For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Q: Is the SLF (Senior Loan Fund) in a runoff mode given the decrease in fair value? A: Mick Solimene, CFO, clarified that the SLF's fair market value was actually flat quarter over quarter. The focus has been on reducing leverage while maintaining dividends. The SLF represents about 6.8% of MRCC's portfolio, and they are evaluating market conditions to determine the right time to reenter the market.

Q: Why is there a discrepancy in the valuation of the second lien debt and preferred equity for Education Corporation of America? A: Mick Solimene explained that the difference is due to the recovery waterfall. The debt position is accruing fees and interest above cost, while the preferred equity is at the bottom of the recovery waterfall, resulting in a zero fair value.

Q: Will the third quarter EPS cover the dividend given the fee waiver expectations? A: Mick Solimene confirmed that they believe the third quarter EPS will cover the dividend.

Q: What is the status of nonaccruals in the portfolio, and is there potential for recovery? A: Mick Solimene stated that nonaccruals represent 1.9% of fair value and 4.8% of cost. They are actively managing these assets with a focus on maximizing long-term recovery. Alex Parmacek added that the nonaccruals are at different stages of turnaround, with some showing positive progress.

Q: How does MRCC plan to manage the competitive environment and maintain its dividend yield? A: Theodore Koenig, CEO, emphasized leveraging their experienced team and originations platform to support incumbent portfolio companies. MRCC aims to continue delivering stable dividends, supported by a predominantly first lien portfolio with an effective yield of nearly 12%.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.