AP NEWS
Press release content from PR Newswire. The AP news staff was not involved in its creation.
PRESS RELEASE: Paid content from PR Newswire
Press release content from PR Newswire. The AP news staff was not involved in its creation.

Investcorp Credit Management BDC, Inc. Reports Results for its Fiscal First Quarter Ended September 30, 2019

November 13, 2019
(PRNewsfoto/Investcorp)
(PRNewsfoto/Investcorp)

NEW YORK, Nov. 12, 2019 /PRNewswire/ -- Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal first quarter ended September 30, 2019. The Company was formerly known as CM Finance Inc until August 30, 2019.

HIGHLIGHTS

Portfolio results, as of September 30, 2019:


Total assets

$319.3mm

Investment portfolio, at fair value

$302.2mm

Net assets

$138.8mm

Weighted average yield on debt investments, at cost

10.44%

Net asset value per share

$10.19

Portfolio activity in the current quarter:


Number of new investments

4

Total capital invested

$20.3mm

Proceeds from repayments, sales, and amortization

$21.5mm

Number of portfolio companies, end of period

33

Net investment income (NII)

$3.5mm

Net investment income per share

$0.26

Net decrease in net assets from operations

$0.9mm

Net decrease in net assets from operations per share

$0.07

Quarterly per share distribution paid on October 16, 2019

$0.25

Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said, “On August 30th, we officially became part of the Investcorp credit platform. Our BDC was officially renamed, but our focus remains the same – originating secured lending opportunities to provide the best possible risk-adjusted returns to our stockholders. The team and I are excited by the deal flow we are already seeing as part of a larger firm. We recognize that volatility is increasing in the leveraged finance markets and we’re confident that we are very well positioned to create unique investment opportunities as the broader environment begins to shift.”

On November 6, 2019, the Company’s Board of Directors (the “Board”) declared a distribution for the quarter ending December 31, 2019 of $0.25 per share, payable on January 2, 2020, to stockholders of record as of December 13, 2019. This represents a 14.77% yield on the Company’s $6.77 share price as of market close on November 11, 2019. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the distribution to be comprised of a return of capital. The tax status of distributions will be determined at the end of the taxable year.

Portfolio and Investment Activities

During the quarter, the Company made investments in four portfolio companies, of which three were new portfolio companies, and one was an existing portfolio company. The aggregate capital invested during the quarter totaled $20.3mm at cost, and investments were made at a weighted average yield of 8.18%.

The Company realized $21.5mm of repayments, sales, and amortization, including sales of FPC Holdings, Immucor, PR Wireless, and Sears Holding Company, as well as the sale of a portion of the Company’s position in Specialty Building Products Holdings. The Company realized and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $4.4mm, or $0.33 per share. The total net decrease in net assets resulting from operations for the quarter was $0.9mm, or $0.07 per share.

As of September 30, 2019, the Company’s investment portfolio consisted of investments in 33 portfolio companies, of which 77.9% were first lien investments, 18.4% were second lien investments, and 3.7% were unitranche loans. The Company’s debt portfolio consisted of 96.8% floating rate investments and 3.2% fixed rate investments.

As of September 30, 2019, the Company had one investment on non-accrual status, the Term Loan B of Fusion Connect Inc.

Capital Resources

As of September 30, 2019, the Company had $3.4mm in cash, $7.4mm in restricted cash and $11.0mm of capacity under its revolving credit facility with UBS AG, London Branch.

Subsequent Events

On October 18, 2019, the Company closed the public offering of $15mm in aggregate principal amount of additional 6.125% notes due 2023 (the “Notes”). The Notes constitute a further issuance of, rank equally in right of payment with, and form a single series with the $34.5mm in aggregate principal amount of the 6.125% Notes due 2023 that the Company initially issued on July 2, 2018 and July 12, 2018. On November 7, 2019, the underwriters exercised their option to purchase an additional $1.875 million in aggregate principal of the Notes. The total net proceeds received by the Company from the sale of the Notes, including the exercise of the underwriters’ option, was approximately $16.4mm, based on the purchase price paid by the underwriters of 96.875% of the aggregate principal amount of the Notes, after deducting estimated offering expenses of approximately $255,000 payable by the Company.

Subsequent to September 30, 2019 and through November 11, 2019, the Company invested $19.0mm in new and existing portfolio companies and received no sales proceeds. As of November 11, 2019, the Company had 35 portfolio companies.

On November 6, 2019, the Board declared a distribution for the quarter ended December 31, 2019 of $0.25 per share payable on January 2, 2020 to stockholders of record as of December 13, 2019.

Investcorp Credit Management BDC, Inc. and Subsidiaries






Consolidated Statements of Assets and Liabilities






















September 30, 2019








(Unaudited)



June 30, 2019

Assets







Non-controlled, non-affiliated investments, at fair value (amortized cost of

$

302,204,646


$

306,390,993

$321,790,047 and $ 321,504,359, respectively)






Cash




3,428,615



19,706,281

Cash, restricted


7,403,479



6,589,901

Receivable for investments sold


2,670,233



820,332

Interest receivable


3,321,581



3,090,639

Deferred offering costs


121,922



121,922

Prepaid expenses and other assets


179,459



227,924

Total Assets

$

319,329,935


$

336,947,992









Liabilities







Notes payable:






Term loan

$

122,000,000


$

122,000,000

Revolving credit facility


19,047,551



11,026,670

2023 Notes payable


34,500,000



34,500,000

Deferred debt issuance costs


(1,753,135)



(2,000,262)

Notes payable, net


173,794,416



165,526,408

Payable for investments purchased


385,644



22,276,343

Dividend payable


3,406,383



3,404,923

Deferred financing costs payable


1,037,000



1,037,000

Income-based incentive fees payable


545,639



545,991

Base management fees payable


436,965



-

Accrued provision for taxes


-



13,778

Interest payable


836,602



724,222

Directors' fees payable


75,480



95,240

Accrued expenses and other liabilities


-



240,197

Total Liabilities


180,518,129



193,864,102









Commitments and Contingencies (Note 6)














Net Assets







Common stock, par value $0.001 per share (100,000,000 shares authorized,






13,625,533 and 13,619,690 shares issued and outstanding, respectively)


13,626



13,620

Additional paid-in capital


198,485,768



198,444,923

Distributable earnings (loss)


(59,687,588)



(55,374,653)

Total Net Assets


138,811,806



143,083,890

Total Liabilities and Net Assets

$

319,329,935


$

336,947,992

Net Asset Value Per Share

$

10.19


$

10.51

















See notes to unaudited consolidated financial statements.












Investcorp Credit Management BDC, Inc. and Subsidiaries








Consolidated Statements of Operations (Unaudited)
























For the Three months ended
September 30,







2019



2018


Investment Income:









Interest income



$

7,570,262


$

7,654,840


Payment in-kind interest income



907,777



413,620


Dividend income




-



31,275


Other fee income




80,395



155,155


Total investment income



8,558,434



8,254,890










Expenses:









Interest expense




2,351,745



2,264,857


Base management fees




1,355,078



1,351,855


Income-based incentive fees




-



120,321


Professional fees




309,853



232,800


Allocation of administrative costs from advisor



352,000



338,063


Amortization of deferred debt issuance costs



195,377



195,377


Insurance expense




83,762



84,440


Directors' fees




82,500



101,250


Custodian and administrator fees



129,872



7,500


Offering expense




51,750



51,750


Other expenses




156,270



119,181


Total expenses



5,068,207



4,867,394


Waiver of base management fees



(44,183)



-


Waiver of income-based incentive fees



-



(22,000)


Net expenses



5,024,024



4,845,394


Net investment income



3,534,410



3,409,496


Net realized and unrealized gain/(loss) on investments:















Net realized gain (loss) from investments



31,073



(258,192)


Net change in unrealized appreciation (depreciation) in value








of investments



(4,472,035)



(1,723,263)


Total realized and unrealized gain (loss) on investments



(4,440,962)



(1,981,455)


Net increase (decrease) in net assets resulting from operations









$

(906,552)


$

1,428,041











Basic and diluted:








Net investment income per share


$

0.26


$

0.25


Earnings per share


$

(0.07)


$

0.10


Weighted average shares of common stock outstanding



13,625,279



13,650,097













Distributions paid per common share


$

0.25


$

0.25
























See notes to unaudited consolidated financial statements.


About Investcorp Credit Management BDC, Inc.

The Company is an externally-managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50mm and earnings before interest, taxes, depreciation and amortization of at least $15mm. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com.

Forward-Looking Statements

Statements included herein may contain “forward-looking statements,” which relate to future performance or financial condition. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of assumptions, risks and uncertainties, which change over time. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors, including those described from time to time in filings by the Company with the Securities and Exchange Commission. The Company undertakes no duty to update any forward-looking statement made herein except as required by law. All forward-looking statements speak only as of the date of this press release.

Contacts
Investcorp Credit Management BDC, Inc.
Investor Relations
Email: icmbinvestorrelations@investcorp.com
Phone: 212-257-5199

View original content to download multimedia: http://www.prnewswire.com/news-releases/investcorp-credit-management-bdc-inc-reports-results-for-its-fiscal-first-quarter-ended-september-30-2019-300956880.html

SOURCE Investcorp