Company Announcements

Crescent Capital BDC, Inc. Reports First Quarter Net Investment Income Per Share of $0.63 and NAV Per Share of $20.28; Increases Quarterly Dividend

Source: GlobeNewswire
Crescent Capital BDC, Inc. Reports First Quarter Net Investment Income Per Share of $0.63 and NAV Per Share of $20.28; Increases Quarterly Dividend

LOS ANGELES, May 08, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.63 per share and net income of $0.76 per share for the quarter ended March 31, 2024. Net asset value per share increased to $20.28 compared to $20.04 as of December 31, 2023.

Dividend Declarations 

The Company increased its regular quarterly cash dividend by $0.01 to $0.42 per share. The Company’s Board of Directors (the “Board”) declared a second quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of June 28, 2024, payable on July 15, 2024. The Board also announced a first quarter 2024 supplemental cash dividend of $0.11 per share to stockholders of record as of May 31, 2024, payable on June 17, 2024.

Selected Financial Highlights
($ in millions, except per share amounts)

 As of and for the three months ended 
 March 31, 2024  December 31, 2023  March 31, 2023 
Investments, at fair value $1,563.3  $1,582.1  $1,566.0 
Total assets $1,620.4  $1,627.4  $1,631.1 
Total net assets $751.7  $742.6  $718.4 
Net asset value per share $20.28  $20.04  $19.38 
             
Investment income $50.4  $50.0  $39.3 
Net investment income $23.4  $22.8  $17.5 
Net realized gains (losses), net of taxes $(0.2) $(6.6) $0.5 
Net change in unrealized gains (losses), net of taxes $4.8  $14.7  $(10.2)
Net increase (decrease) in net assets resulting from operations $28.0  $30.9  $7.8 
             
Net investment income per share $0.63  $0.61  $0.54 
Net realized gains (losses) per share, net of taxes $(0.00) $(0.18) $0.01 
Net change in unrealized gains (losses) per share, net of taxes $0.13  $0.40  $(0.31)
Net increase (decrease) in net assets resulting from operations per share $0.76  $0.83  $0.24 
Regular distributions paid per share $0.41  $0.41  $0.41 
Supplemental distributions paid per share $0.10  $0.09   - 
             
Weighted average yield on income producing securities (at cost)1  12.3%  12.3%  11.8%
Percentage of debt investments at floating rates  97.5%  98.7%  98.6%
             

Portfolio & Investment Activity

As of March 31, 2024 and December 31, 2023, the Company had investments in 183 and 186 portfolio companies with an aggregate fair value of $1,563.3 and $1,582.1 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types:              
  As of 
$ in millions March 31, 2024  December 31, 2023 
Investment Type Fair Value  Percentage  Fair Value  Percentage 
Senior secured first lien $408.3   26.1% $429.2   27.0%
Unitranche first lien2  980.7   62.7   973.9   61.5 
Unitranche first lien - last out2  12.5   0.8   13.5   0.9 
Senior secured second lien  53.0   3.4   58.2   3.7 
Unsecured debt  7.8   0.5   4.1   0.3 
Equity & other  52.9   3.4   50.1   3.2 
LLC/LP equity interests  48.1   3.1   53.1   3.4 
Total investments $1,563.3   100.0% $1,582.1   100.0%
 

For the quarter ended March 31, 2024, the Company invested $73.9 million across seven new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $98.4 million in aggregate exits, sales and repayments. For the quarter ended December 31, 2023, the Company invested $88.5 million across ten new portfolio companies and several follow-on revolver and delayed draw fundings. For this period, the Company had $86.6 million in aggregate exits, sales and repayments.

Results of Operations

For the quarter ended March 31, 2024, investment income increased to $50.4 million from $50.0 million for the quarter ended December 31, 2023, respectively. Interest income, which includes amortization of upfront fees, decreased to $46.2 million for the quarter ended March 31, 2024 from $46.4 million for the quarter ended December 31, 2023. Included in interest from investments for the quarters ended March 31, 2024 and December 31, 2023 are $0.9 million and $1.2 million of accelerated accretion of OID related to paydown activity, respectively. Dividend income was $3.3 million for the quarters ended March 31, 2024 and December 31, 2023, respectively. Other income, which includes consent, waiver, amendment, agency, underwriting and arranger fees, was $0.9 million and $0.2 million for the quarters ended March 31, 2024 and December 31, 2023, respectively.

For the three months ended March 31, 2024 and December 31, 2023, total net expenses, including income and excise taxes, totaled $27.0 million and $27.2 million, respectively.

Liquidity and Capital Resources

As of March 31, 2024, the Company had $31.9 million in cash and cash equivalents and restricted cash and $343.6 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt on the Company’s debt outstanding as of March 31, 2024 was 6.97%.

The Company’s debt to equity ratio was 1.11x as of March 31, 2024.

Conference Call

The Company will host a webcast/conference call on Thursday, May 9, 2024 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended March 31, 2024. Please visit Crescent BDC’s webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDC’s website for a slide presentation that complements the earnings conference call. 

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing the following number:

Toll Free: (800) 225-9448
Conference ID: CRESCENT

All callers will need to reference the Conference ID once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.

Endnotes

Note: Numbers may not sum due to rounding.

  1. Yield includes performing debt and other income producing investments (excluding investments on non-accrual).
  2. Unitranche loans are first lien loans that may extend deeper in a company’s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the “first out” portion of such loan and retain the “last out” portion of such loan, in which case, the “first out” portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the “last out” portion that the Company would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.


Crescent Capital BDC, Inc.
Consolidated Statements of Assets and Liabilities
(in thousands except share and per share data)
 
 As of
March 31, 2024 (Unaudited)
  As of
December 31, 2023
 
Assets     
Investments, at fair value     
Non-controlled non-affiliated investments (cost of$1,450,958 and $1,469,251, respectively)$1,451,357  $1,465,537 
Non-controlled affiliated investments (cost of $53,855 and $56,084, respectively) 50,618   52,619 
Controlled investments (cost of $65,027 and $67,353, respectively) 61,368   63,919 
Cash and cash equivalents 6,743   7,780 
Restricted cash and cash equivalents 25,205   16,690 
Interest and dividend receivable 14,774   14,000 
Receivable from unsettled transactions 2,782   251 
Unrealized appreciation on foreign currency forward contracts 4,713   5,128 
Deferred tax assets 787   114 
Other assets 2,022   1,341 
Total assets$1,620,369  $1,627,379 
      
Liabilities     
Debt (net of deferred financing costs of $6,621 and $7,138, respectively)$831,426  $844,783 
Distributions payable 15,195   15,195 
Interest and other debt financing costs payable 8,734   10,900 
Management fees payable 4,942   5,026 
Incentive fees payable 4,901   4,770 
Deferred tax liabilities 912   578 
Unrealized depreciation on foreign currency forward contracts 26   84 
Accrued expenses and other liabilities 2,535   3,449 
Total liabilities$868,671  $884,785 
      
Net assets     
Preferred stock, par value $0.001 per share (10,000 shares authorized,
zero outstanding, respectively)
$-  $- 
Common stock, par value $0.001 per share (200,000,000 shares authorized,
37,061,547 shares issued and outstanding)
 37   37 
Paid-in capital in excess of par value 965,895   788,299 
Accumulated earnings (loss) (214,234)  (45,742)
Total net assets$751,698  $742,594 
Total liabilities and net assets$1,620,369  $1,627,379 
Net asset value per share$20.28  $20.04 


Crescent Capital BDC, Inc.
Consolidated Statements of Operations
(in thousands except share and per share data)
(Unaudited)
 
  For the three months ended March 31, 
  2024  2023 
Investment Income:      
From non-controlled non-affiliated investments:      
Interest income $43,564  $34,245 
Paid-in-kind interest  1,155   618 
Dividend income  393   4 
Other income  889   46 
From non-controlled affiliated investments:      
Interest income  692   612 
Paid-in-kind interest  442   49 
Dividend income  287   628 
From controlled investments:      
Interest income  299   167 
Paid-in-kind interest     192 
Dividend income  2,640   2,720 
Total investment income  50,361   39,281 
       
Expenses:      
Interest and other debt financing costs  15,604   12,370 
Management fees  4,980   4,456 
Income based incentive fees  4,937   3,692 
Professional fees  447   311 
Directors’ fees  156   168 
Other general and administrative expenses  628   726 
Total expenses  26,752   21,723 
Management fees waiver  (38)  (46)
Income based incentive fees waiver  (36)  (89)
Net expenses  26,678   21,588 
Net investment income before taxes  23,683   17,693 
(Benefit) provision for income and excise taxes  366   201 
Net investment income  23,317   17,492 
Net realized and unrealized gains (losses) on investments:      
Net realized gain (loss) on:      
Non-controlled non-affiliated investments  (1,604)  252 
Foreign currency transactions  (11)   
Foreign currency forward contracts  1,447    
Net change in unrealized appreciation (depreciation) on:      
Non-controlled non-affiliated investments and foreign currency translation  4,870   (5,554)
Non-controlled affiliated investments  228   365 
Controlled investments  (225)  (4,329)
Foreign currency forward contracts  (356)  (661)
Net realized and unrealized gains (losses) on investments  4,349   (9,927)
Benefit (provision) for taxes on realized gain on investments     252 
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments  339   (40)
Net increase (decrease) in net assets resulting from operations $28,005  $7,777 
       
Per common share data:      
Net increase (decrease) in net assets resulting from operations per share (basic and diluted): $0.76  $0.24 
Net investment income per share (basic and diluted): $0.63  $0.54 
Weighted average shares outstanding (basic and diluted):  37,061,547   32,465,208 
         

About Crescent BDC

Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent. Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

About Crescent Capital Group

Crescent is a global credit investment manager with over $42 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

Contact:

Dan McMahon
daniel.mcmahon@crescentcap.com
212-364-0149

Forward-Looking Statements

This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.

Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Crescent BDC’s SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment adviser or its affiliates; (13) the ability of our investment adviser to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

Crescent BDC’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC, identifies additional factors that can affect forward-looking statements.

Other Information

The information in this press release is summary information only and should be read in conjunction with Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 21, 2024, as well as Crescent BDC’s other reports filed with the SEC. A copy of Crescent BDC’s annual report on Form 10-K for the year ended December 31, 2023, Crescent BDC’s quarterly reports on Form 10-Q and Crescent BDC’s other reports filed with the SEC can be found on Crescent BDC’s website at www.crescentbdc.com and the SEC’s website at www.sec.gov.