Crescent Capital BDC, Inc. Reports First Quarter 2025 Earnings Results; Declares a Second Quarter Base Dividend of $0.42 Per Share

LOS ANGELES, May 14, 2025 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. ("Crescent BDC" or "Company") $(CCAP)$ today reported net investment income of $0.45 per share and net income of $0.11 per share, for the quarter ended March 31, 2025. Net asset value $(NAV)$ per share was $19.62 at March 31, 2025 compared to $19.98 as of December 31, 2024.

Dividend Declarations

The Company announced that its Board of Directors (the "Board") declared a second quarter 2025 regular cash dividend of $0.42 per share to stockholders of record as of June 30, 2025, payable on July 15, 2025. Additionally, the second of three previously announced $0.05 per share special dividends will be paid on June 13, 2025 to stockholders of record as of May 30, 2025.

Selected Financial Highlights

($ in millions, except per share amounts)

 
                         As of and for the three months ended 
                ------------------------------------------------------ 
                                     December 31, 
                March 31, 2025           2024           March 31, 2024 
                --------------      --------------      -------------- 
Investments, 
 at fair 
 value            $    1,620.7        $    1,598.9       $     1,563.3 
Total assets      $    1,666.5        $    1,656.3       $     1,620.4 
Total net 
 assets           $      727.1        $      740.6       $       751.4 
Net asset 
 value per 
 share            $      19.62        $      19.98       $       20.28 
 
Investment 
 income           $       42.1        $       46.4       $        50.4 
Net investment 
 income           $       16.6        $       20.5       $        23.4 
Net realized 
 gains 
 (losses), net 
 of taxes         $       (6.5)       $       (3.2)      $        (0.2) 
Net change in 
 unrealized 
 gains 
 (losses), net 
 of taxes         $       (6.2)       $       (7.3)      $         4.8 
Net increase 
 (decrease) in 
 net assets 
 resulting 
 from 
 operations       $        3.9        $       10.0       $        28.0 
 
Net investment 
 income per 
 share            $       0.45        $       0.55       $        0.63 
Net realized 
 gains 
 (losses) per 
 share, net of 
 taxes            $      (0.18)       $      (0.09)      $       (0.00) 
Net change in 
 unrealized 
 gains 
 (losses) per 
 share, net of 
 taxes            $      (0.16)       $      (0.19)      $        0.13 
Net increase 
 (decrease) in 
 net assets 
 resulting 
 from 
 operations 
 per share        $       0.11        $       0.27       $        0.76 
Regular 
 distributions 
 paid per 
 share            $       0.42        $       0.42       $        0.41 
Supplemental 
 distributions 
 paid per 
 share            $          -        $       0.07       $        0.10 
Special 
 distributions 
 paid per 
 share            $       0.05        $          -       $           - 
 
Weighted 
 average yield 
 on income 
 producing 
 securities 
 (at cost)(1)             10.4%               10.9%               12.3% 
Percentage of 
 debt 
 investments 
 at floating 
 rates                    97.2%               97.3%               97.5% 
 
 

Portfolio & Investment Activity

As of March 31, 2025 and December 31, 2024, the Company had investments in 191 and 185 portfolio companies with an aggregate fair value of $1,620.7 and $1,598.9 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types:

 
                                   As of 
               ---------------------------------------------- 
$ in 
millions          March 31, 2025          December 31, 2024 
               --------------------      -------------------- 
Investment       Fair                      Fair 
Type            Value    Percentage       Value    Percentage 
------------   --------  ----------      --------  ---------- 
Senior 
 secured 
 first lien    $  400.3        24.8%     $  379.7        23.7% 
Unitranche 
 first 
 lien(2)        1,048.9        64.7       1,044.1        65.3 
Unitranche 
 first lien - 
 last out(2)       25.0         1.5          14.8         0.9 
Senior 
 secured 
 second lien       22.5         1.4          38.5         2.4 
Unsecured 
 debt              18.2         1.1          17.5         1.1 
Equity & 
 other             66.8         4.1          64.9         4.1 
LLC/LP equity 
 interests         39.0         2.4          39.4         2.5 
                -------  ----------       -------  ---------- 
Total 
 investments   $1,620.7       100.0%     $1,598.9       100.0% 
                -------  ----------       -------  ---------- 
 
 

For the quarter ended March 31, 2025, the Company invested $104.7 million across 10 new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $78.0 million in aggregate exits, sales and repayments. For the quarter ended December 31, 2024, the Company invested $127.1 million across 14 new portfolio companies and several follow-on revolver and delayed draw fundings. For this period, the Company had $105.8 million in aggregate exits, sales and repayments.

Results of Operations

For the quarter ended March 31, 2025, investment income decreased to $42.1 million from $46.4 million for the quarter ended December 31, 2024, respectively. Interest income, which includes amortization of upfront fees, decreased to $39.7 million for the quarter ended March 31, 2025 from $43.4 million for the quarter ended December 31, 2024, primarily due to a decrease in benchmark rates. Included in interest from investments for the quarters ended March 31, 2025 and December 31, 2024 are $0.8 million and $0.5 million of accelerated accretion of OID related to paydown activity, respectively. Dividend income decreased to $1.5 million for the quarter ended March 31, 2025 from $2.4 million for the quarter ended December 31, 2024. Other income, which includes consent, waiver, amendment, agency, underwriting and arranger fees, was $0.9 million and $0.6 million for the quarter ended March 31, 2025 and December 31, 2024, respectively.

For the three months ended March 31, 2025 and December 31, 2024, total net expenses, including income and excise taxes, totaled $25.5 million and $25.9 million, respectively.

Liquidity and Capital Resources

As of March 31, 2025, the Company had $30.5 million in cash and cash equivalents and restricted cash and $310.0 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average cost of debt on the Company's debt outstanding as of March 31, 2025 was 6.36%.

The Company's debt to equity ratio was 1.25x as of March 31, 2025.

Conference Call

The Company will host a webcast/conference call on Thursday, May 15, 2025 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended March 31, 2025. Please visit Crescent BDC's webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDC's website for a slide presentation that complements the earnings conference call.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDC's website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing the following number:

Toll Free: (800) 715-9871

Conference ID: 1217499

All callers will need to reference the Conference ID once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.

Endnotes

Note: Numbers may not sum due to rounding.

1) Yield includes performing debt and other income producing investments (excluding investments on non-accrual).

2) Unitranche loans are first lien loans that may extend deeper in a company's capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another lender to provide the "first out" portion of such loan and retain the "last out" portion of such loan, in which case, the "first out" portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the "last out" portion that the Company would continue to hold. In exchange for the greater risk of loss, the "last out" portion earns a higher interest rate.

 
                        Crescent Capital BDC, Inc. 
             Consolidated Statements of Assets and Liabilities 
              (in thousands except share and per share data) 
 
                         As of March 31, 2025             As of 
                              (Unaudited)            December 31, 2024 
                       -------------------------   -------------------- 
Assets 
Investments, at fair 
value 
  Non-controlled 
   non-affiliated 
   investments (cost 
   of $1,541,656 and 
   $1,511,386, 
   respectively)         $             1,527,336    $         1,504,013 
  Non-controlled 
   affiliated 
   investments (cost 
   of $44,783 and 
   $46,104, 
   respectively)                          45,805                 46,793 
  Controlled 
   investments (cost 
   of $61,496 and 
   $66,416, 
   respectively)                          47,600                 48,051 
Cash and cash 
 equivalents                              12,033                 10,130 
Restricted cash and 
 cash equivalents                         18,495                 29,292 
Interest and dividend 
 receivable                                8,240                 11,008 
Receivable from 
 unsettled 

 transactions                                224                  1,163 
Unrealized 
 appreciation on 
 foreign currency 
 forward contracts                         4,242                  4,815 
Deferred tax assets                          282                    746 
Other assets                               2,240                    263 
    Total assets         $             1,666,497    $         1,656,274 
                       ===  ====================       ================ 
 
Liabilities 
Debt (net of deferred 
 financing costs of 
 $8,658 and $8,214, 
 respectively)           $               902,952    $           875,837 
Distributions payable                     15,566                 15,566 
Interest and other 
 debt financing costs 
 payable                                   9,116                 10,408 
Management fees 
 payable                                   5,019                  5,066 
Incentive fees 
 payable                                   3,487                  4,305 
Deferred tax 
 liabilities                                 282                    746 
Unrealized 
depreciation on 
foreign currency 
forward contracts                            284                     -- 
Accrued expenses and 
 other liabilities                         2,669                  3,709 
                       ---  --------------------       ---------------- 
    Total liabilities    $               939,375    $           915,637 
                       ===  ====================       ================ 
 
Net assets 
Preferred stock, par 
value $0.001 per 
share (10,000 shares 
authorized, zero 
outstanding, 
respectively)            $                    --    $                -- 
Common stock, par 
 value $0.001 per 
 share (200,000,000 
 shares authorized, 
 37,061,547 shares 
 issued and 
 outstanding)                                 37                     37 
Paid-in capital in 
 excess of par value                     959,098                959,098 
Accumulated earnings 
 (loss)                                 (232,013)              (218,498) 
                       ---  --------------------       ---------------- 
    Total net assets     $               727,122    $           740,637 
                       ---  --------------------       ---------------- 
    Total liabilities 
     and net assets      $             1,666,497    $         1,656,274 
                       ===  ====================       ================ 
Net asset value per 
 share                   $                 19.62    $             19.98 
 
 
                        Crescent Capital BDC, Inc. 
                   Consolidated Statements of Operations 
              (in thousands except share and per share data) 
                                (Unaudited) 
 
                                For the three months ended March 31, 
                             ------------------------------------------ 
                                       2025                  2024 
                                 ----------------       --------------- 
Investment Income: 
From non-controlled 
non-affiliated 
investments: 
    Interest income           $            36,978      $         43,564 
    Paid-in-kind interest                   1,493                 1,155 
    Dividend income                            --                   393 
    Other income                              870                   889 
From non-controlled 
affiliated investments: 
    Interest income                           858                   692 
    Paid-in-kind interest                     264                   442 
    Dividend income                           258                   287 
From controlled 
investments: 
    Interest income                           205                   299 
    Dividend income                         1,200                 2,640 
    Other income                                3                    -- 
                                 ----------------       --------------- 
    Total investment income                42,129                50,361 
                                 ----------------       --------------- 
 
Expenses: 
Interest and other debt 
 financing costs                           14,636                15,604 
Management fees                             5,038                 4,980 
Income based incentive fees                 3,519                 4,937 
Professional fees                             735                   447 
Directors' fees                               164                   156 
Other general and 
 administrative expenses                      967                   628 
                                 ----------------       --------------- 
   Total expenses                          25,059                26,752 
                                 ----------------       --------------- 
Management fees waiver                        (20)                  (38) 
Income based incentive fees 
 waiver                                       (32)                  (36) 
                                 ----------------       --------------- 
   Net expenses                            25,007                26,678 
                                 ----------------       --------------- 
Net investment income 
 before taxes                              17,122                23,683 
  (Benefit) provision for 
   income and excise taxes                    501                   366 
                                 ----------------       --------------- 
Net investment income                      16,621                23,317 
                                 ----------------       --------------- 
Net realized and unrealized 
gains (losses) on 
investments: 
  Net realized gain (loss) 
  on: 
    Non-controlled 
     non-affiliated 
     investments                           (3,060)               (1,604) 
    Non-controlled 
     affiliated 
     investments                           (3,800)                   -- 
    Foreign currency 
     transactions                             357                   (11) 
    Foreign currency 
     forward contracts                         --                 1,447 
   Net change in unrealized 
   appreciation 
   (depreciation) on: 
    Non-controlled 
     non-affiliated 
     investments and 
     foreign currency 
     translation                          (10,159)                4,870 
    Non-controlled 
     affiliated 
     investments                              333                   228 
    Controlled investments                  4,469                  (225) 
    Foreign currency 
     forward contracts                       (857)                 (356) 
                                 ----------------       --------------- 
  Net realized and 
   unrealized gains 
   (losses) on investments                (12,717)                4,349 
                                 ----------------       --------------- 
  Benefit (provision) for 
   taxes on unrealized 
   appreciation 
   (depreciation) on 
   investments                                 --                   339 
                                 ----------------       --------------- 
  Net increase (decrease) 
   in net assets resulting 
   from operations            $             3,904      $         28,005 
                                 ================       =============== 
 
Per common share data: 
  Net increase (decrease) 
   in net assets resulting 
   from operations per 
   share (basic and 
   diluted):                  $              0.11      $           0.76 
  Net investment income per 
   share (basic and 
   diluted):                  $              0.45      $           0.63 
  Weighted average shares 
   outstanding (basic and 
   diluted):                           37,061,547            37,061,547 
 
 

About Crescent BDC

Crescent BDC is a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent. Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visit www.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

About Crescent Capital Group

Crescent is a global credit investment manager with $46 billion of assets under management. For over 30 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche and junior debt securities. Crescent is headquartered in Los Angeles with offices in New York, Boston, Chicago and London with more than 225 employees globally. Crescent is a part of SLC Management, the institutional alternatives and traditional asset management business of Sun Life. For more information about Crescent, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

Contact:

Dan McMahon

daniel.mcmahon@crescentcap.com

212-364-0149

Forward-Looking Statements

This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDC's future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as "trend," "potential," "opportunity," "pipeline," "believe," "comfortable," "expect," "anticipate," "current," "intention," "estimate, " "position," "assume," "outlook," "continue," "remain," "maintain," "sustain," "seek," "achieve," and similar expressions, or future or conditional verbs such as "will," "would," "should," "could," "may" or similar expressions.

Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Crescent BDC's SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment adviser to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment adviser or its affiliates; (13) the ability of our investment adviser to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

Crescent BDC's Annual Report on Form 10-K for the year ended December 31, 2024 and quarterly report on Form 10-Q for the quarter ended March 31, 2025, each filed with the SEC, identifies additional factors that can affect forward-looking statements.

Other Information

The information in this press release is summary information only and should be read in conjunction with Crescent BDC's annual report on Form 10-K for the year ended December 31, 2024, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 19, 2025, Crescent BDC's quarterly report on Form 10-Q for the quarter ended March 31, 2025, which Crescent BDC filed with the SEC on May 14, 2025 as well as Crescent BDC's other reports filed with the SEC. A copy of Crescent BDC's annual report on Form 10-K for the year ended December 31, 2024, Crescent BDC's quarterly reports on Form 10-Q and Crescent BDC's other reports filed with the SEC can be found on Crescent BDC's website at www.crescentbdc.com and the SEC's website at www.sec.gov.

(END) Dow Jones Newswires

May 14, 2025 16:30 ET (20:30 GMT)