Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q2 2021 Earnings Conference Call February 10, 2021 1:00 PM ET Company Participants Mike Mauer - Chairman and CEO Chris Jansen - Co-CIO Rocco DelGuercio - CFO Conference Call Participants Christopher Nolan - Ladenburg Thalmann & Co. Inc. Paul Johnson - Keefe, Bruyette & Woods, Inc. Operator Welcome to Investcorp Credit Management BDC Scheduled Earnings Release of Second Quarter Ended December 31, 2020. Your speakers for today's call are Mike Mauer; Chris J ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-01054 INVESTCORP CREDIT MANAGEMENT BDC, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 46-2883380 (State or other Jurisdiction of Incorp ...

Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q3 2020 Results Conference Call November 10, 2020 1:00 PM ET Company Participants Mike Mauer - Chairman and Chief Executive Officer Chris Jansen - Co-Chief Investment Officer Rocco DelGuercio - Chief Financial Officer Conference Call Participants Christopher Nolan - Ladenburg Thalmann & Co. Inc. Paul Johnson - Keefe, Bruyette & Woods, Inc. Robert Dodd - Raymond James & Associates Operator Welcome to the scheduled earnings conference call, first quarter en ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-01054 INVESTCORP CREDIT MANAGEMENT BDC, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 46-2883380 (State or other Jurisdiction of Incorporation or Organization) (I.R.S. Employer Identification No.) 280 Park Avenue 39th Floor New York, NY 10017 (Address of Princ ...

PART I [Business Overview](index=3&type=section&id=Item%201.%20Business) The company is an externally managed BDC investing in U.S. middle-market debt, aiming for total return via current income and capital appreciation - The company changed its name to **Investcorp Credit Management BDC, Inc.** on August 30, 2019[10](index=10&type=chunk) - The primary investment objective is to maximize total return to stockholders through **current income and capital appreciation** from privately held middle-market debt and equity investments[11](index=11&type=chunk) - Target middle-market companies typically have annual revenues of at least **$50 million** and EBITDA of at least **$15 million**, with investments ranging from **$5 million to $25 million**[12](index=12&type=chunk)[39](index=39&type=chunk) Portfolio Composition at Fair Value (June 30, 2020) | Investment Type | Percentage of Total Portfolio (%) | | :-------------------- | :-------------------------------- | | First Lien Investments| 83.6% | | Second Lien Investments| 10.2% | | Unitranche Loans | 4.0% | | Equity, Warrant or Other Positions | 2.2% | - As of June 30, 2020, the weighted average total yield on debt and income-producing securities at amortized cost was **9.58%**, and on total investments was **9.01%**[24](index=24&type=chunk) - Investcorp Credit Management US LLC acquired approximately **76%** ownership in the investment adviser on August 30, 2019, contributing **$32.2 billion** in total assets under management to the Investcorp Group by June 30, 2020[28](index=28&type=chunk)[29](index=29&type=chunk) - The company uses a **$122.0 million** Term Financing facility and a **$30.0 million** Revolving Financing facility with UBS, both collateralized by debt investments, with **$102.0 million** and **$30.0 million** outstanding respectively as of June 30, 2020[13](index=13&type=chunk)[16](index=16&type=chunk)[17](index=17&type=chunk) - The company has **$51.4 million** in **6.125% Notes due 2023** outstanding as of June 30, 2020, which are unsecured but effectively and structurally subordinated to secured debt and subsidiary obligations[18](index=18&type=chunk)[19](index=19&type=chunk)[21](index=21&type=chunk) - Asset coverage requirements for senior securities changed from **200% to 150%** effective May 2, 2019, following board approval under the Small Business Credit Availability Act[23](index=23&type=chunk)[133](index=133&type=chunk) [Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) The company faces substantial risks from capital market disruptions, economic uncertainty, key personnel dependence, and adviser conflicts, compounded by leverage, illiquid middle-market investments, and subordinated unsecured notes - Capital markets face disruption and economic uncertainty, exacerbated by the **COVID-19 pandemic**, negatively impacting debt and equity markets, investment valuations, and capital raising ability[165](index=165&type=chunk)[167](index=167&type=chunk)[168](index=168&type=chunk) - Dependence on key Adviser personnel and potential conflicts of interest from the Adviser's multiple roles and incentive fee structure (potentially encouraging leverage) pose significant risks[188](index=188&type=chunk)[194](index=194&type=chunk)[199](index=199&type=chunk) - Leverage magnifies potential for loss on investments and equity capital, increasing stockholder risks, with substantially all assets pledged as collateral under financing facilities as of June 30, 2020[230](index=230&type=chunk)[231](index=231&type=chunk) - Investments in private and middle-market companies are risky due to limited public information, potential for financial distress, and susceptibility to economic downturns, leading to possible defaults or losses[285](index=285&type=chunk)[294](index=294&type=chunk)[295](index=295&type=chunk) - The company's debt investments may be subordinated to other creditors, and Payment-In-Kind (PIK) interest components carry risks of deferred cash receipt and unreliable valuations[293](index=293&type=chunk)[298](index=298&type=chunk)[327](index=327&type=chunk) Top 3 Industry Concentrations (June 30, 2020) | Industry | Percentage of Total Portfolio (Fair Value) (%) | | :---------------------------- | :--------------------------------------------- | | Professional Services | 11.48% | | Construction & Engineering | 11.18% | | Energy Equipment & Services | 10.92% | - The **2023 Notes** are unsecured, effectively subordinated to secured indebtedness (e.g., Financing Facilities), and structurally subordinated to subsidiary liabilities, offering limited protection to noteholders[356](index=356&type=chunk)[357](index=357&type=chunk)[359](index=359&type=chunk) - The market price of common stock may fluctuate significantly and trade at a discount to net asset value, potentially causing dilution if new shares are sold below NAV or if stockholders do not participate in the dividend reinvestment plan[342](index=342&type=chunk)[345](index=345&type=chunk)[353](index=353&type=chunk) [Unresolved Staff Comments](index=76&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) This item is not applicable to the company [Properties](index=76&type=section&id=Item%202.%20Properties) The company does not own any real estate, with its principal executive offices provided by the Investment Adviser in New York, NY - The company does not own any real estate[373](index=373&type=chunk) - Principal executive offices are located in New York, NY, provided by the Adviser[373](index=373&type=chunk) [Legal Proceedings](index=76&type=section&id=Item%203.%20Legal%20Proceedings) The company is not currently involved in any material legal proceedings, nor are any material proceedings threatened against it - The company is not currently subject to any material legal proceedings, nor are any material legal proceedings threatened against it[374](index=374&type=chunk) - Routine legal proceedings in the ordinary course of business are not expected to materially affect financial condition or results of operations[374](index=374&type=chunk) [Mine Safety Disclosures](index=76&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company PART II [Market for Common Equity and Stockholder Matters](index=77&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) The company's common stock trades on NASDAQ under 'ICMB', with a closing price of **$4.38** per share as of September 18, 2020, and an 'opt out' dividend reinvestment plan - Common stock is traded on the **NASDAQ Global Select Market** under the symbol **ICMB**[378](index=378&type=chunk) - As of September 18, 2020, the last reported sale price for common stock was **$4.38 per share**, with **29 stockholders of record**[379](index=379&type=chunk) Common Stock Price vs. NAV (Fiscal Year Ended June 30, 2020) | Quarter | NAV Per Share ($) | High Sales Price ($) | Low Sales Price ($) | Discount of High Sales to NAV (%) | Discount of Low Sales to NAV (%) | | :------------ | :---------------- | :------------------- | :------------------ | :-------------------------------- | :------------------------------- | | Fourth quarter| $7.79 | $4.84 | $2.95 | (37.87)% | (62.13)% | | Third quarter | $8.15 | $7.65 | $1.49 | (6.13)% | (81.72)% | | Second quarter| $10.15 | $7.32 | $6.45 | (27.88)% | (36.45)% | | First quarter | $10.19 | $7.65 | $6.65 | (24.93)% | (34.74)% | - The company intends to qualify as a **Regulated Investment Company (RIC)**, requiring distribution of at least **90%** of its net ordinary income and realized net short-term capital gains[382](index=382&type=chunk) - The company has an **'opt out' dividend reinvestment plan**, where cash distributions are automatically reinvested in additional common stock unless stockholders opt out[384](index=384&type=chunk) Distributions Declared Per Share (Fiscal Year Ended June 30, 2020) | Quarter | Type | Amount Per Share ($) | | :------------ | :----------- | :------------------- | | First Quarter | Base | $0.2500 | | Second Quarter| Base | $0.2500 | | Third Quarter | Base | $0.2500 | | Fourth Quarter| Base | $0.1500 | | Fourth Quarter| Supplemental | $0.0300 | | **Total** | | **$0.9300** | - No shares of common stock were repurchased during the year ended June 30, 2020[387](index=387&type=chunk) [Selected Financial Data](index=79&type=section&id=Item%206.%20Selected%20Financial%20Data) This section summarizes key financial data for Investcorp Credit Management BDC, Inc. for fiscal years 2016-2020, covering statements of operations, per share data, balance sheet figures, and other operational metrics Selected Financial Data (Years Ended June 30) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :------------------------------------------ | :------------- | :------------- | :------------- | :------------- | :------------- | | **Statement of Operations Data:** | | | | | | | Total investment income | $34,460,604 | $34,397,822 | $40,791,752 | $31,012,197 | $35,579,922 | | Total expenses, net of fee waiver | $20,295,322 | $20,898,983 | $21,816,119 | $15,313,613 | $15,725,966 | | Net investment income | $14,165,282 | $13,498,839 | $18,975,633 | $15,698,584 | $19,853,956 | | Net increase (decrease) in net assets | $(24,656,475) | $(14,542,229) | $15,625,480 | $23,579,465 | $(9,344,770) | | **Per Share Data:** | | | | | | | Net asset value | $7.79 | $10.51 | $12.57 | $12.41 | $11.90 | | Net investment income | $1.03 | $0.99 | $1.39 | $1.15 | $1.45 | | Earnings per share | $(1.79) | $(1.07) | $1.14 | $1.72 | $(0.68) | | Distributions declared | $0.93 | $1.00 | $1.00 | $1.20 | $1.83 | | **Balance Sheet Data:** | | | | | | | Investments at fair value | $270,621,709 | $306,390,993 | $293,592,013 | $254,907,171 | $272,114,164 | | Cash and cash equivalents | $14,876,444 | $19,706,281 | $5,620,441 | $10,646,697 | $18,433,066 | | Total assets | $296,794,509 | $336,947,992 | $314,534,581 | $296,033,878 | $321,471,906 | | Total liabilities | $188,669,514 | $193,864,102 | $143,011,915 | $126,085,766 | $158,722,023 | | Total net assets | $108,124,995 | $143,083,890 | $171,522,666 | $169,948,112 | $162,749,883 | | **Other Data:** | | | | | | | Number of portfolio companies | 38 | 33 | 25 | 23 | 22 | | Weighted average yield on debt investments | 9.58% | 10.50% | 11.19% | 9.73% | 9.80% | | Weighted average yield on total investments | 9.01% | 10.25% | 11.12% | 9.64% | 9.70% | [Management's Discussion and Analysis](index=80&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section analyzes the company's financial condition and operations, highlighting the Investcorp Transaction, COVID-19 impact, accounting policies, financing, portfolio, and performance for fiscal years 2020-2018 - The **Investcorp Transaction** on August 30, 2019, involved Investcorp acquiring a **76%** ownership in the Adviser, leading to new Advisory and Administration Agreements, and requiring Investcorp BDC to purchase **680,985** newly issued and **680,985** open-market shares by August 30, 2021[402](index=402&type=chunk)[404](index=404&type=chunk)[405](index=405&type=chunk) - Operating results for the year ended June 30, 2020, were negatively impacted by the **COVID-19 pandemic**, causing severe global economic disruptions and significant net unrealized depreciation on investments due to widening credit spreads[409](index=409&type=chunk) - Investment valuation is a critical accounting policy, with fair value determined by the board using market and income approaches, often with independent firm input; all investments were classified as **Level 3** as of June 30, 2020 and 2019[412](index=412&type=chunk)[415](index=415&type=chunk)[416](index=416&type=chunk) - Revenue recognition includes accrual of interest income, amortization of fees/discounts, and prepayment penalties; no loans were on non-accrual status as of June 30, 2020, which occurs when payments are 90+ days past due or collectability is doubtful[424](index=424&type=chunk)[427](index=427&type=chunk)[428](index=428&type=chunk) - The company's financing includes a **$102.0 million** Term Financing and a **$30.0 million** Revolving Financing with UBS, and **$51.4 million** in **6.125% Notes due 2023**, which are unsecured and structurally subordinated to secured facilities[431](index=431&type=chunk)[432](index=432&type=chunk)[435](index=435&type=chunk) Portfolio Composition and Yield (June 30, 2020) | Metric | Value / Percentage | | :------------------------------------------ | :----------------- | | Investment Portfolio Fair Value | $270.6 million | | Number of Portfolio Companies | 38 | | First Lien Investments | 83.6% | | Second Lien Investments | 10.2% | | Unitranche Loans | 4.0% | | Equity, Warrants and Other Positions | 2.2% | | Weighted Average Total Yield (Debt, amortized cost) | 9.58% | | Weighted Average Total Yield (Total, amortized cost) | 9.01% | Key Financial Performance (Years Ended June 30) | Metric | 2020 | 2019 | 2018 | | :-------------------- | :------------ | :------------ | :------------ | | Investment Income | $34.5 million | $34.4 million | $40.8 million | | Total Expenses (net) | $20.3 million | $20.9 million | $21.8 million | | Net Investment Income | $14.2 million | $13.5 million | $19.0 million | | Net Realized Loss | $7.6 million | $22.0 million | $9.9 million | | Net Unrealized Depreciation | $31.2 million | $6.1 million | $6.5 million (appreciation) | - As of June 30, 2020, the company had **$14.9 million** in cash, **$5.4 million** in restricted cash, and no capacity under the Revolving Financing, with senior securities totaling **$183.4 million** and an asset coverage ratio of **159.3%**[470](index=470&type=chunk) - The Advisory Agreement includes a Base Management Fee of **1.75% of gross assets** and an Incentive Fee with income-based (**20.0%** of Pre-Incentive Fee Net Investment Income above an **8.0%** hurdle) and capital gains components (**20.0%** of cumulative realized capital gains, commencing FY2021)[484](index=484&type=chunk)[487](index=487&type=chunk)[493](index=493&type=chunk) - Off-balance sheet arrangements primarily consist of unfunded commitments, totaling **$2.1 million** to three portfolio companies as of June 30, 2020[504](index=504&type=chunk) - Subsequent to June 30, 2020, through September 18, 2020, the company invested **$13.3 million** and received **$19.7 million** in repayments, with the board declaring a Q1 FY2021 base dividend of **$0.15/share** and a supplemental dividend of **$0.03/share**[505](index=505&type=chunk)[506](index=506&type=chunk) [Market Risk Disclosure](index=97&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosure%20About%20Market%20Risk) The company is primarily exposed to interest rate risk, with **99.5%** of debt investments bearing floating rates, and a **1.00%** interest rate increase would raise net interest income by approximately **4.4%** - As of June 30, 2020, **99.5%** of the company's debt investments bore interest based on floating rates (e.g., LIBOR)[507](index=507&type=chunk) Interest Rate Sensitivity (June 30, 2020) | Interest Rate Change (%) | Impact on Net Interest Income (%) | | :----------------------- | :-------------------------------- | | +1.00% | +4.4% | | +2.00% | +4.0% | - Floating rate investments subject to a floor only benefit from interest rate increases once rates exceed the floor[508](index=508&type=chunk) [Financial Statements and Supplementary Data](index=100&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents the audited consolidated financial statements, including Statements of Assets and Liabilities, Operations, Changes in Net Assets, and Cash Flows for fiscal years 2020-2018, along with detailed Schedules of Investments and comprehensive notes - RSM US LLP provided an unqualified opinion on the consolidated financial statements for the period ended June 30, 2020, confirming conformity with **U.S. GAAP**[514](index=514&type=chunk)[518](index=518&type=chunk) Consolidated Statements of Assets and Liabilities (June 30) | Metric | 2020 | 2019 | | :------------------------------------------ | :------------- | :------------- | | Total Assets | $296,794,509 | $336,947,992 | | Investments at fair value | $270,621,709 | $306,390,993 | | Cash and restricted cash | $20,293,562 | $26,296,182 | | Total Liabilities | $188,669,514 | $193,864,102 | | Notes payable, net | $182,332,503 | $165,526,408 | | Total Net Assets | $108,124,995 | $143,083,890 | | Net Asset Value Per Share | $7.79 | $10.51 | Consolidated Statements of Operations (Years Ended June 30) | Metric | 2020 | 2019 | 2018 | | :------------------------------------------ | :------------- | :------------- | :------------- | | Total investment income | $34,460,604 | $34,397,822 | $40,791,752 | | Net expenses | $20,295,322 | $20,898,983 | $21,816,119 | | Net investment income | $14,165,282 | $13,498,839 | $18,975,633 | | Net realized gain (loss) from investments | $(7,632,194) | $(21,982,973) | $(9,855,453) | | Net change in unrealized appreciation (depreciation) | $(31,189,563) | $(6,058,095) | $6,505,300 | | Net increase (decrease) in net assets resulting from operations | $(24,656,475) | $(14,542,229) | $15,625,480 | | Net investment income per share | $1.03 | $0.99 | $1.39 | | Earnings per share | $(1.79) | $(1.07) | $1.14 | Consolidated Statements of Cash Flows (Years Ended June 30) | Metric | 2020 | 2019 | 2018 | | :------------------------------------------ | :------------- | :------------- | :------------- | | Net cash provided by (used in) operating activities | $(10,550,392) | $(13,962,564) | $(28,147,866) | | Net cash provided by (used in) financing activities | $4,547,772 | $31,932,032 | $3,211,706 | | Net change in cash | $(6,002,620) | $17,969,468 | $(24,936,160) | | Cash and restricted cash at end of period | $20,293,562 | $26,296,182 | $8,326,714 | Investment Portfolio Composition by Type (June 30, 2020) | Investment Type | Amortized Cost ($) | Percentage of Total Portfolio (Amortized Cost) (%) | Fair Value ($) | Percentage of Total Portfolio (Fair Value) (%) | | :-------------------------------- | :----------------- | :------------------------------------------------- | :------------- | :--------------------------------------------- | | Senior Secured First Lien Debt | $248,155,342 | 78.30% | $237,079,624 | 83.65% | | Unitranche First Lien Debt | $11,277,314 | 3.56% | $10,713,448 | 3.96% | | Senior Secured Second Lien Debt | $38,520,395 | 12.15% | $27,719,133 | 10.24% | | Equity, Warrants and Other | $18,971,587 | 5.99% | $5,822,952 | 2.15% | | **Total** | **$316,924,638** | **100.00%** | **$270,621,709** | **100.00%** | Investment Portfolio Composition by Industry (June 30, 2020, Fair Value) | Industry Classification | Fair Value ($) | Percentage of Total Portfolio (%) | | :-------------------------------- | :------------- | :-------------------------------- | | Professional Services | $31,056,563 | 11.48% | | Construction & Engineering | $30,252,174 | 11.18% | | Energy Equipment & Services | $29,555,420 | 10.92% | | Trading Companies & Distributors | $24,586,660 | 9.09% | | Media | $19,176,144 | 7.09% | | Containers & Packaging | $16,052,915 | 5.93% | | Diversified Telecommunication Services | $12,562,817 | 4.64% | | Commercial Services & Supplies | $12,402,682 | 4.58% | | Retail | $11,700,000 | 4.32% | | Distributors | $9,456,000 | 3.49% | | Internet Software & Services | $9,226,180 | 3.41% | | Consumer Finance | $9,113,150 | 3.37% | | Airlines | $9,067,500 | 3.35% | | Construction Materials | $6,531,518 | 2.41% | | Auto Components | $6,236,446 | 2.31% | | Internet & Direct Marketing Retail| $6,193,975 | 2.29% | | Specialty Retail | $5,641,123 | 2.08% | | Household Durables | $4,919,063 | 1.82% | | Chemicals | $4,800,000 | 1.77% | | Road & Rail | $3,873,349 | 1.43% | | Hotels, Restaurants & Leisure | $3,846,750 | 1.42% | | IT Services | $2,964,904 | 1.10% | | Technology Hardware, Storage & Peripherals | $1,406,376 | 0.52% | | Wireless Telecommunication Services | $0 | 0.00% | | **Total** | **$270,621,709** | **100.00%** | Unfunded Commitments (June 30, 2020) | Investments | Unfunded Commitment ($) | | :-------------------------------- | :---------------------- | | 1888 Industrial Services, LLC - Revolver | $594,059 | | 1888 Industrial Services, LLC - Term E | $120,845 | | Altern Marketing, LLC | $1,370,249 | | Limbach Holdings Inc | $5,769,230 | | **Total Unfunded Commitments** | **$7,854,383** | Financial Highlights (Years Ended June 30) | Metric | 2020 | 2019 | 2018 | 2017 | 2016 | | :------------------------------------------ | :------------- | :------------- | :------------- | :------------- | :------------- | | Net asset value, beginning of period | $10.51 | $12.57 | $12.41 | $11.90 | $14.41 | | Net investment income per share | $1.03 | $0.99 | $1.39 | $1.15 | $1.45 | | Net realized and unrealized gains (losses) per share | $(2.82) | $(2.06) | $(0.24) | $0.56 | $(2.13) | | Net increase (decrease) in net assets resulting from operations per share | $(1.79) | $(1.07) | $1.15 | $1.71 | $(0.68) | | Distributions from net investment income per share | $(0.93) | $(1.00) | $(1.00) | $(1.20) | $(1.51) | | Net asset value, end of period | $7.79 | $10.51 | $12.57 | $12.41 | $11.90 | | Market value per share, end of period | $3.49 | $7.61 | $8.90 | $10.00 | $8.88 | | Total return based on market value | (43.32)% | (1.49)% | 0.01% | 27.93% | (21.26)% | | Shares outstanding at end of period | 13,885,335 | 13,619,690 | 13,649,504 | 13,689,221 | 13,679,686 | | Asset Coverage Ratio | 1.59 | 1.85 | 2.43 | 2.67 | 2.23 | | Portfolio Turnover Rate | 33% | 51% | 52% | 52% | 21% | [Changes in Accountants and Disclosures](index=147&type=section&id=Item%209.%20Changes%20in%20and%20Disagreements%20with%20Independent%20Registered%20Public%20Accounting%20Firm%20on%20Accounting%20and%20Financial%20Disclosure) There were no changes in or disagreements on accounting or financial disclosure with RSM US LLP, the company's independent registered public accounting firm, during the fiscal year ended June 30, 2020 - No changes in or disagreements on accounting or financial disclosure with RSM US LLP during the fiscal year ended June 30, 2020[754](index=754&type=chunk) [Controls and Procedures](index=147&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures, and internal control over financial reporting, were effective as of June 30, 2020, with no material changes identified during the quarter - Disclosure controls and procedures were evaluated as **effective** as of June 30, 2020, providing reasonable assurance for timely and accurate financial reporting[755](index=755&type=chunk) - Management's assessment concluded that internal control over financial reporting was **effective** as of June 30, 2020, based on **COSO 2013 criteria**[758](index=758&type=chunk) - No material changes in internal control over financial reporting were identified during the quarter ended June 30, 2020[759](index=759&type=chunk) [Other Information](index=148&type=section&id=Item%209B.%20Other%20Information) This section updates on fees and expenses, including stockholder transaction and annual expenses, detailing Base Management and Incentive Fee components, and provides a hypothetical example of projected cumulative expenses Annual Expenses (as percentage of net assets attributable to common stock) | Expense Category | Percentage (%) | | :-------------------------------------------------- | :------------- | | Base management fees | 4.73% | | Incentive fees payable under the investment advisory agreement (20.0%) | 0.46% | | Interest payments on borrowed funds | 9.54% | | Other expenses | 4.52% | | **Total annual expenses** | **19.25%** | - The incentive fee has two components: an ordinary income component (**20.0%** of Pre-incentive Fee Net Investment Income over an **8.0%** quarterly hurdle rate) and a capital gains component (**20.0%** of cumulative realized capital gains, net of losses and unrealized depreciation)[762](index=762&type=chunk)[764](index=764&type=chunk) Projected Cumulative Expenses on a $1,000 Investment (assuming 5% annual return) | Period | Cumulative Expenses ($) | | :------- | :---------------------- | | 1 Year | $212 | | 3 Years | $485 | | 5 Years | $686 | | 10 Years | $986 | PART III [Directors, Executive Officers and Governance](index=151&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the 2020 Annual Meeting Proxy Statement, with the company maintaining a code of business conduct and ethics - Information is incorporated by reference from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[772](index=772&type=chunk) - The company has adopted a code of business conduct and ethics, available on its website (www.icmbdc.com)[773](index=773&type=chunk) [Executive Compensation](index=151&type=section&id=Item%2011.%20Executive%20Compensation) Information regarding executive compensation is incorporated by reference from the company's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[774](index=774&type=chunk) [Security Ownership and Related Matters](index=151&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership of certain beneficial owners, management, and related stockholder matters is incorporated by reference from the 2020 Annual Meeting Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[775](index=775&type=chunk) [Related Transactions and Director Independence](index=151&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information regarding certain relationships, related transactions, and director independence is incorporated by reference from the 2020 Annual Meeting Proxy Statement - Information is incorporated by reference from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[776](index=776&type=chunk) [Principal Accountant Fees and Services](index=151&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) Information regarding principal accountant fees and services is incorporated by reference from the company's definitive Proxy Statement for the 2020 Annual Meeting of Stockholders - Information is incorporated by reference from the definitive Proxy Statement for the 2020 Annual Meeting of Stockholders[777](index=777&type=chunk) PART IV [Exhibits and Financial Statement Schedules](index=152&type=section&id=Item%2015.%20Exhibits%2C%20Financial%20Statement%20Schedules) This section lists filed financial statements, including the Report of Independent Registered Public Accounting Firm, consolidated statements, schedules of investments, and comprehensive notes, along with a detailed list of exhibits - Financial statements filed include Consolidated Statements of Assets and Liabilities, Operations, Changes in Net Assets, Cash Flows, Schedules of Investments, and Notes to Financial Statements[778](index=778&type=chunk) - Exhibits include Articles of Amendment and Restatement, Bylaws, Form of Stock Certificate, Base Indenture, Investment Advisory Agreement, Administration Agreement, and various other agreements and certifications[779](index=779&type=chunk)[782](index=782&type=chunk) [Signatures](index=155&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-K report, including those of the Chief Executive Officer, Chief Financial Officer, and Directors, certifying compliance with the Securities Exchange Act of 1934 - The report is signed by the Chief Executive Officer, Chief Financial Officer, and Directors, certifying compliance with the Securities Exchange Act of 1934[784](index=784&type=chunk)[785](index=785&type=chunk)

Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q4 2020 Results Earnings Conference Call September 15, 2020 1:00 PM ET Company Participants Mike Mauer - Chairman, Chief Executive Officer Rocco DelGuercio - Chief Compliance Officer, Chief Financial Officer Chris Jansen - President, Secretary Conference Call Participants Robert Dodd - Raymond James & Associates Paul Johnson - Keefe, Bruyette & Woods, Inc. Christopher Nolan - Ladenburg Thalmann & Co. Inc. David Rothschild - Rothschild Capital Partners, LL ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (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, 2020 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 INVESTCORP CREDIT MANAGEMENT BDC, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 46-2883380 (State or other Jurisdiction of Incorporation or Organiza ...

Financial Data and Key Metrics Changes - For the quarter ended December 31, 2019, the net investment income was $3.8 million or $0.27 per share, with a fair value of the portfolio at $305 million compared to $302 million at September 30 [23][24] - The portfolio's net increase in operations for the quarter was approximately $3 million, with new investments yielding an average of 10.33% [23] - The weighted average yield of the portfolio was 10.41%, a decrease of 3 basis points from September 30 [24] Business Line Data and Key Metrics Changes - The company invested in six portfolio companies during the quarter, including four new investments, with all investors being first lien [11] - The average portfolio investment was approximately $8.7 million, with the largest investment being $60.3 million in 1888 Industrial Services [24] Market Data and Key Metrics Changes - As of December 31, the largest industry concentration was in professional services at 11.7%, followed by energy, equipment and services at 11.6% [21] - The portfolio companies spanned 22 GICS industries, with a total of 35 portfolio companies as of quarter end [22][24] Company Strategy and Development Direction - The company is focused on repositioning and diversifying the portfolio, aiming for a better balance across industries and increasing the number of new portfolio companies [7][8] - The company plans to maintain a leverage target in the range of 1.0 to 1.5 times, currently at 1.23 times as of December 31 [35] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism regarding the restructuring of Fusion Connect and the potential for future returns, emphasizing the importance of the company's strategic decisions [28][29] - The company is cautious about stretching its attachment point too deep into the capital structure, focusing on first lien loans to target higher returns [33] Other Important Information - The company declared a distribution of $0.25 per share for the quarter ended March 31, 2020, maintaining the dividend level since March 2017 [37] - The company has been actively purchasing its shares, with 90,459 shares bought through December 31 under a 10b5 program [38] Q&A Session Summary Question: About the new investment in Horus - Management highlighted the opportunity in the Permian Basin, noting its prolific drilling activity and the support from Instar's equity investment [41] Question: Context on deal sourcing for investments - Management confirmed increased activity from club members and improved relationships with smaller banks, leading to more deal flow [42][43] Question: Credit facility and debt capacity - Management is actively discussing options for the credit facility maturing in December and expects to announce new financing soon [48][49] Question: Industry concentrations and management - Management is comfortable with current industry exposure, emphasizing the defensible niche of their investments [56][58] Question: Outlook for PIK income - Management expects PIK income to remain stable in the near term, driven by specific portfolio companies [60][61] Question: Incremental leverage plans - Management anticipates gradual increases in leverage, aiming to maintain a range of 1.0 to 1.5 times [62] Question: Fusion Connect's business plan post-bankruptcy - Management indicated that it would take 6 to 12 months to see momentum from Fusion's restructuring, with a longer timeframe for ultimate value realization [72]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2019 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 COMMISSION FILE NUMBER: 814-01054 INVESTCORP CREDIT MANAGEMENT BDC, INC. (Exact Name of Registrant as Specified in Its Charter) Maryland 46-2883380 (State or other Jurisdiction of Incorp ...

Investcorp Credit Management BDC, Inc. (NASDAQ:ICMB) Q1 2020 Earnings Conference Call November 13, 2019 1:00 PM ET Company Participants Michael Mauer - Chairman & CEO Rocco DelGuercio - CFO Christopher Jansen - Co-Chief Investment Officer Conference Call Participants Paul Johnson - KBW Robert Dodd - Raymond James Christopher Nolan - Ladenburg Thalmann Operator Welcome to Investcorp Credit Management BDC Earnings Conference Call. Your speakers for today's call are Mike Mauer, Chris Jansen and Rocco DelGuerci ...