Investcorp Credit Management BDC(ICMB) - 2025 Q4 - Annual Results

Highlights ICMB reported a NAV of $5.27 per share, $0.08 million net investment income, and declared a $0.14 per share total distribution Key Financial Metrics | Metric | Value (in millions) | | :--- | :--- | | Total assets | $224.1 million | | Investment portfolio, at fair value | $204.1 million | | Net assets | $76.0 million | | Net asset value per share | $5.27 | | Weighted average yield on debt investments | 10.57% | | Net investment income before taxes (NII) | $0.8 million | | NII per share | $0.06 | | Net decrease in net assets from operations | ($0.4) million | | Net decrease in net assets from operations per share | ($0.03) | | Distributions paid per common share | $0.12 | - The Board of Directors declared a regular quarterly distribution of $0.12 per share and a supplemental distribution of $0.02 per share for the quarter ending September 30, 2025[4] - Net asset value (NAV) per share decreased by $0.15 to $5.27 as of June 30, 2025, compared to $5.42 as of March 31, 2025[4] - During the quarter, ICMB invested $19.0 million and fully realized investments in three portfolio companies, generating an internal rate of return (IRR) of 32.82% on these exits[4] - The weighted average yield on debt investments decreased slightly to 10.57% from 10.95% in the previous quarter[4] Financial and Operational Performance The company declared a $0.14 per share distribution, invested $19.0 million, and maintained a portfolio primarily in first lien and floating rate debt Distributions - The Board declared a distribution of $0.12 per share for the quarter ending September 30, 2025, plus a supplemental distribution of $0.02 per share, both payable on October 9, 2025[7] - This total distribution represents a 20.07% yield on the company's share price as of June 30, 2025 The company does not expect the distribution to be comprised of a return of capital[8] Portfolio and Investment Activities - Invested a total of $19.0 million in one new and four existing portfolio companies during the quarter, with new debt investments made at a weighted average yield of 9.03%[9] - Received $10.0 million in proceeds from repayments, sales, and amortization, primarily from the realization of three investments[10] - Net realized and unrealized losses resulted in a decrease in net investments of approximately $1.0 million, or $0.07 per share[11] - As of June 30, 2025, the portfolio consisted of investments in 43 companies, with 79.23% in first lien investments and 98.50% of the debt portfolio in floating rate investments[12] Capital Resources - As of June 30, 2025, the Company had $17.3 million in cash ($14.4 million restricted) and $29.5 million of unused capacity under its revolving credit facility[13] Subsequent Events and Corporate Actions Post-quarter, the company invested an additional $0.2 million, declared a Q3 2025 distribution, and authorized a new $5 million share repurchase program - Between June 30, 2025, and August 13, 2025, the Company invested an additional $0.2 million in two existing portfolio companies[14] - On August 7, 2025, the Board authorized a new share repurchase program of up to $5 million, effective for one year until August 7, 2026[16] Consolidated Financial Statements The consolidated statements detail total assets of $224.1 million, net assets of $76.0 million, and a net decrease in assets from operations of ($0.4) million Consolidated Statements of Assets and Liabilities Consolidated Assets and Liabilities | (in thousands) | June 30, 2025 (Unaudited) (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | Total investments, at fair value | $204,131 | $191,617 | | Total Assets | $224,065 | $206,852 | | Debt, net | $134,385 | $122,042 | | Total Liabilities | $148,080 | $129,250 | | Total Net Assets | $75,984 | $77,602 | | Net Asset Value Per Share | $5.27 | $5.39 | Consolidated Statements of Operations Consolidated Operations Summary | For the three months ended June 30, | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Total investment income | $4,545,199 | $5,119,319 | | Net expenses | $3,711,141 | $3,864,957 | | Net investment income after taxes | $604,148 | $1,309,102 | | Net realized and unrealized gain/(loss) | ($1,038,446) | ($3,261,248) | | Net increase (decrease) in net assets from operations | ($434,298) | ($1,952,146) | | Earnings per share (Basic and diluted) | ($0.03) | ($0.14) | Company Overview and Disclosures The company is an externally managed BDC focused on middle-market investments, with the report including standard forward-looking statement disclaimers - The Company is an externally managed BDC with an investment objective to maximize total return via current income and capital appreciation from debt and equity investments in middle-market companies[19] - The report contains forward-looking statements that are based on current expectations and are subject to substantial risks and uncertainties, and actual results may differ materially[20][21]