Crescent Capital Bdc, Inc. · NASDAQ:CCAP
Crescent Capital Bdc — Q3 2020 Earnings Presentation
23 slides from Crescent Capital Bdc's earnings presentation, Nov 5, 2020
Slide 1: Quarterly Earnings Presentation
Quarterly Earnings Presentation For the quarter ended September 30, 2020
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: CCAP Key Highlights
CCAP Key Highlights CCAP is core to the Crescent franchise • Leverages size and scale of broader ~$29 billion Crescent platform1 • SEC co-investment exemptive relief with Crescent • Significant market reach with financial sponsors and corporate borrowers Scaled BDC with $981 million of assets1 • Foc
Slide 4: Summary of Third Quarter Financial Results
Summary of Third Quarter Financial Results
Slide 5: Third Quarter 2020 Highlights
Third Quarter 2020 Highlights • Net investment income for the quarter ended September 30, 2020 was $12.2 million, or $0.43 per share, as compared to $13.0 million, or $0.46 per share, for the quarter ended June 30, 2020. • Net realized and unrealized gains on investments1 for the quarter ended Septe
Slide 6: Financial Highlights
Financial Highlights $ in millions, except per share data Q3 2019 Q4 2019 Q1 20201 Q2 2020 Q3 2020 Net investment income per share $0.49 $0.41 $0.44 $0.46 $0.43 Net realized gains (losses) per share - ($0.33) ($0.00) ($0.04) ($0.02) Net unrealized gains (losses) per share2 ($0.34) $0.37 ($3.14) $1.5
Slide 7: Financial Information
Financial Information $ in millions, except per share data 9/30/19 12/31/19 3/31/201 6/30/20 9/30/20 Investments, at fair value $692 $727 $883 $895 $961 Number of portfolio companies 96 98 127 124 128 Median portfolio company EBITDA $29 $29 $28 $29 $29 Asset Mix of Investment Portfolio: Senior Secur
Slide 8: Financial Information (cont'd)
Financial Information (cont’d) $ in millions Investment Activity Rollforward: Q3 2019 Q4 2019 Q1 20201 Q2 2020 Q3 2020 Beginning Investments, at fair value $624.9 $692.3 $726.5 $883.2 $895.2 Gross Deployment, at cost 112.3 80.8 117.4 26.4 84.1 Exits, Sales & Repayments, at cost (38.5) (48.7) (73.7)
Slide 9: Net Asset Value per Share Bridge
Net Asset Value per Share Bridge Unrealized Appreciation Drove a NAV Per Share Increase of 5.2% from June 30th $19.07 $0.95 $0.43 ($0.41) ($0.02) $18.12 $18.12 June 30, 2020 Net Investment Income Dividend Distributions Net Realized Losses on Exits Net Change in Unrealized September 30, 2020 NAV/shar
Slide 10: Quarterly Operating Results
Quarterly Operating Results For the Three Months Ended ($ in thousands, except per share data) 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Investment Income Interest & Dividend income $14,749 $14,548 $18,391 $18,707 $18,674 Other income 87 119 440 620 - Total Investment Income $14,836 $14,667
Slide 11: Quarterly Statement of Assets and Liabilities
Quarterly Statement of Assets and Liabilities As of ($ in thousands, except per share data) 9/30/2019 12/31/2019 3/31/2020 6/30/2020 9/30/2020 Assets Investments, at fair value $692,283 $726,531 $883,216 $895,234 $961,051 Cash and cash equivalents 18,083 13,427 11,528 11,557 11,569 Interest receivab
Slide 12: Portfolio Highlights
Portfolio Highlights
Slide 13: Portfolio Highlights
Portfolio Highlights CCAP Portfolio Characteristics – September 30, 2020 $961mm $29mm 0.5x 5.2x 99% Investments Median portfolio company Weighted avg. portfolio Weighted avg. portfolio Sponsored debt positions3 at fair value1 EBITDA2 company attachment company leverage2,3,4,5 point2,3,4,5 Asset Type
Slide 14: Portfolio Diversity
Portfolio Diversity 128 Portfolio Companies / U.S.-Centric Investments / High FCF & Non-Cyclical Industry Focus Diversification by Obligor Diversification by Industry Top 10 15 Other Health Care 19% Industries Equipment & 23% Services LLC / LP 22% Investments 5% Pharmaceuticals, ~$8mm / 0.8% Next 11
Slide 15: Portfolio Net Interest Margin
Portfolio Net Interest Margin1 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% 8.1% 8.1% 7.9% 7.9% 7.9%
Slide 16: Investment Portfolio Performance Ratings
Investment Portfolio Performance Ratings Due to better than expected borrower performance, the percentage of risk rated “1” and “2” investments increased to 79.4% of the portfolio at fair value as of September 30th from 77.4% as of June 30th $ in millions Q3 2019 Q4 2019 Q1 2020 Q2 2020 Q3 2020 Inve
Slide 17: Capital Structure
Capital Structure
Slide 18: Liquidity Management
Liquidity Management Short term flexibility of $189.5 million of undrawn debt capacity as of quarter-end Debt Summary Debt Maturities ($ in millions) ($ in millions) Total Principal Interest Maturity Committed Amount Rate Date Amount Outstanding L+165 $121 SPV Asset Facility $350.0 $228.7 3/10/25 L+
Slide 19: Sun Life Announcement
Sun Life Announcement
Slide 20: Sun Life to Acquire Crescent Capital Group
Sun Life to Acquire Crescent Capital Group Management of Crescent Capital BDC, Inc. to Continue with Same Team, Greater Resources • On October 21, 2020, Crescent Capital Group LP (“Crescent”), parent of the Adviser1 to Crescent Capital BDC, Inc. (“CCAP”), and Sun Life Financial Inc. (together with i
Slide 21: Transaction Summary
Transaction Summary • Sun Life to acquire a majority interest in Crescent • Sun Life will own a 51% economic interest in Crescent upon closing of the transaction • Sun Life committing co-investment/seed capital of $750 million to Crescent Key Transaction Terms • Transaction includes put/call options
Slide 22: Continuity for CCAP Stockholders
Continuity for CCAP Stockholders • The team that manages CCAP will remain in place Team • Crescent to maintain complete autonomy on investing and operational processes • Strategy remains unchanged – will continue to seek to maintain a high-quality, Strategy highly diversified investment portfolio, w
Slide 23: Benefits for Crescent
Benefits for Crescent • Crescent has been an industry leader in the below-investment grade market for over 25 years. Coupling Crescent’s longstanding experience in private credit origination and underwriting with Sun Life’s global scale and platform creates a compelling combination. This transaction