PhenixFIN Corp. Preferred Stock 5.25% Callable 2028 (PFXNZ)

Overview

PhenixFIN Corporation operates as a business development company focusing on investments in small to mid-sized companies across various sectors. Established in 2010 and headquartered in New York, New York, PhenixFIN aims to provide financial solutions through privately negotiated debt and equity financing. The firm targets companies primarily located in North America, with enterprise or asset values ranging from $25 million to $250 million, and concentrates on investment opportunities where it can commit between $10 million and $50 million in debt finance. PhenixFIN is strategic in its investment duration, generally aiming for exits between three to seven years, often holding investments to maturity or repayment but also retaining the flexibility to realize on investments earlier if beneficial. Additionally, PhenixFIN may engage in a governance role with its investee companies by possibly taking a board seat and offering managerial assistance, highlighting its hands-on investment approach.

Products and Services

• Privately Negotiated Debt and Equity Securities

  PhenixFIN specializes in offering capital through privately negotiated debt and equity securities, tailoring financial solutions according to the unique needs of small and mid-sized businesses. This approach allows for adaptable and strategic financial structuring suited to the growth objectives of its portfolio companies.

• First Lien Senior Secured Loans

  As part of its investment products, PhenixFIN provides first lien senior secured loans, offering capital while maintaining a senior position in the repayment hierarchy. This instrument is pivotal for businesses seeking substantial investment with a secured debt structure.

• Second Lien Senior Secured Loans & Senior Secured Notes

  The company also offers second lien senior secured loans and senior secured notes, presenting options for companies to secure additional funding on terms that recognize the existence of a first lien but still offer competitive security for the investment.

• Subordinated Debt Instruments

  Including senior subordinated notes and subordinate notes amongst its products, PhenixFIN provides options for subordinated debt that offer flexible financing solutions to companies, typically carrying a higher risk and consequently, a higher return for the investor.

• Unitranche Loans

  PhenixFIN's unitranche loan offerings combine senior and subordinated debt into a single loan structure with a blended interest rate. This simplifies the capital structure and can provide quicker execution and increased certainty of funding to businesses.

• Equity Participation

  Seeking to align its interests with those of its investee companies, PhenixFIN often looks for opportunities to obtain warrants or other forms of equity participation, providing it with the potential for capital gains beyond the returns from debt investments.

• Co-investment Opportunities

  Under certain conditions, PhenixFIN may engage in co-investment opportunities with other financial entities in privately negotiated transactions. This approach allows for sharing investment risks and benefits while also leveraging additional expertise and resources.