Crescent Capital Bdc, Inc. · NASDAQ:CCAP
Crescent Capital Bdc — Merger or Acquisition (March 2023)
14 slides from Crescent Capital Bdc's merger presentation, Mar 10, 2023
Slide 1: Strategic Acquisition of First Eagle Alternative Capital BDC, Inc.
Strategic Acquisition of First Eagle Alternative Capital BDC, Inc. Supplemental Information March 2023 Exhibit 99.2
Slide 2: Disclaimer and forward-looking statements
This presentation (the “Presentation”) has been prepared by Crescent Capital BDC, Inc. (together with its consolidated subsidiaries, “CCAP,” “Crescent BDC” or the “Company”) and may be used for informational purposes only. This Presentation contains summaries of certain financial and statistical inf
Slide 3: CCAP's Acquisition of FCRD
CCAP’s Acquisition of FCRD Crescent Capital BDC, Inc. (“CCAP”) announced on March 9 that it had completed its acquisition of First Eagle Alternative Credit BDC, Inc. (“FCRD”) CCAP has worked closely with the FCRD team since the summer of 2022 to evaluate the benefits of the acquisition, perform a bo
Slide 4: Pro Forma Combined Highlights
Pro Forma Combined Highlights
Slide 5: Pro Forma Combined Portfolio Metrics
Pro Forma Combined Portfolio Metrics Fair Value $1,263 $338 $1,601 # of Unique Portfolio Companies 129 71 200 Median EBITDA(1) $39 $21 $33 % First Lien(2) 24% 51% 30% % Unitranche(2) 66% 35% 60% % Sponsor-Backed 99% 93% 97% % Floating Rate 99% 98% 99% Top 10 Investments 18% 23%(3) 15%(3) Weighted Av
Slide 6: High Quality of Investment Income
High Quality of Investment Income Total investment income is largely driven by recurring interest income Components of Total Investment Income (Q4 2022)(1) Based on as-reported total investment income for FCRD and CCAP for the three months ended December 31, 2022. $ in millions On a combined basis,
Slide 7: Combination expected to provide immediate NII accretion
Combination is expected to provide immediate NII accretion as a result of greater scale and anticipated operational synergies and the elimination of duplicative expenses Further incremental earnings upside potential as: (i) Crescent seeks to favorably resolve non-performing loans and reinvest procee
Slide 8: M&A Track Record and Portfolio Rotation Strategy
M&A Track Record and Portfolio Rotation Strategy
Slide 9: CCAP has created value for stockholders through M&A (Alcentra)
CCAP has created value for stockholders through M&A, as evidenced by its acquisition of Alcentra Capital Corp. (“Alcentra”) in Q1 2020 Despite acquiring a portfolio with a higher concentration of second lien and equity investments, CCAP has accomplished the following: Grown NAV per share beyond pre-
Slide 10: FCRD Portfolio Evolution
FCRD Portfolio Evolution Based on CCAP investment team’s assessment of the FCRD investment portfolio as of December 31, 2022. As of December 31, 2022. CCAP acquired FCRD’s investment portfolio at fair value as determined at the time of closing, subject to the terms set forth in the definitive merger
Slide 11: CCAP Rotation Strategy for Non-Core FCRD Investments
FV represents a 73% discount to cost (2) 100% pre-2020 investments 38% completed asset sale with deferred royalty payments 33% energy sector 20% consumer sector 9% fund investments 99% first lien investments (1) 100% floating rate 98% sponsor-backed $21mm median portfolio company EBITDA (2) 4.3x wei
Slide 12: Core Portfolio Statistics
Core Portfolio Statistics Core Cash Flow Investments Other Core $257 (94%) $16 (6%) FV $mm (% of Core Assets) Median EBITDA ($mm) W.A. Net Leverage W.A. Interest Coverage % with Covenants % Non-Cyclical Industries (1) Comprised of three ABL loans (5.0% of Core Assets FV) and one ARR loan (0.7% of Co
Slide 13: Appendix
Appendix
Slide 14: Reconciliation of Adjusted Net Investment Income
Reconciliation of Adjusted Net Investment Income As of $ in millions, except per share data 12/31/2022 Net investment income $16.1 Capital gains based incentive fees (1.1) Adjusted net investment income $15.0 Per share: Net investment income $0.52 Capital gains based incentive fees (0.03) Adjusted n
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