Crescent Capital BDC, Inc. Reports Second Quarter 2020 Financial Results; Declares a Third Quarter 2020 Regular Dividend of $0.41 per Share
The increase in net asset value for the second quarter was primarily driven by unrealized gains from the impact of credit spreads tightening relative to the end of the first quarter.
Declaration of Regular Dividend for Third Quarter 2020
The Company announced that its Board of Directors has declared a third quarter 2020 dividend of
Selected Financial Highlights
($ in millions, except per share amounts. Unaudited.)
As of | ||||||||||||
Investments, at fair value | $ | 895.2 | $ | 883.2 | $ | 624.9 | ||||||
Total assets | $ | 926.3 | $ | 909.9 | $ | 637.2 | ||||||
Total net assets | $ | 510.3 | $ | 465.8 | $ | 320.8 | ||||||
Net asset value per share | $ | 18.12 | $ | 16.52 | $ | 19.75 | ||||||
Weighted average yield on income producing securities (at cost)1 | 7.9 | % | 7.9 | % | 8.4 | % | ||||||
Percentage of debt investments at floating rates | 96.9 | % | 96.0 | % | 96.1 | % | ||||||
(1) Yield excludes investments on non-accrual status. |
Three Months Ended | ||||||||||||||||
Total Amount | Per Share | Total Amount | Per Share | |||||||||||||
Total investment income | $ | 19.3 | $ | 0.69 | $ | 18.8 | $ | 0.72 | ||||||||
Net investment income | $ | 13.0 | $ | 0.46 | $ | 11.6 | $ | 0.44 | ||||||||
Net realized gains (losses) | $ | (1.1 | ) | $ | (0.04 | ) | $ | (0.1 | ) | $ | (0.00 | ) | ||||
Net unrealized gains (losses), net of taxes | $ | 44.5 | $ | 1.59 | $ | (82.2 | ) | $ | (3.14 | ) | ||||||
Realized loss on asset acquisition | n/a | n/a | $ | (3.8 | ) | $ | (0.14 | ) | ||||||||
Net increase (decrease) in net assets resulting from operations | $ | 56.4 | $ | 2.00 | $ | (74.5 | ) | $ | (2.84 | ) | ||||||
Dividend distributions per share | $ | 0.41 | $ | 0.41 |
Portfolio & Investing Activity
As of
As of | ||||||||||||||
$ in millions | ||||||||||||||
Investment Type | Fair Value | Percentage | Fair Value | Percentage | ||||||||||
Senior secured first lien | $ | 361.7 | 40.4 | % | $ | 387.2 | 43.8 | % | ||||||
Unitranche first lien | 307.2 | 34.3 | % | 294.2 | 33.3 | % | ||||||||
Unitranche first lien - last out | 14.4 | 1.6 | % | 14.6 | 1.6 | % | ||||||||
Senior secured second lien | 106.7 | 11.9 | % | 102.9 | 11.7 | % | ||||||||
Unsecured debt | 8.7 | 1.0 | % | 8.6 | 1.0 | % | ||||||||
Equity & other | 45.0 | 5.0 | % | 31.8 | 3.6 | % | ||||||||
LLC/LP equity interests | 51.5 | 5.8 | % | 43.9 | 5.0 | % | ||||||||
Total investments | $ | 895.2 | 100.0 | % | $ | 883.2 | 100.0 | % | ||||||
For the three months ended
For the three months ended
Results of Operations for the Three Months Ended
Investment income increased to
Total net expenses, including income and excise taxes, decreased to
Liquidity and Capital Resources
As of
The Company’s debt to equity ratio was 0.78x as of
On
Conference Call
The Company will host a webcast/conference call on
All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC’s website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing one of the following numbers:
Domestic: (855) 982-6679
International: (614) 999-9468
Conference ID: 8443979
All callers will need to enter the Conference ID followed by the # sign and reference "Crescent BDC" once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.
About Crescent BDC
Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of
About
Contact:
daniel.mcmahon@crescentcap.com
212-364-0149
Forward-Looking Statements
This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC’s future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as “trend,” “potential,” “opportunity,” “pipeline,” “believe,” “comfortable,” “expect,” “anticipate,” “current,” “intention,” “estimate,” “position,” “assume,” “outlook,” “continue,” “remain,” “maintain,” “sustain,” “seek,” “achieve,” and similar expressions, or future or conditional verbs such as “will,” “would,” “should,” “could,” “may” or similar expressions.
Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.
In addition to factors previously disclosed in Crescent BDC’s
Crescent BDC’s Annual Report on Form 10-K for the year ended
Other Information
The information in this press release is summary information only and should be read in conjunction with Crescent BDC’s annual report on Form 10-K for the year ended
Consolidated Statements of Assets and Liabilities
(in thousands except share and per share data)
As of | As of | |||||||
(Unaudited) | 2019 | |||||||
Assets | ||||||||
Investments, at fair value | ||||||||
Non-controlled non-affiliated (cost of |
$ | 821,831 | $ | 671,582 | ||||
Non-controlled affiliated (cost of |
42,890 | 20,507 | ||||||
Controlled (cost of |
30,513 | 34,442 | ||||||
Cash and cash equivalents | 3,514 | 4,576 | ||||||
Restricted cash and cash equivalents | 8,043 | 8,851 | ||||||
Receivable for investments sold | 11,393 | 160 | ||||||
Interest receivable | 3,980 | 2,832 | ||||||
Unrealized appreciation on foreign currency forward contracts | 2,672 | 758 | ||||||
Deferred tax assets | 762 | 421 | ||||||
Other assets | 712 | 3,046 | ||||||
Total assets | $ | 926,310 | $ | 747,175 | ||||
Liabilities | ||||||||
Debt (net of deferred financing costs of |
$ | 395,829 | $ | 322,010 | ||||
Distributions payable | 11,548 | 8,554 | ||||||
Interest and other debt financing costs payable | 3,345 | 3,545 | ||||||
Accrued expenses and other liabilities | 2,553 | 3,788 | ||||||
Management fees payable | 1,660 | 1,343 | ||||||
Deferred tax liabilities | 959 | 879 | ||||||
Directors’ fees payable | 110 | 74 | ||||||
Unrealized depreciation on foreign currency forward contracts | 8 | 65 | ||||||
Total liabilities | $ | 416,012 | $ | 340,258 | ||||
Net Assets | ||||||||
Preferred stock, par value |
$ | — | $ | — | ||||
Common stock, par value |
28 | 21 | ||||||
Paid-in capital in excess of par value | 558,913 | 414,293 | ||||||
Accumulated loss | (48,643 | ) | (7,397 | ) | ||||
Total Net Assets | $ | 510,298 | $ | 406,917 | ||||
Total Liabilities and Net Assets | $ | 926,310 | $ | 747,175 | ||||
Net asset value per share | $ | 18.12 | $ | 19.50 | ||||
Consolidated Statements of Operations
(in thousands except share and per share data)
(Unaudited)
For the three months ended | For the six months ended | |||||||||||||||
2020 | 2019 | 2020 | 2019 | |||||||||||||
Investment Income: | ||||||||||||||||
From non-controlled non-affiliated investments: | ||||||||||||||||
Interest income | $ | 15,689 | $ | 10,523 | $ | 32,292 | $ | 20,875 | ||||||||
Paid-in-kind interest | 697 | 172 | 1,246 | 337 | ||||||||||||
Dividend income | 712 | 508 | 1,604 | 931 | ||||||||||||
Other income | 620 | 500 | 1,060 | 744 | ||||||||||||
From non-controlled affiliated investments: | ||||||||||||||||
Interest income | 328 | 265 | 671 | 537 | ||||||||||||
Paid-in-kind interest | 481 | — | 485 | — | ||||||||||||
From controlled investments: | ||||||||||||||||
Dividend income | 800 | 550 | 800 | 550 | ||||||||||||
Total investment income | 19,327 | 12,518 | 38,158 | 23,974 | ||||||||||||
Expenses: | ||||||||||||||||
Interest and other debt financing costs | 3,631 | 3,173 | 7,980 | 5,982 | ||||||||||||
Management fees | 2,767 | 2,160 | 5,418 | 4,050 | ||||||||||||
Incentive fees | 2,267 | 1,107 | 4,199 | 2,131 | ||||||||||||
Professional fees | 364 | 192 | 706 | 384 | ||||||||||||
Directors' fees | 110 | 72 | 239 | 145 | ||||||||||||
Organization expenses | — | 49 | — | 91 | ||||||||||||
Other general and administrative expenses | 495 | 537 | 1,221 | 1,058 | ||||||||||||
Total expenses | 9,634 | 7,290 | 19,763 | 13,841 | ||||||||||||
Management fee waiver | (1,107 | ) | (1,044 | ) | (2,264 | ) | (1,947 | ) | ||||||||
Incentive fee waiver | (2,267 | ) | (1,107 | ) | (4,199 | ) | (2,131 | ) | ||||||||
Net expenses | 6,260 | 5,139 | 13,300 | 9,763 | ||||||||||||
Net investment income before taxes | 13,067 | 7,379 | 24,858 | 14,211 | ||||||||||||
Income and excise taxes | 111 | 3 | 349 | 6 | ||||||||||||
Net investment income | 12,956 | 7,376 | 24,509 | 14,205 | ||||||||||||
Net realized and unrealized gains (losses) on investments: | ||||||||||||||||
Net realized gain/(loss) on: | ||||||||||||||||
Non-controlled non-affiliated investments | (1,136 | ) | (660 | ) | (1,023 | ) | (921 | ) | ||||||||
Foreign currency transactions | 76 | 476 | (161 | ) | 489 | |||||||||||
Net change in unrealized appreciation (depreciation) on: | ||||||||||||||||
Non-controlled non-affiliated investments and foreign currency translation | 25,140 | 1,434 | (39,300 | ) | 3,894 | |||||||||||
Non-controlled affiliated investments | 11,878 | 80 | 8,367 | 616 | ||||||||||||
Controlled investments | 7,914 | (472 | ) | (8,929 | ) | (713 | ) | |||||||||
Foreign currency forward contracts | (218 | ) | 309 | 1,972 | 282 | |||||||||||
Net realized and unrealized gains (losses) on investments | 43,654 | 1,167 | (39,074 | ) | 3,647 | |||||||||||
Realized loss on asset acquisition | — | — | (3,825 | ) | — | |||||||||||
Net realized and unrealized gains (losses) on investments and asset acquisition | 43,654 | 1,167 | (42,899 | ) | 3,647 | |||||||||||
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments | (193 | ) | (31 | ) | 262 | (480 | ) | |||||||||
Net increase (decrease) in net assets resulting from operations | $ | 56,417 | 8,512 | $ | (18,128 | ) | 17,372 | |||||||||
Per Common Share Data: | ||||||||||||||||
Net increase (decrease) in net assets resulting from operations per share (basic and diluted): | $ | 2.00 | 0.54 | $ | (0.67 | ) | 1.15 | |||||||||
Net investment income per share (basic and diluted): | $ | 0.46 | 0.47 | $ | 0.90 | 0.94 | ||||||||||
Weighted average shares outstanding (basic and diluted): | 28,168,643 | 15,703,473 | 27,190,817 | 15,087,362 | ||||||||||||
Source: Crescent Capital BDC