LOS ANGELES, Jan. 23, 2024 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (“Crescent BDC”) (NASDAQ: CCAP) today announced it will release its financial results for the fourth quarter and fiscal year ended December 31, 2023 on Wednesday, February 21, 2024 after market close. Crescent BDC invites all interested persons to attend its webcast/conference call on Thursday, February 22, 2024 at 12:00 p.m. Eastern Time to discuss its fourth quarter and fiscal year ended December 31, 2023 financial results. Conferen ...

Crescent Capital BDC (CCAP) closed the most recent trading day at $16.54, moving -0.72% from the previous trading session. The stock's performance was behind the S&P 500's daily gain of 1.23%. Elsewhere, the Dow gained 1.06%, while the tech-heavy Nasdaq added 1.7%.Heading into today, shares of the company had lost 5.23% over the past month, lagging the Finance sector's loss of 3.81% and the S&P 500's gain of 0.94% in that time.The investment community will be closely monitoring the performance of Crescent C ...

Crescent Capital BDC Inc. (NASDAQ:CCAP) Q3 2023 Results Conference Call November 9, 2023 12:00 PM ET Company Participants Dan McMahon - VP & Head of Public Investor Relations Jason Breaux - CEO & President Henry Chung - Managing Director Gerhard Lombard - Chief Financial Officer Conference Call Participants Robert Dodd - Raymond James Ryan Lynch - KBW Operator Good afternoon, ladies and gentlemen, and welcome to the Q3 2023 Crescent Capital Inc. Earnings Conference Call. At this time, all lines are in a lis ...

PART I FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements for Crescent Capital BDC, Inc., including statements of assets, operations, changes in net assets, cash flows, and investment schedules [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) Total assets increased to $1.62 billion, liabilities grew, and net assets rose to $730.3 million, with NAV per share slightly decreasing Consolidated Balance Sheet Highlights (in thousands) | Metric | Sep 30, 2023 (Unaudited) | Dec 31, 2022 | | :--- | :--- | :--- | | **Assets** | | | | Total Investments, at fair value | $1,564,828 | $1,262,956 | | Total Assets | $1,624,487 | $1,302,878 | | **Liabilities & Net Assets** | | | | Total Debt (net) | $856,656 | $654,456 | | Total Liabilities | $894,221 | $690,337 | | Total Net Assets | $730,266 | $612,541 | | **Net Asset Value Per Share** | **$19.70** | **$19.83** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) Total investment income rose to $134.2 million, driving net investment income to $59.8 million and a $53.0 million net increase in net assets Statement of Operations Summary (in thousands, except per share data) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Total Investment Income | $134,176 | $82,142 | | Net Expenses | $73,497 | $38,454 | | Net Investment Income | $59,789 | $43,624 | | Net Realized & Unrealized (Losses) | ($7,540) | ($30,036) | | **Net Increase in Net Assets** | **$52,979** | **$12,942** | | **Net Investment Income Per Share** | **$1.68** | **$1.41** | | **Net Increase in Net Assets Per Share** | **$1.49** | **$0.42** | [Consolidated Statements of Changes in Net Assets](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Net%20Assets) Net assets increased by $117.7 million to $730.3 million, primarily from operations and an asset acquisition, partially offset by distributions Reconciliation of Net Assets (Nine Months Ended Sep 30, 2023, in thousands) | Description | Amount | | :--- | :--- | | Balance at Dec 31, 2022 | $612,541 | | Net Increase from Operations | $52,979 | | Issuance for Asset Acquisition | $91,257 | | Deemed Contribution from Adviser | $22,040 | | Distributions from Distributable Earnings | ($48,551) | | **Balance at Sep 30, 2023** | **$730,266** | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash provided by operating activities was $57.7 million, a reversal from prior year, with $52.0 million used in financing, ending with $22.8 million cash Cash Flow Summary (Nine Months Ended, in thousands) | Cash Flow Activity | Sep 30, 2023 | Sep 30, 2022 | | :--- | :--- | :--- | | Net Cash from Operating Activities | $57,696 | ($13,895) | | Net Cash from Financing Activities | ($52,000) | $12,522 | | Net Increase (Decrease) in Cash | $5,688 | ($1,373) | | **Cash, End of Period** | **$22,755** | **$22,153** | [Consolidated Schedule of Investments](index=10&type=section&id=Consolidated%20Schedule%20of%20Investments) The $1.56 billion investment portfolio is primarily debt-focused, concentrated in Senior Secured First Lien and Unitranche loans, diversified across key industries Portfolio Composition by Investment Type (at Fair Value) | Investment Type | Sep 30, 2023 (%) | Dec 31, 2022 (%) | | :--- | :--- | :--- | | Senior Secured First Lien | 28.4% | 23.8% | | Unitranche First Lien | 60.0% | 65.2% | | Senior Secured Second Lien | 3.7% | 4.8% | | Equity & Other | 6.6% | 4.7% | | Other Debt | 1.3% | 1.5% | Top 5 Industries by Fair Value (Sep 30, 2023) | Industry | Percentage of Fair Value | | :--- | :--- | | Health Care Equipment & Services | 27.4% | | Software & Services | 20.8% | | Commercial & Professional Services | 14.1% | | Consumer Services | 9.5% | | Diversified Financials | 5.2% | - The total fair value of investments increased to **$1.56 billion** as of September 30, 2023, from **$1.26 billion** at the end of 2022[165](index=165&type=chunk) [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) This section details accounting policies, investment valuation, related party agreements, outstanding debt, and the recent FCRD acquisition [Note 2. Summary of Significant Accounting Policies](index=63&type=section&id=Note%202.%20Summary%20of%20Significant%20Accounting%20Policies) The company follows ASC 946, fair-valuing illiquid assets through a multi-step process and categorizing investments into a three-level hierarchy - The Board has designated the Adviser as the valuation designee to perform fair value determinations for investments where market quotations are not readily available, following SEC Rule 2a-5[106](index=106&type=chunk) - As of September 30, 2023, the company had sixteen investments across nine portfolio companies on non-accrual status, representing **1.8%** of total debt investments at fair value, an increase from **1.2%** at year-end 2022[117](index=117&type=chunk) [Note 3. Agreements and Related Party Transactions](index=67&type=section&id=Note%203.%20Agreements%20and%20Related%20Party%20Transactions) The company is externally managed by Crescent Cap Advisors, earning base and incentive fees, with the Adviser voluntarily waiving certain fees Management and Incentive Fees (Nine Months Ended Sep 30) | Fee Type (in thousands) | 2023 Incurred | 2023 Waived | 2022 Incurred | 2022 Waived | | :--- | :--- | :--- | :--- | :--- | | Management Fees | $14,541 | ($145) | $12,235 | ($175) | | Income Incentive Fees | $12,634 | ($229) | $8,039 | ($474) | - The Adviser has voluntarily waived income incentive fees to the extent net investment income falls short of the regular declared dividend, a waiver effective through **December 31, 2023**[148](index=148&type=chunk) [Note 6. Debt](index=77&type=section&id=Note%206.%20Debt) Total debt outstanding increased to $864.3 million across various facilities, with the weighted average interest rate on borrowings rising to **6.96%** Debt Composition as of September 30, 2023 (in thousands) | Facility | Drawn Amount | | :--- | :--- | | SPV Asset Facility | $314,750 | | SMBC Corporate Revolving Facility | $252,975 | | Series 2021A Unsecured Notes | $135,000 | | FCRX Unsecured Notes | $111,600 | | Series 2023A Unsecured Notes | $50,000 | | **Total Debt** | **$864,325** | - The combined weighted average interest rate of aggregate borrowings increased to **6.96%** for the nine months ended September 30, 2023, compared to **4.15%** for the same period in 2022[215](index=215&type=chunk) [Note 13. First Eagle Alternative Capital BDC, Inc. Acquisition](index=88&type=section&id=Note%2013.%20First%20Eagle%20Alternative%20Capital%20BDC%2C%20Inc.%20Acquisition) The company completed the acquisition of FCRD on March 9, 2023, accounted for as an asset acquisition with a total purchase price of $129.5 million - The acquisition of FCRD was completed on **March 9, 2023**[266](index=266&type=chunk) FCRD Acquisition Purchase Price (in thousands) | Component | Amount | | :--- | :--- | | Aggregate Share Consideration | $91,257 | | CCAP Cash Consideration | $8,649 | | Deemed contribution from the Adviser | $22,040 | | Transaction costs | $7,565 | | **Total Purchase Price** | **$129,511** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=89&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses performance, focusing on maximizing total return through debt and equity investments, highlighting increased investment income, portfolio activity, and liquidity [Portfolio and Investment Activity](index=94&type=section&id=Portfolio%20and%20Investment%20Activity) The investment portfolio grew to $1.56 billion, primarily floating-rate debt with an 11.9% yield, with net dispositions during the period Portfolio Statistics | Metric | Sep 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | Weighted avg. yield on income producing securities | 11.9% | 10.8% | | Percentage of debt at floating rate | 98.6% | 98.8% | | Number of portfolio companies | 185 | 129 | - For the nine months ended September 30, 2023, proceeds from investments sold or repaid (**$144.6 million**) exceeded new investments at cost (**$112.2 million**)[316](index=316&type=chunk) - Investments on non-accrual status represented **1.8%** of the portfolio's fair value as of September 30, 2023, compared to **1.2%** as of December 31, 2022[287](index=287&type=chunk) [Results of Operations](index=97&type=section&id=Results%20of%20Operations) Total investment income rose to $134.2 million, while net expenses increased to $74.4 million, resulting in net investment income of $59.8 million - Interest income for the nine months ended Sep 30, 2023, increased to **$123.5 million** from **$75.7 million** in the prior year period, attributed to a rise in benchmark rates, the FCRD Acquisition, and organic portfolio growth[291](index=291&type=chunk) - Interest and other debt financing costs for the nine months ended Sep 30, 2023, increased to **$43.0 million** from **$20.7 million** year-over-year due to higher average debt outstanding and a higher weighted average cost of debt[293](index=293&type=chunk) Net Investment Income Reconciliation (in millions) | Metric | Nine Months Ended Sep 30, 2023 | Nine Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Total Investment Income | $134.2 | $82.1 | | Total Net Expenses | $74.4 | $38.5 | | **Net Investment Income** | **$59.8** | **$43.6** | [Liquidity and Capital Resources](index=102&type=section&id=Liquidity%20and%20Capital%20Resources) The company had $340.1 million in available liquidity, with total debt of $864.3 million and an asset coverage ratio of 184%, exceeding regulatory requirements - As of September 30, 2023, the company had **$22.8 million** in cash and cash equivalents and **$317.3 million** of undrawn capacity on its credit facilities[328](index=328&type=chunk) - The company's asset coverage ratio was **184%** as of September 30, 2023, in compliance with the **150%** regulatory requirement[362](index=362&type=chunk) - On July 28, 2023, the company repaid its **$50.0 million** 5.95% Series 2020A Unsecured Notes and issued **$50.0 million** of 7.54% Series 2023A Unsecured Notes due 2026[308](index=308&type=chunk)[310](index=310&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=102&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces interest rate, valuation, and currency risks, with earnings sensitive to interest rate changes due to **98.6%** variable-rate investments - As of September 30, 2023, **98.6%** of the investments at fair value in the portfolio were at variable rates, making the company's income sensitive to interest rate fluctuations[137](index=137&type=chunk) Annualized Impact of Hypothetical Base Rate Changes (in millions) | Basis Point Change | Net Interest Income Change | | :--- | :--- | | Up 100 basis points | $10.4 | | Up 50 basis points | $5.2 | | Down 50 basis points | ($5.2) | | Down 100 basis points | ($10.4) | - The company uses foreign currency forward contracts to hedge exposure from investments denominated in foreign currencies[344](index=344&type=chunk) [Controls and Procedures](index=103&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of September 30, 2023, with no material changes reported - Management concluded that the company's disclosure controls and procedures were effective as of **September 30, 2023**[368](index=368&type=chunk) - There were no changes in internal control over financial reporting during the quarter ended September 30, 2023, that have materially affected, or are reasonably likely to materially affect, internal controls[370](index=370&type=chunk) PART II OTHER INFORMATION [Legal Proceedings](index=104&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine lawsuits, which are not anticipated to materially impact its financial condition or results of operations - The company is party to certain lawsuits in the normal course of business but does not expect them to materially affect its business, financial condition, or results of operations[348](index=348&type=chunk) [Risk Factors](index=104&type=section&id=Item%201A.%20Risk%20Factors) This section refers to 10-K risk factors, highlighting systemic risks in the U.S. and global banking sectors, including recent bank failures - The report highlights risks related to the instability of financial institutions, citing the failures of Silicon Valley Bank (SVB) and Signature Bank in **March 2023** as examples that could lead to market-wide problems[139](index=139&type=chunk)[371](index=371&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=105&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The Sun Life purchase program committed to buying up to $20.0 million of common stock, with $10.0 million worth of shares purchased through September 30, 2023 - In connection with the FCRD merger, Sun Life committed to a share purchase program of up to **$20.0 million**. Through September 30, 2023, the program had purchased **629,428 shares** for a total of **$10.0 million**[128](index=128&type=chunk) [Defaults Upon Senior Securities](index=105&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None reported[373](index=373&type=chunk) [Other Information](index=105&type=section&id=Item%205.%20Other%20Information) No director or Section 16 officer adopted or terminated Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the quarter - During the third quarter of 2023, no director or Section 16 officer adopted or terminated a Rule 10b5-1 trading arrangement[374](index=374&type=chunk) [Exhibits](index=106&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed with the quarterly report, including corporate governance documents, material contracts, and certifications - The report includes numerous exhibits, such as amendments to the Loan and Security Agreement, various Note Purchase Agreements, and the Senior Secured Revolving Credit Agreement[355](index=355&type=chunk)

Financial Data and Key Metrics Changes - The company reported record net investment income of $0.56 per share for Q2 2023, up from $0.54 per share in the prior quarter, reflecting a 3.7% increase [6] - Total investment income increased to $46.7 million, a 19% rise from $39.3 million in the previous quarter [16] - GAAP earnings per share for Q2 2023 was $0.61, compared to $0.24 per share in the prior quarter [17] - Net asset value per share increased to $19.58, up 1% from $19.38 in the previous quarter [6][17] Business Line Data and Key Metrics Changes - The weighted average portfolio grade improved to 2.1 from 2.2 last quarter, with 87% of the portfolio rated 1 and 2, up from 85% [8][80] - The weighted average interest coverage ratio remained stable at 1.7x, reflecting the latest base rates [13][52] - The weighted average loan-to-value at the time of underwriting was approximately 41% [14] Market Data and Key Metrics Changes - The company noted that LBO volume has picked up despite overall economic uncertainties [9] - Direct lending gained share from the syndicated markets, with approximately 85% of new issue LBO financing in the U.S. completed by direct lenders in Q2 [78] - The weighted average yield of income-producing securities increased from 11.4% to 11.7% quarter-over-quarter, driven by rising base rates [79] Company Strategy and Development Direction - The company maintains a defensively positioned portfolio with a focus on downside protection and lower risk of loss [7] - The investment strategy emphasizes lending to private equity-backed companies, with 98% of the debt portfolio in sponsor-backed companies [7] - The company plans to implement a variable supplemental dividend program to balance total distributions while preserving NAV stability [31][32] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the portfolio's performance and the ability to navigate current economic challenges [36] - The company anticipates a potential decline in rates in the first half of 2024, which could impact the BDC sector's earnings profile [60] - Management highlighted the strong liquidity position with $315 million of undrawn capacity, positioning the company well for future investments [18] Other Important Information - The company declared a quarterly cash dividend of $0.41 per share and a supplemental cash dividend of $0.08 per share [40] - The debt-to-equity ratio was reported at 1.19x, down from 1.23x in the prior quarter [39] Q&A Session Summary Question: How has the integration of the FCRD acquisition performed? - Management indicated that the diligence conducted prior to the acquisition has largely checked out, with initial performance meeting expectations [21][44] Question: What is the company's outlook on dividend policy? - Management emphasized a long-term view on dividend stability and the benefits of the supplemental dividend framework [24][49] Question: What is the current weighted average loan-to-value for the portfolio? - The company confirmed that the weighted average loan-to-value at origination was 41% and is currently around 70% [25][50] Question: What is the long-term outlook for the Logan JV? - Management conducted thorough diligence on the joint venture and expressed confidence in its structure and performance [69]

Second Quarter Performance 7 (1) 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 ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the company's unaudited consolidated financial statements, management's analysis of financial condition, market risk disclosures, and internal controls [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited consolidated financial statements, including assets, operations, and investment schedules, with accompanying notes [Consolidated Statements of Assets and Liabilities](index=4&type=section&id=Consolidated%20Statements%20of%20Assets%20and%20Liabilities) This statement details the company's financial position, including assets, liabilities, and net assets, as of specific reporting dates Consolidated Statements of Assets and Liabilities (in thousands) | Metric | As of June 30, 2023 (unaudited) | As of December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$1,624,623** | **$1,302,878** | | Total Investments, at fair value | $1,581,130 | $1,263,000 | | Cash and cash equivalents | $21,462 | $17,067 | | **Total Liabilities** | **$898,818** | **$690,337** | | Debt (net of deferred financing costs) | $859,167 | $654,456 | | **Total Net Assets** | **$725,805** | **$612,541** | | **Net Asset Value per share** | **$19.58** | **$19.83** | [Consolidated Statements of Operations](index=5&type=section&id=Consolidated%20Statements%20of%20Operations) This statement outlines the company's revenues, expenses, and net income for the reported periods Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | **Total investment income** | **$46,741** | **$26,774** | **$86,023** | **$53,154** | | **Total net expenses** | **$26,169** | **$11,241** | **$48,008** | **$25,484** | | **Net investment income** | **$20,572** | **$15,533** | **$38,065** | **$27,670** | | Net realized and unrealized gains (losses) | $1,413 | $(16,399) | $(8,515) | $(12,306) | | **Net increase (decrease) in net assets** | **$22,580** | **$(890)** | **$30,357** | **$15,319** | | Net increase (decrease) in net assets per share | $0.61 | $(0.03) | $0.87 | $0.50 | [Consolidated Schedule of Investments](index=10&type=section&id=Consolidated%20Schedule%20of%20Investments) This schedule provides a detailed breakdown of the company's investment portfolio by type and geographic region Portfolio Composition by Investment Type (at Fair Value) | Investment Type | As of June 30, 2023 ($ millions) | Percentage | As of Dec 31, 2022 ($ millions) | Percentage | | :--- | :--- | :--- | :--- | :--- | | Senior Secured First Lien | $445.5 | 28.1% | $301.0 | 23.8% | | Unitranche First Lien | $955.0 | 60.4% | $824.1 | 65.2% | | Senior Secured Second Lien | $57.2 | 3.6% | $60.9 | 4.8% | | Equity & Other | $48.9 | 3.1% | $44.9 | 3.6% | | LLC/LP Equity Interests | $54.6 | 3.5% | $13.8 | 1.1% | | Other Debt | $25.5 | 1.3% | $32.1 | 2.6% | | **Total Investments** | **$1,581.1** | **100.0%** | **$1,263.0** | **100.0%** | Portfolio Composition by Geography (at Fair Value) | Geographic Region | As of June 30, 2023 ($ millions) | Percentage | | :--- | :--- | :--- | | United States | $1,398.2 | 88.5% | | United Kingdom | $62.6 | 4.0% | | Canada | $37.1 | 2.3% | | Australia | $19.1 | 1.2% | | Other | $64.1 | 4.0% | | **Total Investments** | **$1,581.1** | **100.0%** | [Notes to Consolidated Financial Statements](index=61&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) These notes provide essential details and explanations supporting the consolidated financial statements - On March 9, 2023, the Company completed its acquisition of First Eagle Alternative Capital BDC, Inc. (FCRD), accounted for as an asset acquisition, with total consideration of **$129.5 million** allocated to the acquired assets and assumed liabilities[197](index=197&type=chunk)[306](index=306&type=chunk)[309](index=309&type=chunk) - The Company's debt facilities include a **$500.0 million** SPV Asset Facility, a **$385.0 million** SMBC Corporate Revolving Facility, and various unsecured notes, with total debt outstanding of **$867.1 million** and **$314.5 million** available for borrowing as of June 30, 2023[267](index=267&type=chunk)[269](index=269&type=chunk)[273](index=273&type=chunk) - As of June 30, 2023, the Company had sixteen investments across eight portfolio companies on non-accrual status, representing **2.2%** of total debt investments at cost and **1.7%** at fair value[221](index=221&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=89&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's analysis of the company's financial condition, investment activities, and operational results, including portfolio growth and liquidity [Portfolio Investment Activity](index=94&type=section&id=Portfolio%20Investment%20Activity) This section details changes in the investment portfolio, including fair value, number of companies, and new investment activity - As of June 30, 2023, the investment portfolio's fair value was **$1,581.1 million**, an increase from **$1,263.0 million** at year-end 2022, with investments in **187** companies, up from **129**[45](index=45&type=chunk)[47](index=47&type=chunk) - For the six months ended June 30, 2023, new investments at cost totaled **$67.1 million**, while proceeds from investments sold or repaid were **$82.5 million**, excluding **$335.0 million** of assets acquired in the First Eagle (FCRD) Acquisition[47](index=47&type=chunk) Portfolio Quality Indicators | Metric | As of June 30, 2023 | As of Dec 31, 2022 | | :--- | :--- | :--- | | Weighted avg. yield on income producing securities (at cost) | 11.7% | 10.8% | | Percentage of debt bearing a floating rate (at fair value) | 98.6% | 98.8% | | Non-Accrual Debt Investments (% of total debt at fair value) | 1.7% | 1.2% | - As of June 30, 2023, **86.4%** of the portfolio at fair value was rated '2' (performing as expected), and **11.4%** was rated '3' (performing below expectations)[52](index=52&type=chunk) [Results of Operations](index=97&type=section&id=Results%20of%20Operations) This section analyzes the company's financial performance, including investment income, expenses, and net asset changes Summary Statement of Operations (in millions) | Metric | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Total investment income | $46.7 | $26.7 | $86.0 | $53.2 | | Total net expenses | $26.1 | $11.2 | $48.0 | $25.5 | | **Net investment income** | **$20.6** | **$15.5** | **$38.0** | **$27.7** | | Net realized and unrealized gains (losses) | $1.4 | $(16.4) | $(8.4) | $(12.3) | | **Net increase (decrease) in net assets** | **$22.6** | **$(0.9)** | **$30.4** | **$15.3** | - Interest income for the six months ended June 30, 2023, increased to **$79.0 million** from **$48.5 million** in the prior year period, driven by a rise in benchmark rates, the FCRD Acquisition, and organic portfolio growth[86](index=86&type=chunk) - Interest and other debt financing costs for the six months ended June 30, 2023, increased to **$27.6 million** from **$12.0 million** in the same period of 2022, due to higher average debt outstanding and a higher weighted average cost of debt[89](index=89&type=chunk) Net Investment Income Reconciliation (in millions, except per share) | Metric | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | **GAAP net investment income** | **$38.0** | **$27.7** | | Per Share | $1.09 | $0.90 | | Capital gains based incentive fee | - | $(2.1) | | **Adjusted Net Investment Income (Non-GAAP)** | **$38.0** | **$25.6** | | Per Share | $1.09 | $0.83 | [Financial Condition, Liquidity and Capital Resources](index=102&type=section&id=FINANCIAL%20CONDITION,%20LIQUIDITY%20AND%20CAPITAL%20RESOURCES) This section assesses the company's financial health, including cash position, debt facilities, and compliance with financial covenants - As of June 30, 2023, the company had **$21.5 million** in cash and cash equivalents and **$314.5 million** of undrawn capacity on its credit facilities, subject to borrowing base limitations[32](index=32&type=chunk) - The company was in compliance with its asset coverage requirements and all financial covenants of its credit facilities as of June 30, 2023, with an asset coverage ratio of **183%**[33](index=33&type=chunk)[355](index=355&type=chunk) Total Debt Summary (in millions) | Debt Facility | June 30, 2023 | Dec 31, 2022 | | :--- | :--- | :--- | | SPV Asset Facility | $231.1 | $233.0 | | SMBC Corporate Revolving Facility | $339.4 | $241.8 | | 2023 Unsecured Notes | $50.0 | $50.0 | | 2026 Unsecured Notes | $135.0 | $135.0 | | 2026 Unsecured Notes - FCRX | $111.6 | $0.0 | | **Total Debt** | **$867.1** | **$659.8** | - The weighted average cost of debt increased to **6.73%** as of June 30, 2023, from **6.23%** as of December 31, 2022, with the combined weighted average interest rate for the six months ended June 30, 2023, at **6.82%**, up from **3.71%** for the same period in 2022[2](index=2&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=102&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section details the company's exposure to market risks, including valuation, interest rate, and currency risks, and strategies for mitigation - The company's investments are primarily in illiquid debt and equity of private companies, which are valued in good faith by the Adviser, creating valuation risk as the determined fair value may differ from the value realized in a sale[362](index=362&type=chunk) Annualized Impact of Hypothetical Interest Rate Changes (in millions) | Basis Point Change | Change in Net Interest Income (1) | | :--- | :--- | | Up 100 basis points | $10.5 | | Up 50 basis points | $5.2 | | Down 50 basis points | $(5.2) | | Down 100 basis points | $(10.5) | - To mitigate currency risk from foreign-denominated investments, the company uses foreign currency forward contracts, with notional exposure to contracts in GBP, EUR, CAD, AUD, and SEK as of June 30, 2023[370](index=370&type=chunk) [Controls and Procedures](index=103&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal control over financial reporting were effective as of June 30, 2023 - The Principal Executive Officer and Principal Financial Officer concluded that the company's disclosure controls and procedures were effective at a reasonable assurance level as of June 30, 2023[371](index=371&type=chunk) - No material changes in internal control over financial reporting occurred during the quarter ended June 30, 2023[374](index=374&type=chunk) [PART II OTHER INFORMATION](index=104&type=section&id=PART%20II%20OTHER%20INFORMATION) This section provides additional information on legal proceedings, risk factors, equity sales, defaults, and other corporate disclosures [Legal Proceedings](index=104&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in routine legal proceedings not expected to materially impact its business or financial condition - The company is involved in legal proceedings in the normal course of business, but management does not anticipate these will have a material impact[381](index=381&type=chunk) [Risk Factors](index=104&type=section&id=Item%201A.%20Risk%20Factors) This section references risk factors from the annual report, emphasizing systemic banking sector risks and their potential adverse effects - Significant risks related to financial institution stability are highlighted, referencing the failures of Silicon Valley Bank and Signature Bank in March 2023 and potential market-wide adverse effects[376](index=376&type=chunk)[383](index=383&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=105&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Sun Life initiated a **$20 million** share purchase program post-merger, acquiring **164,561** shares for **$2.4 million** by June 30, 2023 - Sun Life initiated a share purchase program to support the company's stock post-merger, purchasing **164,561** shares for **$2.4 million** at an average price of **$14.73** per share as of June 30, 2023[384](index=384&type=chunk) [Defaults Upon Senior Securities](index=105&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) No defaults upon senior securities were reported during the period - None[385](index=385&type=chunk) [Other Information](index=105&type=section&id=Item%205.%20Other%20Information) Company executives adopted Rule 10b5-1 trading plans on May 15, 2023, for stock purchases commencing in August 2023 - Company executives, including the CEO and CFO, adopted Rule 10b5-1 trading plans on May 15, 2023, for the purchase of company stock, with purchases expected to begin in August 2023[386](index=386&type=chunk) [Exhibits](index=106&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed as part of the quarterly report, including agreements and certifications

Financial Data and Key Metrics Changes - The adjusted net investment income per share increased by 10% to $0.54 for Q1 2023 from $0.49 in the prior quarter, driven primarily by rising base rates and higher spreads [102] - Total investment income for Q1 was $39.3 million, up approximately 14% from $34.5 million in the previous quarter, largely due to rising base rates and contributions from the First Eagle acquisition [8][102] - The net asset value per share decreased by 2.3% to $19.38 compared to the previous quarter, attributed to transaction costs from the First Eagle acquisition and unrealized losses from wider credit spreads [113] Business Line Data and Key Metrics Changes - The portfolio remains primarily composed of senior secured first lien and unitranche first lien loans, representing 89% of the total portfolio at fair value, with a slight decrease from 90% at year-end [103] - The weighted average yield of income-producing securities at cost increased from 10.8% to 11.4% quarter-over-quarter, reflecting the impact of the Federal Reserve's interest rate hikes [122] Market Data and Key Metrics Changes - The company has not observed broad-based revenue pressure at the portfolio or sector level, with declines being company-specific, particularly among those that benefited from COVID-19 [4] - The weighted average loan-to-value in the portfolio at the time of underwriting was approximately 41%, providing a margin of safety [83] Company Strategy and Development Direction - The company is focused on providing conventional cash flow-based leverage financing to mature sponsor-backed companies, avoiding loans based on free cash flow or annual recurring revenue [2] - The acquisition of First Eagle BDC is expected to enhance funding flexibility and improve the unsecured debt mix, with plans to proactively explore refinancing options as maturities approach [16][42] Management's Comments on Operating Environment and Future Outlook - Management believes the company is well-positioned to navigate potential economic challenges in 2023 and beyond, leveraging its experience through multiple market cycles [13][84] - There is a focus on managing the impact of rising wages and interest rates, with revenue growth outpacing EBITDA growth, particularly in the healthcare sector [124] Other Important Information - The company declared a quarterly cash dividend of $0.41 per share for Q2 2023, to be paid on July 17, 2023 [30][119] - Approximately 70% of aggregate revolving capacity was available across the portfolio, indicating a manageable liquidity position [12] Q&A Session All Questions and Answers Question: How much of your total investment income or your NII was from the accretion from the FCRD acquisition? - The impact from the acquisition was limited to the last three weeks of the quarter, with approximately just over 10% of total revenue coming from First Eagle [92] Question: Can you provide the full quarter topline revenue and interest expense pro forma for First Eagle? - Total revenue for the quarter was about $39 million, with the acquisition contributing a limited lift due to its timing [92] Question: What industries are experiencing tailwinds or headwinds in the current environment? - The healthcare sector is facing wage pressures, while other sectors are generally stable to growing, with revenue growth outpacing EBITDA growth [93][55]

Crescent Capital BDC, Inc. 2 This Presentation may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "anticipates," "believes," "expects," "intends," "will," "should," "may," "plans," "continue," "believes," "seeks," "estimates," "would," "could," "targets," "projects," "outlook," "potential," "predicts" and variations of these words and similar expressions to identify forward-looking state ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. Commission file number 814-01132 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 Securities registered pursuant to Secti ...