Q3 2024 Crescent Capital BDC Inc Earnings Call Transcript
Key Points
- Crescent Capital BDC Inc (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.
- 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.
Good day, everyone and welcome to the third quarter, 2024 Crescent Capital BDC Inc earnings conference call. (Operator Instructions) Please note today's call will be recorded and we will be standing by if you should need any assistance.
It is now my pleasure to turn today's conference over to Dan mcmahon.
Good morning and welcome to Crescent Capital BDC Inc, third quarter ended September 30th 2024 Bernie's conference call.
Please note that Crescent Capital B DC may be referred to as CC A, Crescent B DC or the company throughout the call before we begin. I'll start with some important reminders, comments made over the course of this conference 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
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