GlobeNewswire Inc | Feb 16, 2021 08:48AM EST

February 16, 2021

NEW YORK, Feb. 16, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal first quarter of 2021.

First Quarter 2021 Highlights

-- Total investment income of $12.8 million; net investment income of $8.3 million -- $62.4 million in cash on December 31, 2020 -- Sale of MCC Senior Loan Strategy JV I LLC (MCC JV), resulting in net proceeds of $41 million -- Full redemption of $74.0 million of the 6.5% Notes due 2021 -- Net asset value of $144.2 million, or $52.94 per share vs. $55.30 per share as of September 30, 2020

David Lorber, Chief Executive Officer of the Company, stated: The quarter brought significant change for the organization with the announced sale of the MCC JV facility, meaningful debt paydown, and the announced transition to the internalized management structure. I am pleased with the markets favorable reaction to this change and with the cohesive transition to the internalized management structure for all aspects of the business. The new team is excited for the prospects of PhenixFIN Corporation and we look forward to driving value for shareholders.

As previously announced on October 9, 2020, the Board of Directors of the Company (the Board) approved the sale of the MCC JV facility, leading to the October 21, 2020 redemption of the $74 million 6.5% Notes due January 2021. In addition, on November 18, 2020, the Board approved the adoption of an internalized management structure, effectiveJanuary 1, 2021, replacing the externalized management structure, including the Investment Management Agreement and Administration Agreement withMCC Advisors LLC (both of which expired onDecember 31, 2020).

Subsequent to quarter end, on January 11, 2021, the Company announced that the Board of Directors approved a share repurchase program authorizing up to $15 million in share repurchases. Under the share repurchase program, the Company is authorized to repurchase from time to time its common stock in open market or other transactions, subject to applicable regulatory requirements.

First Quarter 2021 Financial Results

For the three months ended December 31, 2020, total investment income was $12.8 million, which consisted, in part, of a November 2020 dividend distribution from JFL-NGS Partners, LLC, a portfolio company, in the amount of $10.3 million. For the three months ended December 31, 2020, interest and PIK income comprised $2.2 million. Net investment income for the three months ended December 31, 2020 was $8.3 million, or $3.06 per share.

For the three months ended December 31, 2020, total net expenses (net of the expense support agreement) were $4.5 million.

For the three months ended December 31, 2020, the Company recorded a net realized loss of $14.8 million.

Portfolio and Investment Activities

As of December 31, 2020, the fair value of the Company's investment portfolio totaled $159.5 million and consisted of 37 portfolio companies.

As of December 31, 2020, the Company had 9 portfolio company investments on non-accrual status.

Liquidity and Capital Resources

At December 31, 2020, the Company had $62.4 million in cash and $77.8 million outstanding in aggregate principal amount of 6.125% unsecured notes due 2023.

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. On November 18, 2020, the Board approved the adoption of an internalized management structure, effective January 1, 2021.

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, PhenixFINs ability to deliver value to shareholders and other factors that are enumerated in the Companys 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.

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 Corporations common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective.

ForPhenixFINinvestor relations, please call 212-859-0390. For media inquiries, please contactinfo@phenixfc.com.

PHENIXFIN CORPORATION (f/k/a Medley Capital Corporation)Consolidated Statements of Assets and Liabilities

December 31, September30, 2020 2020 (Unaudited)Assets: Investments at fair value Non-controlled, non-affiliatedinvestments (amortized cost of $ 83,446,768 $ 114,321,948 $90,542,838 and $117,360,954,respectively)Affiliated investments (amortizedcost of $80,340,191 and 70,196,136 84,873,023 $92,898,755, respectively)Controlled investments (amortizedcost of $37,987,321 and 5,898,013 47,548,578 $117,874,821, respectively)Total Investments at fair value 159,540,917 246,743,549 Cash and cash equivalents 62,414,223 56,522,148 Receivables: Interest receivable 238,814 624,524 Fees receivable 106,528 119,028 Other assets 1,675,933 2,093,559 Total Assets $ 223,976,415 $ 306,102,808 Liabilities: Notes payable (net of debt issuancecosts of $619,167 and $905,624, $ 77,227,633 $ 150,960,662 respectively)Interest and fees payable - 801,805 Due to affiliates - 53,083 Management and incentive fees 1,146,403 1,392,022 payableAdministrator expenses payable 484,412 156,965 Accounts payable and accrued 900,851 2,108,225 expensesDeferred revenue 35,450 10,529 Total Liabilities 79,794,749 155,483,291 Guarantees and Commitments Net Assets: Common Shares, $0.001 par value;5,000,000 shares authorized; 2,723,709 and 2,723,709common shares issued and 2,724 2,724 outstanding, respectivelyCapital in excess of par value 672,381,617 672,381,617 Total distributable earnings/(loss) (528,202,675 ) (521,764,824 )Total Net Assets 144,181,666 150,619,517 Total Liabilities and Net Assets $ 223,976,415 $ 306,102,808 Net Asset Value Per Common Share $ 52.94 $ 55.30

PHENIXFIN CORPORATION (f/k/a Medley Capital Corporation)Consolidated Statements of Operations(Unaudited)

For the Three Months Ended December 31, December 31, 2020 2019Interest Income: Interest from investments Non-controlled, non-affiliated investments:Cash $ 1,671,813 $ 3,217,709 Payment in-kind 170,029 199,012 Affiliated investments: Cash 352,291 209,248 Payment in-kind - 947,473 Controlled investments: Cash 1,190 83,208 Payment in-kind - 495,382 Total interest income 2,195,323 5,152,032 Dividend income 10,263,501 1,837,500 Interest from cash and cash 940 218,138 equivalentsFee income 341,464 283,540 Total Investment Income 12,801,228 7,491,210 Expenses: Base management fees 1,146,403 2,008,234 Incentive fees - - Interest and financing expenses 2,017,641 5,143,929 General and administrative expenses 377,934 516,842 Administrator expenses 484,412 551,522 Insurance expenses 485,012 297,998 Directors fees 475,717 316,000 Professional fees, net (515,622 ) (4,416,075 )Total expenses net of expense support 4,471,497 4,418,450 reimbursementNet Investment Income 8,329,731 3,072,760 Realized and unrealized gains (losses) on investmentsNet realized gains/(losses): Non-controlled, non-affiliated 3,893,722 (57,799 )investmentsAffiliated investments (10,452,928 ) - Controlled investments (40,147,570 ) (1,686,837 )Total net realized gains/(losses) (46,706,776 ) (1,744,636 )Net change in unrealized gains/ (losses):Non-controlled, non-affiliated (4,057,063 ) 3,747,374 investmentsAffiliated investments (2,118,324 ) 9,440,599 Controlled investments 38,236,935 (9,457,114 )Total net change in unrealized gains/ 32,061,548 3,730,859 (losses)Loss on extinguishment of debt (122,354 ) (889,150 )Total realized and unrealized gains/ (14,767,582 ) 1,097,073 (losses) Net Increase/(Decrease) in Net Assets $ (6,437,851 ) $ 4,169,833 Resulting from Operations Weighted Average Basic and diluted $ (2.36 ) $ 1.53 earnings per common shareWeighted Average Basic and dilutednet investment income/(loss) per $ 3.06 $ 1.13 common shareWeighted Average Common Shares 2,723,709 2,723,709 ^Outstanding - Basic and Diluted (1)

Basic and diluted shares has been adjusted for 2019 to reflect the(1 ) one-for-twenty reverse stock split effected on July 24, 2020 on a retroactive basis.