Investcorp Credit Management BDC, Inc. Announces Revised Financial Results for the Quarter Ended December 31, 2023, and Quarterly and Supplemental Distribution
HIGHLIGHTS
-
On
February 8, 2024 , the Company’s Board of Directors (the “Board”) declared a distribution of$0.12 per share for the quarter endingMarch 31, 2024 , payable in cash onApril 5, 2024 , to stockholders of record as ofMarch 15, 2024 and a supplemental distribution of$0.03 per share, payable onApril 5, 2024 , to stockholders of record as ofMarch 15, 2024 . -
During the quarter, ICMB made investments in five new portfolio companies and one existing portfolio company. These investments totaled
$18.1 million , at cost. The weighted average yield (at origination) of debt investments made in the quarter was 12.13%. -
ICMB fully realized four portfolio companies during the quarter, totaling
$29.2 million in proceeds. The internal rate of return on this investment was 14.2%. -
During the quarter, the Company had net advances of
$0.3 million on its existing and new delayed draw and revolving credit commitments to portfolio companies. -
The weighted average yield on debt investments, at cost, for the quarter ended
December 31, 2023 , was 11.46%, compared to 11.01% for the quarter endedSeptember 30, 2023 . -
Net asset value decreased
$0.35 per share to$5.48 , compared to$5.83 as ofSeptember 30, 2023 . Net assets decreased by$5.0 million , or 6.0%, during the quarter endedDecember 31, 2023 compared toSeptember 30, 2023 .
Portfolio results, as of and for the three months ended |
||
Total assets |
|
|
Investment portfolio, at fair value |
|
|
Net assets |
|
|
Weighted average yield on debt investments, at cost (1) |
11.46% |
|
Net asset value per share |
|
|
Portfolio activity in the current quarter: |
|
|
Number of new investments |
5 |
|
Number of portfolio companies, end of period |
44 |
|
Total capital invested |
|
|
Proceeds from repayments, sales, and amortization |
|
|
Net investment income (NII) |
|
|
Net investment income per share |
|
|
Net decrease in net assets from operations |
$(2.9)mm |
|
Net decrease in net assets from operations per share |
|
|
Quarterly per share distribution paid on |
|
(1) Represents weighted average yield on total debt investments for the three months ended
The Company’s dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Board, by additional dividends as determined to be available by the Company’s net investment income and performance during the quarter.
On
This distribution represents a 16.85% yield on the Company’s
Portfolio and Investment Activities
During the quarter, the Company made investments in five new portfolio companies and one existing portfolio company. The aggregate capital invested during the quarter totaled
The Company received proceeds of
During the quarter, the Company had net advances of
The Company’s net realized, and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately
As of
Capital Resources
As of
Subsequent Events
From
Consolidated Statements of Assets and Liabilities |
||||||||||
|
|
|
|
|
|
|
|
|||
|
|
(Unaudited) |
|
|
|
|
||||
Assets |
|
|
|
|
|
|
|
|
||
Non-controlled, non-affiliated investments, at fair value (amortized cost of |
|
$ |
|
198,904,947 |
|
|
$ |
|
210,150,018 |
|
Affiliated investments, at fair value (amortized cost of |
|
|
|
8,476,606 |
|
|
|
|
9,961,311 |
|
Total investments, at fair value (amortized cost of |
|
|
|
207,381,553 |
|
|
|
|
220,111,329 |
|
Cash |
|
|
|
3,092,224 |
|
|
|
|
1,093,758 |
|
Cash, restricted |
|
|
|
11,572,138 |
|
|
|
|
8,057,458 |
|
Principal receivable |
|
|
|
89,224 |
|
|
|
|
93,581 |
|
Interest receivable |
|
|
|
1,346,541 |
|
|
|
|
2,041,877 |
|
Payment-in-kind interest receivable |
|
|
|
152,406 |
|
|
|
|
46,088 |
|
Due from affiliate |
|
|
|
515,361 |
|
|
|
|
— |
|
Other receivables |
|
|
|
— |
|
|
|
|
1,050 |
|
Prepaid expenses and other assets |
|
|
|
160,442 |
|
|
|
|
361,719 |
|
Total Assets |
|
$ |
|
224,309,889 |
|
|
$ |
|
231,806,860 |
|
Liabilities |
|
|
|
|
|
|
|
|
||
Notes payable: |
|
|
|
|
|
|
|
|
||
Revolving credit facility |
|
$ |
|
70,000,000 |
|
|
$ |
|
71,900,000 |
|
2026 Notes payable |
|
|
|
65,000,000 |
|
|
|
|
65,000,000 |
|
Deferred debt issuance costs |
|
|
|
(961,761 |
) |
|
|
|
(1,220,556 |
) |
Unamortized discount |
|
|
|
(159,998 |
) |
|
|
|
(195,553 |
) |
Notes payable, net |
|
|
|
133,878,241 |
|
|
|
|
135,483,891 |
|
Payable for investments purchased |
|
|
|
5,500,000 |
|
|
|
|
1,795,297 |
|
Dividend payable |
|
|
|
2,159,237 |
|
|
|
|
2,590,520 |
|
Income-based incentive fees payable |
|
|
|
128,876 |
|
|
|
|
576,023 |
|
Base management fees payable |
|
|
|
871,955 |
|
|
|
|
906,218 |
|
Interest payable |
|
|
|
2,268,211 |
|
|
|
|
2,293,766 |
|
Directors' fees payable |
|
|
|
4,343 |
|
|
|
|
15,755 |
|
Accrued expenses and other liabilities |
|
|
|
658,043 |
|
|
|
|
445,082 |
|
Total Liabilities |
|
|
|
145,468,906 |
|
|
|
|
144,106,552 |
|
Net Assets |
|
|
|
|
|
|
|
|
||
Common stock, par value |
|
|
|
14,395 |
|
|
|
|
14,392 |
|
Additional paid-in capital |
|
|
|
203,338,613 |
|
|
|
|
203,327,714 |
|
Distributable earnings (loss) |
|
|
|
(124,512,025 |
) |
|
|
|
(115,641,798 |
) |
Total Net Assets |
|
|
|
78,840,983 |
|
|
|
|
87,700,308 |
|
Total Liabilities and Net Assets |
|
$ |
|
224,309,889 |
|
|
$ |
|
231,806,860 |
|
Net Asset Value Per Share |
|
$ |
|
5.48 |
|
|
$ |
|
6.09 |
|
Consolidated Statements of Operations (unaudited) |
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For the three months ended
|
|
|
For the six months ended
|
|
||||||||||||||
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
||||||||
Investment Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
$ |
|
5,153,599 |
|
|
$ |
|
6,260,515 |
|
|
$ |
|
10,618,887 |
|
|
$ |
|
11,869,627 |
|
Affiliated investments |
|
|
|
540 |
|
|
|
|
— |
|
|
|
|
540 |
|
|
|
|
(20,611 |
) |
Total interest income |
|
|
|
5,154,139 |
|
|
|
|
6,260,515 |
|
|
|
|
10,619,427 |
|
|
|
|
11,849,016 |
|
Payment in-kind interest income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
586,119 |
|
|
|
|
17,933 |
|
|
|
|
667,500 |
|
|
|
|
182,667 |
|
Affiliated investments |
|
|
|
19,280 |
|
|
|
|
17,443 |
|
|
|
|
38,080 |
|
|
|
|
34,447 |
|
Total payment-in-kind interest income |
|
|
|
605,399 |
|
|
|
|
35,376 |
|
|
|
|
705,580 |
|
|
|
|
217,114 |
|
Dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
— |
|
|
|
|
101,755 |
|
|
|
|
— |
|
|
|
|
101,755 |
|
Affiliated investments |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Total dividend income |
|
|
|
— |
|
|
|
|
101,755 |
|
|
|
|
— |
|
|
|
|
101,755 |
|
Payment in-kind dividend income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
194,182 |
|
|
|
|
171,693 |
|
|
|
|
382,433 |
|
|
|
|
338,142 |
|
Affiliated investments |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Total payment-in-kind dividend income |
|
|
|
194,182 |
|
|
|
|
171,693 |
|
|
|
|
382,433 |
|
|
|
|
338,142 |
|
Other fee income |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
289,468 |
|
|
|
|
210,578 |
|
|
|
|
433,454 |
|
|
|
|
572,428 |
|
Affiliated investments |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Total other fee income |
|
|
|
289,468 |
|
|
|
|
210,578 |
|
|
|
|
433,454 |
|
|
|
|
572,428 |
|
Total investment income |
|
|
|
6,243,188 |
|
|
|
|
6,779,917 |
|
|
|
|
12,140,894 |
|
|
|
|
13,078,455 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
|
2,259,936 |
|
|
|
|
2,160,336 |
|
|
|
|
4,475,119 |
|
|
|
|
3,952,344 |
|
Base management fees |
|
|
|
980,260 |
|
|
|
|
1,057,104 |
|
|
|
|
1,959,179 |
|
|
|
|
2,161,085 |
|
Income-based incentive fees |
|
|
|
(72,942 |
) |
|
|
|
— |
|
|
|
|
(72,942 |
) |
|
|
|
(147,145 |
) |
Provision for tax expense |
|
|
|
109,497 |
|
|
|
|
65,858 |
|
|
|
|
210,244 |
|
|
|
|
110,188 |
|
Professional fees |
|
|
|
398,981 |
|
|
|
|
271,782 |
|
|
|
|
626,388 |
|
|
|
|
543,563 |
|
Allocation of administrative costs from Adviser |
|
|
|
629,045 |
|
|
|
|
375,900 |
|
|
|
|
892,420 |
|
|
|
|
751,800 |
|
Amortization of deferred debt issuance costs |
|
|
|
97,961 |
|
|
|
|
173,334 |
|
|
|
|
271,294 |
|
|
|
|
346,667 |
|
Amortization of original issue discount - 2026 Notes |
|
|
|
17,778 |
|
|
|
|
17,778 |
|
|
|
|
35,555 |
|
|
|
|
35,555 |
|
Insurance expense |
|
|
|
112,984 |
|
|
|
|
137,820 |
|
|
|
|
225,968 |
|
|
|
|
275,641 |
|
Directors' fees |
|
|
|
72,875 |
|
|
|
|
75,625 |
|
|
|
|
146,250 |
|
|
|
|
151,250 |
|
Custodian and administrator fees |
|
|
|
77,569 |
|
|
|
|
71,828 |
|
|
|
|
146,861 |
|
|
|
|
143,516 |
|
Other expenses |
|
|
|
91,550 |
|
|
|
|
136,334 |
|
|
|
|
215,827 |
|
|
|
|
275,815 |
|
Total expenses |
|
|
|
4,775,494 |
|
|
|
|
4,543,699 |
|
|
|
|
9,132,163 |
|
|
|
|
8,600,279 |
|
Waiver of base management fees |
|
|
|
(108,265 |
) |
|
|
|
(112,481 |
) |
|
|
|
(194,895 |
) |
|
|
|
(206,627 |
) |
Waiver of income-based incentive fees |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Net expenses |
|
|
|
4,667,229 |
|
|
|
|
4,431,218 |
|
|
|
|
8,937,268 |
|
|
|
|
8,393,652 |
|
Net investment income |
|
|
|
1,575,959 |
|
|
|
|
2,348,699 |
|
|
|
|
3,203,626 |
|
|
|
|
4,684,803 |
|
Net realized and unrealized gain/(loss) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) from investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
(5,871,039 |
) |
|
|
|
— |
|
|
|
|
(5,871,039 |
) |
|
|
|
— |
|
Affiliated investments |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
Net realized gain (loss) from investments |
|
|
|
(5,871,039 |
) |
|
|
|
— |
|
|
|
|
(5,871,039 |
) |
|
|
|
— |
|
Net change in unrealized appreciation (depreciation) in value of investments |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled, non-affiliated investments |
|
|
|
1,654,277 |
|
|
|
|
(1,649,361 |
) |
|
|
|
(513,221 |
) |
|
|
|
(2,113,636 |
) |
Affiliated investments |
|
|
|
(226,899 |
) |
|
|
|
(82,479 |
) |
|
|
|
(1,371,430 |
) |
|
|
|
(296,801 |
) |
Net change in unrealized appreciation (depreciation) on investments |
|
|
|
1,427,378 |
|
|
|
|
(1,731,840 |
) |
|
|
|
(1,884,651 |
) |
|
|
|
(2,410,437 |
) |
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments |
|
|
|
(4,443,661 |
) |
|
|
|
(1,731,840 |
) |
|
|
|
(7,755,690 |
) |
|
|
|
(2,410,437 |
) |
Net increase (decrease) in net assets resulting from operations |
|
$ |
|
(2,867,702 |
) |
|
$ |
|
616,859 |
|
|
$ |
|
(4,552,064 |
) |
|
$ |
|
2,274,366 |
|
Basic and diluted: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net investment income per share |
|
$ |
|
0.11 |
|
|
$ |
|
0.16 |
|
|
$ |
|
0.22 |
|
|
$ |
|
0.33 |
|
Earnings per share |
|
$ |
|
(0.20 |
) |
|
$ |
|
0.04 |
|
|
$ |
|
(0.32 |
) |
|
$ |
|
0.16 |
|
Weighted average shares of common stock outstanding |
|
|
|
14,394,081 |
|
|
|
|
14,388,242 |
|
|
|
|
14,393,398 |
|
|
|
|
14,387,526 |
|
Distributions paid per common share |
|
$ |
|
0.15 |
|
|
$ |
|
0.15 |
|
|
$ |
|
0.30 |
|
|
$ |
|
0.30 |
|
About
The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least
Forward-Looking Statements
Statements included in this press release and made on the earnings call for the quarter ended
Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the earnings call, is or will be included in the Company’s filings with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221321957/en/
Investor Relations
Email: icmbinvestorrelations@investcorp.com
Phone:(646) 690-5047
Source: