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• Net Investment Income (NII): 64 per share, translating to an annualized NII return on equity of 12.6%.

• Dividend: Regular dividend of 42 per share and a supplemental dividend of 7 per share, equating to approximately a 10% annualized dividend yield.

• Net Asset Value (NAV): Decreased by 10 to $20.20 per share for the quarter.

• Investment Portfolio: Approximately $1.6 billion at fair value across 183 companies, with 90% in first lien loans.

• Nonaccruals: Investments in five portfolio companies on nonaccrual status, representing 1.7% at cost and 0.9% at fair value.

• Total Investment Income: $51.6 million, a 5% increase from the prior quarter.

• Gross Deployment: $73 million, with 97% in first lien investments.

• Weighted Average Yield: 11.6% for income-producing securities at cost.

• Interest Coverage: Improved to 1.8 times from 1.7 times in prior quarters.

• Debt to Equity Ratio: Reduced to 1.15 times from 1.18 times in the prior quarter.

• GAAP Earnings Per Share: 41 per share.

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Release Date: November 12, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Crescent Capital BDC Inc (NASDAQ:CCAP) reported solid earnings with a net investment income of 64 per share, translating to an annualized return on equity of 12.6%.

• The company declared a supplemental dividend of 7 per share, in addition to the regular dividend of 42 per share, resulting in an approximately 10% annualized dividend yield.

• CCAP maintains a highly diversified portfolio with approximately $1.6 billion in investments across 183 companies, focusing primarily on first lien loans.

• The portfolio's credit performance remains strong, with nonaccruals well below the industry average, and 90% of the portfolio receiving the highest performance ratings.

• The company has significant liquidity with $317 million of undrawn capacity and $38 million in cash, supporting further investment activity within their target leverage range.

Negative Points

• Net asset value (NAV) decreased by 10 to $20.20 per share, primarily due to net unrealized losses.

• The weighted average yield of income-producing securities decreased to 11.6% due to a reduction in base rates and the realization of higher-yielding assets.

• The percentage of total investment income from payment-in-kind (PIK) income increased to 8.2%, with a portion attributed to nonrecurring credit events.

• The supplemental dividend was capped at 7 due to a mechanism limiting NAV reduction, indicating constraints on dividend payouts.

• Market conditions have led to spread compression, particularly in the upper middle market, which could impact future earnings potential.