Investcorp Credit Management BDC, Inc. Announces Financial Results for the Quarter Ended September 30, 2022, and Quarterly and Supplemental Distributions

NEW YORK, Nov. 14, 2022 /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, 2022.

HIGHLIGHTS

• On November 11, 2022, the Company's Board of Directors (the "Board") declared a distribution of $0.13 per share for the quarter ending December 31, 2022, payable in cash on January 10, 2023, to stockholders of record as of December 16, 2022 and a supplemental distribution of $0.02 per share, payable on January 10, 2023, to stockholders of record as of December 16, 2022.
• During the quarter, ICMB made investments in four new portfolio companies. These investments totaled $19.3 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 10.02%.
• ICMB fully realized two portfolio companies during the quarter, totaling $13.8 million in proceeds. The internal rate of return on these investments was 11.62%.
• During the quarter, the Company had net advances of $1.7 million on its existing delayed draw and revolving credit commitments to portfolio companies.
• The weighted average yield on debt investments, at cost, for the quarter ended September 30, 2022, was 11.91%, compared to 10.01% for the quarter ended June 30, 2022.
• Net asset value decreased $0.03 per share to $6.47, compared to $6.50 as of June 30, 2022. Net assets decreased by $0.5 million, or 0.5%, during the quarter ended September 30, 2022.

Mr. Michael C. Mauer, the Company's Chief Executive Officer, said "Inflation, global market volatility, and recessionary forces continue to focus our team on the existing portfolio performance and the selection of new investments in this environment.  It also continues to emphasize the strengths of direct lending; structural seniority, significant junior capital, security, and covenant protection. We continue to believe our portfolio is well positioned."

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 November 11, 2022, the Board declared a distribution for the quarter ended December 31, 2022 of $0.13 per share payable on January 10, 2023 to stockholders of record as of December 16, 2022 and a supplemental distribution of $0.02 per share, payable on January 10, 2023, to stockholders of record as of December 16, 2022.

This distribution represents a 16.76% yield on the Company's $3.58 share price as of market close on September 30, 2022. 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 September 30, 2022, 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 four new portfolio companies. The aggregate capital invested during the quarter totaled $19.3 million, at cost, and the debt investments were made at a weighted average yield of 10.02%.

The Company received proceeds of $16.5 million from repayments, sales and amortization during the quarter, primarily related to the realizations of LH Intermediate Corporation, and Horus Infrastructure IA LLC.

During the quarter, the Company had net advances of $1.7 million on its existing and new 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 $0.7 million, or $0.05 per share. The total net increase in net assets resulting from operations for the quarter was $1.6 million, or $0.12 per share.

As of September 30, 2022, the Company's investment portfolio consisted of investments in 37 portfolio companies, of which 91.8% were first lien investments and 8.2% were equity, warrants, and other investments. The Company's debt portfolio consisted of 99.6% floating rate investments and 0.4% fixed rate investments.

The Company continues to assess the impact of the COVID-19 pandemic on its portfolio companies and will continue to closely monitor its portfolio companies throughout this period, including assessing portfolio companies' operational and liquidity exposure and outlook. 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 quarterly report on Form 10-Q for the fiscal year ended September 30, 2022, to be filed with the Securities and Exchange Commission on November 14, 2022.

Capital Resources

As of September 30, 2022, the Company had $7.4 million in cash, of which $6.5 million was restricted cash, and $25.5 million unused capacity under its revolving credit facility with Capital One, N.A.

Subsequent Events

Subsequent to September 30, 2022 and through November 14, 2022, the Company invested a total of $2.5 million, which included investments in one new portfolio company. As of November 14, 2022, the Company had investments in 38 portfolio companies.

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 in this press release and made on the earnings call for the quarter ended September 30, 2022, 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, the impact of the COVID-19 pandemic, 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 Annual Report on Form 10-K 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.

Contacts
Investcorp Credit Management BDC, Inc.
Investor Relations
Email: [email protected]
Phone: (646) 690-5034

SOURCE Investcorp Credit Management BDC

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