NEW
YORK, Sept. 18, 2023 /PRNewswire/ -- Investcorp
Credit Management BDC, Inc. (NASDAQ: ICMB) ("ICMB" or the
"Company") announced its financial results today for its fiscal
fourth quarter ended June 30,
2023.
HIGHLIGHTS
- On September 14, 2023, the
Company's Board of Directors (the "Board") declared a distribution
of $0.12 per share for the quarter
ending September 30, 2023, payable in
cash on November 2, 2023, to
stockholders of record as of October 12,
2023 and a supplemental distribution of $0.03 per share, payable on November 2, 2023, to stockholders of record as of
October 12, 2023.
- During the quarter, ICMB made investments in two new
portfolio companies and two existing portfolio companies. These
investments totaled $15.1 million, at
cost. The weighted average yield (at origination) of debt
investments made in the quarter was 15.5%.
- ICMB fully realized one portfolio company during the
quarter, totaling $8.66 million in
proceeds. The internal rate of return on this investment was
9.77%.
- During the quarter, the Company had net advances of
$0.9 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, 2023, was
12.45%, compared to 13.36% for the quarter ended March 31, 2023.
- Net asset value decreased $0.04 per share to $6.09, compared to $6.13 as of March 31,
2023. Net assets decreased by $0.5
million, or 0.6%, during the quarter ended June 30, 2023 compared to March 31, 2023.
Portfolio results, as of and for the three months ended
June 30, 2023:
Total assets
|
$231.8mm
|
Investment portfolio,
at fair value
|
$220.1mm
|
Net
assets
|
$87.7mm
|
Weighted average yield
on debt investments, at cost (1)
|
12.45 %
|
Net asset value per
share
|
$6.09
|
Portfolio activity in
the current quarter:
|
|
Number of new
investments
|
2
|
Total capital
invested
|
$15.1mm
|
Proceeds from
repayments, sales, and amortization
|
$8.7mm
|
Number of portfolio
companies, end of period
|
36
|
Net investment income
(NII)
|
$2.2mm
|
Net investment income
per share
|
$0.15
|
Net increase in net
assets from operations
|
$2.1mm
|
Net increase in net
assets from operations per share
|
$0.14
|
Quarterly per share
distribution paid on June 30, 2023
|
$0.18
|
|
(1) Represents weighted
average yield on total debt investments for the three months ended
June 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 "We continue to focus on
managing the portfolio in this inflationary environment;
specifically focusing on the diversity of our investments, reducing
average position sizes, and working with borrowers and sponsors
where covenant or liquidity issues exist. Our expectation is that
well-capitalized companies with strong sponsor backing will
continue to outperform over the coming 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 September 14, 2023, the Board
declared a distribution for the quarter ended September 30, 2023 of $0.12 per share payable on November 2, 2023 to stockholders of record as of
October 12, 2023 and a supplemental
distribution of $0.03 per share,
payable on November 2, 2023, to
stockholders of record as of October 12,
2023.
This distribution represents a 16.57% yield on the Company's
$3.62 share price as of market close
on June 30, 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 June 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 two new
portfolio companies and two existing portfolio companies. The
aggregate capital invested during the quarter totaled $15.1 million, at cost, and the debt investments
were made at a weighted average yield of 15.48%.
The Company received proceeds of $8.7
million from repayments, sales and amortization during the
quarter, primarily related to the realization of Altern
Marketing, LLC.
During the quarter, the Company had net advances of $0.9 million on its existing and new 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 $131,000, or
$0.01 per share. The total net
increase in net assets resulting from operations for the quarter
was $2.1 million, or $0.14 per share.
As of June 30, 2023, the Company's
investment portfolio consisted of investments in 36 portfolio
companies, of which 89.21% were first lien investments and 10.79%
were equity, warrants, and other investments. The Company's debt
portfolio consisted of 99.6% floating rate investments and 0.4%
fixed rate investments.
Capital Resources
As of June 30, 2023, the Company
had $9.2 million in cash, of which
$8.1 million was restricted cash, and
$28.1 million of unused capacity
under its revolving credit facility with Capital One, N.A.
Subsequent Events
Subsequent to June 30, 2023 and
through September 15, 2023, the
Company invested a total of $4.1
million, which included investments in one new portfolio
company and one existing portfolio company. As of September 15, 2023, the Company had investments
in 37 portfolio companies.
Investcorp Credit Management BDC, Inc.
and Subsidiaries
Consolidated
Statements of Assets and Liabilities
|
|
|
|
June 30,
2023
|
|
|
June 30,
2022
|
|
Assets
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments, at fair value (amortized cost of
$219,319,251 and $254,172,763,
respectively)
|
|
$
|
|
210,150,018
|
|
|
$
|
|
223,037,183
|
|
Affiliated investments,
at fair value (amortized cost of $23,979,565 and
$23,395,242, respectively)
|
|
|
|
9,961,311
|
|
|
|
|
10,646,803
|
|
Total investments, at
fair value (amortized cost of $243,298,816 and $277,568,005,
respectively)
|
|
|
|
220,111,329
|
|
|
|
|
233,683,986
|
|
Cash
|
|
|
|
1,093,758
|
|
|
|
|
2,550,021
|
|
Cash,
restricted
|
|
|
|
8,057,458
|
|
|
|
|
6,605,056
|
|
Principal
receivable
|
|
|
|
93,581
|
|
|
|
|
835,043
|
|
Interest
receivable
|
|
|
|
2,041,877
|
|
|
|
|
2,298,443
|
|
Payment-in-kind
interest receivable
|
|
|
|
46,088
|
|
|
|
|
2,137
|
|
Other
receivables
|
|
|
|
1,050
|
|
|
|
|
—
|
|
Prepaid expenses and
other assets
|
|
|
|
361,719
|
|
|
|
|
410,401
|
|
Total
Assets
|
|
$
|
|
231,806,860
|
|
|
$
|
|
246,385,087
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Notes
payable:
|
|
|
|
|
|
|
|
|
Revolving credit
facility
|
|
$
|
|
71,900,000
|
|
|
$
|
|
84,000,000
|
|
2026 Notes
payable
|
|
|
|
65,000,000
|
|
|
|
|
65,000,000
|
|
Deferred debt issuance
costs
|
|
|
|
(1,220,556)
|
|
|
|
|
(1,913,889)
|
|
Unamortized
discount
|
|
|
|
(195,553)
|
|
|
|
|
(266,663)
|
|
Notes payable,
net
|
|
|
|
135,483,891
|
|
|
|
|
146,819,448
|
|
Payable for investments
purchased
|
|
|
|
1,795,297
|
|
|
|
|
246,984
|
|
Dividend
payable
|
|
|
|
2,590,520
|
|
|
|
|
2,157,872
|
|
Income-based incentive
fees payable
|
|
|
|
576,023
|
|
|
|
|
182,095
|
|
Base management fees
payable
|
|
|
|
906,218
|
|
|
|
|
1,054,063
|
|
Interest
payable
|
|
|
|
2,293,766
|
|
|
|
|
1,574,356
|
|
Directors' fees
payable
|
|
|
|
15,755
|
|
|
|
|
20,780
|
|
Accrued expenses and
other liabilities
|
|
|
|
445,082
|
|
|
|
|
820,097
|
|
Total
Liabilities
|
|
|
|
144,106,552
|
|
|
|
|
152,875,695
|
|
Net
Assets
|
|
|
|
|
|
|
|
|
Common stock, par value
$0.001 per share (100,000,000 shares authorized 14,391,775
and 14,385,810 shares issued and outstanding,
respectively)
|
|
|
|
14,392
|
|
|
|
|
14,386
|
|
Additional paid-in
capital
|
|
|
|
203,327,714
|
|
|
|
|
203,590,126
|
|
Distributable earnings
(loss)
|
|
|
|
(115,641,798)
|
|
|
|
|
(110,095,120)
|
|
Total Net
Assets
|
|
|
|
87,700,308
|
|
|
|
|
93,509,392
|
|
Total Liabilities
and Net Assets
|
|
$
|
|
231,806,860
|
|
|
$
|
|
246,385,087
|
|
Net Asset Value Per
Share
|
|
$
|
|
6.09
|
|
|
$
|
|
6.50
|
|
Investcorp Credit Management BDC, Inc.
and Subsidiaries
Consolidated
Statements of Operations
|
|
|
|
For the Years Ended
June 30,
|
|
|
|
2023
|
|
|
|
2022
|
|
|
2021
|
|
Investment
Income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
$
|
|
23,822,181
|
|
|
|
$
|
|
22,641,798
|
|
|
$
|
|
22,716,304
|
|
Affiliated
investments
|
|
|
|
(20,611)
|
|
|
|
|
|
29,813
|
|
|
|
|
97,293
|
|
Total interest
income
|
|
|
|
23,801,570
|
|
|
|
|
|
22,671,611
|
|
|
|
|
22,813,597
|
|
Payment in-kind
interest income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
1,250,169
|
|
|
|
|
|
102,720
|
|
|
|
|
2,334,246
|
|
Affiliated
investments
|
|
|
|
70,070
|
|
|
|
|
|
208,470
|
|
|
|
|
155,780
|
|
Total
payment-in-kind interest income
|
|
|
|
1,320,239
|
|
|
|
|
|
311,190
|
|
|
|
|
2,490,026
|
|
Dividend
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
101,755
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
|
296,126
|
|
|
|
|
—
|
|
Total dividend
income
|
|
|
|
101,755
|
|
|
|
|
|
296,126
|
|
|
|
|
—
|
|
Payment in-kind
dividend income
|
|
|
|
|
|
-
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
691,972
|
|
|
|
|
|
282,952
|
|
|
|
|
—
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Total
payment-in-kind dividend income
|
|
|
|
691,972
|
|
|
|
|
|
282,952
|
|
|
|
|
—
|
|
Other fee
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
768,617
|
|
|
|
|
|
868,727
|
|
|
|
|
1,383,850
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
|
759
|
|
|
|
|
1,502
|
|
Total other fee
income
|
|
|
|
768,617
|
|
|
|
|
|
869,486
|
|
|
|
|
1,385,352
|
|
Total investment
income
|
|
|
|
26,684,153
|
|
|
|
|
|
24,431,365
|
|
|
|
|
26,688,975
|
|
Expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
|
|
8,413,409
|
|
|
|
|
|
6,633,587
|
|
|
|
|
7,359,079
|
|
Base management
fees
|
|
|
|
4,201,394
|
|
|
|
|
|
4,594,588
|
|
|
|
|
4,716,233
|
|
Income-based incentive
fees
|
|
|
|
401,597
|
|
|
|
|
|
(348,670)
|
|
|
|
|
-
|
|
Provision for tax
expense
|
|
|
|
294,330
|
|
|
|
|
|
270,618
|
|
|
|
|
268,992
|
|
Professional
fees
|
|
|
|
984,290
|
|
|
|
|
|
1,302,513
|
|
|
|
|
1,514,186
|
|
Allocation of
administrative costs from Adviser
|
|
|
|
966,045
|
|
|
|
|
|
1,247,205
|
|
|
|
|
1,397,069
|
|
Amortization of
deferred debt issuance costs
|
|
|
|
693,333
|
|
|
|
|
|
621,111
|
|
|
|
|
1,107,497
|
|
Amortization of
original issue discount - 2026 Notes
|
|
|
|
71,110
|
|
|
|
|
|
71,110
|
|
|
|
|
17,777
|
|
Insurance
expense
|
|
|
|
506,963
|
|
|
|
|
|
512,347
|
|
|
|
|
454,324
|
|
Directors'
fees
|
|
|
|
302,500
|
|
|
|
|
|
302,500
|
|
|
|
|
312,500
|
|
Custodian and
administrator fees
|
|
|
|
292,267
|
|
|
|
|
|
334,214
|
|
|
|
|
333,168
|
|
Other
expenses
|
|
|
|
516,160
|
|
|
|
|
|
446,330
|
|
|
|
|
473,385
|
|
Total
expenses
|
|
|
|
17,643,398
|
|
|
|
|
|
15,987,453
|
|
|
|
|
17,954,210
|
|
Waiver of base
management fees
|
|
|
|
(387,311)
|
|
|
|
|
|
(480,032)
|
|
|
|
|
(366,951)
|
|
Waiver of income-based
incentive fees
|
|
|
|
—
|
|
|
|
|
|
—
|
|
|
|
|
—
|
|
Net
expenses
|
|
|
|
17,256,087
|
|
|
|
|
|
15,507,421
|
|
|
|
|
17,587,259
|
|
Net investment
income
|
|
|
|
9,428,066
|
|
|
|
|
|
8,923,944
|
|
|
|
|
9,101,716
|
|
Net realized and
unrealized gain/(loss) on investments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gain
(loss) from investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
(26,890,095)
|
|
|
|
|
|
(6,198,762)
|
|
|
|
|
(5,776,334)
|
|
Affiliated
investments
|
|
|
|
—
|
|
|
|
|
|
(8,196,669)
|
|
|
|
|
—
|
|
Net realized gain
(loss) from investments
|
|
|
|
(26,890,095)
|
|
|
|
|
|
(14,395,431)
|
|
|
|
|
(5,776,334)
|
|
Net change in
unrealized appreciation (depreciation) in value of
investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlled,
non-affiliated investments
|
|
|
|
21,966,347
|
|
|
|
|
|
2,898,538
|
|
|
|
|
525,501
|
|
Affiliated
investments
|
|
|
|
(1,269,815)
|
|
|
|
|
|
5,159,579
|
|
|
|
|
(6,164,708)
|
|
Net change in
unrealized appreciation (depreciation) on investments
|
|
|
|
20,696,532
|
|
|
|
|
|
8,058,117
|
|
|
|
|
(5,639,207)
|
|
Total realized gain
(loss) and change in unrealized appreciation (depreciation) on
investments
|
|
|
|
(6,193,563)
|
|
|
|
|
|
(6,337,314)
|
|
|
|
|
(11,415,541)
|
|
Net increase
(decrease) in net assets resulting from operations
|
|
$
|
|
3,234,503
|
|
|
|
$
|
|
2,586,630
|
|
|
$
|
|
(2,313,825)
|
|
Basic and
diluted:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net investment income
per share
|
|
$
|
|
0.66
|
|
|
|
$
|
|
0.62
|
|
|
$
|
|
0.65
|
|
Earnings per
share
|
|
$
|
|
0.22
|
|
|
|
$
|
|
0.18
|
|
|
$
|
|
(0.17)
|
|
Weighted average shares
of common stock outstanding
|
|
|
|
14,389,163
|
|
|
|
|
|
14,304,641
|
|
|
|
|
13,908,612
|
|
Distributions paid
per common share
|
|
$
|
|
0.63
|
|
|
|
$
|
|
0.60
|
|
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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 $50mm and earnings
before interest, taxes, depreciation, and amortization of at least
$15mm. 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
43TUwww.icmbdc.comU43T.
Forward-Looking Statements
Statements included in this press release and made on the
earnings call for the quarter ended June 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@investrp.com
Phone:(646) 690-5034
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SOURCE Investcorp Credit Management BDC