Alcentra Capital Corporation (NASDAQ:ABDC) Q3 2018 Earnings Conference Call Transcript

Nov 06, 2018 • 09:30 am ET


Alcentra Capital Corporation (NASDAQ:ABDC) Q3 2018 Earnings Conference Call Transcript


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Good day, ladies and gentlemen, and welcome to the Alcentra Capital Corporation Third Quarter 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. Later we'll conduct a question-and-answer session, instructions will be given at that time. (Operator Instructions)

I would now like to introduce your host for today's call, Ms. Ellida McMillan, CFO. Ma'am, you may begin.

Ellida McMillan

Thank you, Juenda. Good morning, and welcome, everyone to Alcentra Capital Corporation's third quarter 2018 earnings call. I'm joined this morning by Vijay Rajguru, Chairman and Chief Executive of Alcentra Capital Corporation; and CIO, who manage our Alcentra. Also, joining us today are Peter Glaser and Suhail Shaikh, our Co-Presidents of Alcentra Capital Corporation and Co-Heads of US Direct Lending of the manager.

Before we begin, please note that this call is being recorded. Replay information is included in our November 5th, 2018 press release and will be posted on the IR section of Alcentra Capital Corporation's website, which can be found at Please note that this call is the property of Alcentra Capital Corporation. Any unauthorized rebroadcast of this call in any form is strictly prohibited.

(Forward-Looking Cautionary Statements)

The format for today's call is as follows, Vijay, Peter and Suhail will provide an overall business and portfolio summary, and I will then provide an overview of our results, summarizing the financials, followed by a Q&A.

I will now turn it over to Vijay.

Vijay Rajguru

Thank you, Ellida. Good morning. Thank you for joining us to discuss our results for the third quarter. Before turning to the results, we wanted to first provide an update around the progress we've made in reorienting our strategy toward a more traditional, private equity focused, mid-market senior secured portfolio. We continue to believe this shift in strategy is in the best interest of ABDC investors, as it'll allow us to establish and maintain a more stable asset base and NAV with appropriate risk return characteristics that provide attractive dividend and returns to our shareholders.

This year, we've taken a number of steps to strengthen ABDC and position us favorably to maximize value for shareholders. We have strengthened both our management team and board with the additions of Peter and Suhail earlier this summer as Co-Presidents of ABDC, as well as Bill Wright and Rick Van Zijl, as Independent Directors to the Board. All four individuals are highly seasoned financial professionals, who will bring a wealth of experience and insight to ABDC. We've significantly expanded the US direct lending team at the manager, which enhances our ability to source and allocate investments to ABDC that are in line with our shift in strategy.

We completed the share buyback plan we announced in late 2017 with $5 million worth of shares purchased by the company. On November 5th, our Board of Directors authorized a new buyback plan for up to $10 million, which will stay in place until utilized. We will use this new buyback plan, if we don't find appropriate investment opportunities. We