Crescent Capital Bdc, Inc. · NASDAQ:CCAP
Crescent Capital Bdc — Merger or Acquisition (March 2023)
14 slides from Crescent Capital Bdc's merger presentation, March 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
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: 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
Slide 4: Pro Forma Combined Highlights
Pro Forma Combined Highlights
Slide 5: Pro Forma Combined Portfolio Metrics
Pro Forma Combined Portfolio Metrics Combination results in significantly enhanced scale and diversification, while maintaining CCAP’s focus on constructing a primarily floating rate, sponsor-backed, senior secured first lien portfolio $ in millions; % of fair value (“FV”), unless otherwise noted CC
Slide 6: High Quality of Investment Income
High Quality of Investment Income Total investment income is largely driven by recurring interest income • On a combined basis, interest income represented 89% of total investment income in Q4 2022, while PIK represented <2%. Interest income plus recurring dividends from the Logan JV represented 95%
Slide 7: 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 8: M&A Track Record and Portfolio Rotation Strategy
M&A Track Record and Portfolio Rotation Strategy
Slide 9: CCAP Value Creation for Stockholders Through M&A
CCAP Value Creation for Stockholders Through M&A • CCAP has created value for stockholders NAV per Share through M&A, as evidenced by its acquisition of Alcentra Capital Corp. (“Alcentra”) in Q1 2020 Onset of $20.98 $21.16 $21.12 $21.18 COVID-19 $20.69 $20.24 $20.16 $19.88 $19.83 • Despite acquiring
Slide 10: FCRD Portfolio Evolution
FCRD Portfolio Evolution Based on CCAP’s review of FCRD’s portfolio, there has been a significant rotation out of pre-2020 investments, resulting in a more diversified current portfolio that is largely aligned with CCAP's core strategy FCRD FV of Investments ($mm) $384 CCAP’s Assessment (1) FV as a
Slide 11: CCAP Rotation Strategy
CCAP Rotation Strategy CCAP’s rotation thesis for the FCRD portfolio is centered on a natural realization of core assets and the Logan JV while seeking to selectively rotate out of non-core assets in a more expedited fashion $338 Investment Characteristics Realization Strategy Logan JV Recently co
Slide 12: Core Portfolio Statistics
Core Portfolio Statistics CCAP performed a bottom-up analysis of each portfolio company's fundamental operating performance, capitalization and cyclical attributes FV $mm W.A. (% of Core Median W.A. Net Interest % with % Non-Cyclical Assets) EBITDA ($mm) Leverage Coverage Covenants Industries (1) 4.
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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