Please note, today's event is being recorded.
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Tripp Sullivan: I'd now like to turn the conference over to Tripp Sullivan with U.S. Relations. Please go ahead. Thank you. Good morning.
Speaker Change: I'd now like to turn the conference over to Tripp Sullivan with Investor Relations. Please go ahead.
Tripp Sullivan: Thank you good morning, welcome to the Chicago, Atlanta, BDC Conference call to review the company's results on the call today will be Peter Sachse, Chief Executive Officer, Mark and Rogers, Chief Financial Officer, and Dino Colonna President.
Peter Sack: Welcome to the Chicago Atlantic BDC conference call to review the company's results.
Tripp Sullivan: On the call today will be Peter Sack, Chief Executive Officer, Martin Rogers, Chief Financial Officer, and Dino Colonna, President. Our results were released this morning in our earnings press release, which can be found in the Investor Relations section of our website, along with our Supplemental Earnings presentation, followed with the SEC. A live audio webcast of this call is being made available today.
Tripp Sullivan: Our results were released this morning in our earnings press release, which can be found in the Investor Relations section of our website along with our supplemental earnings presentation filed with the SEC.
Tripp Sullivan: A live audio webcast of this call is being made available today.
Tripp Sullivan: For those who listened to the replay of this webcast, we remind you that the remarks made herein are as of today and will not be updated subsequent to this call. Before we begin, I'd like to remind you that certain statements that are not based on historical facts made during this call, including any statements related to financial guidance, may be deemed forward-looking statements under federal securities laws because these forward-looking statements involve known and unknown risks and uncertainties that are important factors that could cause actual results to differ materially from those expressed or implied by these forward-looking statements.
Tripp Sullivan: Those who listen to the replay of this webcast. We remind you that the remarks made herein are as of today and will not be updated subsequent to this call.
Tripp Sullivan: Before we begin I'd like to remind you that certain statements that are not based on historical facts made during this call, including any statements related to financial guidance.
Tripp Sullivan: To be deemed forward looking statements under federal Securities laws. Because these forward looking statements involve known and unknown risks and uncertainties that are important factors that could cause actual results to differ materially from those expressed or implied by these forward looking statements.
Tripp Sullivan: We encourage you to refer to our most recent SEC filings for information on some of these factors. Congress Atlantic BDC assumes no obligation or responsibility to update any forward-looking statement.
Tripp Sullivan: We encourage you to refer to our most recent SEC filings for information on some of these factors.
Speaker Change: Atlantic BDC assumes no obligation or responsibility to update any forward looking statements.
Tripp Sullivan: Please note that the information reported on this call speaks only as of today, May 14th, 2025. Therefore, you are advised that time-sensitive information may no longer be accurate at the time of any replay or transcript reading.
Speaker Change: Please note that the information reported on this call speaks only as of today may 14th 2025, and therefore, you're advised that time sensitive information may no longer be accurate at the time of any replay or transcript reading.
Peter Sack: I'll now turn the call over to Peter Sack. Please go ahead. Thanks, Tripp. Good morning, everyone. It's been six weeks since our fourth quarter call, and I'm more convinced that we've created a tremendous investment vehicle at Chicago Atlantic BDC. We're uniquely positioned among BDCs as the only such vehicle focused on and able to lend to cannabis companies, together with sub-strategies targeted in markets where the more traditional lenders don't provide capital. This distinctive focus allows us to deploy capital with differentiated risk-reward. And I would like to highlight our relative strength. Our weighted average yield on debt investments as of March 31st was 16.6%, compared with the BDC average of 12.1%, according to recent BDC research from Leidenberg-Thomlin.
Speaker Change: Now I'll turn the call over to Peter. Please go ahead. Thanks chip good morning, everyone.
Peter: Been six weeks since our fourth quarter call and I'm more convinced that we've created a tremendous investment vehicle with Chicago Atlanta BDC.
Peter: We are uniquely positioned among bdcs is the only such vehicle focused on and able to lend to cannabis companies together with sub strategies targeted in markets, where the more traditional lenders don't provide capital.
Peter: This distinctive focus allows us to deploy capital with differentiated risk reward.
Peter: I would like to highlight our relative strength.
Peter: Our weighted average yield on debt investments as of March 31 was 16, 6% compared with the BDC average of 12, 1%. According to recent PDC research from Ladenburg Thalmann.
Peter: All of our debt investments are senior secured compared with other bdcs, who have an average of 19% exposure to second lien subordinated debt or equity.
Peter Sack: All of our debt investments are senior secured compared with other BDCs who have an average of 19% exposure to second-lane subordinated debt or equity. The weighted average secured net leverage of our portfolio companies is 1.4x. and interest coverage ratio of 3.4x. The portfolio is entirely unlevered compared with the BDC average of 1.1x. Assuming full utilization of our $100 million credit facility during the year, we will still be well below industry averages. We have no non-accruals compared with an industry average of 3.9%. Since October 1st, 2024, we originated $52.8 million in gross funding. In Q1 2025, we committed $32.3 million.
Peter: The weighted average secured net leverage of our portfolio companies, there's one forex.
Peter: And interest coverage ratio of three point Forex.
Peter: The portfolio was entirely unlevered compared with the BDC average of one onex.
Peter: Assuming full utilization of our $100 million credit facility during the year, we will still be well below industry averages.
We have no non accruals compared with an industry average of three 9%.
Peter: Since October one 2024, we originated $52 8 million and gross fundings.
Peter: In Q1, 2025, we committed $32 3 million.
Peter: 8 million.
Peter Sack: 8.8 million. The total amount of originations was in line with what we expected for the first quarter, but the back-end timing limited the impact on our gross investment income. I expect that we will continue to ramp deployment with focus on proven operators, strong markets, diversity of cash flow, low leverage, high amortization, and robust collateral coverage.
Peter: The total amount of originations was in line with what we expected for the first quarter.
Peter: But the backend timing limited the impact on our gross investment income.
Peter: I expect it will continue to ramp deployment with focus on proven operators strong markets diversity of cash flow low leverage high amortization and robust collateral coverage.
Today, we announced a <unk> 34 dividend, marking the third consecutive quarter at that rate.
Peter Sack: Today, we announced a $0.34 dividend, marking the third consecutive quarter at that rate. For the last four quarters, we have now declared a total of $1.27 in dividends. Our intent is to grow this component of our return to our shareholders as we continue to scale the platform. Our hope is that with more settled equity in credit markets, certainly with less volatility than we've experienced since early April, our total returns to shareholders will increase as well. Since our last reporting, the expectation for federal regulatory changes remains relatively unchanged. While the outlook for common sense reform, such as rescheduling, is positive, the timing is unpredictable, and we continue to underwrite our investments based on our borrower's cash flow and collateral profiles in the current environment.
Peter: For the last four quarters, we have now declared a total of $1 27 sites of dividends.
Peter: Our intent is to grow this component of our return to our shareholders as we continue to scale the platform.
Peter: Our hope is that with more settled equity and credit markets certainly with less volatility than we've experienced since early April our total returns to shareholders will increase as well.
Peter: Since our last reporting your expectation for federal regulatory changes remains relatively unchanged.
Peter: While the outlook for common sense reforms, such as rescheduling is positive.
Peter: <unk> is unpredictable and we continue to underwrite our investments based on our borrowers cash flow and collateral profiles in the current environment.
Amid industry uncertainty, we believe Chicago Atlantic is a constant at borrowers and investors can count on.
Peter Sack: Amid industry uncertainty, we believe Chicago Atlantic is a constant that borrowers and investors can count on. We deploy capital with consumer and product focused operators in limited license jurisdictions at low leverage profiles to support fundamentally sound growth initiatives. Operating in a niche strategy with limited competition, we both generate yields above our BDC peers and can better manage risk. This focus positions us well for 2025, and I look forward to presenting our growth in the quarters to come.
Peter: We deploy capital with consumer and product focused operators in limited license jurisdictions at low leverage profiles to support fundamentally sound growth initiatives.
Peter: Operating in a niche strategy with limited competition.
Peter: Both that generate yields above our BDC peers and can better manage risk.
Peter: This focus positions us well for 2025, and I look forward to presenting our growth in the quarters to come.
Martin Rogers: Martin, why don't you take it from here? Good morning. Thanks, Peter.
Peter: Martin.
Peter: Yes.
Peter: Good morning, Thanks, Peter.
Martin Rogers: Before I start my brief comments, I want to highlight our investor presentation that we filed this morning that serves as our earnings supplement. Turning to our highlights for the first quarter. Gross investment income for this quarter was $11.9 million compared to $12.7 million in the fourth quarter last year. Net expenses were $4.3 million, which reflects a waiver of the G&A expense reimbursement to the manager. This is compared to net expenses of $4.4 million last quarter, which is net of loan portfolio acquisition expenses. Net investment income was $7.6 million, or $0.34 per share, compared to $8 million, or $0.35 per share last quarter.
Peter: Before I start my brief comments I want to highlight to our investor presentation that we filed this morning.
Peter: And then supplement.
Peter: Turning to our highlights for the first quarter.
Peter: Investment income for this quarter was $11 $9 million.
Peter: We have to $12 7 million in the fourth quarter last year.
Peter: Net expenses were $4 $3 million.
Peter: Next a waiver of the G&A expense reimbursement to the manager.
Peter: This is compared to net expenses of $4 $4 million last quarter.
Peter: Net of loan portfolio acquisition expenses.
Peter: Net investment income was $7 $6 million 34 per share compared to $8 million 35 per share last quarter.
Peter: Net assets for $301 million, a quarter and enough per share was $13 19.
Martin Rogers: Net assets were $301 million at quarter end and NAV per share was $13.19. As of quarter end, there were 22.8 million common shares issued and outstanding on a basic and fully diluted basis.
Peter: As of quarter end, there were $22 8 million common shares issued and outstanding.
Fully diluted basis.
Peter: As we look to the investment portfolio I'd like to highlight the strength and diversification also invest.
Martin Rogers: As we look to the investment portfolio, I'd like to highlight the strength and diversification of our investment portfolio. We have 31 portfolio companies, 21% of our portfolio is invested outside of cannabis across multiple sectors. Our average debt position size is 3% of our debt portfolio. 76% of the portfolio is floating rate and 99% of these loans have a rate floor which shields us from declining interest. The gross weighted average yield of company debt investments is approximately 16.6%. None of our lawns are on non-accrual status. At the BDC level, we have no debt as of quarter end as we deploy cash from the balance sheet to fund new investments.
Peter: We are studying one portfolio of companies.
Peter: 21% of book Folio is invest outside of Canada across multiple sectors.
Peter: Average debt position size the percent although their portfolio.
Peter: 76%.
Peter: Oil is floating rate.
Peter: 99% of these loans have a rate floor shields us from declining interest rates.
Peter: The gross weighted average yield of the company's debt balance is approximately 16, 6%.
Peter: None of our loans are on non accrual status.
Peter: At the BDC level, we have no debt as of quarter as we deploy cash from the balance sheet to fund new investments.
Peter: As noted in our press release, we closed on the new $100 million credit facility during the quarter, providing ample liquidity to execute on our pipeline.
Martin Rogers: As noted in our press release, we closed on the new $100 million credit facility during the quarter, providing ample liquidity to execute on our pipeline. We are currently under-levered compared with other BDCs. As we draw down on the credit facility, we expect leverage to increase slightly.
Peter: Currently under Levered compared with other Bdcs.
Peter: As we draw down on the credit facility, we expect leverage to increase slightly.
Dino Colonna: I will now turn it over to Dino to talk about our origination effort. Thanks, Martin. We committed approximately $32.3 million in new debt investments in the first quarter and funded approximately $20.8 million of that total. All these investments were new borrowers to the BDC. As it relates to the pace of investments in the quarter, January was slower, which is typically the case. The pace picked up meaningfully into February, with most of these investments completed in March. During the quarter, we also had loan repayments and amortization totaling approximately $7.7 million. To date, in the second quarter, we funded $7.2 million to four borrowers, of which $5 million was to a new portfolio company, and the remaining to three existing borrowers.
Peter: I will now turn it over to Dino talk about auto origination efforts.
Dino: Thanks Martin.
Dino: We committed approximately $32 3 million in new debt in the first quarter and funded approximately $28 million of that total.
Dino: All of these investments were new borrowers to the BDC.
Dino: As it relates to the pace of investments in the quarter January was slower which is typically the case the pace picked up meaningfully into February with most of these investments completed in March.
Dino: During the quarter, we also had loan repayments and amortization totaling approximately $77 million.
Dino: To date in the second quarter, we funded $7 2 million to four borrowers of which $5 million to a new portfolio company and the remaining to three existing borrowers.
Dino Colonna: Total unfunded commitments were approximately $12.8 million.
Dino: Total unfunded commitments were approximately $12 8 million.
Dino: The pipeline across the Chicago Lake platform as of quarter end, which includes cannabis in non cat and risk opportunities totaled approximately $590 million in potential debt transactions across 35 unique companies the.
Dino Colonna: The pipeline across the Chicago Atlantic platform has a quarter end, which includes cannabis and non-cannabis opportunities, total approximately $590 million in potential debt transactions across 35 unique companies. The breakdown of the opportunity set includes approximately $462 million in cannabis opportunities and approximately $128 million in non-cannabis investment opportunities. Talk of tariffs that rattled the broader capital markets in March and early April have started to stabilize, and we have seen a recent pickup in potential opportunities at the top of the originations funnel in both cannabis and non-cannabis, which should translate to more completed investments over the coming months.
Dino: The breakdown of the opportunity set includes approximately $462 million in cannabis opportunity.
Dino: Approximately $128 million in Noncancerous investment opportunities.
Dino: HOKA tariffs that rattled the broader capital markets in March and early April it started to stabilize and we have seen a recent pickup potential opportunities at the top of the origination funnel, both candidates and non cannabis, which should translate to more complete investments over the coming months.
Dino: Speaking of tariffs, we believe there'll be limited direct impact on the overall portfolio.
Dino Colonna: Speaking of tariffs, we believe there will be limited direct impact on the overall portfolio. As is normally the case, we stay close to all of our portfolio companies, typically receiving financial and performance updates from the vast majority of borrowers on a monthly basis, which certainly helps in times like these. For new potential loans in the pipeline, we are also spending additional time with companies understanding the potential direct and indirect impacts of tariffs. As Peter noted earlier, we are unique in being able to invest in both cannabis and other industries in the lower middle market that are underserved by traditional lenders.
Dino: Normally the case, we stay close to all of our portfolio companies typically receiving financial and performance updates from the vast majority of borrowers on a monthly basis, which certainly helps in times like these.
Dino: Our new potential loans in the pipeline. We are also spending additional time with companies understanding the potential direct and indirect impacts of tariffs.
Dino: As Peter noted earlier, we are unique in being able to invest in both cannabis and other industries in the lower middle market that are underserved by traditional lenders we.
Dino Colonna: We are not seeing much competition in either strategy as the Chicago Atlantic platform continues to be the dominant originator in the cannabis space and is starting to develop a leading brand in non-cannabis direct lending as well. Both the cannabis and non-cannabis verticals are seeing strong demand for debt capital from a multitude of borrowers with experienced management teams, strong growth outlooks, and leading positions in their respective industries. We have, and will continue to be very disciplined in our underwriting approach and extremely selective with our borrowers, which we believe will reap longer-term benefits for our shareholders. We pride ourselves on building durable investment portfolios, regardless of sector-specific trends or broader macro conditions, and we'll continue to leverage Chicago Atlantic's track record and experience in methodically deploying capital and delivering differentiated credit alpha to our shareholders.
Dino: We are not seeing much competition in either strategy. It's a Chicago Atlanta platform continues to be the dominant originator in the cannabis space and its starting to develop a leading brand in noncancerous direct lending as well.
Dino: Both the candidates in Noncancerous verticals are seeing strong demand for debt capital from a multitude of borrowers with experienced management teams strong growth outlooks and leading positions in their respective industries.
Dino: We have and will continue to be very disciplined underwriting approach and extremely selective with our borrowers, which we believe will reap longer term benefits for our shareholders.
We pride ourselves on building durable investment portfolios, regardless of sector specific trends or broader macro conditions and will continue to leverage Chicago Atlantic's track record and experience and methodically deploying capital into.
Living differentiated credit alpha to our shareholders.
Dino: We look forward to reporting additional progress as we work to deploy the ample liquidity on the balance sheet operator, we're now ready for questions.
Dino Colonna: We look forward to reporting additional progress as we work to deploy the ample liquidity on the balance sheet.
Operator: Operator, we're now ready for questions. Thank you.
Dino: Thank you we will now begin the question and answer session.
Operator: We will now begin the question and answer session. To ask a question, please press star then 1 on your telephone keypad. If you are using a speaker phone, we ask that you please pick up your handset before pressing the key. To withdraw your question, please press star then 2. Once again, that's star than one if you have a question.
Dino: To ask a question. Please press Star then one on your telephone keypad.
Dino: If you're using a speaker phone we ask you. Please pickup your handset before pressing the keys.
Dino: To withdraw your question. Please press Star then two.
Dino: Once again Thats Star then one if you have a question.
Speaker Change: And today's first question comes from Pablo's water with as long as I'm Associates. Please go ahead.
Pablo Zwanak: And today's first question comes from Pablo Zwanak with Zwanak & Associates. Please go ahead. Good morning, everyone. Look, just a general macro question. My read, listening to other finance companies in this space, is that they seem more cautious about the industry outlook, assuming no state-level or federal-level regulatory changes this year. They sound more cautious than they sounded three, six months ago. But in this context, right, you're ready to deploy $100 million in loan this year, which is a base much higher than what we're seeing at other companies. So I'm just trying to reconcile the two.
Speaker Change: Good morning, everyone look just a general macro question.
Speaker Change: My read listening to other finance companies in this space you said, they've seen more cautious about the industry outlook.
Speaker Change: Assuming no state level or federal level regulatory changes this year.
Speaker Change: They've got more cautious when they tell them the three and six months ago, but in this context, right youre ready to deploy $100 million in loan this year.
Speaker Change: You know, which is the base is much higher than what we were seeing that other companies. So I'm just trying to reconcile the two but if you can just make some comments there on that on that point and it does your industry outlook and and the context in which you would be between $100 million apparently very few are doing bad, but correct me if I'm wrong. Thank you.
Peter Sack: But if you can just make some comments there on that point, in terms of your industry outlook and the context in which you would be deploying $100 million, where apparently very few are doing that. But correct me if I'm wrong. Thank you.
Speaker Change: I think.
Peter Sack: I think I think we're focused on since our inception at Chicago Atlantic. we've put aside the idea of the broader U.S. cannabis industry because we view the U.S. cannabis industry as is really a grouping of 40 individual states that each have their own supply and demand dynamics. They're each level of attractiveness and growth profile that changes over time. And so. We keep a more narrow focus on the markets that we're excited about, the operators and the relationships that we're excited about. And we spend our time building relationships with those operators. in boom times and times where equity markets aren't so enthusiastic.
Speaker Change: We're focused on.
Speaker Change: Since our inception, Chicago Atlanta.
Speaker Change: We've we've put aside the ideas the broader U S cannabis industry, because we deal with the U S. Cannabis industry is as this is really a grouping of 40 individual states that each have their own supply and demand dynamics there each level.
Speaker Change: Thickness and growth profile that changes overtime.
Speaker Change: And so we keep a more narrow focus on the markets that we're excited about the operators and the relationships that we're excited about.
Speaker Change: And we spend our time building relationships with those operators.
Speaker Change: In boom times, and times, where equity markets arent folks aren't aren't so.
Speaker Change: <unk>.
Peter Sack: And so for us, it's a longer term view of partnership building to support growth initiatives of operators that are successful in their market. And, and I think that's what all of that investment in a platform and a team is what drives us to be able to continue to deploy. in a very disciplined manner. consistently throughout different cycles of when the market may view the sector as a whole differently. Because frankly, we don't spend a lot of time thinking about the U.S. cannabis market as a whole. We spend a lot of time thinking about 40 individual states.
Speaker Change: So for US it's it's it's a longer term view of partnership building.
Speaker Change: To support growth initiatives with the operators that are successful in their markets.
Speaker Change: And and I think that's what all of that investment in our platform and a team is what drives us to be able to continue to deploy.
Speaker Change: In a very disciplined manner.
Speaker Change: Consistently throughout different cycles of when the market may be you.
Speaker Change: Maybe with the sector as a whole differently because frankly, we don't spend a lot of time thinking about the U S cannabis market as a whole we spend a lot of time thinking about 40 individual states.
Speaker Change: Understood.
Pablo Zwanak: Understood but and not to push back on that comment But when you talk about a pipeline on the cannabis side and the pipeline in the in on the non-cannabis side Is there any nuance there again compared to three six months ago where you might be a bit more active on the non-cannabis side? I think the ratio last quarter was 77% cannabis and the rest non-cannabis Or should we assume that a ratio remains pretty pretty stable throughout the year? No significant difference.
Speaker Change: And not to push back on that comment, but when you talk about the pipeline on the economy side and the pipeline and on the non kind of aside.
Speaker Change: Is there any new ones, there again compared to three six months ago, where you might be a bit more active on the noncash side I think the ratio of last quarter was 77% cannabis and the rest and then kind of as or should we assume that that ratio remains pretty stable throughout the year.
Speaker Change: Oh no significant difference.
Peter Sack: And I think that the change of deployments in first quarter is is ordinary fluctuations, not a deliberate change or a market driven change.
Speaker Change: Hi.
Speaker Change: Chip deployments that in first quarter as is ordinary fluctuations not a deliberate change or a marketer can change.
Speaker Change: Right.
Pablo Zwanak: And then just staying on the growth plans, I mean, obviously, you have the revolving facility, 100 million, you know, if you're viewing the industry, you know, stays as it is or even improves, right, and you feel that there's room to deploy more capital, how do you feel about the BDC's flexibility to increase that facility? We too. We. Think about building a differentiated risk reward platform in two ways. One is by deploying into industries and to companies at risk levels that we think are differentiated from the broader BDC market. And two, we think about managing a vehicle that overall can generate differentiated returns, even on a basis that's more under levered than the broader BDC market.
Speaker Change: And then just staying on the on the growth plans I mean, obviously you have the revolving facility 100 million.
Speaker Change: You know if your view on the industry stays as it is but even improves right and you feel that there is room to deploy more capital how do you feel about the bdcs flexibility to increase that that facility.
Speaker Change: Mhm.
Speaker Change: We.
Speaker Change: Think about building a differentiated risk reward platform into two.
Ways, one is by deploy.
Speaker Change: Deployment industries into companies at risk levels that we think are differentiated from the broader D C market.
Speaker Change: And two we think about managing a vehicle.
Speaker Change: That overall can generate differentiated returns even on a basis, that's more under levered.
Speaker Change: The broader BDC market.
Speaker Change: And so we do think that there's room to grow our senior secured credit facility.
Peter Sack: And so we do think that there's room to grow our Senior Secured Credit Facility, there's room to add modest unsecured notes, as we've been able to achieve in other vehicles managed under the Chicago Atlantic Platform, but that will be done in a disciplined and deliberate manner in conjunction with the Pipeline. Right.
Speaker Change: There's room to add modest unsecured notes as we've been able to achieve in other vehicles managed out of Chicago Atlanta platform.
That will be done in a in a disciplined and deliberate manner in conjunction with the pipeline.
Speaker Change: Right.
Pablo Zwanak: And just a reminder in terms of what's your debt leverage threshold, I know you said the BDC average is 1.1 times. Would that be the same number for yourselves or would you be looking at a lower ratio, longer? we're likely to be well below industry averages for the foreseeable future.
Speaker Change: Just a reminder, in terms about what your debt leverage threshold I know you said the BDC average is one one times a week.
Speaker Change: Would that would be the same number for yourselves or would you be looking at a lower ratio longer term.
We're likely to be well below industry averages for the foreseeable future.
Speaker Change: And then you know I know we can have the last question I know, we cannot guide based on the growth momentum of the book on my math and what you're saying on this call you should be in a position you know by the third or fourth quarter to increase the dividend, but you know just a reminder, how should how should we think about that thanks.
Pablo Zwanak: And then, you know, I know we cannot, last question, I know we cannot guide based on the growth momentum of the book on my math and what you're saying on this call, you should be in a position, you know, by the third or fourth quarter to increase the dividend. But, you know, just a reminder, how should we think about that. We don't provide dividend guidance, but... but the BDCs are required to distribute nearly all of their income every year. so all of its income will be distributed by the end of the year.
Speaker Change: Oh, we don't provide dividend guidance, but.
Speaker Change: But the Bdcs are required to distribute nearly all of their income every year.
Speaker Change: And so all of its income will be distributed by the end of the year.
Speaker Change: Right. Thank you very much.
Pablo Zwanak: Thank you very much.
Speaker Change: Thank you.
Operator: Thank you.
Peter Sack: And it appears that there are no further questions, so at this time I'd like to turn the conference back over to Peter Sack for the closing remarks. Thank you for the support. We look forward to presenting results in the quarters to come, and please feel free to reach out with any questions. Thank you.
Speaker Change: There are no further questions. So I'll just I'll now like to turn the conference back over to Peter sorry for any closing remarks.
Speaker Change: Thank you for the support.
Peter: We look forward to presenting results in the quarters to come and please please feel free to reach out with any questions.
Peter: Thank you. This concludes today's conference call. Thank you all for attending today's presentation. You may now disconnect your lines and have a wonderful day.
Operator: This concludes today's conference call. We thank you all for attending today's presentation.
Operator: You may now disconnect your lines and have a wonderful day.
Peter: [music].