On May 29, 2024, Carlyle Credit Income Fund (CCIF, Financial) released its 8-K filing for the second quarter ending March 31, 2024. Carlyle Credit Income Fund is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to generate current income, with a secondary objective to generate capital appreciation. The Fund seeks to achieve its investment objective by investing primarily in equity and junior debt tranches of collateralized loan obligations (CLOs), which are collateralized by a portfolio consisting primarily of below-investment-grade U.S. senior secured loans with a large number of distinct underlying borrowers across various industry sectors.
Performance Highlights
For the second quarter of 2024, Carlyle Credit Income Fund reported net investment income of $0.33 per common share, aligning with analyst estimates. The Fund's net asset value (NAV) per common share stood at $7.88 as of March 31, 2024. The total fair value of investments was $142.1 million at the end of the quarter.
Lauren Basmadjian, CCIF’s Chief Executive Officer, commented, “As of quarter end, we have successfully deployed the remaining proceeds from the preferred stock offering into new CLO equity positions. Our diversified portfolio of CLO investments is producing historically high cash distributions, further supporting our original investment thesis of rotating the fund into a CLO investing strategy.”
Financial Achievements
During the quarter, the Fund achieved several key milestones:
- Deployed the remaining proceeds from the preferred stock offering with a weighted average GAAP yield of 19.4%. The aggregate portfolio weighted average GAAP yield was 20.8% as of March 31, 2024.
- Maintained the monthly dividend of 10.5 cents through August 2024, equating to a 15.95% annualized dividend based on share price as of May 28, 2024.
- Sold 570,000 common shares in connection with the ATM offering program at a premium to NAV for net proceeds of $4.5 million.
Dividend Declarations
CCIF is maintaining a monthly dividend on shares of the Fund’s common stock of $0.1050 per share for June, July, and August 2024. This monthly dividend represents an annualized yield of 15.95% based on the closing share price of $7.90 on May 28, 2024.
| Security | Amount per Share | Record Dates | Payable Dates |
|---|---|---|---|
| Common Stock | $0.1050 | June 17, 2024 | June 28, 2024 |
| July 19, 2024 | July 31, 2024 | ||
| August 20, 2024 | August 30, 2024 |
Additionally, CCIF declared dividends on shares of the Fund’s 8.75% Series A Term Preferred Shares of $0.1823 per share for June, July, and August 2024.
| Security | Amount per Share | Record Dates | Payable Dates |
|---|---|---|---|
| Series A Preferred Shares | $0.1823 | June 17, 2024 | June 28, 2024 |
| July 19, 2024 | July 31, 2024 | ||
| August 20, 2024 | August 30, 2024 |
Analysis and Outlook
The successful deployment of proceeds from the preferred stock offering into new CLO equity positions with a high GAAP yield underscores the Fund's strategic focus on generating substantial cash distributions. Maintaining a high dividend yield is crucial for attracting and retaining investors, particularly in the asset management industry where income generation is a key performance metric.
CCIF's ability to sell common shares at a premium to NAV and generate net proceeds of $4.5 million reflects investor confidence in the Fund's strategy and management. The continued high yield on the portfolio and the maintenance of dividends are positive indicators of the Fund's financial health and operational efficiency.
Investors and stakeholders can look forward to the Fund's conference call on May 30, 2024, at 10:00 a.m. EDT to discuss these results in further detail. Registration for the conference call is available at this link.
Explore the complete 8-K earnings release (here) from Carlyle Credit Income Fund for further details.
