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 quarter ended March 31, 2025.

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 one new portfolio company and two existing portfolio companies. These investments totaled $5.1(4) million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 10.22%.
• ICMB fully realized its investments in three portfolio companies during the quarter, totaling $5.7 million in proceeds. The internal rate of return on these investments was 9.55%.
• During the quarter, the Company had net advances of $503k on new and existing delayed draw and revolving credit commitments to portfolio companies.
• The weighted average yield on debt investments, at cost, for the quarter ended March 31, 2025, was 10.78%, compared to 10.36% for the quarter ended December 31, 2024.
• Net asset value increased $0.03 per share to $5.42, compared to $5.39 as of December 31, 2024. Net assets increased by $0.5 million, or 0.64%, during the quarter ended March 31, 2025 compared to December 31, 2024.

Portfolio results, as of and for the three months ended March 31, 2025:

Total assets

$207.6mm

Investment portfolio, at fair value

$192.4mm

Net assets

$78.1mm

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

10.78%

Net asset value per share

$5.42

Portfolio activity in the current quarter:

 

Number of investments in new portfolio companies during the period

1

Number of portfolio companies invested in, end of period

43

Total capital invested in existing portfolio companies (2) (4)

$2.8mm

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

$7.3mm

Net investment income before taxes (NII)

$0.7mm

Net investment income before taxes per share

$0.05

Net increase in net assets from operations

$2.2mm

Net increase in net assets from operations per share

$0.15

Distributions paid per common share

$0.12

(1) Represents weighted average yield on total debt investments for the three months ended March 31, 2025. Weighted average yield on total debt investments is the annualized rate of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. 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 commitments to portfolio companies and PIK interest.

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

(4) Includes Work Genius A-1 Equity Units acquired in lieu of cash fee related to the amendment and extension of credit for Work Genius Term Loan.

Mr. Suhail A. Shaikh said “This quarter reflects the progress of our disciplined approach - resolving legacy issues, strengthening the portfolio, and positioning ICMB to navigate a more cautious market environment. While macro uncertainty continues to weigh on activity, we believe our patience and focus on credit quality will drive long-term value creation for our shareholders.”

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 14.95% yield on the Company’s $3.21 share price as of market close on March 31, 2025. 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 March 31, 2025, 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 one new portfolio company and two existing portfolio companies. The aggregate capital invested during the quarter totaled $5.1 million, at cost, and the debt investments were made at a weighted average yield of 10.22%.

The Company received proceeds of $7.3 million from repayments, sales and amortization during the quarter, primarily related to the realization of Victra Holdings, LLC Term Loan B and Flatworld Intermediate Corporation Term Loan.

During the quarter, the Company had net advances of $503k on new and existing delayed draw and revolving credit commitments to portfolio companies.

The Company’s net realized, and unrealized gains and losses accounted for an increase in the Company’s net investments of approximately $1.6 million, or $0.11 per share. The total net increase in net assets resulting from operations for the quarter was $2.2 million, or $0.15 per share.

As of March 31, 2025, the Company’s investment portfolio consisted of investments in 43 portfolio companies, of which 77.04% were first lien investments and 22.96% were equity, warrants, and other investments. The Company’s debt portfolio consisted of 98.18% floating rate investments and 1.82% fixed rate investments.

Capital Resources

As of March 31, 2025, the Company had $13.0 million in cash, of which $10.7 million was restricted cash, and $44.0 million of unused and available capacity under its revolving credit facility with Capital One, N.A.

Subsequent Events

Subsequent to March 31, 2025 and through May 13, 2025, the Company invested a total of $2.0 million, at cost, which included investments in two existing portfolio companies. As of May 13, 2025, the Company had investments in 43 portfolio companies.

On April 15, 2025, the Board declared a distribution for the quarter ended June 30, 2025 of $0.12 per share payable on June 14, 2025 to stockholders of record as of May 24, 2025.

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Assets and Liabilities

 

 

 

March 31, 2025

 

 

 

 

 

 

(Unaudited)

 

 

December 31, 2024

 

Assets

 

 

 

 

 

 

Non-controlled, non-affiliated investments, at fair value (amortized cost of $181,732,130 and $184,154,029, respectively)

 

$

189,559,979

 

 

$

188,602,029

 

Affiliated investments, at fair value (amortized cost of $16,374,641 and $16,351,878, respectively)

 

 

2,887,891

 

 

 

3,014,929

 

Total investments, at fair value (amortized cost of $198,106,771 and $200,505,907, respectively)

 

 

192,447,870

 

 

 

191,616,958

 

Cash

 

 

2,333,328

 

 

 

771,483

 

Cash, restricted

 

 

10,656,778

 

 

 

11,333,064

 

Principal receivable

 

 

—

 

 

 

720,855

 

Interest receivable

 

 

1,067,588

 

 

 

1,576,381

 

Payment-in-kind interest receivable

 

 

82,197

 

 

 

85,399

 

Long-term receivable

 

 

—

 

 

 

489,365

 

Short-term receivable

 

 

528,462

 

 

 

160,901

 

Prepaid expenses and other assets

 

 

490,407

 

 

 

97,324

 

Total Assets

 

$

207,606,630

 

 

$

206,851,730

 

Liabilities

 

 

 

 

 

 

Debt:

 

 

 

 

 

 

Revolving credit facility

 

$

56,000,000

 

 

$

58,500,000

 

2026 Notes payable

 

 

65,000,000

 

 

 

65,000,000

 

Deferred debt issuance costs

 

 

(1,215,592

)

 

 

(1,369,415

)

Unamortized discount

 

 

(71,110

)

 

 

(88,888

)

Debt, net

 

 

119,713,298

 

 

 

122,041,697

 

Payable for investments purchased

 

 

1,474,677

 

 

 

1,474,677

 

Dividend payable

 

 

1,729,684

 

 

 

1,728,749

 

Income-based incentive fees payable

 

 

501,955

 

 

 

501,955

 

Base management fees payable

 

 

1,543,069

 

 

 

769,176

 

Interest payable

 

 

2,624,154

 

 

 

1,894,921

 

Deferred income liability

 

 

674,011

 

 

 

—

 

Directors' fees payable

 

 

76,500

 

 

 

81,323

 

Accrued expenses and other liabilities

 

 

1,167,829

 

 

 

757,102

 

Total Liabilities

 

 

129,505,177

 

 

 

129,249,600

 

Commitments and Contingencies (see Note 6)

 

 

 

 

 

 

Net Assets

 

 

 

 

 

 

Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,414,033 and 14,406,244 shares issued and outstanding, respectively)

 

 

14,414

 

 

 

14,406

 

Additional paid-in capital

 

 

203,528,187

 

 

 

203,505,480

 

Distributable earnings (loss)

 

 

(125,441,148

)

 

 

(125,917,756

)

Total Net Assets

 

 

78,101,453

 

 

 

77,602,130

 

Total Liabilities and Net Assets

 

$

207,606,630

 

 

$

206,851,730

 

Net Asset Value Per Share

 

$

5.42

 

 

$

5.39

 

 

Investcorp Credit Management BDC, Inc. and Subsidiaries

Consolidated Statements of Operations (unaudited)

   

 

 

For the three months ended

March 31,

 

 

 

2025

 

 

2024

 

Investment Income:

 

 

 

 

 

 

Interest income

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

3,488,202

 

 

$

5,561,333

 

Non-controlled, affiliated investments

 

 

14,978

 

 

 

28,830

 

Total interest income

 

 

3,503,180

 

 

 

5,590,163

 

Payment in-kind interest income

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

419,888

 

 

 

613,765

 

Non-controlled, affiliated investments

 

 

21,380

 

 

 

19,553

 

Total payment-in-kind interest income

 

 

441,268

 

 

 

633,318

 

Dividend income

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

81,607

 

 

 

54,138

 

Non-controlled, affiliated investments

 

 

—

 

 

 

—

 

Total dividend income

 

 

81,607

 

 

 

54,138

 

Payment in-kind dividend income

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

221,685

 

 

 

198,123

 

Non-controlled, affiliated investments

 

 

—

 

 

 

—

 

Total payment-in-kind dividend income

 

 

221,685

 

 

 

198,123

 

Other fee income

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

121,024

 

 

 

142,347

 

Non-controlled, affiliated investments

 

 

—

 

 

 

—

 

Total other fee income

 

 

121,024

 

 

 

142,347

 

Total investment income

 

 

4,368,764

 

 

 

6,618,089

 

Expenses:

 

 

 

 

 

 

Interest expense

 

 

1,831,967

 

 

 

2,174,195

 

Base management fees

 

 

848,036

 

 

 

951,799

 

Income-based incentive fees

 

 

—

 

 

 

—

 

Professional fees

 

 

341,283

 

 

 

354,934

 

Allocation of administrative costs from Adviser

 

 

254,023

 

 

 

225,856

 

Amortization of deferred debt issuance costs

 

 

153,824

 

 

 

152,591

 

Amortization of original issue discount - 2026 Notes

 

 

17,777

 

 

 

17,777

 

Insurance expense

 

 

120,502

 

 

 

125,766

 

Directors' fees

 

 

76,500

 

 

 

75,157

 

Custodian and administrator fees

 

 

74,237

 

 

 

68,031

 

Other expenses

 

 

40,173

 

 

 

379,406

 

Total expenses

 

 

3,758,322

 

 

 

4,525,512

 

Waiver of base management fees

 

 

(74,143

)

 

 

(97,431

)

Waiver of income-based incentive fees

 

 

—

 

 

 

—

 

Net expenses

 

 

3,684,179

 

 

 

4,428,081

 

Net investment income before taxes

 

 

684,585

 

 

 

2,190,008

 

Income tax expense, including excise tax expense

 

 

81,059

 

 

 

111,646

 

Net investment income after taxes

 

$

603,526

 

 

$

2,078,362

 

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

 

 

 

 

 

 

Net realized gain (loss) from investments

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

$

(1,627,282

)

 

$

(31,984

)

Non-controlled, affiliated investments

 

 

—

 

 

 

(6,239,984

)

Net realized gain (loss) from investments

 

 

(1,627,282

)

 

 

(6,271,968

)

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

 

 

 

 

 

 

Non-controlled, non-affiliated investments

 

 

3,379,849

 

 

 

1,089,608

 

Non-controlled, affiliated investments

 

 

(149,801

)

 

 

5,515,738

 

Net change in unrealized appreciation (depreciation) on investments

 

 

3,230,048

 

 

 

6,605,346

 

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

 

 

1,602,766

 

 

 

333,378

 

Net increase (decrease) in net assets resulting from operations

 

$

2,206,292

 

 

$

2,411,740

 

Basic and diluted:

 

 

 

 

 

 

Earnings per share

 

$

0.15

 

 

$

0.17

 

Weighted average shares of common stock outstanding

 

 

14,412,994

 

 

 

14,396,951

 

Distributions paid per common share

 

$

0.12

 

 

$

0.15

 

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 quarter ended March 31, 2025, 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.

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Investcorp Credit Management BDC, Inc. Investor Relations Email: icmbinfo@investcorp.com Phone: (212) 703-1154