GlobeNewswire Inc | May 12, 2021 04:15PM EDT

May 12, 2021

LOS ANGELES, May 12, 2021 (GLOBE NEWSWIRE) -- Crescent Capital BDC, Inc. (Crescent BDC or Company) (NASDAQ: CCAP) today reported net investment income of $11.4 million, or $0.41 per share, and adjusted net investment income of $13.0 million, or $0.46 per share,1 for the quarter ended March 31, 2021. Reported net asset value per share was $20.24 at March 31, 2021 as compared to $19.88 at December 31, 2020.

The Company announced that its Board of Directors declared a regular cash dividend for the second quarter 2021 of $0.41 per share, which will be paid on July 15, 2021 to stockholders of record as of the close of business on June 30, 2021.

On January 5, 2021, Sun Life Financial Inc. (together with its subsidiaries and joint ventures, Sun Life) acquired a majority interest in Crescent Capital Group LP (Crescent), parent of the Company's investment adviser (the Sun Life Transaction). There are no changes to the Companys investment objective, strategies and processes or to the Crescent team responsible for the investment operations of the Company as a result of the Sun Life Transaction.

On February 17, 2021, the Company completed a private offering of $135.0 million in aggregate principal amount of 4.00% senior unsecured notes due February 17, 2026 (the Notes). The initial issuance of $50.0 million of Notes closed on February 17, 2021, and the issuance of the remaining $85.0 million of Notes closed on May 5, 2021. Additionally, the Company redeemed or paid down its remaining $16.4 million of InterNotes during the first quarter, which bore interest at fixed annual rates ranging between 6.25% and 6.75%.

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

As of and for the Three Months Ended March 31, December March 31, 2021 31, 2020 2020Investments, at fair value $ 1,057.6 $ 1,034.0 $ 883.2 Total assets $ 1,076.8 $ 1,054.2 $ 909.9 Total net assets $ 570.0 $ 560.0 $ 465.8 Net asset value per share $ 20.24 $ 19.88 $ 16.52 Investment income $ 20.6 $ 20.3 $ 18.8 Net investment income $ 11.4 $ 13.2 $ 11.6 Net realized gains (losses) $ 1.8 $ (13.5 ) $ (0.1 )Realized loss on asset acquisition ? ? $ (3.8 )Net change in unrealized gains (losses), $ 8.3 $ 34.8 $ (82.2 )net of taxesNet increase (decrease) in net assets $ 21.5 $ 34.5 $ (74.5 )resulting from operations Net investment income per share $ 0.41 $ 0.47 $ 0.44 Net realized gains (losses) per share $ 0.06 $ (0.49 ) $ (0.00 )Net change in unrealized gains (losses) $ 0.30 $ 1.24 $ (3.14 )per shareRealized loss on asset acquisition per ? ? $ (0.14 )shareNet increase (decrease) in net assets $ 0.76 $ 1.22 $ (2.84 )resulting from operations per shareDistributions paid per share $ 0.41 $ 0.41 $ 0.41 Non-GAAP Financial Measures^1: Adjusted net investment income $ 13.0 $ 13.2 $ 11.6 Adjusted net investment income per share $ 0.46 $ 0.47 $ 0.44 Weighted average yield on income 7.9 % 8.0 % 7.9 %producing securities (at cost)^2Percentage of debt investments at 98.4 % 98.4 % 96.0 %floating rates

Portfolio & Investment Activity

As of March 31, 2021 and December 31, 2020, the Company had investments in 131 and 132 portfolio companies with an aggregate fair value of $1,057.6 million and $1,034.0 million, respectively. The portfolio at fair value was comprised of the following asset types:

Portfolio Asset Types: As of$ in millions March 31, 2021 December 31, 2020Investment Type Fair Value Percentage Fair Value PercentageSenior secured first $ 365.0 34.5 % $ 373.6 36.1 %lienUnitranche first lien 468.1 44.3 413.5 40.0 ^3Unitranche first lien 13.9 1.3 14.9 1.5 - last out^3Senior secured second 81.6 7.7 104.7 10.1 lienUnsecured debt 5.1 0.5 3.0 0.3 Equity & other 70.3 6.6 69.3 6.7 LLC/LP equity 53.6 5.1 54.9 5.3 interestsTotal investments $ 1,057.6 100.0 % $ 1,034.0 100.0 %

For the quarter ended March 31, 2021, the Company invested $88.2 million across 6 new portfolio companies, 11 existing portfolio companies and several follow-on revolver and delayed draw fundings. For this period, the Company had $77.2 million in aggregate exits, sales and repayments.

For the quarter ended December 31, 2020, the Company invested $124.1 million across 9 new portfolio companies, 5 existing portfolio companies and several follow-on revolver and delayed draw fundings. For this period, the Company had $76.7 million in aggregate exits, sales and repayments.

Results of Operations

For the quarter ended March 31, 2021 and December 31, 2020, investment income totaled $20.6 million and $20.3 million, respectively. The increase was primarily driven by an increase in the size of the Companys income-producing portfolio resulting from organic net deployment.

For the quarter ended March 31, 2021 and December 31, 2020, total expenses, including income and excise taxes, totaled $9.1 million and $7.1 million, respectively. The increase was primarily driven by a $1.6 million accrual for capital gains based incentive fees, attributable to appreciation in the fair value of the portfolio.

Liquidity and Capital Resources

As of March 31, 2021, the Company had $12.6 million in cash and cash equivalents and restricted cash and $247.1 million of undrawn capacity on its credit facilities, subject to borrowing base and other limitations. The weighted average interest rate on the Companys debt outstanding as of March 31, 2021 was 3.25%.

The Companys debt to equity ratio was 0.86x as of March 31, 2021.

Non-GAAP Financial Measures

On a supplemental basis, the Company is disclosing adjusted net investment income and adjusted net investment income per share, each of which is a financial measure that is calculated and presented on a basis of methodology other than in accordance with U.S. GAAP (non-GAAP). Adjusted net investment income represents net investment income, excluding capital gainsbased incentive fees. We use this non-GAAP financial measure internally to analyze and evaluate financial results and performance and believe that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends without giving effect to capital gainsbased incentive fees. The Companys investment advisory agreement provides that a capital gains based incentive fee is determined and paid annually with respect to realized capital gains (but not unrealized capital appreciation) to the extent such realized capital gains exceed realized capital losses and unrealized capital depreciation on a cumulative basis. We believe that adjusted net investment income is a useful performance measure because it reflects the net investment income produced on the Companys investments during a period without giving effect to any changes in the value of such investments and any related capital gainsbased incentive fees between periods. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation.

The following table provides a reconciliation of net investment income (the most comparable U.S. GAAP measure) to adjusted net investment income for the periods presented:

For the three months ended March 31, 2021 December 31, March 31, 2020 (unaudited) 2020 (unaudited) (unaudited)$ in millions, except Amount Per Amount Per Amount Per per share data Share Share ShareNet investment income $ 11.4 $ 0.41 $ 13.2 $ 0.47 $ 11.6 $ 0.44 Capital gains based 1.6 0.05 ? ? ? ? incentive feeAdjusted net investment $ 13.0 $ 0.46 $ 13.2 $ 0.47 $ 11.6 $ 0.44 income

Conference Call

The Company will host a webcast/conference call on Thursday, May 13, 2021 at 12:00 p.m. (Eastern Time) to discuss its financial results for the quarter ended March 31, 2021. 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: 1870847

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.

Endnotes See ?Non-GAAP Financial Measures? above for a description of this non-GAAP measure and a reconciliation from net investment income to adjusted net investment income. The Company's management uses this non-GAAP financial measure internally to analyze and evaluate financial results and1) performance and believes that this non-GAAP financial measure is useful to investors as an additional tool to evaluate ongoing results and trends for the Company without giving effect to capital gainsbased incentive fees. The presentation of adjusted net investment income is not intended to be a substitute for financial results prepared in accordance with GAAP and should not be considered in isolation. 2) Yield excludes investments on non-accrual status. Unitranche loans are first lien loans that may extend deeper in a company?s capital structure than traditional first lien debt and may provide for a waterfall of cash flow priority among different lenders in the unitranche loan. In certain instances, the Company may find another3) lender to provide the ?first out? portion of such loan and retain the ?last out? portion of such loan, in which case, the ?first out? portion of the loan would generally receive priority with respect to payment of principal, interest and any other amounts due thereunder over the ?last out? portion that the Company would continue to hold. In exchange for the greater risk of loss, the ?last out? portion earns a higher interest rate.



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

As of March 31, As of 2021 (Unaudited) December 31, 2020Assets Investments, at fair value Non-controlled non-affiliated (cost of $952,256 $ 962,915 $ 940,066 and $936,921, respectively)Non-controlled affiliated (cost of $34,692 and 55,368 55,200 $34,203, respectively)Controlled (cost of $40,000 and $40,000, 39,344 38,735 respectively)Cash and cash equivalents 2,262 1,896 Restricted cash and cash equivalents 10,292 12,953 Interest receivable 4,526 3,859 Unrealized appreciation on foreign currency 996 264 forward contractsDeferred tax assets 611 630 Other assets 438 543 Receivable for investments sold 63 6 Total assets $ 1,076,815 $ 1,054,152

LiabilitiesDebt (net of deferred financing costs of $4,964 $ 482,950 $ 471,932 and $4,600, respectively)Distributions payable 11,549 11,549 Interest and other debt financing costs payable 3,382 3,923 Accrued expenses and other liabilities 2,940 2,563 Management fees payable 1,924 1,867 Incentive fees payable 1,577 ? Deferred tax liabilities 1,454 1,324 Unrealized depreciation on foreign currency 933 896 forward contractsDirectors' fees payable 119 98 Total liabilities $ 506,828 $ 494,152

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 28 28 shares issued and outstanding, respectively)Paid-in capital in excess of par value 594,658 594,658 Accumulated loss (24,699 ) (34,686 )Total Net Assets $ 569,987 $ 560,000 Total Liabilities and Net Assets $ 1,076,815 $ 1,054,152 Net asset value per share $ 20.24 $ 19.88

Crescent Capital BDC, Inc.Consolidated Statements of Operations(in thousands except share and per share data)(Unaudited) For the three For the three months months ended March ended March 31, 2021 31, 2020 Investment Income: From non-controlled non-affiliated investments: Interest income $ 18,087 $ 16,603 Paid-in-kind interest 368 549 Dividend income 516 892 Other income 92 440 From non-controlled affiliated investments: Interest income 308 343 Paid-in-kind interest 500 4 From controlled investments: Dividend income 700 ? Total investment income 20,571 18,831 Expenses: Interest and other debt financing costs 4,194 4,349 Management fees 3,207 2,651 Income based incentive fees 2,277 1,932 Capital gains based incentive fees 1,577 ? Professional fees 497 342 Directors' fees 119 129 Other general and administrative expenses 692 726 Total expenses 12,563 10,129 Management fee waiver (1,283 ) (1,157 )Income based incentive fees waiver (2,277 ) (1,932 )Net expenses 9,003 7,040 Net investment income before taxes 11,568 11,791 Income and excise taxes 130 238 Net investment income 11,438 11,553 Net realized and unrealized gains (losses) on investments: Net realized gain/(loss) on: Non-controlled non-affiliated investments 1,746 113 Foreign currency transactions 9 (237 )Net change in unrealized appreciation (depreciation) on: Non-controlled non-affiliated investments and 7,509 (64,440 )foreign currency translationNon-controlled affiliated investments (321 ) (3,511 )Controlled investments 609 (16,843 )Foreign currency forward contracts 695 2,190 Net realized and unrealized gains (losses) on 10,247 (82,728 )investmentsRealized loss on asset acquisition ? (3,825 )Net realized and unrealized gains (losses) on 10,247 (86,553 )investments and asset acquisitionBenefit (provision) for taxes on unrealized (149 ) 455 appreciation (depreciation) on investmentsNet increase (decrease) in net assets $ 21,536 $ (74,545 )resulting from operations Per Common Share Data: Net increase (decrease) in net assetsresulting from operations per share (basic $ 0.76 $ (2.84 )and diluted):Net investment income per share (basic and $ 0.41 $ 0.44 diluted):Weighted average shares outstanding (basic 28,167,360 26,212,991 and diluted):

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).Crescent BDC is externally managed by Crescent Cap Advisors, LLC, a subsidiary of Crescent. 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 is a global credit investment manager with approximately $32 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 is headquartered in Los Angeles with offices in New York, Boston, and London and more than 180 employees globally. For more information about Crescent, 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.com212-364-0149

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 adviser 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 adviser or its affiliates; (13) the ability of our investment adviser 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, 2020 and quarterly report on Form 10-Q for the quarter ended March 31, 2021, 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, 2020, which Crescent BDC filed with the U.S. Securities and Exchange Commission (the SEC) on February 24, 2021, Crescent BDCs quarterly report on Form 10-Q for the quarter ended March 31, 2021, which Crescent BDC filed with the SEC on May 12, 2021, 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, 2020, Crescent BDCs quarterly reports on Form 10-Q and Crescent BDCs other reports filed with the SEC can be found on Crescent BDCs website at www.crescentbdc.com and the SECs website at www.sec.gov.