Sound Point Meridian Capital, Inc. (NYSE: SPMC, SPMA), a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the “Company”), today announced results for the third fiscal quarter ended December 31, 2024.

THIRD FISCAL QUARTER ENDED DECEMBER 31, 2024 RESULTS

  • Net asset value per share of common stock was $20.52 as of December 31, 2024.
  • Net investment income (“NII”) was $12.5 million, or $0.62 per share of common stock, comprised of $20.0 million of investment income, or $0.99 per share of common stock and $7.5 million of expenses, or $0.37 per share of common stock.
  • 97% of NII was recurring GAAP income from collateralized loan obligation (“CLO”) equity and new issue warehouse income.
  • Realized gain on investments was $2.0 million, or $0.10 per share of common stock.
  • Unrealized gain on investments was $17.7 million, or $0.87 per share of common stock.
  • GAAP net income was $32.2 million, or $1.59 per share of common stock.
  • Issued 2.3 million shares of 8.0% Series A Preferred with net proceeds of $55.8 million.
  • As of December 31, 2024, the weighted average effective yield of the Company’s CLO equity portfolio, based on amortized cost, was 15.2%.1
  • As of December 31, 2024, on a look-through basis, and based on the most recent trustee reports received by such date:
    • The Company, through its CLO investments, had indirect exposure to approximately 1,483 unique corporate obligors.
    • The largest look-through obligor represented 0.6% of the loans underlying the Company’s CLO debt and equity portfolio.
    • The top ten largest look-through obligors together represented 4.1% of the loans underlying the Company’s CLO debt and equity portfolio.

FOURTH FISCAL QUARTER PORTFOLIO ACTIVITY AND UPDATES THROUGH JANUARY 31, 2025

  • Received $16.6 million of cash distributions from the Company’s investment portfolio.2
  • Deployed $26.7 million in two new CLO equity positions with a GAAP yield of 17.2%.
  • Declared a monthly distribution of $0.25 per share on the Company’s common stock, a 4.2% increase from the prior monthly distribution of $0.24 per share, to be paid on each of April 30, 2025, May 30, 2025, and June 30, 2025.
  • Declared dividends of $0.16667 per preferred share in April, May and June 2025. 

CONFERENCE CALL

The Company will host a conference call at 10:00 a.m. (Eastern Time) today to discuss these results. All interested parties are welcome to participate in the conference call via the below:

Date/Time:

Wednesday, February 12, 2025 – 10:00 a.m. ET

 

 

Participant Dial-In Numbers:

 

(United States):

(800) 549-8228

(International):

(646) 564-2877

To access the call, please dial-in approximately five minutes before the start time and, if asked, provide the operator with Conference ID “SOUNDFQ3”.

An accompanying slide presentation is available in pdf format via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com/).

The call will also be simultaneously webcast over the internet via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com). Please go to the “Events and Presentations” section of the Company’s website at least 15 minutes prior to the call to register for the call and download and install any necessary audio software.

About the Company

The Company is an externally managed, non-diversified closed-end management investment company. The Company’s 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 (“CLO”) equity and mezzanine tranches of predominately U.S. dollar-denominated CLOs backed by corporate leveraged loans issued primarily to U.S. obligors. The Company is externally managed and advised by Sound Point Meridian Management Company, LLC, a Delaware limited liability company. For additional information, visit https://www.soundpointmeridiancap.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

1 Weighted average effective yield is based on investments’ amortized cost and expected future cash flows as of the applicable period end.

2 “Cash distributions” refers to the quarterly distributions received by the company from its CLO equity investments.

Investor Relations:

Julie Smith – Sound Point Capital (833) 217-6665 ir@soundpointmeridiancap.com www.soundpointmeridiancap.com

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