Phenixfin Corporation · NASDAQ:PFX
Phenixfin — Medley Capital — Wells Fargo Middle Market Leadership Forum 2015
17 slides from Phenixfin's conference presentation, Nov 17, 2015
Slide 1: Medley Capital Corporation (NYSE: MCC)
Medley Capital Corporation (NYSE: MCC) Wells Fargo Middle Market Leadership Presentation November 17, 2015
Slide 2: Important Notice
Important Notice This presentation contains “forward looking statements” within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. Actual outcomes and results could differ materially from those suggested by this presentation du
Slide 3: Medley Overview
Medley Overview Who we are • Asset manager offering yield solutions to institutional and retail investors • Credit-focused firm with national direct origination platform • Principals in their 13th year of investing in middle market credit as a team What we do • Lend directly to middle market compani
Slide 4: Medley's Platform
Medley's Platform • Medley is a CREDIT-FOCUSED direct lender to the middle market MEDLEY (NYSE: MDLY) Public Vehicles Private Vehicles Medley Capital Sierra Income Separately Corporation Corporation Private Funds (NYSE: MCC) (Public non-traded BDC) Managed Accounts Middle Medley Senior Senior Senior
Slide 5: Origination Platform
Origination Platform Robust Direct Origination Capabilities Local Market Relationships Direct • Over 40 investment professionals in New York • Calling effort on companies, management teams and San Francisco, all focused on sourcing for and non-Wall Street intermediaries Medley • Regional accounting
Slide 6: Key Initiatives to Drive Shareholder Value at MCC
Key Initiatives to Drive Shareholder Value at MCC 1. Completing $30MM share repurchase program 2. Amended credit facility to extend maturity, improve pricing and increase flexibility for share repurchase 3. Formed SLS JV, commenced investing and secured attractive financing 4. Resolving non-accruals
Slide 7: Reasons to Invest in Medley Capital
Reasons to Invest in Medley Capital 1. Announced $0.30 dividend on November 5th 2. Dividend of $1.20 annualized that is covered by portfolio cash flow 3. Dividend yields over 10% on current NAV and over 15% on the current share price 4. Portfolio with higher concentration in senior secured loans ver
Slide 8: Historical NII and Dividend Coverage per Share
Historical NII and Dividend Coverage per Share • MCC remains focused on covering the dividend with net investment income • Announced $0.30 dividend per share on November 5th Historical Net Investment Income and Dividend Coverage per Share $0.60 120.0% 117% 114% 111% 111% 108% $0.50 110.0% 103% 100%
Slide 9: Strong Relative Dividend On NAV Per Share
Strong Relative Dividend On NAV Per Share • MCC’s dividend provides an attractive return on NAV for investors Current Annualized Dividend Yield On NAV Per Share 1 12.0% 11.4% 10.9% 10.4% 10.2% 10.0% 9.8% 9.8% 10.0% 9.5% 9.2% 9.1% 8.1% 7.9% 8.0% 6.0% 4.0% 2.0% 0.0% PNNT MCC TCRD AINV TSLX PSEC NMFC T
Slide 10: Strong Relative Dividend On Current Share Price
Strong Relative Dividend On Current Share Price • MCC’s dividend provides an attractive current yield for investors compared to our BDC peers Current Annualized Dividend Yield On Current Share Price1 20.0% 18.0% 17.2% 15.9% 16.0% 13.7% 13.6% 14.0% 12.1% 11.9% 12.0% 9.9% 9.8% 10.0% 9.5% 9.4% 9.0% 7.6
Slide 11: Diversified, Senior Secured, Floating Rate Portfolio
Diversified, Senior Secured, Floating Rate Portfolio • MCC has a diversified portfolio of 71 companies Industry Geography1 1%1%0% Services: Business 2%2% 2% Construction & Building 3% 13% Automotive 6% Healthcare & Pharmaceuticals 3% Banking, Finance, Insurance & Real Estate 10% Midwest 3% Energy: O
Slide 12: Portfolio by Issuer
Portfolio by Issuer Top 20 Investments: 46% DHISCO Electronic Distribution, Inc. 3% United Road Towing Inc 3% 3% Nation Safe Drivers Holdings, Inc. 3% Accupac, Inc. 3% Response Team Holdings LLC 3% Merchant Cash and Capital LLC Harrison Gypsum LLC 3% AAR Intermediate Holdings LLC 2% Seotowncenter, I
Slide 13: Well Positioned for a Rising Rate Environment
Well Positioned for a Rising Rate Environment • MCC is well positioned for a rising interest Assets rate environment 12/31/2011 6/30/2015 • 77% of the portfolio is floating rate • 40% of liabilities are fixed rate Floating Fixed • Favorable asset & liability mix 34% 23% The weighted average maturi
Slide 14: Oil & Gas Exposure
Oil & Gas Exposure • MCC oil and gas exposure is in line with its BDC peers Percentage of Portfolio in Energy Energy Portfolio Assets by Security 18% GBDC 100% 16% 16% FSC 100% TCRD 100% 14% TSLX 100% 12% 12% NMFC 93% 7% 10% MCC 94% 6% 10% PSEC 76% 24% 8% 8% MAIN 61% 3% 36% 6% 6% TCPC 60% 40% 6% 5%
Slide 15: Selective Underwriting Filters
Selective Underwriting Filters • Credit criteria has been consistent over time • Close between 2-3% of deals originated, on average • Consistent underwriting and covenant packages Selective Filter – 1H 2015 Selective Filter - 2014 Deals Originated 700 Selective Filter - 2013 Deals Originated 1,400 E
Slide 16: Debt Maturity Profile
Debt Maturity Profile • On 7/28/2015 MCC amended and extended its ING credit facility, extending the maturity on the (i) revolver from June 2017 to July 2019, followed by a one-year amortization period until final maturity in July 2020 and (ii) term loan from June 2019 to July 2020 $400.0 $350.0 ING
Slide 17: Reasons to Invest in Medley Capital
Reasons to Invest in Medley Capital 1. Announced $0.30 dividend on November 5th 2. Dividend of $1.20 annualized that is covered by portfolio cash flow 3. Dividend yields over 10% on current NAV and over 15% on the current share price 4. Portfolio with higher concentration in senior secured loans ver
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