Investcorp Credit Management BDC, Inc. $(ICMB)$ ("ICMB" or the "Company") announced its financial results today for its fourth quarter and fiscal year ended June 30, 2024.
HIGHLIGHTS
-- On September 18, 2024, the Company's Board of Directors (the "Board")
declared a distribution of $0.12 per share for the quarter ending
September 30, 2024, payable in cash on November 6, 2024, to stockholders
of record as of October 16, 2024.
-- During the quarter, ICMB made investments in two new portfolio companies
and three existing portfolio companies. These investments totaled $17.9
million, at cost. The weighted average yield (at origination) of debt
investments made in the quarter was 10.23%.
-- ICMB fully realized its investments in three portfolio companies during
the quarter, totaling $22.1 million in proceeds. The internal rate of
return on these investments was 11.27%.
-- During the quarter, the Company had net repayments of $0.41 million on
its existing delayed draw and revolving credit commitments to portfolio
companies.
-- The weighted average yield on debt investments, at cost, for the quarter
ended June 30, 2024, was 12.33%, compared to 12.36% for the quarter ended
March 31, 2024.
-- Net asset value decreased $0.28 per share to $5.21, compared to $5.49 as
of March 31, 2024. Net assets decreased by $4.1 million, or 5.17%, during
the quarter ended June 30, 2024 compared to March 31, 2024.
Portfolio results, as of and for the three months ended June 30, 2024:
Total assets $192.2mm Investment portfolio, at fair value $184.6mm Net assets $75.01mm Weighted average yield on debt investments, at cost (1) 12.33% Net asset value per share $5.21 Portfolio activity in the current quarter: Number of investments in new portfolio companies during the period 2 Number of portfolio companies invested in, end of period 41 Total capital invested in existing portfolio companies (2) $8.5mm Total proceeds from repayments, sales, and amortization (3) $23.5mm Net investment income (NII) $1.3mm Net investment income per share $0.09 Net decrease in net assets from operations $(2.5)mm Net decrease in net assets from operations per share $(0.17) Quarterly per share distribution paid on June 30, 2024 $0.15 (1) Represents weighted average yield on total debt investments for the three months ended June 30, 2024. Weighted average yield on total debt investments is the annualized rate of interest income recognized during the period divided by the average amortized cost of debt investments in the portfolio during the period. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company's stockholders. (2) Includes gross advances to existing revolving credit commitments to portfolio companies and PIK interest (3) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies
Mr. Suhail A. Shaikh said "During the quarter, we navigated a persistently challenging market environment characterized by subdued new deal activity and heightened competition for high-quality assets. Despite these headwinds, we remained disciplined in our investment approach, focusing on opportunities that align with our rigorous underwriting standards. While refinancing activity provided some avenues for capital deployment, we are maintaining a highly selective stance on new deals. Our priority continues to be preserving the stability of our portfolio and positioning the company for long-term growth as market conditions evolve."
The Company's dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Board, by additional dividends as determined to be available by the Company's net investment income and performance during the quarter.
On September 18, 2024, the Board declared a distribution for the quarter ended September 30, 2024 of $0.12 per share payable on November 6, 2024 to stockholders of record as of October 16, 2024.
This distribution represents a 14.29% yield on the Company's $3.36 share price as of market close on June 28, 2024. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the dividend for the quarter ending June 30, 2024, to be comprised of a return of capital. The Company's investment adviser monitors available taxable earnings, including net investment income and realized capital gains, to determine if a return of capital may occur for the year. The Company estimates the source of its distributions as required by Section 19(a) of the Investment Company Act of 1940 to determine whether payment of dividends are expected to be paid from any other source other than net investment income accrued for the current period or certain cumulative periods, but the Company will not be able to determine whether any specific distribution will be treated as taxable earnings or as a return of capital until after at the end of the taxable year.
Portfolio and Investment Activities
During the quarter, the Company made investments in two new portfolio companies and three existing portfolio companies. The aggregate capital invested during the quarter totaled $17.9 million, at cost, and the debt investments were made at a weighted average yield of 10.23%.
The Company received proceeds of $23.5 million from repayments, sales and amortization during the quarter, primarily related to the realization of Empire Office Inc., Northstar Group Services, Inc., and Potpourri Group, Inc.
During the quarter, the Company had net repayments of $0.4 million on its existing delayed draw and revolving credit commitments to portfolio companies.
The Company's net realized, and unrealized gains and losses accounted for a decrease in the Company's net investments of approximately $3.8 million, or $0.26 per share. The total net decrease in net assets resulting from operations for the quarter was $(2.5) million, or $(0.17) per share.
As of June 30, 2024, the Company's investment portfolio consisted of investments in 41 portfolio companies, of which 85.02% were first lien investments and 14.98% were equity, warrants, and other investments. The Company's debt portfolio consisted of 97.4% floating rate investments and 2.6% fixed rate investments.
Capital Resources
As of June 30, 2024, the Company had $5.1 million in cash, of which $4.95 million was restricted cash, and $57.0 million of unused and available capacity under its revolving credit facility with Capital One, N.A.
Subsequent Events
Subsequent to June 30, 2024 and through September 25, 2024, the Company invested a total of $12.9 million, which included investments in three new portfolio companies and two existing portfolio companies. As of September 25, 2024, the Company had investments in 44 portfolio companies.
Investcorp Credit Management
BDC, Inc. and Subsidiaries
Consolidated Statements of
Assets and Liabilities
------------------------------ ------------ ------------
June 30, 2024 June 30, 2023
-------------- ----------------
Assets
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of
$189,319,802 and
$219,319,251, respectively) $ 181,948,376 $ 210,150,018
Affiliated investments, at
fair value (amortized cost of
$15,149,238 and $23,979,565,
respectively) 2,621,154 9,961,311
------------ ------------
Total investments, at fair
value (amortized cost of
$204,469,040 and
$243,298,816,
respectively) 184,569,530 220,111,329
Cash 158,768 1,093,758
Cash, restricted 4,950,036 8,057,458
Principal receivable 50,609 93,581
Interest receivable 1,301,516 2,041,877
Payment-in-kind interest
receivable 66,625 46,088
Long-term receivable 631,667 --
Escrow receivable 97,173 --
Other receivables -- 1,050
Prepaid expenses and other
assets 411,821 361,719
------------ ------------
Total Assets $ 192,237,745 $ 231,806,860
============ ============
Liabilities
Notes payable:
Revolving credit facility $ 43,000,000 $ 71,900,000
2026 Notes payable 65,000,000 65,000,000
Deferred debt issuance
costs (1,654,870) (1,220,556)
Unamortized discount (124,443) (195,553)
------------ ------------
Notes payable, net 106,220,687 135,483,891
Payable for investments
purchased 7,425,000 1,795,297
Dividend payable -- 2,590,520
Income-based incentive fees
payable 128,876 576,023
Base management fees payable 816,777 906,218
Interest payable 1,950,925 2,293,766
Directors' fees payable -- 15,755
Accrued expenses and other
liabilities 685,271 445,082
------------ ------------
(MORE TO FOLLOW) Dow Jones Newswires
September 25, 2024 17:55 ET (21:55 GMT)
Comments