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Crescent Capital BDC, Inc. Quarterly Earnings Presentation December 31, 2024
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2 Disclaimer and Forward-Looking Statement This presentation (the “Presentation”) has been prepared by Crescent Capital BDC, Inc. (together with its consolidated subsidiaries, “CCAP,” “Crescent BDC” or the “Company”) and may be used for informational purposes only. This Presentation contains summaries of certain financial and statistical information about the Company and should be viewed in conjunction with the Company’s most recent Quarterly Report on Form 10-Q and Annual Report on Form 10-K. The information contained herein may not be used, reproduced, referenced, quoted, linked by website, or distributed to others, in whole or in part, except as agreed in writing by the Company. This Presentation does not constitute a prospectus and should under no circumstances be understood as an offer to sell or the solicitation of an offer to buy the Company’s common stock or any other securities nor will there be any sale of the common stock or any other securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction. This Presentation provides limited information regarding the Company and is not intended to be taken by, and should not be taken by, any individual recipient as investment advice, a recommendation to buy, hold or sell, or an offer to sell or a solicitation of offers to purchase, the Company’s common stock or any other securities that may be issued by the Company, or as legal, accounting or tax advice. An investment in securities of the type described herein presents certain risks. Footnotes contain important information about the definition of terms used herein, the composition of the investment portfolio and related performance information as well as unrealized investment valuations and should be carefully reviewed. Market data and information included herein (including information relating to portfolio companies) is based on various published and unpublished sources considered to be reliable, but has not been independently verified and there is no guarantee of its accuracy or completeness. Performance information contained herein is based in significant part on unrealized investment valuations which may not be achieved. We undertake no duty or obligation to publicly update or revise the information contained in this Presentation. Legal, tax and regulatory changes, as well as judicial decisions, both within and outside of the United States, could have an adverse impact on the Company and its investments. Instability in the securities markets may increase the risk inherent in CCAP’s investments in that the ability of issuers to refinance or redeem portfolio securities held may depend on their ability to sell new securities in the market. Future periods of uncertainty in the U.S. economy and the economies of other countries of issuers of securities and loans in which the Company may invest, and the possibility of increased volatility, default rates and deterioration in financial markets, may adversely affect the Company’s investment portfolio. This Presentation may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward- looking terminology such as “anticipates,” “believes,” “expects,” “intends,” “will,” “should,” “may,” “plans,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “targets,” “projects,” “outlook,” “potential,” “predicts” and variations of these words and similar expressions to identify forward-looking statements, although not all forward-looking statements include these words. You should read statements that contain these words carefully because they discuss plans, strategies, prospects and expectations concerning CCAP’s business, operating results, financial condition and other similar matters. We believe that it is important to communicate our future expectations to our investors. There may be events in the future, however, that we are not able to predict accurately or control. You should not place undue reliance on these forward-looking statements, which speak only as of the date on which we make them. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the Securities and Exchange Commission (the “SEC”), and it is not possible for us to predict or identify all of them. We undertake no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. CCAP is managed by Crescent Cap Advisors, LLC (the “Investment Adviser”), an SEC- registered investment adviser and a subsidiary of Crescent Capital Group LP (together with its affiliates, “Crescent”). This Presentation contains information about the Company and certain of its affiliates and includes the Company’s historical performance. You should not view information related to the past performance of the Company as indicative of the Company’s future results, the achievement of which is dependent on many factors, many of which are beyond the control of the Company and the Investment Adviser and cannot be assured. There can be no assurances that future dividends will match or exceed historic rates or will be paid at all. Further, an investment in the Company is discrete from, and does not represent an interest in, any other Crescent entity. Nothing contained herein shall be relied upon as a promise or representation whether as to the past or future performance of the Company or any other Crescent entity.
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3As of December 31, 2024. Past performance does not guarantee or indicate future results. Specialty finance company focused on investing in the debt of private U.S. middle-market companies Crescent Capital BDC, Inc. (CCAP) Q2’15 (Inception) Q4’24 Ticker CCAP Exchange NASDAQ Total Net Assets $741 million Net Asset Value per Share $19.98 Total Assets $1.7 billion Debt-to-Equity 1.19x $1,599 Total Portfolio Investments ($mm)
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4Note: Past performance does not guarantee or indicate future results. Since its inception, CCAP has consistently delivered a stable NAV profile Track Record of NAV Stability and ResilienceQ2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'21 Q4'21 Q1'22 Q2'22 Q3'22 Q4'22 Q1'23 Q2'23 Q3'23 Q4'23 Q1'24 Q2'24 Q3'24 Q4'24 NAV Per Share Cumulative Dividends Per Share $19.90 $19.98 $34.61 $14.63
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5 Summary of Financial Results Current or prospective client name
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6 Note: Net asset value per share is based on the shares outstanding at quarter-end. Dividend per share is based on the shares outstanding on the declaration date. Net investment income per share and net realized and unrealized losses per share are based on the weighted average number of shares outstanding for the period. 1. Net of taxes. 2. The first special dividend will be paid on March 14, 2025 to stockholders of record as of February 28, 2025. The second special dividend will be paid on June 13, 2025 to stockholders of record as of May 30, 2025. The third special dividend will be paid on September 15, 2025 to stockholders of record as of August 29, 2025. Fourth Quarter 2024 Highlights Fourth Quarter Performance • Net investment income per share for the quarter ended December 31, 2024 was $0.55. This compares to $0.64 for the prior quarter • Net realized and unrealized losses on investments per share for the quarter ended September 30, 2024 of ($0.28)(1). This compares to net realized and unrealized losses on investments of ($0.22)(1) for the prior quarter • Net income per share for the quarter ended December 31, 2024 was $0.27, as compared to $0.41 for the prior quarter NAV per Share • Net asset value per share as of December 31, 2024 was $19.98 Dividends • Declared a regular dividend of $0.42 per share for the first quarter of 2025, payable on April 15, 2025 • Declared a series of special dividends related to undistributed taxable income in the aggregate amount of $0.15 per share, to be paid in three equal quarterly installments of $0.05 per share(2) • Existing variable supplemental distribution framework remains in effect Portfolio Highlights • Diversified, defensively positioned portfolio consisting of 185 portfolio companies across 20 industries, valued at $1,599 million as of December 31, 2024 • 90% of CCAP’s portfolio comprised of senior secured first lien and unitranche first lien investments by fair value • $21.0 million in net funded investment activity during the fourth quarter Capital Structure & Liquidity • Strong liquidity profile with $39.4 million in cash and cash equivalents and restricted cash and $337.5 million of undrawn debt capacity as of December 31, 2024 • Extended SMBC Corporate Revolving Facility maturity from October 2026 to December 2029 • Issued $35 million of senior unsecured notes due February 2028 and $80 million of senior unsecured notes due February 2030
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7 Note: Figures may not sum due to rounding. 1. Net of taxes. Financial Highlights $ in millions, except per share data Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Net investment income per share $0.61 $0.63 $0.59 $0.64 $0.55 Net realized gains (losses) per share(1) ($0.18) ($0.00) ($0.11) $0.10 ($0.09) Net unrealized gains (losses) per share(1) $0.40 $0.13 $0.07 ($0.32) ($0.19) Net increase (decrease) in net assets per share $0.83 $0.76 $0.55 $0.41 $0.27 Net asset value (NAV) per share $20.04 $20.28 $20.30 $20.20 $19.98 Regular distributions per share $0.41 $0.41 $0.42 $0.42 $0.42 Supplemental distributions paid per share $0.09 $0.10 $0.11 $0.09 $0.07 Total assets $1,627 $1,620 $1,672 $1,645 $1,656 Debt obligations, gross $852 $838 $888 $865 $884 Total liabilities $885 $869 $920 $896 $916 Total net assets $743 $752 $752 $749 $741 Debt-to-equity 1.15x 1.11x 1.18x 1.15x 1.19x
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8 1. 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. 2. Excludes fixed rate investments. Portfolio Highlights – Selected Metrics $ in millions, except per share data Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Investments at Fair Value $1,582 $1,563 $1,611 $1,591 $1,599 Number of Portfolio Companies 186 183 183 183 185 Median Portfolio Company EBITDA $28 $27 $28 $27 $29 Asset Mix of Investment Portfolio: Senior Secured First Lien 27.0% 26.1% 26.8% 25.2% 23.7% Unitranche First Lien(1) 61.5% 62.7% 62.4% 64.4% 65.3% Unitranche First Lien – Last Out(1) 0.9% 0.8% 0.3% 0.4% 0.9% Senior Secured Second Lien 3.7% 3.4% 3.1% 2.6% 2.4% Unsecured Debt 0.3% 0.5% 1.0% 1.2% 1.1% Equity & Other 3.2% 3.4% 3.6% 3.7% 4.1% LLC/LP Equity Interests 3.4% 3.1% 2.8% 2.5% 2.5% Interest Rate Type on Debt Investments: % Floating Rate 98.7% 97.5% 96.9% 97.4% 97.3% % Fixed Rate 1.3% 2.5% 3.1% 2.6% 2.7% New Investment Activity, at cost: New Investment Activity $88.5 $73.9 $119.3 $72.7 $127.2 Net Funded Investment Activity $1.9 ($24.5) $44.7 ($19.6) $21.0 # of Debt Investments in New Portfolio Companies 10 7 6 6 14 Weighted Average Maturity for Debt Investments in New Portfolio Companies (Years) 6.4 5.5 6.4 5.6 6.3 Weighted Average Yield for Debt Investments in New Portfolio Companies 11.4% 11.5% 11.1% 10.0% 9.6% Weighted Average Spread on Debt Investments in New Portfolio Companies (2) 6.0% 6.0% 5.3% 5.0% 5.1%
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9Note: Figures may not sum due to rounding. Quarterly Statements of Assets and Liabilities As of ($ in thousands, except per share data) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Assets Investments, at fair value $1,582,075 $1,563,343 $1,610,775 $1,591,433 $1,598,857 Cash, cash equivalents and restricted cash 24,470 31,948 36,142 37,837 39,422 Interest and dividend receivable 14,000 14,774 16,089 10,640 11,008 Unrealized appreciation on forward contracts 5,128 4,713 2,765 1,396 4,815 Receivable for unsettled transaction 251 2,782 2,549 131 1,163 Other assets 1,455 2,809 4,112 3,612 1,009 Total Assets $1,627,379 $1,620,369 $1,672,432 $1,645,049 $1,656,274 Liabilities and Net Assets Debt (Leverage, gross) $851,921 $838,047 $887,837 $864,594 $884,051 Deferred financing costs (7,138) (6,621) (7,903) (7,358) (8,214) Distributions payable 15,195 15,195 15,566 15,566 15,566 Interest and other debt financing costs 10,900 8,734 11,038 9,116 10,408 Management fees payable 5,026 4,942 5,001 5,089 5,066 Income based incentive fees payable 4,770 4,901 4,603 4,899 4,305 Unrealized depreciation on forward contracts 84 26 42 77 - Accrued expenses and other liabilities 4,027 3,473 3,808 4,336 4,455 Total Liabilities $884,785 $868,671 $919,992 $896,242 $915,637 Total Net Assets (NAV) $742,594 $751,698 $752,440 $748,807 $740,637 Total Liabilities and Net Assets $1,627,379 $1,620,369 $1,672,432 $1,645,049 $1,656,274 NAV Per Share and Leverage Ratio Common shares outstanding 37,061,547 37,061,547 37,061,547 37,061,547 37,061,547 NAV per share $20.04 $20.28 $20.30 $20.20 $19.98 Debt to equity 1.15x 1.11x 1.18x 1.15x 1.19x Asset coverage 186% 189% 184% 186% 183%
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10 Note: Figures may not sum due to rounding. Net asset value per share is based on the shares outstanding at the respective quarter-end. Dividend distributions per share is based on the shares outstanding on the declaration date. Net investment income per share and net realized/unrealized gains and losses per share are based on the weighted average number of shares outstanding for the period. 1. Net of taxes. 2. Includes the net change in unrealized appreciation (depreciation) on foreign currency forward contracts. Net Asset Value per Share Bridge – Q4 2024 $20.20 $19.98 $0.55 ($0.42) ($0.07) ($0.09) ($0.19) September 30, 2024 NAV/Share Net Investment Income Regular Dividend Distribution Supplemental Dividend Distribution Net Realized Losses on Exits and Sales of Investments Net Change in Unrealized Depreciation December 31, 2024 NAV/Share (1) (1) (2)
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11Note: Figures may not sum due to rounding. Operating Results Detail For the Three Months Ended ($ in thousands, except per share data) 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Investment income Interest & dividend income $49,767 $49,472 $48,153 $50,481 $45,808 Other income 192 889 798 1,152 609 Total investment income $49,960 $50,361 $50,361 $51,633 $46,417 Expenses Interest and other debt financing costs $15,723 $15,604 $15,931 $16,104 $15,122 Management fees, net of waiver 5,025 4,942 5,001 5,089 5,065 Income based incentive fees, net of waiver 4,770 4,901 4,603 4,899 4,305 Other general and administrative 654 628 678 609 648 Professional fees 472 447 451 585 543 Directors' fees 144 156 151 151 159 Income and excise taxes 417 366 433 655 100 Total expenses and taxes $27,202 $27,044 $27,044 $28,092 $25,943 Net investment income after taxes $22,755 $23,317 $21,703 $23,541 $20,474 Net gain (loss) on investments Net realized gain (loss) on investments ($6,612) ($168) ($4,064) $3,769 ($3,227) Net unrealized appreciation (depreciation) on forward contracts (3,709) (356) (1,964) (1,405) 3,496 Net unrealized appreciation (depreciation) on investments 18,121 4,873 4,529 (10,581) (10,753) Net realized and unrealized gains (losses) on investments $7,800 $4,349 ($1,499) ($8,217) ($10,484) Benefit/(provision) for taxes on realized gain on investments - - - - Benefit/(provision) for taxes on unrealized appreciation (depreciation) on investments 305 339 181 (56) - Net increase (decrease) in net assets resulting from operations $30,860 $28,005 $20,385 $15,268 $9,990 Net investment income per share $0.61 $0.63 $0.59 $0.64 $0.55 Accrued but unpaid distributions $15,195 $15,195 $15,566 $15,566 $15,566 Weighted average common shares outstanding 37,061,547 37,061,547 37,061,547 37,061,547 37,061,547
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12 Portfolio Highlights Current or prospective client name
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13 1. Based on fair value of investments as of December 31, 2024. 2. At time of underwrite. 3. Includes debt investments only. 4. Represents leverage through CCAP owned investments. 5. Based on total commitments, defined as outstanding par amount plus unfunded amount. 6. Excludes LLC/LP investments and Logan JV. Excluded assets comprise less than 5% of total fair value of investments. 7. Designation of “non-cyclical” based on CCAP management’s general views on cyclicality. Management considers the following industries non-cyclical: commercial & professional services; healthcare equipment & services; software services; consumer services; insurance; pharmaceutical, biotech & life sciences; food & staples retailing; household & personal products; telecom services; and food, beverages & tobacco. Designed to minimize losses via strong credit and non-credit risk mitigation Disciplined Portfolio Construction 90% 97% 0.2x / 5.5x85% 70% 99% First Lien Floating Rate Wtd. Avg. Portfolio Company Attachment Point & Leverage Non-Cyclical Industries with Financial Covenants Sponsored Debt Positions Investments at fair value(1) $1,599mm Portfolio companies 185 Median portfolio company EBITDA(2) $29mm (1) (1),(3) (2),(3),(4),(5) (1),(6),(7) (1),(3) (3)
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14 Note: Based on CCAP’s fair value of investments as of December 31, 2024. The Company’s portfolio, at any given point in time, may be comprised of some, all or none of the asset types shown. An investment in the Company is different from a direct investment in any of the asset types shown above. 1. Based on S&P industry classification. 2. Includes debt investments only. Portfolio Diversity Diversification by Industry(1)Diversification by Obligor GeographyPortfolio Composition by Interest Rate Type(2) 27% 22% 15% 9% 5% 4% 2% 16% Health Care Equipment & Services Software & Services Commercial & Professional Services Consumer Services Insurance Diversified Financials Logan JV 14 Other Industries 15% 17% 2% 1% 65% Top 10 Next 11-25 Logan JV LLC / LP Investments Remaining 91% 7% 2% United States Europe Australia 97% 3% Floating Fixed ~$9mm / 0.5% Average Position
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27% 26% 27% 25% 24% 62% 63% 62% 64% 65% <1% <1% <1% <1% <1% 4% 3% 3% 3% 2%<1% <1% <1% <1% <1%3% 3% 3% 3% 3%3% 3% 4% 4% 4% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 15 Note: Figures may not sum due to rounding. 1. 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. 2. lncludes limited partnership interests. Conservative investment strategy with 90% of portfolio in first lien loans Investment Activity End of Period InvestmentsNew Investment Fundings At Cost. $ in millions At Fair Value. $ in millions 29% 35% 32% 24% 19% 69% 60% 60% 73% 72% 7% 5% 6% 2% 2% <1% 2% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Senior Secured First Lien Unitranche First Lien(1) Unitranche First Lien – Last Out(1) Senior Secured Second Lien Unsecured Debt LLC/LP Equity Interests (2) Equity & Other $88.5 $1,582.1 $73.9 $1,563.3 $119.3 $1,610.8 $1,591.4 $72.7 $127.2 $1,598.9
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16 1. As of quarter end. 2. Yield includes the impact of non-stated rate income producing equity investments and excludes investments on non-accrual status. Portfolio Net Interest Margin(1) 12.3% 12.3% 12.2% 11.6% 10.9% 6.1% 6.1% 6.1% 6.0% 5.9% 7.0% 7.0% 7.3% 7.2% 7.1% 5.3% 5.3% 5.3% 4.6% 4.3% 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Weighted Average Yield of Income Producing Securities (at Cost) Weighted Average Spread Over SOFR of Floating Rate Debt Investments Weighted Average Stated Interest Rate on Debt Outstanding 3 Month Term Secured Overnight Financing Rate ("SOFR") (2)
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17 Note: As part of CCAP’s monitoring process, each of our investments is graded quarterly on a risk scale of 1 to 5. Our assessment is based on the following categories: (1) Involves the least amount of risk relative to cost or amortized cost. Investment performance is above expectations since origination or acquisition. Trends and risk factors are generally favorable, which may include financial performance or a potential exit. (2) Involves a level of risk that is similar to the risk at the time of origination or acquisition. The investment is generally performing as expected, and the risks around our ability to ultimately recoup the cost of the investment are neutral to favorable relative to the time of origination or acquisition. New investments are generally assigned a rating of 2 at origination or acquisition. (3) Indicates an investment performing below expectations where the risks around our ability to ultimately recoup the cost of the investment have increased since origination or acquisition. For debt investments, borrowers are more likely than not in compliance with debt covenants and loan payments are generally not past due. An investment rating of 3 requires closer monitoring. (4) Indicates an investment performing materially below expectations where the risks around our ability to ultimately recoup the cost of the investment have increased materially since origination or acquisition. For debt investments, borrowers may be out of compliance with debt covenants and loan payments may be past due (but generally not more than 180 days past due). Non-accrual status is strongly considered for debt investments rated 4. (5) Indicates an investment performing substantially below expectations where the risks around our ability to ultimately recoup the cost of the investment have substantially increased since origination or acquisition. We do not expect to recover our initial cost basis. Investment Portfolio Performance Ratings Internal Performance Rating Migration % of Portfolio at Fair Value 2% 1% 1% <1% <1%11% 10% 10% 10% 12% 87% 89% 89% 90% 87% Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4 2024 Internal Performance Ratings 4 & 5 Internal Performance Rating 3 Internal Performance Ratings 1 & 2 (Performing Materially Below Expectations) (Performing Below Expectations) (Performing At or Above Expectations)Non-Accruals (As % of Debt Investments at Cost & FV): 2.2% / 0.9%2.0% / 1.9% 1.6% / 0.9% 1.6% / 0.9% 1.7% / 0.9%
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18 Capital Structure Current or prospective client name
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19 Note: Figures may not sum due to rounding. As of December 31, 2024. Leverage Facility Capacity represents maximum principal amount of the facility subject to borrowing base advance rates and certain other limits/restrictions. 1. Cost of debt as of quarter-end. Includes amortization of deferred financing costs. Short term flexibility of $338 million of undrawn debt capacity Liquidity Management Debt MaturitiesDebt Summary ($ in millions) ($ in millions) $297 $588 $35 $223 $80 2025 2026 2027 2028 2029 2030 Drawn Undrawn Total Committed Amount Principal Amount Outstanding Interest Rate Maturity Date SPV Asset Facility $500 $345 S+245 5/31/29 SMBC Corporate Revolving Facility 310 242 S+200 12/3/29 Series 2021A Unsecured Notes 135 135 4.00% 2/17/26 FCRX Unsecured Notes 112 112 5.00% 5/25/26 Series 2023A Unsecured Notes 50 50 7.54% 7/28/26 Series 2024A Unsecured Notes Due 2028 35 - 6.77% 2/18/28 Series 2024A Unsecured Notes Due 2030 80 - 6.90% 2/18/30 Total Debt $1,222 $884 6.38% (1)