Investcorp Credit Management BDC, Inc. Announces Financial Results for the Fiscal Period Ended December 31, 2024, and Quarterly Distribution

About this update from Investcorp Credit Management Bdc, Inc.

Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal period ended December 31, 2024. HIGHLIGHTS On March 20, 2025, the Company’s Board of Directors (the “Board”) declared a distribution of $0.12 per share for the quarter ending March 31, 2025, payable in cash on May 16, 2025, to stockholders of record as of April 25, 2025. During the quarter, ICMB made investments in two new portfolio companies and two existing portfolio companies. These investments totaled $9.9 million, at cost. The weighted average yield (at origination) of debt investments made in the quarter was 11.81%. ICMB fully realized its investments in two portfolio companies during the quarter, totaling $7.6 million in proceeds. The internal rate of return on these investments was 17.20%. During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies. The weighted average yield on debt investments, at fair value, for the quarter ended December 31, 2024, was 10.36%, compared to 10.51% for the quarter ended September 30, 2024. Net asset value decreased $0.16 per share to $5.39, compared to $5.55 as of September 30, 2024. Net assets decreased by $2.3 million, or 2.86%, during the quarter ended December 31, 2024 compared to September 30, 2024. Portfolio results, as of and for the three months ended December 31, 2024:   Total assets $206.9mm Investment portfolio, at fair value $191.6mm Net assets $77.6mm Weighted average yield on debt investments, at cost (1) 10.36% Net asset value per share $5.39 Portfolio activity in the current quarter:   Number of investments in new portfolio companies during the period 2 Number of portfolio companies invested in, end of period 43 Total capital invested in existing portfolio companies (2) $4.2mm Total proceeds from repayments, sales, and amortization (3) $8.7mm Net investment income (NII) $0.8mm Net investment income per share $0.06 Net decrease in net assets from operations $(0.6)mm Net decrease in net assets from operations per share $(0.04) Distributions paid per common share $0.12 (1) Represents weighted average yield on total debt investments held as of December 31, 2024. The weighted average yield on total debt investments reflected above does not represent actual investment returns to the Company’s stockholders. (2) Includes gross advances to existing delayed draw and revolving credit commitments to portfolio companies and PIK interest. (3) Includes gross repayments on existing delayed draw and revolving credit commitments to portfolio companies. Mr. Suhail A. Shaikh said, “Amid heightened market volatility, we remain focused on navigating the evolving landscape. Despite these headwinds, we have maintained a rigorous investment approach, prioritizing opportunities that align with our underwriting standards. While refinancing activity has provided some avenues for capital deployment, we continue to take a highly selective stance on new deals. Our priority remains preserving portfolio stability and positioning the company for long-term growth as market conditions evolve. “I am also pleased to announce that Andrew Muns has been appointed as the Chief Operating Officer of ICMB. Andrew brings a wealth of experience and is a senior member of the Company’s Investment Adviser. I look forward to working closely with Andrew to continue to deliver shareholder value.” The Company’s dividend framework provides a quarterly base dividend and may be supplemented, at the discretion of the Board, by additional dividends as determined to be available by the Company’s net investment income and performance during the quarter. On March 20, 2025, the Board declared a distribution for the quarter ended March 31, 2025 of $0.12 per share payable on May 16, 2025 to stockholders of record as of April 25, 2025. This distribution represents a 15.84% yield on the Company’s $3.03 share price as of market close on December 31, 2024. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the dividend for the quarter ending December 31, 2024, to be comprised of a return of capital. The Company’s investment adviser monitors available taxable earnings, including net investment income and realized capital gains, to determine if a return of capital may occur for the year. The Company estimates the source of its distributions as required by Section 19(a) of the Investment Company Act of 1940 to determine whether payment of dividends are expected to be paid from any other source other than net investment income accrued for the current period or certain cumulative periods, but the Company will not be able to determine whether any specific distribution will be treated as taxable earnings or as a return of capital until after at the end of the taxable year. Portfolio and Investment Activities During the quarter, the Company made investments in two new portfolio companies and two existing portfolio companies. The aggregate capital invested during the quarter totaled $9.9 million, at cost, and the debt investments were made at a weighted average yield of 11.81%. The Company received proceeds of $7.6 million from repayments, sales and amortization during the quarter, primarily related to the realization of Amerit Fleet Holdings, LLC. During the quarter, the Company had net repayments of $80,000 on its existing delayed draw and revolving credit commitments to portfolio companies. The Company’s net realized, and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $(1.4) million, or $(0.10) per share. The total net decrease in net assets resulting from operations for the quarter was $(0.6) million, or $(0.04) per share. As of December 31, 2024, the Company’s investment portfolio consisted of investments in 43 portfolio companies, of which 81.17% were first lien investments and 18.83% were equity, warrants, and other investments. The Company’s debt portfolio consisted of 96.4% floating rate investments and 3.6% fixed rate investments. Capital Resources As of December 31, 2024, the Company had $12.1 million in cash, of which $11.3 million was restricted cash, and $41.5 million of unused and available capacity under its revolving credit facility with Capital One, N.A. Subsequent Events Subsequent to December 31, 2024 and through March 25, 2025, the Company invested a total of $3.9 million, which included investments in one new portfolio company and two existing portfolio companies, and received approximately $3.5 million from the repayment of two positions. As of March 25, 2025, the Company had investments in 42 portfolio companies. Other Updates The Company is pleased to announce that Andrew Muns has been appointed by the Company’s Board as the new Chief Operating Officer of the Company, effective March 24, 2025. Mr. Muns currently serves on CM Investment Partners LLC's investment committee. Mr. Muns joined Investcorp in 2019 as part of the acquisition of CM Investment Partners LLC. Previously, he served as a Managing Director at CM Investment Partners LLC and was a joint employee of both CM Investment Partners LLC and Stifel. Mr. Muns co-founded the Credit Investments Group and served as its Head of Credit. He joined Stifel in 2012 from Cantor Fitzgerald, where he was a Managing Director on the Special Situations and Leveraged Loans Desk. Mr. Muns holds an M.B.A. from Columbia Business School and a B.A. in Mathematics from Northwestern University. Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Assets and Liabilities     December 31, 2024   June 30, 2024   June 30, 2023 Assets       Non-controlled, non-affiliated investments, at fair value (amortized cost of $184,154,029, $189,319,802, and $219,319,251, respectively)   $   188,602,029       $   181,948,376       $   210,150,018     Affiliated investments, at fair value (amortized cost of $16,351,878, $15,149,238, and $23,979,565, respectively)       3,014,929           2,621,154           9,961,311     Total investments, at fair value (amortized cost of $200,505,907, $204,469,040, and $243,298,816, respectively)       191,616,958           184,569,530           220,111,329     Cash   771,483     158,768     1,093,758   Cash, restricted   11,333,064     4,950,036     8,057,458   Principal receivable   720,855     50,609     93,581   Interest receivable   1,576,381     1,301,516     2,041,877   Payment-in-kind interest receivable   85,399     66,625     46,088   Long-term receivable   489,365     631,667     —   Escrow receivable   —     97,173     —   Short-term receivable   160,901     —     —   Other receivables   —     —     1,050   Prepaid expenses and other assets   97,324     411,821     361,719   Total Assets $ 206,851,730   $ 192,237,745   $ 231,806,860   Liabilities       Debt:       Revolving credit facility $ 58,500,000   $ 43,000,000   $ 71,900,000   2026 Notes payable   65,000,000     65,000,000     65,000,000   Deferred debt issuance costs   (1,369,415 )   (1,654,870 )   (1,220,556 ) Unamortized discount   (88,888 )   (124,443 )   (195,553 ) Debt, net   122,041,697     106,220,687     135,483,891   Payable for investments purchased   1,474,677     7,425,000     1,795,297   Dividend payable   1,728,749     —     2,590,520   Income-based incentive fees payable   501,955     128,876     576,023   Base management fees payable   769,176     816,777     906,218   Interest payable   1,894,921     1,950,925     2,293,766   Directors' fees payable   81,323     —     15,755   Accrued expenses and other liabilities   757,102     685,271     445,082   Total Liabilities   129,249,600     117,227,536     144,106,552   Commitments and Contingencies (see Note 6)       Net Assets       Common stock, par value $0.001 per share (100,000,000 shares authorized and 14,406,244, 14,403,752, and 14,391,775 shares issued and outstanding, respectively)       14,406           14,404           14,392     Additional paid-in capital   203,505,480     203,103,263     203,327,714   Distributable earnings (loss)   (125,917,756 )   (128,107,458 )   (115,641,798 ) Total Net Assets   77,602,130     75,010,209     87,700,308   Total Liabilities and Net Assets $ 206,851,730   $ 192,237,745   $ 231,806,860   Net Asset Value Per Share $ 5.39   $ 5.21   $ 6.09   Investcorp Credit Management BDC, Inc. and Subsidiaries Consolidated Statements of Operations                           Six Months Ended December 31,   Twelve Months Ended June 30,     2024       2024       2023       2022   Investment Income:                           Interest income                           Non-controlled, non-affiliated investments $ 8,680,899     $ 20,271,776   $ 23,822,181   $ 22,641,798   Non-controlled, affiliated investments   3,660       12,451     (20,611 )   29,813   Total interest income   8,684,559       20,284,227     23,801,570     22,671,611   Payment in-kind interest income                           Non-controlled, non-affiliated investments   2,329,399       2,028,744     1,250,169     102,720   Non-controlled, affiliated investments   42,079       77,680     70,070     208,470   Total payment-in-kind interest income   2,371,478       2,106,424     1,320,239     311,190   Dividend income                           Non-controlled, non-affiliated investments   —       54,138     101,755     —   Non-controlled, affiliated investments   —       —     —     296,126   Total dividend income   —       54,138     101,755     296,126   Payment in-kind dividend income                           Non-controlled, non-affiliated investments   432,669       784,854     691,972     282,952   Non-controlled, affiliated investments   —       —     —     —   Total payment-in-kind dividend income   432,669       784,854     691,972     282,952   Other fee income                           Non-controlled, non-affiliated investments   134,051       648,659     768,617     868,727   Non-controlled, affiliated investments   —       —     —     759   Total other fee income   134,051       648,659     768,617     869,486   Total investment income   11,622,757       23,878,302     26,684,153     24,431,365   Expenses:                           Interest expense   3,752,412       8,606,309     8,413,409     6,633,587   Base management fees   1,671,831       3,800,693     4,201,394     4,594,588   Income-based incentive fees   501,540       (72,942 )   401,597     (348,670 ) Professional fees   718,289       1,239,122     984,290     1,302,513   Allocation of administrative costs from Adviser   382,064       1,360,194     966,045     1,247,205   Amortization of deferred debt issuance costs   306,004       576,475     693,333     621,111   Amortization of original issue discount - 2026 Notes   35,555       71,110     71,110     71,110   Insurance expense   255,536       479,502     506,963     512,347   Directors' fees   175,852       294,907     302,500     302,500   Custodian and administrator fees   147,986       316,128     292,267     334,214   Other expenses   346,109       713,789     516,160     446,330   Total expenses   8,293,178       17,385,287     17,349,068     15,716,835   Waiver of base management fees   (131,735 )     (365,225 )   (387,311 )   (480,032 ) Waiver of income-based incentive fees   —       —     —     —   Net expenses   8,161,443       17,020,062     16,961,757     15,236,803   Net investment income before taxes   3,461,314       6,858,240     9,722,396     9,194,562   Income tax expense, including excise tax expense   315,075       267,150     294,330     270,618   Net investment income after taxes $ 3,146,239     $ 6,591,090   $ 9,428,066   $ 8,923,944   Net realized and unrealized gain/(loss) on investments:                           Net realized gain (loss) from investments                           Non-controlled, non-affiliated investments $ (8,114,711 ) $ (7,731,553 ) $ (26,890,095 ) $ (6,198,762 ) Non-controlled, affiliated investments   —       (6,239,984 )   —     (8,196,669 ) Net realized gain (loss) from investments   (8,114,711 )   (13,971,537 )   (26,890,095 )   (14,395,431 ) Net change in unrealized appreciation (depreciation) in value of investments                           Non-controlled, non-affiliated investments   11,819,426       1,797,807     21,966,347     2,898,538   Non-controlled, affiliated investments   (808,865 )   1,490,170     (1,269,815 )   5,159,579   Net change in unrealized appreciation (depreciation) on investments   11,010,561       3,287,977     20,696,532     8,058,117   Total realized gain (loss) and change in unrealized appreciation (depreciation) on investments   2,895,850               (10,683,560   )       (6,193,563   )       (6,337,314   ) Net increase (decrease) in net assets resulting from operations $ 6,042,089     $ (4,092,470 ) $ 3,234,503   $ 2,586,630   Basic and diluted:                           Earnings per share $ 0.42     $ (0.28 ) $ 0.22   $ 0.18   Weighted average shares of common stock outstanding   14,404,510       14,396,201     14,389,163     14,304,641   Distributions paid per common share $ 0.24     $ 0.60   $ 0.63   $ 0.60   About Investcorp Credit Management BDC, Inc. The Company is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company under the Investment Company Act of 1940. The Company’s investment objective is to maximize the total return to its stockholders in the form of current income and capital appreciation through debt and related equity investments by targeting investment opportunities with favorable risk-adjusted returns. The Company seeks to invest primarily in middle-market companies that have annual revenues of at least $50 million and earnings before interest, taxes, depreciation, and amortization of at least $15 million. The Company’s investment activities are managed by its investment adviser, CM Investment Partners LLC. To learn more about Investcorp Credit Management BDC, Inc., please visit www.icmbdc.com . Forward-Looking Statements Statements included in this press release and made on the earnings call for the fiscal period and quarter ended December 31, 2024, may contain “forward-looking statements,” which relate to future performance, operating results, events and/or financial condition. Words such as “anticipates,” “expects,” “intends,” “plans,” “will,” “may,” “continue,” “believes,” “seeks,” “estimates,” “would,” “could,” “should,” “targets,” “projects,” and variations of these words and similar expressions are intended to identify forward-looking statements. Any forward-looking statements, including statements other than statements of historical facts, included in this press release or made on the earnings call are based upon current expectations, are inherently uncertain, and involve a number of assumptions and substantial risks and uncertainties, many of which are difficult to predict and are generally beyond the Company’s control. Investors are cautioned not to place undue reliance on these forward-looking statements. Any such statements are likely to be affected by other unknowable future events and conditions, which the Company may or may not have considered, including, without limitation, changes in base interest rates and the effects of significant market volatility on our business, our portfolio companies, our industry and the global economy. Accordingly, such statements cannot be guarantees or assurances of any aspect of future performance or events. Actual results may differ materially from those anticipated in any forward-looking statements as a result of a number of factors and risks. More information on these risks and other potential factors that could affect actual events and the Company’s performance and financial results, including important factors that could cause actual results to differ materially from plans, estimates or expectations included herein or discussed on the earnings call, is or will be included in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of the Company’s Transition Report on Form 10-KT and Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date they are made. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by law. View source version on businesswire.com: https://www.businesswire.com/news/home/20250325624176/en/

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