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Investcorp Credit Management BDC, Inc. Announces Financial Results for the Fiscal Period Ended December 31, 2024, and Quarterly Distribution

News provided by business wire2025-03-26

Investcorp Credit Management BDC, Inc. Announces Financial Results for the Fiscal Period Ended December 31, 2024, and Quarterly Distribution

NEW YORK--(BUSINESS WIRE)-- Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal period ended December 31, 2024.

HIGHLIGHTS

On March 20, 2025, the Company’s Board of Directors (the “Board”) declared a distribution of $0.12 per share for the quarter ending March 31, 2025, payable in cash on May 16, 2025, to stockholders of record as of April 25, 2025.
During the quarter, ICMB made investments in two new portfolio companies and two existing portfolio companies. These investments totaled $9.9 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 11.81%.
ICMB fully realized its investments in two portfolio companies during the quarter, totaling $7.6 million in proceeds. The internal rate of return on these investments was 17.20%.
During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies.
The weighted average yield on debt investments, at fair value, for the quarter ended December 31, 2024, was 10.36%, compared to 10.51% for the quarter ended September 30, 2024.
Net asset value decreased $0.16 per share to $5.39, compared to $5.55 as of September 30, 2024. Net assets decreased by $2.3 million, or 2.86%, during the quarter ended December 31, 2024 compared to September 30, 2024.

Portfolio results, as of and for the three months ended December 31, 2024:
Total assets		$206.9mm
Investment portfolio, at fair value		$191.6mm
Net assets		$77.6mm
Weighted average yield on debt investments, at cost (1)		10.36%
Net asset value per share		$5.39
Portfolio activity in the current quarter:
Number of investments in new portfolio companies during the period		2
Number of portfolio companies invested in, end of period		43
Total capital invested in existing portfolio companies (2)		$4.2mm
Total proceeds from repayments, sales, and amortization (3)		$8.7mm
Net investment income (NII)		$0.8mm
Net investment income per share		$0.06
Net decrease in net assets from operations		$(0.6)mm
Net decrease in net assets from operations per share		$(0.04)
Distributions paid per common share		$0.12

(1)		Represents weighted average yield on total debt investments held as of December 31, 2024. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company’s stockholders.
(2)		Includes gross advances to existing delayed draw and revolving credit commitments to portfolio companies and PIK interest.
(3)		Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies.

Mr. Suhail A. Shaikh said, “Amid heightened market volatility, we remain focused on navigating the evolving landscape. Despite these headwinds, we have maintained a rigorous investment approach, prioritizing opportunities that align with our underwriting standards. While refinancing activity has provided some avenues for capital deployment, we continue to take a highly selective stance on new deals. Our priority remains preserving portfolio stability and positioning the company for long-term growth as market conditions evolve.

“I am also pleased to announce that Andrew Muns has been appointed as the Chief Operating Officer of ICMB. Andrew brings a wealth of experience and is a senior member of the Company’s Investment Adviser. I look forward to working closely with Andrew to continue to deliver shareholder value.”

The Company’s dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Board, by additional dividends as determined to be available by the Company’s net investment income and performance during the quarter.

On March 20, 2025, the Board declared a distribution for the quarter ended March 31, 2025 of $0.12 per share payable on May 16, 2025 to stockholders of record as of April 25, 2025.

This distribution represents a 15.84% yield on the Company’s $3.03 share price as of market close on December 31, 2024. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the dividend for the quarter ending December 31, 2024, to be comprised of a return of capital. The Company’s investment adviser monitors available taxable earnings, including net investment income and realized capital gains, to determine if a return of capital may occur for the year. The Company estimates the source of its distributions as required by Section 19(a) of the Investment Company Act of 1940 to determine whether payment of dividends are expected to be paid from any other source other than net investment income accrued for the current period or certain cumulative periods, but the Company will not be able to determine whether any specific distribution will be treated as taxable earnings or as a return of capital until after at the end of the taxable year.

Portfolio and Investment Activities

During the quarter, the Company made investments in two new portfolio companies and two existing portfolio companies. The aggregate capital invested during the quarter totaled $9.9 million, at cost, and the debt investments were made at a weighted average yield of 11.81%.

The Company received proceeds of $7.6 million from repayments, sales and amortization during the quarter, primarily related to the realization of Amerit Fleet Holdings, LLC.

During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies.

The Company’s net realized, and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $(1.4) million, or $(0.10) per share. The total net decrease in net assets resulting from operations for the quarter was $(0.6) million, or $(0.04) per share.

As of December 31, 2024, the Company’s investment portfolio consisted of investments in 43 portfolio companies, of which 81.17% were first lien investments and 18.83% were equity, warrants, and other investments. The Company’s debt portfolio consisted of 96.4% floating rate investments and 3.6% fixed rate investments.

Capital Resources

As of December 31, 2024, the Company had $12.1 million in cash, of which $11.3 million was restricted cash, and $41.5 million of unused and available capacity under its revolving credit facility with Capital One, N.A.

Subsequent Events

Subsequent to December 31, 2024 and through March 25, 2025, the Company invested a total of $3.9 million, which included investments in one new portfolio company and two existing portfolio companies, and received approximately $3.5 million from the repayment of two positions. As of March 25, 2025, the Company had investments in 42 portfolio companies.

Other Updates

The Company is pleased to announce that Andrew Muns has been appointed by the Company’s Board as the new Chief Operating Officer of the Company, effective March 24, 2025. Mr. Muns currently serves on CM Investment Partners LLC's investment committee. Mr. Muns joined Investcorp in 2019 as part of the acquisition of CM Investment Partners LLC. Previously, he served as a Managing Director at CM Investment Partners LLC and was a joint employee of both CM Investment Partners LLC and Stifel. Mr. Muns co-founded the Credit Investments Group and served as its Head of Credit. He joined Stifel in 2012 from Cantor Fitzgerald, where he was a Managing Director on the Special Situations and Leveraged Loans Desk. Mr. Muns holds an M.B.A. from Columbia Business School and a B.A. in Mathematics from Northwestern University.

Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Assets and Liabilities

	December 31,2024			June 30, 2024			June 30, 2023
Assets
Non-controlled, non-affiliated investments, at fair value (amortized cost of $184,154,029, $189,319,802, and $219,319,251, respectively)	$	188,602,029		$	181,948,376		$	210,150,018
Affiliated investments, at fair value (amortized cost of $16,351,878, $15,149,238, and $23,979,565, respectively)		3,014,929			2,621,154			9,961,311
Total investments, at fair value (amortized cost of $200,505,907, $204,469,040, and $243,298,816, respectively)		191,616,958			184,569,530			220,111,329
Cash		771,483			158,768			1,093,758
Cash, restricted		11,333,064			4,950,036			8,057,458
Principal receivable		720,855			50,609			93,581
Interest receivable		1,576,381			1,301,516			2,041,877
Payment-in-kind interest receivable		85,399			66,625			46,088
Long-term receivable		489,365			631,667			—
Escrow receivable		—			97,173			—
Short-term receivable		160,901			—			—
Other receivables		—			—			1,050
Prepaid expenses and other assets		97,324			411,821			361,719
Total Assets	$	206,851,730		$	192,237,745		$	231,806,860
Liabilities
Debt:
Revolving credit facility	$	58,500,000		$	43,000,000		$	71,900,000
2026 Notes payable		65,000,000			65,000,000			65,000,000
Deferred debt issuance costs		(1,369,415	)		(1,654,870	)		(1,220,556	)
Unamortized discount		(88,888	)		(124,443	)		(195,553	)
Debt, net		122,041,697			106,220,687			135,483,891
Payable for investments purchased		1,474,677			7,425,000			1,795,297
Dividend payable		1,728,749			—			2,590,520
Income-based incentive fees payable		501,955			128,876			576,023
Base management fees payable		769,176			816,777			906,218
Interest payable		1,894,921			1,950,925			2,293,766
Directors' fees payable		81,323			—			15,755
Accrued expenses and other liabilities		757,102			685,271			445,082
Total Liabilities		129,249,600			117,227,536			144,106,552
Commitments and Contingencies (see Note 6)
Net Assets
Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,406,244, 14,403,752, and 14,391,775 shares issued and outstanding, respectively)		14,406			14,404			14,392
Additional paid-in capital		203,505,480			203,103,263			203,327,714
Distributable earnings (loss)		(125,917,756	)		(128,107,458	)		(115,641,798	)
Total Net Assets		77,602,130			75,010,209			87,700,308
Total Liabilities and Net Assets	$	206,851,730		$	192,237,745		$	231,806,860
Net Asset Value Per Share	$	5.39		$	5.21		$	6.09

Investcorp Credit Management BDC, Inc. and Subsidiaries
Consolidated Statements of Operations

	Six Months Ended December 31,			Twelve Months Ended June 30,
		2024			2024			2023			2022
Investment Income:
Interest income
Non-controlled, non-affiliated investments	$	8,680,899		$	20,271,776		$	23,822,181		$	22,641,798
Non-controlled, affiliated investments		3,660			12,451			(20,611	)		29,813
Total interest income		8,684,559			20,284,227			23,801,570			22,671,611
Payment in-kind interest income
Non-controlled, non-affiliated investments		2,329,399			2,028,744			1,250,169			102,720
Non-controlled, affiliated investments		42,079			77,680			70,070			208,470
Total payment-in-kind interest income		2,371,478			2,106,424			1,320,239			311,190
Dividend income
Non-controlled, non-affiliated investments		—			54,138			101,755			—
Non-controlled, affiliated investments		—			—			—			296,126
Total dividend income		—			54,138			101,755			296,126
Payment in-kind dividend income
Non-controlled, non-affiliated investments		432,669			784,854			691,972			282,952
Non-controlled, affiliated investments		—			—			—			—
Total payment-in-kind dividend income		432,669			784,854			691,972			282,952
Other fee income
Non-controlled, non-affiliated investments		134,051			648,659			768,617			868,727
Non-controlled, affiliated investments		—			—			—			759
Total other fee income		134,051			648,659			768,617			869,486
Total investment income		11,622,757			23,878,302			26,684,153			24,431,365
Expenses:
Interest expense		3,752,412			8,606,309			8,413,409			6,633,587
Base management fees		1,671,831			3,800,693			4,201,394			4,594,588
Income-based incentive fees		501,540			(72,942	)		401,597			(348,670	)
Professional fees		718,289			1,239,122			984,290			1,302,513
Allocation of administrative costs from Adviser		382,064			1,360,194			966,045			1,247,205
Amortization of deferred debt issuance costs		306,004			576,475			693,333			621,111
Amortization of original issue discount - 2026 Notes		35,555			71,110			71,110			71,110
Insurance expense		255,536			479,502			506,963			512,347
Directors' fees		175,852			294,907			302,500			302,500
Custodian and administrator fees		147,986			316,128			292,267			334,214
Other expenses		346,109			713,789			516,160			446,330
Total expenses		8,293,178			17,385,287			17,349,068			15,716,835
Waiver of base management fees		(131,735	)		(365,225	)		(387,311	)		(480,032	)
Waiver of income-based incentive fees		—			—			—			—
Net expenses		8,161,443			17,020,062			16,961,757			15,236,803
Net investment income before taxes		3,461,314			6,858,240			9,722,396			9,194,562
Income tax expense, including excise tax expense		315,075			267,150			294,330			270,618
Net investment income after taxes	$	3,146,239		$	6,591,090		$	9,428,066		$	8,923,944
Net realized and unrealized gain/(loss) on investments:
Net realized gain (loss) from investments
Non-controlled, non-affiliated investments	$	(8,114,711	)	$	(7,731,553	)	$	(26,890,095	)	$	(6,198,762	)
Non-controlled, affiliated investments		—			(6,239,984	)		—			(8,196,669	)
Net realized gain (loss) from investments		(8,114,711	)		(13,971,537	)		(26,890,095	)		(14,395,431	)
Net change in unrealized appreciation (depreciation) in value of investments
Non-controlled, non-affiliated investments		11,819,426			1,797,807			21,966,347			2,898,538
Non-controlled, affiliated investments		(808,865	)		1,490,170			(1,269,815	)		5,159,579
Net change in unrealized appreciation (depreciation) on investments		11,010,561			3,287,977			20,696,532			8,058,117
Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments		2,895,850			(10,683,560	)		(6,193,563	)		(6,337,314	)
Net increase (decrease) in net assets resulting from operations	$	6,042,089		$	(4,092,470	)	$	3,234,503		$	2,586,630
Basic and diluted:
Earnings per share	$	0.42		$	(0.28	)	$	0.22		$	0.18
Weighted average shares of common stock outstanding		14,404,510			14,396,201			14,389,163			14,304,641
Distributions paid per common share	$	0.24		$	0.60		$	0.63		$	0.60

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 $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. 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 in this press release and made on the earnings call for the fiscal period and quarter ended December 31, 2024, may contain “forward-looking statements,” which relate to future performance, operating results, events and/or financial condition. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release or made on the earnings call are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control.

Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the earnings call, is or will be included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Transition Report on Form 10-KT and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law.