CCAP Crescent Capital BDC Inc

UNITED STATES

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

 

Pursuant to section 13 or 15(d)

of the Securities Exchange Act of 1934

 

Date of Report (Date of Earliest Event Reported): August 12, 2024

 

 

Crescent Capital BDC, Inc.

 

(Exact name of registrant as specified in its charter)

 

 

Maryland	814-01132	47-3162282
(State or Other Jurisdiction of Incorporation or Organization)	(Commission File Number)	(I.R.S. Employer Identification No.)
11100 Santa Monica Blvd., Suite 2000,
Los Angeles, CA		90025
(Address of Principal Executive Offices)		(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: (310) 235-5900

 

Not Applicable

 

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) Securities registered pursuant to 12(b) of the Act:

 

Securities registered pursuant to Section 12(g) of the Act:

 

Title of each class		Trading Symbol		Name of each exchange on which registered
Common Stock, $0.001 par value per share		CCAP		The Nasdaq Stock Market LLC
5.00% Notes due 2026		FCRX		The New York Stock Exchange
	Common Stock, par value $0.001 per share
		(Title of class)

 

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

 

Emerging growth company ☒

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

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Item 2.02. Results of Operations and Financial Condition.

 

On August 12, 2024, Crescent Capital BDC, Inc. (the “Company”) issued a press release announcing its financial results for the quarter ended June 30, 2024. The text of the press release is included as Exhibit 99.1 to this Form 8-K.

The information disclosed under this Item 2.02, including Exhibit 99.1 hereto, is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.

 

Item 9.01. Financial Statements and Exhibits.

 

(d) Exhibits.

 

Exhibits

 

 

Number	Description
99.1	Press Release, dated August 12, 2024
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

 

 

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SIGNATURE

 

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this Current Report on Form 8-K to be signed on its behalf by the undersigned hereunto duly authorized.

 

	CRESCENT CAPITAL BDC, INC.
Date: August 12, 2024	By:	/s/ Gerhard Lombard
	Name:	Gerhard Lombard
	Title:	Chief Financial Officer

 

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Crescent Capital BDC, Inc. Reports Second Quarter 2024 Earnings Results;
Declares a Third Quarter Base Dividend of $0.42 Per Share, and a Second Quarter Supplemental Dividend of $0.09 Per Share

 

LOS ANGELES, August 12, 2024 — Crescent Capital BDC, Inc. (“Crescent BDC” or “Company”) (NASDAQ: CCAP) today reported net investment income of $0.59 per share and net income of $0.55 per share for the quarter ended June 30, 2024. Net asset value per share increased to $20.30 compared to $20.28 as of March 31, 2024.

 

Dividend Declarations

The Company’s Board of Directors (the “Board”) declared a third quarter 2024 regular cash dividend of $0.42 per share to stockholders of record as of September 30, 2024, payable on October 15, 2024. The Board also announced a second quarter 2024 supplemental cash dividend of $0.09 per share to stockholders of record as of August 31, 2024, payable on September 16, 2024.

 

Selected Financial Highlights

($ in millions, except per share amounts)

		As of and for the three months ended
		June 30, 2024					March 31, 2024					June 30, 2023
Investments, at fair value		$		1,610.8			$		1,563.3			$		1,581.1
Total assets		$		1,672.4			$		1,620.4			$		1,624.6
Total net assets		$		752.4			$		751.7			$		725.8
Net asset value per share		$		20.30			$		20.28			$		19.58
Investment income		$		48.9			$		50.4			$		46.7
Net investment income		$		21.7			$		23.4			$		20.6
Net realized gains (losses), net of taxes		$		(4.1	)		$		(0.2	)		$		(6.6	)
Net change in unrealized gains (losses), net of taxes		$		2.8			$		4.9			$		8.6
Net increase (decrease) in net assets resulting from operations		$		20.4			$		28.0			$		22.6
Net investment income per share		$		0.59			$		0.63			$		0.56
Net realized gains (losses) per share, net of taxes		$		(0.11	)		$		(0.00	)		$		(0.18	)
Net change in unrealized gains (losses) per share, net of taxes		$		0.07			$		0.13			$		0.23
Net increase (decrease) in net assets resulting from operations per share		$		0.55			$		0.76			$		0.61
Regular distributions paid per share		$		0.42			$		0.41			$		0.41
Supplemental distributions paid per share		$		0.11			$		0.10					-
Weighted average yield on income producing securities (at cost)1				12.2	%				12.3	%				11.7	%
Percentage of debt investments at floating rates				96.9	%				97.5	%				98.6	%

 

Portfolio & Investment Activity

As of June 30, 2024 and December 31, 2023, the Company had investments in 183 and 186 portfolio companies with an aggregate fair value of $1,610.8 and $1,582.1 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types:
		As of
$ in millions		June 30, 2024										December 31, 2023
Investment Type		Fair Value					Percentage					Fair Value					Percentage
Senior secured first lien		$		432.9				26.8		%		$		429.2				27.0		%
Unitranche first lien2				1,005.3				62.4						973.9				61.5
Unitranche first lien - last out2				5.6				0.3						13.5				0.9
Senior secured second lien				49.5				3.1						58.2				3.7
Unsecured debt				15.6				1.0						4.1				0.3
Equity & other				57.2				3.6						50.1				3.2
LLC/LP equity interests				44.7				2.8						53.1				3.4
Total investments		$		1,610.8				100.0		%		$		1,582.1				100.0		%

For the quarter ended June 30, 2024, the Company invested $119.3 million across six new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $73.4 million in aggregate exits, sales and repayments. For the quarter ended March 31, 2024, the Company invested $73.9 million across seven new portfolio companies and several follow-on revolver and delayed draw fundings. During this period, the Company had $98.4 million in aggregate exits, sales and repayments.

 

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Results of Operations

For the quarter ended June 30, 2024 and 2023, investment income was $48.9 million and $46.7 million, respectively. The increase in investment income was largely the result of net funding activity and an increase in reference rates. Net expenses, including income and excise taxes, totaled $27.2 million and $26.1 million for the quarter ended June 30, 2024 and 2023, respectively. The increase in net expenses was primarily due to an increase in reference rates which increased the Company's weighted average interest rate on debt outstanding.

Liquidity and Capital Resources

As of June 30, 2024, the Company had $36.1 million in cash and cash equivalents and restricted cash and $293.8 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 June 30, 2024 was 7.26%.

The Company’s debt to equity ratio was 1.18x as of June 30, 2024.

Conference Call

The Company will host a webcast/conference call on Tuesday, August 13, 2024 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended June 30, 2024. 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) 267-6316

Conference ID: CRESCENT

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.

 

 

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Crescent Capital BDC, Inc.

Consolidated Statements of Assets and Liabilities

(in thousands except share and per share data)

 

	As of June 30, 2024				As of December 31, 2023
Assets
Investments, at fair value
Non-controlled non-affiliated investments (cost of$1,493,976 and $1,469,251, respectively)	$	1,501,420			$	1,465,537
Non-controlled affiliated investments (cost of $54,294 and $56,084, respectively)		52,023				52,619
Controlled investments (cost of $64,619 and $67,353, respectively)		57,332				63,919
Cash and cash equivalents		11,018				7,780
Restricted cash and cash equivalents		25,124				16,690
Interest and dividend receivable		16,089				14,000
Receivable from unsettled transactions		2,549				251
Unrealized appreciation on foreign currency forward contracts		2,765				5,128
Deferred tax assets		939				114
Other assets		3,173				1,341
Total assets	$	1,672,432			$	1,627,379
Liabilities
Debt (net of deferred financing costs of $7,903 and $7,138)	$	879,934			$	844,783
Distributions payable		15,566				15,195
Interest and other debt financing costs payable		11,038				10,900
Management fees payable		5,001				5,026
Incentive fees payable		4,603				4,770
Deferred tax liabilities		883				578
Unrealized depreciation on foreign currency forward contracts		42				84
Accrued expenses and other liabilities		2,925				3,449
Total liabilities	$	919,992			$	884,785
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 and 30,887,360 shares issued and outstanding, respectively)		37				37
Paid-in capital in excess of par value		965,895				788,299
Accumulated earnings (loss)		(213,492	)			(45,742	)
Total net assets	$	752,440			$	742,594
Total liabilities and net assets	$	1,672,432			$	1,627,379
Net asset value per share	$	20.30			$	20.04

 

 

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Crescent Capital BDC, Inc.

Consolidated Statements of Operations

(in thousands except share and per share data)
(Unaudited)

 

		For the three months ended June 30,								For the six months ended June 30,
			2024				2023				2024				2023
Investment Income:
From non-controlled non-affiliated investments:
Interest income		$	41,973			$	41,255			$	85,536			$	75,501
Paid-in-kind interest			2,060				650				3,215				1,268
Dividend income			2				75				395				79
Other income			779				181				1,667				228
From non-controlled affiliated investments:
Interest income			1,099				740				1,791				1,352
Paid-in-kind interest			67				186				509				235
Dividend income			—				551				287				1,179
Other income			16				149				16				149
From controlled investments:
Interest income			312				154				611				320
Paid-in-kind interest			—				—				—				192
Dividend income			2,640				2,800				5,280				5,520
Other income			3				—				5				—
Total investment income			48,951				46,741				99,312				86,023
Expenses:
Interest and other debt financing costs			15,931				15,273				31,535				27,642
Management fees			5,034				5,010				10,014				9,468
Income based incentive fees			4,603				4,349				9,541				8,041
Professional fees			451				427				897				737
Directors’ fees			151				138				308				306
Other general and administrative expenses			678				753				1,305				1,478
Total expenses			26,848				25,950				53,600				47,672
Management fees waiver			(33	)			(50	)			(71	)			(96	)
Income based incentive fees waiver			—				(71	)			(36	)			(159	)
Net expenses			26,815				25,829				53,493				47,417
Net investment income before taxes			22,136				20,912				45,819				38,606
(Benefit) provision for income and excise taxes			433				340				800				541
Net investment income			21,703				20,572				45,019				38,065
Net realized and unrealized gains (losses) on investments:
Net realized gain (loss) on:
Non-controlled non-affiliated investments			(5,332	)			(6,494	)			(6,935	)			(6,243	)
Foreign currency transactions			(508	)			(58	)			(519	)			(58	)
Foreign currency forward contracts			1,776				—				3,223				—
Net change in unrealized appreciation (depreciation) on:
Non-controlled non-affiliated investments and foreign currency translation			7,191				10,010				12,061				4,456
Non-controlled affiliated investments			966				174				1,194				539
Controlled investments			(3,628	)			(1,641	)			(3,853	)			(5,970	)
Foreign currency forward contracts			(1,964	)			(578	)			(2,320	)			(1,239	)
Net realized and unrealized gains (losses) on investments			(1,499	)			1,413				2,851				(8,515	)
Benefit (provision) for taxes on realized gain on investments			—				—				—				252
Benefit (provision) for taxes on unrealized appreciation (depreciation) on investments			181				595				520				555
Net increase (decrease) in net assets resulting from operations		$	20,385			$	22,580			$	48,390			$	30,357
Per common share data:
Net increase (decrease) in net assets resulting from operations per share (basic and diluted):		$	0.55			$	0.61			$	1.31			$	0.87
Net investment income per share (basic and diluted):		$	0.59			$	0.56			$	1.21			$	1.09
Weighted average shares outstanding (basic and diluted):			37,061,547				37,061,547				37,061,547				34,776,074

 

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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 over $42 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, 2023, 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, 2023, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 21, 2024, 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, 2023, 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.

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v3.24.2.u1

Document and Entity Information	Aug. 12, 2024
Document And Entity Information [Line Items]
Amendment Flag	false
Entity Central Index Key	0001633336
Document Type	8-K
Document Period End Date	Aug. 12, 2024
Entity Registrant Name	Crescent Capital BDC, Inc.
Entity Incorporation State Country Code	MD
Entity File Number	814-01132
Entity Tax Identification Number	47-3162282
Entity Address, Address Line One	11100 Santa Monica Blvd.
Entity Address, Address Line Two	Suite 2000
Entity Address, City or Town	Los Angeles
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	90025
City Area Code	(310)
Local Phone Number	235-5900
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Entity Emerging Growth Company	true
Entity Ex Transition Period	false
Common Stock [Member]
Document And Entity Information [Line Items]
Security 12g Title	Common Stock, $0.001 par value per share
Trading Symbol	CCAP
Security Exchange Name	NASDAQ
Deferrable Notes [Member]
Document And Entity Information [Line Items]
Security 12g Title	5.00% Notes due 2026
Trading Symbol	FCRX
Security Exchange Name	NYSE

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