Crescent Capital BDC(US:CCAP)2025-05-14 20:06Investment Performance - As of March 31, 2025, the total investments at fair value amounted to $1,620.7 million, an increase from $1,598.9 million as of December 31, 2024[339]. - The company made new investments totaling $104.7 million for the three months ended March 31, 2025, compared to $73.9 million for the same period in 2024, representing an increase of 41.0%[340]. - The number of portfolio companies increased to 191 as of March 31, 2025, up from 185 as of December 31, 2024[340]. - The company reported a net increase in the portfolio of $26.7 million for the three months ended March 31, 2025, compared to a net decrease of $24.5 million for the same period in 2024[340]. Debt and Financing - The percentage of debt bearing a floating rate (at fair value) was 97.2% as of March 31, 2025, slightly down from 97.3% as of December 31, 2024[340]. - Total debt as of March 31, 2025, is $1,221.6 million, with a carrying amount of $911.6 million[367]. - The combined weighted average interest rate for borrowings was 6.49% for the three months ended March 31, 2025, down from 6.97% in the same period of 2024[369]. - The weighted average outstanding balance of borrowings was $902.4 million for the three months ended March 31, 2025, compared to $858.6 million in 2024[384]. - The interest expense for borrowings was $13.7 million for the three months ended March 31, 2025, down from $14.7 million in 2024[384]. Income and Expenses - Total investment income decreased from $50.4 million in Q1 2024 to $42.1 million in Q1 2025, primarily due to a decline in benchmark rates[348][349]. - Net investment income for Q1 2025 was $16.6 million, down from $23.4 million in Q1 2024, reflecting lower investment income earned[360]. - Total net expenses, including taxes, decreased from $27.0 million in Q1 2024 to $25.5 million in Q1 2025[348]. - The company reported net realized and unrealized losses of $12.7 million in Q1 2025, compared to gains of $4.3 million in Q1 2024[361]. - Dividend income fell from $3.3 million in Q1 2024 to $1.5 million in Q1 2025, attributed to lower income from an investment[350]. Compliance and Regulations - The company is required to invest at least 70% of its assets in qualifying assets as per the 1940 Act, ensuring compliance with regulatory requirements[327]. - The use of leverage is permitted to maintain an asset coverage ratio of at least 150% after borrowing, which could impact returns to stockholders[337]. - The company was in compliance with asset coverage requirements and financial covenants as of March 31, 2025[366]. - The asset coverage ratio as of March 31, 2025, was 179%, compared to 183% as of December 31, 2024[386]. Cash and Liquidity - As of March 31, 2025, the company had $30.5 million in cash and cash equivalents and $310.0 million of undrawn capacity on credit facilities[365]. - The company expects to generate additional liquidity from future offerings of securities and cash flows from operations[364]. - Unfunded commitments to provide funds to portfolio companies totaled $212.4 million as of March 31, 2025, slightly down from $212.5 million at the end of 2024[387]. Interest Rate and Currency Risk - The annualized impact of a 100 basis point increase in interest rates would result in a net interest income of $9.6 million, while a 100 basis point decrease would lead to a net interest income loss of $9.6 million[394]. - The company may utilize hedging instruments such as interest rate swaps, futures, options, and forward contracts to manage interest rate fluctuations[398]. - The company regularly assesses its exposure to interest rate risk by comparing interest rate-sensitive assets to liabilities[392]. - The analysis of interest rate sensitivity does not account for changes in credit market conditions or the composition of the asset portfolio, which may affect net income[397]. - The company may employ hedging techniques to minimize currency risk, but effectiveness cannot be guaranteed[399]. - Interest rate-sensitive assets and liabilities are monitored on an ongoing basis to determine the necessity of hedging transactions[392]. - The company acknowledges that future hedging transactions may limit participation in benefits from lower interest rates[398].