Medley Capital Corporation (NYSE:MCC) Q3 2018 Earnings Conference Call Transcript
Dec 04, 2018 • 10:00 am ET
Welcome and thank you for joining the Medley Capital Corporation's Fiscal Fourth Quarter 2018 Conference Call. The company would like to remind everyone that today's call is being recorded. Please note that this call is the property of Medley Capital Corporation and that any unauthorized broadcast of this call in any form is strictly prohibited. Audio replay of the call will be available by using the telephone numbers and PIN provided in the company's earnings press release.
At this time, all participants are in a listen-only mode, that will be prompted for a question-and-answer session, following the prepared remarks. Participating on the call today from Medley Capital Corporation are Brook Taube, CEO; Rick Allorto, CFO; Dean Crowe, Head of Investing; and Sam Anderson, Head of Capital Markets.
(Forward-Looking Cautionary Statements)
In addition, the company's fiscal fourth quarter 2018 investor presentation is available in the Investor Relations section in the Events/Investor Presentations section of the company's website.
I would now like to turn the call over to Mr. Brook Taube.
Thank you operator and welcome everyone to Medley Capital Corporation's quarterly call. Over the past few months, we've been hard at work on portfolio activity and also with respect to our announced merger. I will provide an update on this transformative transaction later in the call, but first I would like to review the quarterly activity at MCC. This morning we announced our financial results for the quarter ended September 30, 2018. We reported net investment income per share of $0.06 adjusted for merger related expenses and net asset value per share of $5.90.
As announced on November 16, our Board of Directors approved a dividend of $0.10 per share for the quarter ended September 30. This dividend will be payable on December 20 to shareholders of record on December 5.
Turning now to investing, during the quarter, we invested approximately $64 million, a $46.4 million went into new investments, of which, $13.8 million was in new loans made in our SBIC portfolio. The balance was to support existing portfolio companies. Given the current market environment, we are seeking investments to protect downside risk and generate durable income in a rising rate environment. We remain primarily focused on larger sponsor-backed borrowers that are well capitalized, have sensible structures and attractive deal terms. We do expect this trend to continue post merger into 2019 and beyond as we position the balance sheet for growth in both NII and NAV over time.
Non-accruals declined during the quarter from $63 million to $48 million and represents 7.3% of the portfolio at September 30. We continue to reposition the portfolio with a focus on resolving legacy assets and this includes generating liquidity from these assets where it's available and otherwise repositioning certain of the assets for long-term success.
I'd like to now turn the call over to Rick, our CFO to review the financial results for the quarter.
Thank you, Brook. For the three months ended September 30, the company reported net investment income of $0.7