THL Credit, Inc. (NASDAQ:TCRD) Q1 2019 Earnings Conference Call - Final Transcript

May 10, 2019 • 10:30 am ET


THL Credit, Inc. (NASDAQ:TCRD) Q1 2019 Earnings Conference Call - Final Transcript


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Good morning and welcome to the THL Credit's Earnings Conference Call for its First Fiscal Quarter ended March 31, 2019. It is my pleasure to turn the call over to Ms. Sabrina Rusnak-Carlson, General Counsel and Chief Compliance Officer of THL Credit. Ms. Rusnak-Carlson, you may begin.

Sabrina Rusnak-Carlson

Thank you, operator. Good morning and thank you for joining us. With me today are Chris Flynn, our Chief Executive Officer; Jim Fellows, our Advisors' Chief Investment Officer; and Terry Olson, our Chief Operating and Chief Financial Officer.

Before we begin, please note that the statements made on this call may constitute forward-looking statements within the meaning of the Securities Act of 1933 as amended. Such statements reflect various assumptions by THL Credit concerning anticipated results that are not guarantees of future performance and are subject to known and unknown uncertainties and other factors that could cause actual results to differ materially from such statements. The uncertainties and other factors are, in some ways, beyond management's control and include the factors included in the section entitled Risk Factors in our most recent quarterly report on Form 10-Q, as updated by our periodic and other filings with the Securities and Exchange Commission.

Although we believe that the assumptions, on which any forward-looking statements are based, are reasonable, any of those assumptions could prove to be inaccurate. And as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. THL Credit undertakes no duty to update any forward-looking statements made herein. All forward-looking statements speak only as of the date of this call. Our earnings announcement and 10-Q were released yesterday afternoon, copies of which can be found on our website along with the Q1 earnings presentation that we may refer to during this call. A webcast replay of this call will be available until May 19, 2019, starting approximately two hours after we conclude this morning. To access the replay, please visit our website at

With that, I'll turn over the call to Chris.

Christopher J. Flynn

Thanks, Sabrina, and good morning, everyone. Let me say at the outset that we believe we have made significant progress transitioning the BDC to a highly diversified first lien floating rate vehicle. We expect the majority of this transition to be completed by the end of the year. As a result of our execution, we believe that our portfolio is substantially less risked today than it did a year ago. We have ensured, to the best of our ability, alignment with our shareholders, while we have executed our plan via fee waivers and reduced fees and share repurchases at the BDC and share purchases by our adviser. As we continue to build out a more diversified pool of senior secured floating rate assets and assuming we get approval in June and have successfully amended our credit facility, we expect to take advantage of modestly higher leverage in 2020 to drive increasing ROE for our shareholders.

Now let