Crescent Capital Bdc, Inc. · NASDAQ:CCAP
Crescent Capital Bdc — Merger or Acquisition (October 2022)
18 slides from Crescent Capital Bdc's merger presentation, Oct 4, 2022
Slide 1: Strategic Acquisition of First Eagle Alternative Capital BDC, Inc.
Strategic Acquisition of First Eagle Alternative Capital BDC, Inc. October 4, 2022
Slide 2: Disclaimer and Note Regarding Forward-Looking Statements
Disclaimer and Note Regarding 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 co
Slide 3: Disclaimer and Note Regarding Forward-Looking Statements
Disclaimer and Note Regarding Forward-Looking Statements Additional Information and Where to Find It This communication relates to a proposed business combination involving CCAP and FCRD, along with the related proposal for which FCRD stockholder approval will be sought (the "Proposal"). In connecti
Slide 4: Platform Overview
Platform Overview
Slide 5: Crescent Capital Group Platform
Crescent Capital Group Platform Facts Highlights Founded: 1991 • Alternative credit firm with complementary strategies AUM: $39+ Billion • Primarily focused on below investment grade corporate credit Employees: 200+ • Prioritizes capital preservation and high current income Offices: 5 • Depth and br
Slide 6: Long Established Track Record Investing Across Cycles
Long Established Track Record Investing Across Cycles Crescent has a 30+ year track record of investing across the below investment grade corporate credit landscape, with experience through multiple cycles 10 Public Credit 1991 High Yield Bonds 9 8 1993 Bank Loans 7 6 1991 Special Situations 5 1992
Slide 7: Crescent Investment Team
Crescent Investment Team Breadth and depth of team across below investment grade credit with over 95 investment professionals Private Credit Public Credit / Research Trading 30+ Managing Directors 5+ Managing Directors 1 Managing Director 10 Senior Vice Presidents 4 Senior Vice Presidents 1 Senior V
Slide 8: SLC Management Platform
SLC Management Platform Institutional asset manager focused on fixed income and real assets. Supported by Sun Life Financial, a global financial services organization 150 years $260B 650+ 1,300+ Top 100 Of experience Assets Under Investment Clients Most sustainable managing assets Management(1) Prof
Slide 9: CCAP's Track Record of NAV Stability and Resilience
CCAP’s Track Record of NAV Stability and Resilience Since its inception, CCAP has consistently delivered a stable NAV profile and cumulative dividend coverage of ~110% $30.60 $9.91 $19.90 $20.69 Q2'15 Q3'15 Q4'15 Q1'16 Q2'16 Q3'16 Q4'16 Q1'17 Q2'17 Q3'17 Q4'17 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 Q2'19 Q3'
Slide 10: Transaction Summary
Transaction Summary
Slide 11: Transaction Details
Transaction Details Summary of Certain Transaction Terms First Eagle Alternative Capital BDC, Inc. (“FCRD”) stockholders are currently estimated to receive approximately $180.1 million, or $6.02 per share(1) of total consideration, consisting of: • Cash of $18.6 million, or $0.62 per share, from CCA
Slide 12: Total Illustrative Consideration Paid to FCRD Stockholders
Total Illustrative Consideration Paid to FCRD Stockholders Book value consideration of $6.02 per FCRD share represents 114% of FCRD’s 6/30/2022 stated NAV of $5.30 per share. Based on CCAP’s market price of $14.89, FCRD stockholders are receiving a 66% premium price to the current share price Total
Slide 13: Transaction Benefits
Transaction Benefits
Slide 14: Transaction Benefits
Transaction Benefits CCAP believes the combination with FCRD provides immediate and long-term value for all stockholders Key Strategic Rationale • Improved economies of scale Expected • Expected duplicative public company and administrative cost synergies NII Accretion • Further diversification of l
Slide 15: Accretive to CCAP's Earnings Profile
Accretive to CCAP’s Earnings Profile Combination is expected to provide immediate NII accretion as a result of greater scale and anticipated operational synergies and the elimination of duplicative expenses $ in millions • Further incremental earnings upside potential as: (i) Crescent seeks to favor
Slide 16: Enhanced Diversification & Flexibility
Enhanced Diversification & Flexibility Larger asset and liability base to enhance diversification and flexibility $ in millions • Total investments for CCAP increases from $1.3 billion to $1.6 billion, with 86% in senior secured loans. No single obligor represents more than 1.8% of the combined port
Slide 17: Attractive Pro Forma Combined Portfolio Metrics
Attractive Pro Forma Combined Portfolio Metrics Combination results in significantly enhanced scale and diversification, while maintaining CCAP’s focus on a primarily floating rate, sponsor-backed, senior secured first lien portfolio composition FCRD Today(1) CCAP Today(1) Pro Forma Combined $367m $
Slide 18: Pro Forma Liquidity Profile
Pro Forma Liquidity Profile CCAP’s pro forma trading liquidity profile after closing as implied by the public BDC peer set suggests a meaningful increase in current 3-month average daily trading volume (“ADTV”) $ in millions 3-MONTH AVERAGE DAILY TRADING VOLUME (2) $900 $4.0 $800 $778 $685 $3.5 MARK
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