Patrick Schafer
Thanks Ted turn to slide 5 of our presentation and the sensitivity to our earning of our earnings to interest rates. As of September 30th 2024 approximately 88.5% of our debt securities portfolio was floating rate with a spread pegged to an interest rate index such as so far or prime with substantially all of these being linked to so far as you can see from the chart. So rates have been relatively consistent for the last for the last several quarters with a decrease in rates impacting the current quarter skipping down to slide. 10 originations for the third quarter were lower than last quarter and were also below the current quarter repayment and sales levels resulting in net repayments and sales of approximately $11.6 million.
During the quarter, we funded small incremental ddtls and revolver draws in seven existing portfolio companies and increased our investment in our Great Lakes to venture but did not add any new portfolio companies as we one transaction closed in early October and several other transactions slated for Q4 closings.
Our fundings made during the quarter are expected to yield a spread to so of 656 basis points on par value. And the investments were purchased at a cost of approximately 98.5% of par our investment portfolio at the end of the third quarter remains highly diversified. Meaning the third quarter with debt investment portfolio spread across 28 different industries with 72 unique portfolio companies and an average split and an average par balance of $2.7 million for slide. 11 in aggregate investments on non accrual status were nine investments at the end of the third quarter of 2024 representing 1.6% and 4.5% of the company's investment portfolio at fair value and cost perspective.
This compares to nine investments on a status as of June 30th 2024 representing 0.5% and 4.5% of the company's investment portfolio at fair value and cost respectively.
On slide 12, excluding our nonaccrual investments, we have an aggregate debt investment portfolio of $341 million at fair value. This represents a blended price of 92.6% of par and is 92.9% comprised of first aid loans at par value.
Assuming a power recovery, our September 30th 2024 fair value, fair values reflect a potential of $27.3 million of incremental NAV value or a 13.9% increase to NAV when applying a lust of 10% default rate and 70% recovery rate. Our debt portfolio would generate an incremental $1.1.76 per share of now or an 8.3% increase as it rotates finally turn to slide. 13. If you aggregate the three portfolios over the last three years, we have purchased a combined $435 million of investments have realized approximately 85% of these positions at a combined realized and unrealized mark of 101% of fair value at the time of closing their respective mergers.
As the Q3 2024 we fully exit the acquired our portfolio and are down to a combined $27.9 million of the acquired HCAP and initial KCAP portfolios.
I'll not the call over to Brandon to further discuss our financial results for the period.
Brandon Satoren
Thanks Patrick for the third quarter of 2024. Portman generated 15.2 million of investment income of which 12.7 million was attributable to interest income inclusive of pick income from the debt investment portfolio. This compares to total investment income for the second quarter of 2024 of 16.3 million of which 13.7 million was attributable to interest income inclusive of pick income from the debt investment portfolio. The decrease was primarily driven by lower interest income due to net repayments and sales during the quarter, a loan being placed on non accrual as well as lower clo and joint venture income.
With that in mind, I'd like to highlight that recurring pick income as a percentage of total investment income declined by over 200 basis points compared to the prior quarter excluding the impact of asset acquisition accounting. Our core investment income was 15.2 million as compared to core investment income of 16.2 million in the prior quarter.
Total expenses for the quarter ended September 30th 2024 decreased by 0.5 million to 9.4 million as compared to 9.9 million in the prior quarter. This decrease was largely driven by lower interest expense during the quarter as a result of the successful refinancing of the 20 18-2 secured notes in conjunction with the amendment to the existing senior secured revolving credit facility with JP Morgan that reduced the applicable margin from 2.8% to 2.5% as well as lower management and incentive fees. Accordingly, our net investment income for the quarter decreased to 5.8 million or 63¢ per share. This compares to 6.5 million or 70¢ per share for the prior quarter.
Further for the quarter ended September 30th net realized and change in unrealized losses on investments in debt was 7.3 million. This compares to net realized and change in unrealized losses on investments in debt of 12.8 million in the prior quarter.
As of September 30th 2024 the company's net asset value was 188 million or $20.36 per 36¢ per share. A decrease of 8.4 million or 85¢ per share compared to the prior to the company's prior quarter. Net asset value of 196.4 million or $21.21 per share.
As of September 30th and June 30th 2024 our gross leverage ratios were approximately 1.4 times and 1.5 times respectively for the same periods. Our leverage ratio net of cash was 1.3 times specifically as of September 30th 2024 we had a total of 267.5 million in borrowings outstanding with a current weighted average contractual interest rate of 6.7%.
This compares to 285.1 million of borrowings outstanding as of the prior quarter with a then current weighted average contractual interest rate of 6.9%. The company finished the quarter with $40.5 million of available borrowing capacity under the senior secured revolving credit facility.
Finally, the board approved a quarterly distribution of 69¢ per share payable on November 29th, 2024 to stockholders of record at the close of business on November 19th 2024.
With that, I will now turn the call back over to Ted.
Ted Goldthorpe
Thank you, Brandon. Ahead of questions. I'd like to reemphasize that we believe we are well positioned to take advantage of the current market environment has shown for the first nine months of the year. Through our proven investment strategy, we believe we'll be able to deliver strong returns to our shareholders at the end in the tail end of 2024.
Thanks again once again to all of our shareholders for ongoing support. This concludes our prepared remarks and I will turn the call over for any questions.
Operator
At this time. I would like to remind everyone in order to ask a question, please press star. Then the number one on your telephone keypad, we will pause for just a moment to compile the Q&A roster.
And your first question comes from the line of Christopher Nolan with Landenburg Falvin, your line is open.
Christopher Nolan
What's the driver of the realized losses, please?
Brandon Satoren
Hey, Chris, this is Brandon. The primary driver of the realized loss was qualtek. You may recall on our last earnings call, we had disclosed that we had successfully exited qualtek at the mark we had in the prior quarter. So, there was no impact and have as a result of that realized loss that was previously captured.
Christopher Nolan
I thought that I thought, I thought so. Okay. On the interest rate sensitivity, I'm looking at flood five and it says, you know, blah, blah, blah, reduction of quarterly income of 164 K.
And then if you look in the 10-Q, it says for a 1% decrease in interest rates, you know, it's $1.7 million annually and given that the fed is, you know, eased by 75 bits or so. And, you know, should that infor information? I mean, there seems to be a lot, the impact of our 1% rate change seems to be a lot bigger in the queue than is in the deck.
Yeah, so.
Brandon Satoren
That the in the deck, it's just the difference between the 475 and the 455. It's not a full 1% reduction.
Christopher Nolan
Okay?
And then I guess spill over a spillover.
Brandon Satoren
So it's a, it's.
A. It's about 70¢ per share from the prior year.
Christopher Nolan
Finally, strategy, you guys are sort of cruising along at your normal leverage ratio and the growth has been slow. What is the strategy if anything to grow earnings in growing the book? Excuse me, growing NAV in general.
Brandon Satoren
So, so I'll, I'll start, which is number one is, I mean, there is a lot of embedded NAV to the extent that our loans mature at par. And we, we Patrick talked a little bit about it in the script, but we can, we can get you the numbers.
So to the extent that we remain in a, you know, subdued credit environment, there just should be upside just with our existing portfolio and, and there is some positions that we have that as rates go down, if they go down, you get a NAV increase. So it there's a income comes down a little bit, but you get NAV increases in certain situations. That's number one.
And then in terms of investment strategy, you know, again, like we haven't been as nearly as impacted as other BBCs by this production spreads. It, it may be coming to our markets beginning to come to our market, but that's really been a large cap and upper middle market phenomenon. So we've been able to retain spread and in the situations where we've been asked to kind of like reduce spreads to, you know, where big, big cap mark guys are we've generally taken the refi. So again, you can see on slide 6 of what we disclosed, I mean fee income for us continues to be anemic like we only had, you know, we basically had our lowest fee income ever this quarter going back, you know, four years, 45 years and that that should revert back to normal at some point as you know, this refi wave continues. So there's like that obviously is a tail end earnings as well. Although it's something we can't obviously forecast or predict.
Christopher Nolan
Okay, great. Thank you. Talk to you guys later.
Operator
Your next question comes from the line of Steven Martin with Slater Capital. Your line is open.
Steven Martin
You guys.
Two questions. You, you made some comments about some activity in the fourth quarter. Are we expecting net deployments in the fourth quarter?
Brandon Satoren
I think the short answer is, is yes, Steve, the long answer is it, it, it always depends on, you know, there, we only have sort of one known repayment during the quarter for now. So the answer is yes, all we'd expect to be a net deployer over the next call it two months. But, you know, again, we might get unforeseen, you know, exits or things like that. But I'd say our, our strategy is and will be to be a net deployer.
Steven Martin
Okay. And your pick income declined dramatically in the quarter, which was great. What was the reason for the decline.
Brandon Satoren
Yeah, I mean, Brandon gave you the specifics but we did have one company that, you know, had a period of time where there was a partial pick and that is converted back to cash and there's a couple of other things that, that Brandon can enumerate. But yeah.
It's, it's, it's two portfolio companies in particular were previously paying their interest with pick, that reverted to cash this quarter. It was about a half a million dollars worth.
Steven Martin
Okay. That's the good way to reduce pick.
Can you talk about the activity in the non accruals?
What went in? What went out?
Brandon Satoren
Yeah, the as we mentioned last quarter, so qualtek security went out and the bar I should say went out and then we had one new bar in which Vega on our, on our. So I it goes by a number of different names colloquially is Navigo on our, on our. So I and Colin is another name that it goes by. But that one we've been, we, the lenders have been working through with the company. I think we, we would expect that to be a somewhat temporary, temporary non accrual. But for now that that's kind of where it is based on based on the facts and circumstances.
Steven Martin
Okay. And what does it look like for restructurings of any of the other non accruals.
Brandon Satoren
I think as of right now, there is nothing substantial. I mean, again, it's, there are, there are a couple that, that, you know, candidly just are, are, you know, we, we have market zeros and we would expect them to continue to be zeros. Such as Pro Air is a name that's on, on not accrual that will continue to be on, on non accrual until we can kind of legally clean it up. So I'd say II, I don't think there's anything significant on the horizon in terms of, in terms of other non accruals.
Steven Martin
Okay. Thanks a lot.
Take that back.
Brandon Satoren
I'm, I'm looking, I'm names now. There is, there is one is in the process of restructuring Robert Shaw that should ultimately clear through our non accruals sometime shortly. That was a bankruptcy process that I believe the company is exiting shortly. And so we, we should ultimately, that's we get clean up. And, and the new security we'd be taking on, you know, should be accruing security. So that, that might be one other one, but that's a relatively small small number. It's, you know, a couple $100,000 in market value, so not, not particularly relevant. But that should get cleaned up shortly. Okay.
Steven Martin
Thanks.
Operator
Your next question comes from the line of Paul Johnson with KBW. Your line is open.
Paul Johnson
Hey guys, thanks for taking my questions. I'm hopping on the call. A little bit late. So I apologize if you mentioned this in your remarks or if there was already a question but in the release last night or sorry, last week on, on for earnings, you just mentioned some prudent cash and portfolio management initiatives prior to paying off some notes in the portfolio. Can you just tell us what exactly that was? And if, how, I guess how that would have affected results this quarter if, if it did at all?
Brandon Satoren
Yeah. Yeah, Paul, I mean, the short answer is we were in the process of refinancing out the the secured notes with an upsized the JP Morgan facility. And to we, we to be prudent and we had been sitting on additional cash in our vehicle to ensure a smooth refinancing. And so too, we were sitting on incremental capacity in the JP Morgan facility to make sure that there was that the entire process went smoothly and we were, and, and we were, you know, able to successfully refinance and then, and then able to kind of turn back to investing once we kind of had a collective facility with and, and and you know, better understood our kind of available capacity, but it was effectively, you know, holding back on investments and sitting on some cash to ensure a smooth refinancing process there.
Paul Johnson
Got it, appreciate that that's helpful, but that's all the questions for me. Thank you.
Operator
Again. If you would like to ask a question, press star one on your telephone keypad.
I will now turn the call back over to Mr Gospal from closing remarks.
Thank you all for attending our call. As per always, please reach out to us with any questions which we're happy to discuss. We look forward to speaking to you again on December 12th during our investor luncheon event and encourage you guys to come. Thank you very much.
Operator
Ladies and gentlemen, that concludes today's call. Thank you all for joining you. May now disconnect.
