Crescent Capital Bdc, Inc. · NASDAQ:CCAP
Crescent Capital Bdc — Q3 2021 Earnings Presentation
22 slides from Crescent Capital Bdc's earnings presentation, Nov 11, 2021
Slide 1: Quarterly Earnings Presentation
Quarterly Earnings Presentation September 30, 2021
Slide 2: Disclaimer and Forward-Looking Statement
Disclaimer and Forward-Looking Statement 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
Slide 3: Crescent Capital BDC, Inc. (CCAP)
Crescent Capital BDC, Inc. (CCAP) Specialty finance company focused on investing in the debt of private U.S. middle-market companies $1,139 Ticker CCAP Exchange NASDAQ Total Net Assets $596 million Net Asset Value per Share $21.16 Total Assets $1.2 billion Debt-to-Equity 0.94x BBB- (KBRA) Investment
Slide 4: Track Record of NAV Stability and Resilience
Track Record of NAV Stability and Resilience Since its inception, CCAP has consistently delivered a stable NAV profile $29.69 $8.53 $19.90 $21.16 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 Q3'19 Q4'19 Q1'20 Q2'20 Q3'20 Q4'20 Q1'21 Q2'21 Q3'2
Slide 5: Summary of Financial Results
Summary of Financial Results
Slide 6: Third Quarter 2021 Highlights
Third Quarter 2021 Highlights Third Quarter • Adjusted net investment income for the quarter ended September 30, 2021 was $13.5 million, or $0.48 per share, as compared to $14.8 million, or $0.53 per share, for the prior quarter(1) Performance • Net investment income for the quarter ended September
Slide 7: Financial Highlights
Financial Highlights $ in millions, except per share data Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Net investment income per share $0.43 $0.47 $0.41 $0.39 $0.45 Adjusted net investment income per share(1) $0.43 $0.47 $0.46 $0.53 $0.48 Net realized gains (losses) per share(2) ($0.02) ($0.49) $0.06 $0.
Slide 8: Portfolio Highlights – Selected Metrics
Portfolio Highlights – Selected Metrics $ in millions, except per share data Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Investments at Fair Value $961 $1,034 $1,058 $1,095 $1,139 Number of Portfolio Companies 128 132 131 130 132 Median Portfolio Company EBITDA $29 $29 $29 $28 $29 Asset Mix of Investmen
Slide 9: Quarterly Statements of Assets and Liabilities
Quarterly Statements of Assets and Liabilities As of ($ in thousands, except per share data) 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Assets Investments, at fair value $961,051 $1,034,001 $1,057,627 $1,094,980 $1,138,630 Cash and cash equivalents 11,569 14,849 12,554 25,781 19,494 Interest
Slide 10: Net Asset Value per Share Bridge – Q3 2021
Net Asset Value per Share Bridge – Q3 2021 NAV per share increased 0.9% in the quarter, representing the sixth consecutive quarter of appreciation and a record high for CCAP ($0.85) $0.99 $0.45 ($0.41) $21.16 $20.98 $21.02 June 30, 2021 Net Investment Income Dividend Distributions Net Realized Gains
Slide 11: Operating Results Detail
Operating Results Detail For the Three Months Ended ($ in thousands, except per share data) 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Investment Income Interest & Dividend income $18,674 $20,281 $20,479 $23,567 $25,224 Other income - - 92 232 254 Total Investment Income $18,674 $20,281 $20,
Slide 12: Portfolio Highlights
Portfolio Highlights
Slide 13: Disciplined Portfolio Construction
Disciplined Portfolio Construction Designed to minimize losses via strong credit and non-credit risk mitigation $1,139mm 132 $29mm Investments Portfolio companies Median portfolio at fair value(1) company EBITDA(2) 100% Sponsored 84% First Debt Positions(3) Lien(1) 75% with Financial 100% Floating C
Slide 14: Portfolio Diversity
Portfolio Diversity Diversification by Obligor Diversification by Industry Top 10 13 Other 19% Industries 15% Health Care Insurance Equipment & LLC / LP Services Investments 4% 32% 5% Diversified Financials ~$9mm / 0.8% 5% Next 11-25 Average Position 22% Consumer Services 6% Remaining Commercial & 5
Slide 15: Investment Activity
Investment Activity Conservative investment strategy with 84% of portfolio in first lien loans New Investment Fundings End of Period Investments At Cost. $ in millions At Fair Value. $ in millions $158.5 3% $1,138.6 2% $1,095.0 $1,057.6 5% $1,034.0 8% 5% $961.1 7% <1% 7% 5% $124.1 $121.0 5% 5% 1% 6%
Slide 16: Portfolio Net Interest Margin
Portfolio Net Interest Margin(1) Weighted Average Yield of Income Producing Securities (at Cost) Weighted Average Spread Over LIBOR of Floating Rate Debt Investments Weighted Average Stated Interest Rate on Debt Outstanding 3 Month London Interbank Offered Rate ("LIBOR") 9.0% 7.9% 8.0% 7.9% 7.8% 8.0
Slide 17: Investment Portfolio Performance Ratings
Investment Portfolio Performance Ratings Internal Performance Rating Migration % of Portfolio at Fair Value 79% 88% 88% 88% 89% 19% 11% 11% 11% 10% 2% 1% 1% 1% 1% Q3 2020 Q4 2020 Q1 2021 Q2 2021 Q3 2021 Non-Accruals (As % of Debt Investments at 3.8% / 2.1% 1.7% / 1.3% 1.7% / 1.3% 1.6% / 1.2% 1.5% /
Slide 18: Alcentra Capital Corp. Acquisition – Performance Update
Alcentra Capital Corp. Acquisition – Performance Update In January 2020, CCAP completed its strategic acquisition of Alcentra Capital Corp. In addition to providing enhanced scale and diversification, the acquired portfolio has, to date, delivered strong investment performance $ in millions $273.7 2
Slide 19: Capital Structure
Capital Structure
Slide 20: Liquidity Management
Liquidity Management Short term flexibility of $173.1 million of undrawn debt capacity as of quarter-end with no near-term maturities Debt Summary Debt Maturities ($ in millions) ($ in millions) Total Principal Interest Maturity Committed Amount $73 Rate Date Amount Outstanding L+165 SPV Asset Facil
Slide 21: Appendix
Appendix
Slide 22: Reconciliation of Adjusted Net Investment Income
Reconciliation of Adjusted Net Investment Income As of $ in thousands, except per share data 9/30/2020 12/31/2020 3/31/2021 6/30/2021 9/30/2021 Net investment income $12,208 $13,163 $11,438 $10,976 $12,728 Capital gains based incentive fees - - 1,577 3,816 757 Adjusted net investment income $12,208