Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended September 30, 2020 and Quarterly and Supplemental Distributions

NEW YORK, Nov. 9, 2020 /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, 2020.  

HIGHLIGHTS

• ICMB made four investments, and funded under one revolving commitment, across one existing portfolio company and two new portfolio companies. These investments totaled $13.3mm. The weighted average yield of debt investments made in the quarter was 14.60%, inclusive of funding the revolving commitment.
• ICMB fully realized four investments during the quarter, totaling $17.5 million, and received additional partial repayments totaling $6.9 million.
• The weighted average yield on debt investments, at cost, decreased 33 basis points to 9.25%, compared to 9.58% as of June 30, 2020.
• Net asset value ("NAV") increased $0.02 per share (or 0.26%) to $7.81, compared to $7.79 as of June 30, 2020.

Mr. Michael C. Mauer, the Company's Chief Executive Officer, said, "As COVID-19 continues to be a very fluid situation, we are very pleased with our portfolio companies' ability to manage cash flow and focus on the long-term recovery. We continue to work with these management teams to ensure the stability of the portfolio."

Our dividend framework provides a quarterly base dividend and is supplemented (when applicable) by additional dividends determined by the net investment income during the quarter.

On November 3, 2020, the Company's Board of Directors (the "Board") declared a distribution for the quarter ending December 31, 2020 of $0.15 per share, payable on January 4, 2021, to stockholders of record as of December 10, 2020, and a supplemental distribution of $0.03 per share, payable on January 4, 2021, to stockholders of record as of December 10, 2020. 

These distributions represent a 21.82% yield on the Company's $3.30 share price as of market close on November 6, 2020.  Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect these distributions 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 four investments, and funded under one revolving commitment, across one existing portfolio company and two new portfolio companies.  The aggregate capital invested during the quarter totaled $13.3mm at cost, and debt investments were made at a weighted average yield of 14.60%.

The Company received proceeds of $24.4mm from repayments, sales and amortization during the quarter, primarily related to the repayment of AP NMT Acquisition BV.

The Company's realized and unrealized gains and losses accounted for an increase in the Company's net investments of $0.1mm, or $0.00 per share.  The total net increase in net assets resulting from operations for the quarter was $2.8.mm or $0.20 per share. 

As of September 30, 2020, the Company's investment portfolio consisted of investments in 38 portfolio companies, of which 87.8% were first lien investments, 5.4% were second lien investments, 4.2% were unitranche loans, and 2.6% were equity, warrants, and other investments. The Company's debt portfolio consisted of 99.5% floating rate investments and 0.5% fixed rate investments.

During the nine months ended September 30, 2020, the Company's portfolio was negatively affected by the economic uncertainty caused by the novel coronavirus ("COVID-19") pandemic. The Company has closely monitored its portfolio companies throughout this period, including assessing portfolio companies' operational and liquidity exposure and outlook. Though the magnitude of the impact remains to be seen, certain of the Company's portfolio companies and, by extension, select operating results have been, and may continue to be, adversely impacted by the COVID-19 pandemic. For additional information about the COVID-19 pandemic and its potential impact on the Company's results of operations and financial condition, please refer to the disclosure in the Company's Form 10-Q for the quarter ended September 30, 2020.

Capital Resources

As of September 30, 2020, the Company had $8.4mm in cash, $6.5mm in restricted cash and no capacity under its revolving credit facility with UBS AG, London Branch.

Subsequent Events

Subsequent to September 30, 2020 and through November 6, 2020, the Company invested $5.4mm in one new portfolio company and one existing portfolio company and the Company received $10.2mm in repayments or sales proceeds. As of November 6, 2020, the Company had 37 portfolio companies. 

On November 3, 2020, the Board declared a distribution for the quarter ended December 31, 2020 of $0.15 per share payable on January 4, 2021 to stockholders of record as of December 10, 2020 and a supplemental distribution for the quarter ending December 31, 2020 of $0.03 per share, payable on January 4, 2021, to stockholders of record as of December 10, 2020.

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 in this press release may contain "forward-looking statements," which relate to future performance or financial condition, are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company's control and including the impact of COVID-19 and related changes in base interest rates and significant market volatility on our business, our portfolio companies, our industry and the global economy, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. 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. All forward-looking statements speak only as of the date of this press release. The Company undertakes no duty to update any forward-looking statement made herein except as required by law.

Contacts
Investcorp Credit Management BDC, Inc.
Investor Relations
Email: [email protected]
Phone: 212-257-5199

SOURCE Investcorp Credit Management BDC, Inc.

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