Fidus Investment Corporation (NASDAQ:FDUS) Q1 2024 Earnings Call Transcript

Erik Zwick: Thanks, I agree with you. That’s good to hear. And then the last 1 for me. I think you mentioned in your comments for the 2 existing non-accruals, the situations there are improving but remain at high risk. Wondering if you could just — maybe provide a little bit more color to the term and improving if it’s kind of the underlying financial metrics and trends at the companies or just progressing towards some sort of resolution? And what you’re kind of referring to there with that comment?

Ed Ross: Sure. Great question. The — what I’m referring to there is really the EBITDA level. So EBITDA levels in both cases are growing and improving on current basis and on a last 12-month basis and in a meaningful way. But at the same time, these businesses had some idiosyncratic issues that were meaningful as well. And so the EBITDA performance is improving, we do not expect any quick resolutions or anything like that in either case. And so we’re just managing through kind of the situation, trying to work through an improved outlook in both cases. And I would also say we’ve got supportive equity sponsors in both those cases as well, which is great. There is a lot of work being done to try to improve the overall position of both assets, but we have got ways to go.

Operator: [Operator Instructions] This concludes our question-and-answer session. I would like to turn the conference back over to Mr. Ed Ross for any closing remarks. Please go ahead.

Ed Ross: Thank you, Chuck, and thank you, everyone, for joining us this morning. We look forward to speaking with you on our second quarter call in early August 2024. Have a great day and a great weekend.

Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.