Crescent Capital BDC Reports $197.4M Investment Income and $15.9M Net Loss for 2024

Crescent Capital BDC, Inc. (CCAP) reported total investment income of $197.4 million for the year ended December 31, 2024, compared to $184.1 million in the prior year. Net investment income increased to $89.0 million ($2.40 per share) from $82.5 million ($2.30 per share) in 2023. This increase was primarily driven by higher interest income from a growing portfolio and increased one-time, non-recurring income. However, net realized and unrealized gains (losses) resulted in a net loss of $15.9 million for 2024, compared to a gain of $0.3 million in 2023.

The company's expenses increased to $108.4 million in 2024 from $101.6 million in 2023. This increase reflects higher interest and other debt financing costs due to a higher weighted average debt outstanding, as well as increased professional fees due to additional regulatory compliance costs. Management fees increased slightly, while net income-based incentive fees also rose, partially offset by waivers. The company's portfolio, valued at $1,598.9 million at fair value as of December 31, 2024, consisted of 185 portfolio companies. The weighted average yield on income-producing securities (at cost) was 8.6% as of December 31, 2024, compared to 8.8% as of December 31, 2023.

Significant developments during the year included the March 9, 2023, acquisition of First Eagle Alternative Capital BDC, Inc. (FCRD). This transaction involved approximately $8.6 million in cash payable by CCAP, 6,174,187 shares of CCAP common stock, and $35.0 million in cash payable by the Adviser. The company also completed a private offering of senior unsecured notes totaling $115 million during the year. As of December 31, 2024, CCAP had $39.4 million in cash and cash equivalents and $337.5 million of undrawn capacity on its credit facilities.

The company's investment portfolio experienced a net increase of $23.9 million during 2024. New investments at cost totaled $395.0 million, while proceeds from investments sold or repaid amounted to $371.1 million. As of December 31, 2024, 18 investments across seven portfolio companies were on non-accrual status, representing 2.2% and 0.9% of total debt investments at cost and fair value, respectively. The company's investment strategy focuses on middle-market companies, primarily in secured and unsecured debt, as well as related equity securities.

CCAP's outlook is subject to various risks, including those related to macroeconomic conditions, interest rate fluctuations, credit market volatility, and the liquidity of its investments. The company's ability to maintain its status as a BDC and RIC, as well as its ability to make distributions to shareholders, is dependent on several factors, including its investment performance and compliance with regulatory requirements. The company's financial statements include forward-looking statements, and actual results may differ materially from those presented.