Release Date: February 26, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Q: Just a question on the JV. I think Tom, you said it will free the unqualified asset bucket capacity. Are you suggesting you might do something else there? A: Thomas Hennigan, CFO: Regarding the two JVs, MMCF II is a static vehicle, and taking those assets back on balance sheet reduces the non-qualifying bucket. For JV one, we plan to ramp up the facility materially in the future. We anticipate a return of capital from both JVs in the first quarter. We have flexibility for future strategic partnerships, but nothing imminent right now.
Q: On the tax line, that dropped a bit in the fourth quarter. Is that sort of a true-up thing? A: Thomas Hennigan, CFO: Yes, it was a year-end true-up based on the audit. We anticipate the tax expense to be in the range of prior quarters, maybe slightly lower.
Q: You guys are doing well, trading well. Any discussion and idea of growth plans for this BDC? A: Justin Plouffe, CEO: Right now, we're focused on putting capital to work and completing the merger process. Once that's done, we'll consider future growth initiatives, but nothing is imminent at the moment.
Q: In the fourth quarter, was there any outsized fee income or prepayment income that we should be aware of? A: Thomas Hennigan, CFO: The combination of fee income and OID acceleration was lower than our historical average by about $0.01 per share. We had an incremental dividend from the JV that runs through the JV income line.
Q: On slide 7, there's usually a tight difference between the weighted average yield on debt investments and income-producing investments. Why was it wider this quarter? A: Justin Plouffe, CEO: The difference relates to the JV extra dividend. The second line item includes JVs, which caused a 30-40 basis point increase. Normally, it should be closer to 11.3%-11.4%, and you should see those numbers closer next quarter.
Q: What was the dollar amount of the incremental dividend related to the joint venture two in anticipation of the wind down? A: Justin Plouffe, CEO: It was about $1.2 million, resulting in a net impact on NII of about $0.02 per share for the quarter.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
This article first appeared on GuruFocus.Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.