Sound Point Meridian Capital, Inc. Announces First Fiscal Quarter 2027 Common Distributions and Preferred Distributions and Results for the Third Fiscal Quarter Ended December 31, 2025

Key Terms

net asset value financial

Net asset value is the total value of an investment fund's assets minus any liabilities, divided by the number of shares or units outstanding. It represents the per-share worth of the fund, similar to how the value of a house is determined by its total worth after debts are subtracted. Investors use it to gauge the true value of their holdings and to compare different investment options.

net investment income financial

Net investment income is the money an investor or fund actually keeps from its investments after subtracting the costs of running those investments (like management fees, interest, and losses). Think of it as your paycheck from owning assets: gross returns minus the bills needed to earn them. Investors watch it because it shows how profitable the investment activities are, influences dividend payouts and cash available for growth, and helps compare true performance across funds or companies.

GAAP financial

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

weighted average effective yield financial

Weighted average effective yield is the combined annual return you would get from a group of interest‑bearing investments (like bonds or loans), where each security’s true, compounding return is averaged according to how much money is placed in it. Think of it as the overall “yield” of a mixed basket: larger holdings pull the average toward their returns. Investors use it to compare expected income, evaluate portfolio performance, and judge whether the collection of instruments meets income or risk targets.

CLO equity financial

CLO equity is the lowest, most junior slice of a collateralized loan obligation, meaning it absorbs the first losses from a pool of corporate loans but also receives leftover cash flows after all higher‑priority investors are paid. Think of a layered cake where equity holders get the topmost crumbs only after others take their fixed slices; that makes CLO equity potentially high‑reward but also high‑risk, so it matters to investors seeking greater yield and willing to accept greater loss exposure.

liquidation preference financial

A liquidation preference is a rule that determines who gets paid first and how much they receive when a company is sold, goes bankrupt, or distributes its assets. It gives certain investors a priority claim—often returning their original investment plus any agreed multiple—before other owners receive money, which shapes how much common shareholders and founders ultimately get; think of it as a front-of-the-line pass that affects payout order and investor returns.

term preferred stock financial

Preferred stock is a type of company share that sits between bonds and common shares: it usually pays a fixed dividend like interest and has priority over common stock if the company distributes cash or liquidates, but it typically carries limited or no voting rights. For investors, preferred stock can offer steadier income and greater protection in downside scenarios—similar to a reserved seat in line for payments—while often trading with less price upside than common shares.

NEW YORK--(BUSINESS WIRE)-- Sound Point Meridian Capital, Inc. (NYSE: SPMC, SPMA, SPME), a closed-end management investment company that has registered as an investment company under the Investment Company Act of 1940, as amended (the “Company”), today announced the declaration of distributions on shares of the Company’s common and preferred stock for the first fiscal quarter 2027 (second calendar quarter of 2026) and results for the third fiscal quarter ended December 31, 2025.

The Company is declaring a monthly distribution of $0.20 per share on its common stock to be paid on each of April 30, 2026, May 29, 2026, and June 30, 2026.

The distributions are payable based on the following schedule:

Record Date	Payable Date	Amount per common share
April 15, 2026	April 30, 2026	$0.20
May 15, 2026	May 29, 2026	$0.20
June 15, 2026	June 30, 2026	$0.20

Distributions on common stock are generally paid from net investment income (regular interest and dividends) and may also include capital gains and/or a return of capital. The specific tax characteristics of the distributions will be reported to the Company’s stockholders on Form 1099 after the end of the 2026 calendar year.

The Company is also declaring a monthly distribution of $0.16667 on shares of the Company’s 8.00% Series A Term Preferred Stock due 2029 (the “Series A Term Preferred Stock”) to be paid on each of April 30, 2026, May 29, 2026, and June 30, 2026.

The distributions are payable based on the following schedule:

Record Date	Payable Date	Amount per common share
April 15, 2026	April 30, 2026	$0.16667
May 15, 2026	May 29, 2026	$0.16667
June 15, 2026	June 30, 2026	$0.16667

The distributions on the Series A Term Preferred Stock reflect an annual distribution rate of 8.00% of the $25.00 liquidation preference per share.

The Company is also pleased to announce the declaration of distributions on shares of the Company’s 7.875% Series B Term Preferred Stock due 2030 (the “Series B Term Preferred Stock”) as follows:

Record Date	Payable Date	Amount per common share
April 15, 2026	April 30, 2026	$0.1640625
May 15, 2026	May 29, 2026	$0.1640625
June 15, 2026	June 30, 2026	$0.1640625

The distributions on the Series B Term Preferred Stock reflect an annual distribution rate of 7.875% of the $25.00 liquidation preference per share.

THIRD FISCAL QUARTER ENDED DECEMBER 31, 2025 RESULTS

• Net asset value per share of common stock was $14.02 as of December 31, 2025.
• Net investment income (“NII”) was $9.0 million, or $0.44 per share of common stock, comprised of $18.0 million of investment income, or $0.88 per share of common stock and $9.0 million of expenses, or $0.44 per share of common stock.
• Realized loss on investments was $1.1 million, or ($0.05) per share of common stock.
• Unrealized loss on investments was $51.8 million, or ($2.53) per share of common stock.
• GAAP net loss was $43.9 million, or ($2.14) per share of common stock.
• As of December 31, 2025, the weighted average effective yield of the Company’s CLO equity portfolio, based on amortized cost, was 11.0%.¹
• As of December 31, 2025, on a look-through basis, and based on the most recent trustee reports received by such date:
  • The Company, through its CLO investments, had indirect exposure to approximately 1,596 unique underlying loans.
  • The largest look-through obligor represented 0.6% of the loans underlying the Company’s CLO debt and equity portfolio.
  • The top ten largest look-through obligors together represented 4.5% of the loans underlying the Company’s CLO debt and equity portfolio.

FOURTH FISCAL QUARTER PORTFOLIO ACTIVITY AND OTHER UPDATES

• Management’s unaudited estimate of the net asset value per share of the Company’s common stock as of January 31, 2026, was $13.40.
• Received $29.6 million cash distributions from the Company’s investment portfolio.²
• Declared a monthly distribution of $0.20 per share on the Company’s common stock to be paid on each of April 30, 2026, May 29, 2026, and June 30, 2026.
• Declared a monthly distribution of $0.16667 on shares of the Company’s 8.00% Series A Term Preferred Stock due 2029 to be paid on each of April 30, 2026, May 29, 2026, and June 30, 2026.
• Declared a monthly distribution of $0.1640625 on shares of the Company’s 7.875% Series B Term Preferred Stock due 2030 to be paid on each of April 30, 2026, May 29, 2026, and June 30, 2026.

CONFERENCE CALL

The Company will host a conference call at 11:00 a.m. (Eastern Time) today to discuss these results. All interested parties are welcome to participate in the conference call via the below:

Date/Time:		Wednesday, February 11, 2026 – 11:00 a.m. ET
Participant Dial-In Numbers:
(United States):		(800) 549-8228
(International):		(646) 564-2877

To access the call, please dial-in approximately five minutes before the start time and, if asked, provide the operator with Conference ID “SOUNDFQ3”.

An accompanying slide presentation is available in pdf format via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com/).

The call will also be simultaneously webcast over the internet via the “Events and Presentations” section of the Company’s website (https://www.soundpointmeridiancap.com/). Please go to the “Events and Presentations” section of the Company’s website at least 15 minutes prior to the call to register for the call and download and install any necessary audio software.

About the Company

The Company is an externally managed, non-diversified closed-end management investment company. The Company’s investment objective is to generate high current income, with a secondary objective to generate capital appreciation, by investing primarily in third-party collateralized loan obligation (“CLO”) equity and mezzanine tranches of predominately U.S. dollar-denominated CLOs backed by corporate leveraged loans issued primarily to U.S. obligors. The Company is externally managed and advised by Sound Point Meridian Management Company, LLC, a Delaware limited liability company. For additional information, visit https://www.soundpointmeridiancap.com.

FORWARD-LOOKING STATEMENTS

This press release may contain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described in the Company’s filings with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.

NOT FDIC INSURED • NO BANK GUARANTEE • MAY LOSE VALUE

¹ Weighted average effective yield is based on investments’ amortized cost and expected future cash flows as of the applicable period end.

² “Cash distributions” refers to the quarterly distributions received by the company from its CLO equity investments.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211597301/en/

Investor Relations:

Julie Smith – Sound Point Capital

(833) 217-6665

ir@soundpointmeridiancap.com

www.soundpointmeridiancap.com

Source: Sound Point Meridian Capital, Inc.