false 0001490349 0001490349 2024-02-08 2024-02-08 0001490349 PFX:CommonStockParValue0.001PerShareMember 2024-02-08 2024-02-08 0001490349 PFX:Sec5.25NotesDue2028Member 2024-02-08 2024-02-08 iso4217:USD xbrli:shares iso4217:USD xbrli:shares

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): February 8, 2024

 

PHENIXFIN CORPORATION

(Exact name of registrant as specified in its charter)

 

Delaware   814-00818   27-4576073

(State or other jurisdiction of

incorporation or organization)

  (Commission file number)  

(I.R.S. employer

identification no.)

 

445 Park Avenue, 10th Floor, New York, NY   10022
(Address of principal executive offices)   (Zip code)

 

Registrant’s telephone number, including area code: (212) 859-0390

 

Not Applicable

(Former Name or Former Address, if Changed Since Last Report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

 

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class   Trading Symbol(s)   Name of exchange on which registered
Common Stock, par value $0.001 per share   PFX   The NASDAQ Global Market
5.25% Notes due 2028   PFXNZ   The NASDAQ Global Market

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

 

 

 

Item 2.02Results of Operations and Financial Condition.

 

On February 8, 2024, PhenixFIN Corporation issued a press release announcing its financial results for the quarter ended December 31, 2023. The press release is included as Exhibit 99.1 to this Form 8-K.

 

Item 9.01Financial Statements and Exhibits.

 

(d) Exhibits

 

Exhibit No. Description
99.1   Press Release dated February 8, 2024
104   Cover page interactive data file (embedded within the Inline XBRL document).

 

1

 

 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, PhenixFIN Corporation has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

DATE: February 8, 2024 PHENIXFIN CORPORATION
     
  /s/ David Lorber
  Name: David Lorber
  Title: Chief Executive Officer

 

 

2

 

Exhibit 99.1

 

PhenixFIN Corporation Announces Fiscal First Quarter 2024 Financial Results

NAV per share grew 23% vs. First Quarter 2023

 

New York, NY, February 8, 2024 -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal first quarter of 2024.

 

Highlights

 

First quarter total investment income of $5.7 million; net investment income of $1.7 million
   
Net asset value (NAV) of $150.7 million, or $73.14 per share as of December 31, 2023
   
Weighted average yield was 13.0% on debt and other income producing investments
   
Repurchased 13,223 shares as of December 31, 2023

 

David Lorber, Chief Executive Officer of the Company, stated:

 

“We are pleased with our continued progress in growing our NAV per share as various investments over the past couple of years have generated favorable investment income and/or capital appreciation.”

 

Selected First Quarter 2024 Financial Results for the Quarter Ended December 31, 2023:

 

Total investment income was $5.7 million which was attributable to portfolio interest and dividend income.

 

Total net expenses were $4.0 million and total net investment income was $1.7 million.

 

The Company recorded a net realized gain of $0.2 million and net unrealized gain of $2.6 million.

 

Portfolio and Investment Activities for the Quarter Ended December 31, 2023:

 

The fair value of the Company’s investment portfolio totaled $222.2 million and consisted of 39 portfolio companies.

 

The Company had 4 portfolio company investments on non-accrual status with a fair market value of $8.9 million.

 

Liquidity and Capital Resources

 

At December 31, 2023, the Company had $12.2 million in cash and cash equivalents, $57.5 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $28.4 million outstanding under the Credit Facility.

 

 

 

 

ABOUT PHENIXFIN CORPORATION

 

PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.

 

Safe Harbor Statement and Other Disclosures

 

This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to deliver value to shareholders, increase investment activity, grow the Company, increase net investment income, reduce operating expenses, implement its investment objective, source and capitalize on investment opportunities, grow its net asset value and perform well in the prevailing market environment, the ability of our portfolio companies to perform well and generate income and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.

 

Past performance is not a guarantee of future results. The press release contains unaudited financial results. For ease of review, we have excluded the word “approximately” when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporation’s common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective. 

 

For PhenixFIN investor relations, please call 212-859-0390. For media inquiries, please contact info@phenixfc.com.

 

2

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Assets and Liabilities

 

   December 31,
2023
(Unaudited)
   September 30,
2023
 
Assets:        
Investments at fair value        
Non-controlled, non-affiliated investments (amortized cost of $123,544,114 and $134,339,121 respectively)  $116,100,267   $125,531,031 
Affiliated investments (amortized cost of $49,381,900 and $48,233,910, respectively)   40,868,870    37,289,617 
Controlled investments (amortized cost of $85,250,537 and $82,437,692, respectively)   65,252,515    63,640,043 
Total Investments at fair value   222,221,652    226,460,691 
Cash and cash equivalents   12,173,975    5,988,223 
Receivables:          
Interest receivable   1,400,137    971,115 
Dividends receivable   243,302    161,479 
Other receivable   -    31,425 
Prepaid share repurchase   132,295    199,019 
Due from Affiliate   417,014    409,214 
Other assets   615,571    833,000 
Deferred financing costs   637,276    699,124 
Receivable for investments sold   -    3,940,175 
Total Assets  $237,841,222   $239,693,465 
           
Liabilities:          
Credit facility and note payable (net of debt issuance costs of $1,605,256 and $1,688,835, respectively)  $84,336,685   $84,253,106 
Accounts payable and accrued expenses   1,615,180    3,066,984 
Interest and fees payable   721,341    690,398 
Other liabilities   394,364    432,698 
Administrator expenses payable (see Note 6)   72,852    - 
Payable for investments purchased   -    4,123,059 
Deferred revenue   -    421,685 
Total Liabilities   87,140,422    92,987,930 
           
Commitments and Contingencies (see Note 8)          
           
Net Assets:          
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,060,490 and 2,073,713 common shares outstanding, respectively   2,061    2,074 
Capital in excess of par value   694,273,678    694,812,239 
Total distributable earnings (loss)   (543,574,939)   (548,108,778)
Total Net Assets   150,700,800    146,705,535 
Total Liabilities and Net Assets  $237,841,222   $239,693,465 
           
Net Asset Value Per Common Share  $73.14   $70.75 

 

3

 

 

PHENIXFIN CORPORATION

Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months 
   Ended 
   December 31, 
   2023   2022 
Interest Income:        
Interest from investments        
Non-controlled, non-affiliated investments:        
Cash  $2,682,143   $1,916,041 
Payment in-kind   90,674    106,187 
Affiliated investments:          
Cash   455,692    198,453 
Payment in-kind   -    89,743 
Controlled investments:          
Cash   286,238    194,627 
Payment in-kind   149,967    - 
Total interest income   3,664,714    2,505,051 
Dividend income   2,013,726    2,032,358 
Interest from cash and cash equivalents   41,108    92,226 
Fee income (see Note 9)   2,108    73,599 
Other income   22    - 
Total Investment Income   5,721,678    4,703,234 
           
Expenses:          
Interest and financing expenses   1,542,061    1,233,176 
Salaries and benefits   1,424,992    857,533 
Professional fees, net   357,554    347,917 
General and administrative expenses   325,061    219,977 
Directors fees   187,500    194,000 
Insurance expenses   97,756    124,084 
Administrator expenses (see Note 6)   77,852    77,884 
Total expenses   4,012,776    3,054,571 
Net Investment Income   1,708,902    1,648,663 
           
Realized and unrealized gains (losses) on investments          
Net realized gains (losses):          
Non-controlled, non-affiliated investments   229,804    13,448 
Affiliated investments   -    - 
Controlled investments   -    - 
Total net realized gains (losses)   229,804    13,448 
Net change in unrealized gains (losses):          
Non-controlled, non-affiliated investments   1,364,243    1,523,099 
Affiliated investments   2,431,263    715,537 
Controlled investments   (1,200,373)   51,169 
Total net change in unrealized gains (losses)   2,595,133    2,289,805 
Total realized and unrealized gains (losses)   2,824,937    2,303,253 
           
Net Increase (Decrease) in Net Assets Resulting from Operations  $4,533,839   $3,951,916 
           
Weighted average basic and diluted earnings per common share  $2.19   $1.88 
Weighted average common shares outstanding - basic and diluted (see Note 11)   2,072,694    2,100,876 

 

 

4

 

 

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Cover
Feb. 08, 2024
Document Type 8-K
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Document Period End Date Feb. 08, 2024
Entity File Number 814-00818
Entity Registrant Name PHENIXFIN CORPORATION
Entity Central Index Key 0001490349
Entity Tax Identification Number 27-4576073
Entity Incorporation, State or Country Code DE
Entity Address, Address Line One 445 Park Avenue
Entity Address, Address Line Two 10th Floor
Entity Address, City or Town New York
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10022
City Area Code 212
Local Phone Number 859-0390
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Common Stock, par value $0.001 per share  
Title of 12(b) Security Common Stock, par value $0.001 per share
Trading Symbol PFX
Security Exchange Name NASDAQ
5.25% Notes due 2028  
Title of 12(b) Security 5.25% Notes due 2028
Trading Symbol PFXNZ
Security Exchange Name NASDAQ

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