Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended March 31, 2025, and Quarterly Distribution
NEW YORK--(BUSINESS WIRE)--May 13, 2025--
Investcorp Credit Management BDC, Inc. $(ICMB)$ ("ICMB" or the "Company") announced its financial results today for its fiscal quarter ended March 31, 2025.
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 one new portfolio company
and two existing portfolio companies. These investments totaled $5.1(4)
million, at cost. The weighted average yield (at origination) of debt
investments made in the quarter was 10.22%.
-- ICMB fully realized its investments in three portfolio companies during
the quarter, totaling $5.7 million in proceeds. The internal rate of
return on these investments was 9.55%.
-- During the quarter, the Company had net advances of $503k on new and
existing delayed draw and revolving credit commitments to portfolio
companies.
-- The weighted average yield on debt investments, at cost, for the quarter
ended March 31, 2025, was 10.78%, compared to 10.36% for the quarter
ended December 31, 2024.
-- Net asset value increased $0.03 per share to $5.42, compared to $5.39 as
of December 31, 2024. Net assets increased by $0.5 million, or 0.64%,
during the quarter ended March 31, 2025 compared to December 31, 2024.
Portfolio results, as of and for the three months ended March 31,
2025:
Total assets $207.6mm
Investment portfolio, at fair value $192.4mm
Net assets $78.1mm
Weighted average yield on debt investments, at cost (1) 10.78%
Net asset value per share $5.42
Portfolio activity in the current quarter:
Number of investments in new portfolio companies during the period 1
Number of portfolio companies invested in, end of period 43
Total capital invested in existing portfolio companies (2) (4) $2.8mm
Total proceeds from repayments, sales, and amortization (3) $7.3mm
Net investment income before taxes (NII) $0.7mm
Net investment income before taxes per share $0.05
Net increase in net assets from operations $2.2mm
Net increase in net assets from operations per share $0.15
Distributions paid per common share $0.12
(1) Represents weighted average yield on total debt investments for the three
months ended March 31, 2025. 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.
(2) Includes gross advances to existing delayed draw commitments to portfolio
companies and PIK interest.
(3) Includes gross repayments on existing delayed draw and revolving credit
commitments to portfolio companies.
(4) Includes Work Genius A-1 Equity Units acquired in lieu of cash fee related
to the amendment and extension of credit for Work Genius Term Loan.
Mr. Suhail A. Shaikh said "This quarter reflects the progress of our disciplined approach - resolving legacy issues, strengthening the portfolio, and positioning ICMB to navigate a more cautious market environment. While macro uncertainty continues to weigh on activity, we believe our patience and focus on credit quality will drive long-term value creation for our shareholders."
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 14.95% yield on the Company's $3.21 share price as of market close on March 31, 2025. 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 March 31, 2025, 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 one new portfolio company and two existing portfolio companies. The aggregate capital invested during the quarter totaled $5.1 million, at cost, and the debt investments were made at a weighted average yield of 10.22%.
The Company received proceeds of $7.3 million from repayments, sales and amortization during the quarter, primarily related to the realization of Victra Holdings, LLC Term Loan B and Flatworld Intermediate Corporation Term Loan.
During the quarter, the Company had net advances of $503k on new and existing delayed draw and revolving credit commitments to portfolio companies.
The Company's net realized, and unrealized gains and losses accounted for an increase in the Company's net investments of approximately $1.6 million, or $0.11 per share. The total net increase in net assets resulting from operations for the quarter was $2.2 million, or $0.15 per share.
As of March 31, 2025, the Company's investment portfolio consisted of investments in 43 portfolio companies, of which 77.04% were first lien investments and 22.96% were equity, warrants, and other investments. The Company's debt portfolio consisted of 98.18% floating rate investments and 1.82% fixed rate investments.
Capital Resources
As of March 31, 2025, the Company had $13.0 million in cash, of which $10.7 million was restricted cash, and $44.0 million of unused and available capacity under its revolving credit facility with Capital One, N.A.
Subsequent Events
Subsequent to March 31, 2025 and through May 13, 2025, the Company invested a total of $2.0 million, at cost, which included investments in two existing portfolio companies. As of May 13, 2025, the Company had investments in 43 portfolio companies.
On April 15, 2025, the Board declared a distribution for the quarter ended June 30, 2025 of $0.12 per share payable on June 14, 2025 to stockholders of record as of May 24, 2025.
Investcorp Credit Management
BDC, Inc. and Subsidiaries
Consolidated Statements of
Assets and Liabilities
----------------------------- ------------ ---------------
March 31, 2025
(Unaudited) December 31, 2024
---------------- -------------------
Assets
Non-controlled,
non-affiliated investments,
at fair value (amortized
cost of $181,732,130 and
$184,154,029, respectively) $ 189,559,979 $ 188,602,029
Affiliated investments, at
fair value (amortized cost
of $16,374,641 and
$16,351,878, respectively) 2,887,891 3,014,929
------------ ---------------
Total investments, at fair
value (amortized cost of
$198,106,771 and
$200,505,907,
respectively) 192,447,870 191,616,958
Cash 2,333,328 771,483
Cash, restricted 10,656,778 11,333,064
Principal receivable -- 720,855
Interest receivable 1,067,588 1,576,381
Payment-in-kind interest
receivable 82,197 85,399
Long-term receivable -- 489,365
Short-term receivable 528,462 160,901
Prepaid expenses and other
assets 490,407 97,324
------------ ---------------
Total Assets $ 207,606,630 $ 206,851,730
============ ===============
Liabilities
Debt:
Revolving credit facility $ 56,000,000 $ 58,500,000
2026 Notes payable 65,000,000 65,000,000
Deferred debt issuance
costs (1,215,592) (1,369,415)
Unamortized discount (71,110) (88,888)
------------ ---------------
Debt, net 119,713,298 122,041,697
Payable for investments
purchased 1,474,677 1,474,677
Dividend payable 1,729,684 1,728,749
Income-based incentive fees
payable 501,955 501,955
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