Crescent Capital BDC Inc

Previous wording

As of March 31, 2024, we had thirteen investments across seven portfolio companies on non-accrual status, which represented 1.6% and 0.9% of the total debt investments at cost and fair value, respectively. As of December 31, 2023, we had seventeen investments across nine portfolio companies on non-accrual status, which represented 2.0% and 1.9% of the total debt investments at cost and fair value, respectively. The remaining debt investments were performing and current on their interest payments as of March 31, 2024 and December 31, 2023.

Current wording

As of June 30, 2024, we had fifteen investments across eight portfolio companies on non-accrual status, which represented 1.6% and 0.9% of the total debt investments at cost and fair value, respectively. As of December 31, 2023, we had seventeen investments across nine portfolio companies on non-accrual status, which represented 2.0% and 1.9% of the total debt investments at cost and fair value, respectively. The remaining debt investments were performing and current on their interest payments as of June 30, 2024 and December 31, 2023.

Previous wording

Interest income, which includes amortization of upfront fees, increased from $35.9 million, for the three months ended March 31, 2023, to $46.2 million for the three months ended March 31, 2024, due to a rise in benchmark rates. Included in interest from investments for the three months ended March 31, 2024 and 2023 are $0.9 million and $0.1 million of accelerated accretion of OID related to paydown activity, respectively.

Current wording

Interest income, which includes amortization of upfront fees, increased from $43.1 million, for the three months ended June 30, 2023, to $45.5 million for the three months ended June 30, 2024, due to a rise in benchmark rates. Included in interest from investments for the three months ended June 30, 2024 and 2023 are $0.9 million and $0.1 million of accelerated accretion of OID related to paydown activity, respectively.

Previous wording

Dividend income decreased from $3.4 million for the three months ended March 31, 2023 to $3.3 million for the three months ended March 31, 2024. For the three months ended March 31, 2024 and 2023, we recorded $0.9 million and $0.0 million of other income related to one-time amendment and arranger fees, respectively.

Current wording

Dividend income decreased from $3.4 million for the three months ended June 30, 2023 to $2.6 million for the three months ended June 30, 2024 due to lower dividend income from portfolio companies. For the three months ended June 30, 2024 and 2023, we recorded $0.8 million and $0.2 million of other income related to one-time arranger fees, respectively.

Previous wording

Interest and other debt financing costs include interest, amortization of deferred financing costs including upfront commitment fees and unused fees on our credit facilities. For the three months ended March 31, 2024 and 2023 interest and other debt financing costs were $15.6 million and $12.4 million, respectively. The increase in interest and other debt financing costs was due to a higher weighted average debt outstanding and higher weighted average cost of debt related to a rise in benchmark rates.

Current wording

Interest and other debt financing costs include interest, amortization of deferred financing costs including upfront commitment fees and unused fees on our credit facilities. For the three months ended June 30, 2024 and 2023 interest and other debt financing costs were $15.9 million and $15.3 million, respectively. For the six months ended June 30, 2024 and 2023 interest and other debt financing costs were $31.5 million and $27.6 million, respectively. The increase in interest and other debt financing costs was due to a higher weighted average debt outstanding and higher weighted average cost of debt related to a rise in benchmark rates.

Previous wording

For the three months ended March 31, 2024 and 2023, we incurred management fees of $5.0 million and $4.5 million, respectively, of which $0.0 million and $0.1 million, respectively, were waived. The increase in net management fees was driven by growing assets under management.

Current wording

For the three months ended June 30, 2024 and 2023, we incurred management fees of $5.0 million and $5.0 million, respectively, of which $0.0 million and $0.1 million, respectively, were waived. For the six months ended June 30, 2024 and 2023 we incurred management fees of $10.0 and $9.5 million, respectively, of which $0.1 million and $0.1 million, respectively, were waived. The increase in net management fees was driven by growing assets under management.

Previous wording

For the three months ended March 31, 2024 and 2023, we incurred income based incentive fees of $4.9 million and $3.7 million, of which $0.0 million and $0.1 million, respectively, were waived. The increase in net incentive fees was driven by higher pre-incentive fee net investment income.

Current wording

For the three months ended June 30, 2024 and 2023, we incurred income based incentive fees of $4.6 million and $4.3 million, of which $0 and $0.1 million, respectively, were waived. For the six months ended June 30, 2024 and 2023, we incurred income based incentive fees of $9.5 million and $8.0 million, of which $0.0 million and $0.1 million, respectively, were waived. The increase in net incentive fees was driven by higher pre-incentive fee net investment income.

Previous wording

For the three months ended March 31, 2024 and 2023, professional fees were $0.4 million and $0.3 million, respectively.

Current wording

For the three months ended June 30, 2024 and 2023, professional fees were $0.5 million and $0.4 million, respectively. For the six months ended June 30, 2024 and 2023, professional fees were $0.9 million and $0.7 million, respectively.

Previous wording

For the three months ended March 31, 2024 and 2023, other general and administrative expenses were $0.5 million and $0.7 million, respectively.

Current wording

For the three months ended June 30, 2024 and 2023, other general and administrative expenses were $0.6 million and $0.9 million, respectively. For the six months ended June 30, 2024 and 2023, other general and administrative expenses were $1.4 million and $1.6 million, respectively.

Previous wording

For the three months ended March 31, 2024 and 2023, we expensed income and excise taxes of $0.4 million and $0.2 million, respectively.

Current wording

For the three months ended June 30, 2024 and 2023, we expensed income and excise taxes of $0.4 million and $0.3 million, respectively. For the six months ended June 30, 2024 and 2023, we expensed income and excise taxes of $0.8 million and $0.5 million, respectively, due to higher undistributed taxable income balance.

Previous wording

For the three months ended March 31, 2024 and 2023, net investment income was $23.4 million or $0.63 per share and $17.5 million or $0.54 per share, respectively. The increase in the per share net investment income was due to higher investment income earned year to date.

Current wording

For the three months ended June 30, 2024 and 2023, net investment income was $21.7 million or $0.59 per share and $20.6 million or $0.56 per share, respectively. For the six months ended June 30, 2024 and 2023, net investment income was $45.0 million or $1.21 per share and $38.0 million or $1.09 per share, respectively.The increase in the per share net investment income was due to higher investment income earned year to date.

Previous wording

During the three months ended March 31, 2024 and 2023, our average U.S. Dollar notional exposure to foreign currency forward contracts were $63.2 million and $99.4 million, respectively.

Current wording

During the six months ended June 30, 2024 and 2023, our average U.S. Dollar notional exposure, calculated quarterly, of foreign currency forward contracts were $55.0 million and $99.4 million, respectively.

Previous wording

As of March 31, 2024, we had $31.9 million in cash and cash equivalents and restricted cash and cash equivalents and $343.6 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of March 31, 2024, the undrawn capacity under our facilities and cash and cash equivalents were in excess of our unfunded commitments.

Current wording

As of June 30, 2024, we had $36.1 million in cash and cash equivalents and restricted cash and cash equivalents and $293.8 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of June 30, 2024, the undrawn capacity under our facilities and cash and cash equivalents were in excess of our unfunded commitments.

Previous wording

The combined weighted average interest rate of the aggregate borrowings outstanding for the three months ended March 31, 2024 and 2023 was 7.29% and 6.73%, respectively. The combined weighted average debt of the aggregate borrowings outstanding for the three months ended March 31, 2024 and 2023 was $858.6 million and $735.2 million, respectively. As of March 31, 2024 and December 31, 2023, the weighted average cost of debt was 6.97% and 7.02%, respectively.

Current wording

The combined weighted average interest rate of the aggregate borrowings outstanding for the six months ended June 30, 2024 and 2023 was 7.26% and 6.82%, respectively. The combined weighted average debt of the aggregate borrowings outstanding for the six months ended June 30, 2024 and 2023 was $869.3 million and $810.8 million, respectively. As of June 30, 2024 and December 31, 2023, the weighted average cost of debt was 6.91% and 7.02%, respectively.

Previous wording

The maximum commitment amount under the SPV Asset Facility is $500.0 million, and may be increased with the consent of Wells Fargo or reduced upon our request. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to us in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of (a) the date the borrower voluntarily reduces the commitments to zero, (b) March 7, 2028 and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at daily simple SOFR plus a 2.75% margin with no floor. We pay unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The unused facility fee rate may vary based on the utilization. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Current wording

The maximum commitment amount under the SPV Asset Facility is $500.0 million, and may be increased with the consent of Wells Fargo or reduced upon our request. Proceeds of the advances under the SPV Asset Facility may be used to acquire portfolio investments, to make distributions to us in accordance with the SPV Asset Facility, and to pay related expenses. The maturity date is the earlier of (a) the date the borrower voluntarily reduces the commitments to zero, (b) May 31, 2029 and (c) the date upon which Wells Fargo declares the obligations due and payable after the occurrence of an Event of Default. Borrowings under the SPV Asset Facility bear interest at daily simple SOFR plus a 2.45% margin with no floor. We pay unused facility fees of 0.50% per annum on committed but undrawn amounts under the SPV Asset Facility. The unused facility fee rate may vary based on the utilization. The SPV Asset Facility includes customary covenants, including certain limitations on the incurrence of additional indebtedness and liens, as well as usual and customary events of default for revolving credit facilities of this nature.

Previous wording

On March 9, 2023, in connection with the FCRD Acquisition, we assumed $111.6 million of unsecured notes ("FCRX Unsecured Notes"). The FCRX Unsecured Notes mature on May 25, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The FCRX Unsecured Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30, September 30 and December 30 of each year. The FCRX Unsecured Notes trade on the New York Stock Exchange under the trading symbol “FCRX”.

Current wording

On March 9, 2023, in connection with the FCRD Acquisition, we assumed $111.6 million of unsecured notes ("FCRX Unsecured Notes"). The FCRX Unsecured Notes mature on May 25, 2026 and may be redeemed in whole or in part at any time or from time to time at the Company’s option at a redemption price of 100% of the outstanding principal amount thereof plus accrued and unpaid interest payments otherwise payable for the then-current quarterly interest period accrued to but not including the date fixed for redemption. The FCRX Unsecured Notes bear interest at a rate of 5.00% per year payable quarterly on March 30, June 30,

Previous wording

As of March 31, 2024 and December 31, 2023, our asset coverage ratio was 189% and 186%, respectively. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities.

Current wording

As of June 30, 2024 and December 31, 2023, our asset coverage ratio was 184% and 186%, respectively. We may also refinance or repay any of our indebtedness at any time based on our financial condition and market conditions. See Note 6. Debt to our consolidated financial statements for more detail on the debt facilities.

Previous wording

Our investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on our Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. As of March 31, 2024 and December 31, 2023, we had aggregate unfunded commitments totaling $171.0 million and $175.0 million, respectively.

Current wording

Our investment portfolio may contain investments that are in the form of lines of credit or unfunded commitments which require us to provide funding when requested by portfolio companies in accordance with the terms of the underlying agreements. Unfunded commitments to provide funds to portfolio companies are not reflected on our Consolidated Statements of Assets and Liabilities. These commitments are subject to the same underwriting and ongoing portfolio maintenance as are the on-balance sheet financial instruments that we hold. Since these commitments may expire without being drawn, the total commitment amount does not necessarily represent future cash requirements. As of June 30, 2024 and December 31, 2023, we had aggregate unfunded commitments totaling $200.4 million and $175.0 million, respectively.

Previous wording

On May 2, 2024, our Board of Directors declared a regular second quarter cash dividend of $0.42 per share, which will be paid on July 15, 2024 to stockholders of record as of June 28, 2024. Additionally, our Board declared a supplemental cash dividend of $0.11 per share which will be paid on June 17, 2024 to stockholders of record as of May 31, 2024. The supplemental dividend is calculated as 50% of quarterly net investment income in excess of our regular quarterly dividend, subject to certain measurement tests and rounded to the nearest penny.

Current wording

On August 7, 2024, our Board of Directors declared a regular third quarter cash dividend of $0.42 per share, which will be paid on October 15, 2024 to stockholders of record as of September 30, 2024. Additionally, our Board declared a supplemental cash dividend of $0.09 per share which will be paid on September 16, 2024 to stockholders of record as of August 31, 2024. The supplemental dividend is calculated as 50% of quarterly net investment income in excess of our regular quarterly dividend, subject to certain measurement tests and rounded to the nearest penny.