Content analysis
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H.S. senior Avg
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New words:
adapt, aircraft, artificial, Automotive, concluded, durability, durable, EOS, episodic, expedient, Fiesta, Finco, Hamburg, Ideal, intelligence, KWOL, learning, Luxembourg, machine, master, migrated, migration, Pediatric, PetVet, Physician, pronouncement, RBC, reconciliation, renamed, renaming, Shade, sit, Store, takeout, tertiary, therewith, transportation, triple, undeployed, Vestwell, XV, XVI
Removed:
ABR, Advance, Alabama, annualizing, automatic, BC, benchmark, Carolina, Chapford, Chase, complied, compounding, deprecation, East, enrollment, Eurodollar, free, furnish, Idaho, impaired, improved, Investec, Issuing, JPMorgan, Kentucky, LL, Maine, moderation, MUFG, Nebraska, North, Oklahoma, Oregon, oriented, oversee, PLC, post, promissory, recouped, satisfied, SMA, tightened, Vermont, Washington, Zendesk
Financial report summary
?Management Discussion
- Net increase (decrease) in net assets resulting from operations can vary from period to period as a result of various factors, including the level of new investment commitments, expenses, the recognition of realized gains and losses and changes in unrealized appreciation and depreciation on the investment portfolio. For the three months ended March 31, 2024, our net asset value per share increased, primarily driven by earnings in excess of dividends paid. For the three months ended March 31, 2023, our net asset value per share increased, primarily driven by market spreads tightening.
- Investment income increased to $528.2 million for the three months ended March 31, 2024 from $305.4 million for the same period in prior year primarily due to an increase in interest income as a result of an increase in our debt investment portfolio which, at par, increased from $10.74 billion as of March 31, 2023 to $17.64 billion as of March 31, 2024. Included in interest income are other fees such as prepayment fees and accelerated amortization of upfront fees from unscheduled paydowns which are non-recurring in nature. Income generated from these fees was $13.2 million for the three months ended March 31, 2024 and $0.1 million for the three months ended March 31, 2023. For the three months ended March 31, 2024, PIK interest and PIK dividend income earned was $27.6 million and $17.2 million, respectively. PIK interest and PIK dividend income represented approximately 5.2% and 3.3% of total investment income for the three months ended March 31, 2024, respectively. For the three months ended March 31, 2023, PIK interest and PIK dividend income earned was $15.1 million and $17.9 million, respectively. PIK interest and PIK dividend income represented approximately 4.9% and 5.9% of total investment income for the three months ended March 31, 2023, respectively. Other income increased period-over-period due to an increase in incremental fee income, which are fees that are generally available to us as a result of closing investments and generally paid at the time of closing or as a result of episodic amendments made to the terms of our existing debt investments. We expect that investment income will vary based on a variety of factors including the pace of our originations and repayments.
- Total operating expenses increased to $253.2 million for the three months ended March 31, 2024 from $139.7 million for the same period prior year primarily due to increases in management fees, incentive fees and interest expense. The increase in management fees was driven by growth in the net asset value of the fund. The increase in incentive fees was due to higher pre-incentive fee net investment income earned during the three months ended March 31, 2024 compared to the three months ended March 31, 2023. The increase in interest expense was driven by an increase in average daily borrowings to $8.26 billion from $5.58 billion period over period, as well as an increase in the average interest rate to 7.6% from 6.2% period over period. As a percentage of total assets, professional fees, directors’ fees and other general and administrative expenses remained relatively consistent period over period.