false00016333360001633336us-gaap:DeferrableNotesMember2024-05-082024-05-080001633336us-gaap:CommonStockMember2024-05-082024-05-0800016333362024-05-082024-05-08

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

Pursuant to section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): May 8, 2024

 

 

Crescent Capital BDC, Inc.

 

(Exact name of registrant as specified in its charter)

 

 

Maryland

814-01132

47-3162282

(State or Other Jurisdiction of

Incorporation or Organization)

(Commission

File Number)

(I.R.S. Employer
Identification No.)

 

 

 

11100 Santa Monica Blvd., Suite 2000,

 

 

Los Angeles, CA

 

90025

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (310) 235-5900

 

Not Applicable

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to 12(b) of the Act:

 

Securities registered pursuant to Section 12(g) of the Act:

 

Title of each class

 

Trading Symbol

Name of each exchange on which registered

Common Stock, $0.001 par value per share

 

CCAP

 

The Nasdaq Stock Market LLC

5.00% Notes due 2026

 

FCRX

 

The New York Stock Exchange

 

Common Stock, par value $0.001 per share

 

 

 

(Title of class)

 

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 

 


 

Item 2.02. Results of Operations and Financial Condition.

 

On May 8, 2024, Crescent Capital BDC, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended March 31, 2024. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibits

 

 

Number

Description

99.1

Press Release, dated May 8, 2024

104

Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

 


 

SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

CRESCENT CAPITAL BDC, INC.

Date: May 8, 2024

By:

/s/ Gerhard Lombard

 

Name:

Gerhard Lombard

 

Title:

Chief Financial Officer

 

 


img9012598_0.jpg 

 

 

 

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

 

LOS ANGELES, May 8, 2024 — 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.

 

 


img9012598_0.jpg 

 

 

 

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.

 

 

 


img9012598_0.jpg 

 

 

 

 

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

 

 

 

 


img9012598_0.jpg 

 

 

 

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

 

 

 


img9012598_0.jpg 

 

 

 

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.

 


v3.24.1.u1
Document and Entity Information
May 08, 2024
Document And Entity Information [Line Items]  
Amendment Flag false
Entity Central Index Key 0001633336
Document Type 8-K
Document Period End Date May 08, 2024
Entity Registrant Name Crescent Capital BDC, Inc.
Entity Incorporation State Country Code MD
Entity File Number 814-01132
Entity Tax Identification Number 47-3162282
Entity Address, Address Line One 11100 Santa Monica Blvd.
Entity Address, Address Line Two Suite 2000
Entity Address, City or Town Los Angeles
Entity Address, State or Province CA
Entity Address, Postal Zip Code 90025
City Area Code (310)
Local Phone Number 235-5900
Written Communications false
Soliciting Material false
Pre Commencement Tender Offer false
Pre Commencement Issuer Tender Offer false
Entity Emerging Growth Company true
Entity Ex Transition Period false
Common Stock [Member]  
Document And Entity Information [Line Items]  
Security 12g Title Common Stock, $0.001 par value per share
Trading Symbol CCAP
Security Exchange Name NASDAQ
Deferrable Notes [Member]  
Document And Entity Information [Line Items]  
Security 12g Title 5.00% Notes due 2026
Trading Symbol FCRX
Security Exchange Name NYSE

Crescent Capital BDC (NYSE:FCRX)
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