Group 1 - The article emphasizes the importance of a barbell investment approach, particularly for retirees who rely on portfolio income across various interest rate environments [2] - iREIT+HOYA Capital focuses on income-producing asset classes, providing opportunities for sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group offers research on REITs, ETFs, closed-end funds, preferred stocks, and dividend champions, targeting dividend yields up to 10% [2] Group 2 - The article highlights the defensive nature of stocks recommended by the investment group, suitable for medium- to long-term investment horizons [2] - The service aims to help investors achieve dependable monthly income through its exclusive income-focused portfolios [1][2]

Company Overview - Rubicon Associates is led by a Chartered Financial Analyst with over 20 years of experience in investment management, focusing on fixed income and preferred stock portfolios, as well as asset allocation and macro portfolios [1] - The principal has managed nearly $7 billion in credit investments and oversaw research and trading activities in the credit market, including a $20 billion short-duration fund [1] Investment Strategy - The company has experience analyzing and investing in both public and private companies globally, advising institutional clients on fixed income strategies, manager selection, and asset allocation [1] - Rubicon Associates has contributed written content to platforms such as Seeking Alpha, Learn Bonds, and TheStreet.com, in addition to providing advisory services to institutional and private investors [1]

Core Viewpoint - Crescent Capital BDC (CCAP) is experiencing significant selling pressure, having declined 12% over the past four weeks, but is now positioned for a potential trend reversal as it enters oversold territory, with analysts expecting better earnings than previously predicted [1]. Group 1: Technical Indicators - The Relative Strength Index (RSI) is a key technical indicator used to identify oversold conditions, with a reading below 30 typically indicating that a stock is oversold [2]. - CCAP's current RSI reading is 27.96, suggesting that the heavy selling pressure may be exhausting itself, indicating a potential trend reversal [5]. Group 2: Fundamental Indicators - There is a strong consensus among sell-side analysts that earnings estimates for CCAP will improve, with a 0.9% increase in the consensus EPS estimate over the last 30 days, which often correlates with price appreciation [7]. - CCAP holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate revisions and EPS surprises, further supporting the stock's potential for a turnaround [8].

Core Insights - Crescent Capital BDC, Inc. has committed over $6.5 billion in capital for 2025, with $1.7 billion in Q4 alone, indicating strong transaction activity and portfolio origination [1] - The company reported a net investment income of $0.45 per share for Q4, slightly down from $0.46 in the previous quarter, while maintaining a dividend coverage of 107% [4][18] - The net asset value (NAV) per share decreased to $19.10 from $19.28, reflecting unrealized losses due to market volatility [4][18] Financial Performance - The company’s net investment income for Q4 was $0.45 per share, compared to $0.46 in the prior quarter, with a declared quarterly cash dividend of $0.42 per share for 2026 [4][21] - The NAV per share declined from $19.28 to $19.10, primarily due to net unrealized depreciation [4][18] - The weighted average yield on income-producing securities decreased by 40 basis points to 10% due to lower base rates [13] Portfolio Management - Crescent Capital BDC, Inc. ended the year with approximately $1.6 billion in investments across 184 companies, with a focus on first lien loans, which made up 91% of the portfolio [8][9] - The company maintains a diversified portfolio to limit concentration risk, with 99% of the debt portfolio in sponsor-backed companies [10] - The weighted average loan-to-value ratio is approximately 40%, providing a significant equity buffer [10] Market Environment - The private credit market remains competitive, with strong capital formation and tighter spreads, necessitating disciplined underwriting and structural protections [6][7] - The company is observing a backlog of portfolio companies awaiting monetization, with sponsors beginning to reengage in the M&A market as financing conditions stabilize [6] Future Outlook - The company is actively reviewing options to enhance earnings durability and align with shareholder interests, including evaluating its fee structure and dividend levels [5][26] - Despite headwinds in the BDC space, Crescent Capital BDC, Inc. believes it is well-positioned for 2026, with a focus on maintaining liquidity and prudent leverage [22] - The company continues to see opportunities in private credit, emphasizing disciplined lending practices and selectivity [22][23]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported net investment income of $0.45 per share, a slight decrease from $0.46 in the prior quarter, while net asset value (NAV) per share declined to $19.10 from $19.28 due to unrealized losses from certain portfolio companies [3][16] - The company maintained a net debt to equity ratio of 1.20 times, below the upper end of its target range of 1.30 times, preserving flexibility for prudent portfolio growth [5][18] - The weighted average interest rate on total borrowings decreased to 5.83% from 5.99% quarter-over-quarter, reflecting lower base rates [18] Business Line Data and Key Metrics Changes - The investment portfolio at fair value totaled approximately $1.6 billion, consistent with the prior quarter, and consisted primarily of first lien loans, representing 91% of the portfolio [9][16] - Gross deployment in the fourth quarter totaled $71 million, with five new platform investments totaling $29 million, while net realizations were approximately $7 million due to exits and repayments [12][16] - The weighted average yield on income-producing securities at cost decreased by 40 basis points quarter-over-quarter, ending the year at 10% [12] Market Data and Key Metrics Changes - The private credit market remains competitive, with strong capital formation and a growing number of lenders competing for high-quality transactions, leading to tighter spreads [7][8] - The company noted subdued exit activity in private equity over the past three years, with sponsors favoring recapitalizations and dividend transactions [8] Company Strategy and Development Direction - The company emphasizes capital preservation and maintaining a stable NAV profile through disciplined underwriting and diversified positioning [4][20] - Management is actively reviewing options to enhance earnings durability and align with shareholder interests, including evaluating the fee structure and base dividend level [7][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for private credit, emphasizing the importance of disciplined underwriting and active portfolio management [9][20] - The company is navigating a dynamic environment with expectations of lower base rates impacting yields, but remains well-positioned for stability [7][20] Other Important Information - The company has a spillover income of approximately $1.16 per share, providing support during the current rate transition [7] - The supplemental dividend policy remains in place, but no supplemental dividend will be paid related to Q4 earnings due to NAV declines [41] Q&A Session Summary Question: Discussion on long-term positioning and dividend structure - Management indicated that the review focuses on long-term earnings durability and alignment with shareholders, including evaluation of the fee structure and base dividend level [26][27] Question: Details on non-accrual investments - One non-accrual investment was realized at close to the mark, contributing to a decrease in non-accruals [29] Question: Future earnings and spread expectations - Management noted that spreads have stabilized for high-quality assets, and there is optimism for increased deal activity in the near term [31][32] Question: Drivers of realized gains and unrealized losses - Realized gains were driven by an investment sold during the quarter, while unrealized losses were primarily due to two investments placed on non-accrual [35][36] Question: Rationale for reinvesting proceeds instead of buybacks - The company is balancing investments in private credit with share repurchases, focusing on durable income for shareholders [39][40] Question: Status of the supplemental dividend policy - The supplemental dividend policy remains in place, but no supplemental dividend will be paid this quarter due to NAV constraints [41][42]

Financial Data and Key Metrics Changes - For the fourth quarter, the company reported net investment income of $0.45 per share, a slight decrease from $0.46 in the prior quarter [3][16] - Net asset value (NAV) per share declined to $19.10 as of December 31, down from $19.28 at the end of the third quarter, primarily due to unrealized losses from certain portfolio companies [3][16] - The company ended the year with a net debt to equity ratio of 1.20 times, below the upper end of the target range of 1.30 times, preserving flexibility for portfolio growth [5] Business Line Data and Key Metrics Changes - The investment portfolio at fair value totaled approximately $1.6 billion across 184 companies, with an average investment size of about 0.6% of the total portfolio [9] - The weighted average yield on income-producing securities at cost decreased by 40 basis points quarter-over-quarter, ending the year at 10% [12] - Non-accruals increased from 3.3% and 1.6% as of September 30 to 4.1% and 2% as of December 31, driven by two new non-accrual investments [14] Market Data and Key Metrics Changes - The private credit market remains competitive, with strong capital formation and a growing number of lenders competing for high-quality transactions, resulting in tighter spreads [7][8] - The company noted subdued exit activity in private equity over the past three years, with sponsors favoring recapitalizations and dividend transactions [8] Company Strategy and Development Direction - The company emphasizes capital preservation and is actively managing the portfolio to maintain long-term NAV stability [4] - The focus remains on disciplined underwriting, diversified positioning, and investing in senior secured sponsor-backed companies [4][20] - The management team is evaluating options to enhance earnings durability and align with shareholder interests, including a review of the fee structure and dividend levels [26][27] Management's Comments on Operating Environment and Future Outlook - The management expressed optimism about the long-term outlook for private credit, emphasizing the importance of disciplined underwriting and active portfolio management [9] - The company is navigating a dynamic environment with expectations of lower base rates impacting yields, but remains well-positioned for stability [20] - Management acknowledged the earnings headwinds facing the BDC space due to forward base rate expectations and is reviewing strategies to ensure durable earnings [7][20] Other Important Information - The company declared a quarterly cash dividend of $0.42 per share for the first quarter of 2026, payable on April 15, 2026 [3][18] - The company has a buyback program in place and continues to evaluate the attractiveness of new investments relative to share repurchases [39] Q&A Session Summary Question: Discussion on long-term positioning and dividend structure - Management indicated that the review focuses on long-term earnings durability and alignment with shareholders, including evaluation of the fee structure and base dividend level [26][27] Question: Details on non-accrual exit and sale - One non-accrual investment was realized at close to the mark [29] Question: Future earnings and spread expectations - Management noted that spreads have stabilized for high-quality assets and observed an increase in deal activity, indicating potential for capturing excess spread [31][32] Question: Main drivers of realized gains and unrealized losses - Realized gains were driven by an investment sold during the quarter, while unrealized losses were primarily from two investments placed on non-accrual [35][36] Question: Rationale for reinvesting proceeds instead of buybacks - The company is balancing investments in private credit with share repurchases, focusing on durable income for shareholders [39][40] Question: Status of the supplemental dividend policy - The supplemental dividend policy remains in place, but no supplemental dividend will be paid for Q4 earnings due to NAV constraints [41][42]

Financial Data and Key Metrics Changes - For Q4 2025, the company reported net investment income of $0.45 per share, a slight decrease from $0.46 in the prior quarter [4][17] - Net asset value (NAV) per share declined to $19.10 as of December 31, 2025, down from $19.28 at the end of Q3 2025, reflecting unrealized losses from certain portfolio companies [4][17] - The company maintained a net debt to equity ratio of 1.20 times, below the upper end of its target range of 1.30 times, preserving flexibility for portfolio growth [6] Business Line Data and Key Metrics Changes - The investment portfolio at fair value totaled approximately $1.6 billion, consistent with the prior quarter, across a diversified portfolio of 184 companies [10][17] - The weighted average yield on income-producing securities at cost decreased by 40 basis points quarter-over-quarter, ending the year at 10% [13] - Non-accruals increased from 3.3% and 1.6% as of September 30 to 4.1% and 2% as of December 31, driven by two new non-accrual investments [15] Market Data and Key Metrics Changes - The private credit market remains competitive, with strong capital formation across direct lending strategies leading to tighter spreads and evolving deal structures [9] - The company noted subdued exit activity in private equity over the past three years, with sponsors favoring recapitalizations and dividend transactions [9] Company Strategy and Development Direction - The company emphasizes capital preservation and is actively managing its portfolio to maintain long-term NAV stability [5] - The focus remains on protecting capital, enhancing sustainable earnings power, and delivering attractive risk-adjusted returns for shareholders [21] - The management is reviewing options to ensure durable earnings and attractive returns across market cycles, with a more detailed update expected in May [7][21] Management's Comments on Operating Environment and Future Outlook - Management acknowledged earnings headwinds facing the BDC space due to forward base rate expectations but remains optimistic about the long-term outlook for private credit [7][10] - The company is positioned well for near-term stability, over-earning its dividend and maintaining a diversified portfolio supported by experienced sponsors [28][21] Other Important Information - The board declared a quarterly cash dividend of $0.42 per share for Q1 2026, payable on April 15, 2026 [4][19] - The company has a buyback program in place, balancing share repurchases with new investment opportunities [41] Q&A Session Summary Question: Discussion on long-term positioning and dividend structure - Management indicated that the review focuses on long-term earnings durability and alignment with shareholders, including evaluation of fee structure and base dividend level [27][28] Question: Details on non-accrual exit and sale - One non-accrual investment was realized at close to the mark [30] Question: Future earnings and spread expectations - Management noted that spreads have stabilized for high-quality assets, and there is optimism for increased deal activity as financing markets stabilize [33] Question: Main drivers of realized gains and unrealized losses - Realized gains were driven by an investment sold during the quarter, while unrealized losses were primarily from two investments placed on non-accrual [36][37] Question: Rationale for reinvesting proceeds instead of buybacks - The company is focused on durable, long-term income for shareholders and is balancing new investments with share repurchases [41][42] Question: Status of supplemental dividend policy - The supplemental dividend policy remains in place, but no supplemental dividend will be paid for Q4 earnings due to NAV constraints [43][44]

Crescent Capital BDC, Inc. Quarterly Earnings Presentation December 31, 2025 Disclaimer and Forward-Looking Statement This presentation (the "Presentation") has been prepared by Crescent Capital BDC, Inc. (together with its consolidated subsidiaries, "CCAP," "Crescent BDC" or the "Company") and may be used for informational purposes only. This Presentation contains summaries of certain financial and statistical information about the Company and should be viewed in conjunction with the Company's most recent ...

Dividend and Investment Policies - The company has adopted a dividend reinvestment plan allowing stockholders to reinvest dividends in additional shares of common stock[72]. - The company has elected to be treated as a Regulated Investment Company (RIC) and must distribute at least 90% of its investment company taxable income annually to avoid corporate-level U.S. federal income taxes[99]. - To maintain RIC status, the company must derive at least 90% of its gross income from specific sources, including dividends and interest[102]. Regulatory Compliance - The company is regulated as a Business Development Company (BDC) under the 1940 Act, which requires it to primarily invest in private companies and provide significant managerial assistance[75]. - The company is subject to periodic examinations by the SEC for compliance with the 1940 Act[80]. - The company must adhere to corporate governance requirements set by the Nasdaq Stock Market LLC to maintain its listing[91]. - The company has implemented written compliance policies and procedures to detect and prevent violations of federal securities laws[88]. - The company is required to disclose the effectiveness of its disclosure controls and procedures in its periodic reports[95]. - The company must provide stockholders with annual reports containing audited financial statements and quarterly reports[97]. - The company has a code of ethics that prohibits investments by its personnel in securities that may be purchased or sold by the company[86]. Asset Management and Investment Restrictions - The company must maintain an asset coverage ratio of at least 150% after borrowing, limiting its ability to use debt for investments[78]. - The company is permitted to invest up to 30% of its portfolio in "non-qualifying assets," but must ensure that qualifying assets represent at least 70% of its total assets[81]. Taxation and Financial Exposure - The company is subject to a 4% nondeductible federal excise tax on certain undistributed income unless it meets specific distribution requirements[101]. - If the company fails to qualify as a RIC, all taxable income will be subject to corporate tax rates, and distributions will be taxed as ordinary dividends[107]. - The company may be required to recognize taxable income without receiving cash, particularly from debt obligations treated as having Original Issue Discount (OID)[104]. - The company’s investment practices may be subject to complex tax provisions that could adversely affect its income and deductions[106]. Interest Rate and Currency Risk - The company has significant exposure to interest rate risk, with potential annualized impacts on net interest income ranging from $9.5 million to $(9.4) million based on hypothetical interest rate changes[403]. - The company regularly assesses its interest rate risk and may engage in hedging transactions to mitigate exposure[401]. - As of December 31, 2025, 98.0% of the investments at fair value in the company's portfolio were at variable rates, subject to interest rate floors[402]. - The company had £16.9 million, CHF 18.7 million, AUD $44.8 million, and SEK 11.6 million notional exposure to foreign currency forward contracts as of December 31, 2025[409].

Core Insights - Crescent Capital BDC, Inc. reported a net investment income of $1.81 per share and a net income of $0.93 per share for the year ended December 31, 2025, with a quarterly net investment income of $0.45 and net income of $0.23 for the quarter ended December 31, 2025 [1][7][9] - The company declared a regular cash dividend of $0.42 per share for the first quarter of 2026, payable on April 15, 2026 [1] Financial Highlights - As of December 31, 2025, total investments at fair value were $1,569.4 million, a decrease from $1,598.9 million as of December 31, 2024 [2][3] - Total assets were reported at $1,622.1 million, down from $1,656.3 million a year earlier [2] - Net asset value (NAV) per share was $19.10, compared to $19.98 as of December 31, 2024 [2][17] - Investment income for the year decreased to $167.3 million from $197.4 million in 2024, primarily due to lower interest income [7][8] - Total expenses for the year were $100.4 million, down from $108.4 million in 2024 [8] Portfolio & Investment Activity - The company invested $306.9 million across 25 new portfolio companies and 41 existing portfolio companies during the year ended December 31, 2025 [5] - For the fourth quarter of 2025, investments totaled $70.8 million across five new portfolio companies [6] - The portfolio consisted of 184 companies as of December 31, 2025, with a significant portion in unitranche first lien investments, accounting for 66.7% of the total fair value [3][4] Liquidity and Capital Resources - As of December 31, 2025, the company had $31.5 million in cash and cash equivalents, along with $242.0 million of undrawn capacity on its credit facilities [11] - The weighted average cost of debt was reported at 5.83%, with a debt to equity ratio of 1.25x [11]