ICMB Investcorp Credit Management BDC Inc

Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal period ended December 31, 2024.

HIGHLIGHTS

• On March 20, 2025, the Company’s Board of Directors (the “Board”) declared a distribution of $0.12 per share for the quarter ending March 31, 2025, payable in cash on May 16, 2025, to stockholders of record as of April 25, 2025.
• During the quarter, ICMB made investments in two new portfolio companies and two existing portfolio companies. These investments totaled $9.9 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 11.81%.
• ICMB fully realized its investments in two portfolio companies during the quarter, totaling $7.6 million in proceeds. The internal rate of return on these investments was 17.20%.
• During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies.
• The weighted average yield on debt investments, at fair value, for the quarter ended December 31, 2024, was 10.36%, compared to 10.51% for the quarter ended September 30, 2024.
• Net asset value decreased $0.16 per share to $5.39, compared to $5.55 as of September 30, 2024. Net assets decreased by $2.3 million, or 2.86%, during the quarter ended December 31, 2024 compared to September 30, 2024.

Portfolio results, as of and for the three months ended December 31, 2024:

 

Total assets

$206.9mm

Investment portfolio, at fair value

$191.6mm

Net assets

$77.6mm

Weighted average yield on debt investments, at cost (1)

10.36%

Net asset value per share

$5.39

Portfolio activity in the current quarter:

 

Number of investments in new portfolio companies during the period

2

Number of portfolio companies invested in, end of period

43

Total capital invested in existing portfolio companies (2)

$4.2mm

Total proceeds from repayments, sales, and amortization (3)

$8.7mm

Net investment income (NII)

$0.8mm

Net investment income per share

$0.06

Net decrease in net assets from operations

$(0.6)mm

Net decrease in net assets from operations per share

$(0.04)

Distributions paid per common share

$0.12

(1)

Represents weighted average yield on total debt investments held as of December 31, 2024. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company’s stockholders.

(2)

Includes gross advances to existing delayed draw and revolving credit commitments to portfolio companies and PIK interest.

(3)

Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies.

Mr. Suhail A. Shaikh said, “Amid heightened market volatility, we remain focused on navigating the evolving landscape. Despite these headwinds, we have maintained a rigorous investment approach, prioritizing opportunities that align with our underwriting standards. While refinancing activity has provided some avenues for capital deployment, we continue to take a highly selective stance on new deals. Our priority remains preserving portfolio stability and positioning the company for long-term growth as market conditions evolve.

“I am also pleased to announce that Andrew Muns has been appointed as the Chief Operating Officer of ICMB. Andrew brings a wealth of experience and is a senior member of the Company’s Investment Adviser. I look forward to working closely with Andrew to continue to deliver shareholder value.”

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 March 20, 2025, the Board declared a distribution for the quarter ended March 31, 2025 of $0.12 per share payable on May 16, 2025 to stockholders of record as of April 25, 2025.

This distribution represents a 15.84% yield on the Company’s $3.03 share price as of market close on December 31, 2024. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the dividend for the quarter ending December 31, 2024, to be comprised of a return of capital. The Company’s investment adviser monitors available taxable earnings, including net investment income and realized capital gains, to determine if a return of capital may occur for the year. The Company estimates the source of its distributions as required by Section 19(a) of the Investment Company Act of 1940 to determine whether payment of dividends are expected to be paid from any other source other than net investment income accrued for the current period or certain cumulative periods, but the Company will not be able to determine whether any specific distribution will be treated as taxable earnings or as a return of capital until after at the end of the taxable year.

Portfolio and Investment Activities

During the quarter, the Company made investments in two new portfolio companies and two existing portfolio companies. The aggregate capital invested during the quarter totaled $9.9 million, at cost, and the debt investments were made at a weighted average yield of 11.81%.

The Company received proceeds of $7.6 million from repayments, sales and amortization during the quarter, primarily related to the realization of Amerit Fleet Holdings, LLC.

During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies.

The Company’s net realized, and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $(1.4) million, or $(0.10) per share. The total net decrease in net assets resulting from operations for the quarter was $(0.6) million, or $(0.04) per share.

As of December 31, 2024, the Company’s investment portfolio consisted of investments in 43 portfolio companies, of which 81.17% were first lien investments and 18.83% were equity, warrants, and other investments. The Company’s debt portfolio consisted of 96.4% floating rate investments and 3.6% fixed rate investments.

Capital Resources

As of December 31, 2024, the Company had $12.1 million in cash, of which $11.3 million was restricted cash, and $41.5 million of unused and available capacity under its revolving credit facility with Capital One, N.A.

Subsequent Events

Subsequent to December 31, 2024 and through March 25, 2025, the Company invested a total of $3.9 million, which included investments in one new portfolio company and two existing portfolio companies, and received approximately $3.5 million from the repayment of two positions. As of March 25, 2025, the Company had investments in 42 portfolio companies.

Other Updates

The Company is pleased to announce that Andrew Muns has been appointed by the Company’s Board as the new Chief Operating Officer of the Company, effective March 24, 2025. Mr. Muns currently serves on CM Investment Partners LLC's investment committee. Mr. Muns joined Investcorp in 2019 as part of the acquisition of CM Investment Partners LLC. Previously, he served as a Managing Director at CM Investment Partners LLC and was a joint employee of both CM Investment Partners LLC and Stifel. Mr. Muns co-founded the Credit Investments Group and served as its Head of Credit. He joined Stifel in 2012 from Cantor Fitzgerald, where he was a Managing Director on the Special Situations and Leveraged Loans Desk. Mr. Muns holds an M.B.A. from Columbia Business School and a B.A. in Mathematics from Northwestern University.

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

 

 

December 31, 2024

 

June 30, 2024

 

June 30, 2023

Assets

 

 

 

Non-controlled, non-affiliated investments, at fair value (amortized cost of

$184,154,029, $189,319,802, and $219,319,251, respectively)

 

$

 

188,602,029

 

 

 

$

 

181,948,376

 

 

 

$

 

210,150,018

 

 

Affiliated investments, at fair value (amortized cost of $16,351,878,

$15,149,238, and $23,979,565, respectively)

 

 

 

3,014,929

 

 

 

 

 

2,621,154

 

 

 

 

 

9,961,311

 

 

Total investments, at fair value (amortized cost of $200,505,907, $204,469,040, and

$243,298,816, respectively)

 

 

 

191,616,958

 

 

 

 

 

184,569,530

 

 

 

 

 

220,111,329

 

 

Cash

 

771,483

 

 

158,768

 

 

1,093,758

 

Cash, restricted

 

11,333,064

 

 

4,950,036

 

 

8,057,458

 

Principal receivable

 

720,855

 

 

50,609

 

 

93,581

 

Interest receivable

 

1,576,381

 

 

1,301,516

 

 

2,041,877

 

Payment-in-kind interest receivable

 

85,399

 

 

66,625

 

 

46,088

 

Long-term receivable

 

489,365

 

 

631,667

 

 

—

 

Escrow receivable

 

—

 

 

97,173

 

 

—

 

Short-term receivable

 

160,901

 

 

—

 

 

—

 

Other receivables

 

—

 

 

—

 

 

1,050

 

Prepaid expenses and other assets

 

97,324

 

 

411,821

 

 

361,719

 

Total Assets

$

206,851,730

 

$

192,237,745

 

$

231,806,860

 

Liabilities

 

 

 

Debt:

 

 

 

Revolving credit facility

$

58,500,000

 

$

43,000,000

 

$

71,900,000

 

2026 Notes payable

 

65,000,000

 

 

65,000,000

 

 

65,000,000

 

Deferred debt issuance costs

 

(1,369,415

)

 

(1,654,870

)

 

(1,220,556

)

Unamortized discount

 

(88,888

)

 

(124,443

)

 

(195,553

)

Debt, net

 

122,041,697

 

 

106,220,687

 

 

135,483,891

 

Payable for investments purchased

 

1,474,677

 

 

7,425,000

 

 

1,795,297

 

Dividend payable

 

1,728,749

 

 

—

 

 

2,590,520

 

Income-based incentive fees payable

 

501,955

 

 

128,876

 

 

576,023

 

Base management fees payable

 

769,176

 

 

816,777

 

 

906,218

 

Interest payable

 

1,894,921

 

 

1,950,925

 

 

2,293,766

 

Directors' fees payable

 

81,323

 

 

—

 

 

15,755

 

Accrued expenses and other liabilities

 

757,102

 

 

685,271

 

 

445,082

 

Total Liabilities

 

129,249,600

 

 

117,227,536

 

 

144,106,552

 

Commitments and Contingencies (see Note 6)

 

 

 

Net Assets

 

 

 

Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,406,244, 14,403,752, and 14,391,775 shares issued and outstanding, respectively)

 

 

 

14,406

 

 

 

 

 

14,404

 

 

 

 

 

14,392

 

 

Additional paid-in capital

 

203,505,480

 

 

203,103,263

 

 

203,327,714

 

Distributable earnings (loss)

 

(125,917,756

)

 

(128,107,458

)

 

(115,641,798

)

Total Net Assets

 

77,602,130

 

 

75,010,209

 

 

87,700,308

 

Total Liabilities and Net Assets

$

206,851,730

 

$

192,237,745

 

$

231,806,860

 

Net Asset Value Per Share

$

5.39

 

$

5.21

 

$

6.09

 

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Operations

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended December 31,

 

Twelve Months Ended June 30,

 

 

2024

 

 

 

2024

 

 

 

2023

 

 

 

2022

 

Investment Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

$

8,680,899

 

 

$

20,271,776

 

$

23,822,181

 

$

22,641,798

 

Non-controlled, affiliated investments

 

3,660

 

 

 

12,451

 

 

(20,611

)

 

29,813

 

Total interest income

 

8,684,559

 

 

 

20,284,227

 

 

23,801,570

 

 

22,671,611

 

Payment in-kind interest income

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

2,329,399

 

 

 

2,028,744

 

 

1,250,169

 

 

102,720

 

Non-controlled, affiliated investments

 

42,079

 

 

 

77,680

 

 

70,070

 

 

208,470

 

Total payment-in-kind interest income

 

2,371,478

 

 

 

2,106,424

 

 

1,320,239

 

 

311,190

 

Dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

—

 

 

 

54,138

 

 

101,755

 

 

—

 

Non-controlled, affiliated investments

 

—

 

 

 

—

 

 

—

 

 

296,126

 

Total dividend income

 

—

 

 

 

54,138

 

 

101,755

 

 

296,126

 

Payment in-kind dividend income

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

432,669

 

 

 

784,854

 

 

691,972

 

 

282,952

 

Non-controlled, affiliated investments

 

—

 

 

 

—

 

 

—

 

 

—

 

Total payment-in-kind dividend income

 

432,669

 

 

 

784,854

 

 

691,972

 

 

282,952

 

Other fee income

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

134,051

 

 

 

648,659

 

 

768,617

 

 

868,727

 

Non-controlled, affiliated investments

 

—

 

 

 

—

 

 

—

 

 

759

 

Total other fee income

 

134,051

 

 

 

648,659

 

 

768,617

 

 

869,486

 

Total investment income

 

11,622,757

 

 

 

23,878,302

 

 

26,684,153

 

 

24,431,365

 

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

3,752,412

 

 

 

8,606,309

 

 

8,413,409

 

 

6,633,587

 

Base management fees

 

1,671,831

 

 

 

3,800,693

 

 

4,201,394

 

 

4,594,588

 

Income-based incentive fees

 

501,540

 

 

 

(72,942

)

 

401,597

 

 

(348,670

)

Professional fees

 

718,289

 

 

 

1,239,122

 

 

984,290

 

 

1,302,513

 

Allocation of administrative costs from Adviser

 

382,064

 

 

 

1,360,194

 

 

966,045

 

 

1,247,205

 

Amortization of deferred debt issuance costs

 

306,004

 

 

 

576,475

 

 

693,333

 

 

621,111

 

Amortization of original issue discount - 2026 Notes

 

35,555

 

 

 

71,110

 

 

71,110

 

 

71,110

 

Insurance expense

 

255,536

 

 

 

479,502

 

 

506,963

 

 

512,347

 

Directors' fees

 

175,852

 

 

 

294,907

 

 

302,500

 

 

302,500

 

Custodian and administrator fees

 

147,986

 

 

 

316,128

 

 

292,267

 

 

334,214

 

Other expenses

 

346,109

 

 

 

713,789

 

 

516,160

 

 

446,330

 

Total expenses

 

8,293,178

 

 

 

17,385,287

 

 

17,349,068

 

 

15,716,835

 

Waiver of base management fees

 

(131,735

)

 

 

(365,225

)

 

(387,311

)

 

(480,032

)

Waiver of income-based incentive fees

 

—

 

 

 

—

 

 

—

 

 

—

 

Net expenses

 

8,161,443

 

 

 

17,020,062

 

 

16,961,757

 

 

15,236,803

 

Net investment income before taxes

 

3,461,314

 

 

 

6,858,240

 

 

9,722,396

 

 

9,194,562

 

Income tax expense, including excise tax expense

 

315,075

 

 

 

267,150

 

 

294,330

 

 

270,618

 

Net investment income after taxes

$

3,146,239

 

 

$

6,591,090

 

$

9,428,066

 

$

8,923,944

 

Net realized and unrealized gain/(loss) on investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

Net realized gain (loss) from investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

$

(8,114,711

)

$

(7,731,553

)

$

(26,890,095

)

$

(6,198,762

)

Non-controlled, affiliated investments

 

—

 

 

 

(6,239,984

)

 

—

 

 

(8,196,669

)

Net realized gain (loss) from investments

 

(8,114,711

)

 

(13,971,537

)

 

(26,890,095

)

 

(14,395,431

)

Net change in unrealized appreciation (depreciation) in value of investments

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

11,819,426

 

 

 

1,797,807

 

 

21,966,347

 

 

2,898,538

 

Non-controlled, affiliated investments

 

(808,865

)

 

1,490,170

 

 

(1,269,815

)

 

5,159,579

 

Net change in unrealized appreciation (depreciation) on investments

 

11,010,561

 

 

 

3,287,977

 

 

20,696,532

 

 

8,058,117

 

Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments

 

2,895,850

 

 

 

 

 

 

 

(10,683,560

 

)

 

 

 

(6,193,563

 

)

 

 

 

(6,337,314

 

)

Net increase (decrease) in net assets resulting from operations

$

6,042,089

 

 

$

(4,092,470

)

$

3,234,503

 

$

2,586,630

 

Basic and diluted:

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per share

$

0.42

 

 

$

(0.28

)

$

0.22

 

$

0.18

 

Weighted average shares of common stock outstanding

 

14,404,510

 

 

 

14,396,201

 

 

14,389,163

 

 

14,304,641

 

Distributions paid per common share

$

0.24

 

 

$

0.60

 

$

0.63

 

$

0.60

 

About Investcorp Credit Management BDC, Inc.

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 $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com.

Forward-Looking Statements

Statements included in this press release and made on the earnings call for the fiscal period and quarter ended December 31, 2024, may contain “forward-looking statements,” which relate to future performance, operating results, events and/or financial condition. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release or made on the earnings call are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.

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 Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Transition Report on Form 10-KT and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250325624176/en/

Investcorp Credit Management BDC, Inc. Investor Relations Email: icmbinvestorrelations@investcorp.com Phone: (646) 690-5047