AFCG 2026年第2四半期決算説明会：NAV上昇、パイプラインは13億ドルに到達

主な要点

• AFCGの2026年第2四半期の純投資利益は350万ドル（加重平均普通株式1株当たり0.15ドル）となり、1株当たり0.05ドルの配当金の3倍のカバー率を確保しました。
• 1株当たり純資産価値（NAV）は前四半期比で0.35ドル増加し、8.25ドルとなりました。この増加には、NAVを下回る価格での自社株買いによる1株当たり0.17ドルの増加（アクレッション）が含まれています。
• 6月30日時点の投資ポートフォリオの公正価値は17社で2億9,000万ドルとなり、3月31日時点の15社・2億7,900万ドルから増加しました。すべての投資対象はシニア担保付き第一抵当権設定債権です。
• 未収利息不計上（ノンアクルーアル）ローンを除くポートフォリオの加重平均利回りは13.2%でした。AFCGは当四半期中に1,700万ドルの融資を実行し、年初来ではローアーミドルマーケット向けに約1億200万ドルの新規コミットメントを計上しました。
• 経営陣は、主にスポンサー付き取引において、EBITDAが500万ドルから5,000万ドルのキャッシュフローを創出する借入人を対象とした13億ドルのパイプラインを有していると言及しました。
• ノンアクルーアル資産のリスク露出は、引き続き旧来の大麻関連ローンに集中しています。AFCGは、Debbie、DMA、Justice Grownが関与する資産売却および権利行使の手続きを継続しました。

主要財務データ

事業および運用実績

AFCGは当四半期中に1,700万ドルの融資を実行しました。これには新規ポートフォリオ企業2社への500万ドルと、既存借入人2社への1,200万ドルが含まれます。元金償還および返済額は合計900万ドルでした。

四半期末以降、同社は外来行動療法プラットフォーム向けの2,500万ドルのシニア担保付き融資枠に対し700万ドルのコミットメントを行い、取引完了時に約300万ドルを実行しました。借入人は北東部で10拠点を運営しており、調達資金は既存負債のリファイナンスや買収資金に充てられます。

経営陣は、一部の貸し手が撤退あるいは大口市場へシフトするなか、ローアーミドルマーケットのプライベート・クレジットは依然として魅力的なリスク調整後機会を提供していると述べました。AFCGは、企業価値およびアセット・カバレッジ、維持条項（メンテナンス・コベナンツ）、レバレッジ・テスト、固定費カバー率保護などを重視しています。

第2四半期中、AFCGは加重平均価格3.29ドルで約83万9,000株の自社株買いを行い、約280万ドルを支出しました。500万ドルの自社株買い枠のうち、約220万ドルが未消化となっています。

四半期末以降、AFCGは担保付きリボルビング融資枠で8,400万ドル、無担保リボルビング融資枠で2,000万ドルを返済しました。

リスクと今後の注視点

経営陣はプライベート・クレジット全般のストレスに言及し、2026年7月時点でフィッチが報告した6%のデフォルト率を引き合いに出しました。資金供給能力の低下は新規ローンの条件改善につながる可能性がある一方で、より広範な信用圧力を反映したものでもあります。

ノンアクルーアルローンは、引き続き旧来の大麻ポートフォリオに集中しています。Justice Grownは2026年5月1日のローン満期後に返済不履行（マチュリティ・デフォルト）となりました。AFCGは統一商事法典（UCC）第9条に基づく抵当権実行手続きを開始し、融資契約、親会社保証、株主保証に基づく救済措置を追求しています。

Debbieに関しては、拘束力のある条件概要書（タームシート）により、追加の2資産を現金収入1,250万ドルで売却することが合意されています。四半期末以降に200万ドルの返金不可の保証金を受領しており、経営陣は2026年中に取引が完了すると見込んでいます。AFCGはローンの参加比率に基づき、売却収入の約80%を受け取る見込みです。

DMAは、6月に規制当局の承認を得た後、7月に3つのディスペンサリー（大麻販売所）のうち2つの売却を完了しました。残り1つのディスペンサリーは事業清算プロセスを進めています。

経営陣は、規制面の進展にもかかわらず、同セクターの株式資本へのアクセスが限られていることや、それに伴う債権投資家のリファイナンスリスクおよび事業再生（リキャピタライゼーション）リスクを理由に、大麻融資に対して慎重な姿勢を維持しています。

アナリスト質疑応答のハイライト

• 新規融資（オリジネーション）のペース：経営陣は、新規融資の実行ペースが引き続き不均衡で不定期なものになると述べました。AFCGは第1四半期に約8,000万ドルを実行したのに対し、第2四半期は減少しましたが、13億ドルのパイプライン内で引き続き案件を進めています。
• 流動性と大型取引：同社は四半期末時点で7,000万ドルを超える投資可能な流動性を報告しました。また、AFCGはSEC（米国証券取引委員会）の共同投資免除措置（コ・インベストメント令）を活用し、関連会社との共同参加や、目標保有規模を超えるリスクエクスポージャーのシンジケーションを行うことが可能です。
• レバレッジ目標：経営陣は、中間目標として負債/株主資本倍率約1.0倍、あるいはそれを上回る水準を目指すと言及しました。
• Sunburn向けローン：借入人は第2四半期中に返済猶予協定の条件を満たし、追加の増資を行うとともにローンの一部返済を実施しました。経営陣は、当ローンの状態が正常化（グッドスタンディング）したと述べました。
• 大麻へのリスク露出：経営陣は、規制を巡る進展はあるものの同セクターの株式調達が引き続き困難であるため、新規の事業活動は依然として大麻以外の分野に注力していると示しました。

決算説明会文字起こし全文

決算説明会の完全なトランスクリプト

経営陣による説明

Operator

Thank you. Good day and thank you for standing by. Welcome to the ASC second quarter 2026 earnings conference call. At this time all participants are in a listen only mode. After the speaker's presentation there will be a question and answer session. To ask a question during this session please Star 1-1 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press Star 1-1 again. be advised that today's conference is being recorded.

I would now like to hand the conference over to your speaker today, Gabriel Katz, Chief Legal Officer. Sir, please go ahead.

Gabe Katz

Good morning, and thank you all for joining AFC's earnings call for the quarter ended June 30th, 2026. I'm joined this morning by Robin Tannenbaum, our President and Chief Investment Officer, Daniel Neville, our Chief Executive Officer, and Brandon Hetzel, our Chief Financial Officer. Before we begin, I would like to note that this call is being recorded. Replay information in our July 17th, 2026 press release and is posted on the investor relations portion of AFC's website at afcbdc.com, along with our second quarter 2026 earnings release and investor presentation. Today's conference call includes forward-looking statements and projections that reflect the company's current views with respect to, among other things, market developments, anticipated portfolio yield and financial performance and projections in 2026 and beyond. These statements are subject to inherent uncertainties in predicting future results. Please refer to AFC's most recent period filings with the SEC, including our quarterly report on Form 10Q filed earlier this morning for certain conditions and significant factors that could cause actual results to differ materially from these forward-looking statements and projections.

Today's call will begin with Robin providing an overview of the lending environment and our results. Dan will then provide and update on our portfolio and pipeline. Finally, Brandon will conclude with a summary of our financial results before we open the line for Q&A. With that, I will now turn the call over to our President and Chief Investment Officer, Robin Tannenbaum.

Unknown Speaker

Thanks, Gabe, and good morning, everyone. We appreciate you joining us to discuss AFC's second quarter 2026 earnings. Before turning to our results, I wanna provide some context on the broader lending environment. As many of you know, the private credit ecosystem is experiencing stress. Default rates across private credit have risen notably. with Fitch reporting a 6% default rate as of July 2026, and Proskauer's Private Credit Default Index tracking a similar upward trend. Banks, while not direct lenders to much of the middle market, hold indirect exposure through leveraged facilities extended to private credit funds, and that exposure is now drawing increased In response to broader market stress, we are seeing a pullback in available capital, particularly in the lower middle market where many lenders have either exited or shifted up market to support their existing portfolios. As a result, we continue to believe the lower middle market offers one of the most compelling risk adjusted return investment opportunities opportunities in private credit today.

Competition remains rational in our segment. Unlike the upper middle market where larger direct lending funds continue to compete aggressively on pricing, leverage, and documentation, the lower middle market continues to reward lenders with sponsor relationships, internal sourcing capabilities, and the ability to execute quickly. For AFC, this environment is exciting and what we are prepared for. We believe this dislocation is creating a compelling vintage for new originations. The loans we originate are generally supported by both enterprise value and asset coverage. We continue to negotiate comprehensive maintenance covenant packages including leverage and fixed charge coverage test. Our pipeline continues to reflect that opportunity and we are being thoughtful in how we deploy capital.

In contrast, much of the upper middle market remains characterized by covenant-like structures with fewer lender protections and more aggressive EBITDA adjustments. Now, turning to our results. For the second quarter of 2026, AFC generated net investment income of 15 cents per weighted average share of common stock. Additionally, the Board of Directors declared a second quarter distribution of 5 cents per share, which was paid on July 15, 2026 to shareholders of record on June 30, 2020. last quarter we announced a share repurchase program. During the quarter we repurchased about $2.8 million, which was 17 cents accretive to net asset. We have approximately $2.2 million remaining in our $5 million share buyback program. Year to date, we have deployed approximately $102 million in new lower middle market commitments. Our pipeline remains well diversified across industries, and we tend to avoid sectors where we believe cyclicality or disruption creates an unfavorable risk profile.

I will now turn it over to Dan to discuss our.

Daniel Neville

Portfolio. Thanks Robin and good morning everyone. I'll start with the portfolio and our investment activity for the quarter, then provide an update on our legacy positions and our pipeline. As of June 30th, 2026, the fair value across our investment portfolio was $290 million across 17 portfolio companies. compared to $279 million across 15 portfolio companies at March 31st. 100% of the portfolio is in senior secured first lien debt investments, and the weighted average yield excluding non-accrual loans was 13.2%. During the quarter, we funded $17 million, including $5 million to two new portfolio companies and $12 million to two existing portfolio companies. Fundings were eight million against nine million dollars of amortization and repayments. Subsequent to quarter end, we committed $7 million to a $25 million senior secured credit facility for a leading outpatient behavioral health platform with $3 million funded at close. The use of proceeds was to refinance existing debt and support future growth through acquisitions and is consistent with our expanded lower middle market mandate.

Turning to non-accrual loans, which remain concentrated in the Legacy Cannabis book. Regarding Debbie, the receiver has continued the liquidation process. During the quarter, Debbie entered into a binding term sheet to sell two additional assets of Debbie for $12.5 million in cash proceeds. Subsequent to quarter end, Debbie earned a $2 million non-refundable deposit on the purchase and we expect the transaction to close this year. Inception to date, we have received $58 million of principal repayment on the Debit Loan. Regarding DMA, the receivers continued the liquidation process and closed the sale of two of the three dispensaries subsequent to quarter end. Moving on to Justice Grown. The Justice Grown loan matured on May 1, 2026, and is in maturity default.

We have commenced Article IX foreclosures and are pursuing our rights and remedies under both the credit agreement including the parent guarantee and the shareholder guarantee. Our collateral includes vertically integrated assets in New Jersey and and three operating dispensaries in Pennsylvania, and a non-operating cultivation facility in Pennsylvania. AFC has engaged SFC advisors to conduct a robust marketing process for these assets, and we encourage any interested buyers to see the notices available on our website and reach out to SFC for additional information. Given the active legal proceedings, we will not comment further on the specifics outside of what is disclosed in our SEC filings. Taking a step back, the portfolio continues to evolve as we make progress towards resolving the legacy cannabis loans on non-accrual and the performing cannabis book amortizes and repays over time. Multiple trends signal that capital demand in the lower middle market is only accelerating as legacy lenders push up market. We will look to redeploy that capital into strong risk-adjusted opportunities in the lower middle market.

Our pipeline remains active with $1.3 billion across a diverse range of industries. We remain focused on cash-flowing borrowers with $5 to $50 million of EBITDA, primarily in sponsored transactions, where we believe we can achieve risk-adjusted returns with strong structural protections. We are maintaining a disciplined approach to underwriting while actively advancing several opportunities through our pipeline. Now, I'll turn it over to Brandon to discuss our financial results in more detail.

Brandon Hetzel

Thank you, Dan. For the quarter ended June 30th, 2026, we generated total investment income of 8.7 million and net investment income of 3.5 million or 15 cents per weighted average share of common stock. This provided three times coverage of our five cent second quarter 2026 distribution. total investment income was 8.7 million compared with 9.8 million in the first quarter the decline primarily reflects 1.8 million of other income recognized in the first quarter that did not recur in the second quarter mainly relating to a 1.5 million exit fee from the bloom repayment excluding these exit fees that are episode investment income increased modestly quarter over quarter driven by higher interest income. Total operating and income tax expenses were $5.2 million compared to $5 million in the first quarter and are presented net of a management fee rebate of approximately $176,000 for the quarter. We ended the second quarter with $364.5 million of principal outstanding spread across 17 loans. As of June 30, 2026, we had total assets of $399.7 million, total net assets of $187.3 million, and our net asset value per share was $8.25. This is an increase of $0.35 per share over the prior quarter. The increase in net asset value per share was driven by net investment income of $0.15 per share. 17 cents per share of accretion from repurchasing shares below net asset value, and an increase in unrealized appreciation on investments of approximately 8 cents per share. and offset by the second quarter distribution of 5 cents per share.

Regarding the share repurchase program, during the quarter, we've repurchased and extinguished approximately 839,000 shares at a weighted average price of $3.29 per share for approximately 2.8 million in the aggregate, Approximately $2.2 million remains available under the $5 million share repurchase program. Turning to the balance sheet, as of June 30, 2026, we had $207 million of debt outstanding consisting of $110 million drawn under our secured revolving credit facility. $20 million under our unsecured revolving credit facility, and $77 million of senior unsecured notes outstanding. Subsequent to quarter end, the company repaid $84 million and $20 million, respectively, on the company's outstanding debt obligations under the secured revolving credit facility and the unsecured revolving credit facility. The weighted average interest rate on our debt outstanding was 6.3% for the quarter. Net debt to equity was 1.1 times as of June 30th compared to 1.09 times at March 31st, and net debt to equity was 0.53 times compared to 0.48 times respectively. Our asset coverage ratio was 190%, which provides meaningful cushion against the 150% requirement applicable to us. We ended the quarter with $106.5 million of cash and cash equivalents.

This provides substantial liquidity for new investments and other capital allocation opportunities. On distributions, we paid the second quarter distribution of $0.05 per common share on July 15, 2026 to shareholders of record as of June 30, 2026.

With that, I will now turn it back over to the operator to start the Q&A.

Operator

[Operator Instructions]

Our first question is going to come from the line of Erin Gray with a line Alliance Global Partners. Your line is open. Please go ahead. Hi, thank you very much for the questions here. First one for me, just in terms of activity, can certainly appreciate incremental funding for existing borrowers, but as we think about new borrowers, today you had this participation in July, but how best to think about the pipeline relative to, I don't know, know your ability to execute on opportunities in the near term. It does seem like there's been a little bit maybe of a slowdown considering the fast start you got off to in January, February. So just in terms of that's partially the environment, maybe a bit longer of a process, some timing, any color there would be appreciated. Thank you.

Daniel Neville

Thanks for the question. Dan, do you want to take that one? Yes, sure. Thanks, Erin. So we have a very active pipeline, $1.3 billion in the pipeline, and I think we're happy with the quality of the opportunities that we're seeing in the pipeline. the pricing that we're seeing, et cetera. But originations are going to be lumpy. You saw in Q1 we did about $80 million. We did less in Q2. And so I think that we are advancing a bunch of opportunities through the pipeline and are seeing good looks and we'll look to continue the momentum over the course of the year but it will be lumpy and episodic just given the deals that were hunting.

Unknown Speaker

I appreciate that. That's helpful. And then just in that line, given the potential lumpiness of this and you could have some potential larger opportunities, how can we do that? comfortable do you feel regarding your liquidity position today to ensure that you're able to capitalize on potential larger opportunities that could come in the pipeline? Thanks.

Unknown Speaker

Dan, do you want to do that one, or Brandon?.

Brandon Hetzel

Yes, sure. Yes, no, we, as stated in my remarks, you know, at the end of the quarter in our investment presentation we have over $70 million in liquidity available to deploy. So we're very comfortable with our liquidity position.

Daniel Neville

Yes, and I'd say in terms of some of the larger opportunities, too, as well, outside of AFC, we do operate under a co-investment relief order with the SEC, which allows us to potentially participate with other affiliates under the TCG platform. And so one of the opportunities that you saw in July, we participated alongside an affiliate. And if there are larger opportunities out there that we're chasing, that's also an option to deploy into larger opportunities and there's also the opportunity to syndicate deals syndicate deals that are above kind of our target hold threshold as well.

Unknown Speaker

Okay, great, thanks. Last question from me. I know you said prepare remarks, right? Nothing further, you know, from some of the SEC filings regarding justice, but just maybe... to clarify things now that you know you have the process in place, you talked about prepared remarks. There's nothing outstanding or or maybe that's a legacy operators are doing you know that could keep you from you know going through you know what the sale process and for you to build the you know retrieve as much as possible from those assets just any clarification on that you know would be helpful.

Daniel Neville

Thanks. Gabe or Dan? Yes, Aaron, we have pretty extensive disclosures in the SEC filings. I'd encourage you and the investors to read through that. Outside of that, we just are not going to be able to comment given the active status of litigation there.

Operator

Fair enough. Thank you very much. I'll jump back in the queue. Thank you. And one moment for our next question. Our next question comes from the line of Pablo Zuynik with Zuynik and Associates. Your line is open. Please go ahead.

Unknown Speaker

Thank you and good morning everyone. Dan, can you maybe go back to your comments in prior quarters about your views about lending in the cannabis industry? I mean, pretty much you have implied that you remain very cautious there and that pretty much all the new activity will be outside of cannabis, but we do have a more favorable regulatory backdrop, right? So do you want to expand on that please?.

Daniel Neville

Sure. Thanks for the question, Pablo. I think what we have said in prior quarters and in prior years is that access to equity capital in the cannabis industry was challenged, and I think unfortunately it still continues to be challenged. There have been some changes been a lot of milestones that people have been hoping for for a while that have been long overdue, like the rescheduling of medical cannabis, which happened, I think, quicker relative to where people thought it was going to be a few months ago. And the pending potential rescheduling of adult use cannabis. We've also had, I think, two companies now, Uplift and NYSE, and unfortunately you haven't seen a lot of activity on the equity capital side of things associated with it. I think it's still a difficult environment to raise equity capital. And as a result, I think we have concerns about the industry being continued to be funded kind of on the debt side of things without having access to equity capital.

And that also impacts the re-offability of these borrowers, these are not straightforward businesses, there can be some volatility in the industry in the regulatory environment. And a lack of re-upability on the equity side of things to deal with those problems is problematic to debt investors. And so we applaud the progress. I think there has been good progress. but the lack of equity capital is very problematic for us.

Unknown Speaker

Thank you. That's a good caller. Maybe just going back to Debbie and DMA, in the case of Debbie, you said that you are expecting the assets to be sold for $12.5 million in the second half and that a deposit was already taken on the transaction for $2 million. So that pretty much confirms that the transaction is in place. I just want to make sure I hear that right. I know I can go back to the transcript, and whether you have access to the full amount, or are there other parties that have access to those proceeds also? Thanks.

Daniel Neville

Yes, so that you heard correct. So it was a binding term sheet that was signed up, subject to $2 million cash hard deposit. So our expectation is that that closes sometime this year. That would be for twelve point five million dollars of total cash proceeds. Um We are a participant in the Debi loan, but I believe we have 78% or somewhere around 80% of our participation in Debi. 80% of the proceeds would be distributed to us on a pro-rata basis.

Unknown Speaker

thank you that's good color and the same question on DMA and I'm sorry if I misheard you said that two of the three dispensaries closed the transaction or they closed operations I'm just trying another mechanism to the number you have that luckily that transaction closed the dispensaries did not close so.

Daniel Neville

We had two of the three dispensaries under APA previously. That sale received regulatory, Both of those sales received regulatory approval in June and both of those transactions closed in July. And I think in terms of the rest of the transaction in the wind down of DMA, we have one more to go. And you can look at our new BDC filings to see where our mark is on that.

Unknown Speaker

Right. And again, apologies if there's more people on the Q&A line here, Hugh. In terms of the new loan you made in the third quarter, can you give more color on the amount? I think you said 17 million or maybe I'm misheard. And more color on the company itself, you know, if you can, thank you.

Daniel Neville

In the second quarter, Pablo, you were asking? The loan in the second quarter? Unless I misheard, I thought that you said subsequent to the quarter, you also funded a new loan, or maybe I misheard that. Sure, yep, yes, that's correct. So it's a, we talked a little bit in the script, it's a, behavioral health roll up focused in the northeast. They have 10 locations throughout the northeast and do a mix of do a mix of talk therapy, medication management, as well as some additional add-ons, both in an outpatient setting as well as a partial hospitalization setting. So it's an industry, you know, we had talked about previously, focusing on industries that are more predictable, recession resistant, have good cash flow characteristics and highlighted healthcare is one of the areas we'd be focused on. And so we've done a couple transactions in and around that space, one in the insurance space in Q1 and this deal in Q3. And Pablo, the size of that deal was we committed $7 million and funded $3.1 million on closing.

Unknown Speaker

Thank you. That's good color there. And then look, I haven't gone through a thank you in full, only partially. I think a while ago you said that sunburn was in NANACRUELS. Just a reminder of where you are with the sunburn loan, which I think was renamed under another borrower's name, but just some comments.

Daniel Neville

in the last quarter there. Oh sure, so we had some disclosure last quarter there was. We entered into a forbearance agreement with Sunburn that was conditioned on the company raising additional equity capital as well as some other conditions. The company fulfilled those obligations in Q2 and we received a pay down associated with with the loan and there was additional equity capital that went into the business for some expansion that they're looking to do. and the company fulfilled the forbearance obligations and the loan is in good standing.

Unknown Speaker

Thank you. And the very last one, I mean, obviously, we know how much credit you have available, credit lines you have available, but right now you're at net debt to equity at 0.53. What are you comfortable with? I understand the average on BDCs is like 1.3 times, but what are you comfortable with?.

Daniel Neville

Sure. I think on our side of things, we've always said that somewhere around one times or potentially above that, but I think one times is a good intermediate target for us.

Unknown Speaker

That's good. Thank you. That's all for me. Thank you.

Operator

Thank you, and I'm showing no further questions, and I'd like to hand the conference back over to Dan Neville for closing remarks.

Daniel Neville

Thanks everyone for joining us today and we look forward to keeping you updated on future progress.

Operator

This concludes today's conference call. Thank you for participating and you may now disconnect. Everyone have a great day.