Crescent Capital BDC, Inc. Q1 FY2025 earnings call

• Jason Breaux summarized Q1 results, discussed market impact from tariffs, and portfolio characteristics like diversification and first lien focus.
• Henry Chung mentioned gross deployment of $105 million in Q1, 98% in first lien investments, closed 10 new platform investments, and reviewed tariff impact on portfolio companies with modest direct material exposure (4%).
• Gerhard Lombard discussed drivers of NII decline (lower base rates, runoff of one-time income, Logan JV dividend drop, non-accrual loans), capitalization including new notes and SPV facility rightsizing, and liquidity.

In the first quarter, net investment income was $16.6 million or $0.45 per share, down from $20.5 million or $0.55 per share in the fourth quarter. The decline was due to lower base rates, runoff of one-time items, reduction in Logan JV dividend, and increase in non-accrual loans (3.5% of debt investments at cost). The portfolio had over $1.6 billion at fair value, diversified across 191 companies, with first lien loans making up 91% at fair value.

Near term outlook reflects SPV asset based facility repricing and portfolio at target leverage. Declared a regular dividend of $0.42 per share for Q2 2025 and a special dividend. Expect potential near term tailwinds but baseline doesn't reflect further non-accruals or base rate changes.

• Tariff announcements impacting deal activity and portfolio companies.
• Increase in non-accrual loans with four new names added, though they represent less than 1.2% of the portfolio.
• Volatility in the market requiring continued selectivity in underwriting.

Q: On one of the new accruals this quarter, New Era Technology, and if it's a non-traditional deal.

A: Jason and Henry discussed it being in line with restructuring expectations and that most new non-accruals were prior watch list names.

Q: On Logan JV dividend drop, driver of big sequential decline.

A: Henry explained it's due to timing mismatch in payment determination dates and lumpiness in equity tranche distributions during deleveraging.

Q: On market inflows and buybacks.

A: Jason discussed impact of private BDC inflows on spreads and that the board continues to evaluate buybacks considering various considerations