Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

 


 

FORM 10-Q

 


 

(Mark One)

 

x      QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the quarterly period ended March 31, 2016

 

OR

 

o         TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.

 

For the transition period from          to

 

Commission file number 814-01132

 


 

Crescent Capital BDC, Inc.

(Exact Name of Registrant as Specified in Its Charter)

 


 

Delaware

 

47-3162282

(State or Other Jurisdiction of
Incorporation or Organization)

 

(I.R.S. Employer
Identification No.)

 

 

 

11100 Santa Monica Blvd., Suite 2000, Los Angeles, CA

 

90025

(Address of Principal Executive Offices)

 

(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (310) 235-5900

 

Not applicable

Former Name, Former Address and Former Fiscal Year, If Changed Since Last Report.

 


 

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  o  No  x

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  o  No  o

 

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer  o

 

Accelerated filer  o

 

 

 

Non-Accelerated filer  x

 

Smaller reporting company  o

(Do not check if a smaller reporting company)

 

 

 

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Securities Exchange Act of 1934).  Yes  o  No  x

 

The number of shares of the Registrant’s common stock, $.001 par value per share, outstanding at May 13, 2016 was 4,681,053.

 

 

 



Table of Contents

 

CRESENT CAPITAL BDC, INC.

 

FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2016

 

Table of Contents

 

 

INDEX

 

PAGE
NO.

PART I.

FINANCIAL INFORMATION

 

2

Item 1.

Financial Statements

 

2

 

Consolidated Statements of Assets and Liabilities as of March 31, 2016 (Unaudited) and December 31, 2015

 

2

 

Consolidated Statements of Operations for the three months ended March 31, 2016 (Unaudited) and for the period from February 5, 2015 (Inception) to March 31, 2015 (Unaudited)

 

3

 

Consolidated Statements of Changes in Net Assets for the three months ended March 31, 2016 (Unaudited) and for the period from February 5, 2015 (Inception) to March 31, 2015 (Unaudited)

 

4

 

Consolidated Statements of Cash Flows for the three months ended March 31, 2016 (Unaudited) and for the period from February 5, 2015 (Inception) to March 31, 2015 (Unaudited)

 

5

 

Consolidated Schedule of Investments as of March 31, 2016 (Unaudited)

 

6

 

Consolidated Schedule of Investments as of December 31, 2015 (Unaudited)

 

12

 

Notes to Consolidated Financial Statements (Unaudited)

 

18

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

 

36

Item 3.

Quantitative and Qualitative Disclosures About Market Risk

 

49

Item 4.

Controls and Procedures

 

50

PART II.

OTHER INFORMATION

 

50

Item 1.

Legal Proceedings

 

50

Item 1A.

Risk Factors

 

50

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

 

50

Item 3.

Defaults Upon Senior Securities

 

51

Item 4.

[Reserved]

 

51

Item 5.

Other Information

 

51

Item 6.

Exhibits

 

52

 



Table of Contents

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

This report contains forward-looking statements that involve substantial risks and uncertainties. These forward-looking statements are not historical facts, but rather are based on current expectations, estimates and projections about us, our current or prospective portfolio investments, our industry, our beliefs, and our assumptions. We believe that it is important to communicate our future expectations to our investors. Words such as “anticipates,” “expects,” “intends,” “plans,” “believes,” “seeks,” “estimates,” “would,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. These statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and are difficult to predict, that could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

 

The factors listed under “Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission (the “SEC”) on March 25, 2016, and elsewhere in our filings with the SEC, as well as any cautionary language in this report, provide examples of risks, uncertainties and events that may cause our actual results to differ materially from the expectations we describe in our forward-looking statements. The occurrence of the events described in these risk factors and elsewhere in this report could have a material adverse effect on our business, results of operation and financial position. The following factors are among those that may cause actual results to differ materially from our forward-looking statements:

 

·                  Potential fluctuation in quarterly operating results

·                  Potential impact of economic recessions or downturns

·                  Adverse developments in the credit markets

·                  Operation in a highly competitive market for investment opportunities

·                  Regulations governing our operation as a business development company

·                  Financing investments with borrowed money

·                  Lack of liquidity in investments

·                  Defaults by portfolio companies

·                  Uncertainty as to the value of certain portfolio investments

·                  Potential resignation of the Advisor and or the Administrator

·                  Changes in interest rates may affect our cost of capital and net investment income

·                  Potential adverse effects of price declines and illiquidity in the corporate debt markets

·                  Risks associated with original issue discount (“OID”) and payment-in-kind (“PIK”) interest income

·                  Risks regarding distributions

·                  Potential adverse effects of new or modified laws and regulations

 

Although we believe that the assumptions on which these forward-looking statements are based upon are reasonable, some of those assumptions are based on the work of third parties and any of those assumptions could prove to be inaccurate; as a result, forward-looking statements based on those assumptions also could prove to be inaccurate. In light of these and other uncertainties, the inclusion of a projection or forward-looking statement in this report should not be regarded as a representation by us that our plans and objectives will be achieved. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this report. We do not undertake any obligation to update or revise any forward-looking statements or any other information contained herein, except as required by applicable law. You are advised to consult any additional disclosures that we may make directly to you or through reports that we in the future may file with the SEC, including annual reports on Form 10-K, quarterly reports on Form 10-Q and current reports on Form 8-K. The safe harbor provisions of Section 21E of the 1934 Act, which preclude civil liability for certain forward-looking statements, do not apply to the forward-looking statements in this report because we are an investment company.

 

1



Table of Contents

 

Crescent Capital BDC, Inc.

 

Consolidated Statements of Assets and Liabilities

 

 

 

As of
March 31, 2016
(Unaudited)

 

As of
December 31,
2015

 

Assets

 

 

 

 

 

Investments, non-controlled and non-affiliated, at fair value (cost of $160,495,653 and $141,151,386, respectively)

 

$

157,891,109

 

$

138,068,497

 

Cash and cash equivalents

 

3,130,264

 

4,733,856

 

Cash denominated in foreign currency (cost of $16,439 and $33,915, respectively)

 

16,439

 

33,700

 

Receivable for investments sold

 

2,819

 

 

Interest receivable

 

774,951

 

429,610

 

Deferred financing costs, net

 

1,193,331

 

 

Prepaid expenses and other assets

 

26,904

 

55,373

 

Total assets

 

$

163,035,817

 

$

143,321,036

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Debt (net of deferred financing costs of $107,922 and $218,269, respectively)

 

$

68,048,028

 

$

54,492,581

 

Payable for investments purchased

 

3,168,000

 

9,179,625

 

Distributions payable

 

1,130,001

 

924,998

 

Management fees payable - affiliate

 

357,047

 

336,180

 

Due to Advisor - affiliate

 

46,709

 

46,709

 

Due to Administrator - affiliate

 

122,859

 

183,352

 

Professional fees payable

 

70,888

 

82,500

 

Directors’ fees payable

 

35,083

 

39,583

 

Interest and other debt financing expenses payable

 

133,987

 

106,146

 

Accrued expenses and other liabilities

 

298,198

 

343,124

 

Total liabilities

 

$

73,410,800

 

$

65,734,798

 

 

 

 

 

 

 

Commitments and Contingencies (Note 7)

 

 

 

 

 

 

 

 

 

 

 

Net Assets

 

 

 

 

 

Preferred stock, par value $0.001 per share (10,000 shares authorized, zero outstanding as of March 31, 2016 and December 31, 2015, respectively)

 

$

 

$

 

Common stock, par value $0.001 per share (13,000,000 shares authorized, 4,681,053 and 4,056,316 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively)

 

4,681

 

4,056

 

Paid-in capital in excess of par value

 

92,792,391

 

80,813,231

 

Accumulated net realized loss

 

(499,543

)

(81,821

)

Accumulated distributions in excess of net investment income

 

(222,170

)

(165,426

)

Net unrealized appreciation (depreciation) on investments and foreign currency translation

 

(2,450,342

)

(2,983,802

)

Total Net Assets

 

$

89,625,017

 

$

77,586,238

 

Total Liabilities and Net Assets

 

$

163,035,817

 

$

143,321,036

 

Net asset value per share

 

$

19.15

 

$

19.13

 

 

See accompanying notes.

 

2



Table of Contents

 

Crescent Capital BDC, Inc.

 

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the three
months ended
March 31, 2016

 

For the period
from February 5,
2015 (Inception) to
March 31, 2015(1)

 

Investment Income:

 

 

 

 

 

Interest income from non-controlled and non-affiliated investments

 

$

2,510,128

 

$

 

Total investment income

 

2,510,128

 

 

 

 

 

 

 

 

Expenses:

 

 

 

 

 

Interest and other debt financing expenses

 

454,093

 

 

Management fees (net of $200,556 waived for the three months ended March 31, 2016)

 

357,047

 

 

Directors’ fees

 

66,875

 

 

Professional fees

 

215,000

 

 

Organization expenses

 

19,471

 

 

Other general and administrative expenses

 

323,585

 

 

Total expenses

 

1,436,071

 

 

Net investment income before taxes

 

1,074,057

 

 

Income taxes

 

800

 

 

Net investment income after taxes

 

1,073,257

 

 

 

 

 

 

 

 

Net realized and unrealized gains (losses) on investments:

 

 

 

 

 

Net realized loss on investments

 

(461,027

)

 

Net realized gain on foreign currency transactions

 

43,305

 

 

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation

 

533,460

 

 

Net realized and unrealized gains (losses) on investments

 

115,738

 

 

Net increase in net assets resulting from operations

 

$

1,188,995

 

$

 

 

 

 

 

 

 

Per Common Share Data:

 

 

 

 

 

Net increase in net assets resulting from operations per share (basic and diluted):

 

$

0.28

 

$

 

Net investment income per share (basic and diluted):

 

$

0.25

 

$

 

Weighted average shares outstanding (basic and diluted):

 

4,276,179

 

1,000

 

Distributions declared per share:

 

$

0.24

 

$

 

 


(1)                                 The Company was formed on February 5, 2015 and commenced operations on June 26, 2015.

 

See accompanying notes.

 

3



Table of Contents

 

Crescent Capital BDC, Inc.

 

Consolidated Statements of Changes in Net Assets
(Unaudited)

 

 

 

For the three
months ended
March 31, 2016

 

For the period
from February 5,
2015 (Inception) to
March 31, 2015(1)

 

Increase (decrease) in net assets resulting from operations:

 

 

 

 

 

Net investment income

 

$

1,073,257

 

$

 

Net realized loss on investments and foreign currency transactions

 

(417,722

)

 

Net change in unrealized appreciation (depreciation) on investments and foreign currency translation

 

533,460

 

 

Net increase in net assets resulting from operations

 

1,188,995

 

 

 

 

 

 

 

 

Distributions to shareholders from:

 

 

 

 

 

Net investment income

 

(1,130,001

)

 

Total distributions to shareholders

 

(1,130,001

)

 

 

 

 

 

 

 

Capital transactions:

 

 

 

 

 

Issuance of common stock

 

12,000,000

 

1,000

 

Issuance of common stock pursuant to distribution reinvestment plan

 

7,024

 

 

Equity offering costs

 

(27,239

)

 

Net increase in net assets resulting from capital transactions

 

11,979,785

 

1,000

 

Total increase in net assets

 

12,038,779

 

1,000

 

Net assets at beginning of period

 

77,586,238

 

 

Net assets at end of period

 

$

89,625,017

 

$

1,000

 

Accumulated distributions in excess of net investment income

 

$

(222,170

)

$

 

 

 

 

 

 

 

Changes in Shares

 

 

 

 

 

Common stock, at beginning of period

 

4,056,316

 

 

Issuance of common stock

 

624,383

 

1,000

 

Issuance of common stock pursuant to distribution reinvestment plan

 

354

 

 

Common stock, at end of period

 

4,681,053

 

1,000

 

 


(1)                                 The Company was formed on February 5, 2015 and commenced operations on June 26, 2015.

 

See accompanying notes.

 

4



Table of Contents

 

Crescent Capital BDC, Inc.

 

Consolidated Statements of Cash Flows
(Unaudited)

 

 

 

For the three
months ended
March 31, 2016

 

For the period
from February 5,
2015 (Inception) to
March 31, 2015(1)

 

Cash flows from operating activities:

 

 

 

 

 

Net increase (decrease) in net assets resulting from operations

 

$

1,188,995

 

$

 

 

 

 

 

 

 

Adjustments to reconcile net increase (decrease) in net assets resulting from operations to net cash provided by (used for) operating activities:

 

 

 

 

 

Purchases of investments

 

(22,463,629

)

 

Proceeds from sales of investments and principal repayments

 

2,705,536

 

 

Net realized (gain) loss on investments

 

461,027

 

 

Net change in unrealized (appreciation) depreciation on investments and foreign currency translation

 

(533,460

)

 

Amortization of premium and accretion of discount, net

 

(47,201

)

 

Amortization of deferred financing costs

 

114,723

 

 

Increase (decrease) in operating assets and liabilities:

 

 

 

 

 

(Increase) decrease in receivable for investments sold

 

(2,819

)

 

(Increase) decrease in interest receivable

 

(345,341

)

 

(Increase) decrease in prepaid expenses and other assets

 

28,469

 

 

Increase (decrease) in payable for investments purchased

 

(6,011,625

)

 

Increase (decrease) in management fees payable - affiliate

 

20,867

 

 

Increase (decrease) in due to Administrator - affiliate

 

(60,493

)

 

Increase (decrease) in professional fees payable

 

(11,612

)

 

Increase (decrease) in directors’ fees payable

 

(4,500

)

 

Increase (decrease) in interest and credit facility fees and expenses payable

 

27,841

 

 

Increase (decrease) in accrued expenses and other liabilities

 

(44,926

)

 

Net cash provided by (used for) operating activities

 

(24,978,148

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

Issuance of common stock

 

12,000,000

 

1,000

 

Financing costs paid related to revolving credit facility

 

(1,197,707

)

 

Distributions paid

 

(917,974

)

 

Equity offering costs paid

 

(27,239

)

 

Borrowings on revolving credit facility

 

13,500,000

 

 

Net cash provided by (used for) financing activities

 

23,357,080

 

1,000

 

Effect of exchange rate changes on cash

 

215

 

 

Net increase (decrease) in cash, cash equivalents and foreign currency

 

(1,620,853

)

1,000

 

Cash, cash equivalents and foreign currency, beginning of period

 

4,767,556

 

 

Cash, cash equivalents and foreign currency, end of period

 

$

3,146,703

 

$

1,000

 

 

 

 

 

 

 

Supplemental and non-cash financing activities:

 

 

 

 

 

Cash paid during the period for interest

 

$

302,797

 

$

 

Issuance of common stock pursuant to distribution reinvestment plan

 

$

7,024

 

$

 

Accrued but unpaid offering costs

 

$

27,239

 

$

 

Accrued but unpaid distributions

 

$

1,130,001

 

$

 

 


(1)                                 The Company was formed on February 5, 2015 and commenced operations on June 26, 2015.

 

See accompanying notes.

 

5



Table of Contents

 

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

March 31, 2016

 

 

 

Investment Type

 

Spread
Above
Index *

 

Interest
Rate

 

Maturity
Date

 

Principal/ Par
Amount

 

Cost

 

Percentage
of Net
Assets **

 

Fair
Value

 

Investments(1)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

United States

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Goods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alion Science and Technology Corporation

 

Unsecured Debt

 

 

 

11.00

%

08/2022

 

$

5,000,000

 

$

4,858,994

 

5.6

%

$

5,000,000

 

Brand Energy & Infrastructure Services, Inc.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

11/2020

 

842,272

 

825,771

 

0.9

 

820,512

 

Builders FirstSource, Inc.(3)

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

07/2022

 

174,198

 

172,586

 

0.2

 

173,472

 

Doosan Infracore International, Inc.(3)

 

Senior Secured First Lien

 

L + 350(4)

 

4.50

%

05/2021

 

743,840

 

748,083

 

0.8

 

736,401

 

GYP Holdings III Corp.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

04/2021

 

858,559

 

838,603

 

0.9

 

813,219

 

MB Aerospace Holdings I, Inc.(3)

 

Senior Secured First Lien

 

L + 550(2)

 

6.50

%

12/2022

 

2,992,500

 

2,963,399

 

3.3

 

2,962,575

 

McJunkin Red Man Corporation(3)

 

Senior Secured First Lien

 

L + 375(4)

 

4.75

%

11/2019

 

414,684

 

413,348

 

0.5

 

400,170

 

Pro Mach Group, Inc.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

10/2021

 

744,347

 

749,463

 

0.8

 

730,703

 

Silver II US Holdings, LLC(3)

 

Senior Secured First Lien

 

L + 300(2)

 

4.00

%

12/2019

 

830,597

 

809,383

 

0.8

 

728,155

 

Univar Inc.(3)

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

07/2022

 

746,250

 

749,689

 

0.8

 

737,739

 

 

 

 

 

 

 

 

 

 

 

13,347,246

 

13,129,319

 

14.6

 

13,102,946

 

Commercial & Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

ADMI Corp.

 

Senior Secured First Lien

 

L + 450(2)

 

5.50

%

04/2022

 

992,500

 

1,003,336

 

1.1

 

994,153

 

Advantage Sales & Marketing, Inc.

 

Senior Secured Second Lien

 

L + 650(2)

 

7.50

%

07/2022

 

500,000

 

503,173

 

0.5

 

455,313

 

Advantage Sales & Marketing, Inc.

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

07/2021

 

843,577

 

843,972

 

0.9

 

831,041

 

Asurion LLC

 

Senior Secured Second Lien

 

L + 750(2)

 

8.50

%

03/2021

 

275,000

 

280,040

 

0.3

 

259,188

 

Asurion LLC

 

Senior Secured First Lien

 

L + 375(2)

 

5.00

%

05/2019

 

359,896

 

361,830

 

0.4

 

355,546

 

Asurion LLC

 

Senior Secured First Lien

 

L+ 400(2)

 

5.00

%

08/2022

 

492,500

 

491,844

 

0.6

 

482,960

 

Brickman Group Ltd. LLC

 

Senior Secured Second Lien

 

L + 650(2)

 

7.50

%

12/2021

 

500,000

 

502,293

 

0.5

 

481,875

 

Emerald Expositions Holding, Inc.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

06/2020

 

743,596

 

746,943

 

0.8

 

741,737

 

IMC OP, LP

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

08/2020

 

817,967

 

817,967

 

0.9

 

807,742

 

PowerTeam Services, LLC

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

05/2020

 

992,737

 

990,618

 

1.1

 

977,846

 

Survey Sampling International, LLC(5)

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

12/2020

 

3,200,000

 

3,168,000

 

3.5

 

3,168,000

 

USAGM HoldCo LLC

 

Senior Secured Second Lien

 

L + 850(2)

 

9.50

%

07/2023

 

10,000,000

 

9,622,877

 

10.4

 

9,300,000

 

Valet Waste Holdings, Inc.

 

Senior Secured First Lien

 

L + 700(2)

 

8.00

%

09/2021

 

4,326,087

 

4,264,983

 

4.8

 

4,282,826

 

Valet Waste Holdings, Inc.(6)

 

Senior Secured First Lien

 

 

 

 

 

09/2021

 

217,391

 

208,265

 

0.2

 

210,869

 

Vencore, Inc.

 

Senior Secured First Lien

 

L + 475(2)

 

5.75

%

11/2019

 

497,426

 

498,031

 

0.6

 

495,354

 

William Morris Endeavor Entertainment, LLC

 

Senior Secured Second Lien

 

L + 725(2)

 

8.25

%

05/2022

 

250,000

 

244,250

 

0.3

 

240,000

 

William Morris Endeavor Entertainment, LLC

 

Senior Secured First Lien

 

L + 425(2)

 

5.25

%

05/2021

 

992,424

 

995,820

 

1.1

 

993,670

 

 

 

 

 

 

 

 

 

 

 

26,001,101

 

25,544,242

 

28.0

 

25,078,120

 

Consumer Durables & Apparel

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Varsity Brands, Inc.

 

Senior Secured First Lien

 

L + 400(2)

 

5.00

%

12/2021

 

992,462

 

1,002,118

 

1.1

 

992,050

 

 

See accompanying notes.

 

6



Table of Contents

 

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

March 31, 2016

 

 

 

Investment Type

 

Spread
Above
Index *

 

Interest
Rate

 

Maturity
Date

 

Principal/ Par
Amount

 

Cost

 

Percentage
of Net
Assets **

 

Fair
Value

 

Consumer Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Catapult Learning, LLC

 

Senior Secured First Lien

 

L + 810(2)

 

9.10

%

07/2020

 

$

5,000,000

 

$

4,955,328

 

5.5

%

$

4,973,065

 

Centerplate, Inc.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

11/2019

 

713,097

 

713,097

 

0.7

 

661,397

 

Scientific Games International, Inc.(3)

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

10/2021

 

991,219

 

994,720

 

1.1

 

962,414

 

SkillSoft Corporation

 

Senior Secured First Lien

 

L + 475(7)

 

5.75

%

04/2021

 

992,443

 

974,455

 

0.9

 

800,569

 

Wrench Group, LLC

 

Senior Secured First Lien

 

P + 425(8)

 

7.75

%

03/2022

 

3,888,889

 

3,831,187

 

4.3

 

3,831,330

 

Wrench Group, LLC(6)

 

Senior Secured First Lien

 

 

 

 

 

03/2022

 

1,111,111

 

539,094

 

0.6

 

539,109

 

 

 

 

 

 

 

 

 

 

 

12,696,759

 

12,007,881

 

13.1

 

11,767,884

 

Diversified Financials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Edelman Financial Group, The

 

Senior Secured First Lien

 

L + 550(7)

 

6.50

%

12/2022

 

2,992,500

 

2,934,557

 

3.3

 

2,948,555

 

Energy

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Fairmount Santrol, Inc.(3)

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

09/2019

 

533,045

 

509,218

 

0.3

 

281,847

 

Murray Energy Corporation

 

Senior Secured First Lien

 

L + 650(7)

 

7.50

%

04/2020

 

344,678

 

324,548

 

0.2

 

177,854

 

 

 

 

 

 

 

 

 

 

 

877,723

 

833,766

 

0.5

 

459,701

 

Food & Staples Retailing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Albertsons, LLC

 

Senior Secured First Lien

 

L + 450(4)

 

5.50

%

08/2021

 

992,481

 

998,644

 

1.1

 

995,091

 

BJ’s Wholesale Club, Inc.

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

09/2019

 

843,528

 

846,770

 

0.9

 

822,790

 

BJ’s Wholesale Club, Inc.

 

Senior Secured Second Lien

 

L + 750(2)

 

8.50

%

03/2020

 

250,000

 

252,215

 

0.3

 

231,563

 

 

 

 

 

 

 

 

 

 

 

2,086,009

 

2,097,629

 

2.3

 

2,049,444

 

Food, Beverage & Tobacco

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Seafoods Group LLC

 

Senior Secured Second Lien

 

L + 900(2)

 

10.00

%

02/2022

 

5,000,000

 

4,871,967

 

5.6

 

5,000,000

 

Maple Holdings Acquisition Corp. (Keurig)

 

Senior Secured First Lien

 

L + 450(4)

 

5.25

%

03/2023

 

402,333

 

394,343

 

0.5

 

402,667

 

Shearer’s Foods, Inc.

 

Senior Secured First Lien

 

L + 425(2)

 

5.25

%

06/2021

 

748,125

 

741,069

 

0.8

 

741,579

 

 

 

 

 

 

 

 

 

 

 

6,150,458

 

6,007,379

 

6.9

 

6,144,246

 

Health Care Equipment & Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alere, Inc.(3)

 

Senior Secured First Lien

 

L + 325(4)

 

4.25

%

06/2022

 

786,195

 

791,770

 

0.9

 

782,819

 

CDRH Parent, Inc.

 

Senior Secured First Lien

 

L + 425(2)

 

5.25

%

07/2021

 

371,853

 

374,880

 

0.4

 

343,964

 

Concentra Inc.

 

Senior Secured First Lien

 

L + 300(2)

 

4.00

%

06/2022

 

744,375

 

744,375

 

0.8

 

738,792

 

Connolly Corporation

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

05/2021

 

843,561

 

848,848

 

0.9

 

832,312

 

Heartland Dental, LLC

 

Senior Secured First Lien

 

L + 450(2)

 

5.50

%

12/2018

 

992,462

 

998,031

 

1.1

 

967,651

 

NVA Holdings, Inc.

 

Senior Secured First Lien

 

L + 450(2)

 

5.50

%

08/2021

 

6,000,000

 

5,851,435

 

6.5

 

5,850,000

 

Onex Carestream Finance LP(3)

 

Senior Secured First Lien

 

L + 400(2)

 

5.00

%

06/2019

 

442,805

 

443,336

 

0.5

 

412,362

 

Onex Carestream Finance LP(3)

 

Senior Secured Second Lien

 

L + 850(2)

 

9.50

%

12/2019

 

197,728

 

197,728

 

0.2

 

164,443

 

Zest Holdings, LLC

 

Senior Secured First Lien

 

L + 475(2)

 

5.75

%

08/2020

 

5,000,000

 

4,954,632

 

5.5

 

4,942,500

 

 

 

 

 

 

 

 

 

 

 

15,378,979

 

15,205,035

 

16.8

 

15,034,843

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

AssuredPartners, Inc.

 

Senior Secured First Lien

 

L + 475(4)

 

5.75

%

10/2022

 

748,125

 

745,073

 

0.8

 

745,787

 

Confie Seguros Holding II Co.

 

Senior Secured First Lien

 

L + 450(4)

 

5.75

%

11/2018

 

744,218

 

747,791

 

0.8

 

733,055

 

 

See accompanying notes.

 

7



Table of Contents

 

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

March 31, 2016

 

 

 

Investment Type

 

Spread
Above
Index *

 

Interest
Rate

 

Maturity
Date

 

Principal/ Par
Amount

 

Cost

 

Percentage
of Net
Assets **

 

Fair
Value

 

Edgewood Partners Insurance Center

 

Senior Secured First Lien

 

L + 600(4)

 

7.00

%

03/2023

 

$

3,000,000

 

$

2,940,261

 

3.3

%

$

2,985,000

 

Integro Parent, Inc.

 

Senior Secured First Lien

 

L + 575(2)

 

6.75

%

09/2022

 

498,829

 

489,043

 

0.6

 

481,370

 

Integro Parent, Inc.(6) (9)

 

Senior Secured Second Lien

 

 

 

 

 

10/2023

 

7,596

 

 

 

(9,507

)

Integro Parent, Inc.

 

Senior Secured Second Lien

 

L + 925(2)

 

10.25

%

10/2023

 

2,408,451

 

2,358,850

 

2.6

 

2,300,071

 

 

 

 

 

 

 

 

 

 

 

7,407,219

 

7,281,018

 

8.1

 

7,235,776

 

Materials

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Anchor Glass Container Corporation

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

07/2022

 

944,839

 

948,285

 

1.1

 

943,658

 

Berlin Packaging LLC

 

Senior Secured First Lien

 

L + 350(4)

 

4.50

%

10/2021

 

987,296

 

991,667

 

1.1

 

980,306

 

ECO Services Operations LLC

 

Senior Secured First Lien

 

L + 375(4)

 

4.75

%

12/2021

 

1,002,412

 

1,004,698

 

1.1

 

977,352

 

Emerald Performance Materials, LLC

 

Senior Secured First Lien

 

L + 350(4)

 

4.50

%

08/2021

 

972,958

 

976,869

 

1.1

 

957,391

 

Hilex Poly Co. LLC

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

12/2021

 

994,975

 

1,005,320

 

1.1

 

995,099

 

Ineos US Finance LLC(3)

 

Senior Secured First Lien

 

L + 325(4)

 

4.25

%

03/2022

 

496,239

 

497,367

 

0.5

 

490,348

 

MacDermid, Inc.(3)

 

Senior Secured First Lien

 

L + 450(4)

 

5.50

%

06/2020

 

740,006

 

744,866

 

0.8

 

717,114

 

Reynolds Group Holdings Inc.(3)

 

Senior Secured First Lien

 

L + 350(4)

 

4.50

%

12/2018

 

500,000

 

502,033

 

0.6

 

500,913

 

Royal Holdings, Inc.

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

06/2022

 

843,625

 

846,246

 

0.9

 

820,957

 

SIG Combibloc US Acquisition, Inc.(3)

 

Senior Secured First Lien

 

L + 325(4)

 

4.25

%

03/2022

 

842,368

 

844,365

 

0.9

 

840,987

 

Tank Holding Corp.

 

Senior Secured First Lien

 

L + 425(4)

 

5.25

%

03/2022

 

973,034

 

981,895

 

1.0

 

935,737

 

 

 

 

 

 

 

 

 

 

 

9,297,752

 

9,343,611

 

10.2

 

9,159,862

 

Media

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Acosta Holdco, Inc.

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

09/2021

 

991,798

 

992,753

 

1.1

 

971,431

 

CCO Safari III, LLC(3)

 

Senior Secured First Lien

 

L + 275(4)

 

3.50

%

01/2023

 

325,000

 

324,246

 

0.4

 

325,813

 

iHeartCommunications, Inc.(3)

 

Senior Secured First Lien

 

L + 675(10)

 

7.18

%

01/2019

 

738,673

 

698,590

 

0.6

 

513,991

 

Regal Cinemas Corporation(3)

 

Senior Secured First Lien

 

L + 300(4)

 

3.75

%

04/2022

 

843,625

 

847,846

 

0.9

 

846,552

 

Rentpath, Inc.(3)

 

Senior Secured First Lien

 

L + 525(4)

 

6.25

%

12/2021

 

992,462

 

1,001,554

 

0.9

 

817,541

 

Tribune Media Company(3)

 

Senior Secured First Lien

 

L + 300(2)

 

3.75

%

12/2020

 

496,250

 

498,496

 

0.6

 

495,218

 

WideOpenWest Finance LLC

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

04/2019

 

843,609

 

846,016

 

0.9

 

836,489

 

 

 

 

 

 

 

 

 

 

 

5,231,417

 

5,209,501

 

5.4

 

4,807,035

 

Pharmaceuticals, Biotechnology & Life Sciences

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Catalent Pharma Solutions Inc.(3)

 

Senior Secured First Lien

 

L + 325(4)

 

4.25

%

05/2021

 

843,562

 

849,263

 

1.0

 

844,498

 

Jaguar Holding Company II

 

Senior Secured First Lien

 

L + 325(2)

 

4.25

%

08/2022

 

744,375

 

741,775

 

0.8

 

739,455

 

Medpace Holdings, Inc.

 

Senior Secured First Lien

 

L + 375(4)

 

4.75

%

04/2021

 

753,409

 

756,153

 

0.8

 

750,584

 

Ortho-Clinical Diagnostics, Inc.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

06/2021

 

845,707

 

836,125

 

0.9

 

786,507

 

Synarc - Biocare Holdings LLC

 

Senior Secured First Lien

 

 

 

7.75

%

03/2021

 

15,500,000

 

15,143,430

 

17.3

 

15,500,000

 

 

 

 

 

 

 

 

 

 

 

18,687,053

 

18,326,746

 

20.8

 

18,621,044

 

Real Estate

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Automotive L.P.(3)

 

Senior Secured Second Lien

 

L + 500(4)

 

6.00

%

04/2020

 

500,000

 

508,693

 

0.6

 

500,625

 

 

See accompanying notes.

 

8



Table of Contents

 

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

March 31, 2016

 

 

 

Investment Type

 

Spread
Above
Index *

 

Interest
Rate

 

Maturity
Date

 

Principal/ Par
Amount

 

Cost

 

Percentage
of Net
Assets **

 

Fair
Value

 

DTZ U.S. Borrower, LLC(3)

 

Senior Secured Second Lien

 

L + 825(2)

 

9.25

%

11/2022

 

$

5,000,000

 

$

4,926,899

 

5.5

%

$

4,975,000

 

 

 

 

 

 

 

 

 

 

 

5,500,000

 

5,435,592

 

6.1

 

5,475,625

 

Retailing

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Academy, Ltd.

 

Senior Secured First Lien

 

L+ 400(2)

 

5.00

%

07/2022

 

937,705

 

942,792

 

1.0

 

896,826

 

Dollar Tree, Inc.(3)

 

Senior Secured First Lien

 

L + 275(4)

 

3.50

%

07/2022

 

691,970

 

695,074

 

0.8

 

695,429

 

J.C. Penney Corporation, Inc.(3)

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

05/2018

 

907,856

 

908,202

 

1.0

 

911,261

 

Midas Intermediate Holdco II, LLC

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

08/2021

 

992,443

 

1,000,089

 

1.1

 

988,722

 

Petco Animal Supplies, Inc.

 

Senior Secured First Lien

 

L + 475(2)

 

5.75

%

01/2023

 

166,667

 

163,538

 

0.2

 

166,772

 

PetSmart, Inc.(2)

 

Senior Secured First Lien

 

L + 325

 

4.25

%

03/2022

 

843,625

 

846,013

 

0.9

 

841,410

 

 

 

 

 

 

 

 

 

 

 

4,540,266

 

4,555,708

 

5.0

 

4,500,420

 

Software & Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Compuware Corporation

 

Senior Secured First Lien

 

L + 525(2)

 

6.25

%

12/2021

 

991,219

 

974,829

 

1.1

 

951,882

 

Epicor Software Corporation

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

06/2022

 

992,500

 

994,223

 

1.0

 

942,880

 

First Data Corporation

 

Senior Secured First Lien

 

L + 400(10)

 

4.43

%

03/2021

 

1,000,000

 

1,004,459

 

1.1

 

998,985

 

Informatica Corporation(3)

 

Senior Secured First Lien

 

L + 350(2)

 

4.50

%

08/2022

 

845,750

 

846,905

 

0.9

 

832,007

 

Magic Newco LLC(3)

 

Senior Secured First Lien

 

L + 400(2)

 

5.00

%

12/2018

 

992,297

 

995,314

 

1.1

 

994,158

 

Mediaocean LLC

 

Senior Secured First Lien

 

L + 475(4)

 

5.75

%

08/2022

 

5,771,000

 

5,714,413

 

6.4

 

5,731,324

 

Merrill Communications, LLC

 

Senior Secured First Lien

 

L + 525(2)

 

6.25

%

06/2022

 

994,020

 

997,443

 

0.9

 

810,126

 

SS&C Technologies Inc.(3)

 

Senior Secured First Lien

 

L + 325(2)

 

4.00

%

07/2022

 

270,579

 

270,110

 

0.3

 

271,446

 

The Active Network, Inc.

 

Senior Secured First Lien

 

L + 450(7)

 

5.50

%

11/2020

 

1,000,335

 

994,745

 

1.1

 

954,695

 

Tibco Software Inc.

 

Senior Secured First Lien

 

L + 550(4)

 

6.50

%

12/2020

 

402,664

 

403,583

 

0.4

 

363,405

 

Wall Street Systems Delaware, Inc.(3)

 

Senior Secured First Lien

 

L + 325(2)

 

4.50

%

04/2021

 

441,558

 

444,559

 

0.5

 

438,523

 

WP Mustang Holdings LLC

 

Senior Secured First Lien

 

L + 450(2)

 

5.50

%

05/2021

 

992,424

 

995,800

 

1.1

 

981,671

 

 

 

 

 

 

 

 

 

 

 

14,694,347

 

14,636,383

 

15.9

 

14,271,102

 

Technology Hardware & Equipment

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dell International LLC

 

Senior Secured First Lien

 

L + 325(2)

 

4.00

%

04/2020

 

744,997

 

745,270

 

0.8

 

745,395

 

Riverbed Technology, Inc.

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

04/2022

 

992,481

 

1,006,694

 

1.1

 

996,163

 

Sophia, L.P.

 

Senior Secured First Lien

 

L + 375(2)

 

4.75

%

09/2022

 

746,250

 

745,704

 

0.8

 

736,456

 

Zebra Technologies Corporation(3)

 

Senior Secured First Lien

 

L + 400(2)

 

4.75

%

10/2021

 

944,444

 

958,502

 

1.1

 

951,254

 

 

 

 

 

 

 

 

 

 

 

3,428,172

 

3,456,170

 

3.8

 

3,429,268

 

Telecommunication Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Birch Communications, Inc.

 

Senior Secured First Lien

 

L + 675(2)

 

7.75

%

07/2020

 

990,708

 

995,121

 

1.0

 

866,869

 

Level 3 Financing Inc.(3)

 

Senior Secured First Lien

 

L + 300(2)

 

4.00

%

01/2020

 

500,000

 

501,618

 

0.6

 

502,033

 

U.S. Telepacific Corporation

 

Senior Secured First Lien

 

L + 500(2)

 

6.00

%

11/2020

 

992,462

 

994,686

 

1.0

 

947,628

 

 

 

 

 

 

 

 

 

 

 

2,483,170

 

2,491,425

 

2.6

 

2,316,530

 

Transportation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

American Airlines, Inc.(3)

 

Senior Secured First Lien

 

L + 275(2)

 

3.50

%

10/2021

 

495,000

 

496,669

 

0.6

 

494,567

 

Kenan Advantage Group, Inc.(6) (9)

 

Senior Secured First Lien

 

 

 

 

 

01/2017

 

 

145

 

 

(662

)

 

See accompanying notes.

 

9



Table of Contents

 

CRESCENT CAPITAL BDC, INC.

Consolidated Schedule of Investments (Unaudited)

March 31, 2016

 

 

 

Investment Type

 

Spread
Above
Index *

 

Interest
Rate

 

Maturity
Date

 

Principal/ Par
Amount

 

Cost

 

Percentage
of Net
Assets **

 

Fair
Value

 

Kenan Advantage Group, Inc.

 

Senior Secured First Lien

 

L + 300(4)

 

4.00

%

07/2022

 

$

746,780

 

$

748,938

 

0.8

%

$

740,555

 

 

 

 

 

 

 

 

 

 

 

1,241,779

 

1,245,752

 

1.4

 

1,234,460

 

Utilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Panda Sherman Power, LLC

 

Senior Secured First Lien

 

L + 750(2)

 

9.00

%

09/2018

 

991,199

 

985,132

 

0.9

 

857,387

 

TPF II Power, LLC

 

Senior Secured First Lien

 

L + 450(2)

 

5.50

%

10/2021

 

988,044

 

994,263

 

1.1

 

968,901

 

 

 

 

 

 

 

 

 

 

 

1,979,243

 

1,979,395

 

2.0

 

1,826,288

 

Total Debt Investments United States

 

 

 

 

 

 

 

 

 

$

155,013,657

 

$

152,723,227

 

167.9

%

$

150,455,199

 

Equity Investments

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Goods

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Alion Science and Technology Corporation(11)

 

Common Stock

 

 

 

 

 

 

 

535,714

 

535,714

 

0.6

 

535,714

 

Commercial & Professional Services

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Universal Services Equity Investments(11)

 

Common Stock

 

 

 

 

 

 

 

1,000,000

 

1,000,000

 

1.1

 

1,000,000

 

Insurance

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Integro Equity(11)

 

Common Stock

 

 

 

 

 

 

 

4,225

 

422,535

 

0.5

 

422,535

 

Total Equity Investments United States

 

 

 

 

 

 

 

 

 

$

1,539,939

 

$

1,958,249

 

2.2

%

$

1,958,249

 

Total United States

 

 

 

 

 

 

 

 

 

 

 

$

154,681,476

 

170.1

%

$

152,413,448

 

Cayman Islands