The following is a summary of the Crescent Capital BDC, Inc. (CCAP) Q2 2024 Earnings Call Transcript:

Financial Performance:

• Crescent Capital BDC, Inc. reported a Net Investment Income (NII) of $0.59 per share for Q2 2024, translating to an annualized NII return on equity of 11.7%.

• The company declared a supplemental dividend for Q2 of $0.09 per share, in addition to a regular dividend of $0.42 per share, resulting in a 10% annualized dividend yield based on the NAV as of June 30, 2024.

• Net asset value per share increased to $20.30, the highest since June 2022.

• Total investment income for the quarter was $49 million, slightly down from $50.4 million in the previous quarter, primarily due to a decrease in nonrecurring investment income.

Business Progress:

• Crescent BDC focuses on the lower and core middle market segments, avoiding high-competition mega tranche deals, and maintains a diversified portfolio of first lien loans.

• The portfolio ended Q2 2024 with approximately $1.6 billion invested across 183 companies, reflecting a focus on noncyclical industries with strong cash flow generation.

• During Q2, Crescent deployed $119 million, primarily in senior secured first lien loans, while aggregate exits and repayments were approximately $73 million.

• Investment strategy includes partnering with well-capitalized private equity sponsors, and the portfolio is structured to be resilient with robust monitoring and collateral protection.

Opportunities:

• Crescent BDC's focus on noncyclical industries and strong sponsorship backing presents opportunities for steady growth and risk mitigation.

• The company's strategic positioning in the lower and core middle markets allows for significant deal-making potential with favorable terms compared to more crowded upper-market segments.

Risks:

• Elevated interest rates may impact the borrowing costs for portfolio companies, which could affect their operating performance and liquidity needs.

• The competitive landscape in private credit could pressure yields and terms, although Crescent BDC's focused strategy mitigates this to an extent.

More details: Crescent Capital BDC IR

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