Q2 2024 Crescent Capital BDC Inc Earnings Call Transcript
Key Points
- Crescent Capital BDC Inc (CCAP) reported strong net investment income (NII) of $0.59 per share, translating to an annualized NII return on equity of 11.7%.
- The company declared a supplemental dividend of $0.09 per share, in addition to the regular dividend of $0.42 per share, resulting in a 10% annualized dividend yield.
- Net asset value (NAV) increased to $20.30 per share, the highest since June 2022.
- The investment portfolio remains highly diversified with approximately $1.6 billion in investments across 183 companies, primarily in first lien loans.
- The portfolio's performance remains strong with 89% of investments rated as risk-rated one and two, the highest ratings possible.
- Total investment income decreased to $49 million from $50.4 million in the prior quarter, primarily due to a drop in nonrecurring investment income.
- The weighted average yield of income-producing securities at cost decreased to 12.2% quarter over quarter.
- The company has investments in eight portfolio companies on nonaccrual status, representing 1.6% and 0.9% of total debt investments at cost and fair value, respectively.
- The debt-to-equity ratio increased to 1.18 times from 1.11 times in the prior quarter, indicating higher leverage.
- The weighted average interest rate on total borrowings was 6.91%, which could impact future profitability given the current interest rate environment.
Good day, everyone and welcome to the Q2 2024 Crescent Capital BDC earnings conference call.
(Operator Instructions) Please note this call may be recorded. It is now my pleasure to turn the conference over to Dan McMahon, Head of Investor Relations. Please go ahead.
Good morning, and welcome to Crescent Capital BDC, Inc's second quarter ended June 30, 2024, earnings conference call. Please note that Crescent Capital BDC may be referred to as CCAP, Crescent BDC, or the company throughout the call.
Before we begin, I'll start with some important reminders. Comments made over the course of this call and webcast may contain forward-looking statements and are subject to risks and uncertainties, the company's actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filings.
The company assumes no obligation to update any such forward-looking statements. Please
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