Sound Point Meridian Capital, Inc. (NYSE: SPMC) Announces Financial Results for Quarter Ended September 30, 2024

Sound Point Meridian Capital, Inc., a closed-end management investment company based in New York, has disclosed its financial results for the second fiscal quarter, which concluded on September 30, 2024. The announcement encompasses details of the company’s performance and relevant activities up to November 12, 2024, as outlined in its recent Form 8-K filing with the Securities and Exchange Commission.

The company reported that its net asset value per share of common stock stood at $19.59 as of September 30, 2024. Additionally, the net investment income recorded was $17.5 million, equating to $0.86 per share of common stock, consisting of $25.1 million in investment income and $7.7 million in expenses. There was a realized and unrealized loss on investments amounting to $9.9 million, or a loss of $0.49 per share of common stock, with GAAP net income reported at $7.6 million, or $0.38 per share.

Furthermore, Sound Point Meridian Capital, Inc. shared that it issued an additional 175,000 shares, totaling $3.5 million, related to the overallotment option associated with the IPO. The firm also entered into a $100.0 million “net asset value” revolving credit facility with Canadian Imperial Bank of Commerce (CIBC), expandable to $125.0 million. Notably, the company’s leverage rate was 8.7% as of the end of September 30, 2024.

Regarding the company’s portfolio and look-through basis, the weighted average effective yield of the collateralized loan obligation (“CLO”) equity portfolio, based on amortized cost, was 15.7%. On a look-through basis as of the same date, the company, through its CLO investments, had indirect exposure to approximately 1,532 unique corporate obligors. The largest look-through obligor represented 0.6% of the loans underlying the CLO debt and equity portfolio, with the top ten largest look-through obligors combined accounting for 4.4% of the loans in the portfolio.

The company also reported specific activities, such as receiving $17.1 million in cash distributions from its investment portfolio, increasing its monthly distribution on common stock, and successfully completing a public offering of 8.00% Series A Preferred Shares due 2029, resulting in net proceeds of around $48.2 million after all related expenses.

For investors and stakeholders interested in delving deeper into these financial results, Sound Point Meridian Capital, Inc. will host a conference call at 11:00 a.m. (Eastern Time) today to discuss the outcomes as presented. Details on how to participate in the call can be found on the company’s website.

Please note that this news release may contain forward-looking statements, and all interested individuals are advised to refer to the company’s filings with the Securities and Exchange Commission for a comprehensive overview of the associated risks and uncertainties.

This announcement marks an essential disclosure regarding Sound Point Meridian Capital’s financial standing and recent activities, providing valuable insights for investors and the financial community.

This article was generated by an automated content engine and was reviewed by a human editor prior to publication. For additional information, read Sound Point Meridian Capital’s 8K filing here.

Sound Point Meridian Capital Company Profile

Sound Point Meridian Capital Inc is an externally managed, non-diversified closed-end management investment company. Its investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation equity and mezzanine tranches.