Board Announces Review of Strategic Alternatives to Maximize Shareholder Value Led by Special Committee of Independent Directors
Company to Host Conference Call April 1(st) to Discuss the Financial Results
NEW YORK--(BUSINESS WIRE)--March 30, 2026--
Investcorp Credit Management BDC, Inc. $(ICMB)$ ("ICMB" or the "Company") announced its financial results today for its fiscal quarter and year ended December 31, 2025 and its Board has commenced a review of strategic alternatives led by a Special Committee of Independent Directors.
The Special Committee will be evaluating a broad range of strategic, financial and business configuration options for the Company. In parallel, the Board has decided to not declare a quarterly dividend for the current quarter ended March 31, 2026.
FINANCIAL HIGHLIGHTS
-- During the quarter, ICMB made a $1.5 million investment in one existing
portfolio company.
-- ICMB fully realized its investments in three portfolio companies during
the quarter, totaling $8.2 million in proceeds. The internal rate of
return on these investments was 10.59%.
-- During the quarter, the Company had net draws of $1.8 million on
delayed draw and revolving credit commitments to portfolio companies.
-- The weighted average yield on debt investments, at fair market value,
as of December 31, 2025, was 10.56%, compared to 10.87% for the quarter
ended September 30, 2025.
-- Net asset value decreased $0.79 per share to $4.25, compared to $5.04
as of September 30, 2025. Net assets decreased by $11.4 million, or
15.65%, during the quarter ended December 31, 2025 compared to September
30, 2025.
-- On March 30, 2026, ICMB refinanced its existing 4.875% Notes with new
unsecured notes provided by an affiliate of its investment adviser with a
floating rate of interest of SOFR plus 5.5% and a maturity of July 1,
2029.
Portfolio results, as of and for the three months ended December 31, 2025:
Total assets $188.8 million
Investment portfolio, at fair value $172.7 million
Net assets $61.3 million
Weighted average yield on debt investments, at fair market
value (1) 10.56%
Net asset value per share $4.25
Portfolio activity in the current quarter:
Number of investments in new portfolio companies 0
Number of portfolio companies invested in 37
Total capital invested in existing portfolio companies (2) $3.9 million
Total proceeds from repayments, sales, and amortization (3) $10.3 million
Net investment income before taxes (NII) $0.3 million
Net investment income before taxes per share $0.02
Net decrease in net assets from operations ($9.4) million
Net decrease in net assets from operations per share ($0.65)
(1) Represents average yield on total debt investments weighted by fair market value as of December 31, 2025. 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 for delayed draw and revolving credit commitments and PIK interest to existing portfolio companies. (3) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies.
Mr. Suhail A. Shaikh, chief executive officer of ICMB, said "We remain focused on actively managing our portfolio and continue to work closely with our portfolio company management teams and private equity sponsors. New deal activity was relatively muted for ICMB during the quarter. We remain disciplined in managing the Company's capital, balancing debt repayment with new investments. Subsequent to the end of the quarter, we refinanced our maturing 4.875% Notes with debt capital from an affiliate of our investment adviser." Mr. Shaikh continued, "As we continue to navigate the current market environment, we believe now is the appropriate time to consider strategic alternatives for the Company that could allow us to more effectively maximize value for our shareholders. As the Board conducts its review, our team will remain focused on executing our strategic priorities."
Mr. Robert Andrew Muns, chief financial officer of ICMB, noted: "Given the current market environment, our priority is disciplined capital allocation, including selective capital deployment and portfolio rotation, consistent with our focus on protecting net asset value, enhancing long-term shareholder value and maintaining adequate liquidity. Our Board's determination to not declare a dividend this quarter and initiate a strategic review is consistent with this priority, which will likely guide its approach with respect to future dividends while taking into account the minimum distribution requirements necessary for us to maintain our regulated investment company tax status."
Portfolio and Investment Activities
During the quarter, the Company made a $1.5 million investment in one existing portfolio company.
The Company received proceeds of $10.3 million from repayments, sales and amortization during the quarter, primarily related to the realization of LABL Term Loan and Advanced Solutions Preferred Stock.
During the quarter, the Company had net draws of $1.8 million on delayed draw and revolving credit commitments to portfolio companies.
The Company's net realized and unrealized losses of approximately $9.5 million, or $0.66 per share. The total net decrease in net assets resulting from operations for the quarter was $9.4 million, or $0.65 per share.
As of December 31, 2025, the Company's investment portfolio consisted of investments in 37 portfolio companies, of which 80.76% were first lien investments and 19.24% were equity, warrants, and other investments. The Company's debt portfolio consisted of 98.0% floating rate investments and 2.0% fixed rate investments.
Capital Resources
As of December 31, 2025, the Company had $15.0 million in cash, of which $10.4 million was restricted cash, and $41.1 million of unused capacity under its revolving credit facility with Capital One, N.A.
Subsequent Events
Subsequent to December 31, 2025 and through March 30, 2026, the Company invested a total of $0.8 million, which included investments in two existing portfolio companies, and received approximately $13.3 million from the sale and repayment of four positions. As of March 30, 2026, the Company had investments in 34 portfolio companies.
On March 29, 2026, the Company entered into a financing arrangement with ICAP, an affiliate of the Adviser, pursuant to which ICAP will provide a $65.0 million unsecured note bearing interest at a floating rate of SOFR plus 5.50% per annum and maturing on July 1, 2029. The proceeds from this financing will be used to repay in full the Company's outstanding 2026 Notes due April 1, 2026. Following this financing arrangement, the Company believes it will remain in compliance with all applicable asset coverage requirements.
The Company announced today that its Board has entered into a formal review process to evaluate strategic alternatives for the Company and the Board has authorized a Special Committee solely comprised of independent directors to lead the process. The Company has not set a timetable for the conclusion of the strategic alternatives review. There can be no assurance that the review will result in a transaction or change the Company's announced strategy. The Company does not intend to comment further regarding the review unless or until it determines that further disclosure is appropriate or necessary.
Earnings Conference Call
The Company will host an earnings conference call at 9:00 am (Eastern Time) on Wednesday, April 1, 2026 to review its financial results and conduct a question-and-answer session. All interested parties may participate in the conference call by dialing (800) 550-9893 5-10 minutes prior to the call; international callers should dial (858) 609-8959. Participants should enter 872058# as the passcode, then press 2 when prompted. For those who are not able to listen to the call, a replay will be available shortly after the call by visiting our website at http://icmbdc.com/earnings-calls/.
Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Assets and Liabilities
-------------------------------------------------------------------------------------
December 31, December 31,
2025 2024 June 30, 2024
------------- ------------- -------------
Assets
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $177,110,265,
$184,154,029, and $189,319,802,
respectively) $ 159,985,717 $ 188,602,029 $ 181,948,376
Affiliated investments, at fair
value (amortized cost of
$13,340,494, $16,351,878, and
$15,149,238, respectively) 12,673,145 3,014,929 2,621,154
------------ ------------ ------------
Total investments, at fair value
(amortized cost of
$190,450,759, $200,505,907, and
$204,469,040, respectively) 172,658,862 191,616,958 184,569,530
Cash and cash equivalents 4,582,403 771,483 158,768
Restricted cash and cash
equivalents 10,416,042 11,333,064 4,950,036
Principal receivable 55,377 720,855 50,609
Interest receivable 808,703 1,576,381 1,301,516
Payment-in-kind interest receivable 190,790 85,399 66,625
Short-term receivable -- 160,901 --
Long-term receivable -- 489,365 631,667
Escrow receivable -- -- 97,173
Prepaid expenses and other assets 124,928 97,324 411,821
------------ ------------ ------------
Total Assets $ 188,837,105 $ 206,851,730 $ 192,237,745
============ ============ ============
Liabilities
Debt:
Revolving credit facility $ 58,900,000 $ 58,500,000 $ 43,000,000
2026 Notes payable 65,000,000 65,000,000 65,000,000
Deferred debt issuance costs (754,121) (1,369,415) (1,654,870)
Unamortized discount (17,778) (88,888) (124,443)
------------ ------------ ------------
Debt, net 123,128,101 122,041,697 106,220,687
Payable for investments purchased -- 1,474,677 7,425,000
Interest payable 1,887,457 1,894,921 1,950,925
Dividend payable -- 1,728,749 --
Base management fees payable 786,986 769,176 816,777
Income-based incentive fees payable 351,571 501,955 128,876
Deferred income liability 440,084 -- --
Directors' fees payable -- 81,323 --
Accrued expenses and other
liabilities 916,894 757,102 685,271
------------ ------------ ------------
Total Liabilities 127,511,093 129,249,600 117,227,536
Commitments and Contingencies (see
Note 6)
Net Assets
Common stock, par value $0.001 per
share (100,000,000 shares
authorized and 14,432,472,
14,406,244, and 14,403,752 shares
issued and outstanding,
respectively) 14,432 14,406 14,404
Additional paid-in capital 203,128,982 203,505,480 203,103,263
Distributable earnings (loss) (141,817,402) (125,917,756) (128,107,458)
------------ ------------ ------------
Total Net Assets 61,326,012 77,602,130 75,010,209
------------ ------------ ------------
Total Liabilities and Net Assets $ 188,837,105 $ 206,851,730 $ 192,237,745
============ ============ ============
Net Asset Value Per Share $ 4.25 $ 5.39 $ 5.21
Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Operations (unaudited)
----------------------------------------------------------------------------------
Twelve Six Months
Months Ended Ended
December December Twelve Months Ended June
31, 31, 30,
------------ ----------- ---------------------------
2025 2024 2024 2023
------------ ----------- ------------ ------------
Investment Income:
Interest income
Non-controlled,
non-affiliated
investments $ 14,562,641 $ 8,680,899 $ 20,271,776 $ 23,822,181
Non-controlled,
affiliated
investments 43,586 3,660 12,451 (20,611)
----------- ---------- ----------- -----------
Total interest
income 14,606,227 8,684,559 20,284,227 23,801,570
Payment in-kind
interest income
Non-controlled,
non-affiliated
investments 874,311 2,329,399 2,028,744 1,250,169
Non-controlled,
affiliated
investments 618,203 42,079 77,680 70,070
----------- ---------- ----------- -----------
Total
payment-in-kind
interest income 1,492,514 2,371,478 2,106,424 1,320,239
Dividend income
Non-controlled,
non-affiliated
investments 81,607 -- 54,138 101,755
Non-controlled,
affiliated
investments -- -- -- --
----------- ---------- ----------- -----------
Total dividend
income 81,607 -- 54,138 101,755
Payment in-kind
dividend income
Non-controlled,
non-affiliated
investments 452,742 432,669 784,854 691,972
Non-controlled,
affiliated
investments -- -- -- --
----------- ---------- ----------- -----------
Total
payment-in-kind
dividend income 452,742 432,669 784,854 691,972
Other fee income
Non-controlled,
non-affiliated
investments 636,626 134,051 648,659 768,617
Non-controlled,
affiliated
investments -- -- -- --
----------- ---------- ----------- -----------
Total other fee
income 636,626 134,051 648,659 768,617
Other income 126,519 -- -- --
----------- ---------- ----------- -----------
Total investment
income 17,396,235 11,622,757 23,878,302 26,684,153
Expenses:
Interest expense 7,605,454 3,752,412 8,606,309 8,413,409
Base management fees 3,465,211 1,671,831 3,800,693 4,201,394
Income-based
incentive fees (150,384) 501,540 (72,942) 401,597
Professional fees 1,210,014 718,289 1,239,122 984,290
Allocation of
administrative costs
from Adviser 978,448 382,064 1,360,194 966,045
Amortization of
deferred debt
issuance costs 615,294 306,004 576,475 693,333
Amortization of
original issue
discount - 2026
Notes 71,110 35,555 71,110 71,110
Insurance expense 497,149 255,536 479,502 506,963
Directors' fees 307,500 175,852 294,907 302,500
Custodian and
administrator fees 294,256 147,986 316,128 292,267
Other expenses 498,948 346,109 713,789 516,160
----------- ---------- ----------- -----------
Total expenses 15,393,000 8,293,178 17,385,287 17,349,068
Waiver of base
management fees (349,320) (131,735) (365,225) (387,311)
Waiver of
income-based
incentive fees -- -- -- --
----------- ---------- ----------- -----------
Net expenses 15,043,680 8,161,443 17,020,062 16,961,757
----------- ---------- ----------- -----------
Net investment
income before
taxes 2,352,555 3,461,314 6,858,240 9,722,396
----------- ---------- ----------- -----------
Income tax
expense,
including excise
tax expense 447,781 315,075 267,150 294,330
----------- ---------- ----------- -----------
Net investment
income after
taxes 1,904,774 3,146,239 6,591,090 9,428,066
----------- ---------- ----------- -----------
Net realized and
unrealized
gain/(loss) on
investments:
Net realized gain
(loss) from
investments
Non-controlled,
non-affiliated
investments (1,849,766) (8,114,711) (7,731,553) (26,890,095)
Non-controlled,
affiliated
investments -- -- (6,239,984) --
----------- ---------- ----------- -----------
Net realized gain
(loss) from
investments (1,849,766) (8,114,711) (13,971,537) (26,890,095)
----------- ---------- ----------- -----------
Net change in
unrealized
appreciation
(depreciation) in
value of
investments
Non-controlled,
non-affiliated
investments (8,706,047) 11,819,426 1,797,807 21,966,347
Non-controlled,
affiliated
investments (196,901) (808,865) 1,490,170 (1,269,815)
----------- ---------- ----------- -----------
Net change in
unrealized
appreciation
(depreciation) on
investments (8,902,948) 11,010,561 3,287,977 20,696,532
----------- ---------- ----------- -----------
Total realized
gain (loss) and
change in
unrealized
appreciation
(depreciation)
on investments (10,752,714) 2,895,850 (10,683,560) (6,193,563)
----------- ---------- ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations $ (8,847,940) $ 6,042,089 $ (4,092,470) $ 3,234,503
=========== ========== =========== ===========
Basic and diluted:
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