NEW YORK,– Investcorp Credit Management BDC, Inc. (NASDAQ: ICMB) (“ICMB” or the “Company”) announced its financial results today for its fiscal second quarter ended December 31, 2019.
HIGHLIGHTS
Portfolio results, as of December 31, 2019: |
|
Total assets |
$339.3mm |
Investment portfolio, at fair value |
$305.0mm |
Net assets |
$139.6mm |
Weighted average yield on debt investments, at cost |
10.41% |
Net asset value per share |
$10.15 |
Portfolio activity in the current quarter: |
|
Number of new investments |
7 |
Total capital invested |
$39.7mm |
Proceeds from repayments, sales, and amortization |
$37.9mm |
Number of portfolio companies, end of period |
35 |
Net investment income (NII) |
$3.8mm |
Net investment income per share |
$0.27 |
Net increase in net assets from operations |
$3.0mm |
Net increase in net assets from operations per share |
$0.22 |
Quarterly per share distribution paid on January 2, 2020 |
$0.25 |
Mr. Michael C. Mauer, the Company’s Chief Executive Officer, said “Our efforts to diversify the portfolio continued to bear fruit this quarter, as we are now invested in 35 portfolio companies across 22 industries. We continue to believe that 1st lien loans offer the best risk-adjusted returns in the current environment, and our portfolio composition increasingly reflects this belief. The deal flow we are seeing as part of Investcorp continues to generate positive momentum in origination, and our goal is to grow the portfolio to 40 or more borrowers over the coming quarters.”
On February 4, 2020, the Company’s Board of Directors (the “Board”) declared a distribution for the quarter ending March 31, 2020 of $0.25 per share, payable on April 2, 2020, to stockholders of record as of March 13, 2020. This represents a 14.93% yield on the Company’s $7.18 share price as of market close on February 7, 2020. Distributions may include net investment income, capital gains and/or return of capital, however, the Company does not expect the distribution to be comprised of a return of capital. The tax status of distributions will be determined at the end of the taxable year.
Portfolio and Investment Activities
During the quarter, the Company made investments in six portfolio companies, of which four were new portfolio companies, and two were existing portfolio companies. The aggregate capital invested during the quarter totaled $39.7mm at cost, and investments were made at a weighted average yield of 10.33%.
The Company realized $37.9mm of repayments, sales, and amortization, including the repayments of first and second lien loans by Carlton Group, and a second lien loan by Lionbridge Technologies, Inc., as well as the sale of a portion of the Company’s position in Hyperion Materials & Technologies, Inc. The Company’s realized and unrealized gains and losses accounted for a decrease in the Company’s net investments of approximately $0.8mm, or $0.06 per share. The total net increase in net assets resulting from operations for the quarter was $3.0mm, or $0.22 per share.
As of December 31, 2019, the Company’s investment portfolio consisted of investments in 35 portfolio companies, of which 82.6% were first lien investments, 13.8% were second lien investments, and 3.6% were unitranche loans. The Company’s debt portfolio consisted of 96.9% floating rate investments and 3.1% fixed rate investments.
As of December 31, 2019, the Company had one investment on non-accrual status, the Term Loan B of Fusion Connect Inc.
Capital Resources
As of December 31, 2019, the Company had $17.2mm in cash, $8.3mm in restricted cash and $30.0mm of capacity under its revolving credit facility with UBS AG, London Branch.
Subsequent Events
Subsequent to December 31, 2019 and through February 7, 2020, the Company invested $16.2mm in new and existing portfolio companies and received no repayments. As of February 10, 2020, the Company had 37 portfolio companies.