Carlyle Credit Income Fund Announces Second Quarter 2024 Financial Results

Rhea-AI Summary

Carlyle Credit Income Fund (NYSE: CCIF) announced its second quarter 2024 financial results for the period ending March 31, 2024. Key highlights include deploying the remaining proceeds from the preferred stock offering into new CLO equity positions, yielding a weighted average GAAP yield of 19.4%, and an aggregate portfolio yield of 20.8%. The fund maintained a monthly dividend of $0.1050 per share, representing a 15.95% annualized yield based on the May 28, 2024, share price. Net investment income was $0.33 per common share, with a net asset value of $7.88 per share. The total fair value of investments stood at $142.1 million. Additionally, the Fund sold 570,000 common shares, generating net proceeds of $4.5 million.

Positive

• Successfully deployed the remaining proceeds from the preferred stock offering with a weighted average GAAP yield of 19.4%.
• Aggregate portfolio weighted average GAAP yield stood at 20.8% as of March 31, 2024.
• Maintained a monthly dividend of $0.1050 per share, equating to a 15.95% annualized yield.
• Net investment income for the second quarter was $0.33 per common share.
• Net asset value per common share was $7.88 as of March 31, 2024.
• Total fair value of investments was $142.1 million as of March 31, 2024.
• Sold 570,000 common shares at a premium to NAV, generating net proceeds of $4.5 million.

Negative

• No mention of significant increases in net asset value or substantial appreciation in fair value of investments, indicating potential stagnation.
• No clear indication of new investment initiatives or expansion strategies beyond existing CLO positions, possibly limiting future growth opportunities.

Insights

Financial Analyst

The financial results announced by Carlyle Credit Income Fund (CCIF) for the second quarter of 2024 reflect several key aspects that are informative for investors. The deployment of the remaining proceeds from the preferred stock offering into new CLO equity positions with a weighted average GAAP yield of 19.4% is significant. This high yield suggests that CCIF has successfully managed to find profitable investment opportunities, which is encouraging for shareholders.

The aggregate portfolio weighted average GAAP yield of 20.8% further emphasizes the fund’s strong performance in generating income from its investments. This can offer reassurance to investors looking for income stability and high returns.

The maintenance of the monthly dividend of 10.5 cents through August 2024, equating to a 15.95% annualized dividend, is a positive signal of the fund's capacity to generate and distribute consistent income. This aspect is important for income-focused investors who rely on regular dividends.

A noteworthy point is the sale of 570,000 common shares at a premium to NAV, leading to net proceeds of $4.5 million. This indicates effective capital raising and management, which can aid in further investment opportunities and reinforce the fund’s financial health.

Net investment income of $0.33 per common share and a net asset value (NAV) of $7.88 per common share highlight the fund’s profitability and asset valuation. These metrics are fundamental for assessing the fund’s performance and growth potential.

Rating: 1 (positive)

Market Research Analyst

From a market perspective, the Carlyle Credit Income Fund's (CCIF) results highlight several important factors. The declaration of dividends on both common and preferred shares demonstrates CCIF’s commitment to shareholder returns. The Series A Term Preferred Shares yielding 8.75% with a dividend of $0.1823 per share indicates the fund’s ability to provide attractive returns on preferred stock investments.

The fund's strategy of rotating into a CLO investing strategy aligns with current market trends where structured credit products, such as CLOs, are gaining traction. CLOs (Collateralized Loan Obligations) are essentially investment vehicles backed by a pool of loans, typically offering high yields and diversification benefits. This strategic shift could potentially enhance the fund's risk-adjusted returns.

The maintenance of a monthly dividend for the coming months is likely to attract dividend-seeking investors, reinforcing the fund's appeal among income-focused market participants. Moreover, the successful completion of the ATM offering program at a premium to NAV underscores investor confidence and market demand for CCIF’s shares.

This combination of high yields from CLO investments, consistent dividend payouts and effective capital raising activities positions CCIF favorably within the market, potentially driving future share price appreciation and investor interest.

Rating: 1 (positive)

NEW YORK, May 29, 2024 /PRNewswire/ -- Carlyle Credit Income Fund ("we," "us," "our," "CCIF" or the "Fund") (NYSE: CCIF) today announced its financial results for its second quarter ending March 31, 2024. The full detailed presentation of the Fund's second quarter 2024 financial results can be viewed on the Fund's website carlylecreditincomefund.com/investor-dashboard.

Lauren Basmadjian, CCIF's Chief Executive Officer said, "As of quarter end, we have successfully deployed the remaining proceeds from the preferred stock offering into new CLO equity positions.  Our diversified portfolio of CLO investments is producing historically high cash distributions, further supporting our original investment thesis of rotating the fund into a CLO investing strategy."

Over the past quarter, the Fund has successfully:

• Deployed the remaining proceeds from the preferred stock offering with a weighted average GAAP yield of 19.4%. The aggregate portfolio weighted average GAAP yield was 20.8% as of March 31, 2024.
  
  
  
• Maintained the monthly dividend of 10.5 cents through August 2024, equating to a 15.95% annualized dividend based on share price as of May 28, 2024.
  
  
  
• Sold 570,000 common shares in connection with the ATM offering program at a premium to NAV for net proceeds of $4.5 million.

Net investment income for the second quarter of 2024 was $0.33 per common share and net asset value per common share was $7.88 on March 31, 2024. The total fair value of investments was $142.1 million as of March 31, 2024.

Dividends

CCIF is maintaining a monthly dividend on shares of the Fund's common stock of $0.1050 per share for June, July, and August 2024. The monthly dividend represents an annualized yield of 15.95% based on closing share price of $7.90 on May 28, 2024.

Security	Amount per Share	Record Dates	Payable Dates
Common Stock	$0.1050	June 17, 2024	June 28, 2024
		July 19, 2024	July 31, 2024
		August 20, 2024	August 30, 2024

CCIF is also pleased to announce the declaration of dividends on shares of the Fund's 8.75% Series A Term Preferred Shares of $0.1823 per share for June, July, and August 2024.

 

Security	Amount per Share	Record Dates	Payable Dates
Series A Preferred Shares	$0.1823	June 17, 2024	June 28, 2024
		July 19, 2024	July 31, 2024
		August 20, 2024	August 30, 2024

 

Conference Call

The Fund will host a conference call at 10:00 a.m. EDT on Thursday, May 30, 2024 to discuss its second quarter financial results. Please register for the conference call here. The conference call information will also be available via a link on Carlyle Credit Income Fund's website and the recording will be available on our website soon after the call's completion.

About Carlyle Credit Income Fund

Carlyle Credit Income Fund (NYSE: CCIF) is an externally managed closed-end fund focused on investing in primarily equity and junior debt tranches of collateralized loan obligations ("CLOs"). The CLOs are collateralized by a portfolio consisting primarily of U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors. CCIF is externally managed by Carlyle Global Credit Investment Management L.L.C. ("CGCIM"), an SEC-registered investment adviser and wholly owned subsidiary of Carlyle. CCIF draws upon the significant scale and resources of Carlyle as one of the world's largest CLO managers.

Web: www.carlylecreditincomefund.com

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "anticipates," "believes," "expects," "intends," "will," "should," "may," "plans," "continue," "believes," "seeks," "estimates," "would," "could," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled "Risk Factors" and "Cautionary Statement Regarding Forward-Looking Statements" in filings we make with the Securities and Exchange Commission, and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

 

 

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SOURCE Carlyle Credit Income Fund

FAQ

What is the net investment income of CCIF for Q2 2024?

The net investment income for CCIF in Q2 2024 was $0.33 per common share.

What is the net asset value of CCIF as of March 31, 2024?

The net asset value of CCIF as of March 31, 2024, was $7.88 per common share.

What is the annualized dividend yield of CCIF as of May 28, 2024?

The annualized dividend yield of CCIF as of May 28, 2024, is 15.95%.

How much did CCIF raise from selling common shares in Q2 2024?

CCIF raised $4.5 million from selling 570,000 common shares in Q2 2024.

What is the total fair value of CCIF investments as of March 31, 2024?

The total fair value of CCIF investments as of March 31, 2024, is $142.1 million.

What is the weighted average GAAP yield of CCIF's portfolio as of March 31, 2024?

The weighted average GAAP yield of CCIF's portfolio as of March 31, 2024, is 20.8%.

When will CCIF's monthly dividends be paid in 2024?

CCIF's monthly dividends will be paid on June 28, July 31, and August 30, 2024.