AFCG 2026년 2분기 실적 콘퍼런스 콜: NAV 상승, 파이프라인 13억 달러 달성

핵심 요약

• AFCG는 2026년 2분기 순투자수익 350만 달러(가중평균 보통주 1주당 0.15달러)를 기록했으며, 이는 주당 0.05달러의 배당금을 3배 상회하는 수준이다.
• 주당 순자산가치(NAV)는 전분기 대비 0.35달러 증가한 8.25달러를 기록했다. 이러한 증가에는 NAV 미만 가격으로 자사주를 매입함에 따라 발생한 주당 0.17달러의 가치 증분이 포함됐다.
• 6월 30일 기준 투자 포트폴리오의 공정가치는 17개 기업에 걸쳐 2억 9,000만 달러로, 3월 31일 기준 15개 기업 2억 7,900만 달러에서 증가했다. 모든 투자는 선순위 담보부 1순위 채무였다.
• 미수이자 미계상 대출(non-accrual loans)을 제외한 가중평균 포트폴리오 수익률은 13.2%였다. AFCG는 이번 분기 동안 1,700만 달러를 집행했으며, 연초 이후 약 1억 200만 달러 규모의 신규 하위 중소기업 자금 공급 약정을 체결했다고 밝혔다.
• 경영진은 주로 스폰서 주도 거래를 중심으로 EBITDA가 500만 달러에서 5,000만 달러 사이인 현금흐름 우수 차주 대상 13억 달러 규모의 파이프라인을 보유하고 있다고 설명했다.
• 미수이자 미계상 익스포저는 기존 대마초 관련 대출에 계속 집중되었다. AFCG는 데비(Debbie), DMA, 저스티스 그로운(Justice Grown)과 관련된 자산 매각 및 집행 절차를 이어갔다.

핵심 재무 데이터

사업 및 영업 실적

AFCG는 이번 분기 동안 신규 포트폴리오 기업 2곳에 500만 달러, 기존 차주 2곳에 1,200만 달러 등 총 1,700만 달러의 자금을 집행했다. 상환 및 분할 상환 금액은 총 900만 달러였다.

분기말 이후 동사는 외래 정신건강 플랫폼을 위한 2,500만 달러 규모의 선순위 담보부 신용공여 한도 중 700만 달러를 약정하고, 종결 시점에 약 300만 달러를 집행했다. 차주는 미 북동부 지역에서 10개 지점을 운영하고 있으며, 조달 자금은 기존 부채 리파이낸싱 및 인수합병(M&A) 지원에 사용될 예정이다.

경영진은 일부 대출 기관의 이탈이나 상위 시장 이동으로 인해 하위 중소기업 사모사채(private credit)가 여전히 매력적인 위험조정 기회를 제공하고 있다고 밝혔다. AFCG는 기업가치 및 자산담보비율, 유지 커버넌트, 레버리지 테스트, 고정비용 보상비율 보호 조항을 강조하고 있다.

2분기 동안 AFCG는 가중평균 가격 3.29달러에 약 83만 9,000주를 매입하며 약 280만 달러를 지출했다. 총 500만 달러 규모의 자사주 매입 승인액 중 약 220만 달러가 남아있다.

분기말 이후 AFCG는 담보부 회전신용공여 한도에서 8,400만 달러, 무담보 회전신용공여 한도에서 2,000만 달러를 상환했다.

리스크 및 주요 점검 사항

경영진은 사모사채 전반의 스트레스를 언급하며 2026년 7월 피치(Fitch)가 발표한 6%의 디폴트율을 인용했다. 자금 공급 감소로 신규 대출 조건이 개선될 수 있지만, 이는 동시에 광범위한 신용 압박을 반영한다.

미수이자 미계상 대출은 기존 대마초 포트폴리오에 여전히 집중되어 있다. 저스티스 그로운(Justice Grown)은 2026년 5월 1일 대출 만기 도래 후 만기 디폴트 상태에 진입했다. AFCG는 아티클 IX(Article IX) 담보권 행사 절차에 착수했으며 여신협약, 모회사 보증 및 주주 보증에 따른 구제 절차를 진행 중이다.

데비(Debbie)의 경우, 1,250만 달러의 현금 수입을 거두는 2개의 추가 자산 매각에 대한 구속력 있는 조건가계약서(term sheet)가 체결되었다. 분기말 이후 환불 불가능한 계약금 200만 달러를 수령했으며, 경영진은 2026년 중 거래가 종결될 것으로 예상하고 있다. AFCG는 대출 참여 지분에 따라 매각 대금의 약 80%를 수령할 것으로 예상한다.

DMA는 6월 당국의 승인에 따라 7월에 소유 판매점 3곳 중 2곳의 매각을 완료했다. 나머지 1곳의 판매점은 청산 절차가 진행 중이다.

경영진은 규제 진전에도 불구하고 대마초 분야 대출에 대해 신중한 태도를 유지하고 있으며, 해당 산업의 제한적인 자기자본 조달 여건과 이로 인해 채권 투자자가 안게 되는 리파이낸싱 및 자본재조정(recapitalization) 리스크를 원인으로 꼽았다.

애널리스트 Q&A 주요 내용

• 신규 대출 집행 속도: 경영진은 신규 대출 집행이 고르지 않고 불규칙하게 진행될 것이라고 밝혔다. AFCG는 1분기에 약 8,000만 달러를 집행했으나 2분기에는 이보다 적은 금액을 집행하는 한편, 13억 달러 규모의 파이프라인 내 기회 요인들을 지속적으로 추진하고 있다.
• 유동성 및 대형 거래: 동사는 분기말 기준 7,000만 달러 이상의 투입 가능한 유동성을 보유하고 있다고 밝혔다. AFCG는 또한 SEC의 공동 투자 면제 승인을 활용해 계열사와 함께 참여하거나 목표 보유 규모를 초과하는 익스포저에 대해 신디케이트를 구성할 수 있다.
• 목표 레버리지 비율: 경영진은 약 1.0배의 부채비율(또는 그 이상)을 중간 목표치로 제시했다.
• 썬번(Sunburn) 대출건: 차주는 2분기 중 유예 협약 조건을 충족하고 추가 지분 자금을 조달했으며 대출 일부를 상환했다. 경영진은 해당 대출이 현재 정상 상태라고 밝혔다.
• 대마초 익스포저: 경영진은 규제 관련 진전에도 불구하고 해당 부문의 지분 자금 조달이 계속 어렵기 때문에 신규 영업 활동은 대마초 이외 분야에 계속 집중할 것임을 내비쳤다.

실적발표 콘퍼런스 콜 전문

전체 실적 발표 컨퍼런스 콜 녹취록

경영진 발표

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.