Phenixfin Corporation · NASDAQ:PFX
Phenixfin — Medley Capital — Q2 2018 Earnings Presentation
18 slides from Phenixfin's earnings presentation, Mar 31, 2018
Slide 1: Medley Capital Corporation Investor Presentation, Quarter Ended March 31, 2018
Medley Capital Corporation (NYSE: MCC) Investor Presentation Quarter Ended March 31, 2018
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: Diversified AUM Across Multiple Funds
Diversified AUM Across Multiple Funds • Broad distribution through public and private vehicles • Permanent capital, long-dated funds and managed accounts not subject to traditional outflows MEDLEY (NYSE: MDLY) Public Vehicles Institutional Capital Medley Capital Sierra Long-Dated Funds and Corporati
Slide 4: Diversified Senior Secured Floating Rate Portfolio
Diversified Senior Secured Floating Rate Portfolio Investment Type1 Floating vs Fixed Rate2 7% 14% First Lien 11% Second Lien Fixed Floating Equities/Warrants 93% 75% Industry Geography2 Services: Business 6% Construction & Building 2% 10% 2% 20% Multisector Holdings Western US 3% 23% 3% Energy: Oil
Slide 5: Portfolio by Issuer
Portfolio by Issuer Top 20 Investments: 67% MCC Senior Loan Strategy JV I LLC 9% Harrison Gypsum LLC JFL-NGS Partners, LLC 33% URT Acquisition Holdings Corporation 7% NVTN LLC 1888 Industrial Services, LLC Seotowncenter, Inc. 5% L & S Plumbing Partnership, Ltd. Heligear Acquisition Co. 5% Alpine SG,
Slide 6: 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 3/31/2018 • 93% of the portfolio is floating rate • 98% of liabilities are fixed rate Fixed 7% • Favorable asset & liability mix The weighted average maturity of assets is 2.8 years
Slide 7: Debt Maturity Profile
Debt Maturity Profile • MCC’s liabilities are well diversified with a staggered debt maturity profile $200.0 $150.0 SBA Debenture Notes $5.03 USD in Millions $100.0 2021 2023 SBA Notes Notes Debenture (MCX) (MCV) Notes $50.0 $74.02 $89.92 $95.03 ING SBA Revolver 2024 2024 2024 2024 Debenture $12.01
Slide 8: Attractive Industry Dynamics
Attractive Industry Dynamics
Slide 9: The Opportunity – Large Target Market
The Opportunity – Large Target Market • Standalone US middle market would rank as the 3rd largest global economy • Private equity dry powder continues to be elevated at all-time highs Top GDPs1 Revenue: Private Equity Dry Powder2 $500M - $1B $1,087 $16.8 $1,000 $891 $754 $674 $688 $9.2 $596 $559 $6.
Slide 10: The Opportunity – Large Number of Borrowers
The Opportunity – Large Number of Borrowers Number of Businesses by Market1 39,000 Revenue: 2,000 $500M - $1B Revenue: $50M - $500M Target Market: 37,000 2,600 Revenue: $1B+ Large Market Middle Market 1. U.S. Census Bureau, 2007 Economic Census. Page 10
Slide 11: The Opportunity – Bank Consolidation
The Opportunity – Bank Consolidation • Banks continue to shift toward large borrowers • Regulatory environment is a headwind for banks in the middle-market 12,000 80% U.S. FDIC Insured Commercial Banks 11,000 70% Bank Participation in Levered Loan Market (%) 10,000 60% 9,000 50% 8,000 40% 7,000 30%
Slide 12: Regulatory Pressure Continues for Banks
Regulatory Pressure Continues for Banks Level 3 Assets for Financial Firms1 Total Assets of Publicly Traded BDCs2 $200 $681 $150 Large Opportunity as Banks Continue to Exit Level 3 Assets $100 $50 $152 $0 2003 2005 2007 2009 2011 2013 2015 1Q17 3Q17 Illustrative 2007 3Q17 Potential for Growth Total
Slide 13: MCC Financial Results
MCC Financial Results
Slide 14: Performance Overview
Performance Overview • Net investment income of $0.07 per share for the quarter ending 3/31/2018 • Net asset value of $7.02 per share for the quarter ending 3/31/2018 • Quarterly dividend of $0.10 per share for the quarter ending 3/31/2018 • 10.4% portfolio yield as of 3/31/20181 • Funded $70.1M in
Slide 15: Financial & Portfolio Highlights
Financial & Portfolio Highlights Financial Highlights 3/31/18 12/31/17 9/30/17 6/30/17 3/31/17 12/31/16 Net investment income per share $ 0.07 $ 0.13 $ 0.16 $ 0.18 $ 0.15 $ 0.19 Net realized gains (losses) per share $ (0.43) $ - $ (0.22) $ (1.01) $ - $ (0.12) Loss on extinguishment of Debt $ (0.02)
Slide 16: Select Financial & Portfolio Information
Select Financial & Portfolio Information As of and for the Three Months Ended (dollars in millions, except per share data) 3/31/18 12/31/17 9/30/17 6/30/17 3/31/17 Net investment income per share - basic & diluted 0.07 0.13 0.16 0.18 0.15 Net realized and unrealized gains per share - basic & diluted
Slide 17: Balance Sheet
Balance Sheet As of (dollars in thousands, except per share data) 3/31/18 12/31/17 9/30/17 6/30/17 3/31/17 ASSETS (Unaudited) (Unaudited) (Audited) (Unaudited) (Unaudited) Investments at fair value Non-controlled/non-affiliated investments $ 480,365 $ 565,542 $ 575,496 $ 608,166 $ 717,295 Affiliated
Slide 18: Corporate Information
Corporate Information Board of Directors Corporate Officers Research Coverage Corporate Headquarters BROOK TAUBE BROOK TAUBE JANNEY CAPITAL MARKETS 280 Park Avenue, 6th Floor East Chairman & Chief Executive Officer Chairman & Chief Executive Officer Mitchel Penn, CFA – (410) 583-5976 New York, NY 10