Crescent Capital BDC(US:CCAP)2026-02-25 21:51Dividend 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].