Chicago Atlantic BDC, Inc. Reports Fourth Quarter and Full Year 2024 Financial Results

Rhea-AI Summary

Chicago Atlantic BDC (NASDAQ: LIEN) reported its Q4 and full-year 2024 financial results. Key Q4 highlights include: total investment income of $12.7 million, net investment income of $8.0 million ($0.35 per share), and an investment portfolio valued at $275.2 million across 28 portfolio companies.

The company completed its Loan Portfolio Acquisition from Chicago Atlantic Loan Portfolio (CALP) on October 1, 2024, receiving a portfolio valued at $219.6 million in exchange for 16,605,372 newly issued shares. The company declared quarterly dividends of $0.34 per share for Q4 2024 and Q1 2025, representing a 36% increase from Q3 2024.

Notable developments include securing a new $100 million senior secured revolving credit facility in February 2025, funding $24.8 million in Q4 2024 investments, and $20.8 million in Q1 2025. The company's NAV per share was $13.20 as of December 31, 2024, with total net assets of $301.2 million.

Positive

• 36% dividend increase to $0.34 per share
• Secured new $100M revolving credit facility
• No loans on non-accrual status
• Portfolio expansion with $24.8M in Q4 investments and $20.8M in Q1 2025
• Successful completion of $219.6M loan portfolio acquisition

Negative

• NAV per share decreased to $13.20 from $13.28 QoQ and $13.77 YoY
• Transaction expenses from Loan Portfolio Acquisition impacted earnings

Insights

Financial Analyst

Chicago Atlantic BDC's Q4 results reflect transformative growth with $12.7 million in investment income and $8.0 million ($0.35 per share) in net investment income. The 36% dividend increase to $0.34 per share signals significant confidence from management, especially considering the previous $0.25 quarterly payout.

The company's NAV of $13.20 per share represents a modest decline from $13.28 QoQ and $13.77 YoY, but this must be viewed in context of the substantial portfolio acquisition expenses. Excluding $0.3 million of acquisition-related costs in Q4, adjusted net investment income was $0.36 per share, providing 1.06x dividend coverage – a healthy margin for a BDC.

The new $100 million credit facility secured in February enhances LIEN's liquidity profile and growth capacity. The SOFR plus 3.00% pricing indicates reasonable financing costs in today's market, though the floating rate structure does create some interest rate sensitivity that bears monitoring.

Most impressively, LIEN has maintained zero loans on non-accrual status despite operating in specialized lending markets, suggesting strong underwriting discipline. The $45.6 million in new fundings since October demonstrates continued market opportunity and dealflow.

The integration of the acquired loan portfolio appears to be proceeding well, with the expanded $275.2 million investment portfolio across 28 companies providing enhanced scale and diversification benefits that should drive operating efficiencies over time.

Specialty Finance Strategist

The acquisition of Chicago Atlantic Loan Portfolio represents a transformative strategic move that has fundamentally reshaped LIEN's market position. By increasing the outstanding share count from approximately 6.2 million to 22.8 million shares and expanding the portfolio to $275.2 million, LIEN has achieved critical mass needed to operate efficiently in the specialty finance space.

This transaction fundamentally shifts the company's focus toward cannabis and underserved lending markets – sectors with higher yields but requiring specialized expertise to navigate effectively. The company's ability to maintain zero non-performing loans while operating in these niches suggests a competitive advantage in underwriting and monitoring these specialized credits.

The investment deployment cadence is particularly noteworthy. With $24.8 million funded in Q4 and $20.8 million already deployed in early 2025, LIEN is demonstrating consistent deal sourcing capabilities post-acquisition. The mix of expanding existing borrower relationships (five of eight Q4 investments) while adding new relationships indicates both portfolio diversification and deepening of existing lending partnerships.

The $100 million credit facility led by an FDIC-insured institution adds credibility to LIEN's lending model. Bank funding represents a lower-cost, more stable capital source compared to alternatives, and securing institutional backing signals validation of the company's underwriting approach in what many traditional lenders consider challenging sectors.

This strategic repositioning places LIEN among the specialized lenders able to generate premium yields in underbanked sectors, with the scale now to deliver operational efficiency and consistent shareholder returns.

NEW YORK, March 31, 2025 (GLOBE NEWSWIRE) -- Chicago Atlantic BDC, Inc. (“LIEN” or the “Company”) (NASDAQ: LIEN), formerly Silver Spike Investment Corp., a specialty finance company that has elected to be regulated as a business development company, today announced its financial results for the fourth quarter and year ended December 31, 2024.

Fourth Quarter 2024 Highlights and Subsequent Events

• Total investment income of $12.7 million
• Net investment income of $8.0 million, or $0.35 per weighted average share outstanding
• Investment portfolio of $275.2 million at fair value
• Net asset value (“NAV”) per share was $13.20 on December 31, 2024
• As previously announced, on October 1, 2024, the Company acquired a portfolio of loans (the “Loan Portfolio”) from Chicago Atlantic Loan Portfolio, LLC (“CALP”) in exchange for newly issued shares of the Company’s common stock (the “Loan Portfolio Acquisition”)
• In connection with the Loan Portfolio Acquisition, the Company was renamed “Chicago Atlantic BDC, Inc.,” and its ticker symbol was changed to “LIEN.” The changes to the Company’s name and ticker symbol became effective in the market at the open of business on October 2, 2024.
• Declared a dividend of $0.34 per share for each of the quarters ended December 31, 2024 and March 31, 2025
• Closed a new $100 million senior secured revolving credit facility on February 12, 2025
• Funded $24.8 million in investments in the fourth quarter of 2024 and $20.8 million in new investments to date in the first quarter of 2025
• As of December 31, 2024, there were 22,820,386 common shares issued and outstanding on a basic and fully diluted basis

Peter Sack, Chief Executive Officer of the Company, commented, “We are pleased to provide the Company’s first earnings information following the completion of the Loan Portfolio Acquisition. Since the Loan Portfolio Acquisition, we have continued to create a scaled, diversified portfolio of senior secured investments, generate highly attractive yields, and leverage our industry leading expertise in cannabis and other underserved lending markets.”

“We are quite proud of our achievements to date, including declaring two quarterly dividends of $0.34 per share, a 36% increase from the $0.25 per share dividend for the quarter ended September 30, 2024, closing of a $100 million senior secured revolving credit facility, and deploying an estimated total of $45.6 million in gross fundings by principal value since October 1, 2024.”

Loan Portfolio Acquisition Closing

On October 1, 2024, the Company completed its previously announced acquisition from CALP of the Loan Portfolio in exchange for 16,605,372 newly issued shares of the Company’s common stock. The Loan Portfolio was determined by the Company to have a fair value of $219.6 million as of September 28, 2024. As a result of the Loan Portfolio Acquisition, CALP and legacy Company stockholders owned approximately 72.8% and 27.2%, respectively, of the outstanding shares of the Company’s common stock as of October 1, 2024. Upon the closing of the Loan Portfolio Acquisition, there were 22,820,367 shares of the Company’s common stock outstanding.

$100 Million Senior Secured Revolving Credit Facility

On February 12, 2025, the Company closed a new $100 million senior secured revolving credit facility (the “Credit Facility”) led by an FDIC-insured financial institution. The Credit Facility matures in March 2028 and bears interest at Secured Overnight Financing Rate ("SOFR") plus 3.00%.

Portfolio and Investment Activity

• As of December 31, 2024, the Company’s investment portfolio had an aggregate fair value of approximately $275.2 million across 28 portfolio companies.
• During the quarter ended December 31, 2024, the Company funded eight investments with an aggregate par value of $24.8 million, five of which were in existing borrowers.
• During the quarter ended December 31, 2024, the Company had principal repayments and sales of investments of $13.0 million and $4.1 million, respectively, of which $4.9 million was receivable as of December 31, 2024.
• As of December 31, 2024, there were no loans on non-accrual status.

Subsequent Investment Activity

• Subsequent to quarter end, the Company funded 4 investments with an aggregate par value of $20.8 million.
  

Results of Operations

For the three months ended December 31, 2024, total investment income was $12.7 million. For the three months ended December 31, 2024, the Company incurred total expenses of $4.7 million, which included $0.3 million of expenses related to the Loan Portfolio Acquisition, resulting in net investment income of $8.0 million, or $0.35 per weighted average share, and a net increase in net assets from operations of $8.0 million, or $0.35 per weighted average share. Excluding expenses incurred in connection with the Loan Portfolio Acquisition, the Company reported net investment income of $8.3 million, or $0.36 per weighted average share, and a net increase in net assets from operations of $8.3 million, or $0.36 per weighted average share.

For the fiscal year ended December 31, 2024, total investment income was $21.7 million. For the fiscal year ended December 31, 2024, the Company incurred total expenses of $12.2 million, which included $5.3 million of expenses related to the Loan Portfolio Acquisition, resulting in net investment income of $9.5 million, or $0.91 per weighted average share, and a net increase in net assets from operations of $9.6 million, or $0.93 per weighted average share. Excluding expenses incurred in connection with the Loan Portfolio Acquisition, the Company reported net investment income of $14.8 million, or $1.43 per weighted average share, and a net increase in net assets from operations of $14.9 million, or $1.45 per weighted average share.

Net Asset Value

As of December 31, 2024, NAV per share decreased to $13.20 from $13.28 as of September 30, 2024 and $13.77 as of December 31, 2023. The decrease in NAV per share was primarily driven by growth in net investment income from the loan portfolio, offset by dividend payments and transaction expenses related to the Loan Portfolio Acquisition. Total net assets as of December 31, 2024 were $301.2 million, compared to $82.5 million as of September 30, 2024 and $85.6 million as of December 31, 2023.

Conference Call and Quarterly Earnings Presentation

The Company will host a conference call and live audio webcast, both open for the general public to hear, to discuss the Company's fourth quarter and full year 2024 financial results at 8:30 a.m. Eastern Time on Monday, March 31, 2025. The number to call for the conference call is (833) 630-1956 (international callers: 412-317-1837). The live audio webcast of the call will also be available on the Company’s website at lien.chicagoatlantic.com.

A replay of the call will be available at lien.chicagoatlantic.com by the end of day on March 31, 2025.

Call Details – Chicago Atlantic BDC, Inc. Fourth Quarter and Full Year 2024 Financial Results:

• When: Monday, March 31, 2025
• Time: 8:30 a.m. ET
• Webcast Live Stream: https://edge.media-server.com/mmc/p/xcxtai7e
• Replay: lien.chicagoatlantic.com

LIEN posted its Fourth Quarter and Full Year 2024 Earnings Presentation on the Events and Presentations page of its website, lien.chicagoatlantic.com. LIEN routinely posts important information for investors on its website. The Company intends to use this website as a means of disclosing material information, for complying with our disclosure obligations under Regulation FD and to post and update investor presentations and similar materials on a regular basis. The Company encourages investors, analysts, the media and others interested in LIEN to monitor the Investor Relations page of its website, in addition to following its press releases, Securities and Exchange Commission (“SEC”) filings, publicly available earnings calls, presentations, webcasts and other information posted from time to time on the website. Please visit the IR Resources section of the website to sign up for email notifications.

About Chicago Atlantic BDC, Inc.
The Company is a specialty finance company that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended, and has elected to be treated as a regulated investment company for U.S. federal income tax purposes. The Company’s investment objective is to maximize risk-adjusted returns on equity for its stockholders by investing primarily in direct loans to privately held middle-market companies, with a primary focus on cannabis companies. The Company is managed by Chicago Atlantic BDC Advisers, LLC, an investment manager focused on the cannabis industry and other niche or underfollowed sectors. For more information, please visit lien.chicagoatlantic.com.

Forward-Looking Statements
Some of the statements in this communication constitute forward-looking statements because they relate to future events, future performance or financial condition of the Company or the Loan Portfolio Acquisition. The forward-looking statements may include statements as to: future operating results of the Company and distribution projections; business prospects of the Company and the prospects of its portfolio companies; and the impact of the investments that the Company expects to make. In addition, words such as “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words indicate forward-looking statements, although not all forward-looking statements include these words. The forward-looking statements contained in this communication involve risks and uncertainties. Certain factors could cause actual results and conditions to differ materially from those projected, including the uncertainties associated with (i) the ability to realize the anticipated benefits of the Loan Portfolio Acquisition; (ii) risks related to diverting management’s attention from ongoing business operations; (iii) the risk that stockholder litigation in connection with the Loan Portfolio Acquisition may result in significant costs of defense and liability; (iv) changes in the economy, financial markets and political environment, including the impacts of inflation and rising interest rates; (v) risks associated with possible disruption in the operations of the Company or the economy generally due to terrorism, war or other geopolitical conflict (including the current conflict between Russia and Ukraine and the current conflict between Israel and Hamas), natural disasters or global health pandemics, such as the COVID-19 pandemic; (vi) future changes in laws or regulations (including the interpretation of these laws and regulations by regulatory authorities); (vii) changes in political, economic or industry conditions, the interest rate environment or conditions affecting the financial and capital markets that could result in changes to the value of the Company’s assets; (viii) elevating levels of inflation, and its impact on the Company, on its portfolio companies and on the industries in which it invests; (ix) the Company’s plans, expectations, objectives and intentions, as a result of the Loan Portfolio Acquisition; (x) the future operating results and net investment income projections of the Company; (xi) the ability of the Chicago Atlantic BDC Advisers, LLC (the “Adviser”) to locate suitable investments for the Company and to monitor and administer its investments; (xii) the ability of the Adviser or its affiliates to attract and retain highly talented professionals; (xiii) the business prospects of the Company and the prospects of its portfolio companies; (xiv) the impact of the investments that the Company expects to make; (xv) the expected financings and investments and additional leverage that the Company may seek to incur in the future; (xvi) conditions in the Company’s operating areas, particularly with respect to business development companies or regulated investment companies; (xvii) the realization generally of the anticipated benefits of the Loan Portfolio Acquisition and the possibility that the Company will not realize those benefits, in part or at all; (xviii) the performance of the loans included in the Loan Portfolio, and the possibility of defects or deficiencies in such loans notwithstanding the diligence performed by the Company and its advisors; (xix) the ability of the Company to realize cost savings and other management efficiencies in connection with the Loan Portfolio Acquisition as anticipated; (xx) the reaction of the trading markets to the Loan Portfolio Acquisition and the possibility that a more liquid market or more extensive analyst coverage will not develop for the Company as anticipated; (xxi) the reaction of the financial markets to the Loan Portfolio Acquisition and the possibility that the Company will not be able to raise capital as anticipated; (xxii) the strategic, business, economic, financial, political and governmental risks and other risk factors affecting the business of the Company and the companies in which it is invested as described in the Company’s public filings with the SEC and (xxiii) other considerations that may be disclosed from time to time in the Company’s publicly disseminated documents and filings. The Company has based the forward-looking statements included in this communication on information available to it on the date of this communication, and it assumes no obligation to update any such forward-looking statements. Although the Company undertakes no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise, you are advised to consult any additional disclosures that the Company may make directly to you or through reports that the Company in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K.

Contact
Tripp Sullivan
SCR Partners
LIEN@chicagoatlantic.com

CHICAGO ATLANTIC BDC, INC. Statements of Assets and Liabilities
		December 31, 2024				December 31, 2023
ASSETS
Investments at fair value:
Non-control/non-affiliate investments at fair value (amortized cost of $274,346,711 and $53,471,317, respectively)		$	275,241,398			$	54,120,000
Cash and cash equivalents			23,932,406				32,611,635
Receivable for investment sold			4,122,500				-
Interest receivable			3,582,610				1,755,360
Due from affiliates			2,361,019				-
Prepaid expenses and other assets			321,108				89,276
Total assets		$	309,561,041			$	88,576,271
LIABILITIES
Transaction fees payable related to the Loan Portfolio Acquisition		$	2,945,125			$	711,264
Income-based incentive fees payable			1,998,945				1,511,253
Offering costs payable			989,645				-
Due to affiliates			905,129				-
Management fee payable			758,362				257,121
Professional fees payable			458,809				431,953
Capital gains incentive fees payable			121,887				87,583
Excise tax payable			88,709				10,655
Deferred financing costs payable			47,881				-
Other payables			46,219				13,822
Unearned interest income			37,752				-
Distributions payable			-				2
Total liabilities		$	8,398,463			$	3,023,653
Commitments and contingencies (Note 6)
NET ASSETS
Common stock, $0.01 par value, 100,000,000 shares authorized, 22,820,386 and 6,214,941 shares issued and outstanding, respectively			228,204				62,149
Additional paid-in-capital			303,272,034				85,041,203
Distributable earnings (accumulated loss)			(2,337,660	)			449,266
Total net assets		$	301,162,578			$	85,552,618
NET ASSET VALUE PER SHARE		$	13.20			$	13.77

CHICAGO ATLANTIC BDC, INC. Statements of Operations
	Three months ended December 31, (unaudited)						.	Years ended December 31,
		2024				2023			2024				2023
INVESTMENT INCOME
Non-control/non-affiliate investment income
Interest income	$	11,702,240			$	3,630,636		$	19,905,843			$	11,736,649
Fee income		945,983				33,751			1,759,910				196,251
Total investment income		12,648,223				3,664,387			21,665,753				11,932,900
EXPENSES
Transaction expenses related to the Loan Portfolio Acquisition		272,717				711,264			5,341,779				711,264
Income-based incentive fees		1,998,944				459,512			2,327,448				1,511,253
Management fee		758,362				253,291			1,504,239				1,013,764
General and administrative expense		700,000				-			700,000				-
Professional fees		286,457				124,414			527,358				435,090
Audit expense		197,975				90,333			497,200				499,698
Administrator fees		151,842				84,939			449,974				335,253
Other expenses		123,611				91,157			430,254				355,672
Legal expenses		82,083				9,516			282,156				343,824
Excise tax expense		88,709				10,655			120,024				10,655
Capital gains incentive fees		(3,161	)			87,583			34,304				87,583
Total expenses		4,657,539				1,922,664			12,214,736				5,304,056
NET INVESTMENT INCOME (LOSS)		7,990,684				1,741,723			9,451,017				6,628,844
NET REALIZED GAIN (LOSS) FROM INVESTMENTS
Non-controlled non-affiliate investments		(74,483	)			-			(74,483	)			(210,767	)
Net realized gain (loss) from investments		(74,483	)			-			(74,483	)			(210,767	)
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) ON INVESTMENTS
Non-controlled non-affiliate investments		58,678				756,019			246,004				922,031
Net change in unrealized appreciation (depreciation) on investments		58,678				756,019			246,004				922,031
Net realized and unrealized gains (losses)		(15,805	)			756,019			171,521				711,264
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS		7,974,879				2,497,742			9,622,538				7,340,108
NET INVESTMENT INCOME (LOSS) PER SHARE - BASIC AND DILUTED	$	0.35			$	0.28		$	0.91			$	1.07
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS PER SHARE - BASIC AND DILUTED	$	0.35			$	0.40		$	0.93			$	1.18
WEIGHTED AVERAGE SHARES OUTSTANDING - BASIC AND DILUTED		22,820,368				6,214,682			10,343,621				6,214,682

FAQ

What was LIEN's net investment income for Q4 2024?

LIEN reported net investment income of $8.0 million ($0.35 per share) for Q4 2024.

How much did LIEN's quarterly dividend increase in Q4 2024?

LIEN's quarterly dividend increased 36% to $0.34 per share from $0.25 in Q3 2024.

What was the value of LIEN's loan portfolio acquisition from CALP?

The acquired loan portfolio had a fair value of $219.6 million as of September 28, 2024.

What are the terms of LIEN's new credit facility secured in February 2025?

LIEN secured a $100 million senior secured revolving credit facility maturing in March 2028, with interest at SOFR plus 3.00%.

How many portfolio companies did LIEN invest in as of December 31, 2024?

LIEN's investment portfolio included 28 portfolio companies with a fair value of $275.2 million.