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

Rhea-AI Summary

Crescent Capital BDC, Inc. reported strong financial performance for the first quarter of 2024, with net investment income per share of $0.63 and NAV per share of $20.28. The company also increased its quarterly dividend to $0.42 per share. Investments, total assets, and net asset value all showed positive trends. The company's portfolio remained diversified across various asset types. The quarter saw new investments and exits, with an increase in investment income. Liquidity and capital resources remained healthy, with a good debt to equity ratio. Overall, Crescent BDC demonstrated stability and growth in its financial operations.

Positive

• Strong financial performance for the first quarter of 2024.

• Net investment income per share of $0.63.

• NAV per share increased to $20.28.

• Increased quarterly dividend to $0.42 per share.

• Positive trends in investments, total assets, and net asset value.

• Diversified portfolio across various asset types.

• New investments and exits, with an increase in investment income.

• Healthy liquidity and capital resources.

• Good debt to equity ratio of 1.11x.

• Demonstrated stability and growth in financial operations.

Negative

• None.

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.

FAQ

What was Crescent Capital BDC, Inc.'s net investment income per share for the first quarter of 2024?

Crescent Capital BDC, Inc. reported net investment income per share of $0.63 for the quarter ended March 31, 2024.

What was Crescent Capital BDC, Inc.'s NAV per share as of March 31, 2024?

Crescent Capital BDC, Inc.'s NAV per share was $20.28 as of March 31, 2024.

When is Crescent Capital BDC, Inc.'s second quarter 2024 regular cash dividend payable?

The second quarter 2024 regular cash dividend of $0.42 per share is payable on July 15, 2024.

How many portfolio companies did Crescent Capital BDC, Inc. have investments in as of March 31, 2024?

As of March 31, 2024, Crescent Capital BDC, Inc. had investments in 183 portfolio companies.

What was the weighted average yield on income producing securities for Crescent Capital BDC, Inc.?

The weighted average yield on income producing securities for Crescent Capital BDC, Inc. was 12.3%.