NEW
YORK, Nov. 13, 2023 /PRNewswire/ -- Investcorp
Credit Management BDC, Inc. (NASDAQ: ICMB) ("ICMB" or the
"Company") announced its financial results today for its fiscal
first quarter ended September 30,
2023.
HIGHLIGHTS
- On November 9, 2023, the
Company's Board of Directors (the "Board") declared a distribution
of $0.12 per share for the quarter
ending December 31, 2023, payable in
cash on January 8, 2024, to
stockholders of record as of December 14,
2023 and a supplemental distribution of $0.03 per share, payable on January 8, 2024, to stockholders of record as of
December 14, 2023.
- During the quarter, ICMB made investments in four new
portfolio companies and one existing portfolio company. These
investments totaled $15.5 million, at
cost. The weighted average yield (at origination) of debt
investments made in the quarter was 12.27%.
- ICMB fully realized one portfolio company during the
quarter, totaling $6.86 million in
proceeds. The internal rate of return on this investment was
16.40%.
- During the quarter, the Company had net advances of
$0.7 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 September 30, 2023,
was 11.01%, compared to 12.45% for the quarter ended June 30, 2023.
- Net asset value decreased $0.26 per share to $5.83, compared to $6.09 as of June 30,
2023. Net assets decreased by $3.8
million, or 4.4%, during the quarter ended September 30, 2023 compared to June 30, 2023.
Portfolio results, as of and for the three months ended
September 30, 2023:
|
Total assets
|
$239.8mm
|
|
Investment portfolio,
at fair value
|
$223.4mm
|
|
Net
assets
|
$83.9mm
|
|
Weighted average yield
on debt investments, at cost (1)
|
11.01 %
|
|
Net asset value per
share
|
$5.83
|
|
Portfolio activity in
the current quarter:
|
|
|
Number of new
investments
|
4
|
|
Number of portfolio
companies, end of period
|
40
|
|
Total capital
invested
|
$15.5mm
|
|
Proceeds from
repayments, sales, and amortization
|
$10.3mm
|
|
Net investment income
(NII)
|
$1.6mm
|
|
Net investment income
per share
|
$0.11
|
|
Net decrease in net
assets from operations
|
$(1.7)mm
|
|
Net decrease in net
assets from operations per share
|
$(0.12)
|
|
Quarterly per share
distribution paid on September 30, 2023
|
$0.15
|
|
|
(1) Represents weighted
average yield on total debt investments for the three months ended
September 30, 2023. 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.
|
Mr. Michael C. Mauer, the
Company's Chief Executive Officer, said "The flow of investment
opportunities is showing signs of improving as we head into 2024.
This flow, combined with turnover in the current portfolio, is
creating the opportunity to increase diversification over the next
several quarters."
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 November 9, 2023, the Board
declared a distribution for the quarter ended December 31, 2023 of $0.12 per share payable on January 8, 2024 to stockholders of record as of
December 14, 2023 and a supplemental
distribution of $0.03 per share,
payable on January 8, 2024, to
stockholders of record as of December 14,
2023.
This distribution represents a 15.03 % yield on the Company's
$3.99 share price as of market close
on September 29, 2023. 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 September 30, 2023, 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 four new
portfolio companies and one existing portfolio company. The
aggregate capital invested during the quarter totaled $15.5 million, at cost, and the debt investments
were made at a weighted average yield of 12.27%.
The Company received proceeds of $10.3
million from repayments, sales and amortization during the
quarter, primarily related to the realization of Fusion Connect,
Inc. – 2022 Term Loan.
During the quarter, the Company had net advances of $0.7 million on its existing and new delayed draw
and revolving credit commitment 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 $3.3 million, or
$0.23 per share. The total net
decrease in net assets resulting from operations for the quarter
was $1.7 million, or $(0.12) per share.
As of September 30, 2023, the
Company's investment portfolio consisted of investments in 40
portfolio companies, of which 89.67% were first lien investments
and 10.33% were equity, warrants, and other investments. The
Company's debt portfolio consisted of 99.7% floating rate
investments and 0.3% fixed rate investments.
Capital Resources
As of September 30, 2023, the
Company had $14.3 million in cash, of
which $14.2 million was restricted
cash, and $28.8 million of unused and
available capacity under its revolving credit facility with Capital
One, N.A.
Subsequent Events
Subsequent to September 30, 2023
and through November 13, 2023, the
Company invested a total of $10.6
million, which included investments in three new portfolio
companies. As of November 10, 2023,
the Company had investments in 41 portfolio companies.
|
Investcorp Credit
Management BDC, Inc. and Subsidiaries
Consolidated
Statements of Assets and Liabilities
|
|
|
|
|
|
September 30,
2023
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
June 30,
2023
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments, at fair value (amortized cost of
$225,962,819 and $219,319,251,
respectively)
|
|
$
|
|
214,626,088
|
|
|
$
|
|
210,150,018
|
|
|
Affiliated investments,
at fair value (amortized cost of $23,940,980 and
$23,979,565, respectively)
|
|
|
|
8,778,195
|
|
|
|
|
9,961,311
|
|
|
Total investments, at
fair value (amortized cost of $249,903,799 and $243,298,816,
respectively)
|
|
|
|
223,404,283
|
|
|
|
|
220,111,329
|
|
|
Cash
|
|
|
|
90,773
|
|
|
|
|
1,093,758
|
|
|
Cash,
restricted
|
|
|
|
14,204,127
|
|
|
|
|
8,057,458
|
|
|
Principal
receivable
|
|
|
|
191,298
|
|
|
|
|
93,581
|
|
|
Interest
receivable
|
|
|
|
1,615,135
|
|
|
|
|
2,041,877
|
|
|
Payment-in-kind
interest receivable
|
|
|
|
25,738
|
|
|
|
|
46,088
|
|
|
Other
receivables
|
|
|
|
1,050
|
|
|
|
|
1,050
|
|
|
Prepaid expenses and
other assets
|
|
|
|
225,456
|
|
|
|
|
361,719
|
|
|
Total
Assets
|
|
$
|
|
239,757,860
|
|
|
$
|
|
231,806,860
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
Notes
payable:
|
|
|
|
|
|
|
|
|
|
Revolving credit
facility
|
|
$
|
|
69,000,000
|
|
|
$
|
|
71,900,000
|
|
|
2026 Notes
payable
|
|
|
|
65,000,000
|
|
|
|
|
65,000,000
|
|
|
Deferred debt issuance
costs
|
|
|
|
(1,047,222)
|
|
|
|
|
(1,220,556)
|
|
|
Unamortized
discount
|
|
|
|
(177,775)
|
|
|
|
|
(195,553)
|
|
|
Notes payable,
net
|
|
|
|
132,775,003
|
|
|
|
|
135,483,891
|
|
|
Payable for investments
purchased
|
|
|
|
14,841,875
|
|
|
|
|
1,795,297
|
|
|
Dividend
payable
|
|
|
|
2,158,926
|
|
|
|
|
2,590,520
|
|
|
Income-based incentive
fees payable
|
|
|
|
576,023
|
|
|
|
|
576,023
|
|
|
Base management fees
payable
|
|
|
|
1,798,508
|
|
|
|
|
906,218
|
|
|
Interest
payable
|
|
|
|
3,007,074
|
|
|
|
|
2,293,766
|
|
|
Directors' fees
payable
|
|
|
|
5,130
|
|
|
|
|
15,755
|
|
|
Accrued expenses and
other liabilities
|
|
|
|
734,504
|
|
|
|
|
445,082
|
|
|
Total
Liabilities
|
|
|
|
155,897,043
|
|
|
|
|
144,106,552
|
|
|
Net
Assets
|
|
|
|
|
|
|
|
|
|
Common stock, par value
$0.001 per share (100,000,000 shares authorized 14,392,841
and 14,391,775 shares issued and outstanding,
respectively)
|
|
|
|
14,393
|
|
|
|
|
14,392
|
|
|
Additional paid-in
capital
|
|
|
|
203,331,510
|
|
|
|
|
203,327,714
|
|
|
Distributable earnings
(loss)
|
|
|
|
(119,485,086)
|
|
|
|
|
(115,641,798)
|
|
|
Total Net
Assets
|
|
|
|
83,860,817
|
|
|
|
|
87,700,308
|
|
|
Total Liabilities
and Net Assets
|
|
$
|
|
239,757,860
|
|
|
$
|
|
231,806,860
|
|
|
Net Asset Value Per
Share
|
|
$
|
|
5.83
|
|
|
$
|
|
6.09
|
|
|
Investcorp Credit
Management BDC, Inc. and Subsidiaries
Consolidated
Statements of Operations (Unaudited)
|
|
|
|
|
|
For the three months
ended September 30,
|
|
|
|
2023
|
|
|
2022
|
|
|
Investment
Income:
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
$
|
|
5,465,288
|
|
|
$
|
|
5,609,112
|
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
(20,611)
|
|
|
Total interest
income
|
|
|
|
5,465,288
|
|
|
|
|
5,588,501
|
|
|
Payment in-kind
interest income
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
81,381
|
|
|
|
|
164,734
|
|
|
Affiliated
investments
|
|
|
|
18,800
|
|
|
|
|
17,004
|
|
|
Total
payment-in-kind interest income
|
|
|
|
100,181
|
|
|
|
|
181,738
|
|
|
Dividend
income
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Total dividend
income
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Payment in-kind
dividend income
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
188,251
|
|
|
|
|
166,449
|
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Total
payment-in-kind dividend income
|
|
|
|
188,251
|
|
|
|
|
166,449
|
|
|
Other fee
income
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
143,986
|
|
|
|
|
361,850
|
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Total other fee
income
|
|
|
|
143,986
|
|
|
|
|
361,850
|
|
|
Total investment
income
|
|
|
|
5,897,706
|
|
|
|
|
6,298,538
|
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
2,215,183
|
|
|
|
|
1,792,008
|
|
|
Base management
fees
|
|
|
|
978,919
|
|
|
|
|
1,103,981
|
|
|
Income-based incentive
fees
|
|
|
|
—
|
|
|
|
|
(147,145)
|
|
|
Provision for tax
expense
|
|
|
|
100,747
|
|
|
|
|
44,330
|
|
|
Professional
fees
|
|
|
|
227,407
|
|
|
|
|
271,781
|
|
|
Allocation of
administrative costs from Adviser
|
|
|
|
263,375
|
|
|
|
|
375,900
|
|
|
Amortization of
deferred debt issuance costs
|
|
|
|
173,333
|
|
|
|
|
173,333
|
|
|
Amortization of
original issue discount - 2026 Notes
|
|
|
|
17,777
|
|
|
|
|
17,777
|
|
|
Insurance
expense
|
|
|
|
112,984
|
|
|
|
|
137,821
|
|
|
Directors'
fees
|
|
|
|
73,375
|
|
|
|
|
75,625
|
|
|
Custodian and
administrator fees
|
|
|
|
69,292
|
|
|
|
|
71,688
|
|
|
Other
expenses
|
|
|
|
124,277
|
|
|
|
|
139,481
|
|
|
Total
expenses
|
|
|
|
4,356,669
|
|
|
|
|
4,056,580
|
|
|
Waiver of base
management fees
|
|
|
|
(86,630)
|
|
|
|
|
(94,146)
|
|
|
Waiver of income-based
incentive fees
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net
expenses
|
|
|
|
4,270,039
|
|
|
|
|
3,962,434
|
|
|
Net investment
income
|
|
|
|
1,627,667
|
|
|
|
|
2,336,104
|
|
|
Net realized and
unrealized gain/(loss) on investments:
|
|
|
|
|
|
|
|
|
|
Net realized gain
(loss) from investments
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net realized gain
(loss) from investments
|
|
|
|
—
|
|
|
|
|
—
|
|
|
Net change in
unrealized appreciation (depreciation) in value of
investments
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
(2,167,498)
|
|
|
|
|
(464,275)
|
|
|
Affiliated
investments
|
|
|
|
(1,144,531)
|
|
|
|
|
(214,322)
|
|
|
Net change in
unrealized appreciation (depreciation) on investments
|
|
|
|
(3,312,029)
|
|
|
|
|
(678,597)
|
|
|
Total realized gain
(loss) and change in unrealized appreciation (depreciation) on
investments
|
|
|
|
(3,312,029)
|
|
|
|
|
(678,597)
|
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
|
(1,684,362)
|
|
|
$
|
|
1,657,507
|
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
|
|
Net investment income
per share
|
|
$
|
|
0.11
|
|
|
$
|
|
0.16
|
|
|
Earnings per
share
|
|
$
|
|
(0.12)
|
|
|
$
|
|
0.12
|
|
|
Weighted average shares
of common stock outstanding
|
|
|
|
14,392,714
|
|
|
|
|
14,386,809
|
|
|
Distributions paid
per common share
|
|
$
|
|
0.15
|
|
|
$
|
|
0.15
|
|
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 quarter ended September 30, 2023, 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 Annual Report on Form 10-K 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.
Contacts
Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinvestorrelations@investcorp.com
Phone:(646) 690-5034
View original
content:https://www.prnewswire.com/news-releases/investcorp-credit-management-bdc-inc-announces-financial-results-for-the-quarter-ended-september-30-2023-and-quarterly-and-supplemental-distribution-301986535.html
SOURCE Investcorp Credit Management BDC