Crescent Capital BDC, Inc. Q3 FY2024 earnings call

• Jason Breaux highlighted solid earnings, strong credit performance, NII of $0.64 per share, and the Board declared a supplemental dividend. - Henry Chung discussed deal activity picking up, Q3 gross deployment of $73M (97% first-lien), new platform investments, and incremental investments in existing portfolio. - Gerhard Lombard talked about investment income, with non-recurring income higher this quarter, recurring yield-related income still dominant, PIK income details, GAAP earnings per share, and capitalization/liquidity including debt-to-equity ratio decrease to 1.15 times.

Net investment income (NII) was $0.64 per share, translating to an annualized NII return on equity of 12.6%. The net asset value (NAV) decreased $0.10 to $20.20 per share in the quarter, but was up 2.5% year-over-year. The portfolio ended the quarter with approximately $1.6 billion of investments at fair value across 183 companies, with 90% of the portfolio being first-lien loans, 99% in sponsor-backed companies, and non-accruals well below industry average. Weighted average portfolio grade was 2.1, and 90% of investments were risk-rated 1 and 2.

• Expect deal activity to pick up in 2025 as rate cuts lower borrowing costs. - Confident in continued strong performance of CCAP’s portfolio. - Delevered during the quarter, expecting spread stabilization to work in favor of the company.

• Credit dispersion with some peers having growing watch lists and non-accrual names. - Impact of borrowing costs on portfolio companies. - M&A environment impact on the remaining First Eagle assets, with slower natural run-off historically.

Q: Robert Dodd asked about non-recurring income, First Eagle assets rotation, and 2025 activity.

A: Gerhard Lombard discussed non-recurring income from prepayments and OID, Henry Chung commented on First Eagle assets outlook and 2025 activity.

Q: Paul Johnson asked about acquisitions, depreciation, and supplemental dividend.

A: Jason Breaux talked about potential acquisitions and growth strategy, Gerhard Lombard explained depreciation sources and supplemental dividend mechanism