Good day. And welcome to the OFS Capital Corporation Fourth Quarter 2025 Earnings Conference Call. All participants will be in a listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Stephen Altebrando. Please go ahead.

Good morning, everyone, and thank you for joining us. Also on the call today are Bilal Rashid, our Chairman and Chief Executive Officer, and Kyle Spina, the Company's Chief Financial Officer and Treasurer. Before we begin, please note that the statements made on this call and webcast may constitute forward-looking statements as defined under applicable securities laws. Such statements reflect various assumptions, expectations, and opinions by OFS Capital Management concerning anticipated results, are not guarantees of future performance, and are subject to known and unknown risks, uncertainties, and other factors that could cause actual results to differ materially from such statements. The uncertainties and other factors are in some ways beyond management's control, including the risk described from time to time in our filings with the SEC. Although we believe these assumptions are reasonable, any of those assumptions could prove incorrect, and as a result, the forward-looking statements based on those assumptions also could be incorrect. You should not place undue reliance on these forward-looking statements. OFS Capital Corporation undertakes no duty to update any forward-looking statements made herein, and all forward-looking statements speak only as of the date of this call. With that, I will turn the call over to Chairman and Chief Executive Officer, Bilal Rashid.

Thank you, Stephen. Yesterday, we announced our fourth quarter earnings. Net investment income totaled $0.20 per share, down from $0.22 per share in the prior quarter. The decline was primarily driven by a lower net interest margin resulting from higher interest rates on our new unsecured notes. These notes refinanced our existing debt that was issued in a historically low interest rate environment. In doing so, we were able to meaningfully extend the maturity of our debt. In addition, the interest rates on our loan portfolio have been impacted by the Fed's continued reduction in benchmark rates, which also had an effect on our interest margin. Our net asset value at December 31 was $9.19 per share compared to $10.17 per share in the prior quarter. The decline was primarily due to further markdowns of a couple of nonperforming loans. In addition, we experienced unrealized depreciation on our CLO equity holdings due to spread tightening in the underlying loan collateral. Overall, we believe our credit portfolio is stable. During the quarter, we placed one loan on nonaccrual; however, we placed one loan back on accrual status following the completion of a restructuring transaction. While we remain committed to preserving capital, we continue to be focused on improving our net investment income over the long term. This includes our efforts to monetize our minority equity position in Fansteel, our largest position in the portfolio, with a fair value of approximately $79,400,000 at quarter end. We are encouraged by the company's continued operational momentum and, in our view, believe its long-term outlook remains compelling. A successful exit could improve net investment income and reduce portfolio concentration. At the same time, we remain disciplined in balancing the timing of a potential exit with the realization value of the asset in order to maximize…

Thanks, Bilal. Good morning, everyone. As Bilal mentioned, OFS Capital Corporation posted net investment income of $2,700,000, or $0.20 per share, for the fourth quarter. It was down $0.02 per share from the third quarter. Top line income decreased $1,200,000 quarter over quarter, partially offset by a $937,000 decrease in total expenses, resulting in the decline in net investment income. We announced that we are maintaining our quarterly distribution at $0.17 per share for 2026. At December 31, the quarterly distribution rate represented a 14.3% annualized yield based on the market price of our common stock. While we concentrate on preserving capital, we remain focused on improving our long-term returns as we continue exploring avenues to monetize our equity investment in Fansteel. Our net asset value per share decreased by approximately 10% ($0.98) this quarter to $9.19. As Bilal described, the decline in our investment portfolio at fair value was most pronounced in a few loans performing below expectations. We also observed more meaningful net unrealized appreciation in our CLO equity holdings, totaling $3,200,000, attributable to spread tightening in the underlying loan collateral. We placed one loan on nonaccrual status during the quarter, representing 1.2% of the total portfolio at fair value. However, we placed one loan back on accrual status during the quarter, representing 1.1% of the total portfolio at fair value, following the completion of a restructuring transaction. Additionally, after quarter end, we exited one of our long-time nonaccrual loans for a partial recovery. Overall, our loan portfolio at fair value was relatively stable quarter over quarter based on our internal credit ratings. At quarter end, our regulatory asset coverage ratio was 156%, a decrease of one percentage point from the prior quarter. As Bilal described, during the quarter, we continued the repayment of our 4.75% unsecured notes,…

Thank you, Kyle. In today's uncertain economic environment, we remain focused on preserving capital and strengthening our balance sheet. As we mentioned, we have extended the maturities of our debt, which now matures between 2028 and 2031. We expect that this will give us operational flexibility over the coming years. As we look ahead, we are focused on defensively positioning our balance sheet by continuing to reduce our overall debt, building upon the $18,800,000 in debt reduction during the quarter. We believe our loan portfolio remains diversified across multiple industries and is well positioned to withstand this market. We continue to maintain our focus on investing higher in the capital structure. As with prior quarters, we remain focused on increasing our net investment income over the long term, specifically through our efforts to monetize certain noninterest-earning equity positions, including our investment in Fansteel. Our team's long-standing experience and investment discipline has driven consistent results. Since 2011, the BDC has invested more than $2,000,000,000 with an annualized net realized loss of just 0.25%, while continuing to generate attractive risk-adjusted returns on our portfolio. As always, we will continue to rely on the size, experience, and reputation of our adviser. With a $4,000,000,000 corporate credit platform and affiliation with a $32,000,000,000 asset management group, our adviser brings deep credit experience and long-standing banking and capital markets relationships. Our corporate credit platform has gone through multiple credit cycles over the last 25-plus years. Our adviser and affiliates are also strongly aligned with shareholders as they maintain an approximately 23% ownership in the BDC. With that, operator, please open up the call for questions.

Thank you. We will now begin the question and answer session. Showing no questions. This will conclude our question and answer session as well as the conference call. Thank you for attending today's presentation. You may now disconnect.