Crescent Capital BDC, Inc.
For the period ended Mar 31, 2025. Filed May 14, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed May 14, 2025
CCAP$9.38-0.7%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-11-12.
0000950170-24-124474
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-05-14.
0000950170-25-071368
Item 2. Management's Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 129 previous paragraphs and 123 current paragraphs.
98 unchanged; 18 reworded; 6 added; 12 removed; 1 previous and 1 current paragraphs rearranged.
Tables are not compared: 11 previous and 11 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (6)
Current report
For the three months ended March 31, 2025 and 2024, we incurred management fees, net of waivers, of $5.0 million and $5.0 million, respectively.
Current report
For the three months ended March 31, 2025 and 2024, other general and administrative expenses were $1.0 million and $0.5 million, respectively. The increase is related to higher costs primarily related to certain one-time administrative fees.
Current report
On April 10, 2025, the commitment amount was reduced from $500.0 million to $400.0 million. See Recent Developments for detail.
Current report
On October 27, 2021, we entered into a senior secured revolving credit agreement, as amended from time to time, with Sumitomo Mitsui Banking Corporation, as administrative agent, collateral agent and lender (the “SMBC Corporate Revolving Facility”). On December 3, 2024, we amended the SMBC Corporate Revolving Facility. The amendment, among other things,(i) decreased the size of the aggregate revolving commitment from $350.0 million to $285.0 million, (ii) added an initial term commitment of $25.0 million for an aggregate facility size of $310.0 million, (iii) increased the interest rate by 0.125% so that borrowings under the revolving commitment will bear interest at the applicable benchmark rate plus 2.000% or 2.125%, subject to certain provisions, (iii) extended the facility termination to December 3, 2029 and (iv) extended the facility revolving commitment period termination to December 1, 2028.
Current report
Series 2024A Unsecured Notes - 2028 and 2030
Current report
On February 18, 2025, we issued $115.0 million aggregate principal amount of two tranches of senior unsecured notes: (a) $35.0 million 6.77% notes due February 18, 2028 ("Series 2024A Unsecured Notes - 2028") and (b) $80.0 million 6.90% notes due February 18, 2030 ("Series 2024A Unsecured Notes – 2030") . Interest on both unsecured notes will be payable semiannually, on the 18th day of February and August in each year, commencing with August 18, 2025. Both tranches may be redeemed in whole or in part, at the Company’s option, at any time or from time to time at par plus a “make-whole” premium, if applicable.
Removed paragraphs (12)
Previous report
“First lien” investments are senior loans on a lien basis to other liabilities in the issuer’s capital structure that have the benefit of a first-priority security interest in assets of the issuer. The security interest ranks above the security interest of any second-lien lenders in those assets.
Previous report
“Unitranche first lien” investments are 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, we 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 we would continue to hold. In exchange for the greater risk of loss, the “last out” portion earns a higher interest rate.
Previous report
“Second lien” investments are loans with a second priority lien on all existing and future assets of the portfolio company. The security interest ranks below the security interests of any first lien and unitranche first lien lenders in those assets.
Previous report
“Unsecured debt” investments are loans that generally rank senior to a borrower’s equity securities and junior in right of payment to such borrower’s other senior indebtedness.
Previous report
Excludes $335.0 million of assets at cost acquired in connection with the FCRD Acquisition. The assets acquired, at cost, were comprised of $185.1 million of Senior Secured First Lien, $100.1 million of Unitranche First Lien, $2.8 million of Equity investments, and $47.0 million of LLC/LP Equity Interests
Previous report
Dividend income decreased from $9.9 million for the nine months ended September 30, 2023 to $8.9 for the nine months ended September 30, 2024 due to lower dividend income from portfolio companies. For the nine months ended September 30, 2024 and 2023, we recorded $2.4 million and $0.8 million of other income related to one-time arranger fees, respectively.
Previous report
For the three months ended September 30, 2024 and 2023, we incurred management fees of $5.1 million and $5.1 million, respectively, of which $0.0 million and $0.1 million, respectively, were waived. For the nine months ended September 30, 2024 and 2023 we incurred management fees of $15.1 million and $14.5 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 report
For the three months ended September 30, 2024 and 2023, other general and administrative expenses were $0.5 million and $0.5 million, respectively. For the nine months ended September 30, 2024 and 2023, other general and administrative expenses were $1.9 million and $2.1 million, respectively.
Previous report
Capital Share Activity
Previous report
In connection with the FCRD Acquisition, we issued 6,174,187 shares as part of the consideration paid for net assets acquired.
Previous report
Series 2020A Unsecured Notes
Previous report
On July 30, 2020, we completed a private offering of $50.0 million aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023 (the “Series 2020A Unsecured Notes”). The Series 2020A Unsecured Notes were issued in two $25.0 million issuances on July 30, 2020 and October 28, 2020. On July 28, 2023, Series 2020A Unsecured Notes were repaid upon the issuance of the Series 2023A Unsecured Notes, as defined below.
Reworded paragraphs (18)
Previous wording
Our investment activities are managed by the Adviser, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“Crescent”), pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals. On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, “Sun Life”) acquired a majority interest in Crescent (the “Sun Life Transaction”). There were no changes to our investment objective, strategies and process or to the Crescent team responsible for the investment operations as a result of the Sun Life Transaction.
Current wording
Our investment activities are managed by the Adviser, which is responsible for originating prospective investments, conducting research and due diligence investigations on potential investments, analyzing investment opportunities, negotiating and structuring our investments and monitoring our investments and portfolio companies on an ongoing basis. The Adviser has entered into a resource sharing agreement with Crescent Capital Group LP (“Crescent”), pursuant to which Crescent provides the Adviser with experienced investment professionals (including the members of the Adviser’s investment committee) and access to Crescent’s resources so as to enable the Adviser to fulfill its obligations under the Investment Advisory Agreement. Through the resource sharing agreement, the Adviser intends to capitalize on the deal origination, credit underwriting, due diligence, investment structuring, execution, portfolio management and monitoring experience of Crescent’s investment professionals.
Previous wording
As of September 30, 2024, we had fourteen investments across five portfolio companies on non-accrual status, which represented 1.7% 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 September 30, 2024 and December 31, 2023.
Current wording
As of March 31, 2025, we had twenty two investments across nine portfolio companies on non-accrual status, which represented 3.5% and 1.8% of the total debt investments at cost and fair value, respectively. As of December 31, 2024, we had seventeen investments across nine portfolio companies on non-accrual status, which represented 2.2% and 0.9% 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, 2025 and December 31, 2024.
Previous wording
Interest income, which includes amortization of upfront fees, increased from $44.6 million, for the three months ended September 30, 2023, to $47.8 million for the three months ended September 30, 2024, due to a rise in one-time non-recurring income. Included in interest from investments for the three months ended September 30, 2024 and 2023 are $1.4 million and $0.4 million of accelerated accretion of OID related to paydown activity, respectively.
Current wording
Interest income, which includes amortization of upfront fees, decreased from $46.2 million for the three months ended March 31, 2024, to $39.7 million for the three months ended March 31, 2025, primarily due to a decline in benchmark rates. Included in interest from investments for the three months ended March 31, 2025 and 2024 are $0.8 million and $0.9 million of accelerated accretion of OID related to paydown activity, respectively.
Previous wording
Dividend income decreased from $3.2 million for the three months ended September 30, 2023 to $3.0 million for the three months ended September 30, 2024 due to lower dividend income from portfolio companies. For the three months ended September 30, 2024 and 2023, we recorded $0.8 million and $0.4 million of other income related to one-time arranger fees, respectively.
Current wording
Dividend income decreased from $3.3 million for the three months ended March 31, 2024 to $1.5 million for the three months ended March 31, 2025 due to lower dividend income from our investment in First Eagle Logan JV, LLC. For the three months ended March 31, 2025 and 2024, we recorded $0.9 million and $0.9 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 September 30, 2024 and 2023 interest and other debt financing costs were $16.1 million and $15.4 million, respectively. For the nine months ended September 30, 2024 and 2023 interest and other debt financing costs were $47.6 million and $43.0 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 March 31, 2025 and 2024 interest and other debt financing costs were $14.6 million and $15.6 million, respectively. The decrease in interest and other debt financing costs was due to lower weighted average cost of debt related to a decline in benchmark rates offset by higher weighted average outstanding balance.
Previous wording
For the three months ended September 30, 2024 and 2023, we incurred income based incentive fees of $5.0 million and $4.6 million, of which $0.1 million and $0.1 million, respectively, were waived. For the nine months ended September 30, 2024 and 2023, we incurred income based incentive fees of $14.5 million and $12.6 million, of which $0.1 million and $0.2 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 March 31, 2025 and 2024, we incurred income based incentive fees, net of waivers, of $3.5 million and $4.9 million, respectively. The decrease in net incentive fees was driven by lower pre-incentive fee net investment income.
Previous wording
For the three months ended September 30, 2024 and 2023, professional fees were $0.6 million and $0.4 million, respectively. For the nine months ended September 30, 2024 and 2023, professional fees were $1.5 million and $1.1 million, respectively. The increase is related to higher costs related to regulatory compliance.
Current wording
For the three months ended March 31, 2025 and 2024, professional fees were $0.7 million and $0.4 million, respectively. The increase is primarily related to higher costs related to regulatory compliance.
Previous wording
For the three months ended September 30, 2024 and 2023, we expensed income and excise taxes of $0.7 million and $0.4 million, respectively. For the nine months ended September 30, 2024 and 2023, we expensed income and excise taxes of $1.5 million and $0.9 million, respectively, due to higher undistributed taxable income balance.
Current wording
For the three months ended March 31, 2025 and 2024, we expensed income and excise taxes of $0.5 million and $0.4 million, respectively, due to higher undistributed taxable income balance.
Previous wording
For the three months ended September 30, 2024 and 2023, net investment income was $23.5 million or $0.64 per share and $21.8 million or $0.59 per share, respectively. For the nine months ended September 30, 2024 and 2023, net investment income was $68.5 million or $1.85 per share and $59.8 million or $1.68 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 March 31, 2025 and 2024, net investment income was $16.6 million or $0.45 per share and $23.4 million or $0.63 per share, respectively. The decrease in the per share net investment income was due to lower investment income earned year to date.
Previous wording
During the nine months ended September 30, 2024 and 2023, our average U.S. Dollar notional exposure, calculated daily on a weighted average based on the duration of each forward contract, to foreign currency forward contracts were $77.5 million and $99.4 million, respectively.
Current wording
During the three months ended March 31, 2025 and 2024, our average U.S. Dollar notional exposure, calculated daily on a weighted average based on the duration of each forward contract, to foreign currency forward contracts were $64.8 million and $63.2 million, respectively.
Previous wording
As of September 30, 2024, we had $37.8 million in cash and cash equivalents and restricted cash and cash equivalents and $317.0 million of undrawn capacity on our senior revolving credit and special purpose vehicle asset facilities, subject to borrowing base and other limitations. As of September 30, 2024, the undrawn capacity under our facilities and cash and cash equivalents were in excess of our unfunded commitments.
Current wording
As of March 31, 2025, we had $30.5 million in cash and cash equivalents and restricted cash and cash equivalents and $310.0 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, 2025, 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 nine months ended September 30, 2024 and 2023 was 7.23% and 6.96%, respectively. The combined weighted average debt of the aggregate borrowings outstanding for the nine months ended September 30, 2024 and 2023 was $878.9 million and $825.6 million, respectively. As of September 30, 2024 and December 31, 2023, the weighted average cost of debt was 6.59% and 7.02%, respectively.
Current wording
The combined weighted average interest rate of the aggregate borrowings outstanding for the three months ended March 31, 2025 and 2024 was 6.49% and 6.97%, respectively. The combined weighted average debt of the aggregate borrowings outstanding for the three months ended March 31, 2025 and 2024 was $902.4 million and $858.6 million, respectively. As of March 31, 2025 and December 31, 2024, the weighted average cost of debt was 6.36% and 6.38%, respectively.
Previous wording
On October 27, 2021, we entered into a senior secured revolving credit agreement, as amended from time to time, with Sumitomo Mitsui Banking Corporation, as administrative agent, collateral agent and lender (the “SMBC Corporate Revolving Facility”). The maximum principal amount of the SMBC Corporate Revolving Facility is $385.0 million, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at adjusted SOFR plus 1.875% or 2.000%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no benchmark rate floor. We pay unused facility fees of 0.375% per annum on committed but undrawn amounts under the SMBC Corporate Revolving Facility. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on October 27, 2026.
Current wording
The maximum principal amount of the SMBC Corporate Revolving Facility is $310.0 million, comprised of $25.0 million term loan and $285.0 million revolving commitment, subject to availability under the borrowing base. Borrowings under the SMBC Corporate Revolving Facility bear interest at adjusted SOFR plus 2.000% or 2.125%, subject to certain provisions in the SMBC Corporate Revolving Facility agreement, with no benchmark rate floor. We pay unused facility fees of 0.375% per annum on committed but undrawn amounts under the SMBC Corporate Revolving Facility. Any amounts borrowed under the SMBC Corporate Revolving Facility, and all accrued and unpaid interest, will be due and payable, on December 3, 2029.
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,
Current wording
On March 9, 2023, in connection with the acquisition of First Eagle Alternative Capital BDC, Inc., 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
Previous wording
The summary of costs incurred in connection with the SPV Asset Facility, SMBC Corporate Revolving Facility, Series 2020A Unsecured Notes, Series 2021A Unsecured Notes, Series 2023A Unsecured Notes and FCRX Unsecured Notes is presented below:
Current wording
The summary of costs incurred in connection with our credit facilities and unsecured debt is presented below:
Previous wording
As of September 30, 2024 and December 31, 2023, our asset coverage ratio was 186% 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 March 31, 2025 and December 31, 2024, our asset coverage ratio was 179% and 183%, 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 September 30, 2024 and December 31, 2023, we had aggregate unfunded commitments totaling $200.1 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 March 31, 2025 and December 31, 2024, we had aggregate unfunded commitments totaling $212.4 million and $212.5 million, respectively.
Previous wording
On November 6, 2024, our Board of Directors declared a regular fourth quarter cash dividend of $0.42 per share, which will be paid on January 15, 2025 to stockholders of record as of December 31, 2024. Additionally, the Board declared a supplemental cash dividend of $0.07 per share which will be paid on December 16, 2024 to stockholders of record as of November 29, 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 May 8, 2025, our Board of Directors declared a regular second quarter cash dividend of $0.42 per share, which will be paid on July 15, 2025 to stockholders of record as of June 30, 2025.
Rearranged current paragraphs (1)
Current report — wording carried from elsewhere
On April 10, 2025, CCAP SPV entered into the Eighth Amendment to Loan and Security Agreement. The amendment, among other things, (a) reduced the spread from 2.45% to 1.95%, and (b) reduced the facility size from $500.0 million to $400.0 million.
Rearranged previous paragraphs (1)
Previous report — wording carried elsewhere
Interest income, which includes amortization of upfront fees, increased from $123.5 million, for the nine months ended September 30, 2023, to $139.6 for the nine months ended September 30, 2024, due to a rise in benchmark rates and one-time income. Included in interest from investments for the nine months ended September 30, 2024 and 2023 are $3.2 million and $0.7 million of accelerated accretion of OID related to paydown activity, respectively.