Good day, ladies and gentlemen, and thank you for standing by. Welcome to SuRo Capital’s Third Quarter 2020 Earnings Call. During today’s presentation, all parties will be in a listen-only mode. Following the presentation, the conference will be opened for questions. This call is being recorded. I’d now like to turn things over to Adam Bates. Please go ahead.

Thank you for joining us on today’s call. I am joined today by the Chief Executive Officer of SuRo Capital, Mark Klein; and Chief Financial Officer, Allison Green. Please note that a slide presentation that corresponds to today’s prepared remarks by management is available on our website at www.surocap.com under Investor Relations, Events & Presentations. Today’s call is being recorded and broadcast live on our website, www.surocap.com. Replay information is included in our press release issued today. This call is the property of SuRo Capital and the unauthorized reproduction of this call in any form is strictly prohibited. I would also like to call your attention to customary disclosures in today’s earnings press release regarding forward-looking information. Statements made in today’s conference call and webcast may constitute forward-looking statements, which relate to future events or future performance or financial condition. These statements are not guarantees of our future performance or future financial condition or results and involve a number of risks, estimates and uncertainties, including the impact of the COVID-19 and any market volatility that may be detrimental to our business, our portfolio companies, our industry and the global economy that could cause actual results to differ materially from the plans, intentions and expectations reflected in or suggested by the forward-looking statements. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including, but not limited to, those described from time to time in the company’s filings with the SEC. Management does not undertake to update such forward-looking statements unless required to do so by law. To obtain copies of SuRo Capital’s latest SEC filings please visit our website at www.surocap.com or the SEC’s website at sec.gov. Now I would like to turn the call over to Mark Klein.

Thank you, Adam. We are pleased to share the results of SuRo Capital’s third quarter 2020. These are obviously unprecedented times we are living through, and society is facing tremendous challenges. We at SuRo Capital would like to again thank the frontline workers and responders who have put themselves at risk throughout the COVID-19 pandemic. We are fortunate to report that our employees and their families remain healthy and continue to function remotely. I will discuss how our portfolio is fair during the ongoing COVID-19 pandemic and volatility surrounding the election and highlight how a few of our larger positions have even experienced degrees of business acceleration during these uncertain times. To conclude, I will hand the call over to Allison Green for a brief financial overview. At the conclusion of our remarks, we will open the call for questions. Let’s start with Slide 3. This quarter, SuRo Capital reported its highest dividend adjusted net asset value per share since September of 2015. At September 30, 2020, net asset value was $12.46 per share, adjusted for dividends declared during the quarter of $0.40 a share and increase from $11.84 per share at June 30, 2020. Net asset value totaled approximately $253 million at quarter’s end compared to $192 million in the second quarter. Please turn to Slides 4, 5 and 6 for a review of notable developments in our investment portfolio in the third quarter and subsequent to quarter’s end. We continue to take initiatives to drive shareholder value. On October 28, SuRo Capital’s Board of Directors declared a $0.25 per share dividend to stockholders. This dividend was driven by year-to-date monetizations in SuRo Capital’s investment portfolio and has made in addition to the $0.25 per share dividend declared by SuRo Capital’s Board of Directors on September 25 and paid…

Thank you, Mark. I would like to follow Mark’s update with a more detailed review of our financial results as of September 30, 2020. Our recently declared dividends, the expansion and status of our share repurchase program, the results of our at-the-market offering, our continued expense reduction initiative and our current liquidity position. We are pleased to report we ended the third quarter with an NAV per share of $12.46 adjusted for $0.40 per share and dividends declared during the quarter. It breaks out of NAV per share as of quarter end is shown on Slide 8 and it’s consistent with our financial reporting. In sum, the increase in NAV per share during the third quarter was largely driven by $0.80 per share of net unrealized appreciation of our portfolio investment, approximately $0.24 per share attributable to our at-the-market capital raise and approximately $0.12 per share in net realized gains from the exit or sale of investments in our portfolio. These increases to NAV per share were partially offset by $0.40 per share in dividends declared during the quarter and at $0.13 per share decrease in net investment loss. And in that $0.01 per share decrease attributable to the conversion of 1,780,000 or just under 5% of our 4.75% convertible senior notes due March 2023. On July 29, our board of directors declared a dividend at $0.15 per share paid on August 25 to shareholders of record on August 11. This dividend was related to investment activity in 2019 and brings the total dividends declared related to 2019 investment activity to $0.47 per share. All dividends attributable to 2019 had been categorized as net realized capital gains for tax purposes. On September 25, our board of directors declared a dividend of $0.25 per share paid on October 20 to shareholders…

Thank you. [Operator Instructions] We’ll hear first today from Jon Hickman with Ladenburg.

Hello. Thanks for taking my question. Could you tell us, what you got the – I guess, the raise for Coursera and Course Hero were at $2.5 billion and then $1.1 billion respectively. Could you tell us how – what you have those positions valued at on your as of September 30?

Hi, Jon and thank you for your call and thanks for your ongoing support. As you know we don’t comment on the values of the company simply on our positions and what our positions are work, but not as they relate to total corporate value. With that said, our evaluation metrics, as you know, we utilize among other variables, the last round of evaluation. We overlay other items such as secondary trading and the waterfall and capitals capital structure. So I know I’m not answering your question directly, but typically, our evaluation is something slightly lower or maybe more than slightly lower, but typically lower than the last round that was raised.

Yes. Don’t you put a – like a private discount on that on the last time.

We do a series of things in our evaluation work that I know you and I have discussed in length. But is we apply our heuristics to our evaluations, which include but don’t limited, the last round trading in the secondary markets, if those variables aren’t there, then public comps.

Okay. And then, I think I read recently that Nextdoor was contemplating IPO. Was there anything you say about that that’s already public.

I mean, Jon, there was a Bloomberg article approximately two weeks ago by the SPAC reporter at Bloomberg, who stated that she believed that next door was in conversations with one or several specs evaluations between $4 billion and $5 billion, as a value of the company. That’s what we’ve read. That’s probably what you’ve read and that’s all we know or can comment on.

Okay. And then, I’m sorry, I have one last question. The Blink business model, they make money, they deal directly with the manufacturer and then, so they take a cut between that in the consumer. Is that how they do it?

Yes. But their value proposition predominantly is you as the consumer, when your doctor, wants to recommend pick a drug, that when they ask for your pharmacy, you give them Blink, they then entered into the Blink system. You can then go and determine which pharmacy and you get pricing in which pharmacy you want it to be either delivered from or picked up from. And one of the real advantage is that they provide is that since they work with both the generics, as well as the name brand of equivalents. They get the same pricing, they get the appropriate pricing and the lowest pricing at a given pharmacy, as opposed to having to run around, to go to Walgreens for one thing, and perhaps your local pharmacy for something else.

Question next today from Andrew Harte with BTIG.

Hi, good evening. Good. How are you? Thanks. I’m wondering if you can kind of give us an update on what the pipeline might look like and future credit investments. And then as a follow-up, maybe when we can expect to see some investments in the future, in the – in any SPAC acquisitions, premerger SPAC acquisitions.

Well, obviously, we’ve just - we sort of disclosed, always disclosed in our prepared remarks. We are – we have evaluated in this quarter, the better part of 60 different portfolio companies with a fair amount of them credit opportunities. We the credit work is extensive to have it there it’s bespoke. So we’re creating term sheets to do that, which is a much longer process than an equity being offered at a price or a negotiation on as such. We have several credit investments in various stages of being completed. We have term sheets out on a few of them and we have further more advanced dialogues on some of them. So that said, on the SPAC pipe side, we are very active in looking at those, obviously, there’s been an immense amount of activity in the SPAC from both the underwriting, as well as the announcement of SPAC transactions. We’ve gone down the path on quite, I’d say one, several we’ve gotten very deep down the path on a couple. And we may be able to announce that we’ve completed one or two as we end calendar year.

[Operator Instructions] We’ll hear next from Ron Levine with Ron Levine Associates.

Yes. This is Ron Levine. Mark, my question pertains to the Coursera. If you have a comment on its current profitability or any thought they may have of going public.

Thanks. And thanks for your question, Ron. Obviously, there’s been a fair amount in the public domain about Coursera, given where they, where it is in size, where it is in its saturation. And there’s been articles written about that may or may not go public. So to the degree that we comment, we comment simply what’s in the public domain, which – what’s in the public domain, leads the investment public to believe that they will contemplate upon – they’re headed towards a public offering. The timing of that is remains uncertain.

Okay. Second question, do you have any feeling as to why the stock sells at such a discount to the NAV, especially in the light of the changes that the current management team has made, which I really appreciate very much and congratulate on.

Thanks, Ron. Well, I mean, I’d say a few things, right. We – the volatility that we’ve experienced in our share price over the last six months, if you can – if you really want to go back to the onslaught of COVID has been unprecedented for our stock. Obviously, with the – with Palantir coming public and given the publicity around Palantir and the excitement around that, there was a much broader base interest in our company as that as investors realize through various publications, articles and analysts that that was a large position in our portfolio. And our stock got bid up sharply. And I think that Palantir coming public, it was about a $22 billion valuation, which was obviously significantly higher than we had held in the highest valuation that is achieved and on an outright basis, which we viewed as very exciting. I think the investment public viewed it at somewhat disappointing. So we then had the same rush of folks that ran in and better stock up then became the sellers of our stock. So we had this bit of a pendulum approach to what had gone on and our stock got sold down fairly indiscriminately, I think and hopefully, today’s an indicator and the stock and even over the last few days, the selling is purely subsided. I think we’ve had a bit of a turnover in our shareholder base. I do believe talking to a lot of our shareholders that the shareholders that now are buy our stock or own our stock realize that this is a pretty interesting vehicle and that our net asset value makes a lot of sense. And that our portfolio was far broader than a one-trick pony in Palantir. And the fact is we still own 80% of…

We’ll hear next from [indiscernible] a Private Investor.

Hi, thank you for taking my call. I’m just curious if the organization has ever considered creating its own spec to maybe take some of those smaller positions public, if they were interested, or if that’s something that we can be possible.

We’re not in the business of creating stacks for ourselves. I think there are a lot of very good sponsors out there. I think our opportunity to invest in pipes that they create for deals that they’re creating is in a very interesting pre-IPO strategy for us. I think we will have the opportunity at some point in time to participate on the – I’ve called it Founder’s equity side. If we chose to put at risk capital with specs, but it’s not in our mandate to create pipes – to create specs. We won’t do that. We will participate alongside other sponsors either two pipes or maybe at some point in time in their Founder’s equity as well.

[Operator Instructions] And at this time, I would like to turn things back to management for any closing remarks.

Thank you all for taking time, and obviously an extremely interesting time in the country between the election and the pandemic. We really appreciate the time you’re spending with us and the support that many of you have expressed directly to us and management. So thank you all very much, and please try and stay healthy. Thank you, bye.

And that will conclude today’s conference. Again, we thank you all for your participation and you may now disconnect.