Investcorp Credit Management BDC, Inc. Q3 FY2026 earnings call

• Formed a special committee of independent directors to review strategic alternatives and maximize value for shareholders.
• Successfully refinanced the $65 million notes due April 1 with new unsecured notes maturing in 2029.
• Fourth quarter net investment income before taxes was $0.3 million or $0.02 per share before taxes, a decrease from previous quarter. Nonaccruals increased to 6.9% of the portfolio at fair value. Net assets declined sequentially with NAV per share at $4.25. Focus on liquidity management, muted new investment activity, invested $1.5 million in Axiom Global and fully realized 3 portfolio company investments totaling $8.2 million in proceeds.
• Portfolio fair value was $172.7 million, net assets $61.3 million. Weighted average yield of debt portfolio 10.6%, 81% in first lien debt, 19% in equity, etc. Gross leverage 2.02x, net leverage 1.78x. Paid down $14 million of debt in February, improving asset coverage ratio.

• Market environment, macroeconomic and geopolitical uncertainty continues to shape operating backdrop. Focus on disciplined underwriting and active portfolio management remains. Expect market conditions to remain challenging in near term but believe focus on liquidity and risk management positions ICMB to navigate period and pursue opportunities as they arise.

• Macroeconomic and geopolitical uncertainty shaping operating backdrop. Credit markets open but deal activity in segment below historical norms as sponsor-driven transaction volumes yet to recover meaningfully. Nonaccruals increased which is a risk factor.

Q: First of all, I'd like to applaud the forming of the special committee... whether the manager will consider reducing their fees somewhat A: Justin, thank you for your question... we consider ourselves fully aligned with shareholders, and we'll use whatever means necessary to keep that alignment going