GlobeNewswire Inc | Aug 10, 2020 04:10PM EDT

August 10, 2020

LOS ANGELES, Aug. 10, 2020 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (Crescent BDC or Company) (NASDAQ: CCAP) today reported net investment income of $13.0 million, or $0.46 per share, and a net increase in net assets resulting from operations of $56.4 million, or $2.00 per share, for the second quarter ended June 30, 2020. Reported net asset value per share was $18.12 at June 30, 2020 as compared to $16.52 at March 31, 2020.

The increase in net asset value for the second quarter was primarily driven by unrealized gains from the impact of credit spreads tightening relative to the end of the first quarter.

Declaration of Regular Dividend for Third Quarter 2020

The Company announced that its Board of Directors has declared a third quarter 2020 dividend of $0.41 per share, which will be paid on or around October 15, 2020 to stockholders of record as of the close of business on September 30, 2020.

Selected Financial Highlights($ in millions, except per share amounts. Unaudited.)

As of June 30, March 31, June 30, 2020 2020 2019Investments, at fair value $ 895.2 $ 883.2 $ 624.9 Total assets $ 926.3 $ 909.9 $ 637.2 Total net assets $ 510.3 $ 465.8 $ 320.8 Net asset value per share $ 18.12 $ 16.52 $ 19.75 Weighted average yield on income 7.9 % 7.9 % 8.4 %producing securities (at cost)^1Percentage of debt investments at 96.9 % 96.0 % 96.1 %floating rates (1) Yield excludes investments on non-accrual status.

Three Months Ended June 30, 2020 March 31, 2020 Total Per Share Total Per Share Amount AmountTotal investment $ 19.3 $ 0.69 $ 18.8 $ 0.72 incomeNet investment income $ 13.0 $ 0.46 $ 11.6 $ 0.44 Net realized gains $ (1.1 ) $ (0.04 ) $ (0.1 ) $ (0.00 )(losses)Net unrealized gains(losses), net of $ 44.5 $ 1.59 $ (82.2 ) $ (3.14 )taxesRealized loss on n/a n/a $ (3.8 ) $ (0.14 )asset acquisitionNet increase(decrease) in net $ 56.4 $ 2.00 $ (74.5 ) $ (2.84 )assets resulting fromoperationsDividenddistributions per $ 0.41 $ 0.41 share

Portfolio & Investing Activity

As of June 30, 2020 and March 31, 2020, the Company had investments in 124 and 127 portfolio companies with an aggregate fair value of $895.2 million and $883.2 million, respectively. The portfolio at fair value was comprised of the following asset types:

As of$ in millions June 30, 2020 March 31, 2020Investment Type Fair Percentage Fair Percentage Value ValueSenior secured first lien $ 361.7 40.4 % $ 387.2 43.8 %Unitranche first lien 307.2 34.3 % 294.2 33.3 %Unitranche first lien - 14.4 1.6 % 14.6 1.6 %last outSenior secured second lien 106.7 11.9 % 102.9 11.7 %Unsecured debt 8.7 1.0 % 8.6 1.0 %Equity & other 45.0 5.0 % 31.8 3.6 %LLC/LP equity interests 51.5 5.8 % 43.9 5.0 %Total investments $ 895.2 100.0 % $ 883.2 100.0 %

For the three months ended June 30, 2020, the Company invested $26.4 million into one new portfolio company, one refinancing and several follow-on revolver and delayed draw fundings. For this period, the Company had $60.4 million in aggregate exits, sales and repayments.

For the three months ended March 31, 2020, excluding assets acquired in the Alcentra Capital Corp. ("Alcentra") acquisition, the Company invested $117.4 million across seven new portfolio companies and three existing portfolio companies. For this period, the Company had $73.8 million in aggregate exits, sales and repayments.

Results of Operations for the Three Months Ended June 30, 2020

Investment income increased to $19.3 million for the three months ended June 30, 2020 from $18.8 million for the three months ended March 31, 2020. The increase was due in part to three months of investment income from Alcentra portfolio investments that the Company acquired on January 31, 2020.

Total net expenses, including income and excise taxes, decreased to $6.4 million for the three months ended June 30, 2020 from $7.3 million for the three months ended March 31, 2020. The decrease was primarily due to lower interest and other debt financing costs as the weighted average interest rate on the Companys weighted average outstanding debt decreased from 4.0% for the three months ended March 31, 2020 to 3.0% for the three months ended June 30, 2020.

Liquidity and Capital Resources

As of June 30, 2020, the Company had $11.6 million in cash and cash equivalents and restricted cash and $166.1 million of undrawn capacity on its revolving credit facilities, subject to borrowing base and other limitations. The weighted average interest rate on the Companys debt outstanding was 2.7% as of June 30, 2020.

The Companys debt to equity ratio was 0.78x as of June 30, 2020.

On July 30, 2020, the Company announced that it agreed to issue $50 million aggregate principal amount of 5.95% senior unsecured notes due July 30, 2023. Pro forma for this transaction, the Company had over $200 million of available liquidity as of June 30, 2020.

Conference Call

The Company will host a webcast/conference call on Tuesday, August 11, 2020 at 12:00 p.m. (Eastern Time) to discuss its quarter ended June 30, 2020 financial results. Please visit Crescent BDCs webcast link located on the Events & Presentations page of the Investor Relations section of Crescent BDCs website for a slide presentation that complements the earnings conference call.

All interested parties are invited to participate via telephone or the live webcast, which will be hosted on a webcast link located on the Events & Presentations page of the Investor Resources section of Crescent BDCs website at www.crescentbdc.com. Please visit the website to test your connection before the webcast. Participants are also invited to access the conference call by dialing one of the following numbers:

Domestic: (855) 982-6679International: (614) 999-9468Conference ID: 8443979

All callers will need to enter the Conference ID followed by the # sign and reference "Crescent BDC" once connected with the operator. An archived replay will be available via a webcast link located on the Investor Relations section of Crescent BDC's website.

About Crescent BDC

Crescent BDCis a business development company that seeks to maximize the total return of its stockholders in the form of current income and capital appreciation by providing capital solutions to middle market companies with sound business fundamentals and strong growth prospects. Crescent BDC utilizes the extensive experience, origination capabilities and disciplined investment process of Crescent Capital Group LP (Crescent Capital).Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent Capital. Crescent BDC has elected to be regulated as a business development company under the Investment Company Act of 1940. For more information about Crescent BDC, visitwww.crescentbdc.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

About Crescent Capital Group

Crescent Capital is a global credit investment manager with approximately $28 billion of assets under management. For over 25 years, the firm has focused on below investment grade credit through strategies that invest in marketable and privately-originated debt securities including senior bank loans, high yield bonds, as well as private senior, unitranche, and junior debt securities. Crescent Capital is headquartered in Los Angeles with offices in New York, Boston, and London and more than 180 employees globally. For more information about Crescent Capital, visit www.crescentcap.com. However, the contents of such website are not and should not be deemed to be incorporated by reference herein.

Contact:

Daniel McMahondaniel.mcmahon@crescentcap.com 212-364-0149 Forward-Looking Statements

This press release, and other statements that Crescent BDC may make, may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act, with respect to Crescent BDCs future financial or business performance, strategies or expectations. Forward-looking statements are typically identified by words or phrases such as trend, potential, opportunity, pipeline, believe, comfortable, expect, anticipate, current, intention, estimate, position, assume, outlook, continue, remain, maintain, sustain, seek, achieve, and similar expressions, or future or conditional verbs such as will, would, should, could, may or similar expressions.

Crescent BDC cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which may change over time. Forward-looking statements speak only as of the date they are made, and Crescent BDC assumes no duty to and does not undertake to update forward-looking statements. Actual results could differ materially from those anticipated in forward-looking statements and future results could differ materially from historical performance.

In addition to factors previously disclosed in Crescent BDCs SEC reports and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: (1) our future operating results; (2) our business prospects and the prospects of our portfolio companies; (3) the impact of investments that we expect to make; (4) our contractual arrangements and relationships with third parties; (5) the dependence of our future success on the general economy and its impact on the industries in which we invest; (6) the financial condition of and ability of our current and prospective portfolio companies to achieve their objectives; (7) our expected financings and investments; (8) the adequacy of our cash resources and working capital, including our ability to obtain continued financing on favorable terms; (9) the timing of cash flows, if any, from the operations of our portfolio companies; (10) the impact of increased competition; (11) the ability of our investment advisor to locate suitable investments for us and to monitor and administer our investments; (12) potential conflicts of interest in the allocation of opportunities between us and other investment funds managed by our investment advisor or its affiliates; (13) the ability of our investment advisor to attract and retain highly talented professionals; (14) changes in law and policy accompanying the new administration and uncertainty pending any such changes; (15) increased geopolitical unrest, terrorist attacks or acts of war, which may adversely affect the general economy, domestic and local financial and capital markets, or the specific industries of our portfolio companies; (16) changes and volatility in political, economic or industry conditions, the interest rate environment, foreign exchange rates or financial and capital markets; (17) the unfavorable resolution of legal proceedings; and (18) the impact of changes to tax legislation and, generally, our tax position.

Crescent BDCs Annual Report on Form 10-K for the year ended December 31, 2019 and quarterly report on Form 10-Q for the quarter ended June 30, 2020, each filed with the SEC, identify additional factors that can affect forward-looking statements.

Other Information

The information in this press release is summary information only and should be read in conjunction with Crescent BDCs annual report on Form 10-K for the year ended December 31, 2019, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on March 4, 2020, Crescent BDCs quarterly report on Form 10-Q for the quarter ended June 30, 2020, which Crescent BDC filed with the SEC on August 11, 2020, as well as Crescent BDCs other reports filed with the SEC. A copy of Crescent BDCs annual report on Form 10-K for the year ended December 31, 2019, Crescent BDCs quarterly report on Form 10-Q for the quarter ended June 30, 2020 and Crescent BDCs other reports filed with the SEC can be found on Crescent BDCs website at www.crescentbdc.comand the SECs website at www.sec.gov.

Crescent Capital BDC, Inc.Consolidated Statements of Assets and Liabilities(in thousands except share and per share data)

As of As of June 30, December 2020 31, (Unaudited) 2019Assets Investments, at fair value Non-controlled non-affiliated (cost of $864,843 and $ 821,831 $ 671,582 $675,329, respectively)Non-controlled affiliated (cost of $33,782 and 42,890 20,507 $19,766, respectively)Controlled (cost of $39,000 and $34,000, 30,513 34,442 respectively)Cash and cash equivalents 3,514 4,576 Restricted cash and cash equivalents 8,043 8,851 Receivable for investments sold 11,393 160 Interest receivable 3,980 2,832 Unrealized appreciation on foreign currency forward 2,672 758 contractsDeferred tax assets 762 421 Other assets 712 3,046 Total assets $ 926,310 $ 747,175

LiabilitiesDebt (net of deferred financing costs of $4,504 and $ 395,829 $ 322,010 $3,431, respectively)Distributions payable 11,548 8,554 Interest and other debt financing costs payable 3,345 3,545 Accrued expenses and other liabilities 2,553 3,788 Management fees payable 1,660 1,343 Deferred tax liabilities 959 879 Directors? fees payable 110 74 Unrealized depreciation on foreign currency forward 8 65 contractsTotal liabilities $ 416,012 $ 340,258

Net Assets Preferred stock, par value $0.001 per share (10,000 $ ? $ ? shares authorized, zero outstanding, respectively)Common stock, par value $0.001 per share(200,000,000 shares authorized, 28,167,360 and 28 21 20,862,314 shares issued and outstanding,respectively)Paid-in capital in excess of par value 558,913 414,293 Accumulated loss (48,643 ) (7,397 )Total Net Assets $ 510,298 $ 406,917 Total Liabilities and Net Assets $ 926,310 $ 747,175 Net asset value per share $ 18.12 $ 19.50

Crescent Capital BDC, Inc.Consolidated Statements of Operations(in thousands except share and per share data)(Unaudited)

For the three months ended For the six months ended June 30, June 30, 2020 2019 2020 2019 Investment Income: From non-controlled non-affiliated investments: Interest $ 15,689 $ 10,523 $ 32,292 $ 20,875 incomePaid-in-kind 697 172 1,246 337 interestDividend 712 508 1,604 931 incomeOther income 620 500 1,060 744 From non-controlled affiliated investments: Interest 328 265 671 537 incomePaid-in-kind 481 ? 485 ? interestFrom controlled investments: Dividend 800 550 800 550 incomeTotalinvestment 19,327 12,518 38,158 23,974 income Expenses: Interest andother debt 3,631 3,173 7,980 5,982 financingcostsManagement 2,767 2,160 5,418 4,050 feesIncentive fees 2,267 1,107 4,199 2,131 Professional 364 192 706 384 feesDirectors' 110 72 239 145 feesOrganization ? 49 ? 91 expensesOther generaland 495 537 1,221 1,058 administrativeexpensesTotal expenses 9,634 7,290 19,763 13,841 Management fee (1,107 ) (1,044 ) (2,264 ) (1,947 )waiverIncentive fee (2,267 ) (1,107 ) (4,199 ) (2,131 )waiverNet expenses 6,260 5,139 13,300 9,763 Net investmentincome before 13,067 7,379 24,858 14,211 taxesIncome and 111 3 349 6 excise taxesNet investment 12,956 7,376 24,509 14,205 income Net realized and unrealized gains (losses) on investments:Net realized gain/(loss) on: Non-controllednon-affiliated (1,136 ) (660 ) (1,023 ) (921 )investmentsForeigncurrency 76 476 (161 ) 489 transactionsNet change in unrealized appreciation (depreciation) on:Non-controllednon-affiliatedinvestments 25,140 1,434 (39,300 ) 3,894 and foreigncurrencytranslationNon-controlledaffiliated 11,878 80 8,367 616 investmentsControlled 7,914 (472 ) (8,929 ) (713 )investmentsForeigncurrency (218 ) 309 1,972 282 forwardcontractsNet realizedand unrealized 43,654 1,167 (39,074 ) 3,647 gains (losses)on investmentsRealized losson asset ? ? (3,825 ) ? acquisitionNet realizedand unrealizedgains (losses) 43,654 1,167 (42,899 ) 3,647 on investmentsand assetacquisitionBenefit(provision)for taxes onunrealized (193 ) (31 ) 262 (480 )appreciation(depreciation)on investmentsNet increase(decrease) innet assets $ 56,417 8,512 $ (18,128 ) 17,372 resulting fromoperations Per Common Share Data: Net increase(decrease) innet assetsresulting from $ 2.00 0.54 $ (0.67 ) 1.15 operations pershare (basicand diluted):Net investmentincome per $ 0.46 0.47 $ 0.90 0.94 share (basicand diluted):Weightedaverage sharesoutstanding 28,168,643 15,703,473 27,190,817 15,087,362 (basic anddiluted):