Investcorp Credit Management BDC, Inc. Announces Financial Results for the Fiscal Period Ended December 31, 2024, and Quarterly Distribution
NEW YORK--(BUSINESS WIRE)--March 25, 2025--
Investcorp Credit Management BDC, Inc. $(ICMB)$ ("ICMB" or the "Company") announced its financial results today for its fiscal period ended December 31, 2024.
HIGHLIGHTS
-- On March 20, 2025, the Company's Board of Directors (the "Board")
declared a distribution of $0.12 per share for the quarter ending March
31, 2025, payable in cash on May 16, 2025, to stockholders of record as
of April 25, 2025.
-- During the quarter, ICMB made investments in two new portfolio companies
and two existing portfolio companies. These investments totaled $9.9
million, at cost. The weighted average yield (at origination) of debt
investments made in the quarter was 11.81%.
-- ICMB fully realized its investments in two portfolio companies during the
quarter, totaling $7.6 million in proceeds. The internal rate of return
on these investments was 17.20%.
-- During the quarter, the Company had net repayments of $80,000 on its
existing delayed draw and revolving credit commitments to portfolio
companies.
-- The weighted average yield on debt investments, at fair value, for the
quarter ended December 31, 2024, was 10.36%, compared to 10.51% for the
quarter ended September 30, 2024.
-- Net asset value decreased $0.16 per share to $5.39, compared to $5.55 as
of September 30, 2024. Net assets decreased by $2.3 million, or 2.86%,
during the quarter ended December 31, 2024 compared to September 30,
2024.
Portfolio results, as of and for the three months ended December
31, 2024:
Total assets $206.9mm
Investment portfolio, at fair value $191.6mm
Net assets $77.6mm
Weighted average yield on debt investments, at cost (1) 10.36%
Net asset value per share $5.39
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 43
Total capital invested in existing portfolio companies (2) $4.2mm
Total proceeds from repayments, sales, and amortization (3) $8.7mm
Net investment income (NII) $0.8mm
Net investment income per share $0.06
Net decrease in net assets from operations $(0.6)mm
Net decrease in net assets from operations per share $(0.04)
Distributions paid per common share $0.12
(1) Represents weighted average yield on total debt investments held as of
December 31, 2024. 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 delayed draw and 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, "Amid heightened market volatility, we remain focused on navigating the evolving landscape. Despite these headwinds, we have maintained a rigorous investment approach, prioritizing opportunities that align with our underwriting standards. While refinancing activity has provided some avenues for capital deployment, we continue to take a highly selective stance on new deals. Our priority remains preserving portfolio stability and positioning the company for long-term growth as market conditions evolve.
"I am also pleased to announce that Andrew Muns has been appointed as the Chief Operating Officer of ICMB. Andrew brings a wealth of experience and is a senior member of the Company's Investment Adviser. I look forward to working closely with Andrew to continue to deliver shareholder value."
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 March 20, 2025, the Board declared a distribution for the quarter ended March 31, 2025 of $0.12 per share payable on May 16, 2025 to stockholders of record as of April 25, 2025.
This distribution represents a 15.84% yield on the Company's $3.03 share price as of market close on December 31, 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 December 31, 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 two existing portfolio companies. The aggregate capital invested during the quarter totaled $9.9 million, at cost, and the debt investments were made at a weighted average yield of 11.81%.
The Company received proceeds of $7.6 million from repayments, sales and amortization during the quarter, primarily related to the realization of Amerit Fleet Holdings, LLC.
During the quarter, the Company had net repayments of $80,000 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 $(1.4) million, or $(0.10) per share. The total net decrease in net assets resulting from operations for the quarter was $(0.6) million, or $(0.04) per share.
As of December 31, 2024, the Company's investment portfolio consisted of investments in 43 portfolio companies, of which 81.17% were first lien investments and 18.83% were equity, warrants, and other investments. The Company's debt portfolio consisted of 96.4% floating rate investments and 3.6% fixed rate investments.
Capital Resources
As of December 31, 2024, the Company had $12.1 million in cash, of which $11.3 million was restricted cash, and $41.5 million of unused and available capacity under its revolving credit facility with Capital One, N.A.
Subsequent Events
Subsequent to December 31, 2024 and through March 25, 2025, the Company invested a total of $3.9 million, which included investments in one new portfolio company and two existing portfolio companies, and received approximately $3.5 million from the repayment of two positions. As of March 25, 2025, the Company had investments in 42 portfolio companies.
Other Updates
The Company is pleased to announce that Andrew Muns has been appointed by the Company's Board as the new Chief Operating Officer of the Company, effective March 24, 2025. Mr. Muns currently serves on CM Investment Partners LLC's investment committee. Mr. Muns joined Investcorp in 2019 as part of the acquisition of CM Investment Partners LLC. Previously, he served as a Managing Director at CM Investment Partners LLC and was a joint employee of both CM Investment Partners LLC and Stifel. Mr. Muns co-founded the Credit Investments Group and served as its Head of Credit. He joined Stifel in 2012 from Cantor Fitzgerald, where he was a Managing Director on the Special Situations and Leveraged Loans Desk. Mr. Muns holds an M.B.A. from Columbia Business School and a B.A. in Mathematics from Northwestern University.
Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Assets and Liabilities
-------------------------------------------------------------------------------------
December 31,
2024 June 30, 2024 June 30, 2023
-------------- -------------- ----------------
Assets
Non-controlled, non-affiliated
investments, at fair value
(amortized cost of $184,154,029,
$189,319,802, and $219,319,251,
respectively) $ 188,602,029 $ 181,948,376 $ 210,150,018
Affiliated investments, at fair
value (amortized cost of
$16,351,878, $15,149,238, and
$23,979,565, respectively) 3,014,929 2,621,154 9,961,311
------------ ------------ ------------
Total investments, at fair
value (amortized cost of
$200,505,907, $204,469,040, and
$243,298,816, respectively) 191,616,958 184,569,530 220,111,329
Cash 771,483 158,768 1,093,758
Cash, restricted 11,333,064 4,950,036 8,057,458
Principal receivable 720,855 50,609 93,581
Interest receivable 1,576,381 1,301,516 2,041,877
Payment-in-kind interest receivable 85,399 66,625 46,088
Long-term receivable 489,365 631,667 --
Escrow receivable -- 97,173 --
Short-term receivable 160,901 -- --
Other receivables -- -- 1,050
Prepaid expenses and other assets 97,324 411,821 361,719
------------ ------------ ------------
Total Assets $ 206,851,730 $ 192,237,745 $ 231,806,860
============ ============ ============
Liabilities
Debt:
Revolving credit facility $ 58,500,000 $ 43,000,000 $ 71,900,000
2026 Notes payable 65,000,000 65,000,000 65,000,000
Deferred debt issuance costs (1,369,415) (1,654,870) (1,220,556)
Unamortized discount (88,888) (124,443) (195,553)
------------ ------------ ------------
Debt, net 122,041,697 106,220,687 135,483,891
Payable for investments purchased 1,474,677 7,425,000 1,795,297
Dividend payable 1,728,749 -- 2,590,520
Income-based incentive fees payable 501,955 128,876 576,023
Base management fees payable 769,176 816,777 906,218
Interest payable 1,894,921 1,950,925 2,293,766
Directors' fees payable 81,323 -- 15,755
Accrued expenses and other
liabilities 757,102 685,271 445,082
------------ ------------ ------------
Total Liabilities 129,249,600 117,227,536 144,106,552
Commitments and Contingencies (see
Note 6)
Net Assets
Common stock, par value $0.001 per
share (100,000,000 shares
authorized and 14,406,244,
14,403,752, and 14,391,775 shares
issued and outstanding,
respectively) 14,406 14,404 14,392
Additional paid-in capital 203,505,480 203,103,263 203,327,714
Distributable earnings (loss) (125,917,756) (128,107,458) (115,641,798)
------------ ------------ ------------
Total Net Assets 77,602,130 75,010,209 87,700,308
------------ ------------ ------------
Total Liabilities and Net
Assets $ 206,851,730 $ 192,237,745 $ 231,806,860
============ ============ ============
Net Asset Value Per Share $ 5.39 $ 5.21 $ 6.09
Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Operations
Six Months
Ended December
31, Twelve Months Ended June 30,
--------------- ----------------------------------------------
2024 2024 2023 2022
---------- ----------- ----------- -----------
Investment Income:
Interest income
Non-controlled,
non-affiliated
investments $ 8,680,899 $ 20,271,776 $ 23,822,181 $ 22,641,798
Non-controlled,
affiliated
investments 3,660 12,451 (20,611) 29,813
---------- ----------- ----------- -----------
Total interest
income 8,684,559 20,284,227 23,801,570 22,671,611
Payment in-kind
interest income
Non-controlled,
non-affiliated
investments 2,329,399 2,028,744 1,250,169 102,720
Non-controlled,
affiliated
investments 42,079 77,680 70,070 208,470
---------- ----------- ----------- -----------
Total
payment-in-kind
interest
income 2,371,478 2,106,424 1,320,239 311,190
Dividend income
Non-controlled,
non-affiliated
investments -- 54,138 101,755 --
Non-controlled,
affiliated
investments -- -- -- 296,126
----------- -----------
Total dividend
income -- 54,138 101,755 296,126
Payment in-kind
dividend income
Non-controlled,
non-affiliated
investments 432,669 784,854 691,972 282,952
Non-controlled,
affiliated
investments -- -- -- --
---------- ----------- ----------- -----------
Total
payment-in-kind
dividend
income 432,669 784,854 691,972 282,952
Other fee income
Non-controlled,
non-affiliated
investments 134,051 648,659 768,617 868,727
Non-controlled,
affiliated
investments -- -- -- 759
---------- ----------- ----------- -----------
Total other fee
income 134,051 648,659 768,617 869,486
---------- ----------- ----------- -----------
Total investment
income 11,622,757 23,878,302 26,684,153 24,431,365
Expenses:
Interest expense 3,752,412 8,606,309 8,413,409 6,633,587
Base management fees 1,671,831 3,800,693 4,201,394 4,594,588
Income-based
incentive fees 501,540 (72,942) 401,597 (348,670)
Professional fees 718,289 1,239,122 984,290 1,302,513
Allocation of
administrative
costs from Adviser 382,064 1,360,194 966,045 1,247,205
Amortization of
deferred debt
issuance costs 306,004 576,475 693,333 621,111
Amortization of
original issue
discount - 2026
Notes 35,555 71,110 71,110 71,110
Insurance expense 255,536 479,502 506,963 512,347
Directors' fees 175,852 294,907 302,500 302,500
Custodian and
administrator fees 147,986 316,128 292,267 334,214
Other expenses 346,109 713,789 516,160 446,330
---------- ----------- ----------- -----------
Total expenses 8,293,178 17,385,287 17,349,068 15,716,835
Waiver of base
management fees (131,735) (365,225) (387,311) (480,032)
Waiver of
income-based
incentive fees -- -- -- --
---------- ----------- ----------- -----------
Net expenses 8,161,443 17,020,062 16,961,757 15,236,803
---------- ----------- ----------- -----------
Net investment
income before
taxes 3,461,314 6,858,240 9,722,396 9,194,562
---------- ----------- ----------- -----------
Income tax
expense,
including
excise tax
expense 315,075 267,150 294,330 270,618
---------- ----------- ----------- -----------
Net investment
income after
taxes $ 3,146,239 $ 6,591,090 $ 9,428,066 $ 8,923,944
========== =========== ===========
Net realized and
unrealized
gain/(loss) on
investments:
Net realized gain
(loss) from
investments
Non-controlled,
non-affiliated
investments $(8,114,711) $ (7,731,553) $(26,890,095) $ (6,198,762)
Non-controlled,
affiliated
investments -- (6,239,984) -- (8,196,669)
---------- ----------- ----------- -----------
Net realized gain
(loss) from
investments (8,114,711) (13,971,537) (26,890,095) (14,395,431)
Net change in
unrealized
appreciation
(depreciation) in
value of
investments
Non-controlled,
non-affiliated
investments 11,819,426 1,797,807 21,966,347 2,898,538
Non-controlled,
affiliated
investments (808,865) 1,490,170 (1,269,815) 5,159,579
---------- ----------- ----------- -----------
Net change in
unrealized
appreciation
(depreciation) on
investments 11,010,561 3,287,977 20,696,532 8,058,117
---------- ----------- ----------- -----------
Total realized
gain (loss) and
change in
unrealized
appreciation
(depreciation)
on investments 2,895,850 (10,683,560 ) (6,193,563 ) (6,337,314 )
---------- ----------- ----------- -----------
Net increase
(decrease) in net
assets resulting
from operations $ 6,042,089 $ (4,092,470) $ 3,234,503 $ 2,586,630
---------- ----------- ----------- -----------
Basic and diluted:
Earnings per share $ 0.42 $ (0.28) $ 0.22 $ 0.18
Weighted average
shares of common
stock outstanding 14,404,510 14,396,201 14,389,163 14,304,641
Distributions paid
per common share $ 0.24 $ 0.60 $ 0.63 $ 0.60 -------------------- ---------- ----------- ----------- -----------
About Investcorp Credit Management BDC, Inc.
The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company's investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. The Company's investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com.
Forward-Looking Statements
Statements included in this press release and made on the earnings call for the fiscal period and quarter ended December 31, 2024, may contain "forward-looking statements," which relate to future performance, operating results, events and/or financial condition. Words such as "anticipates," "expects," "intends," "plans," "will," "may," "continue," "believes," "seeks," "estimates," "would," "could," "should," "targets," "projects," and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release or made on the earnings call are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company's control.
Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company's performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the earnings call, is or will be included in the Company's filings with the Securities and Exchange Commission, including in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's Transition Report on Form 10-KT and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250325624176/en/
CONTACT: Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinvestorrelations@investcorp.com
Phone: (646) 690-5047
(END) Dow Jones Newswires
March 25, 2025 20:39 ET (00:39 GMT)
