Sound Point Meridian Capital, Inc. Announces Results for the Second Fiscal Quarter Ended September 30, 2024
Sound Point Meridian Capital (NYSE: SPMC) reported its Q2 FY2024 results with a net asset value of $19.59 per share. The company posted net investment income of $17.5 million ($0.86 per share), comprising $25.1 million in investment income and $7.7 million in expenses. GAAP net income was $7.6 million ($0.38 per share), with a realized and unrealized loss of $9.9 million on investments.
The company secured a $100 million revolving credit facility with CIBC, issued 175,000 additional shares, and maintained an 8.7% leverage. Their CLO equity portfolio yielded 15.7%, with exposure to 1,532 unique corporate obligors. Monthly distribution increased 9.1% to $0.24 per share for Q1 2025.
Sound Point Meridian Capital (NYSE: SPMC) ha riportato i risultati del secondo trimestre dell'anno fiscale 2024, con un valore patrimoniale netto di $19.59 per azione. L'azienda ha registrato un reddito netto da investimenti di $17.5 milioni ($0.86 per azione), costituito da $25.1 milioni di entrate da investimenti e $7.7 milioni di spese. Il reddito netto secondo i principi contabili GAAP è stato di $7.6 milioni ($0.38 per azione), con una perdita realizzata e non realizzata di $9.9 milioni sugli investimenti.
L'azienda ha ottenuto una linea di credito revolving di $100 milioni con CIBC, ha emesso 175.000 azioni aggiuntive e ha mantenuto un leverage dell'8.7%. Il loro portafoglio di equity CLO ha generato un rendimento del 15.7%, con esposizione a 1.532 obbligatori aziendali unici. La distribuzione mensile è aumentata del 9.1% a $0.24 per azione per il primo trimestre del 2025.
Sound Point Meridian Capital (NYSE: SPMC) informó sus resultados del segundo trimestre del año fiscal 2024, con un valor neto de activos de $19.59 por acción. La compañía reportó ingresos netos por inversiones de $17.5 millones ($0.86 por acción), compuestos por $25.1 millones en ingresos de inversión y $7.7 millones en gastos. La ganancia neta según los principios contables generalmente aceptados (GAAP) fue de $7.6 millones ($0.38 por acción), con una pérdida realizada y no realizada de $9.9 millones en inversiones.
La empresa aseguró una línea de crédito revolvente de $100 millones con CIBC, emitió 175,000 acciones adicionales y mantuvo un apalancamiento del 8.7%. Su cartera de equidad CLO rindió un 15.7%, con exposición a 1,532 obligadores corporativos únicos. La distribución mensual aumentó un 9.1% a $0.24 por acción para el primer trimestre de 2025.
사운드 포인트 메리디안 캐피탈 (NYSE: SPMC)는 2024 회계연도 2분기 결과를 보고하며, 주당 순 자산 가치가 $19.59라고 발표했습니다. 이 회사는 $17.5 백만 ($0.86 per 주) 의 순 투자 수익을 기록하였으며, 이는 $25.1 백만의 투자 수익과 $7.7 백만의 비용으로 구성됩니다. GAAP 기준 순수익은 $7.6 백만 ($0.38 per 주)였으며, 투자에서 발생한 실현 및 비실현 손실은 $9.9 백만에 달했습니다.
회사는 CIBC와 함께 $100 백만의 순환 신용 시설을 확보하였고, 175,000개의 추가 주식을 발행하였으며, 8.7%의 레버리지를 유지했습니다. 그들의 CLO 주식 포트폴리오는 15.7%의 수익률을 기록하였고, 1,532개의 독특한 기업 채무자에게 노출되었습니다. 월 배당금은 2025년 1분기에 대해 주당 $0.24로 9.1% 증가했습니다.
Sound Point Meridian Capital (NYSE: SPMC) a annoncé ses résultats du deuxième trimestre de l'exercice 2024, avec une valeur nette d'actif de $19.59 par action. L'entreprise a affiché un revenu net d'investissement de $17.5 millions ($0.86 par action), composé de $25.1 millions de revenus d'investissement et de $7.7 millions de dépenses. Le revenu net selon les principes comptables généralement acceptés (GAAP) était de $7.6 millions ($0.38 par action), avec une perte réalisée et non réalisée de $9.9 millions sur les investissements.
L'entreprise a sécurisé une ligne de crédit renouvelable de $100 millions avec CIBC, a émis 175.000 actions supplémentaires et a maintenu un effet de levier de 8.7%. Leur portefeuille de capitaux CLO a produit un rendement de 15.7%, avec une exposition à 1.532 débiteurs d'entreprises uniques. La distribution mensuelle a augmenté de 9.1% à $0.24 par action pour le premier trimestre de 2025.
Sound Point Meridian Capital (NYSE: SPMC) hat seine Ergebnisse für das zweite Quartal des Geschäftsjahres 2024 veröffentlicht, mit einem Nettovermögen von $19.59 pro Aktie. Das Unternehmen verzeichnete ein Nettoinvestitionseinkommen von $17.5 Millionen ($0.86 pro Aktie), das sich aus $25.1 Millionen an Investitionseinkünften und $7.7 Millionen an Ausgaben zusammensetzt. Das GAAP-Nettoeinkommen betrug $7.6 Millionen ($0.38 pro Aktie), bei einem realisierten und unrealisierbaren Verlust von $9.9 Millionen aus Investitionen.
Das Unternehmen sicherte sich eine revolvierende Kreditlinie von $100 Millionen bei der CIBC, gab 175.000 zusätzliche Aktien aus und hielt ein Leverage von 8.7%. Ihr CLO-Eigenkapitalportfolio erzielte eine Rendite von 15.7%, mit einer Exposition gegenüber 1.532 einzigartigen Unternehmensschuldnern. Die monatliche Ausschüttung stieg um 9.1% auf $0.24 pro Aktie für das erste Quartal 2025.
- Net investment income of $17.5 million ($0.86 per share)
- Secured $100 million revolving credit facility, expandable to $125 million
- Strong CLO equity portfolio yield of 15.7%
- 9.1% increase in monthly distribution to $0.24 per share
- Received $17.1 million in cash distributions from investment portfolio
- Successful preferred shares offering raising $48.2 million
- Realized and unrealized loss of $9.9 million on investments
- GAAP net income decreased to $7.6 million ($0.38 per share)
- Potential shareholder dilution from additional 175,000 shares issued
Insights
The quarterly results show mixed performance with some positive developments. Net investment income of
The new
The well-diversified portfolio with exposure to 1,532 unique corporate obligors and low concentration risk (top 10 obligors at
The portfolio structure and performance metrics reveal strong positioning in the CLO market. The moderate leverage of
The conservative portfolio construction with maximum single obligor exposure of
SECOND FISCAL QUARTER ENDED SEPTEMBER 30, 2024 RESULTS
-
Net asset value per share of common stock was
$19.59 -
Net investment income was
$17.5 million $0.86 $25.1 million $1.24 $7.7 million $0.38 -
Realized and unrealized loss on investments was
$9.9 million $0.49 -
GAAP net income was
$7.6 million $0.38 -
Issued an additional 175,000 shares, or
$3.5 million -
Entered into a
$100.0 million $125.0 million -
The Company had leverage of
8.7% as of September 30, 2024.1 -
As of September 30, 2024:
-
The weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio, based on amortized cost, was
15.7% .2
-
The weighted average effective yield of the Company’s collateralized loan obligation (“CLO”) equity portfolio, based on amortized cost, was
-
As of September 30, 2024, on a look-through basis, and based on the most recent trustee reports received by such date:
- The Company, through its CLO investments, had indirect exposure to approximately 1,532 unique corporate obligors.
-
The largest look-through obligor represented
0.6% of the loans underlying the Company’s CLO debt and equity portfolio. -
The top ten largest look-through obligors together represented
4.4% of the loans underlying the Company’s CLO debt and equity portfolios.
THIRD FISCAL QUARTER PORTFOLIO ACTIVITY AND UPDATES THROUGH NOVEMBER 12, 2024
-
Received
$17.1 million -
Declared a monthly distribution of
$0.24 9.1% increase from the prior monthly distribution of$0.22 -
Priced public offering of two million
8.00% Series A Preferred Shares due 2029, resulting in net proceeds of approximately$48.2 million
CONFERENCE CALL
The Company will host a conference call at 11:00 a.m. (Eastern Time) today to discuss these results. All interested parties are welcome to participate in the conference call via the below:
Date/Time: |
Wednesday, November 13, 2024 – 11:00 a.m. ET |
|
|
Participant Dial-In Numbers: |
|
( |
(800) 579-2543 |
(International): |
(785) 424-1789 |
To access the call, please dial-in approximately five minutes before the start time and, if asked, provide the operator with Conference ID “SOUNDFQ2”.
An accompanying slide presentation is available in pdf format via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com).
The call will also be simultaneously webcast over the internet via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com). Please go to the “Events and Presentations” section of the Company’s website at least 15 minutes prior to the call to register for the call and download and install any necessary audio software.
An online archive of the webcast will be made available shortly after the call via the “Investor Relations” section of the Company’s website, and will remain available for approximately one year. A telephone replay will also be available following the end of the call through November 20, 2024 by dialing (800) 688-9459 (toll-free) or (402) 220-1373 (international), replay pin number 26603.
About the Company
The Company is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation (“CLO”) equity and mezzanine tranches of predominately
FORWARD-LOOKING STATEMENTS
This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE
1 Leverage is defined as the funded credit facility and outstanding borrowings divided by total assets.
2 Weighted average effective yield is based on investments’ amortized cost and expected future cash flows as of the applicable period end.
3 “Cash distributions” refers to the quarterly distributions received by the company from its CLO equity investments.
View source version on businesswire.com: https://www.businesswire.com/news/home/20241113120556/en/
Investor Relations:
Garrett Edson – ICR; Julie Smith – Sound Point Capital
(833) 217-6665
ir@soundpointmeridiancap.com
www.soundpointmeridiancap.com
Source: Sound Point Meridian Capital, Inc.
FAQ
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